Economie Europeana

European Economy: present and perspectives, International Conference, 10th edition
ECONOMIE EUROPEANĂ:
PREZENT ŞI PERSPECTIVE.
Conferinţă internaţională
Ediţia a X-a
7-9 octombrie 2010
Editura Universităţii Ştefan cel Mare din Suceava

Economie Europeană: prezent şi perspective, Conferinţă Internaţională, ediţia a X-a
COMITET ŞTIINŢIFIC:
Angela ALBU - Universitatea Ştefan cel Mare, Suceava

Stefano AZZALI - Università degli Studi di Parma, Italia
George P. BABU - University of Southern Mississippi, USA
Heike BÄHRE - Baltic College, University of Applied Sciences, Germania
Christian BAUMGARTEN - Natur Freunde International, Austria
Grigore BELOSTECINIC - ASEM, Chişinău, Republica Moldova
Ionel BOSTAN - Universitatea Ştefan cel Mare, Suceava
Florina BRAN - Academia de Studii Economice, Bucureşti
Petre BREZEANU - Academia de Studii Economice, Bucureşti
Aurel BURCIU - Universitatea Ştefan cel Mare, Suceava
Gheorghe CÂRSTEA - Academia de Studii Economice, Bucureşti
Carmen CHAŞOVSCHI - Universitatea Ştefan cel Mare, Suceava
Ala COTELNIC - ASEM, Chişinău, Republica Moldova
Anca DODESCU - Universitatea din Oradea
Tiberius EPURE - Universitatea Ovidiu, Constanţa
Corneliu GUTU - ASEM, Chişinău, Republica Moldova
Cristian HAPENCIUC - Universitatea Ştefan cel Mare, Suceava
Elena HLACIUC - Universitatea Ştefan cel Mare, Suceava
Elena IFTIME - Universitatea Ştefan cel Mare, Suceava
Ion IGNAT - Universitatea Al. I. Cuza, Iaşi
Liviu ILIEŞ - Universitatea Babeş-Bolyai, Cluj-Napoca
Miika KAJANUS - Savonia University of Applied Sciences, Finlanda
Ioan MACOVEI - Universitatea Al. I. Cuza, Iaşi
Dorel MATEŞ - Universitatea de Vest, Timişoara
Dumitru MATIŞ - Universitatea Babeş Bolyai, Cluj-Napoca
Alunica MORARIU - Universitatea Ştefan cel Mare, Suceava
Maria MUREŞAN - Academia de Studii Economice, Bucureşti
Carmen NĂSTASE - Universitatea Ştefan cel Mare, Suceava
Pavel NĂSTASE - Academia de Studii Economice, Bucureşti
Panaite NICA - Universitatea Al. I. Cuza, Iaşi
Puiu NISTOREANU - Academia de Studii Economice, Bucureşti
Andrei PAOLO - Università degli Studi di Parma, Italia
Luigia PETTI - University “G. d'Annunzio” Pescara, Italia
Ion POHOAŢĂ - Universitatea Al. I. Cuza, Iaşi
Gabriela PRELIPCEAN - Universitatea Ştefan cel Mare, Suceava
Andrea RAGGI - University “G. d'Annunzio” Pescara, Italia
Constantin ROŞCA - Universitatea Craiova, AFER
Ion ROŞCA - Academia de Studii Economice, Bucureşti
Mohammad SHAMSUDDOHA - University of Chittagong, Bangladesh
Pavlo SHYLEPNYTSYI - Bucovina State Academy of Finance, Cernăuţi, Ucraina
Ovidiu STOICA - Universitatea Al. I. Cuza, Iaşi
Doru TILIUŢE - Universitatea Ştefan cel Mare, Suceava
Tudorel TOADER - Universitatea Al. I. Cuza, Iaşi
Viorel TURCANU - ASEM, Chişinău, Republica Moldova
Diego VARELA - University of Coruna, Spania
Margarida VAZ - University of Beira Interior, Portugalia
EDITARE VOLUM ŞI REVIZIE TEXT: Carmen NĂSTASE, Carmen CHAŞOVSCHI, Angela ALBU, Mariana
LUPAN, Anisoara Niculina APETRI, Adrian Liviu SCUTARIU, Ovidiu Florin HURJUI
Acest volum a apărut ca urmare a desfăşurării Conferinţei Internaţionale “Economie Europeană:

Prezent şi Perspective”, ediţia a X-a, aniversară, organizată cu prilejul împlinirii a 20 de ani de
învăţământ economic superior sucevean, şi reuneşte parte din lucrările prezentate în cadrul
manisfestării.
Responsabilitatea pentru conţinutul articolelor revine în întregime autorilor.
ISSN 2065-085X The authors are entirely responsible for the content of their articles.
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EUROPEAN ECONOMY:
PRESENT AND PERSPECTIVES.
International Conference
10 th edition
7-9 october 2010
Ştefan cel Mare University of Suceava Publishing House
3
4
CONTENT / CUPRINS
SECTION 1 / SECŢIUNEA 1 ...................................................................................................................................... 10

ECONOMY, TRADE, SERVICES/
ECONOMIE, COMERŢ, SERVICII
THE EFFECTS OF THE EUROPEAN INTEGRATION ON LABOUR MARKET IN ROMANIA ............... 12

Cristina BĂLĂCEANU, PhD Senior Lecturer
Faculty of International Economic Relations, “Dimitrie Cantemir” Christian University of Bucharest
Claudia BENTOIU, PhD Junior Lecturer
Andreea – Monica PREDONU, Teaching Assistant
CHALLENGES FOR THE NATIONAL MOLDOVAN STATISTICS IN THE EUROPEAN CONTEXT .... 20
Oleg CARA, Deputy General Director
National Bureau of Statistics of the Republic of Moldova
REFLECŢII ASUPRA COMPETITIVITĂŢII REPUBLICII MOLDOVA ÎN CONTEXTUL CRIZEI

FINANCIARE............................................................................................................................................................ 29
Corneliu Guţu, Conf. cercetător, dr.,
Academia de Studii Economice din Moldova
FACETS OF ECONOMIC PROTECTIONISM IN KNOWLEDGE SOCIETY. AN EPISTEMOLOGICAL

ANALYSIS ................................................................................................................................................................. 32
Alina-Petronela Haller
PhD Research fellow III. Iaşi Branch of the Romanian Academy. Iasi, Romania
EPISTEMOLOGICAL APPROACH OF ECONOMIC LIBERALIZATION DETERMINANTS IN THE

KNOWLEDGE SOCIETY ....................................................................................................................................... 38
PhD Research fellow III. Iaşi Branch of the Romanian Academy
THE IMPACT OF GLOBAL CRISIS ON THE SOCIO-ECONOMIC DISPARITIES AND REGIONAL

DEVELOPMENT IN THE EUROPEAN UNION.................................................................................................. 44
Mihaela Dana Ignat
Alexandru Ioan Cuza University, Iaşi, Romania
Camelia Nicoleta Morariu
LOCAL SUSTAINABLE DEVELOPMENT, ASPECTS OF POPULATION HEALTH .................................. 54

Romeo IONESCU, Professor Eng. PhD
Stefan cel Mare University of Suceava, Romania
BRAIN CAPITALISATION – THE NEW PYLON OF THE REGIONAL DEVELOPMENT ........................ 60

Ph.D.Professor Romeo Ionescu
Dunarea de Jos University, Galati, Romania
THE EDUCATION – VECTOR OF HUMAN DEVELOPMENT. ROMANIAN PERSPECTIVE .................. 70

Lecturer Amalia Ioniţă, Petroleum and Gas University from Ploieşti, Romania
Associate professor Mirela Matei, Petroleum and Gas University from Ploieşti, Romania
STATISTICAL ANALYSIS OF THE WORK ENVIRONMENT OF SURVEY OPERATORS ...................... 77

Alina Moroşanu, Phd. Student
“Alexandru Ioan Cuza” University/Doctoral School for Economics, Iaşi, Romania
THE CHOICE FOR SOCIAL DISCOUNT RATE. ............................................................................................... 84

Assistant professor, Ioan Alin Nistor, PhD
Faculty of Business, “Babes-Bolyai” University, Cluj-Napoca, Romania
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ASPECTE PRIVIND CONCURENŢA PE PIAŢA TELEFONIEI DIN ROMÂNIA ÎN CONTEXTUL U.E. . 89

Asist. univ. drd. Adrian Liviu SCUTARIU
Conf. univ. dr. Carmen NĂSTASE
Ec. drd. Alina BĂLAN
Universitatea “Ştefan cel Mare” Suceava, România
THE APPLICATION OF THE EUROPEAN CHARTER FOR REGIONAL OR MINORITY LANGUAGES

IN ROMANIA IN THE FIELD OF EDUCATION ................................................................................................ 95
Roxana Alina Petraru, PhDs university lecturer,
The University of “Petre Andrei” from Iasi, Romania
THE STATUTE OF THE ECONOMIC MODEL WITHIN SCIENTIFIC KNOWLEDGE: CONCEPTUAL-

THEORETICAL APPLICATIONS IN TERMS OF INTERDISCIPLINARY CONTEXT ............................ 102
Georgeta PUSTIU, Master student
“Stefan cel Mare” University Suceava, Romania
AN OVERVIEW REGARDING THE ROLE OF CAPITAL MARKETS IN THE MODERN

ECONOMIES .......................................................................................................................................................... 112
Şargu Alina Camelia, PhD Candidate
„Alexandru Ioan Cuza” University Iasi, Romania, Faculty of Economics and Business Administration, Doctoral
School of Economics
IRELEVANŢA ÎN CONTEXTUL ACTUAL A INDICATORULUI RIR ÎN CADRUL PROIECTELOR CU

FINANŢARE NERAMBURSABILĂ EUROPEANĂ .......................................................................................... 121
Moroşan Andrei-Alexandru, masterand
Universitatea “Ştefan cel Mare” Suceava, Suceava, România
THE MANAGEMENT OF NATURAL PROTECTED AREAS FROM BULGARIA ..................................... 130

Associate Professor phd. Andreea Băltăreţu,
„Dimitrie Cantemir” Christian University, Faculty of Touristic and Commercial Management, Bucharest,
Romania
BRANDING ROMANIA AS A TOURIST DESTINATION ............................................................................... 137

Camelia Pavel, Lecturer PhD candidate
“Dimitrie Cantemir” Christian University, Bucharest, Romania
SECTION 2 / SECŢIUNEA 2 .................................................................................................................................... 148

MANAGEMENT AND BUSINESS ADMINISTRATION /
MANAGEMENT ŞI ADMINISTRAREA AFACERILOR
SOCIAL LEGITIMACY AND BUSINESS CITIZENSHIP................................................................................ 150

Aura BRISCARU, lecturer
Petre Andrei University, Iaşi, România
NEW STAKEHOLDERSHIP’ WEBS ................................................................................................................... 155

Aura Brişcaru, lecturer
Petre Andrei University, Iaşi, România
CURRENT ASPECTS REGARDING EMOTIONAL INTELLIGENCE AND LEADERSHIP..................... 162

Larisa Dragolea, Lecturer PhD
“1 Decembrie1918” University of Alba Iulia, Romania
Cotîrlea Denisa, PhD Student
“1 Decembrie1918” University of Alba Iulia, Romania
TIME FOR EMOTIONAL CHANGE OF PEOPLE AND ORGANISATION ................................................ 172

Camelia – Olivia Ilieş, Junior Teacher Assistant
Petru Maior University, Tg-Mures, Romania
METHODS OF MEASURING INTELLECTUAL CAPITAL ........................................................................... 178

Prof. PhD., Gheorghe Lepadatu
Christian University "Dimitrie Cantemir", Bucharest, Faculty of Finance, Banking and Accounting
6
UNDERSTANDING RISK MANAGEMENT IN SMALL 7 STEPS.................................................................. 182

Valentin Petru MĂZĂREANU, PhD
The Faculty of Economics and Business Administration
“Alexandru Ioan Cuza” University of Iasi, Iasi, Romania
MODELS OF ENTREPRENEURSHIP IN THE GLOBALIZATION ERA ..................................................... 188

Constantin Sasu, Professor PhD
Universitatea „Al.I.Cuza” Iaşi
Luciana Sasu, PhD student
Universitatea „Al.I.Cuza” Iaşi
IMPACTUL ISD ASUPRA DEZVOLTARII REGIONALE A ROMANIEI IN CONTEXTUL ECONOMIC

CRITIC – GRUPUL EGGER................................................................................................................................. 194
Conf. univ. dr. Carmen NĂSTASE,
Universitea "Ştefan cel Mare" din Suceava, Romania
Lector univ. dr. Mihai POPESCU
Universitea "Ştefan cel Mare" din Suceava, Romania
THE COMPETENCE OF THE MANAGER IN A MILITARY STRUCTURE ............................................... 202

Drd. ec. Sofronia Petrică Puiu
Universitatea Alexandru Ioan Cuza Iași, România
DECISION-MAKING METHODS AND COMMUNICATION STRATEGIES IN MANAGEMENT.......... 209

Ovidiu Spirescu, Master student
“Stefan cel Mare” University, Suceava, Romania
METHODS FOR THE EMPLOYEES’ PERFORMANCE EVALUATION..................................................... 216

Sebastian Adrian Uriesi, PhD Student
Faculty of Economics and Business Administration, “Al.I.Cuza” University, Iasi, Romania
INVESTIŢIA STRĂINĂ DIRECTĂ ÎN ROMÂNIA SUB IMPACTUL CRIZEI FINANCIARE

ACTUALE................................................................................................................................................................ 222
Lect.univ.dr. Lucreţia Mariana Constantinescu
Facultatea de Ştiinţe Economice, Univ.Valahia din Târgovişte, România
INVESTIŢIILE STRĂINE DIRECTE – CREŞTERE ECONOMICĂ .............................................................. 230

Asist. univ. drd. Gabriela-Liliana CIOBAN
Universitatea “Ştefan cel Mare” Suceava, Romania
Drd. Costel-Ioan CIOBAN
Arhiepiscopia Sucevei şi Rădăuţilor, Suceava, Romania
Universitatea ”Al. Ioan Cuza” Iaşi, Romania, Şcoala Doctorală de Economie
THE IMPACT OF THE CULTURE ON THE STRATEGIES OF THE COUNTY MEHEDINTI

ORGANISATIONS ................................................................................................................................................. 236
Doina ROSCA, Adriana SCHIOPOIU BURLEA, Marioara AVRAM, Laurenţiu DRAGOMIR, Mirela SÎRBU,
Cristian NEGULESCU, Ionuţ PANDELICĂ, Daniel AVRAM
SECTION 3/SECŢIUNEA 3 ...................................................................................................................................... 251

ACCOUNTING – FINANCES /
CONTABILITATE – FINANŢE
FINANCIAL INTEGRATION OF EUROPEAN MONEY MARKET UNDER EMU. AN OVERVIEW...... 253

Andreea Avadanei, Phd Student
“Alexandru Ioan Cuza” University, Doctoral School of Economics, Iasi, Romania
THE IMPLICATIONS OF ECONOMIC AND MONETARY UNION IN SUSTAINING EUROPEAN
CORPORATE BOND MARKET INTEGRATION............................................................................................. 261
“Alexandru Ioan Cuza” University, Doctoral School of Economics, Iaşi, Romania
Sorin Gabriel Anton, University assistant, Ph. D.
“Alexandru Ioan Cuza” University, Business Administration Department, Iaşi, Romania
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ENTERPRISE PERFORMANCE ASSESSMENT THROUGH THE INCOME, IN TERMS OF APPLYING

NEW ACCOUNTING REGULATIONS............................................................................................................... 270
Junior Lecturer Ph.D. Roxana-Manuela DICU
“Alexandru Ioan Cuza” University of Iaşi, Romania
Lecturer Ph.D. Daniela-Neonila MARDIROS
FINANCIAL MEASURES OF RESPONSE TO THE PRESENT ECONOMIC GLOBAL CRISIS .............. 277
Professor Epure, Dănuţ Tiberius, Ph.D
„Ovidius” University of Constanta, Romania
Teaching Assistant Cuşu, Dorinela
„Ovidius” University of Constanta, Romania
THE LEASING – COMPANY’S FINANCIAL METHOD ................................................................................. 283

Roxana Ionescu -Davidescu, Lecturer PhD
„Dimitrie Cantemir” Christian University, Bucharest, Romania
NEED AND BENEFITS OF CASH FLOW INFORMATION............................................................................ 289

Christian University "Dimitrie Cantemir", Bucharest, Romania
THE INTERDEPENDENCE BETWEEN ACCOUNTABILITY FROM PRODUCERS OF FINANCIAL

AND ACCOUNTING INFORMATION AND THE TRANSPARENCY OF REPORTING FOR
DESIGNATED USERS ........................................................................................................................................... 295
FINANCIAL INSTRUMENTS ACCOUNTING REFORM. THE MOST IMPORTANT CHANGES

BROUGHT BY IFRS 9 ........................................................................................................................................... 303
Lect. univ. dr. Iuliana Oana MIHAI1, Lect. univ. dr. Camelia MIHALCIUC2
1
Universitatea “Dunărea de Jos” Galati, Departamentul Administrarea Afacerilor
2
Univesitatea “Ştefan cel Mare” Suceava, Facultatea de Ştiinţe Economice şi Administraţie Publică, Catedra
Contabilitate-Finanţe
ACCOUNTING INFORMATION: MANAGEMENT USEFUL TOOL............................................................ 313

Ph. D Student Ec. Postolache (Maleş) I. Daniela
“Alexandru I. Cuza” University of Iasi, Romania
HOW TRUE IS THE TRUE AND FAIR VIEW................................................................................................... 320

Alexandra-Daniela Socea, PhD. Student
“Alexandru Ioan Cuza” University, Iaşi, Romania
FINANCIAL AND ECONOMICAL ANALYSIS IN EVALUATION AND FIXING OF THE RISKS.......... 327
Drd. ec. Sofronia Cristina Antonela
Universitatea Alexandru Ioan Cuza Iași, România
TRUE AND FAIR VIEW IN THE CONTEXT OF THE EUROPEAN ACCOUNTING

HARMONIZATION ............................................................................................................................................... 332
Neculai TABĂRĂ, PhD Professor
“Alexandru Ioan Cuza” University, Faculty of Economics and Business Administration, Iaşi, Romania
Alina Ionela RUSU, PhD student

STATISTICS, DATA PROCESSING (INFORMATICS) AND MATHEMATICS /
STATISTICĂ, INFORMATICĂ ŞI MATEMATICĂ
ANALIZA DINAMICII ŞI PONDERII SERVICIILOR ÎN HOTELURI ŞI RESTAURANTE,

ÎNVĂŢĂMÂNT, SĂNĂTATE ŞI ASISTENŢĂ SOCIALĂ ÎN ROMÂNIA ...................................................... 342
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Prof. univ. dr. Elena-Maria Biji

Prof. univ. dr. Eugenia Lilea
Conf. univ. dr. Mihaela Vătui
Academia de Studii Economice Bucureşti
Asist. univ. dr. Florin-Paul-Costel Lilea
Universitatea Artifex Bucureşti

LAW AND PUBLIC ADMINISTRATION /
DREPT ŞI ADMINISTRAŢIE PUBLICĂ
LEGAL ASPECTS CONCERNING FINANCIAL INSTRUMENTS – GROUND OF THE

INTERNATIONAL ACCOUNTING..................................................................................................................... 349
Asist. univ. Iacob Baciu
Christian University Dimitrie Cantemir, Bucharest, Romania
LEGAL CONSIDERATIONS CONCERNING CORRUPTION AND TAX EVASION IN ROMANIA ....... 356
Christian University Dimitrie Cantemir, Bucharest, Romania
TERMS CONCERNING LEASING IN NATIONAL AND INTERNATIONAL JUDICIAL

LITERATURE ......................................................................................................................................................... 362
Barna Noluţă Ph. D. in Law
Advocate, Neamţ Bar Association, Romania
CHRONOLOGICAL ASPECTS OF THE IMPACT OF THE OTTAWA CONVENTION ON SOME

CATEGORIES OF INTERNATIONAL COMMERCIAL TRANSACTIONS................................................. 367
THE EUROPEAN PROTECTION OF THE RIGHT TO LIBERTY AND SECURITY ................................. 373
PhD Student Dumitrescu Iulius – Cezar
Judge at the Suceava Court of Appeal, Suceava, Romania
COMPARATIVE ANALYSIS OF THE RIGHT TO LIBERTY AND SECURITY REGULATIONS IN THE

CONSTITUTION OF ROMANIA AND MOLDOVA ......................................................................................... 379
Judge at the Suceava Court of Appeal, Suceava, Romania
IMPACT ON CITIZENS QUALITY OF PUBLIC SERVICES ......................................................................... 387

PhD Student Constantin PITU
University of „Al.I.Cuza” Iasi
PhD Student Camelia SCRIPNICIUC-LEFTER
University of „Al.I.Cuza” Iasi
PARTNER ABUSE WITHIN THE BANK IN CREDIT AGREEMENT .......................................................... 392

Scientific coordinator: lector univ. dr. Nemţoi Gabriela
Saftiu Cristina – Student –“Ştefan cel Mare” University Suceava – România
Ştefănoaia Mariana – Student –“Ştefan cel Mare” University Suceava – România
Micu-Drescanu Vlad – Student –“Ştefan cel Mare” University Suceava – România
PROGRES CĂTRE EXCELENŢĂ. IMPLEMENTAREA CAF (CADRUL COMUN DE AUTOEVALUARE

A MODULUI DE FUNCŢIONARE A INSTITUŢIILOR PUBLICE) ÎN ADMINISTRAŢIA PUBLICĂ ..... 401
Subprefect Angela Zarojanu,
Instituţia Prefectului-judeţul Suceava, municipiul Suceava, România
9
SECTION 1 / SECŢIUNEA 1
__________________________________
ECONOMY, TRADE, SERVICES/

ECONOMIE, COMERŢ, SERVICII
10
11
THE EFFECTS OF THE EUROPEAN INTEGRATION ON LABOUR MARKET IN

ROMANIA
Cristina BĂLĂCEANU, PhD Senior Lecturer

Faculty of International Economic Relations,
“Dimitrie Cantemir” Christian University of Bucharest
movitea@yahoo.com
Claudia BENTOIU, PhD Junior Lecturer
tavi_bentoiu@yahoo.com
Andreea – Monica PREDONU, Teaching Assistant
monica_predonu@yahoo.com
Abstract: Market and market processes will end with the end of the world. The reason is that both our fathers and us,
contemporaries are concerned about a big problem. An issue that concerns the future market and market processes. So,
in the present study, I wanted to demonstrate the great importance of the unique market work in the EU.
Keywords: unique labor market, development, benefits of European integration, mobility, competitive environment.
JEL code: E24, E26, J30.
Introduction work. This would limit the benefits of a

consumer market with fair and free
competition, with a wide variety of goods and
The historical development of services available at reasonable prices.
humankind shows that the exchange of In competitive economies, such as the
activities stands for a unifying principle of EU market, competition is a real engine of
society, a cohesion factor between peoples progress. The European Union is the space in
and their progress. The evolution of economic which there are about 500 million people who
life shows that the economic activity is more are free "to live, work, study, do their
efficient when societies are united unlike the shopping and travel whenever and wherever
divided ones, and the unifying element they want in the 27 EU Member States.[3]
related to progress, is considered to be unique EU Single Market is seen as an essential
labor market. The unique market represented component of international economic
a start for the new phase superior to the integration and also the principal means of
economic integration (European and achieving goals that belong to the countries
monetary integration), a process that was that are members of it. That explains why,
finished at the beginning of 2002.[1] Thus, The European Union, through the
without losing any national feature or cultural integrationist economic organizations focus,
tradition, the citizens of the Member States among their common preoccupations and
became citizens of Europe. The appearance actions, on the Unique Market, that they
and development of a unique domestic market consider the main unifying element of
within EU determined the necessity of progress.
assuring the proper conditions for a functional To make a connection with the reality
competition at the communitarian level, “a characterizing nowadays world, we could
system that should assure a fair start from a motto, told by Jacques Attali:
competitiveness on the internal market. "[2] “Today people have come to make decisions
The competitive policy is important for for 2050 and get prepared for what it will be
creating the European Common Market. It in 2100”. The State will set up policies meant
would not make sense, if competition to support small and large enterprises, to
between the Member States companies were which it will guarantee the grants, will
limited by restrictive agreements and cartels modernize and restructure and, not in the
12
least, will set up policies to stimulate reassessment of real performances in different

consumption and investments, labor force domains especially on the labor market, as an
employment, inclusively in public structures, expression of the rapports between demand
as well social security, on the principle of and job offer.
flexicurity. [4] The external labor mobility is one of
the most important events for Romania's
Paper content socio-economic transformations and the lives
of its citizens and for the entire EU.[5]
Romania was interested to join the The participation of Romania in the
European Community structures given the race for European integration requires a
coeherence of the European Union in reassessment of actual performance in
political, economic and social, which should different areas and, last but not least, in labor
confer stability. Our country's aspiration to market .
join the European Union is an expression of After the integration in the European
identity values and ideals of any democratic Union, Romania may confront with various
country which belongs to the culture and challenges on the labor force market, too. The
civilization, the single European space. challenges on the labor market in Romania,
Among the most important advantages after the European Integration are:
of Romanian’s integration in The European  general challenges (stopping the
Union, there are the following ones: demographic decline, acceleration of active
* the benefit of belonging to a big family of and employed population increase, adopting a
nations and the security offered by this model of economic increase based on the
belonging ; employed population increase);
* advantage of participation in the biggest  challenges specific to the goals set up
unique market of the world; at Lisbon (for Romania, labor market
* opportunities regarding with economic performances do not meet the European
growth; goals);
* new jobs;  strategic challenges for Romania from
* access to the structural funds especially for the perspective of its durable development
the less developed areas of the European (the need of a new structure regarding
Union. employment based on incresed productivity
The advantages of integration for the and labor force costs.) [6]
citizens are also significative:
 continuous improvement of life quality; The creation of a new competitive
 high standards regarding environment environment is stipulated even by our
protection; Constitution that says that the Romanian
 social protection; economy is market economy based on free
 right to travel and dwell in any member initiative and competitiveness. At the same
state; time, the State is forced to ensure trade
 consular and diplomatic protection from freedom, protection of loyal competitiveness,
the part of the other member state. creation of the favorable framework to use
For Romania, integration means, efficiently all factors of production.[7] Thus ,
among the others, an important flow of traders, either at the national or
capital, and for the other members of the communitarian level, are to interact as free as
Union, a new market. Many of the great possible, without negative influences from the
European companies have already opened part of strong agents or those agents under
branches in Romania, increasing competition privileged circumstances, association of
on most of the market segments. In other economic agents and of the state and
sectors, it is enough place for new Romanian economic agents. In a functioning market
or foreign stakeholders. That’s why, the economy, respect for competition rules ensure
participation of Romania in the race for economic progress, defending consumer
European integration clearly imposes a interests and competitiveness of products and
14
services within that certain economy as well suggests that labor productivity is very low
as on other markets. (due to lack of motivation of the workforce,
Understanding the current labor but technical accomplishments and low
market in Romania is done analyzing the capital production system) and the
main factors of influence, the economic competitiveness of economic goods on the
policies of the state on the one hand, and the foreign markets is also low. In this case, it is
internal conditions that generate it and that necessary to take efficient measures to
stress the current dynamic state of the labor maximize production, improve the
market, on the other. It is therefore necessary competitiveness of economic assets, the
to have a retrospective approach on the adjustment of capital and labor to produce
Romanian economy. those economic goods with a high
Romanian economy was focused competitive level. All these measures require
mostly on producing highly consuming significant flows of investment,
energy industrial goods and high wage labor, rationalization of consumption of economic
which was, once with the transition to a resources to reduce production cost and adapt
market economy, a strong competitive production to demand.
disadvantage. Thus, industry restructuring There is a paradox in all this
and privatization have left behind a great economic approach: a low cost of labor does
mass of unemployed workers because the two not entail the high-income jobs because cost
processes aimed at transforming the reduction is not a result of productivity gain,
economy, the industry in a competitive, but of the discrepancies between production
efficient, with high productivity, that prevail and market requirements.
the competitive elements of economic goods Low cost of labor is an essential
produced on the competitive markets, element in attracting investment, provided
respectively an economy that will produce that the tax should not minimize investor
what market requires, using efficiently the profit. In Romania, the advantage of low cost
resources on the basis of a business plan labor was not enough for investors. Excessive
where the labor production factor, besides the taxation prevailing in Romania reduced the
capital are cost elements, and their competitive advantage of labor cost, however,
combination and substitution will be focus on investors have found loose in the appropriate
the criteria of efficiency and rationality. labor laws that, through minimum wage, may
However, labor management and so create the possibility of theft of incomes that
its salary will be based on optimal dimension are not subject to taxation. Thus, the state
of the dynamics of labor productivity. For this budget records high losses situating between
reason, the labor market in Romania is two hypotheses: on the one hand, from the tax
remunerated at a level much lower than other on the income profit, respectively on income,
EU markets. and, on the other hand, from the
We believe that remuneration is encouragement of the underground economy.
fundamentally linked to productivity and The ex-socialist economies have a low
efficiency, which in turn depend on a number level of income as a result of low
of psychosocial factors such as education, productivity; low productivity appear as a
health, culture, mentality, creativity, attitude result of the inadaptability of the capital to the
toward the group, organization, community, structure of production and especially, the
society, family. market requirements, - in this case, the costs
To exemplify, the tables below show for restructuring and upgrading the
the gross wages and salaries in EU countries technology of the enterprise increase the costs
for 2009 (Tabel no. 1) and labor productivity of production of economic goods, which
per person employed labor for 2009 (Tabel confer a disadvantage of the final product on
no.2). the market, comparatively with the price of
As illustrated, the former communist that economic good on a market with a high
countries have the lowest labor incomes , of degree of upgraded technology; the
which Romania has the lowest one, which consumption demand from the ex-communist
15
countries is great- as a result of restraints  lack of strategy regarding the public

since the communist times, which support resource allocation, in Romania, one
import to the detriment of the adjustment of does not take into account the existing
the national production in accordance with correlation between economic
the new conditions of the internal demand, resources and their possibility of
ignoring the external demand; differences and creating wealth through exploitation,
deficiencies of the educational system from obviously in combination with other
the urbane and rural environment that factors of production, namely labor
generate low incomes. The low income of the and capital. So the agriculture sectors
labor cannot favor the development of the of the economy with the highest
society as the population do not allow the economic advantage, even maximum,
financial resources necessary to the human is not exploited so that it may increase
capital, the main factor of production and, on production and meet as much as
the other hand, the processes of accumulation possible the demand because of a lack
and preservation are also inefficient. And of investment strategy, maintaining a
however, the low cost of labor force is low infrastructure development or
economic competitive advantages, which indifference for the workforce training
attract foreign investments, generating in rural areas.
economic development and growth. It seems  decreased interest in the domestic
that it is the low level of income that does not economic potential, the main cause of
encourage the labor force, respectively low competitiveness of the economy,
contribute to the decrease of productivity, opposite to the domestic market.
thus affecting negatively the economic  poor or insufficient professional
decrease. An economy cannot be flourishing training of labor forces to decrease
if remuneration is low and does not cover all labor costs as a factor contributing to
the decent necessities of the contemporary productivity growth; on the other
consuming society. hand, to increase labor productivity,
Low productivity in Romania is an one should also consider the high
effect of inefficient use of capital and degree of the technical endowment of
production capacities, respectively of the the work.
irrational use of production factors as a result  low degree of authentic products on
of an investment flux insufficient to the external markets. The reverse effect of
society growth and development. the penetration of foreign products on
In Romania, the lack of correlation domestic market deepens the
between salaries and labor productivity stands economy's trade deficit. Another
for an institutional deficiency that affects effect is to decrease the selling price
substantially the degree of development of of economic goods, which attract
society on long-term. There are more factors lower pay and work.
that contribute to this economic nonsense:
 the prevalence of the available labor The increase of the level of wage
force on jobs, due to insufficient policy depends on the economic growth. This
development of market economy, indicator stirs the cumulative manifestation of
market economy in Romania has competitiveness of economic goods on the
reached that threshold of functionality market, natural resources endowment,
that can allocate resources according exploration of the productive potential, the
to the requirements of internal and motivation of the labor force, the degree of
external market. This leads to the import coverage by export, the negotiating
impossibility of achieving that level of force of unions, the prevalence of social
production that should meet market politics vis-à-vis of other structural policies,
requirements on the one hand, and to access to the financial sources existing on the
generate revenue to cover these needs, monetary- financial market, the degree of
on the other. liberalization of the market.
16
Tabel no 1- Gross wages and salaries, at current prices, euro, 2009

Gross wages and salaries, just as compensation of employees, include both remuneration in UE
Source: Eurostat, http://epp.eurostat.ec.europa.eu/tgm/graph
17
Economie Europeană: prezent şi perspective, Conferinţă Internaţională, ediţia a X -a
Tabel 2- Labor productivity per person employed, 2009

GDP in Purchasing Power Standards (PPS) per person employed relative to EU -27 (EU-27 = 100)
Source: Eurostat, http://epp.eurostat.ec.europa.eu/tgm/graph
18
Conclusion References:
To conclude, the correct approach of [1] Aristide Cociuban, Racordarea economiei

labor market in the context of integration României la piaţa unică europeană,
Apimondia Publishing House, 2002,
aims at reorganizing the principles of price Bucharest, p. 37;
policy on the labor market. It is also [2] Michel Ayral, Le marche interieur de l’Union
necessary to have a holistic approach of labor europeene, La documentation francaise, Paris,
market within the economy of Romania coll. Reflexe Europe, 1995;
considering the existent resources of our [3] It’s a better life How the EU’s single market
benefits you, European Commission, 2002, p.
economy, possibilities of adjusting the labor 11;
force to the needs of the real economy, the [4] http://europa.eu/pol/singl/overview_ro.htm
degree of market absorption of labor force, as [5] Coralia Angelescu, Anca Dachin, Dorel
well as goods and services, products of labor Ailenei, România în Uniunea Europeană.
market. Calitatea integrării;
[6] Elena Balu, Provocari ce revin pieţei muncii
Labour market should assure both the din România în perspectiva integrării in
flexibility and flexicurity of the labour force Uniunea Europeana, 2006;
and economic agents. Romania has not an [7] Art. 135 of Constituţia României, published in
active and efficient policy meant to assess the M. Of. No. 767/31.10.2003, as a result of
potential of the labour market and economic adopting a Law of revision Romanian
Constitution no. 429/2003, printed in The
resources of which they dispose. This fact has Official Monetary of Romania, Part I, no. 758,
negative consequences on the level of October 29 2003.
income, population health as well as on the
progress of the country itself.
19
CHALLENGES FOR THE NATIONAL MOLDOVAN STATISTICS IN THE EUROPEAN

CONTEXT
Oleg CARA, Deputy General Director

National Bureau of Statistics of the Republic of Moldova, oleg.cara@statistica.md
Abstract: We live in an ever more complex, increasingly numerous society, in a state of overwhelming changes. So, the
biggest challenges which producers of official statistics are now facing are to provide sufficient, quality statistical
information for major user groups, but also to support the public with statistical knowledge that would help users to be
informed on various issues and to take related decisions based on sound statistical information. To meet this challenge,
as well as to increase the efficiency of statistics, the European Statistical System (ESS) pointed a range of vital changes
in terms of content and form. Modernising the system of production and dissemination of European statistics is a
challenge, but also a great opportunity to improve the quality of Moldovan statistics, including its comparability at the
European level to be in line with user’s requirements. Moreover, the European integration aspirations of the Republic
of Moldova dictate the need for harmonisation of national statistics with the European standards and norms. However,
the assimilation of acquis communautaire, which is a constantly moving target, since the European statistical system is
in perpetual development, requires a complex approach and strong efforts.
The paper reflects the author’s vision on the main activities needed to be fulfilled to better meet the information
demands of internal and external users in quality statistics in the European context.
Keywords: statistical knowledge, quality, communication, modernisation, harmonisation, innovative approach
JEL: C10, C40, C44
Introduction and in business need statistics to make those

decisions. On the other hand, the public and
We live in a world of rapid media need statistics for an accurate picture
transformations that are deeper, faster and of contemporary society and to evaluate the
broader than we could have imagined only a performance of politicians and public insti-
decade ago. We live in an ever more complex, tutions. Citizens need more statistics than
increasingly numerous society, in a state of ever in order to exercise their democratic
overwhelming changes. Statistics play a rights, participate in the public debate and
crucial role in our society. They help us to select the best politicians.
capture the transformations taking place, to The development of a culture of
grasp their implications and develop an "evidence-based decision making", together
effective response. Reliable statistics help us with the transfer of some decisions from the
negotiate the unchartered waters of State to individuals and the growing
modernity. Statistics in the 21st century need opportunities created by globalization, has
to keep up with the rapid changes and new stimulated an unprecedented growth in the
challenges of the modern era. Contributing to demand for statistics by individuals. Millions
information capacity building at the national, of people are looking for the best
but also international levels, it becomes in- opportunities to study, to work, to spend their
creasingly important for the policy develop- life after retiring, etc. The state institutions,
ment, implementation, monitoring and but also the representatives of academic and
evaluation. business environments, civil society as a
The provision of statistics constitutes the whole, have increased requirements towards
basic knowledge infrastructure for the policy the statistics in terms of quantity and quality:
decision- making process. Democratic on the accuracy, completeness, coherence and
societies do not function properly without a comparability, timeliness, the accessibility
solid basis of reliable and objective statistics. and clarity of statistics, etc.
Monitoring policy outcomes through
statistical indicators is a common practice in a
growing number of countries and at
international level. On one hand, decision-
makers at national level, in local government
20
Major challenges faced by european benefits of citizens and society in general– as

statistics and their response the major task of statistical institution.
In order to deal with this challenge, the in-
The users need increasingly more novative approach of statisticians is needed, in
integrated and consistent data, as the order to evolve from just "information provid-
measured phenomena become more complex ers" to "knowledge builders". Therefore, the job
and interdependent. New data are requested, of official statisticians should not be limited to
such as those concerning globalization, producing and disseminating data, but should
sustainable development, quality of life, be about ensuring that statistics are actually
social inclusion, population ageing and used to build knowledge by all components of
migration, knowledge, climate change and the society. This, in its turn, requires innovative
protection of natural resources, energy thinking, reorientation of resources, good
efficiency etc. On the other hand, the claims communication and cooperation with partners,
of different categories of users are quite gaining new skills, the institutional adjustments,
specific in terms of volume, of provided and better integration within national and
information, given details, etc. international statistical systems. In this way,
But producing the right data is only one statistics can become more relevant and useful
side of the story. The unprecedented (Giovannini, 2007).
multiplication of the range and the sources of So, the biggest challenges which
available data often results in information producers of official statistics are now facing
overload which leads to difficulties in are to provide sufficient, quality statistical
navigation through them and assessing the information for major user groups, but also to
quality of information. This may result in a support the public with statistical knowledge
certain degree of confusion and in a that would help users to be informed on
perception that there may be a mismatch various issues and to take related decisions
between demand and supply in statistical based on sound statistical information.
data. Thus, the statistics must be adapted to the
Statistics do not speak for themselves. As conditions of "knowledge society”. At the
Einstein said, "information is not same time, these requirements assign to the
knowledge"'. The perceived asymmetry national statistical system major vital changes
between information on the one hand, and in the production and dissemination process
knowledge or a better understanding on the of official statistics, as well as in respect of
other hand does not only pertain to politicians better communication with partners,
and policymakers. Indeed, it is a problem that particularly with information users and
concerns our society as a whole. Statisticians providers.
have to explain numerical data, put it into Obviously, the official statistical
context and show its limits in order to make it institutions are facing financial and staff
more transparent and easier to use for constraints, as well as the problem of
everybody. Turning statistics into knowledge excessive response burden on respondents,
is of crucial importance and statisticians have which imposes the need of prioritizing the
to help people transform statistics into development of statistical products and the
knowledge and decisions. Statistics have to be efficiency of the overall statistical work.
developed and provided in such a way that However, the development of information and
these become known, understood by wider communication technologies development fa-
audiences and useful for them. On the other cilitated the vital transformation in statistics.
hand the use of official statistics depends on The European Statistical System (ESS)
the user’s trust in them, in the activity of has already actively engaged in the process of
statistical institution. So, it is important, based responding to the stated challenges. The
on the production of quality statistics and on revolutionary large-scale changes of the
communication with users, to promote a current European System are expected in
statistical culture and trust in statistics, as the terms of content and form, being based, in
basis of high usefulness of statistics for the particularly on:
21
- establishment of an institutional and or- The information on response burdens and

ganizational environment which production costs will provide the quantitative
promotes the effectiveness and elements for evaluating the cost-effectiveness
credibility of statistical authorities of statistical requirements. These elements
producing and disseminating official will then be combined with information on
statistics; relevance and users' needs provided in the
- systematic quality work, ensuring that different types of evaluations carried out.
statistics comply with the European Integration approach to statistics extends
quality standards and serve the needs of the scope of statistics and therefore would
European Union users. Quality increase the capacity to answer a wide range
statistical activity is to be characterised of requirements set by users, in a more
by the principles: users’ orientation; flexible way.
process orientation; documentation; The change from previously separated
participation by all statistical staff; production “stove-pipe” processes into a
management and continuity; comprehensive production system will be
- ensuring cost-effectiveness of the based on a common (technical) infrastructure,
statistics produced and an ongoing standard tools for data processing, storage and
review of statistical priorities, with a dissemination. In this regard, the possibility
view to making best use of available of using the information from different
resources and to minimising the burden sources for various purposes by eliminating
imposed on respondents. Prioritization the methodological differences and unifying
shall aim at balancing additional costs statistical classifications should be
and burdens for new statistical investigated. In this respect, there are
requirements by reducing statistical considerable challenges, both technical and
requirements in existing domains. methodological (Voineagu and others, 2009).
The focus will be on modernising the pro- The integrated model implies the active
duction systems of European statistics, to use of data collected for non-statistical
build a modern and integrated statistical purposes by authorities. Obvious advantages
system implying a review of production can be obtained by re-using administrative
methods and making efficient use of data, as well by using directly accounting data
information technologies and of existing data, of business units. Efforts are needed to ensure
minimising in such a way the burden imposed quality of data since, in many cases,
on respondents. The whole architecture for administrative data from other external
the production of European statistics is to be sources are not available according to
redesigned within the new legal framework statistical requirements.
which came in force on 1 April 2009. The At the same time, new tools of ICT
implementation of this strategy should enable continue to be developed enabling statistical
the ESS to meet new and ever increasing authorities to improve efficiency, to reduce
needs while saving resources and reducing or response burden and to improve the statistics
limiting the burden for respondents. quality, as well as in the data handling,
The use of new information and storage and dissemination.
communication technologies (ICT) and The challenges listed above are fully valid
statistical coordination will serve as key for the statistics of the Republic of Moldova,
elements in the modernisation of the which makes significant efforts to meet the
production and dissemination systems. needs of the society and of the international
The efficiency of transmission and community in statistical data, ensuring a grad-
dissemination of data and metadata processes ual harmonisation of national statistics with
will be improved by the extension of the use EU standards.
of SDMX standards and architecture and the
implementation both in the MS and in
Eurostat of the reference metadata standard,
Euro-SDMX (ESMS).
22
The needs of statistics development in the of data i.e. the efficiency of statistical activity,
Republic of Moldova in the EU context resulting in an improved, deserved trust and
image of official statistics. Trustful
What would be solutions to the challenges information, on its turn, stimulates its usage.
of meeting the growing information needs of In this respect, a comprehensive approach is
internal and external users in quality statistics needed, especially the fulfilling of such
comparable at the European level? The activities by National Bureau of Statistics, as
following major objectives can be mentioned: to:
I. Improving communication and disse- - develop the user-friendly dissemination
mination, strengthening the relations tools and methods, based on the
with statistical data users, as well as opportunities given by information and
their accessibility to the available communication technologies, to bring
fund of statistical data. data and metadata to a large audience
II. Modernisation of the statistical data (with a focus on web), in a easy to
production system. understand in a convenient way and
III. Support activities of strengthening the format;
capacities within the National Statisti- - develop friendly mechanisms to discuss
cal System (NSS), as well as of devel- with users on their needs, expectations
oping cooperation and coordination from statistics in order to identify most
within NSS and with foreign partners. relevant information for the whole
The production and dissemination of data society and its separate parts; special
statistical institution should be in line with the attention should be paid to permanent
Fundamental Principles of Official Statistics work in focus groups with main
adopted by the UN Statistical Commission on categories of user representatives;
14 April 1994 and respect the principles set - develop the metadata system:
out in the European Statistics Code of documentation of statistical
Practice, approved by the Commission on 25 methodologies, surveys, processes, etc.,
May 2005. in a standard way, with the integration
The use of new information and into SIS;
communication technologies, statistical - enhance communication with the mass
coordination, the improved communication media on the improvement of
and relationship with partners from up and dissemination of official data, as a key
down of information flow should serve as partner that spread information and
main pillars in the modernising Moldovan influence public opinion;
National Statistical System. - promote the use and re-dissemination of
Activities that should be performed for the statistical information by other active
achievement of the abovementioned players of society with the great
objectives: capacity of spreading and multiplication
I. Improving communication and di- of information - research institutions,
ssemination, strengthening relations with NGOs, youth organizations etc.;
statistical data users, as well as their accessi- - maximize communication with the final
bility to the available fund of statistical data. users, especially using new ICT tools,
The better use of statistical data should be special attention should be paid to
based on: providing quality information, statistical learning, to increase their
using modern dissemination tools; awareness and possibilities to use
transparency of methodology and of applied statistical information; the development
statistical procedures; improved and wide dissemination of metadata
communication with consumers, as well as on (information about data) designed in a
promoting the culture of statistics. It is well structured way; the special courses
namely the more active, friendly and for journalists, students are of great
permanent communication that will allow in- importance;
creasing the relevance, understanding, usage
23
- evaluate and monitor user satisfaction and dissemination of statistical information,

with statistics, via regular surveys in according to modern requirements.
order to investigate how society looks at The information technologies system
official statistics and try to resolve the (ITS) is a critical factor, which at present does
specific problems that emerge from not meet the current informational needs and
these; thus urgent adjustments to ensure the support
- promote an user-friendly and scientific required by development challenges in the
attitude of statisticians, encourage production and dissemination of statistical
creativity, and active communication at information are vital. So, the re-engineering
all levels, to become and be recognized of statistical business architecture, which
as part of the "knowledge industry", and involves switching from the traditional
not just of the bureaucratic public “stove-pipe” survey approach to an integrated
sector; system should be performed, based on:
- take a more active communication - maximum integration of methods, tools
stance against sources characterized by and techniques; standardised and inte-
very low data quality; grated working procedures and tools;
- regularly discuss with political masters - use of statistical, administrative registers
the risks and the opportunities for the and statistical surveys;
statistical function in a fast changing - creation of statistical meta-information
society; system with the use of SDMX
- dedicate more resources to initiatives standards;
aimed at developing statistical literacy - creation of a central storage of statistical
and culture in the population, especially information in a data warehouse;
in new generations; the elaboration of - implementation of efficient, modern,
materials in an attractive and easy to flexile mixed methods of data collection
understand form. and entry, especially by i) creating e-sta-
II. Modernisation of the statistical data tistics portal to ensure the electronic re-
production system. porting by respondents; ii) using of
Major efforts of the National Bureau of palm, tablet PCs for data
Statistics (NBS) and of other institutions from collection/recording; iii) exploring the
the National Statistical System (NSS) should possibility to implement CAPI and
be made to further adapt the system of CATI methods; iv) using of advanced
statistical data collection, processing, analysis data capture methods ( i.e. recognition
and dissemination to the growing demand for and scanning of data ) from statistical
relevant, reliable statistical information, questionnaires;
comparable at the European level and easily - extended use and integration in the
accessible by users. A strong need to make a production process of such tools as
substantial revision of the whole statistical SAS, SPSS for analytical, production
system occurred, with the aim to improve purposes and as PC Axis family tool for
interrelations between individual surveys, dissemination of statistics.
increase efficiency of the system, improve the SIS must ensure:
quality of disseminated data, and reduce - high data security and statistical con-
response burden. Taking into account fidentiality;
Moldova's integration aspirations into the EU, - further development of statistical
the provisions of aquis communautaire on dissemination methods by using new
statistics should be taken into account for its information and communication
gradual assimilation, based on national priori- technologies;
ties. - direct e-use of data from respondents'
The major tasks in this area are: information systems for statistical
Redesign of statistical informational purposes;
system (SIS) - will ensure efficient processing
24
- facilities for access by researchers to indicators with the macroeconomic indi-

statistical micro-data ensuring data cators within the SNA;
confidentiality; - development and harmonisation of the
- growing use of new web technologies. calculation of price indices (consumer,
Development of indicators and data of industrial and agricultural producers,
collection system according to the European in construction, of market services
standards - should be based on: sector), of the indices of unit values in
- inventory by the NBS, together with the foreign trade and their correlation with
partners within the NSS, of statistical in- deflators calculations in SNA;
dicators contained in the statistical ques- - participation in the International Com-
tionnaires to ensure their consistency parability Program, 2011 round;
and exclusion of primary data - improvement of calculations of infra an-
duplication and of respondents’ and nual trends in overall economy develop-
users’ confusion; ment and by its sectors by applying sea-
- active communication of the NSB with sonal adjustments;
users and partners within the NSS to - application of statistical-mathematical
identify statistical indicators and and econometric methods especially for
statistical surveys that will become time series analysis, making the
object of Statistical work programs estimations and projections;
(annual and multiannual); - improvement of regional statistics, etc.
- detailed assessment of the Extended use of administrative and other
correspondence of the system of sources of non-statistical data, relevant for
indicators, definitions, the the production of official statistics and
methodologies to the European monitoring of response burdens - will be
standards and best practices. based on:
Among the major needs related to the - a thorough analysis of potential use for
development of indicators system and statistical purposes of administrative
their implementation in the statistical data sources (ADS) held by public
practice of Moldova the following can be authorities and other institutions in
mentioned: terms of content, as well as
- further improvement in GDP correspondence of these data to specific
calculations, other indicators in the statistical requirements, including
System of National Accounts (SNA), quality (concepts, definitions used,
development of full sequence of coverage/units recorded, frequency of
accounts as required by UN SNA-93, collection/updating); increased attention
including financial account; should be paid to use of the following
- development of SNA in accordance with types of data: i) fiscal, ii) of national
UN SNA 1993 revision and of ESA public budget execution (state budget,
1995; social insurance budget and the state
- adjustments to the national medical insurance budget), iii)
particularities of methodologies for population register, iv) register of
gross regional product calculation, those vehicles owners and technical testing of
for health satellite accounts, vehicles, v) records held by the Border
environmental and tourism accounts, as Guard Service and other authorities
well as implementation of their concerning international migration
calculations etc.; flows, etc.;
- development of "flash" GDP - examination of the possibility of direct
estimations, for which the society has a use of primary statistical data from the
great interest; enterprises accounting systems (EAS)
- improvement of correlation and harmo- (e.g. data on retail prices provided by
nisation of business statistics and other trade companies for the calculation of
CPI etc.);
25
- permanent dialogue with these - development and implementation of sur-

institutions to obtain necessary access veys on innovation statistics, other rele-
and adjustment of data/ways of vant statistical surveys according to EU
receiving data, signing of agreements requirements.
providing access to data sources that can Further development of statistical classifi-
be used for statistical purposes; cations system.
- reconsideration of statistical production One of the major activities in the area is
process for the maximum use of data the implementation in Moldovan statistical
from the ADS and EAS, electronic practice of the Activities Classification, in
collection of primary data from line with NACE Rev.2 (already approved at
respondents and their integration (with the national level), of the National Products
necessary adjustments) within ITS; Classification, in line with CPA, 2008, etc.
- exploration of the possibilities of using Improving the national register of
partial information, based on data statistical units (RENUS), using a new
imputation and modelling techniques; software complex (with its integration into
- creation and implementation of SIS); switching to RENUS use as a source
methodological framework for the and as a basic, universal tool for conducting
measurement of response burdens. statistical surveys.
Improvement of the system of statistical The creation of a modern quality manage-
surveys for the collection of data that cannot ment system in line with EU recommendations
be generated by administrative data sources and best practices.
or provided directly from enterprises The quality of statistical information pro-
accounting systems. vided to consumers is determined by the
The emphasis in this activity shall be quality of performed activities at all stages of
placed on: statistical activity: designing the survey, data
- the complementary nature of statistical collection, processing, storage of primary
surveys to ADS and EAS; data, compilation and dissemination of
- exclusion of irrelevant surveys, statistics. Special attention should be paid to
implementation of new ones, in line the improvement of data confidentiality
with EU standards; environment. The evaluation and monitoring
- large scale implementation of sample of the statistical processes quality and of the
surveys for small and medium generated products will allow aligning the
enterprises. national statistics to EU quality standards,
Some important activities in this field will while the greater transparency will improve
be: the reliability and usefulness of statistical
- organization of Population and Housing data.
Census, round 2010, in line with CES In practice, the European Statistical Code
recommendations; of Practice, principles from Total Quality
- organization of the General Agricultural Management and, in the future, a desired set
Census, round 2010, in line with FAO of quality assurance tools and procedures will
and EU recommendations; constitute the main elements of quality
- improvement of statistical management system of the NBS.
questionnaires meeting SNA III. Support activities of strengthening the
requirements and taking into account the capacities within the National Statistical
national accounting standards to System, as well as of developing cooperation
facilitate the provision and improve the and coordination within NSS and with foreign
quality of primary data; partners.
- creation of integrated system of business To the important, supportive measures,
statistics, based on development and im- necessary to ensure the proper functioning of
plementation of integrated infra-annual the statistical production and dissemination
and annual surveys of business units; system, certain activities could be also added,
such as:
26
Strengthening the capacities of the Na- official statistics, both with international or-
tional Bureau of Statistics and of other bodies ganizations and with specialized institutions
responsible for official statistics - shall be in other countries.
achieved based on: The promotion of common values, knowl-
a) improving the organisational structure edge sharing and creation and development of
of the NBS by strengthening the central head- common tools processes and structures will
quarter and reallocation of functionalities be- contribute substantially to reduce the time and
tween this and regional statistical offices; costs to respond to common challenges. Thus,
b) improving human resource the products’ harmonisation should be supple-
management system within the NSS through: mented by processes’ harmonisation through
- continuous professional development in promotion of methodologies based on
the use of modern statistical methodolo- common tools at the European level.
gies, methods and practices; promotion
of knowledge of foreign languages, Conclusions
particularly English;
- creation of a training centre for The European and national statistics
statistical staff’s development; should be adapted to the new environment of
- active involvement in the coordination "knowledge society”. Thus, the need for
of development and implementation of radical changes is obvious in the way of
new statistical processes and products of designing as well as of management of
young specialists, with good knowledge information flows by statistical, including
of statistical methods and foreign Moldovan institutions. This, in its turn,
languages; requires innovative thinking, reorientation of
- improvement of personnel’s motivation; resources, good communication and
c) developing of R&D activities within cooperation with partners, gaining new skills,
NBS; the institutional adjustments, and better
d) improving the financial resources man- integration within national and international
agement, etc. statistical systems. A strong need appeared to
Developing the cooperation and coordina- make a substantial revision of the whole
tion within the national and international sta- statistical system with the aim to improve
tistical systems is of key importance to have a interrelations between individual surveys,
modern and efficient NSS and comprises: change from the traditional “stove-pipe”
a) improving the coordination within survey approach to an integrated system,
NSS, by: increase efficiency of statistical activity,
- strengthening the functionality of the improve the quality of disseminated data and
National Statistical Council; reduce response burden. The modernization
- clear delimitation of statistical produc- of statistical information requires re-
tion’s responsibilities between the insti- engineering of statistical business architec-
tutions; ture, focusing on electronic collection of
b) a better collaboration of the NBS with statistical data, expanding the use of
relevant institutions that hold administrative administrative data sources for statistical
data; purposes, direct use of primary statistical data
c) improving the collaboration with the re- from the enterprises accounting systems, and
search institutions for: i.) a more active use of large scale implementation of sample
scientific research results in the activity of methods.
official statistical bodies, increased focus on The development of quality management
the practical application of these research in system in line with European
official statistics, ii) a better provision of recommendations and best practices will
researchers with statistical information, contribute, to alignment of national statistics
including microdata (ensuring the to EU quality standards, while better
confidentiality measures); c) developing transparency will improve understanding,
international cooperation in the field of
27
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statistics. frameworks, Helsinki
[5]. Giovannini, E. (2007). Statistics and Politics in a
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improvement of coordination within the na- Paper No 2007.02, www.oecd.org/statistics
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laboration with other national partners, as official statistics? 93rd DGINS Conference - The
well as international cooperation are also vital ESS response to globalisation - are we doing
enough? Plenary session on globalisation
to align the national statistical methods with processes in the field of statistics, Budapest
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comparability of Moldovan statistics at the 2009). European Statistical System. Revista Ro-
European level. mana de Statistica, 12, pp. 2-18
[8]. Decision No 1578/2007/EC of the European
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28
REFLECŢII ASUPRA COMPETITIVITĂŢII REPUBLICII MOLDOVA ÎN CONTEXTUL

CRIZEI FINANCIARE
Corneliu Guţu, Conf. cercetător, dr.,

Academia de Studii Economice din Moldova
Abstract: The economy of the Republic of Moldova continues to rely on the extensive use of production factors and
presents substantial differences in competitiveness in the European and world context. The elimination of existing
barriers at the implementation of results of the research-development-innovation activity would assure the
multiplication of the favorable impact that the innovation has on the economic performances.
Keywords: competitiveness, competitiveness advantages, knowledge economy, innovation.
Este bine cunoscut, că ştiinţa, tehnica, Republica Moldova trebuie să-şi propună
inovarea, utilizarea cunoştinţelor, şi până promovarea obiectivelor Strategiei Lisabona,
acum, de-a lungul timpurilor, au avut un rol unul din obiectivele principale fiind
important şi şi-au adus aportul lor la îmbunătăţirea competitivităţii şi
dezvoltarea social-economică, în susţinerea productivităţii economice. Integrarea
progresului economic la general. Totodată, europeană nu se va putea realiza dacă
societatea contemporană devine tot mai mult Republica Moldova, nu se va transforma într-
o societate bazată pe cunoaştere şi informaţie, un partener credibil, cu o economie în
o societate a civilizaţiei globale, informaţia dezvoltare, bazată pe inovare, prin
devenind, de fapt, o resursă strategică şi valorificarea potenţialului creativ.
fundamentală, asemănător capitalului în Teoria concurenţială şi cea a avantajelor
societatea industrială, şi cu un impact competitive au fost elaborate în baza
hotărâtor asupra dezvoltării şi prosperităţii experienţei economiilor (statelor) mari şi în
oricărei naţiuni. În societăţile cele mai cu totul alte situaţii economice. Globalizarea
dezvoltate din punct de vedere economic, economică, deschiderea economiilor,
folosirea intensivă a cunoaşterii este competiţia externă puternică au făcut ca
recunoscută ca principal factor de progres. sursele tradiţionale de avantaje, precum
De rând cu cele indicate mai sus, asimilarea tehnologiilor existente, producţia
economia mondială este profund marcată şi de masă generatoare de economia la scară,
de fenomenul internaţionalizării afacerilor, dominarea de firme mari în industrie, pieţele
creşterii interdependenţei economice între stabile de desfacere să-şi piardă actualitatea şi
state, integrării economice la nivel regional, eficienţa. Aceasta oferă noi şanse şi
european sau chiar mondial. În aceste economiilor mici.
condiţii, economia mondială devine una Trebuie să recunoaştem, că marea parte
globală, iar creşterea economică se află într-o a economiei Republicii Moldova continuă să
relaţie de dependenţă cu competitivitatea se bazeze pe utilizarea extensivă a factorilor
internaţională a unei naţiuni. de producţie. Tehnologiile noi se asimilează
În condiţiile incertitudinii unei creşteri preponderent prin importuri şi investiţii
economice durabile a economiei mondiale, străine. Există şi o parte a economiei care
prosperitatea naţiunilor presupune poate fi considerată ca aparţinând unei
competitivitate pe pieţele internaţionale, iar economii bazate pe investiţii apar şi embrionii
problematica competitivităţii economice, unei economii bazate pe inovare, în special în
dobândirii şi menţinerii avantajelor sectorul Tehnologiilor Informaţionale şi
competitive, precum şi folosirii eficiente a Comunicaţionale, domeniu cu un potenţial
factorilor care le determină, devin foarte competitiv ridicat. În acest context, Republica
actuale. Moldova continuă să prezinte serioase
Chiar dacă nu este încă membru al decalaje de competitivitate în raport cu
Uniunii Europene, dar îşi declară ferm dorinţa majoritatea absolută a statelor europene, la
de aderare la această structură Europeană,
29
nivelul tuturor elementelor care determină Cel mai slab punctaj (2,49) a fost
capacitatea competitivă. obţinut la capitolul inovaţiilor, Republica
Forumul Economic Mondial publică Moldova ocupând in acest caz poziţia 129
anual, începând cu anul 1979, Raportul (comparativ cu poziţia 112 din anul 2008) si
Competitivităţii Globale, considerat ca cea situându-se pe ultimul loc in Europa Centrală
mai importantă şi credibilă sursă de date şi de Est. Şi la indicatorii “Sănătate şi
comparabile privind creşterea competitivităţii educaţie de bază” si “Pregătirea tehnologică”
economice, monitorizând politicile publice Republica Moldova are cel mai mic punctaj
promovate, sugerând măsurile necesare a fi dintre ţările din regiune.
luate de către acestea. Mai inferior loc în clasament (121) este
Academia de Studii Economice din obţinut şi la capitolul “Mărimea Pieţei”. Alte
Moldova în calitate de partener naţional al puncte slabe sunt înregistrate şi la capitolele
Forumului Economic Mondial a efectuat “Educaţia superioara şi trainingul” şi
cercetări complementare pentru Raportul “Sofisticarea afacerilor”, unde dintre ţările
Global al Competitivităţii 2010-2011. Acest UE numai Bulgaria se află pe o poziţie mai
raport contribuie la identificarea avantajelor şi inferioară.
dezavantajelor structurale ale economiilor În schimb, Republica Moldova
lumii şi ajută la identificarea modalităţilor de devansează ţări precum Grecia, Portugalia sau
depăşire a acestora. Raportul se bazează pe Italia, situându-se pe locul 75 din punctul de
date statistice din 2009 şi pe sondajul vedere al stabilităţii macroeconomice, însă
complex efectuat în primăvara anului 2010 în este depăşită de Bulgaria (locul 45). Unul
toate ţările participante. dintre cele mai bune punctaje a fost primit
În clasamentul general al Raportului pentru gradul de sofisticare a pieţei
2010–2011 Elveţia ocupa primul loc, financiare, locul 56 pe care se află Republica
devansând Suedia (locul 2), Singapore (locul Moldova o poziţionează deasupra unor ţări
3) şi tradiţionala premiantă la ediţiile precum Grecia, Italia sau Letonia. Cel mai
precedente, Statele Unite ale Americii, care inferior loc in clasament (121) este obţinut şi
este pe locul al patrulea. De altfel, economiile la capitolul “Mărimea Pietei”,
cele mai dezvoltate s-au clasat şi în acest an Însă Republica Moldova pierde puncte
pe primele 10 poziţii: Germania (locul 5), în ceea ce priveşte infrastructura (locul 92),
Japonia (locul 6), Finlanda (locul 7), Olanda instituţiile publice (locul 102), eficienţa pieţei
(locul 8), Danemarca (locul 9), Canada (locul bunurilor (locul 104), gradul de sofisticare a
10) pieţei financiare (locul 103), sofisticarea
În cadrul raportului 2010-2011 businessului (locul 113) şi inovaţiile (locul
Republica Moldova ocupă poziţia 94 din 139 129).
de ţări, în creştere cu o poziţie faţă de anul În prezent indicele competitivităţii
2008. Îmbunătăţirea la nivelul punctajului globale este considerat drept indicator extrem
obţinut este însă nesemnificativă – 3,86 fata de important de investitorii internaţionali şi
de 3,75 (pe o scara de la 1 - cel mai slab, la 7 serveşte drept ghid care le influenţează
- cel mai bun). Motivele acestei rămâneri în deciziile referitor la investiţiile preconizate. In
urmă pot fi găsite la nivelul tuturor consecinţă, ţările care doresc să atragă mai
elementelor care determină capacitatea multe investiţii străine directe trebuie să facă
competitivă a unei naţiuni. eforturi suplimentare în vederea creării unui
Totuşi, faţă de anul 2008, în care mediu concurenţial, care sa stimuleze
Republica Moldova se afla pe penultimul loc investiţiile străine directe.
din Europa Centrală şi de Est, anul acesta în În final putem concluziona, că în situaţia
context regional, dintre ţările est-europene cel în care pentru Republica Moldova (dar şi
puţin Serbia, Bosnia şi Herţegovina sunt mai pentru România) creşterea competitivităţii
puternic afectate de criză globală decât economice reprezintă o prioritate, obiectivul
Republica Moldova, înregistrând poziţii mai de dezvoltare a unei economii inovative
modeste. trebuie să fie la fel unul prioritar. Cu atât
mai mult cu cât decalajul cel mai mare al
30
Republicii Moldova în raport cu alte state se

manifestă în primul rând în ceea ce priveşte
inovarea şi cercetarea-dezvoltarea, domeniul
societăţii informaţionale. În acest context,
pentru a fi competitivă, o economie trebuie să
se bazeze pe populaţie educată şi calificată,
infrastructură informaţională dezvoltată, un
sistem inovativ eficient şi un sistem economic
şi instituţional care să susţină ceea ce a fost
indicat mai sus.
31
FACETS OF ECONOMIC PROTECTIONISM IN KNOWLEDGE SOCIETY.

AN EPISTEMOLOGICAL ANALYSIS
PhD Research fellow III.
Iaşi Branch of the Romanian Academy
Postdoctoral Grant Recipient POSDRU ID 56815
Iasi, Romania, hallalina@yahoo.com
Abstract: We wish to outline, in our approach, the main features of the economic protectionism in this new stage of
development characterized by knowledge. Debates over protectionism are vast and complex. Given that, since the
beginning of the 18th century, with the first physiocratic ideas, liberalization has benefited from an intense lobby,
protectionism has lost ground from the theoretical, but not from the practical point of view. At the beginning of the 21st
century, when the world and the environment have suffered deep modifications, under the impact of globalization and
knowledge, protectionism is, on the one hand, more and more censured, and on the other hand it still has a lot of
supporters, especially from among the developing countries. The emerging countries ended by regarding protectionism
as the solution for them to leave the shadow where they were lying following the multilateral liberalization, whose
measures seemed to support the developed countries, which, in their turn, continue to practice protectionism, both in a
direct and an indirect form.
Over this paper, on the basis of an epistemological analysis, we will present economic protectionism, its better
and worse consequences, framing it in what seems to become the knowledge society. Does this new stage of economic
and social evolution accept the idea of protectionism at the national level, or are the world states willing to open
themselves, from an economic and social point of view, regardless of the group of development they are part of, in
order to benefit from the multiple advantages that knowledge offers, assuming all risks pertaining to liberalization?
Keywords: growth, development, protectionism, knowledge society
JEL Classification: F10, F13, F16, F43, O24
ACKNOWLEDGEMENT: This paper was made within The Knowledge Based Society Project
supported by the Sectoral Operational Programme Human Resources Development (SOP HRD), financed
from the European Social Fund and by the Romanian Government under the contract number POSDRU ID
56815
Globalization asks for liberalization, but

Introduction the spreading of knowledge remains
conditioned by the national, economic, social
The purpose of this paper is to show, and cultural interests. Humankind is not ready
from an epistemological perspective, that to renounce protectionism, as we can see from
protectionism is a reality in a knowledge the measures of economic policy taken after
based society. After having entered, in the the end of 2008 (beginning of the world
new millennium, a new phase in the evolution economic recession) by most of the world
of humankind, we must regard information, states, starting with the developed ones,
and knowledge in this case, as the decisive adepts of the economic liberalization.
factor for the economic, social, cultural and The knowledge society will imply a
life-standard homogenization. The mixture of measures of liberalization and
domination of knowledge is not the same as economic protectionism, the balance turning
globalization. Knowledge is accepted among according to the economic circumstance. In
the primary factors of production and plays a the periods of sustained economic growth,
more and more important role in the liberalization will predominate, in the
economic and social evolution, and this is the recession ones, protectionism will.
very reason why the countries who benefit
from this resource will try to preserve it
through protectionist measures, just like those
who do not have it will try to get it through
measures of liberalization.
From the traditional society to the of the faster and faster progress. The euphoria
knowledge society seized all the world states, from the industrial
to the less developed ones, aspiring to the
Humankind is now, at the beginning of status of the former; yet, numerous other
a new millennium, on a new stage of aspects were ignored, which proved to be,
evolution, characterized by knowledge. Thus, over time, less pleasant, as well as the price
from the traditional society, transiting the that humankind had to pay for its wealth, like
industrial society, we have reached the pollution, the diminution of resources, the
knowledge one. increasing economic and social gaps. Still,
The traditional society is described as humankind chose the path of progress and
the society of the beginnings to the first innovation, but it entered, almost
industrial revolution. Alvin Toffler calls it the imperceptibly, a new phase, that of the third
civilization of the first wave (Toffler Alvin, wave (Toffler Alvin, 1983), as Alvin Toffler
1983), a civilization preoccupied by farming, called it and which we are inclined to
fishing, hunting, where the land was the main characterize as a knowledge one.
factor of production, the economy was Gradually, the activities specific to the
decentralized, the division of labour was tertiary sector have become predominant
simple, and at a social level, the macro-family ones, just like the progress in the fields of
dominated, as children, parents, uncles, aunts, communication and technology, and at the
everybody was living together. basis of any activity lies a bigger and bigger
Two conditions were necessary to allow volume of information and knowledge
the industrial society start its rule: the (Balloni A.J., 2010).
complex division of labour and private Entering the knowledge society has not
property. Once these two were accomplished, been a homogenous process. If the
the motivation of innovation was there. The industrialized countries have entered this
steam engine or locomotive were among the knowledge stage for a few decades now, the
first innovations that revolutionized the developing ones are still making efforts of
economy and society. Step by step, many industrialization. In spite of the heterogeneity,
other technical, organizing and social the tendency towards an anti-economic
discoveries emerged. From the small society, where knowledge is both the main
manufactory to the great industry everything factor of production and an economic and
has changed. social product, is obvious.
The world entered the period of the Progress has not reached its limits, as,
civilization of the second wave (Toffler Alvin, superficially, we might have thought. It
1983), the industrial one. The economic manifests differently. Under the avalanche of
activities started to be dominated by the law changes, we start to rethink paradigms, to
of supply and demand, to lie at their basis confer them a different dimension, much
private property and the motivation of profit, better adapted to reality.
production started to be standardized and In such a context, we are naturally
competition started to be the basis of socio- asking the following question: in the
economic effectiveness. knowledge society, can protectionism be
Standardization did not confine itself to found and justified? I will try to answer this
economy, but went deeply into society. question in the following, through an
Education became standardized, like a epistemological analysis of the process and of
consequence of the standardization of the associated inconveniences and benefits.
production, family was significantly
diminished, being generally formed by Protectionism in the knowledge societ –
children and parent, labour grew more and inconveniences and benefits
more mobile. The changes at the economic
and social levels attracted modifications at the Capitalism based on the free market was
level of mentalities and paradigms. The founded by Adam Smith. In his fundamental
industrial society placed itself under the aegis book, The Wealth of Nations, (1776), Smith
33
described the advantages of liberalization for could become reality only if protectionism is
the British economy, which was passing maintained at different extents and forms.
through deep changes, because mercantilism In the developing countries, access to
and the increasing intervention of the State in knowledge is sometimes hindered by the lack
the economy are not but measures that of a proper infrastructure or by a low level of
disadvantage prosperity (Smith Adam, 1776). adult education. The improvement of the
After a period when liberalization informational and technological structure and
gained enough supporters, it showed its limits the rise of the standard of culture and
as well. The economic recessions, especially civilization are slow processes, which
the one occurred in the 1929-1933 period, and contribute in the economic and social
the two oil shocks, led to a return, especially development, through liberalization and
in Europe, towards protectionism. After protectionism as well.
World War II, in fact, the Asian and the It is true that protectionism confines the
European states imposed protectionist access to knowledge. The producers and the
measures before accepting a gradual consumers, in the context of limitations on
economic openness. exchanges, do not have access to goods,
On the one hand, liberalization offers services, innovations and knowledge
everyone access to goods of maximal produced outside.
importance, like for instance water, drugs, Presently, knowledge becomes a central
food. On the other hand, too much element of the economic and social life.
protectionism confines access to foreign Progress will stand on knowledge. The
direct innovations and investments, it does minimisation of costs, the improvement of
not stimulate them, turning thus into the quality, production and productivity will
shortest way to mediocrity and limitation, depend on knowledge.
ignoring the people’s elementary needs as The world market is the main source of
well. Hence the question: liberalization or technology, raw materials, labour, knowledge,
protectionism? and it would be unnatural for each economy
The development policy applied in the not to exploit the opportunity to get, at low
1980s, consisting in the substitution of prices, what it needs, by economic openness.
import, implied high tariffs as well as Protectionism is not necessarily bad,
subsidies for the priority industrial branches, just like liberalization is not necessarily good.
while the foreign investors were asked to hire Both processes imply risks, but they also
domestic labour, to use domestic raw carry a significantly positive charge. A
materials and reinvest profit in the domestic tendency took root, to see only the worse
economy as well. parts of protectionism and the best ones of
The knowledge society, as we can see it liberalization.
today, is not very clearly delimitated from the Protectionism supposes a group of
industrial one (Evers H.D., 2003); this entitles measures of economic policy that include the
us to think that we will be the witnesses, for a imposition of barriers for import or export
long time, of a simultaneous presence and meant to protect domestic economy from the
action of liberalization and protectionism. The external competition; it can ensure the
explanation is simple. The knowledge society prosperity of a country and of a population
is not similar to the perfectly globalized through what it can achieve by itself (Haller
society, deprived of barriers in the way of the A.P., 2009). For a economy to register
circulation of goods, services, capitals, people economic growth through its own forces, the
and information. The development of the national industry must be protected from the
knowledge society does not imply the loss of external competition.
national and cultural identity, but the desire to Protectionism is thought to be the most
ensure the population a standard of life as effective method to save local activities.
high as possible, and to reduce gaps in Theoretically, the imposition of measures that
relation to the developed states. Such wishes limit the access of foreign companies on the
domestic market is sufficient for the national
34
producers to continue their activities products, as a result of the increasing of the

untroubled and to prosper. Yet, the situation liberalization rate. Through protectionist
is not as simple as that. Autarchy does not measures, the import of products is relatively
help. Only certain forms of protectionism are prohibited, and the domestic producers are
favourable to economy, and only in certain stimulated to innovate and bring on the
moments. market competitive goods and services,
Usually, domestic protectionism especially from the category of the high
justifies the external one. Up to a point in the technology ones.
process of economic development, It is thought that one of the main
protectionism is beneficial and liberalization purposes of protectionism is to increase profit
is damaging. Many of the developed countries for the producers of the protected branches
built their prosperity through protectionism, because, by liberalization, the market would
especially under its indirect form, so that all be invaded by goods and services of foreign
states that want to progress must adopt this origin, made with cheap labour, that will
policy (George Henry, 1949). compete the local ones. This assertion is not
The purpose of protectionism is to necessarily true, as high prices are not always
diminish import and not export. Even in the due to the highly paid labour, and the low cost
periods when protectionism is very high, of labour does not automatically imply cheap
exports are regarded with indulgence and it is production. Domestic production can be of
considered that the country that gets a surplus higher quality compared to the imported one,
balance of trade (it exports more than it and a certain degree of protectionism helps
imports), has effective trade exchanges. conserving it, employment, innovations,
Starting from this simple premise, one incomes and prosperity in domestic economy.
can justify the fact that each country is The protection of domestic economy has
interested in selling abroad more than buying, effects upon the labour market as well, that is
and the states inclined to protectionism are on employment and salaries on the domestic
not an exception. The protectionist states need market.
money too, for the economy to function. In the developed countries, by
The idea took root that the economies maintaining salaries at a high level by means
that mainly developed the primary sector are of protectionism, the quality of labour,
poor, while the economies with a developed demand, production and export will be
secondary and/or tertiary sector are rich. The improved. As the value of export rises, the
more progress an economy makes in the capacity to cover the value of import rises
secondary and tertiary sectors, the more easily too.
it will be able to change its status by passing Under circumstances of economic
to a higher group of development. Yet, few of liberalization, the tendency to equalize
the emerging countries manage to get such a salaries in the economies of the commercial
result (without implying that the economy is partners could appear, usually in the direction
deprived of competitive products). The reason of reducing payment in the developed
why the emerging countries do not make real countries under the impact of competition
efforts to stimulate the highly performance from the labour market. This tendency is
industry is that they can acquire from the manifest in certain branches, not in the whole
external markets anything they need at economy, hence the necessity of a selective
accessible prices, due to the advanced process kind of protectionism. The competition on the
of economic liberalization. Any economy can labour market leads to the equalization of
enjoy the knowledge and innovations of other salaries with significant differences according
states without many impediments. to the activities. Protectionism comes thus to
Protectionism comes to counterbalance this protect economy and not labour. The
situation, imposing a tendency of preservation elimination of protectionist measures
of the low level of economic and social diminishes the number of work places, a not
development and growth in the developing very happy effect for the developing
countries, due to the access to other countries’ countries, even if it is manifested on a short
35
run and in sectors where the developed On the short run, the advantages of the
countries have already specialized. two processes are not tangible, not at a
Generally, there is a tendency to protect macro-economic nor at a global level, as
the ineffective branches or this situation can attention is mostly oriented towards the
be reached following measures of protection of local activities from foreign
protectionist nature applied at a too high competition.
level. Although work places are preserved by The limitation of the access of
protectionism, as long as producers do not competition on the domestic market would
have access to raw materials from the external theoretically be a decision that will eventually
markets, production is diminished and will stimulate economy, but things are not as
oblige the exporters to trade their production simple as that, in full process of globalization
on the internal market at low prices, dominated by knowledge (the population is
sometimes under the costs, a situation that, if not willing to pay higher prices for local
manifest on the long run, will eliminate them products, knowing that cheaper substitutes
from the market. Another following risk is can be found on the foreign markets; we have
that of overproduction, accompanied, in the no certitude that the economics are dominated
happiest case, by the diminution of profits and by patriotism). Extreme protectionism leads
the removing of non-competitive companies to trade wars, out of which no one gains
from the market, and in the most unfortunate anything, and the activities in the developing
case, by recessions like that of 1929-1933 (the states are seriously affected; the only
Great Depression had, as main cause, an acceptable variant is the golden mean: free
overproduction crisis). trade and moderate protectionism. as for free
Historically speaking, all developed trade, this must not only be correct, but
countries protected their young branches and, mutually advantageous for the partners.
in spite of that, over the last decades, they We cannot deny that protectionism, as
have exerted big pressures in an almost long as it is not exaggerated, is beneficial, but
aggressive way on the developing ones to in its extreme forms it has less fortunate
reduce commercial barriers before their consequences: the ineffective allotment of
economies would be ready to enter the global resources at the national level, high costs,
market and to compete with the producers lower production and productivity.
from the industrialized countries. In spite of Protectionism beyond a tolerable level
all the support that liberalization enjoys, represents a barrier in the way of free trade,
countries like USA and the western European which, due to competition, allows the
ones prospered through protectionism and prevalent displaying of effective activities.
will not renounce these practices, even if In spite of all its disadvantages, we must
there is an intense lobby for liberalization in acknowledge its pros: employment
all of its forms. The failure of negotiations at opportunities, preservation of resources and
Doha clearly show that there is divergence in factors of production in domestic economy,
the case of the developed countries (they capitalization of production and diminution of
sustain liberalization, but increase the level of competition, etc.
protectionism) and a conviction with respect
to the injury of interests in the case of the References:
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Reflections on Knowledge Society and
favour them, on the contrary). Sociotechnical Systems, in The International
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[2]. Evers H.D., (2003), Knowledge Society and
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Conference ,,Globalization, Culture and
debates referring to liberalization and Inequalities, Aug., Malaysia.
protectionism there is a tendency to adopt [3]. George Henry, 1949, Protection or Free Trade.
extreme positions: pro or contra. An Examination of the Tariff Question, With
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Especial Regard to the Interests of Labor, New

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37
EPISTEMOLOGICAL APPROACH OF ECONOMIC LIBERALIZATION

DETERMINANTS IN THE KNOWLEDGE SOCIETY
PhD Research fellow III
Iaşi Branch of the Romanian Academy
Postdoctoral Grant Recipient POSDRU ID 56815
Iasi, Romania, hallalina@yahoo.com
Abstract: Liberalization is a process that generates economic and social changes, both at a quantitative and a
qualitative level, leading to cumulative and durable transformations. The process of liberalization has had different
manifestations according to the characteristics and requests of each period apart. The general tendency, since the
mercantilist period, is that of increasing the rate of liberalization, most of the world states seeing in this process the
solution for economic and social prosperity, and hence for development.
The current stage of development characterized by knowledge grants liberalization the status of essential factor
of socio-economic equilibrium; that is why it is followed by both the macro-economic policies of each country apart
and the regional and global ones. The economic growth and development are conditioned by the application of
coherent measures of economic policy, whose action should aim at a wide range of fields, sectors and processes, among
which one can also find that of economic liberalization, a premise and at the same time a result of the dynamics of
knowledge.
Given the importance of liberalization, we wish to present, in our approach, from an epistemological point of
view, the main determinants of this process, especially those of quantitative nature, with no pretension of seizing them
in all their complexity and scope.
Economic liberalization, a main factor of growth and development in the knowledge society, is in its turn
influenced by a series of quantitative and qualitative determinants, with a direct and indirect action, whose effects can
be felt in the whole economic and social apparatus; this motivates us to seize and analyse them in our theoretical
dissertation.
Keywords: growth, development, economic liberalization, liberalization's determinants (factors), knowledge society
JEL Classification: F10, F13, F16, F43, O24
Acknowledgement
This paper was made within The Knowledge Based Society Project supported by the Sectoral
Operational Programme Human Resources Development (SOP HRD), financed from the European Social
Fund and by the Romanian Government under the contract number POSDRU ID 56815
liberalization. Subsequently, as the process

Introduction proved its applicative effectiveness, it was
more and more frequently approached in the
Liberalization is one of the economic theoretical discourses, with a view to finding
processes that have been intensely theorized the best practical modalities, so that the world
since the classical period, in particular. countries would gain out of correct, mutually
In An Inquire into the Nature and advantageous exchanges.
Causes of the Wealth of Nations, Adam Smith Liberalization is a process whose
abandons the mercantilist tradition arguing complexity tends to rise over time, because of
that free trade represents the best policy a the constraints it is submitted, among other
country can apply (Smith Adam, 1992). causes: every country’s wish to preserve its
Subsequently, David Ricardo develops resources (i.e. the limited natural resources,
Adam Smith’s theory and reaches a theory as the raw materials, labour, knowledge, capital)
simple as genial: the comparative advantage and to defend its national interests
of costs stimulate the trade between countries, (preservation of employment and of the
on the condition that the private companies standard of life, the interdiction for the
and capitals should be mobile (Ricardo foreign products, similar to those already
David, 2001). existing in the national economy, to enter the
Adam Smith and David Ricardo were market, ensuring safe incomes for both the
the pioneers of the theories regarding
population and the State budget, etc.); the importance cannot be minimized,
ineffective utilization of resources; the hierarchized or easily quantified.
excessive Government intervention; certain In order to analyse the main
cultural and institutional models that do determinants of the economic liberalization, I
nothing else but render more difficult the divided them into two categories: quantitative
process evolution, etc. and qualitative ones.
By entering a new stage of evolution, We must state that the economic
that of the knowledge society, new ways to liberalization is one of the most important
progress are opened, and liberalization is factors of economic growth and development,
allowed to manifest itself as a main factor of so that most of the elements that lie at the
economic-social growth and development, in basis of growth and development influence, to
a period marked by deep changes in all life a smaller or greater extent, liberalization.
fields, especially the economic, social and
informational ones. Quantitative determinants of economic
The knowledge society is characterized liberalization in the knowledge society
by a dynamism that leads to deep, cumulative
modifications, especially in the social and the In the category of quantitative
mental spheres. determinants of liberalization, we will briefly
In the present paper, we wish to seize, analyse: the effective capitalization of the raw
in their epistemological form, the main materials and resources, the technological and
determinants of the process of liberalization. informational development, direct foreign
Over time, numerous controversies took investment, commerce, cost reduction.
place, with respect to the factors that
influence economic liberalization. Effective capitalization of raw materials
The volume, quality and intensity of the and resources
human activities create the favourable
framework for liberalization, a process first of From a country’s external economic
all motivated by the necessity to obtain and relations, it is necessary to eliminate all the
capitalize knowledge and the result of inadequate operations, ensuring, at the same
scientific research all over the world. time, the increasing of the effectiveness of
Knowledge becomes a resource, as important these relations under all aspects – economic,
as necessary. Each country is interested in ecological and social ones. Liberalization,
holding, acquiring and benefiting from facilitating the access to the newest
everything that can help it progress, knowledge, innovations and technologies,
effectively use its resources, raise the level of allows the increasing of effectiveness,
productivity, the population’s and the State’s productivity, profitableness and production.
incomes, raise, in fact, to a higher level the This implies the rational capitalization
standard of life, as a basis of personal of the available natural resources and, on this
development and stimulant of creativity, of basis, a durable economic development. In
productivity, of the change of mentalities and this direction, the reduction of specific
way of life. consumption of energy and raw materials
became necessary in order to avoid the waste
The main determinants of economic of natural resources that gravely affect the
liberalization in the knowledge society performance of economic activities.
Any human activity is a resource eater
The main determinants of the process of and an effect producer. Economic and social
economic liberalization varied according to development relied, for a long time, on the
the reality of each period. Being a much too conception that humankind has at its disposal
complex process, liberalization is not a mono- unlimited amounts of resources. The shocks
causal one, but we actually speak about a produced by the energetic and raw material
plurality of determinant factors whose crises, as well as the obvious degradation of
the natural environment because of the
39
irrational exploitation led to a more and more activity abroad, the development of
realistic approach of the issues related to the commercial exchanges, the transfer of the
real size of the resources available at the level results of scientific research, of persons and
of the whole world and of each state apart. capitals between countries, the reduction of
The protection of reserves and the most poverty and illiteracy, the durable
rational utilization of resources impose a development of humankind, etc.
higher role of the criteria of effectiveness in For the above effects to be fulfilled, the
the economic decision-making process. In increasing of the extent of economic
other words, by increasing the extent of liberalization is necessary, because the
economic liberalization, each country of the transfer between countries would not be
world gets the possession of information, possible otherwise.
innovations and high technologies that it Liberalization allows an unprecedented
needs in order to capitalize the resources and rise of the speed of information transmission.
raw materials as effectively as possible. The economic and technological expansion, a
result of the economic liberalization,
Technological and informational interconnects the world regions into a
development network called global economy and outlines a
new type of society that is based upon
The traditional production factors knowledge.
(labour, land, capital) continue to have a Watson, Crawford and Farley
substantial role in the economic growth and underline the major importance of
development, but they became secondary information as a factor of production for the
factors. They can be easily obtained if there is phenomenon of development. The
the necessary science or knowledge. Science information generates an effect of
is an instrument, a means to get social and dynamization and shortening of the time
economic results (Druker P., 1994), and necessary to register an economic leap, due to
culture comes to support, like a pillar, the the reduced costs of information
other components. multiplication. Moreover, these are the ones
Simon Ramo asserted that “the safest that lead to gaps in the development of
way to improve the standard of life of the different countries, especially of the
nation is to excel from the technological point developing ones, because here intervenes
of view… Technology and especially high each nation’s capacity to administer the new
technology is the one that can be used to information, as well as the possibility to
increase the nation’s resources, to produce access it, while liberalization proves to be the
richness that would not exist without using it; best method in this direction (Watson R. et
this is an instrument capable to multiply al., 2003).
effectiveness and, consequently, the value of The increase of the degree of
time and labour; technology is the one that economic liberalization allows the
facilitate the production of more and more generalization of the effective technologies
competitive goods and services to meet our that are directly pertaining to computerization
needs with little effort and by saving the so and knowledge and offer the economy and the
valuable natural resources” (Ramo S., 1994). society a new configuration. Each country’s
The development of modern science, success at an international level will be
techniques and technologies impose deep determined by the impetus of the
structural transformations and the adoption of technological innovation or by the way in
adequate solutions to maximize effectiveness which the latter is acquired, as a modality to
at the national level, with positive benefit from the newest economic
consequences at the level of productivity. The opportunities, at a higher standard of life.
effectiveness of the human, material,
financial, scientific and innovative potential
of each country generates, according to the
case: the widening of the space of productive
40
Direct foreign investments Trade
In the group of factors on which the Trade was and will be the activity that
degree of economic liberalization depends, an achieved, over time, the tightest relations
important place is occupied by the between countries and their basic support.
investments, especially the direct foreign “International trade extends and deepens
ones. There is no economic, classical or where and if there are conditions for the
modern, macro-model where investments do manifestation of technical progress” (Popa I.,
not appear. These are the totality of the Filip R., 1999), that is, where there is
expenses made to buy goods, capital or to knowledge.
increase or preserve the capital stock and they The defenders of the trade liberalization
are regarded as one of the most important state that this process leads to the increment
stimuli of any economic activity. of wealth for all the participants to exchanges,
The role of investments is particularly to economic development and growth.
complex, as they influence the property The international experience shows that
structures, the economic ones, on branches the countries’ wealth depends not only on the
and sub-branches, the technological ones, the quantity of goods they produce, but on the
employment ones, with social direct and extent to which they process the raw materials
indirect consequences, influencing the degree that lie at their basis, and the extent of
of liberalization, the rhythm of economic procession depends on the science and
growth and development. The bigger the flux technology incorporated in the products, that
of direct foreign investments, the greater the is, on knowledge; hence the interest in
degree of economic liberalization, as the obtaining, by free trade, the most competitive
activity of the foreign investors is complex, technologies and the necessary knowledge.
usually implying exchanges between states. John Stuart Mill said that “the opening
The investments generally represent the of foreign trade… might usher in an industrial
material basis of socio-economic revolution in a country whose resources were
development of any country, and the direct previously undeveloped” (Mill J.S., 2003)
foreign ones have become the most important because economic development and growth is
source of funding for all the world states, obtained under the conditions of a modern
regardless of their level of development, technology that capitalizes, as well as
representing an active factor of development possible, raw materials and power, ensures
and economy adaptation to the requests of the high quality products at low costs.
market and of competitiveness. Investments
generate what is called a propagation effect Reduction of costs
that leads to: the promotion of technical
progress, production rise, the improvement of Within the knowledge society, the world
goods’ quality, and the increment of economies have the possibility to acquire
economic-social effectiveness and the from the foreign market, due to liberalization,
propagation of knowledge, a plurality of the most effective techniques and
positive effects, conditioned by the degree of technologies, that allow the reduction of the
liberalization. production costs, as well as products at lowest
International trade depends on the level prices than the ones on the domestic market.
and structure of investments. The export
implies production which, in its turn, implies Qualitative determinants of economic
the immobilization of material and human liberalization in the knowledge society
resources, that is, investments. Consequently,
here arises the problem of estimating the In the group of qualitative factors of the
effectiveness of export, in a phase that would economic liberalization, we will briefly
allow the renunciation of less convenient or expose: competition, economic integration
unfavourable investment alternatives (Dăianu and globalization, government intervention.
D., 1992).
41
Competition helped many states develop in a much faster

rhythm than they could have done it in an
Competition is a dynamic factor of autarchic way.
progress, effectiveness, balance and wealth. Liberalization leads to the increment of
On the markets where competition takes place interdependency between countries and
under normal conditions, each producer is regions and facilitate the easy transmission of
interested in gaining an advantageous position knowledge, technologies, products, hence of
in relation to the other competitors. The progress and consolidation of the knowledge
manifestation of competition is the expression society.
of the degree of economic development of
growth, a reason why its intensity is different Government intervention
from one stage to the other, from one field to
the other, according to the supply and demand As long as there will be national
rate, generally reflecting the extent to which economic interests, there will be national
society is able to stimulate the creativity of states too (Cucu D. et al., 1994). The
economic agents, ensuring the normal participation of the State in the economic
functionality of the economic system. The activity has multiple motivations, of
competition offers the possibility to choose economic, social, political and juridical nature
among several alternatives the most (Angelescu C., Stănescu I., 1999). In the
convenient one. Thus, competition is tightly modern economies, the State intervenes under
related to the freedom to choose, and different forms to recover dysfunctions
liberalization does nothing else but offer emerged in the mechanisms of the market.
alternatives to countries and their populations. The State’s role in the economic life of each
The high-tech communication, the country is permanently changing, according
reduced costs of transportation and free trade, to its economic and social development, as
with no restriction or few restrictions, make well as to the international context.
the whole world melt into a unique market. The State’s intervention can have both
This generates global competition on all negative effects, when it is done with a view
markets. Actually, the knowledge society to increasing the degree of protectionism, and
imposes liberalization, competition and positive effects, when measures meant to
effectiveness. stimulate the exchanges between countries are
made (Haller A.P., 2008). The results of
Economic integration and globalization multilateral negotiations are the proof that
most of the world states understood the
The economic integration and necessity of economic liberalization in a
globalization are tightly correlated with knowledge society where progress is
liberalization, the latter being a premise and a conditioned by the utilization of competitive
consequence of the two former processes. We technologies and techniques, resulted from
cannot talk about integration or globalization, the research and innovation activity, and by
but in the context of the increment of the the effort to increase competitiveness.
liberalization rate.
Economic integration can take different Conclusions
forms, implying certain types of economic
cooperation in fields like: production, trade, The knowledge society is mainly based
capital and labour mobility, fiscal and upon information, high technology and
monetary policies, social security, durable modern techniques of production, whose
development, coordination of investment applicability is wanted to be transposed in the
plans, etc., with deep implications in the increment of the population’s standard of life,
countries’ economies and in the population’s in the reduction of development gaps between
way of life. The reduction of obstacles in the states and regions and in the changing of
way of foreign trade, as a result or as a mentalities and conducts. For this finality to
premise of integration and globalization, be reached, a special attention must be paid to
42
the fluidization of the process of economic

liberalization, as this is the one that connects
markets and people.
In the present paper we briefly reviewed
part of the factors that determine the process
of economic liberalization, but which could
just as well be causes of it; we do not claim to
have presented them in the whole complexity
of their manifestation and scope, and this is
also due to the dynamics of the changes
occurring in relatively short periods of time.
To conclude, we could say that in the
knowledge society interdependencies are
manifest on a wide scale, and they need the
liberalization of processes regardless of their
nature: economic, social, scientific or cultural
one.
References:
[1]. Angelescu C., Stănescu I., 1999, Economie

politică – elemente fundamentale, Editura
Oscar Print, Bucureşti;
[2]. Cucu D., Ailenei D., Iorgache S., Jula N., 1994,
Economie Politică – manual universitar şi
culegere de probleme, Universitarea
Politehnică, Bucureşti;
[3]. Dăianu D., 1992, Funcţionarea economiei şi
echilibrul extern, Editura Academiei Române,
Bucureşti;
[4]. Drucker P., 1994, Societatea bazată pe ştiinţă,
Sinteza, no. 100;
[5]. Haller A.P., 2008, Exporturile - factor de
dezvoltare şi creştere economică, Editura
Performantica, Iaşi;
[6]. Mill J. S., 2003, Eseuri etice, Editura Plaideia,
Bucureşti;
[7]. Popa I., Filip R., 1999, Management
internaţional, Bucureşti;
[8]. Ramo S., 1996, Oeconomia, Manila Press;
[9]. Ricardo David, 2001, Principiile de economie
politică şi de impunere, Editura Antet XX
Press, Bucureşti
[10]. Smith Adam, 1992, Avuţia naţiunilor. Cercetare
asupra naturii şi cauzelor ei, Editura
Universitas, Chişinău, vol. I, II
[11]. Watson R., Cramford Michael, Farley Sara,
2003, Strategic approaches to science and
technology in development, World Bank
Working Paper 3026, April,
http://econ.worldbank.org
43
THE IMPACT OF GLOBAL CRISIS ON THE SOCIO-ECONOMIC DISPARITIES AND

REGIONAL DEVELOPMENT IN THE EUROPEAN UNION
Mihaela Dana Ignat

mihaela_ignat79@yhoo.com
Camelia Nicoleta Morariu
Alexandru Ioan Cuza University, Iaşi, Romania,
Department of Sociology and Social Work
camnicomorariu@yahoo.com
Abstract: At the beginning of the integration process, the regional disparities between the six founding members
were not so great as they become later in a Europe with nine, ten, twelve, fifteen, twenty-five and then twenty-seven
states. The six founding members formed a fairly homogeneous economic group, with similar levels of development,
but successive enlargements increased regional disparities, both in terms of income, productivity and employment,
quality of infrastructure, etc. The causes of the existing disparities between countries and regions, both in the past
as in the present, are the structural deficits that affect the key factors of competitiveness: insufficient material and
human resources (infrastructure and skills training), lack of innovative capacity and effective promotion of business
and reduced environmental capital (permanently tainted natural and / or urban environment). The impact of global
crisis on the 271 EU regions was varied, depending on the state of the economy, the initial economic situation of the
regions (of the strengths or weaknesses of a region), their sectorial structure and finally, the reaction of national
and regional authorities.
Keywords: economical and social cohesion, regional development, regional disparities, global financial and
economic crisis, structural fragility, degree of sectorial specialization
JEL Classification Codes Guide: R - Urban, Rural, and Regional Economics
Introduction deterioration characterized by low growth

and high unemployment in a period of rapid
Although the EU is one of the most change.
prosperous and competitive geographic
areas of the world, there are large Regional disparities before and after EU
discrepancies in the levels of development enlargement
between the state members and between the
271 NUTS 2 regions. In the EU, the regional In the '70s and first half of the '80s,
disparities have a clear ”center – periphery” the unemployment and the regional
trait with the poorest regions being situated differences in conexion with it increased in
in the western, southern and eastern suburbs. the Community. It went from 2% in 1970 to
The emergence of such imbalances were over 6% in 1980 to achieve a rate of about
caused by differences between different 11% between 1985-1986 and then to
regions, in terms of economic, social and decrease slightly. The regional differences
geographical conditions. had a maximum in 1986, when were reduced
Thepredominantly intergovernmental from 1989 to 1990 under the effect of a
character of the EU decision-making system decreasing national rate, especially in Great
has always placed under the spotlights the Britain and Spain, where some regions have
differences between countries rather than the experienced a decrease of up to 5% between
divisions inside them. But things are 1985 – 1990 (Buzelay, 1994, 34).[1]
changing as a result of two main elements: However, the inter-regional
the continuous deepening of the European differences recorded in the early 1990s
integration determines realignment effects remain significant, with values from 3% in
on society as a whole and economical 12 regions and exceeding 15% in other 19
44
regions. This result was a consequence of The EU has made its budget an
the fact that, although certain regional rates instrument for promoting economic
have decreased, others increased, especially development in less developed regions of its
in Italy where the rate increased by 5% in territory, but increasing disparities following
the South ((Buzelay, 1994, 35). In 1990, this enlargement underlines the importance of
country recorded the largest regional economic and social cohesion and raises
differences in terms of unemployment, the questions about the most effective way that
South with a large growth in relation to the budget can be used to promote solidarity.
1985 and the North a strong decrease. From 1988 to 2007, the extending has
Meanwhile, in the recent years there increased the EU's population by 50%. In
has been a reduction of the gap, especially in 1988, 4 of the 12 Member States had a GDP
regions where the productivity levels are per capita below 75% of the EU, and after
lower (especially in new Member States). two decades, 10 of the 27 Member States are
Thus, according to the fourth Cohesion in the same situation, and seven of them
Report, the labor productivity, measured in have a GDP per capita below the poorest
terms of GDP per employed person Member State in 1988.
increased between 1995-2004 by 6.5% per Therefore, we can say that from
year in the three Baltic states and some parts 1988 with the introduction of the cohesion
of Poland, while in the most developed policy, the EU has reached an impressive
regions it rose by more than 2% per year (in level of economic and social convergence.
some cases and even less). Almost all At national level, Greece, Spain, Ireland and
regions that recorded the highest Portugal, the main beneficiaries of the
productivity growth rates were located in the cohesion policy in the period 1994-2006 –
new Member States, being the result of have recorded as a group, an impressive
significant restructuring taking place in economic growth, but an unevenly
these countries and the major objective of distributed among them, the gap with the
reducing the gap with the levels in other rest of the EU- 27 knowing, except Portugal,
areas. a significant drop. More specifically, during
Although the development a decade (1995-2005), Greece managed to
disparities between the Member States have reduce the gap with the rest of the EU-27,
recorded a downward trend over time, the the GDP per capita grew from 74% to 88%
inter-regional disparities have survived of EU average. During the same period,
despite various recovery measures adopted Spain and Ireland have come from 91% and
through regional policy. For example, 102% to 102% and 145% of EU average,
according to the first Cohesion Report while on the other hand, Portugal recorded a
(1996), from 1983 to 1993, the benefit of the decrease of GDP per capita from 80% in
richest regions compared with the poorest 1999 to 74% of EU-27 average in 2005.
declined from 3.5 to 3.3 times and the Meanwhile, amid sustained
average for Objective 1 regions increased economic growth, observed in the
from 63.5% in 1988 to 68% in 1996 of EU problematic regions which recorded a
average. Thus, in 1986, the four countries of declined GDP per capita which were the
the Cohesion Report recorded a GDP per main beneficiaries of the cohesion policy for
capita of about 65% of EU average, and 2000-2006, between the EU regions seems
after a decade as a result of sustained to have installed a visible trend towards
economic growth rate, it climbed to 76.5%. convergence. Thus, between 1995-2004, the
Basically, this data suggests that the number of regions with a GDP per capita
convergence process (pretty slow) towards below 75% of the EU decreased from 78 to
the EU average will require more time and 70 and the number of those below 50% of
many efforts. the EU average has dropped from 39-32.
45
Moreover, prior to the enlargement different from those dominant in the

in May 2004, the European Commission formation of the Union and up to the EU-15.
reported stable or increasing differences The EU comprises 27 Member States
within Member States and also a reduction that form a community and a domestic
in disparities across national borders. In the market of nearly half a billion people. The
third Cohesion Report (2004), the last two EU enlargements have led to a
Commission synthesized the existing trends: widening development gaps, to a geographic
at national level, the four cohesion countries realignment of the disparities towards the
continue the catching-up process; at regional East European continent and tensions in the
level, in Eu, the disparities record a process of employment that may increase
decrease; at regional level, within the unemployment.
Member States, the disparities continue to Basically, the last two EU
grow. enlargements have meant the integration of
Without underestimating the positive economies with very different degrees of
effects of the regional policies currently wealth and development, which have an
promoted by the EU, we should note that income per capita significantly lower than
today, the Community is facing the EU-15 and EU-27, ranging between 82-
unprecedented problems regarding the 93% for Cyprus and 33-38% for Bulgaria. In
control of the economic, social and 2007, 13 analyzed countries had a GDP per
territorial cohesion, stemming both from capita under the EU-15 and EU-27 average,
precedent practices, and from the integration out of which 10 countries were below 75%
of new Member States (in 2004 and 2007), of the EU-15 average and 8 countries below
which come with huge regional disparities, the EU-27 average (tabel no.1).
with a mentality and a behaviour totally
Tabel no. 1: Countries below average GDP per capita of EU-15 and EU-27
Disparities in GDP per capita, in comparison with the EU
No.
Country average in 2007 (%)
crt.
under UE-15 under UE-27
1. Spain 92 105
2. Cyprus 82 93
3. Greece 82 93
4. Slovenia 78 89
5. Czech Rep. 70 80
6. Portugal 69 78
7. Estonia 61 69
8. Slovakia 60 68
9 Hungary 55 63
10. Lithuania 52 59
11. Latvia 49 56
12. Polond 48 54
13. Romania 37 42
14. Bulgaria 33 38
Source: own calculations after the Eurostat data,
http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tsieb010
Following recent adherences, the over two and a half times higher than the EU
disparities between the regions in Europe average and about seven times richer than
have increased significantly and on the long Romania (with 42% of the EU average, in
term. The richest Member State, 2007)[2]. At regional level, the difference is
Luxembourg, with a GDP per capita even greater: a region of four recorded a
expressed in standard purchasing power GDP per capita below 75% of average EU-
parity (PPS - purchasing power standards) is 27.
46
According to data from table no.2, last region that has recorded almost double
we see that there are enormous differences the EU average -27.
in development between the poorest and Meanwhile, we can see that the only
richest regions of the EU27, the majority of regions of the New Member States (NMS)
less developed regions are located in new that have been ranked in the top 20 regions
Member States from Central and Eastern with the highest level of GDP per capita
Europe, but also from western regions of the were Prague (Czech Republic) with 172%
Iberic peninsula, southern Italy, Greece (42 800 PPS) and Bratislavsky kraj
(except Athens) and East Germany, while (Slovakia) with 160% (39 900 PPS), placing
the regions with the highest GDP per capita them on the fifth and twelveth position in
are located in southern Britain, southern the ranking..
Germany, northern Belgium, northern Italy, Except other four regions (Cyprus,
Luxembourg, Netherlands, Austria, Ireland Mazowieckie Poland, Malta and Bucharest-
and Scandinavia, and the capital city regions Ilfov in Romania), all other regions of the
Prague, Madrid and Paris. NMS and Croatia and Macedonia (candidate
The contrast between the first 20 and countries for EU) have a GDP per capita in
the last 20 regions is significant (table no. PPS below 75 % of EU-27 average. Nine
2).The regional GDP ranges from 26% poorest regions in the table below were all in
(6400 PPS) of the EU average per capita in Bulgaria and Romania, and a number of
Severozapaden region (Bulgaria) to 334% regions in Poland (5), Romania (2) and
(83 200 PPS) in Great Britain’s capital Hungary (4) completed the group of 20
region, Inner London. The report between regions with minimum GDP per capita.
the two ends of the distribution is therefore From the regions of our country, only
13:1. Luxembourg with 275% (68 500 PPS) Western Bucharest-Ilfov, whose GDP per
and Brussels with 221% (55 000 PPS) are capita in the year 2007 was 92%, 48% of the
located on positions 2 and 3, followed by EU, is not located between the last 20 least
Hamburg (with 47 800 PPS), this being the developed regions of EU-27, the other six
regions are on the last places.
Tabel no. 2: Regional GDP per capita in the EU27 - 2007 figures (in PPS, UE 27 = 100)
The 20 regions with the highest GDP (%) The 20 regions with the lowest GDP (%)
1 Inner London (UK) 334 1 Severozapaden (BG) 26
2 Luxembourg (LU) 275 2 North-East (RO) 27
3 Région de Bruxelles-Capitale (BE) 221 3 Severen tsentralen (BG) 27
4 Hamburg (DE) 192 4 Yuzhen tzentralen (BG) 27
5 Praga (CZ) 172 5 Yugoiztochen (BG) 31
6 Île de France (FR) 169 6 Severoiztochen (BG) 32
7 Southern and Eastern (IE) 166 7 South-West Oltenia (RO) 33
8 Groningen (NL) 165 8 South-East (RO) 34
9 Oberbayern (DE) 165 9 South-Muntenia (RO) 34
10 Stockholm (SE) 165 10 Podkarpackie (PL) 37
11 Wien (AT) 163 11 Lubelskie (PL) 37
12 Bratislavskỷ Kraj (SK) 160 12 Észak-Alföld (HU) 39
13 Bremen (DE) 159 13 Észak-Magyarország (HU) 40
Berkshire, Buckinghamshire and
14 156 14 North-West (RO) 40
Oxfordshire (UK)
15 Darmstadt (DE) 156 15 Podlaskie (PL) 40
16 Utrecht (NL) 155 16 Warmińsko-Mazurskie (PL) 41
17 North Eastern Scotland (UK) 153 17 Dél-Alföld (HU) 42
18 Hovedstaden (DK) 150 18 Swietokrzyskie (PL) 42
19 Noord-Holland (NL) 150 19 Center (RO) 42
20 Åland (FI) 143 20 Dél-Dunántúl (HU) 43
Source: http://epp.eurostat.ec.europa.eu
47
the values from Poland and Croatia, the

Regional distarities within the member available data do not confirm the hypothesis
states that such regional discrepancies are a typical
feature of the new Member States and
In 2007, the most pronounced candidate countries. The data also indicate
regional discrepancies were recorded in that the least dynamic regions in seven
Great Britain, France and Romania. For countries have achieved growth rates above
example, regarding the distribution of GDP the EU average. It is encouraging to note
per capita, the ratio between the maximum that, except Ireland, these were in five NMS.
and minimum was 4,3:1 in the UK, between Our research revealed that the data
the Inner London and West Wales & the on GDP per capita should be interpreted
Valleys regions, while in France the ratio cautiously, because this value is influenced
was 3,5:1 between the Île de France by the daily influx of employees working in
(including Paris) and Guyana (one of a region, but living in another. Thus, the
France's overseas departments), while in relatively high GDP per capita in Inner
Romania it is 3,4:1 between Bucharest-Ilfov London, Luxembourg and Brussels can be
region and Northeast. At the other end of explained, at least in part, by the daily influx
this hierarchy, the most "equitable" of commuters from the neighboring regions
distributions of GDP per capita were or in the case of Luxembourg, from
recorded in Ireland, Slovenia, Denmark, neighboring countries. This effect can vary
Spain, Portugal and Sweden, where the ratio considerably and may reflect not only the
of extreme regional values did not exceed tendency to choose jobs that involve
2:1. The lowest values are in Slovenia, commuting or distances that the employees
which presents a factor of 1.5 and, in Ireland are willing to travel, but also how the
and Sweden, by a factor of 1.6 in each case. regions are defined by NUTS 2 and in
The moderate regional disparities between particular, the distance by which the suburbs
the values of GDP per capita (i.e. factors and outskirts of cities are included in the
below 2 between maximum and minimum same NUTS region. On the other hand, the
values) are found only in the EU-15 plus reverse of the situation is that GDP per
Slovenia and Croatia. capita is lower in regions from which
A more detailed analysis of the commuters come - such as Lüneburg regions
trends within countries between 2001-2006 near Hamburg, Flevoland in the vicinity of
reveals that the economic development of Amsterdam, and several regions of Belgium
the regions can be almost as divergent as (Belgian commuters are moving not only to
that between the regions of different Brussels, but also in Luxembourg).
countries. Thus, the largest discrepancies A comparison of the GDP per capita
occurred in the Netherlands, Slovakia and between the Inner London and Surrey
Britain, with a difference of 30% compared regions, East and West Sussex (south of
to the average GDP per capita in both London, from where many commuters are)
regions with dynamic and slow shows that the GDP per capita was 2.72
development. The countries that have times higher in Inner London. However, in
recorded the lowest inter-regional terms of disposable income, the gap between
differences were Ireland and Slovenia, with the two regions was much lower because the
limits of variation of 0.2 and 4 percentage disposable income figures reflects the place
points and Croatia and Poland, where the of residence of commuters (especially areas
values were approximately 6, respectively 9 around the capital). Thus, the disposable
percentage points. income in Inner London was 24,732 PPS in
In the new Member States and in the 2007, only 1.16 times higher than in Surrey,
EU-15, this divergent regional development East and West Sussex.
was mainly the result of dynamic growth in Our analysis shows that, of the ten
capital regions. However, as illustrated by EU-27 regions where disposable income per
48
capita exceeded the threshold of 20,000 PPS may lead to regional discrepancies, since
in 2007, five (including Inner London) were most affected are the vulnerable regions
located in southeast Britain, four in (Kangasharju and Pekkala, 2004, p.255).
Germany and one in France. Comparing the However, in some countries, the periods of
maximum and minimum levels of income decline can lead to reduced inter-regional
per capita in all regions of the EU-27 show disparities, in particular where the
that the revenue from Inner London and economies of least developed regions are
North-East (Romania) was 6,08:1. This ratio dependent on sectors as public services or
was around 50% lower than in the GDP per agriculture, thus remaining relatively
capita in both regions. unaffected.
The regional disparities, as reflected Unfortunately, in the present there is
by the comparison between the highest and a lack of both qualitative and quantitative
lowest levels of disposable income within centralized data on short and long term
the same country were considerable in regarding the effects of global crisis in the
Greece and Romania. Thus, disposable EU regions in terms of key economic and
income per capita in the capital cities social indicators. However, in what follows,
regions were at least two times higher than we will examine how the regional impact of
in regions with minimum levels of the crisis is conditioned by the initial
disposable income - Ionia Nisia (a group of economic situation of the regions, including
islands off the west coast of Greece, their fragility and degree of sectorial
including Corfu) and North East (Romania). specialization.
Under this criterion, significant regional
disparities were recorded in Italy, Hungary,  Fragility scale of the EU-27
Slovakia and Great Britain, while smaller regions
differences were observed in Austria and An important set of factors that
Slovenia, followed by Ireland, the influence the impact on the economic
Netherlands, Finland and Sweden. development of different regions are their
It is likely that the regional intial strengths and weaknesses. These
divergence tends to maintain. One of the include the size of their domestic market and
basic determinants of the persistent regional the access to larger foreign markets,
disparities in the EU that will continue to be abundant natural resources and material,
present lies in the low labor mobility within human and know-how capital, density of
the EU, which prevents, for example, networks of existing firms and sectors where
reducing unemployment in poor regions they concentrate. At the same time, we
such as Reunion (France) or Extremadura emphasize that the economic situation of a
(Spain). The more or less obvious region is modeled by more general national
reluctance of the Member States towards a factors, such as the extent to which the
centralized and unified regional policy, country (as a whole) was in a robust
involving the transfer of expertise in situation before the start of the crisis, with
regional development at national level sustained economic growth, limited
could be in the future, a source of unemployment, absence of external and
deepening regional disparities. internal imbalances, and a sound
institutional framework.
The impact of global crisis on regional The regional fragility scale can be
development measured through indicators such as GDP
per capita, unemployment rate, employment
In many countries, the periods of rate and population density. Although
economic growth are associated with regional data are not available on other
regional convergence, due to the fact that important indicators at national and regional
business opportunities expand in less level (such as investments, government
developed regions, while severe recessions spendings, consumption and savings rates),
49
the indicators presented in Table no. 3 factors on the regional economy.

reflects, indirectly, the impact of other
Tabel no. 3 Fragility scale of the NUTS 2 regions in the EU, 2008
Number of Number of
Number of NUTS 2 Number of r
Total NUTS 2 regions NUTS 2 regions
regions where the NUTS 2 regions
Member number of with GDP per where
employment rate is with population
State NUTS 2 capita (PPS) unemployment
below the EU density below 30
regions below 75% of rate is above the
average per km2 *
UE* average EU average
Austria 9 0 0 0 0
Belgium 11 0 5 9 0
Bulgaria 6 6 3 5 0
Czech Rep. 8 6 2 2 0
Cyprus 1 0 0 0 0
Danemark 5 0 0 0 0
Estonia 1 1 0 0 0
Finland 5 0 2 1 4
France 25 4 15 21 1
Germany 39 0 18 12 0
Greece 13 7 10 13 0
Ireland 2 0 0 0 0
Italy 21 4 6 20 0
Latvia 1 1 1 0 0
Lithuania 1 1 0 1 0
Luxemburg 1 0 0 1 0
Malta 1 0 0 1 0
UK 37 0 7 4 1
Holland 12 0 0 0 0
Poland 16 16 7 15 0
Portugal 7 4 3 1 1
Romania 8 7 2 7 0
Slovakia 4 3 3 2 0
Slovenia 2 1 0 0 0
Spain 18 1 17 12 4
Sweden 8 0 2 0 4
Hungary 7 6 4 7 0
* This data is from 2007.
Source: authors' calculations based on Eurostat data,
http://epp.eurostat.ec.europa.eu/portal/page/portal/region_cities/regional_statistics/data/main_tables
The global economic crisis, which well as broader factors such as market
began in 2008, has revealed the inherent access and functional institutions.
structural vulnerability of many countries In many countries of Central and
and regions in Europe, regardless of their Eastern Europe (Bulgaria, Romania, Czech
economic and social development. Our Republic, Poland, Slovakia and Hungary)
research suggests that different indicators the regions most affected by the crisis were
may illustrate different aspects of the structurally weak, the recession affecting
structural vulnerability of many countries even the industrialized regions of these
and regions. Thus, the lower levels of GDP countries, with a moderate impact in
per capita in most regions of Central Europe metropolitan regions (European Policy
and a significant number of regions in Centre, 2009).
Greece, Italy and Portugal, reflect lower Also, the impact of recession on less
levels of employment and labor productivity developed regions is evident in richer
in these regions. The productivity levels are countries. For example, in Finland, the
in turn determined by the availability of largest increase in unemployment occurred
material, human and knowledge capital, as in Eastern Finland, which already had the
50
highest unemployment rate and the lowest oriented industry and constructions, while
level of GDP per capita, and in recent other sectors have experienced reductions in
months has recorded an important number of demand in the next step. Specialized regions
dismissings (especially in forestry and paper in a small range of sectors are particularly
sectors). The structurally fragile regions in vulnerable to trade shocks, a key concern in
the north-eastern France (Lorraine, Nord- such regions is that the recession will
Pas de Calais, Picardie, Champagne- permanently reduce the number of firms and
Ardenne, Franche-Compte, Haute- employment in core sectors, leading to a
Normandie) record unemployment in structurally lower level of production and
industry and are therefore strongly affected employment even after the end of the
by declining demand in international market. decline.
In some countries (Finland, In most states there is a relatively
Germany, Italy, Poland, Sweden), there are high degree of regional specialization of the
concerns about longer-term effects of the industry, but we can see that this
crisis on structurally more fragile regions phenomenon is particularly strong in
(Bachtler and Gorzelak, 2009). Even losing Portugal (due to very low levels of
a relatively small number of firms and jobs employment in industry employment in the
in such regions may have significant effects, Algarve and Madeira regions and high levels
particularly if these losses lead to a reduced in the Norte region ), in Finland (in
demand for goods and services from other particular due to the low levels of
local companies. In some countries (e.g. employment in industry in Åland and high
Finland, Germany, Sweden), these fragile levels in Western Finland), in Italy (low
structural regions still suffer from levels in Lazio, Calabria, Sicilia, Sardegna,
demographic decline, especially because of but also Liguria and Valle d'Aosta and high
the outward migration of young people with levels in Marche, Veneto and Lombardy)
higher educational level, and the recession and in Spain (reduced levels in Canarias,
could fuel further this trend. Balearic Islands, Extremadura and Madrid
Other issues relate to the reductions and high levels in Navarre, the Basque
of public spendings, that are being Country and La Rioja).
implemented or proposed, motivated by the Although the crisis has its roots in
need to reduce the high indebtedness of the innovation and internationalization of
public sector, following the financial crisis financial services sector, there aren’t signs
and economic downturn. On the one hand, that the regions, especially the metropolitan
regional and local authorities in structurally ones, specialized in this sector were
fragile regions present a more precarious adversely affected or that the economic
situation of the public finances and are importance of these regions is in decline.
therefore more likely to be affected by Although all regions were affected to a
reductions in central government support to certain extent and considering the fact that
compensate for this fragility. On the other on the long term the impact on them will
hand, the employment in the public sector is probably be different, we believe that the
frequently higher in structurally fragile most powerful impact was felt in structurally
regions, therefore any future reductions of fragile regions and those based on
staff in the public domain can have a major production. Although the last year
impact in such regions. demonstrated the vulnerability to external
shocks of the regions specialized in
 The degree of sectorial production, we believe that such areas
specialization of regions should be consider first in surpassing the
During 2008-2009, some areas were crises with reviving domestic and external
directly affected by early stages of economic demand.
decline, especially financial services, export-
51
These regions are often essential for reserves and so on - gave worrying signs of
overall economic growth at national and deterioration. The standard of living and the
european level. However, for structurally quality of life reflected all the worst in
fragile regions exists the risk that the loss of economy and announced discontent and
jobs and firms leads to lower structural social unrest, difficult to prevent and hard to
levels of employment rate and economic stop.
activity because it is unlikely that other The worst consequences was the
firms would install (or expand) in these rapid spread of the global and europen crisis
regions, even after the resumption of were felt, as expected, in the southern EU.
economic growth. The important role of In countries such as Spain, Portugal and
public transfers and public sector jobs in particularly Greece it has reached high
these regions means that they will be more levels that put pressure on the EU cohesion
vulnerable to future reductions of public and solidarity, not to mention the emerging
spending to reduce the debt accumulated in crisis in the EU countries from Central and
recent years. Eastern Europe.
Seriously shaken by the combined
Conclusions effects of global and european crisis, the
solidarity and Community cohesion have
In over fifty years, the EU has faced survived until now and have proven by
many difficulties and challenges, most of themselves solutions for saving countries,
them regarding internal growth, correlated to primarily those affected in their vital
changes in horizontal-vertical integration functions. Substantial aid flows from the
and had a pronounced economic, center of EU to periphery, coupled with their
institutional, managerial and decision own, and with the help from the IMF, World
making character. There hadn’t been any Bank and other external sources have started
important confrontations from a political or to pay off and have stopped the confusion
actional point of view, which would create and the risk of local and communitary
an imminent danger of stagnation, imbalance.
involution or worse, disintegration of the We wouldn’t be realistic and
EU. rigorous to believe and sustain that the
The global crisis had to come to activation of communitary cohesion and
emphasize the existing difficulties and solidarity is based, exclusively or
create new ones. With such a reality it predominantly on the imperative of saving
wasn’t ever faced, which explaines why it the first countries affected by the crisis; the
was caught unprepared, theoretical and danger of triggering a domino effect has had
political, and reacted hesitantly to the in this case a decisive role, the economic
alarming news from America. The global powers of the Community being decided to
crisis coupled with the european one and the act to defend, to provide shelter from any
impact on economy and political strategy, uncontrollable disturbance coming from
both at the national and Community level countries on the verge of economic, social
was so hard and unexpected, that the panic and political disaster.
delayed the response. Only after the internal The wounds and sufferings caused
and external crisis entered a straight line by the current global crisis have an
came the measures and anticrisis plans. educational part, they prevent any limit
It was already too late because the situations and reenforce the strength and
recession and the crisis was comfortable durability of the communitary cohesion and
installed, the growth was heading towards solidarity. It is clear that the European
zero, the employment had taken a downward Community structures are able to face
path, financial macroeconomic indicators, successfully any challenges and dangers,
monetary, inflation, exchange rate, foreign and was confirmed once again, that's better,
52
safer and more reassuring to be integrated given historical moment, the colossal
into the European Community than to be damages caused by the second world war.
outside it.
It is better, indeed, with one References:
condition, however, deduced from the
impact of global crisis on the EU in general, [1] Bachtler John, Gorzelak Grzegorz, „Reforming
EU Cohesion Policy: A Reappraisal of the
and on the most affected countries, in Performance of the Structural Funds” în Bailey
particular. The condition is that all countries David, De Propis Lisa (Eds.), Industrial and
and in particular the ones with poor and very Regional Policies in an Enlarging EU,
poor performance to manage wisely and Routledge, 2009.
efficiently their own funds and the ones [2] Buzelay Alain, Hannequart, Problématique
régionale et cohesion dans la Communauté
received from the EU, IMF, World Bank Européenne, Bruxelles, 1994, pp. 34-35
and others, otherwise they may be penalized [3] European Commission, Growing Europe,
by loss of economic sovereignty. Large growing regions, The Fourth Progress Report on
budget deficits, incapable to be controled by Cohesion, june 2007, p. 17
governments entail EU monitoring. If that [4] European Commission, Eurostat regional
yearbook 2009, Luxembourg: Office for Official
fails, then follow the procedures of Publications of the European Communities,
insolvency, loss of economic sovereignty 2009, p. 56.
and establishing an external governance [5] Kangasharju Aki, Pekkala Sari, Increasing
exercised by the "Berlin Club", designed to regional disparities in the 1990s: the Finnish
coordinate the economic policy of that state experience, Regional Studies 38, 2004, pp. 255-
267
in order to redress. [6] Landsberg Gerd, Articus Stephan, Thöne
These are other consequences and Michael, Junkernheinrich Martin, Rosenfeld
lessons of the global crisis on the EU and Martin, Deubel Ingolf Deubel, „Kommunen in
Member States, in particular the Euro Area. der Krise”, Wirtschaftsdienst, vol. 90, issue 5,
The toughness and determination that seem 2010, p. 283-308.
[7] Tsoukalis Loukas, Ce fel de Europă?, Editura
to accompany their implementation will Bic All, 2005, p. 58
arouse certainly negative reactions and will [8] Şoitu, Daniela, Şoitu, Conț iu, Civil society and
have and a natural role to put on guard all Romania-Republic of Moldova Cross-border
the paticipants, which will trigger national Cooperation in the Context of European Union
energies to prevent such a bad and unwanted Enlargement. Analele Ştinţifice ale Universităţii
‘Alexandru Ioan Cuza’ din Iaşi. Serie nouă.
situation, between the countries and regions Sociologie şi asistenţă socială, II, Ed. Univ.
of the same country due to the national ‘Al.I.Cuza” Iaşi, 2009, pp. 197-20
development of the society, mainly for the
53
LOCAL SUSTAINABLE DEVELOPMENT, ASPECTS OF POPULATION HEALTH
Romeo IONESCU, Professor Eng. PhD.

Stefan cel Mare University of Suceava, Romania
romtit@fim.usv.ro
Abstract: In this article, the author makes an analysis of the phenomenon of evaluation and evolution of parameters
that relate to population health in the region. Evolution of state of population health is seen in the context of
sustainable development, the recent economic changes.
The author tries to find a connection between cultural, economic changes in economic and the human health, tracking
statistics, the evolution of disease, effective medical care, etc.
Keywords: healt, local sustainable development, tuberculosis cases
JEL Classification: P 46
General presentation of the studied problem

the values of our present behavioral system
Health was defined in a synthetic formula by (of consumerism and production), the
the World Health Organization: health is the principle is defined by three elements:
state of physical, mental and social well-being  Economic growth
that doesn’t reduce the absence of illness or  Social equity
infirmity.  Environmental protection
To own the best health state is one of man’s Sustainable development is an objective of
fundamental rights. From such a perspective, the European Union, starting with 1997, when
health is understood both as an individual and it was included in the Maastricht Treaty, and
as a collective state (that of a nation), and, at in 2001, at the Goetheborg Summit was
the same time, as a right – a person’s purpose included the UE’s Sustainable Development
and a political objective that must be realized Strategy.
by the state, health being the primary element In 2005 the Board started a revising process
of social development. In the context of for the Sustainable Development Strategy,
promoting health, health is not seen as an process that included several stages. Six
abstract but more as a person’s possibility to priorities were emphasized: climatic changes,
complete himself, to respond positively to the health, social exclusion, transport, natural
environment’s stimuli. resources and poorness.
The concept of sustainable development At the Amsterdam Treaty (1997), article 152,
began more than 30 years ago, as a reaction to it was stipulated that public health must be
the environmental issues and the crisis of improved, illnesses and endangering sources
natural resources, especially those connected that affect public health must be prevented.
with energy. Practically, the Stockholm Even though each country is free to choose it
Environment Conference from 1972 is the own policy when it comes to the public health
moment when it is admitted that human department, all the states share the same
activities lead to environmental issues, fact common values. One of the rights is to benefit
which endangers the planet’s future. from the same high standards for public
In 1978, one year after the Cernobal health and to equal access to quality medical
catastrophe, within the Brundtland report, is assistance.
created the most popular definition of As a result, health is considered an element of
sustainable development [3]. Europe’s sustainable development and it is a
Sustainable development is nowadays, at priority for European citizens and, at the
least politically, a objective of society, as a sametime, for European citizens.We all want
whole, as a applicable result of the life’s to be protected from illnesses, to raise our
elements, in all its economic and social children in a healthy environment and to live
aspects. Still controversial, incompatible with in a sure and hygienic environment.
54
The health reform in SUA lasted 100 years, regarding the continuous development of the
until Americans, all agreed that they needed process and recommends the planning of a
universal medical care. They created a National Strategy in order to promote health
complicated system of subsidies and and to educate for health. The main activity
constraints that divided among many the 16 directions stipulated in the short-term
% of the gross domestic product (GDP), a Strategic Plan are:
percent collected from the medical system.  increasing accessibility to medical
Health expenses could represent 20% of the services
GDP in 2020.  increasing the quality of medical
Half of the 16 % comes from public funds. In services
other countries, only 8 %, assured by the  Improving the financing of the health
government, is sufficient for developed health system
systems, [4].  decentralization of the sanitary system
In another part of the world health programs  institutional reorganization of Public
that cost billions of dollars, launched in Sub- Health Ministry, of the structures that
Saharan Africa for 10 years by the World follow it, as well as of the suppliers for
Bank Group and its partners, have proved to health services.
be very inefficient, indicates a report Horizon 2020. National objective: to achieve
published in a Gates Foundation project. health parameters that can be compared with
These programs, in the countries where those from the other EU countries; including
tuberculosis cases are numerous (and propose the demographic and health aspects in
only one example of malady), rarely foresee Romania’s public policies.
specific and efficient measures to detect and Horizon 2030. National objective: to compare
to care for the ill persons. Whereas this the financing of the public health services
infectious malady develops rapidly and by with the level of the other countries from EU,
becoming a worldwide sanitary problem [6];
demands efficient control measures. As a member of EU, Romania should take
into consideration the European System for
Health in Romania’s policy Health Indicators. Mainly, this refers to the
tracking and improvement of the following
In 2008, the Health Ministry from Romania indicators:
received 2.4 % of GDP, the biggest fund  Life-style and other factors that affect the
allotment from the last 20 years, 11.4 % from state of health;
the public expenses, whereas within OECD
 Morbidity and mortality rate (including
(Organization for Economic Co-Operation
cancer and rare diseases);
and Development) the average is of 16 %,
 Health systems (including the aspects
thus classifying Romania at the end.
connected to preventing and promoting);
In Romania, in 2010, 3.9 % of GDP has been
 Health and environment;
allotted to health, percentage that averts
Romania from the civilized countries. The  Mental health (including aspects
suggestion to offer 6 % of GDP has been connected to preventing and promoting);
recently rejected by the Parliament. Sources  Accidents and traumatisms (including
say: Health budget decreases in the next 3 aspects connected to preventing and
years in 2012 (3 % of GDP) and in 2013 (2,8 promoting);
% of GDP), [2].  Indicators of health state, [6].
It is obvious that Romania doesn’t have a
long and medium-term strategic vision in the Case Study. Health in Suceava county
public health department in order to achieve
medium performance parameters, like the Suceava is a county in the North of Moldavia,
other countries from the European Union. The its biggest part being formed from Southern
Strategic Plan of the Public Health Ministry Bucovina. Area: 8.555 km2.
for 2008 - 2010 offers some guiding points
55
The Suceava county occupies a distinct place counties. As it follows we will try to create a
in the Romanian economy because it is the comparative analysis of the main indicators
second, as area (after the Timis county) and regarding the health state of the people from
the eighth, if we take into consideration the the Suceava county by reporting our analysis
number of inhabitants, 708.834 thousand to the Official Report no.8/2006 of the Health
inhabitants, out of which 404.786 thousands Ministry, that analyzes comparatively the
(58% out of the county’s population) live in health state indicators at a national level over
the rural areas and 304.048 thousands (42%) a period of 9 months from 2005 to 2006.
in the rural area, [7]. Thus, in the Suceava county, health indicators
Let’s underline only a few health indicators have registered the following values.
from the county.  Birth rate – registers maximum values,
In the Suceava county in 2009 there were over 12 ‰, together with Iasi county;
registered 7706 children born, 160 less thus, the entire North-Eastern area
children born than in 2008. It must be registers the highest values in the
underlined that in the last 4 years, the birth country;
rare in the Suceava county is approximately  General mortality rate – the Suceava
invariable, over the country’s average. county registers, together with other 11
The increase of the number of children born is counties from the country, the lowest
simultaneous with the reduction of deaths 0-1 values, between 9.6 ‰ and10.6 ‰;
a year and a decreasing general mortality that  The natural progression in the Suceava
results in an increasing natural progression at county, in 2006, is of +1.6 ‰, whereas
one thousand inhabitants, fact which is the values at a national level are
positive, if we take into consideration the negative;
decreasing national situation.  Child mortality rate – if the numbers
A complex analysis regarding the health state registered in Romania by this indicator
of the people from the Suceava county can’t have values between 7.6 ‰ – 21.1 ‰, in
be done without comparing the indicators at our county, this indicator registered
the level of county with the ones at a national values between13.6 ‰ – 19.5 ‰, [1].
level, or even comparatively with other
Table 1. The population’s natural dynamic from 2007 to 2009, [1].

Specification absolute
2007 2008 2009
birth rate 7953 8110 7924
general mortality 7260 7169 7393
natural progression 693 941 531

child mortality 0-1 years 95 68 79
child mortality 1-4 years, 12 11 18
children born dead 53 45 50
The main demographic factors register a morbidity of the Suceava county, we can
favorable evolution from 2006 to 2008, fig. observe that there are many cases of illnesses
no. 1. We can’t say the same thing about the in the county, [5].
population’s state of health. Only one third of Morbidity reported by family doctors
the people from Suceava are healthy. If we indicates, among other things, that there have
follow the numbers, over 2/3 of the county’s been registered over 31 thousand new cases
population have suffered from, at least, an of infectitious diseases, over 26 thousand
illness. But, a patient can have one or more illnesses that affect metabolism and over 230
illnesses, so, the number of patients that go to thousand illnesses of the respiratory tract.
the family doctor is smaller. By analysing the Last year 239 congenital malformations have
statistics for 2008 regarding the general been reported and cromozomial anomalies,
56
the real number excedeeding this one. 1.138 The reports analysis that family doctors and
pregnancy and birth complications and 128 the specialists sent indicated that
perinatal complications. Last year, the cardiovascular illnesses are the first on the list
Suceava county’s general morbidity totalized and by the end of 2008 64.541 people were
523.813 cases, out of which 256.555 in the tracked with hypertension.
urban area and 267.258 in the rural area. Second is diabetes. The DSP Suceava data
Usually, the annual DSP Suceava statistics indicate that by the end of 2008 17.384
have indicated an increased number of ill persons that suffered from this illness were
people in the county, but in 2008, the free tracked by family doctors, out of which 2.523
analyses action through the National Program new cases.
of Health State Evaluation, underlined a
number of cases that is quite alarming.
.
Figure 1. Birth rate evolution in the Suceava county from 1984 to 2009, [1].
Table 2. Tuberculosis cases. Comparison with the national level from 2003 to 2008.
Cases/County Cases/Country Cases/County Cases/country

Year
Absolute Value Absolute Value ‰ inhabitants ‰ inhabitants
2003 949 25237 1,34 1,16
2004 828 24776 1,17 1,14
2005 701 22348 0,99 1,03
2006 682 20397 0,96 0,94
2007 608 18914 0,85 0,87
2008 635 18774 0,89 0,86
Third, we have cirrhosis and liverish negligence of the system of public health,
illnesses. 9861 persons were tracked by the (table 2), [1].
end of last year. If we were to compare this situation with that
A fact that can’t be neglected is that the of other counties, then we have to underline
number of tuberculosis patients increases, that the health infrastructure in the Suceava
situation that has as a basis poverty and the
57
county is inferior, both as number and as instruments. In some hospitals these

value. The Cluj and Timis counties are instruments are over 20 years old. The
Family
Surface Population Hospitals Beds in
Judeţul Doctors Consulting
Km2 Hospitals
Rooms
Suceava 8.553 706.407 11 3.320 935 291
Botosani 4.986 451.199 10 2.609 558 169
Iasi 5.476 826.552 20 6.743 3.088 567
Timis 8.697 674.533 16 5.664 2.974 502
Cluj 6.674 691.989 26 7.056 3.284 357
Bacau 6.621 718.125 12 3.398 1.017 323
Brasov 5.363 596.642 17 3.593 1.240 345
Neamt 5.896 564.291 7 2.700 719 265
Vaslui 5.318 452.528 7 2.552 496 179
Bistriţa 5.355 316.787 4 1.573 400 142
Nasaud
relevant to sustain this idea ( table 3). Suceava county is an emergency hospital
The material basis, the infrastructure of the well-equipped (fig.2). But there is also a
public hospitals from the county is relatively private hospital (Bethesda) that is visited by
good, but they need improvement for the that part of the population with big and stable
analysis, investigation and surgical incomes.
Table 3. A comparison of health
indicators of some counties from Romania,
[1].
Figure 2. The Suceava County Emergency Hospital:

a) The hospital’s building; b) Operating Room, [1].
58
Conclusion consideration, both economically and,

especially, from the health improvement point
Health is important for the persons’ and the of view.
society’s well-being, but a healthy population
represents, also, a necessary condition for References:
productivity and economic prosperity.
This study tries to emphasize the fact that the [1] Buliga, C., 2009, Sănătatea populaţiei din
population’s health doesn’t refer only to the judeţul suceava integrată în programul de
dezvoltare durabilă, disertatie, FIMMM, USV.
policy of the health department, and that we [2] Radulescu, M., 2010, Bugetul pentru sanatate va
can obtain better results if we see health as scadea in urmatorii trei ani,
a primary factor in the process of the society’s http://diabetta.wordpress.com/2010/10/05/bugetul-
sustainable development. pentru-sanatate-va-scadea-in-urmatorii-trei-ani/.
The problems of the sanitary Romanian [3] *** 1987, Brundtland Report ~ Our Common
Future,
system are numerous and are manifested at http://www.wikilivres.info/wiki/,Brundtland_Repo
every level, by starting with the national one rt.
up to the county or city, to the detriment of [4] *** Health Reform USA
the population’s state of health. http://www.healthreformusa.com/
The public effort for health services is [5] *** 2008, Consiliul Judeţean Suceava – Strategia
de dezvoltare economică şi socială a judeţului
extremely low compared with that of other Suceava 2008 – 2013.
EU countries. Thus, the overall health http://www.cjsuceava.ro/index.php?option=com_c
expenses reported to the GDP place us last on ontent&task=view&id=105&Itemid=64.
a EU list (France had in 2008 health expenses [6] *** Planul strategic al ministerului sănătăţii pentru
that represented 11% of GDP). perioada 2008-2010, http://www.ms.ro/?pag=16.
[7] *** http://www.cjsuceava.ro/
Romania is the last on the list also because of
the public health expenses, the amount
representing only 38% of what Hungary
allotted for these expenses). Romania also has
the lowest density of doctors from the
European Union, according to the statistics.
The difference in the quality of infrastructure
and the medical-pharmaceutical personnel
between the rural and the urban areas is huge
and it creates serious problems when it comes
to the accessibility of the health services.
As a conclusion, for a sustainable
development the population’s state of health
is an extremely important factor, that can be
sustained at an European level and through an
increased attention of the analysis-prognosis
activity, that can develop the system’s
capacity to react in accordance with the
population’s needs; the saying “an ounce of
prevention is worth a pound of cure” must
become the main principle, which together
with the obvious benefits connected with the
community’s and the person’s health, also
implies financial efficiency, both medium and
long term. A healthy society requires the
construction of planning systems that
concentrate on the prevention of disease.
These are the main objectives that every
county’s strategic management must take into
59
BRAIN CAPITALISATION – THE NEW PYLON OF THE REGIONAL DEVELOPMENT
Ph.D.Professor Romeo Ionescu

Dunarea de Jos University, Galatz, Romania
ionescu_v_romeo@yahoo.com
Abstract: There are new trends in order to quantify the impact of the knowledge and technical progress on the
sustainable development.
The paper realises a critical analysis of the different actual specific concepts and proposes a new approach on this
phenomenon, based on the brain capitalisation process. This approach was not used in Romania till now. Moreover,
the paper presents the practice ways to obtain data about brain capitalisation and presents a model feasible for this
research.
The gains of this research are those connected to the brain capitalisation approach and the model created especially
for this process quantification.
Keywords: brain capitalisation, knowledge exchange, knowledge creation, sustainable development.
JEL Classification: O32, O33, O18.

regional economy characterised by economic
Introduction agglomeration under equilibrium.
The model of the new economic
Still the ‘90s, some specialists geography approach is presented in figure 1
considered that the economy based on capital (Karlsson et al., 2009).
and mass production will be not able to face The paper deals with the idea to apply
to the new challenges from the new the Berliant and Fujita model to the regions,
millennium. As a result, they proposed a new in order to observe the impact of the brain
approach connected to C-society (Andersson, capitalisation on the regional development.
1985, brain power society (Thurow, 1996) or Brain capitalisation can become a
new economic geography (Fujita, 2009). synthetic indicator which is able to quantify
Nowadays, the most powerful the regional disparities inside and between the
approach is that connected with new member states.
economic geography, which covers a core-
periphery model based on modelling a
Agglomeration Dispersion
forces forces
Emergence of local agglomerations

and
self-organisation of the spatial structure
Evolution through a sequence of

structural changes
Figure 1: New Economic Geography approach
60
Berliant and Fujita model and the R&D, innovation and development
knowledge exchange disparities
Berliant and Fujita (2007) described
the knowledge assimilation process for two The paper assumes the idea that brain
persons as: capitalisation is based on knowledge,
ni t   nijc t   nijd t  (1) knowledge access, marginal propensity to
research, human resources in R&D and the
n j t   nijc t   n dji t  (2), research results.
where: i,j – two persons, nijc t  - the common These key elements are very different
knowledge for person i and j, nijd t  - the
across the EU member states.
For the beginning, the paper presents a
differential knowledge of person i from new interconnection diagram of those
person j, n dji t  - the differential knowledge of elements which are able to dimension the
person j from person i, ni t  - the knowledge brain capitalisation in a specific
country/region (see figure 2).
of person i at time t, n j t  - the knowledge of The first key element which supports
person j at time t. the brain capitalisation is knowledge. Every
There are two specific situations with person has an initial knowledge endowment.
person j and j. First of them is that in which i Even that above person is isolated, it will be
and j are isolated. The second one is that i and able to grow its knowledge using its
j joint knowledge creation, based of their experience.
specific own knowledge and the new But persons meet other persons, with
knowledge resulted from their change and other initial knowledge endowments, and
cooperation. make knowledge exchanges leaded by the
For the second situation, the good practice examples.
knowledge dynamic is: Moreover, persons work together and
 
1
create new knowledge, which can be
a ij t    nijc t nijd t n dji t  3 (3), completely different from their initial
where  - a positive constant. knowledge. Practically, the initial knowledge
Joint knowledge creation between is used, modified, completed and rebuild in
person i and j occurs at a rate proportional to order to create new more useful knowledge.
the common knowledge for person i and j, the This is a very dynamic process which can not
differential knowledge of person i from be stopped any moment.
person j and the differential knowledge of The second key element of the brain
person j from person i. capitalisation is the access to knowledge. It is
Our paper is focused on the very difficult to obtain a permanent access to
quantification of those elements which potent the newest important knowledge, because
the knowledge exchanges between peoples knowledge is very expensive and the
and the brain capitalisation, as well. knowledge creation implies high costs.
As a result, the knowledge market is
an oligopoly one, because just a few regional
actors are able to create and to supply
knowledge.
61
Brain capitalisation
Knowledge Access to Marginal Human

Research
resources
results
knowledge propensity to
research
Knowledge R&D expenditures Total researchers Patent applications
exchange Doctorate students
in science and
expenditures (see table 1).

R&D legislation technology fields Employment in
Knowledge stock high and medium
technology
EU15
EU27
manufacturing
Country
Knowledge sector
creation
Employment in knowledge
1.89
1.82
2005
EU’s member states connected to the R&D
There are great disparities between the
intensive service sector
62
1.92
1.85
2006
Source: personal contribution
1.93
1.85
2007
Figure 2: Brain capitalisation connections
Table 1: R&D expenditures (% of GDP)
1.9
1.99
2008
Euro 1.84 1.86 1.87 1.91
area
Cyprus 0.4 0.43 0.44 0.46
Romania 0.41 0.45 0.52 0.58
Sweden 3.6 3.74 3.61 3.75
Source: http://epp.eurostat.ec.europa.eu/tgm
EU27 average was 1.9% of GDP in Sweden, even that Swedish GDP is greater
2008. It was greater for EU15 and smaller for than Cyprus GDP.
Euro area because the last region covers Romania has a low rate of R&D
member states less developed that EU15 expenditures, but its level depreciated during
average. 2005-2008 (see figure 3).
The lowest rate of R&D expenditures
has Cyprus. It was 8 times lower than in
2,5
2
EU27
1,5
EU15
1 Euro area
Romania
0,5
0
2005 2006 2007 2008
Figure 3: Comparative R&D expenditures (% of GDP)

Under the present global crisis, the Another key element which
situation becomes worth. The decrease of the dimensions the brain capitalisation is the
GDP rates of growth across the EU supports marginal propensity to research. It can be
the decrease of the R&D expenditures. approximated by doctorate students in science
and technology fields.
Table 2: Doctorate students in science and technology fields (% of the population aged 20-29)
Country 2004 2005 2006 2007
EU27 - - 0.27 0.30
Malta 0.00 0.02 0.03 0.04
Romania 0.14 0.23 0.20 0.35
Finland 1.32 1.33 1.36 1.38
63
The analysis has to be done carefully, Romania had a good situation in 2007,
as a result of the great difference between the but the things changed in 2010, when the
official Eurostat data in 2007 and the present Romanian legislation doesn’t grant any
situation. money for the Ph.D. in science (see figure 4).
The rate between Finland and EU27 The impact will be high and the number of
average is 4.5:1. It is too high. On the other doctorate students in science and technology
hand, the rate between Malta and EU27 is fields will decrease significantly.
1:7.5, too low.
0,4
0,35
0,3
0,25
EU27
0,2
0,15 Romania
0,1
0,05
0
2004 2005 2006 2007
Figure 4: Doctorate students in science and technology fields (% of the population aged 20-29)
The fourth element which dimensions The number of total researches grew
the brain capitalisation is the human resource. in all member states during 2005-2009. As a
This specific kind of human resource result, the EU average human resources in
comes from researchers, employment in high science and technology as a share of labour
and medium technology manufacturing sector force were 40.1% in 2009.
and employment in knowledge intensive
service sector.
Table 3: Human resources in science and technology (% of labour force)

Country 2006 2007 2008 2009
EU27 38.6 39.2 39.6 40.1
Denmark 50.4 48.8 52.3 51.8
Portugal 22.0 22.1 23.1 23.5
Romania 22.8 23.0 23.8 24.1
The highest level of this indicator was Portugal (23.5%). Romania had a share of
in Denmark (51.8%) and the lowest was in 24.1% in the same year, 2009 (see figure 5)
60
50
40 EU27
30 Denm ark
20 Portugal
10 Rom ania
0
2006 2007 2008 2009
Figure 5: Human resources in R&D (% of labour force)

The human resources in science and The real economy supports the
technology decreased in 2010 and will evolution of the brain capitalisation with it
decrease more in 2011, as a result of the R&D firms, departments, institutes and
Romanian government policy to cut jobs and individual researchers.
wages from the public R&D institutes.
Table 4: Employment in high and medium-high-technology manufacturing sectors (% of total

employment)
Country 2005 2006 2007 2008
EU27 6.58 6.59 6.69 6.90
Czech 9.52 10.39 10.85 11.64
Republic
Germany 10.50 10.72 10.72 10.89
Romania 5.13 5.45 5.66 5.60
Cyprus 1.27 1.03 0.90 0.87
As a result, the EU average 6.9% of total employment in 2008 (see figure

employment in high and medium-high- 6).
technology manufacturing sectors achieved
14
12
EU27
10
Czech Rep.
8
Germany
6
4 Cyprus
2 Romania
0
2005 2006 2007 2008
Figure 6: Employment in high and medium-high-technology manufacturing sectors (% of total employment)

The highest rates of this category of Romania is placed under the EU
employment in total employment were in average, with a rate of 5.60% in 2008.
Czech Republic (11.64%) and Germany The employment in knowledge
(10.89%) in 2008. intensive service sector has the same
On the other hand, the lowest rate was evolution like that in the manufacturing
achieved in Cyprus (0.87%). sectors.
Table 5: Employment in knowledge-intensive service sectors (% of total employment)
Country 2005 2006 2007 2008
EU27 32.47 32.80 32.96 33.07
Romania 13.89 14.59 14.40 14.84
Luxembourg 41.96 43.49 43.02 45.10
The EU average rate was 33.07% in Unfortunately, Romania had the

2008, but the peak rate was in Luxembourg lowest rate in the same year (14.84%).
(45.10%).
50
40
EU27
30
Luxembourg
20
Romania
10
0
2005 2006 2007 2008
Figure 7: Employment in knowledge-intensive service sectors (% of total employment)

The last, but not the least element the patent applications from every member
which support the brain capitalisation is the state.
research results, which can be quantified by
Table 6: Patent applications (number of applications/million inhabitants)
Country 2004 2005 2006 2007
EU27 111.64 112.57 113.94 116.54
Romania 1.05 1.32 0.89 0.98
Germany 276.19 283.74 283.61 290.7
Sweden 246.21 260.07 280.04 298.36
The average number of the patent lowest level of this indicator across the EU.
applications grew across the EU during 2003- This quantifies the great disparities between
2007. It was 116.54 applications/million Romania and other member states and it is
inhabitants in 2007. very important for all forecasts connected to
In the same year 2007, Romania had the sustainable development in Romania (see
only 0.98 applications/million inhabitants, the figure 8).
350
300
250 EU27
200 Romania
150 Germany
100 Sweden
50
0
2004 2005 2006 2007
Figure 8: Patent applications (number of applications/million inhabitants)

The highest levels of this indicator The only solution is to try to find
were in Sweden (298.36) and Germany available date from regional or national
(290.7). statistic institutes.
At this moment of the analysis, the As a general point of view, the
elements from figure 2 were quantified. The average world corporative investment in
next step is to estimate the average value of R&D annual rate decreased from 9% in 2007,
every element for a specific state. to 6.9% in 2009.
The EU companies had the highest
Romania’s brain capitalisation impact on rate (8.1%), regarding American companies
the economic development (5.7%).
The emergent economies obtained the
For the beginning, it is important to greatest corporative investment in R&D
disclose that the Eurostat data connected to annual rates of 40% in China, 27.3% in India,
the brain capitalisation process quantification 25.1% in Taiwan and 18.6% in Brazil.
are not good enough. It is a lag between the Romania has no first company in the
moment in time when the official statistic EU top 1,000 investors in R&D. The greatest
data may be used and the current year. numbers of such companies in top are in
As a result, the latest Eurostat data are Great Britain (247) and Germany (209).
from 2007 and 2008. These data are not able There are other six member states like
to present the impact of the global crisis on Romania which don’t have companies in this
the EU’s member states economies. top: Bulgaria, Cyprus, Estonia, Latvia,
Lithuania and Slovakia.
67
As a result, it is difficult to quantify If    K , the labour “productivity” is

the brain capitalisation in Romania, because normal and will note:
we consider that the process is one of de-
capitalisation. a 0  a  a  K  . (8)
In order to obtain a better analysis, we
propose a model based on a classic
production function with technical progress: If    K , the labour “productivity”
will increase or decrease, as in the following
Y  ALa K b , (4) equation:
in which: a   a 0  a1    K  .
A: technical parameter, A  1; On the other hand, the use of the new
L: R&D labour; research equipments needs specific
K: capital in R&D sector; technologies (  ). As a result:
a: parameter proportional to relative labour
“productivity” in R&D sector; b  b   . (9)
b: parameter proportional to capital
efficiency in R&D sector. If we note the actual technologies b1,
Both labour productivity and capital we shall obtain:
efficiency are under the impact of the
technical progress and brain capitalisation b   b0  b1    K  . (10)
process. This technical progress is quantified
by the growth of the labour knowledge (  )
Using these calculations, the Cobb-
and the growth of capital use degree (  ) in Douglas function becomes:
R&D sector.
The labour knowledge level can be
 
Y  A La1   K  K b1     K  La0 K b0 . (11)
approximated by the learning stock. This
learning stock represents the sum of the years Using the decomposition relations:
u v  e ln u  e v ln u and
v
of elementary education, secondary education (12)

mn
and advanced studies, as well. The learning e e e ,
m n
(13)
stock can be calculated as:
the function which is able to present the
n
impact on the technical progress on the
S i a    ni k i , (5) sustainable development in Romania
i 1
where: becomes:
ni: the labour from i category; Y  Ae a1   K  ln L  e b1     K  ln K  La0 K b0 and
ki: coefficient which represents graduated Y  Ae a1   K  ln L  b1     K  ln K  La0 K b0 . (14)
studies years of the labour from i
category. These two above equations allow us to
The labour “productivity” will increase observe the importance of the relative labour
as a result of learning stock growth, “productivity” growth and research capital
mentioned as  . It can be considered: efficiency on the regional output.
But the relative labour “productivity”
a  a  (6) growth and research capital efficiency are the
Moreover, the use of the new research result of the labour knowledge growth (  )
equipments needs a specific knowledge and the use of the new technologies (  ).
quantum (  K ). This is why: There is statistic information for every
above indicator at regional level in Romania.
a  a K  .
On the other hand, the economic
(7)
situation and the Romanian government’s
measures are not able to support a real brain
capitalisation.
68
The R&D public institutes shutting The second problem is that the
and the cutting of their budgets and personnel Berliant and Fujita model is not too feasible
number created a good base to the brains and it is not able to quantify the brain
exodus across the EU and America. capitalisation process. It is very feasibly to
The problem is that these lay measures quantify only the knowledge assimilation
will have negative effects for a long time- process.
period. This is why the paper proposes
And the sustainable development of another model, which can be used in Romania
the Romanian economy becomes a wonderful in order to quantify the brain capitalisation
dream. process. And this model can be successfully
applied on the Romanian case.
Conclusions
References:
The above presentation allows the
possibility to evaluate every element which is [1]. Andersson AE (1985), Kreativitet: storstadens
framtid, Prisma, Stockholm.
able to support the brain capitalisation, [2]. Berliant M., Fujita M. (2007), Knowledge
according to the figure 2. creation as a square dance on the Hilbert cube,
All those five elements from the figure Institute of Economic Research, Kyoto
2 were quantified using original elements, University.
which allow the possibility to have an idea [3]. Fujita M (2009), Dynamics of Innovation Fields
with Endogenous Heterogeneity of People, in C.
about the brain capitalisation across the EU Karlsson et al., New Directions in Regional
and in specific member states. Economic Development, Springer, Heidelberg,
The problem appears when the paper pp.59-78.
tries to analyse the Romania’s situation. [4]. Karlsson C. et al. (2009), New Directions in
The first problem is that there is not Regional Economic Development, Springer,
Heidelberg, p.60.
enough information about the brain [5]. Thurow L.C. (1996), The future of capitalism,
capitalisation in Romania. Leighco, New York.
[6]. http://epp.eurostat.ec.europa.eu/tgm
69
THE EDUCATION – VECTOR OF HUMAN DEVELOPMENT. ROMANIAN

PERSPECTIVE
Lecturer Amalia Ioniţă, Petroleum and Gas University from Ploieşti, Romania, ionita_amalia@yahoo.com
Associate professor Mirela Matei, Petroleum and Gas University from Ploieşti, Romania, mirematei@yahoo.com
Abstract: In the context of market opening, of free circulation of the labor force, and of globalization in general, the
education represents an extremely important element according to which countries will be classified from the
economical point of view. The human development is achieved through education which must be considered a process
extending throughout the entire life cycle, without limiting to school period. Without trying to capture all aspects of the
education in our country, in this paper we analize some effects of the long and endless process of Romanian education
reform. Thus, we have highlighted the evolutions of: school population, degree of inclusion in the education of school
population, the school abandonment, the school network, the number of didactic staff and the percentage from the
Gross Domestic Product earmarked to the education. After the events of 1989, the education in Romania, as the entire
economy of the country has undergone reform. The education reform is a complex process, still underway, affected by a
variety of experimental strategies and objectives, the lack of efficient and quality management. When we sustained this
statement, we have in mind the following aspects: structure and content of the educational process, quality and low
motivation of teachers, underfunding of education, decentralization of funding, autonomy of schools, the gap between
schools in terms of facilities with equipment, even between similar units in the same locality.
Keywords: education, rate of educational inclusion, school abandonment, degree of literacy of adult population.
JEL classification: I21
Introduction education and professional training

In year 2000, European Council in Lisbon market;
(March 23rd -24th 2000) defined the strategic  Acknowledgement of the education,
objective of the European Union: people health and research-development
represent the most valuable asset of the E.U. contribution in the formation and
and the investment in people will rank evolution of the labor productivity;
countries and regions in the economy of the  Changing the balance between old
future. The work capacity of a country’s industries, intensive in standardized
population depends on the availability and work, and the new ones, intensive in
quality of the adequate and actual knowledge science and innovation, supporting the
and skills in order to be able to participate and latter;
contribute to the economic and social life.  Accelerated aging of the population;
Education’s merits regarding its contribution  Labor force deficits on highly
to the human development, especially the occupational level;
sustainable one, are acknowledged. The  Increase of the long-term
president of the World Bank, J. D. Wolfensen unemployment for persons will low
declares at the International Education Forum, qualification degree;
Dakar, April 27th 2000: “no country could  Economical and social polarization,
develop without educating its population; social exclusion and poverty;
education is essential in supporting Due to the fact that “globalization is neither a
economical growth and reducing poverty”[1]. hypothesis, nor a theory, but a reality which
It is believed that in time the lack of constitutes a challenge and also an
education and poverty can become true social opportunity”[2], the concept of education
bombs. throughout the entire life course becomes
In our opinion, the current international especially important for our country, for its
economical context is characterized by: sustainable progress.
 An alert rhythm of the market
internationalization and globalization Education- component part of human
processes, including labor market, development
70
The decrease of the birth rate directly

The relationship education-sustainable determines the reduction of the number of
development must be approached based on children attending pre-school education. In
two aspects: on the one hand as an essential the period 1990-2008, the number of children
component of the sustainable development in kindergartens constantly decreased until
index because the education index - the academic year 2001-2002 when a slight
Human Development Index component improvement of this indicator is perceived
includes among its indicators: the gross rate due to an increase of the birth rate starting
of educational inclusion and the degree of with year 1998. Nevertheless, in academic
literacy of adult population, and on the other year 2001-2002, in public kindergartens only
hand based on the profound and sustainable 616,014 children with ages ranging between
implications produced by the educational 3-7 years[3] are registered in the four groups
process on all segments of human (big, little, average and school-preparation
development. group) out of the total of the 1,188,912
After the events in 1989, the education in children born between 1994 and 1998. We
Romania, as its entire economy, was subject consider that the percentage of children
to reform. registered in private kindergartens is
The educational reform is a complex process, insignificant in this period, not affecting the
still ongoing, affected by the experimentation 51.8 percent of the total number of pre-school
of a wide range of strategies and objectives, children registered in educational units
by the lack of an efficient and qualitative specific to their age. Most of them are
management. When we make this statement registered in the school-preparation group,
we have in mind: the structure and content of consequence of the provision of the Education
the educational process, the quality and poor Law regarding the generalization of the
motivation of the didactic staff, the low school-preparation year. This insufficient
financing of the education, decentralization of percentage of 58.1% can be explained by the
the financing system, autonomy of the school reduction of the number of kindergartens
units, discrepancies between schools along with the reduction of didactic staff,
regarding equipments, even between similar which, since 1990 and until the beginning of
units in the same locality. the academic year lost 2,549 units and 2,376
Even if only two indicators are included in the teachers.
Human Development Index, in order to The school population in the pre-university
capture the evolution of the educational education also decreases significantly both by
phenomenon in our country we will try to the reduction of the school-aged population
highlight the changes which occurred in the and by the accentuation of the non-
evolution of the school population, as well as participation to education.
the degree in which the school population is Throughout the transition period, per
included in the educational system, school education levels, the highest rate of school
abandonment, evolution of the school population/year belongs to the gymnasium
network and of the number of didactic staff, pupils and the lowest to post-high school
content of the syllabus and the percentage education (for foremen). For the latter, the
from the Gross Domestic Product earmarked “peak” was 2.08% in the academic year
for education. 1998/1999, after which the rate decreased,
The evolution of the school population in our one of the possible explanations being a high
country is affected by the demographic rate of school abandonment at this level. The
phenomena. Romania is presently most spectacular evolution, a positive one, is
characterized by an important reduction of the that of the university education: in the
birth rate as compared to the one registered university year 2007/2008 one of five persons
before 1989. registered in an education unit is a student.
Unlike other sectors where the decrease of the There are some explanations for this
population number is perceived later on, the evolution:
first sector which is affected is education.  Private university education;
71
 Increase of the number of state the evolution of the degree in which the
universities; school population is included in the
 Increase of the number of places in educational system. Yet, with only one
universities (from budget and with exception (in 2004), in the urban environment
fee); the rate of educational inclusion is higher than
 Autonomy of the universities to in the rural one, but the positive evolution of
propose their own examination the latter was stronger. A possible explanation
system, in some cases extremely would be the fact that in the urban
(interview, admission based on “file”, environment there are more educational units,
etc.). well equipped, connected to utilities
The decrease of the school population can be networks, with modern didactic equipment
considered benefic, on short term, because, at and materials, unlike most schools in the rural
first sight, the pupil benefits from better environment which sometimes lack the
conditions for the understanding and minimum utilities (water, electricity, toilets,
accumulation of knowledge. Locally, central heating, etc.). At the same time,
especially for smaller localities, different children coming from the rural environment
problems occur: problems regarding the are more affected by poverty and register to
provision of the didactic norms of the didactic school so that their families could benefit
staff, disappearance of some educational units from the indemnities paid by the State, as
and increase of the expenses for the provision well as the “milk and croissant” program.
of some transport and/or accommodation The gross rate of inclusion in secondary
services for the pupils within new educational education is characterized by strong
centers. fluctuations. In our opinion, the decline can
When assessing the education quality level of be owed to: a lack of interest in apprentice
a nation it is also used as an indicator the schools, a drastic reduction of the number of
degree in which the school population is schools at this level (from 707 units in
included in the educational system, indicator 1990/1991 to 77 in 2004/2005), the financial
which expresses the percentage of pupils from impossibility of some families to incur the
a particular age group, irrespective of the costs for their children education, the
educational level, from the total population diminishing of the educational role as
within that particular age group. After 1989, perceived by the population, a high
this indicator presents a sinuous evolution for unemployment rate among graduates of
all age groups, except for university education professional schools and high schools,
characterized by a constant growth. increase of school abandonment level, etc.
The gross rate of educational inclusion, For the university education, the inclusion
indicator which represents the percentage of rate increased almost five times in 2008
pupils within an educational level, compared to 1990 and this might be one of
irrespective of the fact if they belong or not to the causes of the poverty reduction in the last
the proper age group, loses in the first year of years.
transition 3.9 %, reaching a value of 58.5%. It is noticed that the education rate is higher
An improvement is recorded in the following for men than for women. If until the
years and in the academic year 2007/2008 a university year 1997-1998 more men than
value of 79.7% [4] is recorded, the indicator women attended university education, the
gaining 17.3% as compared to 1990. situation changed starting with the following
Mandatory education, namely primary school year. The increase of the educational level for
and gymnasium, has high rates, in some years women can provide them with better
its value exceeding 100%. This is due to the remunerated jobs and promotion
persons who have exceeded the proper age for opportunities.
being included in a unit of primary education Yet, the spectacular increase of the number of
and apply for attending classes at this level. students (we take into consideration both the
Per residence environments it is noticed that inclusion rate for university education and the
the gross rate of educational inclusion follows
72
share of students within school population) is Due to the fact that the European Union
still far from the European average. demands the reduction of school
Both pre-university education and abandonment in compulsory education to
professional training are affected by school maximum 10%[7] and taking into
abandonment, an alarming phenomenon by consideration the future implications and
the proportions and tendencies it records. If in effects of the decision to abandon school, a
the academic year 1996/1997 Romanian series of measures were taken in view of
education “lost” 19,949 pupils, the preventing and reducing this phenomenon.
abandonment rate being of 0.79%, and in the For sure, the “milk and croissant” program,
academic year 1999/2000 of 0.87%[5], in free school supplies for pupils coming from
2007 three times more children than in families with an income below 50% of the
2000[6] abandoned school. The school minimum income/economy (in the academic
abandonment rate is higher for mandatory year 2001/2002 930 thousand pupils
education than for other educational cycles, benefited from this and in the following year
so more than 9 out of 10 pupils who abandon 941 thousand pupils)[8], or the acquisition by
school are in the 8th grade. The school the Ministry of Education of the vehicles for
abandonment rate is higher in the rural the transportation of pupils to the local school
environment than in the urban one and in the centers could be considered good initiatives
mountainous areas than in other areas. Roma for the social protection of the pupils included
children are more exposed to the risk of into an educational level, but the core of the
school abandonment. problem continues to exist. “It is necessary to
In our view, there is a diversity of causes for come up with a clear strategy with targets,
school abandonment: deadlines and adequate resources in order to
 Financial causes (children coming solve this situation before serious cross border
from very poor families abandon migration problems might occur”[9].
school and are sent to work by their The degree of literacy of the adult
parents); population[10] is the second indicator which
 Insufficient cultural and educational contributes with two thirds, together with the
level of the families the pupils come gross rate of inclusion for education at all
from; levels (one third), to the level of education,
 Insufficient number of inclusion indicator which is included in the Human
programs for Roma children; Development Index. Although it has an
 Multiple repetency phenomenon; increasing trend, its progress is not
 Difficulties in relating with other remarkable.
children or didactic staff; Further to the implementation of different
 Psychological causes; programs for trying to bring back the adult
population to school in order to finalize the
 Run-away from home;
compulsory education, the literacy rate of the
 Increase of pregnant minors;
adult population increased with only 0.6 %
 Parents migration to work abroad;
between 1995 and 2005. Women are more
 Poor motivation regarding future motivated to return to school and complete
financial gains as a result of the their studies, so the share of illiterate adult
education determines many children to women decreased in the same period by
leave abroad to work; 1.1%. However, the percentage of illiterate
 Pupils lack the motivation to acquire women is higher than the percentage of
new knowledge and skills in an illiterate men, but decreasing from 3.3% in
obsolete format with a content 1995 to 1% in 2005. The majority of illiterate
incompatible with the modern population is represented by women, mostly
evolution of the society; from rural environment, belonging especially
 Long distances between home and to the elderly population.
school and lack of means of The basis of a real and sustainable human
transportation. development is the investment in education.
73
Due to the evolution of its indicators, the network, especially in the rural environment,
education index had a significant increase on the other hand.
from 0.851 in 1995 to 0.893 in 2005, bringing Human factor is essential in achieving the
its contribution to the increase of the Human educational process, the educational quality
Development Index from 0.759 to 0.808. depending on its value. By analyzing the
We consider that the education indicators educational process based on the didactic
which contribute to the creation of the Human staff, the following aspects can be pointed
Development Index could have had a more out: the decrease of the number of didactic
accentuated evolution. In our opinion, this staff from pre-school, gymnasium, arts and
unsatisfactory evolution was caused by the crafts and apprentice education, mainly due to
changes of some components of the the reduction of the number of schools and
educational process: the number of school population; increase of the number of
educational units, number and quality of didactic staff in high school and university
didactic staff, content of the syllabus, as well education due to the increased number of high
as the low financing of the educational schools and universities; aging of the didactic
system. The restructuring process of the staff “stock” and increase of substitute
national educational system and the teachers, especially without qualification,
legislative regulations in the educational field most of them teaching in the rural
led to the reorganization of the network of environment; a low level of salaries for
educational units in Romania. teachers comparatively with other activities
Further to the measures within the national and without a proper correlation with the
education system reform, in the period 1990- social importance of the work and the
2008, the number of education institutions responsibility for training new generations.
decreased to less than one third (from 28,303 The education restructuring and reforming
units in 1990[11] to 8,230 units in the also aims at the content of the educational
academic year 2007/2008[12]), thus: the programs offered by Romanian schools.
number of kindergartens, especially the ones School and university syllabuses have a
with normal program, decreased from 12,529 theoretical value, but, in most cases teach
at the beginning of the period to only 1,720 in their beneficiaries “to know” and “to be”
the academic year 2006/2007; the number of good specialists, and seldom “to do”. There is
schools decreased by more than 60%; the no proper correlation between the
number of vocational education units qualification and educational system and the
decreased by almost seven times; the number labor market. That is why the focus must be
of post-high school education decreased to on the creative learning which would have as
25%. Only for high school and university central point the capacity to innovate (not
education there is an increase of the specific imitate), availability for team work and usage
units. Regarding high school education, there of knowledge from different areas. The
is a change in the high school structure, development of the arts and crafts schools and
focusing on theoretical high schools and the professional ones can answer to the
colleges. The increase of the number of demands of the labor market in this area.
university units is significant for the transition The underfinancing of the educational system
period, accompanied by an increase of the is a sad, but current reality. For a long period
private sector which comprises one third of of the 18 transition years Romania earmarked
the facility number. to the education less than 4% of the Gross
The school network is simultaneously Domestic Product, the official data being
submitted to the action of two contradictory distorted by all kinds of expenses which were
processes: the modernization of the not related to the financing of the educational
infrastructure by providing new utilities, new process and professional training in
knowledge and communication technologies- themselves, but connected to the social
for one part of the school network, on the one protection of this process’s beneficiaries.
hand and the maintenance in improper Starting with 2006, the “minimum six
condition of a significant part of the school percents from the Gross Domestic Product for
74
education”, provided by the Education Law professional training do not aim at the
were exceeded. uniformization and standardization of
At present, economic crisis and baggage of the European education, but the
errors from Romanian economy have affected promotion and preservation of the
the education budget and have begun to local/national specificity.
produce negative effects (reduced wages, the  Romanian education reform should
elimination of salary increases, closing be made to support economic
schools and firing of personnel etc..). development and actively pursue
economic reforms. Romania must
Conclusions become aware that moving the center
of gravity changes on education to
In conclusion, analyzing the situation of the support future economic, social and
Romanian education, we deem that the technology is essential to overcome
following tendencies can be outlined: the current economic crisis and to
 In spite of the education reforming produce sustainable long-term effects.
and restructuring strategies, the future We should consider the example of
educational capital will be Finland, which in the '90s faced a
diminished; starting with the similar crisis.
university year 2009/2010 the “wave”  The contact with the economic
of less numerous future generations environment must be carried out
born after 1990 will begin to affect effectively, in order to correlate the
the admission to university education; education system with actual job offer
 We will lose significant values from in the market.
the less favored population groups,  Curricula be redesigned and
especially in the rural environment, improved, such as school attendance
the causes being the restructuring of rate in Romania to reach 56% and to
the school unit network and lack of meet the EU average of 63%.
qualified didactic staff.  The increase of budget for education
 Increase of study taxes and other is essential to quality education. In
expenses will lead to a migration of 2010, the annual amount per student
the students towards the universities of Romanian state is only RON 233
which apply smaller tuition taxes. We in urban environment, six times less
consider that the free competency than the amount allocated by the
manifested between educational United Kingdom for a student.
institutions must not affect the quality
of the educational act; Endnotes:
 We will witness a phenomenon of
educational polarization towards [1] „Dezvoltarea economică a României”, ed.
population groups with higher Academiei Române, Bucharest, 2003, chap. 18
„Vectorul educaţie- formare profesională, în
income, irrespective of their perspectiva integrării europene”, author Mihai
intellectual capacity; Korka, page 254-255
 The commitment undertaken by [2] „Dezvoltarea economică a României”, ed.
Romania by signing the “Declaration Academiei Române, Bucharest, 2003, chap. 5
of Bologna”(June 19th 1999) and the ”Strategy regarding the development of Romania’s
competitivity in view of joining the European
“Declaration of Florence” (September Union”, author Leonard Cazan, page 31
30th 1999) –documents related to the [3] Law no. 84/ 1995- Education Law with subsequent
reform in university education – amendments and supplements stipulates the age of
representing the basis of a “Wider children in pre-school education, between 3 and 7
cooperation area in the area of basic years old. Maximum age was changed to 6 years-
old by Law no. 268/2003, published in the Official
education”, should be accurately Gazette no. 430 dated June 19th 2003.
understood: the restructuring of one’s www.cncsis.ro
own educational system and
75
[4] National Institute of Statistics -„Romnia in figures [6]. Law no. 84/ 1995- Education Law with
2008- statistical breviary”, Bucharest, Mai 2008, subsequent amendments and supplements
page 32 stipulates the age of children in pre-school
[5] ”Current status of the education reform in education, between 3 and 7 years old; Law no.
Romania-Preliminary report”, M.E.C., Bucharest, 268/2003, published in the Official Gazette no.
2002, www.see.educoop.net 430 dated June 9th 2003. www.cncsis.ro
[6] „Adomnitei: rata abandonului scolar, mai mare in [7]. „Adomnitei: rata abandonului scolar, mai mare
invăţământul obligatoriu”/”rate of school în invăţământul obligatoriu”/”rate of school
abandonment higher for compulsory education”, abandonment higher for compulsory education”,
November 2nd 2007 November 2nd 2007
www.mediafax.ro/social/adomnitei-rata- www.mediafax.ro/social/adomnitei-rata-
abandonului-scolar-mare-invatamantul-obligat abandonului-scolar-mare-invatamantul-obligat
[7] Romanian children drop out of school”- BBC [8]. “Romanian children drop out of school”- BBC
Romanian. com, 2 noiembrie 2006, Romanian. com, 2 noiembrie 2006,
www.bbc.co.uk/romanian www.bbc.co.uk/romanian
[8] ”Current status of the education reform in [9]. „Stadiul actual al reformei Educaţiei din
Romania-Preliminary report”, M.E.C., Bucharest, România- Raport Preliminar” ”/”Current status
2002, www.see.educoop.net of the education reform in Romania-Preliminary
[9] „Dezvoltarea economică a României”, ed. report”, M.E.C., Bucharest, 2002,
Academiei Române, Bucharest, 2003, chap. 18 www.see.educoop.net.
„Vectorul educa - formare profesională, în
perspectiva integrării europene”, author Mihai
Korka, page 263
[10] Degree of literacy of the adult population
represents the share of persons over 15 years-old
who have attended or graduated school or can read
and write without having graduated from school
aut of the total population over 15 years-old
[11] National Institute of Statistics- „Anuarul Statistic
al României/Statistic Yearbook of Romania 2006”,
page 327
[12] National Institute of Statistics -„Romania in
figures 2008- statistical breviary”, Bucharest, Mai
2008, page 32
References:
[1]. Leonard Cazan - Dezvoltarea economică a

României”, ed. Academiei Române, Bucharest,
2003, chap. 5: „Strategia privind dezvoltarea şi
ridicarea competitivităţii României în vederea
integrării în Uniunea Europeană”/”Strategy
regarding the development of Romania’s
competitivity in view of joining the European
Union”;
[2]. Mihai Korka,- „Dezvoltarea economică a
României”, ed. Academiei Române, Bucureşti,
2003, chapter 18:„Vectorul educaţie- formare
profesională, în perspectiva integrării
europene”/”Education vector-professional
training in view of joining the European Union”;
[3]. National Institute for Statistics :„România în
cifre 2008- breviar statistic”, Bucureşti, may
2008, page 32
[4]. National Institute for Statistics - „Anuarul
Statistic al României, 2006”, page 327
[5]. „Stadiul actual al reformei Educaţiei din
România- Raport Preliminar”/ ”Current status of
the education reform in Romania-Preliminary
report”, M.E.C., Bucharest, 2002,
www.see.educoop.net
76
STATISTICAL ANALYSIS OF THE WORK ENVIRONMENT

OF SURVEY OPERATORS
Alina Moroşanu, Phd. Student

“Alexandru Ioan Cuza” University/Doctoral School for Economics
Iaşi, Romania
Abstract: In this study we wanted to do a statistical analysis of the work environment of survey operators. The
necessary data were the results of an enquiry and were processed with the statistical software SPSS. The results show
that survey operators would be much more satisfied with their work environment if the managers improved the quality
of the collaboration at department level and if there were a stimulating salary package.
These results are not universally valid, but they may be a point of view that could help improve the operator’s
productivity and to a better resource allocation of the results of an enquiry.
Keywords: survey operator, work environment, multiple correspondence analysis
JEL Classification: O15
Introduction
What is a survey operator?
As in the operators departments of the
public survey companies “there are frequently Each enquiry is unique and implies a
problems concerning communication, certain effort, during a certain period of time,
organization, personal relationships, complex activities and categories of
satisfaction with work or salary package” resources. One of the important categories of
(Ticu Constantin, Ana Stoica-Constantin, resources is the workforce. This category
2002, p.88), we must take into consideration comprises, alongside specialists in different
an analysis that could enable us to get an fields, survey operators. By using them, even
explanation of the situation. This analysis is if the costs are bigger, companies have
important both for finding solutions for the representative samples and the appropriate
problems of the operators department and for respondents for the questionnaires.
providing the managers of a public survey Generally, “operator” means “qualified
company/ research centre with valuable worker that supervises the functioning of a
information, useful in motivating the machine, of a device or of equipment and that
operators, identifying future threats or does certain actions with these”. An
opportunities for improving the efficiency of “operator can also be the person that “handles
the activity. the camera during filming or that projects
The problem we want to solve has as its movies on to a screen“. In mathematics an
starting point the principle that there should “operator” is: a function between two vector
be n analysis of the work environment at the spaces, compatible with the vector structure
level of the operators departments of the of those spaces.” (Vasile Breban, 1987, p.
public survey companies. The main purpose 711)
of this study is identifying those aspects of There are different approaches to
work that lead to better results of the survey defining the survey operator in specialty
operators. In order to reach our aims we used literature. The survey operator is considered
statistical data resulted from an enquiry “a key element but also a critical one of
conducted in the Iaşi branch of a public surveys, because his/her attitude and abilities
survey company. can lead to the success or the failure of the
enquiry.” (Graham R. Walden, 2006, p. 116).
The sociologists Traian Rotariu and Petru Iluţ
(2006) write that conducting surveys “implies
that the questions of the questionnaire are
77
read for the respondents, the latter answer and checking incomplete answers. In the
orally, the answers being recorded by the observation stage of a survey the operators
people conducting the field survey”, the so- must also have information regarding the
called survey operators. Vlăsceanu Lazăr, aims of the survey and the final questionnaire,
Zamfir Cătălin et al. (1993) provide another the way of choosing and approaching the
definition. In their opinion, the survey persons that must answer the questions, the
operator is “a person qualified for way the questionnaire must be actually
interviewing persons in sociological enquiries applied and problems must be solved, the
and surveys. In sociological research, the activities that must be carried out after
operators must find the persons that fit the applying the questionnaires. In the stage of
sample, get their consent for the interview, preparing the data for statistical analysis the
asking questions according to the interview survey operator verifies the questionnaires,
guide or the questionnaire and recording the post-codes and stores the data in the
answers.” computer. We can see that by defining the
Adam Kuper and Jessica Kuper (2004) survey operator and identifying his/her tasks
have a different point of view:” the survey we have a primary image of this category of
operator is an indispensable specialist that employees.
contributes with his experience and abilities
to creating connections with the respondents, The work environment of survey operators
explaining the purpose of the survey and
recording the answer of the respondent.” The concept of work environment is
A comparison of these definitions shows very complex. It appears in many articles and
that they are not complete. A survey operator studies by researchers in management and
records not only the answers to his questions organizational psychology. Generally,
but also supplementary observations “environment” means certain “conditions,
regarding the context of the answers and the social, moral or other type of atmosphere,
spontaneous reactions of the respondents. “ambience”. (Vasile Breban, 1987, p. 184)
Moreover, the operator expresses his social There are different definitions of “work
status by the way he/she speaks, by his/her environment” in specialty literature. E.g.
clothes and his/her behaviour. “The Cătălin Zamfir et al. (1980) define it as “the
respondent perceives the social status of the organizational, social and human conditions
operator and adjusts his/her verbal behaviour of each work group, the general ambience of
according to what he/she thinks the operator its activity.” Ekval (1990) has opinions
expects or should learn from similar to those of Cătălin Zamfir et al. (1980)
him/her.”(Chelcea Septimiu, 1975, p. 181) about the definition of “work environment”.
Trying to give our own definition we can He describes the work envieonment as “a
say that a survey operator is a specialist conglomerate of attitudes, experiences and
employed (temporarily or permanently), behaviours that characterizes life in an
according to the purpose of the research, the organization” (apud Eugen Avram, Cary L.
method, the characteristics and the abilities Cooper, 2008). Another author, Păun E.
that he/she has, in the observation stage of a (1999) thinks that work environment means
survey. This definition can be considered “a phenomenon linked to groups and
more complete because the observation stage collective psychology. It refers to the
of a survey does not imply only a dialogue or intellectual and moral conditions of the group
communication, but also a certain (…), to the group’s feelings and perceptions.
methodology. The environment (…) expresses the general
The survey operators’ activity in public attitude to the activities of the organization, to
survey companies implies many tasks: finding work conditions (…), managers and
the respondents, making sure that they colleagues. The environment can be a strong
cooperate, preparing and motivating the mobilising factor for the entire staff or, on the
respondents to answer the questions, asking contrary, a demobilizing factor.”
questions, offering explanations, recording
78
By analyzing the equation developed by The hypotheses of the study

Kurt Lewin (1936) (Lewin’s Equation):
In order to improve the activity of a
B= f(P,E) (1) department of survey operators, we want to
identify the problems they face. This
where B is the behaviour, P the person and E evaluation could be used for adopting a
the environment, we infer that the behaviour management strategy that could ameliorate
depends on the person and the environment. the deficiencies of the department. These
Adapted for an organization, this formula arguments led to checking the following
separates it into three components: employee, hypotheses:
environment and behaviour. The most
important component of the three is the H1: The work conditions, the quality of
employee. Therefore we can infer that the collaboration, the salary package and the
employee plays an extremely important part opportunities of career development have the
in the activities of an organization. The same effect on the degree of satisfaction of the
information he offers can provide an objective respondents with the situation of the work
description of the problems and solutions for environment.
the latter. Eugen Avram and Cary L. Cooper
(2008), agreeing with this approach, write that H2: There are significant statistical
the work environment of an organization ,,is a connections (associations) among the
result of the employees’ perceptions, that variables that express the work environment
have a major influence on their behaviour of the survey operators department at a
during a certain period of time, and represents certain time, the problems and the solutions
both a individual interpretation and a offered by the employees of that department.
collective interpretation of the organizational
culture.” The research method
In specialty literature there are many
authors that define the significant variables of In order to obtain relevant information
the work environment. E.g. Teresa M. that could allow us to identify or use solutions
Amabile et al. (1996), Göran Ekval (1996), or long term strategies, we have used
Garry A. Gelade and Mark Ivery (2003), A. statistical data gathered from 7th January
Neal et al. (2000), Ticu Constantin and Ana 2008 to 20th February 2008. The necessary
Stoica Constantin (2002), Cătălin Zamfir et information about the staff working as survey
al. (1980) and Constantin T. and Zaharia D.V. operators have been offered by the Human
(2007). Resources Department of the company. Thus
By reading these authors’ works we can we have found out that there are 107 survey
see that some of them have identified as operators and that the staff fluctuation is very
variables that define the work environment high. Therefore, the new-comers (still in
internal communication, organizational training) have not been included in the
structure, political environment, development survey, because they had not been part of the
opportunities, evaluation, promotion, help or group for long enough and they did not have
work satisfaction. Other authors emphasize enough experience or information to answer
management efficiency, authority, the questions.
involvement, sociability, bureaucratic The estimate of the resources necessary
procedures or work standards. for the enquiry has been made with the help
Taking these into account, if we want to of a schedule of the activities. The monitoring
analyse the work environment of survey of the activities of the enquiry has been made
operators, we must evaluate their degree of with the help of a time budget, while for the
satisfaction with work conditions, other category of resources we have made an
collaboration, salary package and career aggregate budget.
development opportunities. The technique we have used in order to
interview the survey operators was face to
79
face. Each operator has been stopped from expresses the degree of satisfaction of the
work and invited to another room to answer survey operators with the existing situation:
the questions. This aspect was very important Q9 (Work environment), Q10 (Quality of
to make sure there is a larger amount of collaboration), Q11 (Salary package
objectivity and appropriate conditions for the satisfaction) and Q12 (Career management).
interview. These variables were given in the data base
The questionnaire was made of numerical codes for each variant of answer.
questions that allowed us to gather objective We used the simple ordinal scale for this.
information (age, sex, studies) and subjective
information (opinions, attitudes, motivations). Data analysis
A short introduction was made in order to
present the aim of the survey to the To test the first hypothesis, we estimated a
respondent, then there were questions about multiple regression model. This model
the person’s profile (sex and age), while at the assumes that the errors ε are normally
end, in order to make a better statistical distributed with a mean of zero, a common
classification, we placed the studies and the variance, and are uncorrelated. The general
seniority in the company. The questionnaire model is written as:
has questions about the work environment,
the quality of collaboration, the salary Y = α + β1X1 + β2X2 + ....+ βkXk + ε (2)
package and the career management. Some
people hesitated when answering somewhat where:
awquard questions. Y - dependent variable;
In order to make sure that this X1, X2, ...., Xk - independent variables
(predictors);
questionnaire is totally suitable to the ε- error variable;
objectives and without words leading to α, βk - regression coefficients.
misinterpretations and confusion, we have (William D. Berry, 1985, p.21)
conducted a pre-survey on an echantillon of Variables which had no significant
20 survey operators. We have paid special effect on the dependent variable Q1 in the
attention to the authenticity and quality of the exploratory regression were dropped from the
data, aspects that made the survey more final equations. For this we used the
efficient. All the employees of the survey Backward elimination method. We began
operators department accepted to express with all candidate variables in the model, and
their opinions, therefore we made 107 at each step, we eliminated the least useful
interviews. predictor (lowest F–to-remove). Variables are
removed until an established criterion for the
Variables F no longer holds.
In order to check the second hypothesis
As we want to make a general estimate we can use many methods of
of the existing situation of the survey multidimensional statistics: factorial analysis,
operators department, we choose the multidimensional scales, discriminator
following variables: Q1 (Work environment analysis, multiple correspondence analysis
satisfaction), Q2 (Cause of the problems), Q3 etc. Taking into consideration the purpose of
(Future evolution), Q4 (Solutions), Q5 (Sex this study and the nature of the variables we
of the person), Q6 (Age), Q7 (Studies) and shall analyse, we have thought that the most
Q8 (Seniority). In order to classify the appropriate method of multivariate analysis is
operators according to their belonging to a that of multiple correspondence.
characteristic we have used nominal scales. It is one of the statistical methods that
This implied giving a code to each reduce the dimensionality resulted from the
characteristic. whole of the initial data. It has been
Taking into account the dimensions of developed by Jean-Paul Benzécry in 1960-
the work environment identified in specialty 1970. The method of multiple correspondence
literature, the second category of variables analysis implies a large number of variables,
80

so it is considered an extension of Y1 = 1,250 + 0,406 x2 + 0,338 x3 (3)
correspondence analysis. Generally, its
purpose is to emphasize the coordinates 
Replacing the Y1 and xʼ s with variable
regarding the connections of the changes of
names we have:
the variables and to find the measures that
delimitate the categories of variables as much 
as possible. This implies that homogenous Q 1 =1,250+0,406Q9+0,338Q10 (4)
measures are projected close together, while
those that do not belong to the same category Eigenvalues obtained for this model are
are projected far apart on the graph. (Donna closed to 0 and we can say that the variables
L. Hoffman, Jean de Leeuw, 1992, p.260) are highly intercorrelated. Continuing with
the interpretation of the estimated equation,
Results we see that the coefficient values obtained for
Q10 and Q11 are positive, but not high. In
By applying the multiple regression this case, we can say that, on average, the
analysis, in which the dependent variable was degree of satisfaction of survey operators with
Q1, we obtained the following results: the work environment increases if the quality
- Q11 has the highest correlation of collaboration and the salary package
(0,531) with the dependent variable Q1; Q10, increase.
the next largest (0,518); and the Q9 ratio, the By applying multiple correspondence
lowest (0,050). analysis we emphasizes the coordinates
- The value of R2 for the model with all regarding the connections of the analysed
eight predictors in step 1 is 0,418 and variables. We notice in table 1 that for the
adjusted R2 is 0,395. R2 for the last model Cronbach Alpha Coefficient we got high
with two variables is 0,398, a negligible drop values, which proves that the scales of the
from 0,418 for the full model. We notice that analysed variables have a good level of
if we include more and more variables in a fidelity. We also notice that the first
model, R2 and standard errors will continue to dimension accounts for 35,05 % of the inertia
increase. of the cluster of points while the second
- We obtain for F statistic high values dimension accounts for 30,21 %.
and for associated probability (Sig.) small
Table 1 Values for the first two vectorial axes
values (<0,0005). These results denote that
each coefficient is 0 is rejected, but does not
imply that each of the independent variables
makes a meaningful contribution to the fit of
the model.
- In the Coefficients table we obtained
results regarding each step in the model
selection process. It contains the coefficients
and statistics for the equation at step 1, which
includes all four candidate predictors. For this
four variable model we obtained one small t In figure 1 we notice that the variables
statistics and several low values of tolerance. that have values belonging to certain
Thus, Q9 and Q12 are candidates for removal. categories are close to the origin, while the
The backward method removes Q9 first variables that have unique characteristics are
because it has a small t and the biggest projected far from the origin. Looking at the
associated probability (Sig.=0,251). The values of the coefficients for the first
statistics obtained for Model 2 show that the dimension (the horizontal axis) of the graph,
variable Q12 has the smallest t (1,625), so it we infer that the survey operators are rather
is removed next. The model identified by the satisfied (3,673) with the work environment.
backward method is: They say that the problems of the
department result from the insufficient
81
qualification of the staff in this field (1,580), dimensions having big values of the
but also to the pursuit of personal interests. coefficients.
The solutions recommended by the
employees of this department aim at a radical Table 2 Discrimination according to variables
change of this situation (1,744). As for the and dimensions
future evolution, the operators think that the
situation will worsen (1,005) and that will not
change (0,870). This diagnosis is given by
persons with 1-2 years seniority, aged 25-30,
with a master’s degree.
Figure 1 Graphical representation of the variables
In the case of the other dimension 9the

vertical axis), by analyzing the values of the
coefficients that we obtained we can see that
the operators of this category are rather
satisfied with the situation (0,775). In their
opinion the problems that appear frequently Figure 2 Object scores plot
are the result of the lack of constant
evaluation (1,422) and of the pursuit of A delimitation of the categories of
personal interests (1,245). This category variables according to the dimensions is made
includes operators that have been working in in figure 2. We infer from figure 2 that the
this company for less than 6 months, are over variables Q1, Q7 and Q8 have a high
30 and are studying for a master’s degree. value/score of delimitation for the first
Looking at the results in table 2, we dimension and a low value/score for the
notice that the highest values of the second dimension. The variables Q5 and Q6
coefficients for the first dimension are are very close to the origin of the graph and
recorded for the variables Q4 (0,775), Q1 have the smallest influence. Q2 and Q4 are
(0,685) and Q2 (0,585). For the second the variables with rather high values/scores
dimension the highest value of the coefficient for both dimensions.
is recorded in the case of the variable Q4 We notice that in the case of the
(0,884). variables Q4 and Q2 there is a very strong
From table 2, we see that variables Q4 statistical connection.
and Q2 make a good delimitation for both
82
Conclusions [8] Ekvall Göran, Organizational Climate for

Creativity and Innovation, European Journal of
Work and Organizational Psychology, 5 (I), 105-
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83
THE CHOICE FOR SOCIAL DISCOUNT RATE.
Assistant professor, Ioan Alin Nistor, PhD

Faculty of Business, “Babes-Bolyai” University
Cluj-Napoca, Romania
e-mail: ioan.nistor@tbs.ubcluj.ro
Abstract: Discounting is used to mean any process of revaluing a future event, service or product, to give a present
equivalent value (present value).While there are many ways of determining a discount rate for private investment, when
it comes to governments, things turn more complicated. Sometimes data is elusive or hard to interpret or there might be
inconsistencies among sets of stated and imputed discount rates. Therefore politically derived discount rates are a
cause for doubt and are unlikely to reflect future values appropriately.
Theories proved that the decision of individuals in their political capacity as citizens are unlike those made in their
economic capacity as consumers. Experiments found that individuals chose a lower discount rate as being appropriate
for public than for personal decisions.
Discounting helps in the process of investment analysis and other decisions between present and future. Those who
analyze projects need to judge which ones are worthwhile so they need to compare the value of early costs with that of
benefits and values of cash flows expected to be received at different points in time. Only when all cash flows have been
discounted to equivalent values at the same point in time can discounted benefits be evaluated.
Looking at some examples and at the Rosia Montana Project, a large scale and long term project, the paper evaluates
some of the “choices for social discount rate” raises some questions and brings suggestions towards the steps that the
governments (and particular Romanian) should do, to bring objectivity and transparency in investment decisions.
Keywords: Discount rate, risk, investment, social policy, decision
JEL Classification: H43, G32

The effects of discounting are easily set out.
Introduction Suppose that, for whatever reason, we as
humans prefer to have something good now,
“Social Discount Rate is a measure used to rather than on the same date next year. But
help guide choices about the value of soon as the element of time will be present
diverting funds to social projects. It is defined and a postponement will interfere, it will be
as the appropriate value of r to use in necessary to quantify “how much” better it is
computing present discount value for social to have it now.
investments” (Gruber, Jonathan (2007). Discounting helps in the process of
Determining this rate is not always easy and investment analysis and other decisions
can be the subject of discrepancies in the true between present and future. Those who
net benefit to certain projects, plans and analyze projects need to judge which ones are
policies. There are a number of qualitative worthwhile so they need to compare the value
differences between social and corporate of early costs with that of benefits and values
discount rate and evaluation of projects of cash flows expected to be received at
associated with them. Of course, the different points in time. Only when all cash
governance of social project funding is flows have been discounted to equivalent
different, because estimating the benefits of values at the same point in time can
social projects requires making ethically discounted benefits be evaluated.
subtle choices about the benefits to others. Sagoff (1988) argues that the decision of
Discounting is used to mean any process of individuals in their political capacity as
revaluing a future event, service or product to citizens are unlike those made in their
give a present equivalent value (present economic capacity as consumers.
value). The process of discounting reflects the Experimentally, Pope and Perry (1989) found
complexities of financial markets, of natural that individuals chose a lower discount rate as
resource availability but also of human being appropriate for public than for personal
psychology, investment behavior and aversion decisions. When is no stated, how does a
towards risk. government’s choice of discount rate may be
discerned?
84
What social discount rate has been or will be is the social discount rate for all funds.” He
adopted by a government is not always clear. chooses as an indicator the value of “base-
It cannot be said that the citizens voted level income” (the poverty level at which the
directly for a particular discount rate, since government intervenes to increase household
even the discount rate can be one of the income).
reasons for electoral success. Unido 2008, Harou 2003 suggest that the
While the discount rate (where it has been appropriate discount rate can be found by
chosen) may be well known to government studying governmental choices of individual
and academic economists, and accessible in public projects. A government should not
public documents, it is rarely a matter of select an investment whose social rate of
widespread public knowledge and discussion. return is less than the social discount rate (and
This signifies more probably the mysterious whose NPV in therefore negative). The lowest
nature of investment decision than a lack of social rate of return on projects accepted in
public concern about resource allocation. On the past therefore indicates the upper limit of
the other side, the interest rate is of course the social discount rate and if investment is at
subject to frequent and open critical comment, optimal level, it should equal the social
and its effects on well-being are directly discount rate.
experienced by citizens through loan However, (Harou 2003) states that there are
repayments and level of economic activity. several problems that arise:
But interest rate is an instrument of monetary - The past social discount rate might
policy, which may have only a loose have been different. If so, an
association with the discount rate adopted by alternative is to appraise the rate of
the government in relation to investment return on projects currently being
policy. implemented, or passed as acceptable
These difficulties make it debatable whether - Governments choose projects to meet
there is direct democratic legitimation for a many objectives: social,
government’s discount rate. Nonetheless, it environmental, macroeconomic and
might be argued that a knowledgeable, thus strategic values should be
rational and responsible government will included in the rate of return
chose the optimal set of policies for the well- By analogy with the upper limit, the lower
being of its citizens, including policies of bound of the social discount rate should be
investment and resources allocation. the highest social rate of return found among
projects which have been explicitly rejected
Social policy and the discount rate by government. However, such projects may
have been rejected because (1)their social rate
Since the rates of saving and of economic of return was less than the social discount rate
growth affect the balance between present and or because (2)the NPV of the project was less
future consumption, policy choices affecting than that of alternative public sector projects.
these variables may reveal a government’s There are several reasons why the social
preferred discount rate. Walshe and Daffern discount rate should be lower than the social
(1990, p.26) suggest that the social discount rate of return on public investment.
rate “will be slightly in excess of the growth A hypothetical selection made from the
rate of the economy”. projects listed in Table 1 illustrates how this
Scott (2007) judges the social discount rate to rule can make sense of otherwise difficult
be both the minimum acceptable rate of return decisions. Suppose a government chooses
on low risk commercial projects and the rate project A and project C, but rejects project B
at which the value of government revenue and and project D. Rule 1 says that the social
expenditure is taken to decline over time. discount rate is greater than the 4.7% IRR of
Scott argues that a rational government rejected project B, but less than the 2.9% IRR
equalizes the marginal value of funds applied of accepted project A: 2.9% > r > 4.7%.
to each purpose: if “the percentage rate of fall On the other hand, using rule 2, a social
in value of one purpose can be measured, this discount rate less than about 2% makes the
85
NPVs of both A and C higher than the NPVs Rule 2, allows a greater range of project
of either B or D, and the choice is rational. selections to appear rational.
Table 1. Performance of four projects (NPV in Euro). Example.
Project A Project B Project C Project D
IRR 2.9% 4.7% 8.5% 3.6% & 38.2%
NPV 10% -999 000 -738 000 -174 000 520 000
NPV 5% -870 000 -93 000 814 000 301 000
NPV 3% -67 000 861 000 2 142 000 -235 000
NPV 1% 8 972 000 5 812 000 8 803 000 -3 426 000
Risk in public investment. Quantifying risk The Capital asset pricing model (CAPM)
adjustment attempts to quantify the above discussed
factors. A discount premium is determined for
The treatment of risk in public investment has the risk of an individual investment,
been widely debated. Arrow and Lind (1996) according to how its returns vary with those
indicate that risky projects in the public sector of a diversified market portfolio.
should be discounted at a riskless rate, For example, a riskless investment might be
reasoning that returns from a particular acceptable if it earns 4% annually, but a risky
project may not be correlated with those of one, only if it earns 10% annually. This could
other public projects. Thus the only risk is mean that either the IRR or the present value
specific risk, which is spread among so many of risky investments is required to be 2.5
taxpayers as it become insignificant. times that of a riskless investment.
On the other side Hirshleifer (1993) argues on Suppose a forest project, giving single
the contrary, that discounting at the riskless revenue after 50 years, is riskless and that the
rate of return ignores the opportunity cost of riskless discount rate is 4%. For each 1000
subsidizing risky private projects. Arrow and Euro invested, the investment is acceptable if
Lind consider that this leads simply to revenue exceeds 7106 Euros (NPV>0). If this
transfer of risk: the advantage of public is systematically risky, and if risk premium is
investment is that it relives not only the interpreted as a risk charge, it is acceptable
private sector, but the whole economy of the only if revenue exceeds: 7106 Euro X 2.5 =
cost of risk-bearing. If we compare the two 17.767 Euro.
positions we can conclude that the But this, however, represents an IRR of only
relationship between public and private risk- 5.9%, not 10%. To achieve an IRR of 10%,
adjusted rates depends on whether risk can be the required revenue would be 117.391 Euro.
eliminated by a change of economic That represents an increase on riskless
organization (Sandmo 2005) and on whether revenue by a factor not of 2.5 but of 16.5.
public projects have a social insurance value CAPM has also been subject to criticism but
(Grinols, 2001). remains most widely discussed and applied
Capital asset pricing model (CAPM) is used tool for adjusting discount rates for risk.
to determine a theoretically appropriate
required rate of return of an asset, if that asset Rosia Montana Project
is to be added to an already well-diversified
portfolio, given that asset's non-diversifiable We presented some of the ways and principles
risk. The model takes into account the asset's that governments should follow while
sensitivity to non-diversifiable risk (also assessing the impact of an investment. A very
known as systematic risk or market risk), big challenge for the present or future
often represented by the quantity beta (β) in Romanian government is or will be the Rosia
the financial industry, as well as the expected Montana Project. Due to the large scale of the
return of the market and the expected return project as well as the impact of it, we consider
of a theoretical risk-free asset.(source: that a transparent and thorough analysis
Wikipedia) should be carried out and not only the results
of the analysis should be presented to the
86
large public, but also the methods used to material consideration in making decisions
reach to these results. which are politically awkward, that future
As an example we provide here some of the generations are not among politicians’ views.
data that is showed on the website of “Rosia A government may of course be purely
Montana” Gold Corporation. It is stated there disinterested and act for the long-term good of
that “The business plan of the mining project present citizens and on behalf of future
provides for total benefits of approximately 4 generations, without regard to its own
billion dollars for the Romanian economy”. popularity. Still, even such a conscientious
We also find out that 1.8 billion USD will go government would have a plausible
directly to the State budget. These funds justification for offering a programme which
include the dividends obtained by the appeals to the present electorate. Because if it
Romanian State, which holds 20% of the does not, another party would be elected to
RMGC’s assets, royalties paid by the power, with an even shorter time perspective.
Corporation, as well as other taxes and duties The party offering a plausible short-term
paid directly to the local, regional and programme of benefits is favored over the one
national State budget. The remaining 2.2 with long-term views.
billion USD will be spent in Romania for Governments are expected to weight the
human resources, construction, electricity, interests of their own citizens more than those
materials, transportation, reagents, spare parts of citizens of other countries. What is clear at
and others. These amounts are a direct this point is that politics and ethics do not
investment in the Romanian economy and align.
will reach the workforce, entrepreneurs and While there are many ways of determining a
Romanian companies which will provide discount rate for private investment, when it
products and services for the company, during comes to governments things turn more
the construction and operation phases. complicated. Sometimes data is elusive or
The money looks good, but has the hard to interpret or there might be
government correctly evaluated the project? inconsistencies among sets of stated and
Which is the value of the discount rate used? imputed discount rates. Therefore politically
derived discount rates are a cause for doubt
Short conclusions and suggestions and are unlikely to reflect future values
appropriately.
Before any discount rate is adopted, the An example in the direction of governments
assumptions about government decision to bring objectivity in investment decisions
making should be that is knowledgeable, and thus deriving objectivity in discount rate
rational and responsible. chosen comes from the following US
But governments are not always completely agencies. The two most prominent U.S.
knowledgeable about all pertinent data on government agencies involved in benefit-cost
each project they choose or reject, therefore analysis are the Congressional Budget Office
employing economists to undertake cost- (CBO) and the Office of Management and
benefit analysis should be a step toward Budget (OMB). CBO's mandate is to provide
correct evaluation. The absurd situation may the US Congress with: Objective,
arise when a government employs economists nonpartisan, and timely analyses to aid in
to supply analysis, such as an objective economic and budgetary decisions on the
discount rate for evaluation projects, and wide array of programs covered by the federal
economists indirectly ask the government budget and the information and estimates
about the previous choice of projects. required for the Congressional budget
To achieve re-election, or avoid overthrow, a process. The CBO makes in this way
government must please the present recommendations of a rate depending on the
population. This means either satisfying its project. CBO assists the House and Senate
desire for early consumption, or persuading it Budget Committees, and the Congress more
that sacrifices for the sake of the future should generally, by preparing reports and analyses.
override short-term interests. It will usual be a In accordance with the CBO's mandate to
87
provide objective and impartial analysis,

CBO's reports contain no policy
recommendations. (Quoted from CBO
website, CBO’s Role and Work).
Bibliography:
[1]. Copeland T., Weston J, Financial Theory and

Corporate Policy,2009
[2]. Gruber, J., “Public Finance and Public Policy”
2007 "Chapter 8: Cost-Benefit Analysis", p.
201-223
[3]. Harou M. “On the social discount rate.” Can J.
For Res.
[4]. Hirshleifer, D., "The Blind Leading the Blind:
Social Influence, Fads, and Informational
Cascades," University of California at Los
Angeles, 1993
[5]. Lally, M., The Cost of Equity Capital and its
Estimation, McGraw-Hill Series in Advance
Finance, 2000
[6]. Laibson, David I. “Hyperbolic Discount
Functions, Undersavings, and Savings Policy.”
Working Paper NBER, 2009
[7]. Pope, C and Perry G., “Individual versus social
discount rates in allocating depletable natural
resources over time” 1989, Elsevier Science
Publishers B.V.
[8]. Sandmo, Motivation and causal inferences in
the budgetary control. National Bureau of
Economic Research, Working Paper, 2005
[9]. Sagoff P. “Price, Principle, and the
Environment” 1988, Cambridge Studies in
Philosophy and Public Policy
[10]. Stiglitz, J, “Discount Rates: The rate of discount
for benefit-cost analysis and the theory of
second best.” in Cost-Benefit Analysis 2nd
Edition, 2003
[11]. Unido K., Guidelines for project evaluation,
Unites Nations Industrial Development
Organization, New York, p138
[12]. Young, L., Determining the Discount Rate for
Government Projects, New Zealand Treasury
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[13]. Walshe, G., Daffern, P.: Managing cost-benefit
analysis. London: Macmillan. 1990
88
ASPECTE PRIVIND CONCURENŢA PE PIAŢA TELEFONIEI DIN ROMÂNIA ÎN

CONTEXTUL U.E.
Asist. univ. drd. Adrian Liviu SCUTARIU

Conf. univ. dr. Carmen NĂSTASE
Ec. drd. Alina BĂLAN
Universitatea “Ştefan cel Mare” Suceava, România
E-mail: livius@seap.usv.ro
carmenn@seap.usv.ro
alinab@seap.usv.ro
Abstract: Two big companies, Orange and Vodafone dominate the Romanian mobile telephony market and are
suspected of entertaining of a possible collective ruling position. The increasing of the third big sized company,
Cosmote, brings competition benefic effects in this market. Along some smaller companies, Romtelecom still dominates
the Romanian fix telephony market. The terminate tariffs in the E.U. are very heterogenuous. The European
Commission shows that this fact leads to the impossibility of free competition manifestation in the E.U. and to
exaggerated big tariffs in some countries. Also, the terminate tariffs are higher in the mobile networks compared to the
fix ones, leading to the indirect subvention of mobile networks. The Commission proposes a harmonization of tariffs in
the E.U.
Keywords: telephony market, competition, European Comission, terminate tarrfis, Romania
JEL Classification: L99
Introducere pe locul al patrulea Telemobil (Zapp) - peste

500.000 de abonaţi (ANRCTI, 2008).
Lucrarea de faţă surprinde situaţia Oferta pentru servicii voce a celor
existentă pe piaţa telefoniei la momentul două companii este destul de diversificată,
actual în România, pentru ca mai apoi aceasta atât pe segmentul postpaid (abonament), cât şi
să fie plasată în contextul Uniunii Europene, pe segmentul prepaid. Se remarcă orientarea
unde se încearcă uniformizarea sub aspectul către client prin pachete personalizate după
tarifelor, în scopul unei promovării unei nevoile clientului – de exemplu o gamă largă
concurenţe loiale şi a unor tarife acceptabile de extraopţiuni, minute în grup, pachete de
pentru consumatori. Din perspectiva U.E., minute în reţea sau în alte reţele. După ce au
ţara noastră se află printre acele ţări ale U.E. ajuns să domine telecomunicaţiile mobile –
cu tarife de interconectare exagerate, fapt care voce, Orange şi Vodafone se orientează acum
se reflectă în preţurile finale. şi spre apelurile 3G, servicii de transfer date
(de exemplu internet mobil) sau servicii
Concurenţa pe piaţa telefoniei mobile şi multimedia.
fixe – principalii operatori din România Companiile mai noi încearcă să-şi
mărească cota de piaţă lansând noi oferte.
În România, piaţa telefoniei mobile a avut o Foarte interesantă este traiectoria companiei
dezvoltare explozivă, întrecând adesea chiar Cosmote, firmă cu capital majoritar grecesc,
şi unele dintre mai optimiste aşteptări; ca care au lansat o ofertă destinată utilizatorilor
urmare, operatorii de pe această piaţă au avut de cartele. Relansarea Cosmote (fostul
profituri uriaşe. Rata de penetrare a urcat Cosmorom), de la finele anului 2005 a adus
foarte mult, dar piaţa încă mai are potenţial, un plus clar pieţei de telefonie mobilă. Piaţa
nefiind încă saturată. Piaţa telefoniei mobile telefoniei mobile a devenit tot mai dinamică
din România este dominată de Orange şi odată cu această relansare agresivă.
Vodafone care sunt lideri detaşaţi. Orange Prevederile spun că această piaţă va creşte şi
România are 9,31 milioane de utilizatori, iar în anii următori, deoarece sunt numeroase
Vodafone România 8,579 milioane de clienţi. ţările în care telefonia mobilă are o rată de
Pe locul trei în clasament se află Cosmote penetrare ce depăşeşte 100%. Probabil că
România cu trei milioane de utilizatori şi iar acesta a fost şi motivul care i-a determinat pe
cei de la Cosmote să investească în România.
După ce la lansare au mizat pe un abonament dominantă a Romtelecom în sectorul

de trei euro şi pe tarif unic, indiferent de telefoniei fixe, la nivelul segmentului de
reţea, acum Cosmote si-a propus sa acces şi al celui de apeluri naţionale, în
declanşeze un atac în forţă pe segmentul condiţiile în care acest operator avea la
prepaid, care a început cu extraopţiunea 2000 sfârşitul anului 2007 o cota de piaţă de 74%
minute în reţea pentru 3 euro pe lună. După din numărul de linii de acces ale persoanelor
epuizarea acestor minute, tariful perceput fizice şi 80% din liniile de acces ale
pentru un minut de convorbire este de 0,16 persoanelor juridice (ANRCTI, 2008).
euro, indiferent de reţea, zi sau interval orar. Pe fondul renunţării la liniile
Strategiile se schimbă, iar ritmul în care se telefonice fixe ale Romtelecom de către
mişcă industria telefoniei mobile devine tot numeroşi clienţi, în favoarea reţelelor mobile,
mai alert. Nou relansatul operator încearcă sa în special datorită tarifelor ridicate, compania
atragă cât mai mulţi clienţi prin oferte demne îşi reformulează oferta, care acum include de
de luat în seamă, ce nu lasă indiferentă exemplu convorbiri nelimitate în orice reţea
concurenţa. fixă. Măsuri de acest gen au avut ca rezultat
Telefoanele moderne, unele chiar de nu numai stoparea pierderii numărului de
ultima generaţie, sunt tot mai prezente în clienţi, ci şi creşterea numărului acestora.
ofertele operatorilor, care dau deja telefoane Asemenea oferte – convorbiri în orice reţea
gratis pentru anumite abonamente. Ideea de a fixă - au şi alţi operatori precum UPC.
oferi aparate tot mai performante gratis este Romtelecom, ca şi alte companii importante
prezentă de mult timp atât în piaţa mondială precum UPC, RCS & RDS se concentrează
cât şi la noi ca tendinţă pentru operatori. acum pe oferte de pachete de servicii
Aceştia atrag astfel clienţii pentru ca mai apoi (telefonie fixă, internet şi televiziune prin
să obţină profit din serviciile oferite unui cablu).
număr cât mai mare de utilizatori.
Compania Zapp pregăteşte de Dinamica concurenţei pe piaţa telefoniei
asemenea servicii noi. Priorităţile Zapp sunt, mobile şi fixe din România
pe lângă serviciile de voce, serviciile de date
şi serviciile de Internet de mare viteză, care se Piaţa telefoniei mobile este împărţită
concentrează pe ofertele de comunicare în între patru operatori, dintre care doar doi au
grup şi diversificare. S-a lansat oferta prepaid un cuvânt de spus Orange şi Vodafone. La
pentru Internet mobil în banda largă, prin sfârşitul anului 2006, cei doi mari operatori
Zapp Internet Express Card, şi există aveau aproximativ 95% din piaţă (ANRCTI,
posibilitatea lansării unei oferte prepaid 2007), dar între timp situaţia s-a schimbat pe
pentru voce. fondul revenirii celui de al treilea operator,
Anul 2008 aduce lansarea celui de-al Cosmote România. Cu toate acestea, există
cincilea operator de telefonie mobilă – semne ale unei posibile poziţii dominante
DigiMobil. Acest serviciu este oferit de RCS colective a celor doi mari operatori din
& RDS, companie de referinţă pe piaţa sectorul telefoniei mobile, Orange şi
furnizorilor de internet, telefonie fixă şi cablu. Vodafone, deci un nivel al concurenţei scăzut,
Serviciul a avut parte de o lansare discretă, după opinia preşedintelui Autorităţii
fiind oferit deocamdată doar clienţilor firmei, Naţionale de Reglementare în Comunicaţii şi
la pachet cu alte servicii, fără a plăti Tehnologia Informaţiei (ANRCTI), Dan
abonament pentru telefonul mobil. Georgescu.
În ceea ce priveşte piaţa telefoniei "Analiza diagnostic a evidenţiat
fixe, lucrurile încă nu se prezintă aşa cum ar nivelul ridicat de concentrare a pieţei de
trebui. Liberalizarea pieţei telefoniei fixe nu a telefonie mobilă, stabilitatea cotelor de piaţă,
ajuns încă la efectele scontate. Nu există încă nivelul ridicat al barierelor la intrare,
o concurenţă reală pe această piaţă, similarităţile de comportament şi
determinată şi de faptul că mulţi din omogenitatea ofertelor celor doi mari
potenţialii clienţi au posibilitatea de a alege operatori, nivelurile semnificativ mai mari de
din maxim 2 operatori. Se remarcă poziţia profitabilitate în raport cu competitorii lor de
90
pe acelaşi segment şi chiar cu subsidiarele din operatorilor Romtelecom, Vodafone, Orange

alte state ale aceloraşi grupuri", a afirmat şi respectiv RCS&RDS obligaţia de
preşedintele ANRCTI. Preşedintele ANRCTI fundamentare a tarifelor de interconectare în
a adăugat că, pe fondul concurenţei reduse, se funcţie de costuri.
remarcă nivelul nesatisfăcător al inovaţiei în În sectorul telefoniei fixe, principalele
acest domeniu, determinat de gradul limitat deficienţe constatate de analiza diagnostic
de disponibilitate şi utilizare a serviciilor privesc nivelurile scăzute de satisfacţie ale
avansate, fluiditatea efectivă scăzută a pieţei, consumatorilor şi posibilităţile limitate de
nivelurile relativ ridicate ale preţurilor cu care aceştia dispun în privinţa alegerii
amănuntul şi transparenţa redusă a acestora. furnizorilor (90% dintre clienţi sunt deserviţi
Reprezentanţii celor două mari de unul sau de cel mult doi operatori).
companii incriminate susţin că nu deţin o Romtelecom deţine încă o poziţie dominantă,
poziţie dominantă colectivă, iar declanşarea având o cotă de piaţă în scădere (de la 98,9%
unei investigaţii nu-şi are sensul. Şi Consiliul la începutul anului 2005, la 71,3% în
Concurenţei a demarat o anchetă care-i 2008)(ANRCTI, 2008). Conform
vizează pe cei doi operatori, tot pe acelaşi preşedintelui ANRCTI, şi în acest sector
considerent, anchetă care se află în derulare. preţurile sunt relativ ridicate şi cu un grad
În cazul în care, cele două firme vor fi găsite redus de transparenţă pentru consumatori. În
vinovate, li se va aplica o amendă maximă plus, se menţine în continuare decalajul de
egală cu 10% din cifra de afaceri înregistrată acces dintre mediul urban şi cel rural.
în anul precedent săvârşirii faptelor. Datele disponibile ne arată o mare
De asemenea, şi tarifele de diferenţă în ceea ce priveşte evoluţia pieţei
interconectare (ANRCTI, Raport Anual 2007, telefoniei fixe şi a celei mobile, atât ca număr
p. 40) practicate de operatorii dominanţi au de utilizatori, cât şi ca rată de pentrare. Cea
ajuns în atenţie încă din 2003, odată cu fixă avea la începului anului 2008 o rată de
liberalizarea pieţei romåneşti de comunicaţii penetrare de aproape 50% şi 4,26 milioane de
electronice, iar problematica stabilirii utilizatori, pe când cea mobilă depăşea rata de
nivelului optim al acestora a căpătat o penetrare de 100% cu 22,9 milioane de
semnificaţie tot mai mare, pe măsura uitilizatori. Se remarcă de asemenea scăderea
încetinirii ritmurilor de creştere a pieţei şi a până în 2006 a numărului de utilizatori ai
intensificării concurenţei pentru atragerea de telefoniei fixe şi creşterea continuă a
clienţi. În scopul prevenirii unor abuzuri ale numărului utilizatorilor reţelelor mobile
operatorilor dominanţi, ANRCTI a impus (figura nr.1, figura nr.2).
Figura nr. 1. Număr linii servicii telefonie fixă. Rata de penetrare
Sursa: ANRCTI, Raport Anual 2007, p.62
91
Figura nr. 2. Numărul total de utilizatori de servicii de telefonie mobilă. Rata de penetrare
Comparativ cu alte ţări din U.E., rata medii de 109%, calculate la nivelul tuturor
de penetrare înregistrată în România, la finele ţărilor UE15 (figura nr. 3).
anului 2007 era cu puţin sub nivelul ratei
Figura nr. 3. Rata de penetrare a serviciilor de telefonie mobilă din România comparativ cu ratele de penetrare
la nivelul ţărilor UE 15 şi cu rata medie de penetrare la nivel UE 15
Politica comisiei europene referitoare la practicate în UE. Tarifele de terminare a

tarifele telefoniei mobile apelurilor în reţelele de telefonie mobilă
variază de la 0,02 EUR/min (in Cipru) până la
Comisia Europeană lansează o peste 0,18 EUR/min (în Bulgaria) şi sunt de 9
consultare publică privind reglementarea ori mai ridicate decât tarifele de terminare a
viitoare a „tarifelor de terminare a apelurilor apelurilor în reţelele de telefonie fixă (in
vocale” în UE, pe baza unui proiect de medie 0,0057 EUR/min pentru terminarea
recomandare a Comisiei cu privire la tarifele apelurilor locale) (http://www.euractiv.ro). Şi
de terminare a apelurilor. România se află printre ţările care au tarife de
Tarifele de terminare a apelurilor terminare ridicate, care se regăsesc în tariful
vocale sunt tarifele en gros aplicate de final pe care îl plăteşte clientul. Aceasta este
operatorul unui client care primeşte un una din cauzele pentru care în România există
telefon operatorului reţelei persoanei care tarife destul de ridicate la telefonia mobilă
iniţiază apelul. Aceste tarife suportate de comparativ cu alte ţări din UE. Aceste
consumatori, sunt determinate de intervenţia diferenţe împiedică libera concurenţă între
autorităţilor naţionale de reglementare în operatorii din diferite ţări, precum şi
domeniul telecomunicaţiilor. La momentul concurenţa dintre operatorii de reţele de
actual există diferenţe mari între tarifele
92
telefonie fixă şi operatorii de reţele de a elementelor de cost care ar trebui luate în

telefonie mobilă. considerare de către autorităţile naţionale de
Tarifele de terminare a apelurilor atât reglementare la stabilirea tarifelor de
de diferite în UE, constituie bariere serioase terminare a apelurilor, în vederea unei
în calea realizării unei pieţe unice de metodologii eficiente de calcul al costurilor şi
telecomunicaţii la nivel european, care ar fi a unei reglementari simetrice (ceea ce
benefică atât pentru stimularea concurenţei, înseamnă ca, pe teritoriul aceleaşi ţări, se
cât şi pentru consumatori, consideră Viviane aplică aceleaşi plafoane tarifare atât pentru
Reding, Comisarul UE pentru operatorii de telefonie mobilă, cât şi pentru
telecomunicaţii. După opinia ei, în 3 ani e operatorii de telefonie fixă)
posibilă, “reducerea costurilor pentru (http://www.euractiv.ro). Aceste măsuri vor
apelurile telefonice în reţelele mobile cu contribui la crearea unui mediu de
aproximativ 70% faţă de nivelul actual.” reglementare eficient şi la evitarea
Scăderea tarifelor de terminare a distorsiunilor, de exemplu a subvenţiilor
apelurilor va intensifica concurenţa şi va încrucişate din partea clienţilor din sectorul
aduce tarife en detail mai scăzute. Comisarul telefoniei fixe pentru cei din sectorul
european pentru concurenţă, Neelie Kroes telefoniei mobile.
consideră că Recomandarea Comisiei va Iniţiativa Comisiei a câştigat sprijinul
elimina nefuncţionalităţile privitoare la imediat al asociaţiilor de consumatori, care îşi
concurenţa dintre operatorii de reţele de doresc scăderea facturilor telefonice şi micii
telefonie fixă şi cei de telefonie mobilă. operatori au salutat iniţiativa.
Aceasta a declarat ca diferenţele dintre Pe de alta parte, marii operatori sunt
tarifele de terminare a apelurilor în reţele fixe îngrijoraţi de scăderile de tarif propuse,
şi cele din reţelele mobile, precum şi acestea putând avea un impact semnificativ
diferenţele dintre tarifele de terminare a asupra veniturilor lor şi ar putea fi forţaţi să
apelurilor dintre reţelele de telefonie mobile îşi recupereze banii din alte părţi. Într-un
impuse de autorităţile naţionale de studiu, se arată că preţurile apelurilor mobile
reglementare nu pot fi în întregime justificate domestice au scăzut cu 13% pe an, din 2004
pe baza diferenţelor dintre costurile în 2006. Operatorii subliniază în studiu şi că
subiacente, dintre reţele sau dintre măsurile de limitare a tarifelor de roaming, ca
caracteristicile naţionale. şi această ultimă iniţiativă sunt atât măsuri
Pe de altă parte intervenţia opuse, cât şi foarte dăunătoare.
autorităţilor naţionale de reglementare în Comisia a publicat textul definitiv al
sensul reducerii tarifelor de terminare a Recomandării privind reglementarea tarifelor
apelurilor în ţările lor riscă să îşi defavorizeze de terminare a apelurilor telefonice în reţele
propriul sector de telefonie mobilă, dacă o fixe şi în reţelele mobile în luna octombrie
autoritate naţională dintr-o ţară învecinată 2008, în temeiul articolului 19 din Directiva-
permite încă tarife mai ridicate; barieră pentru cadru a UE cu privire la telecomunicaţii, care
investiţiile în noi reţele şi servicii, atunci când autorizează Comisia să armonizeze punerea în
operatorii se confruntă cu reglementari aplicare a normelor comunitare cu privire la
diferite în fiecare ţară. telecomunicaţii pe piaţa unică. Statele
La momentul actual, operatorii de membre trebuie să se asigure ca autorităţile
telefonie fixă şi clienţii acestora naţionale de reglementare „ţin cont
subvenţionează indirect operatorii de telefonie îndeaproape” de recomandările Comisiei
mobilă, plătind tarife de terminare a apelurilor (http://www.euractiv.ro).
mai ridicate pentru apelurile către telefoane
mobile iniţiate de la un post telefonic fix. Concluzii
Comisia Euopeană a prezentat un
proiect de recomandare în vederea asigurării Piaţa telefoniei mobile din România
convergentei tarifelor de terminare a este dominată de doi operatori Orange şi
apelurilor în Europa, inclusiv în vederea Vodafone, suspectaţi de întreţinerea unei
formulării unor principii clare de identificare posibile poziţii dominante colective.
93
Creşterea în mărime a celui de-al treilea [8]. *** Institutul Naţional de Statistică, Anuarul
operator al clasamentului, Cosmote, este în Statistic al României 2007
[9]. *** www.anrcti.ro
măsură să restabilească concurenţa pe această [10]. *** Comisia Europeană
piaţă. Piaţa telefoniei fixe, dominată de (http://ec.europa.eu/index_ro.htm)
Romtelecom este încă destul de departe [11]. *** www.EurActiv.com
comparativ cu pieţele altor ţări, dar se află pe
o direcţie corectă. Comisia Europeană atrage
atenţia că tarifele de terminare în U.E. sunt
extrem de eterogene, ceea ce duce la
imposibilitatea manifestării concurenţei libere
în interiorul U.E. şi tarife exagerat de mari în
unele ţări. De asemenea tarifele de terminare
sunt mari la convorbirile dintre reţelele
mobile comparativ cu cele din reţelele fixe, la
fel şi tarifele de terminare la convorbirile fix-
mobil, care subvenţionează indirect operatorii
mobili. Comisia propune o armonizare a
tarifelor de terminare în interiorul UE, fapt
care va duce, pe lângă stimularea concurenţei,
şi la tarife finale mai mici.
Bibliografie:
[1]. Barbu, Paul (2007), „Orange şi Vodafone,

suspectate că fentează concurenţa pe piaţa
telefoniei mobile”, Gândul, 14 Noiembrie,
http://www.gandul.info/economia/orange-
vodafone-suspectate-fenteaza-concurenta-piata-
telefoniei-.html?3936;1036899
[2]. Băeşu, Valentin, (2006), „Concurenţa cu cartela-
minune”, Cotidianul, 3 martie,
http://cotidianul.ro/concurenta_cu_cartela_min
une-8796.html
[3]. Mihaela Bîrsan, Ştefăniţă Şuşu, Alina Balan,
The impact of organizational culture over the
competitiveness of contemporaneous
companies, Analele Universităţii din Oradea,
Tom XVII, 2008, Volumul IV – Management
and Marketing,
http://steconomice.uoradea.ro/anale, p. 98-103;
[4]. Hanea, Alex, (2007), “ANRCTI vrea concurenţă
reală pe piaţa telefoniei mobile”,
http://www.hit.ro/telefoane-mobile/ANRCTI-
vrea-concurenta-reala-pe-piata-telefoniei-
mobile, Sursa: Mediafax, ANRCTI
[5]. Paraschiva, Eduard (2006), „Concurenţa reală
între operatorii de telefonie mobilă”, Cronica
Română, 26 Aprilie, http://www.wall-
street.ro/articol/IT-C-
Tehnologie/13619/Concurenta-reala-intre-
operatorii-de-telefonie-mobila.html
[6]. *** http://www.euractiv.ro/uniunea-
europeana/articles%7CdisplayArticle/articleID_
14011/Comisia-vrea-ca-tarifele-telefoniei-
mobile-sa-scada-cu-70-in-urmatorii-ani.html
[7]. *** Autoritatea Natională pentru Reglementare
în Comunicaţii şi Tehnologii Informaţionale,
Raport Anual 2007.
94
THE APPLICATION OF THE EUROPEAN CHARTER FOR REGIONAL OR MINORITY

LANGUAGES IN ROMANIA IN THE FIELD OF EDUCATION
Roxana Alina Petraru, PhDs university lecturer, The University of “Petre Andrei” from Iasi, Romania,
rrroxana@yahoo.com
Abstract: The European Charter for regional or minority languages was adopted under the auspices of the Council of
Europe on the 5th of November 1992 in Strasbourg and became effective on the 1st of March 1998. Romania signed the
Charter on the 17th of July 1995 and ratified it by means of law 287/2007.
The regional or minority languages include the languages traditionally used in a certain area of a state by the citizens
of that state which form a group numerically inferior to the rest of the state population and which are different from the
official language or languages of the respective state. The phrase mentioned above does not refer to the dialects of the
state’s official language or to the languages used by immigrants.
In this article we have tried to identify the way in which the right to education in one’s mother tongue is applied based
on the provisions of the Charter and on the internal legislation, as well as its instruments. Also, we analyzed the main
difficulties that one is confronted with in practice and we suggested a series of measures for the improvement of the
institutional practices with regard to the right of the minorities from Romania to study in their mother tongue. The
observance of this right necessarily assumes the creation of certain conditions for a proper development of the didactic
process starting with the number of hours allocated, the proficiency of the didactic staff or of the handbooks.
Keywords: education, minorities, language, right, regional
Classification JEL: Z19
Foreword addressed to Romania in respect to this matter

is wrong.
Romania does not have a law of the Chapter 2, section 1 of the paper refers
national minorities like other states do. In to the process of education in the languages of
spite of this fact, although it is very difficult the minorities and includes provisions from
to elaborate a definition of the national the Constitution of Romania and from the
minorities, we can still use the one offered by Law of Education. Next, we will present and
the bill of national minorities according to assess these provisions. Moreover, we would
which: “A national minority is any like to mention that Romania signed and
community of Romanian citizens living on ratified the European Charter for Regional or
the territory of Romania from the moment the Minority Languages. At the legislative level,
modern state was established, numerically Romania has to adopt a status of the
inferior to the majority population, having minorities. We can say that, however, in spite
their own ethnic identity, expressed by means of this, we have a legislative background
of culture, language or religion which they capable of protecting one’s right to study in
want to preserve, promote and express. The one’s minority mother tongue.
people belonging to the national minorities
are Romanian citizens expressing free and The principles of the charter
unhindered the affiliation to national
community or minors whose parents or legal The principles on which the parties have
tutors declared this affiliation in accordance agreed to base their policies regarding the
with the law”. regional or minority languages are provided
The national minorities from Romania by article 7 of the Charter and are as follows:
are the following communities: Albanese, 1. the recognition of the regional or minority
Armenian, Bulgarian, Czech, Croatian, languages as an expression of cultural wealth;
Greek, Jewish, German, Italian, Macedonian, 2. the respect of the geographical area of each
Hungarian, Polish, Russian-Lippovan, Roma, regional or minority language in order to
Ruthenian, Serbian, Slovak, Tartar, Turkish, ensure that existing or new administrative
Ukrainian. divisions do not constitute an obstacle to the
In our opinion the delay to adopt the promotion of the regional or minority
status of the national minorities, especially language in question;
after the request of the United Nations
3. the need for resolute action to promote languages used by the rest of the State's
regional or minority languages in order to population but which, although traditionally
safeguard them; used within the territory of the State, cannot
4. the facilitation and/or encouragement of the be identified with a particular area thereof.
use of regional or minority languages, in
speech and writing, in public and private life; The regulation of the regional or minority
5. the maintenance and development of links, languages use in the romanian system of
in the fields covered by this Charter, between education
groups using a regional or minority language
and other groups in the State employing a 1. The provisions of the charter
language used in identical or similar form, as
well as the establishment of cultural relations Article 8 of the Charter refers to the way
with other groups in the State using different in which the principles enumerated in the
languages; previous section are reflected in the field of
6. the provision of appropriate forms and education. Thus, the Parties undertake,
means for the teaching and study of regional without prejudice to the teaching of the
or minority languages at all appropriate official languages of the state, to observe the
stages; following directions:
7. the provision of facilities enabling non- 1. To make available pre-school/ primary/
speakers of a regional or minority language secondary/ technical/ vocational/ university
living in the area where it is used to learn it if education or a substantial part of the pre-
they so desire; school/primary/secondary/technical/vocationa
8. the promotion of study and research on l/university education in the relevant regional
regional or minority languages at universities or minority languages, or to give this
or equivalent institutions; opportunity at least to those pupils whose
9. the promotion of appropriate types of families so request;
transnational exchanges, in the fields covered 2. to arrange for the provision of adult and
by this Charter, for regional or minority continuing education courses which are
languages used in identical or similar form in taught mainly or wholly in the regional or
two or more States. minority languages or to offer such languages
The regional and minority languages as subjects of adult and continuing education
include the languages traditionally used in a or if the public authorities have no direct
certain area of a state by the citizens of that competence in the field of adult education, to
state which form a group numerically inferior favour and/or encourage the offering of such
to the rest of the state population and which languages as subjects of adult and continuing
are different from the official language or education;
languages of the respective state. The phrase 3. to make arrangements to ensure the
“regional or minority languages” mentioned teaching of the history and the culture which
above does not refer to the dialects of the is reflected by the regional or minority
state’s official language or to the languages language;
used by immigrants. The "territory in which 4. to provide the basic and further training of
the regional or minority language is used" the teachers required to implement those of
means the geographical area in which the said paragraphs enumerated;
language is the mode of expression of a 5. to set up a supervisory body or bodies
number of people justifying the adoption of responsible for monitoring the measures taken
the various protective and promotional and progress achieved in establishing or
measures provided for in this European developing the teaching of regional or
Charter for Regional or Minority Languages. minority languages and for drawing up
Another term explained by the same periodic reports of their findings, which will
Charter is "non-territorial languages" which be made public.
refers to the languages used by nationals of
the State which differ from the language or
96
2. Internal legislation regulations 10. the representation of the members of the

didactic staff belonging to minorities in the
„The right of the people belonging to the leading committees of the units and
national minorities to learn their mother institutions of education which include
tongue and the right to study in this language” groups, classrooms or departments which use
is guaranteed by article 32, paragraph 3 from the languages of the national minorities as
the Constitution of Romania. According to teaching languages.
article 8, paragraph 2 from the Law of Besides the aspects brought under regulation
education no. 84 from 1995 “in each locality in Chapter 12, the education for the people
there must be units of education and study belonging to national minorities is further
communities that use both the Romanian referred to in other articles of the law.
language and the mother tongue of the
national minorities as educational languages, 3. The role of the general department of
or one must be ensured to study in one’s education in the languages of the minorities
mother tongue in the nearest locality and the relationship with the parliament
possible”. within the ministry of education, research,
Chapter 12 from the Law of Education of youth and sports
entitled Education for the people belonging to
the national minorities brings under An important role in the protection of
regulation the following: the national minorities’ right to education in
1.the right to study in the mother tongue at all their mother tongue in Romania is played by
levels, forms and types of education; the General Direction of Education in the
2. the teaching of the Romanian language and Languages of the Minorities and the
literature, of the History and Geography of Relationship with the Parliament with the
Romania in the pre-university education; Ministry of Education, Research, Youth and
3. the teaching of the History and customs of Sports. The purpose of this department is the
the national minorities; accomplishment of certain objectives
4. the teaching of the Language and literature regarded as primary for the present system of
in the mother tongue as well as of the History education, such as:
and customs of the national minority in case 1. to take steps to ensure the leveling of the
of the children belonging to the national quality of education for the minorities by
minorities who study in units of educations following the proficiency markers of the
that use the Romanian language as teaching countries from the European Union;
language; 2. to ensure the real access to different forms
5. the obligation to teach the special subjects and types of education for minorities to all the
from the public system of education from the children and young people belonging to the
arts and crafts schools, the completing year, national minorities;
as well as in high-school and the after high- 3. to guarantee equal chances to education;
school special education in the mother 4. the acquitting of the basic know-how for
tongue; the support of the languages and cultures of
6. the conditions for the organization of the minorities that live in Romania;
groups, cathedras, colleges and faculties that 5. the permanent update of the school
use the languages of the national minorities as curriculums, taking into account the needs
teaching languages in the public university specific to each national minority
educational system; 6. continuous programs of training and
7. the possibility to take the admission and formation for the didactic personnel who have
graduation exam test in the mother tongue; to ensure a formative evaluation process and
8. the specialization of didactic personnel in organize the exams based on the proficiency
the mother tongue; marker.
9. the provision of the handbooks and of other 7. the reorganization of the school education
didactic material in the teaching language; network regarding the national minorities;
97
8. the obligation to ensure a proper didactic staff appointed in libraries, the

endowment of the education units (books in relationship of the institution with Romania’s
the libraries from the public system of Parliament.
education, textbooks, means of education, The Department is assisted by all the
etc.); other general departments, directions, services
9. the elaboration and implementation of and divisions which are part of the ministry,
education protection and support projects or as well as by all the ministries, governmental
programs dedicated to the students belonging and non-governmental organizations, by
to the minorities groups, and especially to the professional associations that take steps in the
Roma students. promotion of education for the national
The General Department for minorities; by the Parliament of Romania; by
Education in Mother Tongue the Relation the unions of the national minorities from
with the Parliament and Unions has to take Romania; by the representatives of the
steps in the following directions: embassies which are interested in the
1. The organization of education in the promotion of education for the national
mother tongue at all levels and types of minorities on the basis of the bilateral
education and the teaching of the mother agreements; by all the general departments,
tongue in schools which use the Romanian departments, services and divisions which are
language or any other language different from part of the ministry, as well as by other
the mother tongue as teaching language upon ministries, professional associations regarding
request; the establishment of an adequate the libraries from the public system of
management environment, proper for the education;
development of the specific activity; the Moreover, among the responsibilities
organization of the guidance and control of the department are those of legalization,
actions in the schools units with mother approving and elaboration of various
tongue teaching or with partial mother tongue materials. Thus, it legalizes all the documents
teaching; the teaching and management regarding the necessity to train the didactic
personnel must have access to specialized personnel who work in the mother tongue
training; the establishment of an teaching education system; the documents
informational network for all the partners regarding the management of the educational
interested in the policies of education institutions with mother tongue teaching; the
dedicated to the national minorities; the documents obtained after participating in
establishment of the specialized continuous certain training sessions organized in the
training programs for the didactic personnel countries where the languages of the
who teach in the mother tongues, as well as minorities from Romania are official
for the auxiliary didactic staff-librarians languages; the school curriculums for the
working in the public system of pre-university education destined to the national minorities;
education. legislative bills regarding the education for
The General Department for minorities; the budget for the organization of
Education in Mother Tongue the Relation the training programs for the didactic
with the Parliament and Unions coordinates personnel working in the pre-university
the way in which the development and reform education system for minorities; the budgets
strategy is applied with regard to the for the organization of the training programs
education system dedicated to the national for the auxiliary didactic staff- librarians from
minorities, the operational projects of the pre- the libraries in the pre-university system of
university education reform for the reference education; the auxiliary didactic materials
field, the libraries from the public system of used in the education with teaching in the
education regarding the appointment of the mother tongues of the national minorities; the
specialized personnel, the specialized fidelity of the translation of the textbooks
education, the initial and continuous training with the support of the unions of the national
of the didactic staff from the system of minorities from Romania; the textbooks
education dedicated to minorities and of the written in the languages of the mother
98
tongues of the national minorities; the budget legislation with regard to the minority or
for the organization and development of the regional languages.
specific activities: school Olympiads, national
contests, intern and extern travelling, etc; 3. Problems in the application of the
regulations, directives and methodologies charter and of the internal regulations
regarding the pre-university education and
especially the documents that bring under According to the census from 2002
regulation the education with teaching in the mentioned by the Report of monitoring and
mother tongues of the national minorities, implementation of the European Charter for
namely the system of education for regional or minority languages, the chapter of
minorities; the legislative bills regarding the education (Kovacs, 2009), at that time there
organization and activity of the libraries from were 484 people who spoke Albanian as their
the network of the ministry; it refers to the mother tongue, 721 Armenians, 4170 Greeks,
legislative bills elaborated by other ministries 951 people who spoke the Jewish language,
or central institutions in so far as they are 2531 Italians, 588 Macedonians, 2690 Poles,
related to the network of libraries from the 237570 who spoke Romani as their mother
education system; the methodologies, tongue, 169 Ruthenians, 21272 Tartars.
regulations, and directives regarding the The report we have mentioned shows
activity of the libraries from the system of a special situation which appeared, in the field
education. of education, in case of the people who spoke
Also, the Department decides weather Armenian, Greek and Polish. Thus, the
to approve the answers to the letters received General Department for Education in Mother
by the general department; the methodology Tongue the Relation with the Parliament and
and the guidance and control regulation; the Unions within the Ministry of Education and
schedule of travels, etc and participates in the Research, Youth and Sports deals with the
elaboration of the budget for the organization organization and curriculums of education
and development of the specific activities: with teaching in the mother tongues of the
school Olympiads, national contests, intern Hungarian, German, Czech, Serbian,
and extern travelling, etc; it also deals with Slovakian and Ukrainian minorities, with the
the strategy elements in the field of activity, teaching of the language and literature in the
with notes, reports, syntheses and other mother tongue of the minorities in schools
papers regarding the activity of the general which use the Romanian language or any
direction and of the two sub-units. other language as teaching language:
The Department analyzes and is Bulgarian, Czech, Croatian, Serbian,
responsible of the organization, coordination Ukrainian, Russian, Turkish, Tartar,
and monitoring of the quality of education Hungarian, German, Slovakian, with the
destined to the national minorities; of the partial teaching in the mother tongue
training and proficiency of the didactic (teaching of other subjects in the mother
personnel working in the system of education tongue besides the Language and literature in
with teaching in the mother tongues of the the mother tongue and the History and
national minorities; of the training and Customs of the national minorities): Croatian,
proficiency of the auxiliary didactic staff- Turkish, and with the protection and support
librarians from the pre-university education; of the Roma children. Thus, we can observe
of the activity of the specialists it operates; of the absence of the Armenian, Greek and
the elaboration of the reports regarding the Polish language.
responsibilities of the general department. According to the report quoted above,
By analyzing the field of activity and the most frequent obstacles in the way of
the responsibilities of the Department we ensuring the access to education in the mother
observe that this institution represents the tongue for the national minorities from
main instrument of application of the Romanian are in great number. Consequently,
provisions of the Charter and of the internal not all the minorities benefit from a
curriculum for the History and Customs of the
99
minority (for example the case of the establishes a communicating bridge with the
Bulgarian minority). Also, although in the traditions, history and language of the
majority of the public or private superior community to which they belong. Besides the
education institutions there are directions of official language of the state in which they
study in the language of the minorities, this is live and whose citizens they are, the right to
not valid for all the ethnic groups from have access to education in the mother tongue
Romania. Therefore, it is very important that is fundamental.
we encourage the professional exchanges and The European Charter for regional or
the exchanges of didactic personnel with the minority languages, the Constitution of
mother countries of the national minorities. Romania, the Law of Education and other
Also, we mention that there were cases when legislative bills guarantee this right to the
classrooms with teaching in a certain mother minorities from our country.
tongue were dissolved due to the reduced As there is a wide gap between theory
number of students. We believe that this and practice, we have tried to point out the
action may be regarded as an action that main problems with which Romania is
trespasses one’s right to education in one’s confronted after analyzing the legislative
mother tongue. background. We continue to affirm the
We believe that the quality of the necessity to adopt a status of the minorities
education in the mother tongues of the and we believe that the activity of the ethnic
national minorities has to be necessarily groups and of the non-government
improved: starting with the quality of the organizations is also extremely important by
textbooks, the number of study hours means of the organization of camps, of the
stipulated in the curriculum and continuing support offered for the endowment of the
with the quality of the process of education libraries, for the renovation of schools, etc.
and of the didactic personnel. The alternative Practically, the ratification of the
handbooks exist only in case of the minorities Charter did not bring any new important
with a great number of members. The same is things in the regulation of education in the
the case with the endowment of the libraries. regional or minority languages from
The main problems that had been Romania. This ratification is rather an
identified by the various institutional actors, international manifestation of certain
experts in the implementation of the principles that were included in the internal
legislation regarding the system of education, legislation and which is able to confer a
refer especially to the lack of the adequate higher level of protection of the national
translations from Romanian to the languages minorities’ rights.
of the minorities. The problem of translations Our recommendation is an active
extends over a wide domain, from the correlation between the actions performed by
translation of the textbooks required in the the institutions of the state and those
educational institutions until the lack of the performed by non-governmental
translation of the municipal and local organizations, the study of The European
councils’ decisions. (Salat, 2008) Charter for regional or minority languages by
the institutions involved in the process of
Conclusions and recommendations education, the valorization of the minority
customs and languages, as well as a politics
The right to education is a of encouragement of the authors who write
fundamental right of man, as stipulated by the handbooks in the minority languages.
Universal Declaration of Human Rights. The We believe that a reorganization of the
education is the one that shapes the life of the institutional framework which refers to the
individual, the one which opens new protection of the right to education in the
opportunities of understanding, knowledge mother tongue is necessary by means of the
and self-assurance. For the ones who speak a establishment of new institutions able to co-
minority or regional language in a state, the operate for maintaining this right in case of all
education in their respective mother tongue
100
the minorities in our country and not only in

case of the so-called big minorities.
Bibliography
[1]. *** The European Charter for regional or

minority languages
[2]. The Constitution of Romania
[3]. Kovacs, Maria, The Use of the Minority
Languages in Education, in Căluşer, Monica,
The European Charter for Regional or
Minority languages in Romania between Laws
and Practice, The Resource Centre for the
Ethnic-Cultural Diversity, Cluj-Napoca, 2009
[4]. Law no. 82 from October 24th 2007 for the
ratification of The European Charter for
regional or minority languages adopted in
Strasbourg on the 5th of November 1992
[5]. Salat, Levente, Policies of Integration of the
National Minorities from Romania. Legal and
Institutional Aspects from a Compared
Perspective, Cluj, CRDE, 2008.
101
THE STATUTE OF THE ECONOMIC MODEL WITHIN SCIENTIFIC KNOWLEDGE:

CONCEPTUAL-THEORETICAL APPLICATIONS IN TERMS OF
INTERDISCIPLINARY CONTEXT
Georgeta PUSTIU, Master student

“Stefan cel Mare” University Suceava, Romania
pustiu_georgeta@yahoo.com
Abstract: Economics involves a conceptual-theoretical approach within which scientific consistency depends on the
attitude and responsibility of the social actors involved in this process. The opportunities arising from the development
of a systemic theory within a new social-economic paradigm emphasize valid cognoscible structures that obtain
scientific legitimacy. Thus, by means of a logical formalism particular to compound sentences and calling on the
principle of sufficient reason there can be established a causal relationship between two economic coordinates: price
and demand. In other words, the checkout of the necessity and sufficiency of these two correlative phenomena is
possible through logical formalism particular to compound sentences in terms of economic concepts. Besides, this
methodological approach is reflected by successive applications of some research methods in conjunction with the
scientific reassessment process. Moreover, such a perspective generates theoretical specifications considering the
interdisciplinary size of scientific knowledge. Therefore, the importance of implementation at social level of
methodological strategies specific for a new economic paradigm should represent in today's society a starting point
regarding the assumption of such a process.
Keywords: economic model, logical-economic formalism, economic epistemology, social paradigm
JEL classification: A12; D03

reference to a well-defined linguistic
structure. Moreover, such a behavior is
Introduction reflected in the concept of management while
the problematization generated in this
In this analysis we are interested to analysis refers to the concepts of “price” and
see how an economic specific behavioral “demand”. It is about an interdisciplinary
model can generate at the level of economic understanding of the results obtained
reality strategies that can justify the validity following a process of applying a logical
of a paradigm whose architecture is formalism within economics. A first argument
performed on the basis of a logical is given precisely by the interdisciplinary
formalism. Moreover, within the dimension character reflected in the scientific
of scientific knowledge, such a theme on the explanations offered by experts. In this way,
statute of economic model proves to be more the strategies implemented on the basis of
than relevant in the circumstances where it interdisciplinary connections allow a
can be point out at the level of an economic methodological openness in terms of
epistemology through conceptual-theoretical understanding and applying certain
applications. The approach that we are conceptual structures within a new
considering regarding this situation resides paradigm. A second argument refers to the
rather in taking into account some eligibility idea that the interdisciplinary approach that
criteria designed to reveal the importance of we are considering in this process involves
logical formalism within the economic taking into account the analysis of an
knowledge dimension. economic discourse. An efficient economic
Taking into account that the economy thinking must reflect a pragmatic
enjoys a certain conceptual privilege (that language. Moreover, within this kind of
almost always it manages to build an language, the symbolic and natural language,
“alphabet” by which a certain theoretical area understood as species of economic discourse,
is being explained) and that it relates to action must provide the key to discover new
policies conditioned by a number of rational truths. Therefore, the truth value of some
actions, we believe that the behavioral statements expressing economic truthfulness
analysis of the individual must be made by degrees can be validated at formal level, by
appealing to the principles of thinking, and rules) are intentional and not spontaneous,
such a principle is the one of the sufficient social harmony is manifested by a freedom
reason [1]. which, planned as it is, generates a
contradiction. In other words, planning
1.1 Economic behavior in the context of the freedom causes opposite effects. Therefore,
emergence and development of a new social says Friedrich A. Hayek, the value of a social
paradigm system is not democracy, but freedom, though
not the collective one, but the individual
The researches of economic processes one. The result is represented by those
have as scientific basis interdisciplinary economic freedoms specific to individualism
systemic approaches supported by the defined as a particular consideration for the
principle of methodological pluralism. The others. Under this type of social order there
new directions in economic science provide a are enough arguments coming to emphasize
way to reassess the statute economy in the role of a particular way of perceiving and
general has. Within this new approach, the understanding the economic mechanism.
economy involves an increasingly diversified The attempts to explain the economic
problematic in different socio-cultural mechanism reveal the fact that the processes
contexts. The values promoted within this and the phenomena of social reality are not
economic culture reside rather in the human- merely assumptions located in the area of
specific orientation type, and in the decisions conceptual ambiguity, but become
promoted at ontological level. Even if some understandable and realistic in nature when
changes are visible in the way of the socio-cultural meanings relate to the
understanding the economic process, the idea living standard of people. Economy
of economic model refers to the complex, dominance at the level of other disciplines has
sometimes paradoxical reactions of the socio- led to a conceptual privilege, particularly in
economic actors. However, behavioral relation to arts. Homo economicus is the being
requirements can be offset by establishing that matters in the social environment by
certain value criteria specific to the new type embracing a form of critical rationality. This
of economic thinking. reveals an economic culture where knowledge
The axiological criterion within a is correlated with certain political and
market economy is given by the socio- ideological interests. In other words, the
political system it belongs to. In other words, knowledge specific to economy in general
a competition-based system generates criteria falls under the impact of ideologies, because
on whose basis certain value judgments human behavior is related to a desire to meet
converge on a more or less rational economic their own needs referring to power, economic
conduct. Therefore, the acceptance of moral organization and the desire for justice
criteria within an economic system solves (Granger, 1992). It is noticeable, therefore, an
more or less problems. Almost everything issue designed to link different principles and
depends on how it is thought and planned the rules encountered within the competitive
economy of that system and on the way in economic environment.
which political power is exerted on the Based on these assumptions and
respective system. taking into account the activities that
Besides, this idea is reflected in the characterize human behavior, economy in
work of Friedrich A. Hayek i.e., “The Way to general relates to specific action policies
Servitude”, where the socio-economic conditioned by certain rational means and
planning is analyzed (Hayek, 2006). The measures. In this regard, some economists
basic idea that Friedrich A. Hayek promotes talk about the fact that in economy, individual
is that social order (society) appears as a behaviors follow the path of social order
result of a selection process in which occur (Perret and Ronstang, 1993). One of the
rules that compel the individuals to have a major findings was that this social order is
specific behavior so that social life would be efficient, i.e., the resources available within a
possible. Even if legal rules (conventional society are organized in order to reveal a
103
production that should squint towards (7) the operational approach: is a way
maximum. Thus, political economy reflects to facilitate the completion of a cognoscible
the functioning conditions of economy in system regarding the functions managers in
relation to a system of scientific theories and general fulfill.
concepts. Essentially, such approaches express
Moreover, making a choice expresses the fact that accepting or rejecting a
the idea that economic reality must be related subjective economic behavior involves
to a specific behavioral pattern. Under the admitting value judgments within that
circumstances where it is discussed the system. But such value judgments should be
choosing possibility, there also has to be subordinated to certain scientific criteria
accepted the idea of problematization on the based on certain axiological assumptions.
existence or non-existence of a particular law Although subjective assessments may not
that should justify the individual’s behavior as always be accepted as scientific, they should
such. The choice between two goods allows not be dropped on grounds that they represent
us to actually analyze human action, but not certain ideals that cannot be necessarily and
every time to generate a legitimate conclusion sufficiently sustained. Therefore, the
(Hülsman, 2003). economic process cannot only subordinate to
According to this perspective, we theories and concepts per se, but it must also
consider that the behavioral approach in terms emphasize certain rules of human behavior.
of management in general refers to specific However, in economy, the subjective
individualization strategies of economics. We assessments refer not only to a rational
consider those ways of knowing and reception but also to an emotional one. This is
practicing management through which it was visible especially when the interests of
attempted a classification from a scientific individuals occur at the level of human
point of view of the actual management activity and hence economic activity. In other
dimension. In this regard, in special literature words, at the level of economic investigation
are discussed the following types of lie certain value judgments meant to support
approaches (Coste, 1994): and expand the economic theory and
(1) the empirical approach: calls on practice. The idea that the judgment (or the
the exact events and facts of a manager; value criterion) cannot deprive from the
(2) the behavioral approach: stresses economic methodology is embraced by many
the psychological impact the manager has on specialists in this field, considering that such
the individuals; an axiological approach, “must serve to the
(3) the approach depending on the implementation at all levels of some options
behavior of the group: points out that the term and development strategies scientifically
“group” is extended from a simplistic (a underlain that can serve the economic agents
couple of people) to a complex way (large and the national interest as well” (Angelescu
groups that take the form of companies); and Stănescu, 2002). Thus, human society
(4) the mathematical approach: aims needs a more ample knowledge of the socio-
managerial phenomena considered from an economic reality. In this regard, the building
objective point of view generating and the development of economic science has
mathematical modeling; materialized as the result of pressing
(5) the situational approach: has as a imperatives based on the principle of
starting point the idea that there are multiple rationality in relation to the value dimension
ways to approach management since it of the relationship needs-resources.
requires different situations of approach; Of course, within these specific
(6) the practical approach: requires a strategies of individualizing economic
cognition based on actual activities of approach we have in mind, on the one hand,
managers (representativeness within the assessment of the individual’s behavior
particular ceremonies, sending information to from a psychological point of view, and on
subordinates, negotiating in different the other hand, the assessment of the
situations, etc.). educational actors’ behavior according to the
104
results of their cognitive psychological individualize the managerial dimension. In

processes. These two models of the second case, we consider the conceptual-
communication (the psychological and the theoretical applications of logical-
cognitive one) come to supply the economic mathematical formalisms in terms of
model of the new paradigm assumed at social economic knowledge. It is about a
level. Moreover, this perspective highlights combination of these ways of knowledge
the complexity and dynamism of economic through an interdisciplinary knowledge type.
processes when they are examined in relation Moreover, such knowledge involves
to behavioral (psycho-sociological) especially information and concepts transfer
dimensions of the socio-economic actors. in terms of (meta) theory. In this way, such an
However, the acceptance of such eligibility interdisciplinary understanding of knowledge
criteria refers to a new theoretical construct reflects a well justified complexity degree. In
through which specific strategies of realizing this situation we have to deal with an
economic methodology are highlighted. epistemic model of understanding the
Moreover, this image on the architecture of dynamics of economic process in general.
the new assumed economic paradigm reveals This model that examines the epistemic
at the level of scientific knowledge social structures in terms of a systemizing economic
objectives intended to justify the role of theory can be rightfully called the
exploiting informational resources within the constructivist model of an economic
conceptual-theoretical applications. As a epistemology.
result, a well-founded economic policy must What should be considered regarding
consider both the consensual strategies in this is precisely the assessment of the
terms of social reality and the value of certain economic dimension. Perhaps the principle
axiological principles and rules. after which such an approach should be
accomplished depends rather on the attitude
1.2 Economic methodology and of the economic actors. In other words, in this
interdisciplinary connections area it is necessary precisely that opportunity
cost the special literature mentions. It is
Approaching economic processes and noteworthy, however, in this context, the fact
phenomena in terms of methodology allows, that an economic analysis of this situation
based on interdisciplinary connections, an requires a concrete operationalization of the
active learning experience that combines objectives assumed at socio-economic level.
theory and practice. The raised issue It is also well known the fact that when a new
expresses the fact that a new economic economic paradigm arises within a social
paradigm is reflected effectively insofar as its system there is noticeable a conceptual
cognoscible structures relate to applicative transfer of information at conceptual-
dimensions, and also to value judgments theoretical level. This process generates
whose legitimacy is noticeable within social interdisciplinary facets in terms of economic
reality. Thus, the knowledge transfer is knowledge. Furthermore, these
highlighted precisely by the practical- interdisciplinary analyses are not possible
theoretical share of axiological approaches only at a certain level of organization (e.g.,
within an interdisciplinary approach. In this the conceptual transfer or the methods
way, is justified the correspondence between transfer from an economic discipline to
at least two different organizational levels. another), but at several such levels (e.g. from
The switch from simple to complex and from a mathematical to an economic discipline). In
complex to simple, from a conceptual- this way, it is justified the appearance of some
theoretical point of view, submits to a (inter) disciplinary areas such as: economic
“behavioral” formalism but also to a logical- cybernetics, econometrics, and environmental
linguistic formalism. In the first case economics. Thus, economic reality has
(behavioral formalism) it is precisely about undergone a major transformation by means
the ways of knowing and practicing of new interdisciplinary systematizations
management mentioned above, which try to
105
designed to justify the need for a subject system. However, individual and social
specific to economy in general. meanings involve the utilitarian aspects that
Economics highlights in the context of refer to axiological assessments. Furthermore,
a knowledge society an interdisciplinary the scientific dimension of economics
approach designed to support the demands of highlights also a reality built on the
a new scientific paradigm. This new paradigm relationship communication-responsibility. In
arises as a result of a whole process of fact, the scientific content integrated at this
reassessment of contemporary society. We level is reflected in the extent to which the
consider in this context the fundamental process of assuming a new cultural paradigm
changes in business world without which depends on cultural comprehension of the
some thinkers say that contemporary society educational system promoted at a social level.
could not exist. Many of the interdisciplinary These features refer to the idea that
applications are found in business world. In scientific explanations on economics at the
this regard, in terms of reorganizing the social level of a philosophy of science concentrate
system and thus the economic system, certain axiological structures of understanding
economics refers to a specific methodology of supported by the cognitive-affective attitudes
approach. Thus, it is accepted that a new of the social actors. Also an important aspect
perspective on the role of business in in evaluating the quality of disciplinary
contemporary society highlights in terms of information is given by the efficiency criteria
economics the assumption of a new scientific through which it is possible the complex
paradigm. At the basis of the emergence of a recovery of the strategies, decisions and the
new global vision on business there are the obtained performance. Moreover, the
following trends (Maynard and Mehrtens, reflection of this type of qualities involves
1997): also motivations related to the profitability of
(1) consciousness mutation that takes the accessibility degree in business
place extremely fast, having at the same time horizon. Thus, the appearance of some
a paradigmatic character; conflicts of interest manifested in the
(2) dissatisfaction towards scientism development of some economic activity
through which it is expressed the shows that the social system is subject to
disappointment given the exaggerated certain economic modeling, which depends
mathematical formalisms to which the rather on the individual and/or group
objective reality is reduced; interests.
(3) inside authority and power The assessment of economic
involves people’s reluctant attitude towards phenomena and processes depends on the
the decisions made by the others on their flexibility of the social system. Or, within a
behalf; social system there is a main constituent of
(4) re-spiritualizing the society reveals the educational system. Under these
a positive behavior regarding the life circumstances, we believe that a social system
philosophy and the training of self-education; needs at any time an economic theory
(5) decline of materialism which designed to comply with the contemporary
reveals a fundamental shift of values from world reality and also that can materialize
competition to cooperation; through an appropriate economic education.
(6) economic and political Also in this context, we consider necessary to
democratization expresses the need to mention that at the social level, the emergence
restructure the reality of global of new perspective regarding the activity of
interdependence; an economic system produces a whole
(7) beyond nationality highlights the process of theorizing on the various levels of
phenomenon of globalization itself. organization. Only in this way we can assess
Of course, these trends underlying the whether the functional structure of a system is
new social-economic paradigm are discussed active or not in relation to organizational
at a theoretical level to the extent that they effectiveness. Therefore, the orientation
relate directly or indirectly to human needs towards economic efficiency is facilitated by
106
the specific activity of social actors, a by Gustav Schmoller) that supported the role
situation that expresses the trend towards of induction at scientific level.
flexibility and continuity of the paradigm Concerned by the logical nature of the
promoted and undertaken within the social concepts and how they are reflected in
system. economics methodology, John Neville
This expresses the fact that the trend Keynes stated in The Scope and Method of
towards flexibility and continuity of a new Political Economy (1891) the following:
promoted paradigm involves a number of “It will on the contrary, be strewn,
methodological connections, on the one hand, that, according to the special department or
at discursive level, and on the other hand, at aspect of the science under investigation, the
theoretical-applicative level. The area of appropriate method can be either abstract or
understanding these methodological realistic, deductive or inductive, mathematical
connections refers to the idea that the validity or statistical, hypothetical or
of scientific research itself depends on the historical.” (Keynes, 1999)
strategies undertaken by both social actors It is obvious the approach assumed by
and scientific community. However, all this Keynes, which summarizes in a syncretic
relates to the manner in which the economic understanding these perspectives, practically
model is perceived at the level of scientific unifying them in a clear pattern, indicating
knowledge in terms of conceptual-theoretical that through this it can be understood the way
applications economy works. The conclusion reached by
Within the scientific research it is John Neville Keynes is that through logic can
noticeable the interdisciplinary link at be supported the idea of economic system
conceptual-theoretical level. In other words, a functionality. Through a coherent, logic
series of theoretical-abstract analyses find attitude, the economic theory can be
wide application in different scientific organized and systematized at an optimal
fields. An example is the logical- level of functioning and understanding.
mathematical formalism applied in Such an attitude is reflected in the
economics. Of course, without exaggerating disciplinary approach that aims the possible
in the use of this kind of approach, we point link between the principles of logical thinking
out that through such processes a scientific (and here we consider particularly the
theory can be explained and illustrated in a principle of sufficient reason), the logic of
certain research field making use of compound sentences and the conceptual-
discursiveness and logical formalism. theoretical applications in economics. As it is
Methodological innovation found in known, the principle of sufficient reason, in
an interdisciplinary conceptual application order to accept or reject a sentence there has
consists in scientifically assuming a specific to be a sufficient (satisfactory) basis.
formalization. Such an attitude is reflected in Moreover, the assertion of certain economic
John’s Neville Keynes (1883-1946) work theories involves specifying at theoretical
Studies and exercises in Formal Logic (1884), level certain relationships between different
which examines and develops the logical conceptual entities. This is possible through
formalisms from a conceptual perspective, the extension of formalizing at the level of
which are afterwards applied in the field of various disciplinary dimensions, and the
economics methodology examples abound in this sense in special
(Keynes, 1906). However, considering the literature (Luke, 2005). It is visible in this
idea of logical formalism and, implicitly, how case the usefulness of a logic of relations
it is reflected in actual applications in combined with a compound propositional
economics, John Neville Keynes involved logic, which admits a logical implication of
himself in what is known as Methodenstreit the type “if p, then q” [2].
(“battle of methods”) between the Austrian If two economic coordinates are
School of Economics (led by Carl Menger), given, price and requested quantity (demand),
who claimed a deductive approach, and the then we can establish, according to the
German Historical School of Economics (led principle of sufficient reason, a relationship
107
between the two coordinates i.e., a specific decrease, then the price does not increase” is
causal relationship. In other words, we can sustained, so p is a sufficient basis for q.
check the necessity and the sufficiency of
these two correlative phenomena starting (4) we check if p is a necessary basis
from the following steps: for q, using the formula
A: We examine the necessity and “(p ← q) ≡ (~ p → ~ q), which can be read as
sufficiency conditions for the relationship “if “only if p, then q is equivalent to if non-p,
p then q”, which is expressed in formal then non-q”; reformulated, this statement
language as “p → q”, and in natural language becomes: “only if the price increases, the
through the statement “If the price increases, demand decreases” equivalent to “if the price
the demand decreases (the requested amount does not increase, the demand does not
decreases)”. decrease” or another reformulation, if and
(1) we reformulate the relationship “if only if “only if the price increases, the
p, then q”, i.e., “p → q” according to the two demand decreases”, then “if the price does
coordinates: the price and the demand: not increase, the demand does not decrease”.
The relationship “if p, then q” can be
expressed by the reformulation, “If the price We remark that the statement on the
increases, the demand decreases (the right, “~ p → ~ q”, which is expressed in
requested amount decreases)”. natural language by “if the price does not
(2) we assign propositional variables increases, the demand does not decrease” and
to the two compound sentences from the it is not sustained because at some point, the
given reformulation: demand for a certain good may increase or
may decrease even if the price does not
p = “the price increases”; change; an argument in this situation is that
~ p = “the price does not increase”; the variation of the demand may be
q = “the requested amount decreases”; influenced by changes in income levels
~ q = “the requested amount does not (prices of other goods entering the
decrease”. consumption pattern of customers,
advertising, preferences etc.); therefore p is
In this moment it can be easily tested not a necessary basis for q.
(on the basis of the sufficiant rate principle) Conclusions from A:
for the existance (or non-existance) of the p is sufficient basis for q;
necessary condition, respective of the
sufficiant condition at the level of the two p is not a necessary basis for q.
sentences.
(3) we determine if p is a sufficient B: We examine the necessity and
basis for q, using the formula sufficiency conditions on the basis of a
similar process for the replication of the
“(p → q) ≡ (~ q → ~ p)”, which can be read relationship given above: “If the demand
as “if p, then q is equivalent to if non-q, then decreases, then the price increases” (p → q).
non-p”; reformulated, this statement becomes: We mention the fact that the
“if the price increases, the demand decreases” compound sentence known as replication is
equivalent to “if the demand does not expressed by “p takes place with the
decrease, then the price does not increase”, or condition q”, “for q is necessary p”, “q when
another reformulation, if and only if “if the p”. The replication is the inverse of the
price increases, the demand decreases” then implication. For example, if “p → q” is an
“if the demand does not decrease, then the implication, then “q → p” is a replication.
price does not increase”. (1) we reformulate the relationship “if
q, then p”, i.e., “q → p” according to the two
We remark that the statement on the coordinates: the demand and the price:
right “~ q → ~ p”, which is expressed in The relationship “if q, then p” can be
natural language by “if the demand does not expressed by the reformulation, “If the
108
demand decreases (the requested amount Conclusions from A and B: p is a

decreases), the price increases”. sufficient basis for q, but not a necessary
(2) we assign propositional variables one; moreover, q is a sufficient condition for
to the two compound sentences from the p, but not necessary for it (this results from
given reformulation: the definition of the replication).
Indeed, in such formalism, we should
q = “the demand decreases”; take into account the two paradoxes that
~ q = “the demand does not decrease”; appear on the atypical manifestations of the
p = “the price increases”; demand:
~ p = “the price does not increase”. • the Giffen paradox, according to
(3) we determine if q is a sufficient which in the case of certain products (goods)
basis for p, using the formula the price decreases when the demand in its
turn decreases (rather than increase as it is
“(q → p) ≡ (~ p → ~ q)”, which can be read normal); this phenomenon occurs in the case
as “if q, then p is equivalent to if non-p, then of basic products whose consumers have
non-q”; reformulated, this statement becomes: modest incomes; in fact, these consumers
“if the demand decreases, the price increases” allocate a larger share of their budget just to
equivalent to “if the price does not increase, buy more expensive products (goods), which
then the demand does not decrease. previously seemed to them less accessible;
• the Veblen paradox, according to
We remark that the statement on the which, especially for luxury goods (or with a
right “~ p → ~ q”, which is expressed in symbolic nature) the increasing of the demand
natural language by “if the price does not generates the increasing of the price; this
increase, then the demand does not decrease” phenomenon is the result of people with a
is sustained, so q is a sufficient basis for p. high social status.
(4) we establish if q is a necessary In these circumstances it is visible that
basis for p, using the formula Applying the formulas of compound
propositional logic, i.e. the formula “(p → q)
“(q ← p) ≡ (~ q → ~ p), which can be read as ≡ (~ q → ~ p)” for the sufficient condition
“only if q, then p is equivalent to if non-q, and the formula “(p ← q) ≡ (~ p → ~ q)” to
then non-p”; reformulated, this statement the necessary condition, and after making the
becomes: “only if the demand decreases, the substitution between propositional variables
price increases” equivalent to “if the demand and the (logical-economic) sentences in
does not decrease, the price does not question, i.e. using the formulas “(q → p) ≡
increase” or another reformulation, if and (~ p → ~ q)” and “(q ← p) ≡ (~ q → ~ p)”,
only if “only if the demand decreases, the we easily remark that the assumption made on
price increases”, then “if the demand does not economic support is sustained (because the
decrease, the price does not increase”. sufficient , but not also the necessary grounds
are accepted as correct in terms of logic).
We remark that the statement on the The structural relevance of the formal
right, “~ q → ~ p”, which is expressed in dimension architectonic of the economic
natural language by “if the demand does not dimension concerns epistemological issues
decreases, the price does not increase” and it related to the way in which are explained and
is not sustained because sometimes for a used basic scientific concepts, the definitions
certain good the demand may increase or may generated by these concepts, the analyzed
decrease even if the price does not theories (by similarity and contrast), the
change; therefore q is not a necessary basis examples, etc. This aspect is expressed by the
for p. fact that the argumentative utterances require
Conclusions from B: a conventional nature in terms of
q is a sufficient basis for p interpersonal relations, in that way they can
q is not a necessary basis for p persuade and sometimes even manipulate the
receptors (auditors). Thus, it was noted in the
109
above example that an important part in observational and experimental knowledge is

argumentative discourse belongs to the obvious an architectonics of a new economic
logical operations where the terms (concepts) model, assumed, moreover, in a certain social
occur. In this sense, it becomes clear in terms context.
of academic discourse the idea of Certainly, in terms of methodology,
argumentative performance, through which the analysis of economic reality highlights the
there is given sense and meaning to the important role the activities of the social
transmitted message. Thus, insofar as there is actors have in the educational process. In this
formalism appropriate to the economic way, any scientific explanation entails
theory, then the transmitted message acquires specific linguistic structures. It involves a
a pragmatic significance for the receiver series of linguistic rules and can be learned
(auditor). through appropriate structural hardship. In
The rational construction of an this way, evaluating experience in terms of
argument refers to a series of errors of education generates a delineation of the
understanding regarding the use of concepts linguistic framework, designed to capture the
within a theoretical dimension. Thus, complexity of the practical component in
considering a conceptual construction, even if learning. The results obtained following
it is characterized by normative correctness, scientific analyses of economic nature must
however, from a logical point of view, its be submitted as an accessible language within
normative justness does not express the a conceptual and methodological framework
essential. This is what Max Weber called through rigor and clarity. Therefore, at the
“idealtypes”. Thus, to build rationally level of interpretation, the educational
concepts in law dogmatic it relates to the performance requires a competitive
same functions of empirical discipline of assessment of the social actors but also of the
history right, in the same way as the rational activities initiated and undertaken by them.
theory of accounting is used in the same
manner in the analysis of actual behavior of Endnotes
economic units within a profit economy
(Weber, 2001). This situation, says Max [1] The principle of sufficient reason
Weber, expresses the fact that economic involves the fact that in order to accept or
theory has a different doctrinal character in reject a sentence there should be a sufficient
terms of logic, from that of the legal reason (satisfactory basis). This principle
dogmatic. In other words, the concepts of provides the foundation, the basis of
economic theory relate to a specific economic reasoning and the coherence of thinking.
reality in a way different from the one in [2] In this case it is about an
which legal domain concepts relate to the application of logic in economy through
disciplines of history and empirical sociology compound sentences. Compound sentence
of law. means a logical expression composed of
simple sentences – propositional variables –
CONCLUSIONS which can be symbolized by p, q, r, s, t and
Economic behavior in the context of propositional (or logical) operators –
the emergence and development of new social functors, connectors, junctions – which can
paradigms reflects new forms of organization have the shape of “&” (“and”), “  ” (“or”),
through which conceptual-theoretical “  ”(“implies”), “  ” (“equivalent”; “if
applications are emerging at interdisciplinary and only if ... then…”); these prepositional
context. However, such a paradigm illustrates operators represent logic constants.
a potential truth of knowledge characteristic
to the initiated approach. This situation
involves the development of certain
methodological correspondences through
which methodological-economic assessments
are considered. Therefore, at the level of
110
References:
[1]. ANGELESCU, Coralia / STĂNESCU Ileana.

(2002), Economie politică, Editura OSCAR
PRINT, Bucureşti, p.18.
[2]. COSTE, Valeriu. (1994), Managementul în
afaceri, Editura Gaudeamus, Iaşi, pp. 3-6.
[3]. GRANGER, Gilles Gaston. (1992)
„Epistémologie économique”, in
Encyclopédie économique, vol.I, Economica,
Paris, p.22.
[4]. HAYEK, Friedrich A. (2006) Drumul către
servitute, Editura Humanitas, Bucureşti,
pp.118-136.
[5]. HÜLSMANN, Jörg Guido (2003) Facts and
Counterfactuals in Economic Law” in Journal
of Libertarian Studies 17, no 1, Winter:, pp.
61-63.
[6]. KEYNES, John Neville. (1906), Studies and
exercises in formal logic (Fourth edition re-
written and enlarged), Macmillan and Co.,
Limited / London / New York: The
Macmillan Company, p.140.
[7]. KEYNES, John Neville. (1999), The Scope
and Method of Political Economy, Batoche
Books, Kitchener, pp. 2-4.
[8]. LUCA, Laurenţiu. (2005), Nebănuite aplicaţii
logico-matematice în filosofie, ştiinţă şi
comunciare, Editura Diversitas, Braşov, pp.
104-116.
[9]. MAYNARD JR, Herman Bryant /
MEHRTENS, SUSAN E. (1997), Al patrulea
val. Afacerile secolului XXI, Editura ANTET,
Bucureşti, pp. 13-17.
[10]. PERRET, Bernard / RONSTANG, Guy.
(1993), L’ Economie contre la societé.
Affronter la crise de l’integration sociale et
culturelle, Seuil, Collection Esprit, Paris, p.
160.
[11]. WEBER, Max. (2001), Teorie şi metodă în
ştiinţele culturii, Editura Polirom, Iaşi, pp.
175-176.
111
AN OVERVIEW REGARDING THE ROLE OF CAPITAL MARKETS

IN THE MODERN ECONOMIES
Şargu Alina Camelia, PhD Candidate

„Alexandru Ioan Cuza” University Iasi, Romania
Faculty of Economics and Business Administration, Doctoral School of Economics,
s_alina_camelia@yahoo.com
Abstract: The capital market plays an important role in every modern economy, regarding both, its current state and its
sustainable development. The aim of this paper is to present the main function of the capital market on all of the three
levels on which they appear, using a comparative analysis between the European capital markets and the American
ones. The functions of the capital market are identified on three levels: the macroeconomic level, the microeconomic
level and the individual level. At the macroeconomic level the fundamental role of the capital market is to provide the
necessary financial resources to the economy. At the microeconomic level the stock market provides countless
advantages to the listed firms that range from cheap access to financial resources to high exposure and publicity. At the
individual level the stock markets allows the investor to places their resources ways which maximize their gains and
minimize their risks. Also, the paper analyses the growing importance of the capital market in the process of financing
the economy, which has become an important and essential part of any long term sustainable development strategy
employed by any modern state.
Keywords: capital market, sustainable development, systemic risk, modern economy
JEL Classification: O42, E44, G11, G14, E22
main ideas of this paper, underling the role of

1. Introduction the capital markets in a modern economy.
Taking into account the current 2. The place of the capital markets in the
evolutions of the capital markets and the modern economy
general state of the economical and financial
environment, we believe that an overview of A good functioning of the capital
the role of the capital market in the modern market represents an incontestable factor
economies may prove to be useful for these days in order for the market economy to
remembering their importance. The aim of work. Regardless of the interpretations given
this paper is to present in a non exhaustive to this subject, it is considered that in order
meaner the main characteristics of the capital for the market economy mechanism to work,
markets and their importance for the modern the capital market must ensure the fulfilment
economy, using a review of the main ideas of two main objectives: first, the financing of
that appear in the academic literature so far. the economic activities and second, the
In order to achieve our goal we have insurance of the capital flows based on the
organised the paper into four sections. Thus, economic efficiency principles and the
section one provides an insight on the positive diminishing of the default risks. Based on
impact of the capital markets on the modern these principles and the effects that the capital
economy at three levels: macroeconomic, markets are producing we can argue that they
microeconomic and individual. The second are representing one of the main stepping
section underlines the main risks associated stones on which the modern world relies, at
with the capital markets while underling the least on its economical dimension.
role of the derivate products in a modern Once the capital markets have reached
financial system. Then, in section three of the their maturity, the economic exchange
paper we underline the importance of the mechanisms have reached their full potential,
capital markets on the modern economy, the “market forces” are taking the central role
using some empirical evidence based on data in the economical adjustment process and the
provided by the World Federation of economy becomes a market based entity. This
Exchanges. The last section summarises the idea is shared by Dominique Gallois which
suggestively entitles the capital markets the  the fast growing importance of the
“symbol of the free exchange mechanism”. financial sector in the overall economical
The current stock exchanges have environment and also the enhancement of
gone through a fundamental change over the the services and products that it provides
last hundred years in order to achieve their to the market.
current position, as the stepping stone of the These transformations have been
modern economy, from their humble enhanced especially by the emergence of the
beginnings (the first stock exchange in the trading technologies and informational
modern sense is considered the one founded communication methods that have enabled
in Anvers in 1531). The ultimate goal of this development of new financial services and
transformation is the creation of a stock products and have lead to the current state of
exchange able to trade 24/7 globally. A good evolution where classical trading methods are
example of the magnitude of the combining with high tech informational
transformation that these stock markets have technologies. The modern stock exchanges
gone through is the New York Stock are ideal institutions for commercial
Exchange. In 1792, 24 small American transactions in large volumes that are handled
investors, that used to meet under a sycamore in a very fast meaner (Dornescu, 2001).
in the south side of New York, have decided The stock market represents in a
to put the basis of what it will become the modern economy “an implicit democratic
largest stock exchange in the world. Two place” (Bratu, 1998), because the
centuries latter the US Treasury Secretary participation is freely to everyone and they
James Brady declared that “the New York can influence its evolution on a daily basis.
stock exchange has managed to handle the Also, the stock market enables the removal of
most astonishing transformation in the discrimination between share holders,
financial world, evolving from transaction enabling investors to take up risks in order to
settling under a sycamore to electronic gain a profit from it. The participation of the
transaction, thus becoming a model for the stock market operators on a daily basis
global financial industry” (Dominique through transactions enables it to become a
Gallois, 1997, p. 14). Currently the New York liquidity place, which represents a
Stock Exchange is characterised by a high fundamental characteristic that the stock
degree of capitalisation, the specialisation of markets are providing to the economy.
its intermediaries, fast order execution and a From a place that was considered
high degree of fluidity and liquidity. “taboo” for the inexperienced not so long ago,
In her paper, Cornelia Pop (2003) the capital market has become a place that
enumerates the main factors which drive the attracts more investors every day, both private
changes that occur in the stock markets: and institutional, and its role in the economy
 the globalisation of the investment is becoming central.
process, especially the investments in The place of the capital markets in the
equity bonds; modern economy can be identified at different
 the process of deregulation – actually a levels: at the macroeconomic level, at the
liberalisation and regulation levelling of microeconomic level and at the individual
the main markets. As a consequence to level.
this the number of investors and their Impact of the
capital markets
geographical dispersion has risen.
 the communication technologies and
networks that are more cheaper and
Microeconomic Individual
accessible to investors. This evolution Macroeconomic
Level Level
Level
enables a fast transmission of
Figure 1 - The levels at which the capital markets
information’s and transaction at very low have a direct impact on the economy
costs, enhancing the average trading Source: based on Stoica, 2002
volume.
113
At the macroeconomic level the capital Unfortunately in Romania, in 2009, only

markets manifest its fundamental role, that of about 1% of the economy was financed
financing the economy. Through this through the stock market (BNR, 2010). The
fundamental role, the capital markets manage banking system is limited in its financing
to provide an efficient capital transfer offer by the fact that it relies heavily on the
between the entities that are registering an liquidities attracted from the population and
excess of liquidity to the ones that are other economic agents. On the other hand the
registering a deficit of liquidity and which excessive financing of the economy through
manage to provide this capital with a higher banking credits can generate high systemic
usage value into the economy (Stoica, 2002). risks. A relevant example in this sense is the
The primary market provides the necessary Asian crisis, with its painful lessons, that
settings for the initial public offers to be serves to underscore the importance of capital
lunched, both for stock and bonds, which markets, because the crisis revealed major
provides the necessary financial resources for weaknesses in the region's financial markets,
the agents present on the market. The in particular, an excessive reliance on the
fundamental role of the capital market is more banking sector (Krugman, 2009). From these
visible through the secondary market which aspects, we can underline an important
provides access to the public and allows the characteristic of the capital markets, which
titles that have been already emitted to be permit the financing of the economy without
freely traded and thus allowing the function the danger of creating inflation bubbles,
of the financing mechanism for the economy. because it allow the activation of the “passive
In this context, we can identify the currency”, held by the excess liquidity agents,
interdependence between the two components and its usage in the real economy for the
of the stock market: the primary market benefit of the whole society.
provides the economy with the necessary Also at the macroeconomic level, the
funds in order for it to evolve and prosper and capital markets provide the necessary
in order for this segment to be believable and mobility of capitals among the different
attractive to investors, the secondary markets economic sectors, form the more inefficient
needs to provide the investors with the ones to the more efficient ones, enhancing the
realistic opportunity to clear their positions overall strength of the economy. By allowing
and sell their titles at a fare value price, such a dynamic, the capital market provides
almost instant at any time. This represents the an investor with the possibility to invest in
mechanism that allows the transfer of funds high innovative and high efficient sectors of
from the economic agents that are registering the economy and the possibility of immediate
an excess to the agents that are registering a reallocation of capital at the moment when
deficit. new domains are taking off. Accordingly it
To underline this important role of the allows a higher profitability.
capital market we can compare this form of Another interesting facility that the
economic financing with the alternative that capital market is providing is represented by
exist and especially with the banking sector the intermediation of mergers and
alternative. If in the European Union the acquisitions, both at national and international
economy is mainly financed through the level, which have become more interesting in
banking sector, in the United States the the last period, especially as a result of the
capital market represents the main source for financial turmoil and the necessary
financing the economy. In 2008 for example, consolidation process that has followed.
in the United States approximately 70% of the These types of operations are carried through
economy was financed through the capital the capital market using the so called “tender
market, while only 30% of it was assured offers”.
through the banking system (FED, 2010). By Because of the important role of the
contrast in 2009, in Europe, approximately capital markets and implicitly of the stock
60% of the economy was financed through market as one of their main components, their
the banking system (BCE, 2009).
114
development represents an etalon of a modern economy. Moreover o crisis of the capital

and successful economy (Szel, 2005). market can extend itself to the real economy,
The stock exchanges picture the image and even spread at an international level, like
of the economical, political and social events in the case of the financial crisis that started
that are occurring not only at the national but in 2007 in the United States and which has
also at the international level, reflecting like a spread all around the world.
mirror the real state of the economy. Because At the microeconomic level the stock
of this, it is justified to believe that the stock market has an impact on the economy through
exchange cannot represent in the medium and the multiple benefits that it is providing to the
long term a feasible alternative to the real listed firms.
economy. If the real economy has a direct We must acknowledge the fact that the
impact on the stock market, then also the benefits of listed firms have been increased
reciprocal is true: the financial fluxes forms mainly as a result of the stiffening of the
the secondary markets are useful clues for the banking credit process, in which banks
economy and determine shifts in the required extra guaranties to firms that wanted
investments that are about to be made in the to receive additional banking loans, making it
real economy, determining investors to more difficult to them to obtain new capitals
reconsider their options and allow overall a for their projects. In this context, the necessity
better allocations of financial funds in the for firms to maintain an adequate financial
economy. structure in order to be able to finance their
Even taking these realities into fixt capital assets has become more important
consideration, we must not forget that the in time (Pop, 2003, p. 202).
stock market represents only an indicator of The listing of a firm on the stock
the real economy. For example the Commerce market provides a necessary diversification of
Department of the United States uses 11 financing options. So, the firm gains in
indicators in its analysis regarding the state of economic flexibility and financial
the American economy and only one of these independence, being able to finance more
describes the evolution of the stock markets. easily its development through capital
Basically what makes the stock markets stand expansions or through the issue of attractive
out is their dramatically evolution which is financial products, like bonds that have the
highly communicated to the public. option to be turned into stocks or preferential
Not every drop in the value of the stocks.
stock market represents a sign for an The listing of a firm enables it to
upcoming financial crisis. If these drops are access different sources of financing in the
not followed by inflation, a drop in the future through the capital market and thus the
production or any other economic setbacks capital market is providing the necessary
then they only represent price corrections resources for its future development.
through which overpriced stocks are adjusted Another advantage that is generated
to their real value. More over we must take for the listed firms through the stock market is
into account the fact that the activity of every free publicity. Information regarding the
stock market is sensible to rumours or any transactions that have been registered in one
other type of news related to it, which day at the stock market are widely
sometimes tend to be followed by herd disseminated in the printed media, radio and
mentality actions, especially from the part of television, and contain, beside the
individual investors, and thus provide a very transactions summary, the names of the firms
good environment for panic attacks. listed at that stock exchange. The reputation
The impact of the stock exchange is that the firms listed at the stock exchange
tremendous on the real economy, especially have can determine a raise in their share of
in the more advanced economies where the market and thus enabling them to gain an
economic agents are used to follow the important advantage on their competitors.
information fluxes of the stock exchange in The mechanism of the stock exchange
order to determine the future evolution of the permits the determination of a firm’s daily
115
value through its stock market capitalisation. arguments regarding this aspect, underling the
The report between offer and demand for a impact that these financial products had on
certain firm’s titles establish that titles firm the diminishing of transactional risks. Many
daily value, which fluctuates and can penalise of the so called derivate financial products are
certain managerial decisions that are not in truly innovative providing benefits for all the
accordance with the fundamental objective of market participants. Overall the benefits of
any economical endeavour: the efficient derivate products are more than evident,
usage of limited resources in order to gain a while their negative aspects have been very
higher profit. little documented, tending to occur especially
At the individual level, the stock when these financial instruments have been
exchange allows investors to place their used in a malicious way, while being
resources at any time in what they believe to insufficiently supervised and regulated.
be the most efficient financial titles that are The internationalisation of the
traded, while also providing the opportunity national markets in general, and that of the
to transform almost at an instant these titles in capital market in particular, has lead to the
liquidity, both operations taking place in an enhancement of the identity losing risk for the
organised environment and at a reasonable listed firms. Thus, the stock market has
fair price. The investors are provided by the become the battleground for some violent
issuers with continuously and real encounters between firms that have different
information’s regarding the financial results financial strengths (e.g. Vodafone AirTouch
that they have obtain and also in regard to any bid for Mannesmann AG).
factors that may lead to a price shift of their Despite all the aspects presented
title. The shareholders are protected against above, we consider the advantages that the
any malicious actions that may occur on the capital markets mechanism is generating for
stock market, their rights being protected and the whole economy are more important than
underlined in the status of the stock exchange. the associated risks that exist. The stock
exchanges dissipate risks, enhance capital
3. The risks associated with the capital gains, direct information in the way it is best
markets used and keep managers competent. The
prosperity of a modern economy depends on
As we have presented, the capital its ability to foster an efficient capital market.
market has a determined role on all three Thus the capital market provides the capital
levels of an economy but we must not necessary for the development of the
underestimate the risks associated with it. economy, satisfying the interests of investors
Influenced by some reports in the who seek security and flexibility and of firms
media, a part of the general public tends to who want access to a flexible and easy to
consider the capital market as a “zero-sum reach source of financing.
game”, where the gains of one investor Taking into account the current
represent the lost of another. Moreover, there economical and financial environment, many
is some concern that the stock exchange may governmental agencies and commissions have
represent a source for economic instability, been created in order to better regulate and
the volatility of the exchange being enhance supervise the different financial markets that
by the development of derivates products and exist in the modern economy. The aim of the
their transaction (like the futures contracts or regulatory process is to provide the safety of
the options contracts). The critics, especially the transactions and that of the participants,
taking into account the recent financial ensuring and guarantying the existence of the
downturn, argue that the development of such counterparts and also to standardised
products has introduced and enhanced the procedures. Also, the regulation of capital
systemic risk that the stock markets are markets aims at protecting the investors –
generating (Obstfeld and Taylor, 2004, especially the individual ones, at allowing an
Duffie, 2007, Blanchard, 2009). The reality efficient and fluent functioning of the
has instead provided some different markets, at diminishing the effects on the real
116
economy in case of a negative evolution of The financing mechanism through the

these markets and non the least at imposing capital market has become such an important
fair and attractive practices that are mutual way for the modern economy to obtain its
beneficial for all participants (Kawai and financing resources also because of the
Pomerleano, 2010). The regulation of the permanent supervision and regulation that
capital market is carried out at national level exist in regard to the issuing of titles, both on
(and in some circumstances at international the primary and the secondary market, which
level, like in the case of the European Union), ensures the fairness of the pricing process.
according to the legislation in place, by a Also, the capital markets are providing
governmental appointed institution. Based on a financing source for the economy that is
these characteristics, the capital markets is non-monetary, non inflationist and which
regulated in the United States by the aims at benefiting all the participants to the
Securities and Exchange Commission (SEC), transactions: the title issuers, the buyers, the
in the United Kingdom by the Securities and non-monetary financial intermediaries and
Investment Board (SIB), in France by the also the stock exchanges.
Commission des Operations de Bourse and in The importance that the capital
Romania by the Comisia Na markets (and also its size) have in an
Valorilor Mobiliare (CNVM). economy can be measured through a series of
quantitative indicators, from which the most
4. The importance of the capital markets in important are the turnover – the volume of
the modern economy transactions and the capitalisation of the
market - the nominal or market value of the
The importance of capital markets in instruments that exist on a market.
the financing mechanism of the modern In the current conditions in which the
economies has grown in time, as the different stock markets from around the world
economic activities have evolved and are interconnected, influencing each other, we
diversified and the saving degree has risen. founded it relevant to provide the following
These evolutions have allowed the capital table which presents the capitalisation of the
markets to become an essential and main stock exchanges in the world. We argue
alternative mean for financing firms and that as an aftermath of the financial crises that
public entities alongside the banking sector, started in 2007, the capitalisation of the main
with which it’s competing for market share. stock exchanges in the world at the end of
The single usage of the banking sector as a 2008 has dropped from the previous year,
sole provider of capital for the economy can while at the end of 2009 an upward trend is
lead to disruptive effects on the stability of present on all the major stock exchanges of
the currency. the world.
Table 1 – Capitalisation of the main stock exchanges, in millions USD, between 2007 and 2009, yearly variation
Stock Variation Variation
2009 2008 2007
Exchange 2009/2008 2008/2007
NORTH AMERICA
NYSE-US 11.837.793 9.208.934 15.650.832 + 28,5% - 41,2%
NASDAQ 3.239.492 2.396.344 4.013.650 + 35,2% - 40,3%
EUROPE
Deutsche
1.292.355 1.110.579 2.105.197 + 16,4% - 47,2%
Börse
LSE 2.796.444 1.868.153 3.851.705 + 49,7% - 51,5%
Euronext 2.869.393 2.101.745 4.222.679 + 36,5% - 50,2%
OMX 817.222 563.099 1.242.577 + 45,1% - 54,7%
ASIA
Tokyo SE 3.306.082 3.115.803 4.330.921 + 6,1% - 28,0%
Source: Own calculation based on data provided by World Federation of Exchanges
117
We can observe that the capital markets are follows the actives of 53 stock exchanges,
playing a defining role in the economy of the during 2008, the year in which the effects of
United States of America, a good proof in this the global financial turmoil were the most
sense being the fact that the largest stock hard felt, the global capitalisation of the 53
exchange in the world operates in New York stock exchanges was of 32.551.432,8 millions
– the New York Stock Exchange. Another USD, being 46,5% smaller than the one of the
aspect that can be observed from the up table previous year (when the global capitalisation
is the fact that in 2008 all the main stock of the 53 stock exchanges was 60.854.944,5
exchanges from north America and Asia have millions USD). The revival of the activities
registered drops in their capitalisation: NYSE that characterised the most advanced stock
falling by 41,2%, NASDAQ by 40,3% and exchanges in the world was in fact a global
Tokyo SE by 28%, while the backlash of the trend, which is underlined by the evolution of
financial crisis has been also felt in Europe the global capitalisation of the 53 stock
where the main stock exchanges have also exchanges that are monitored by the World
dropped by: 47,2% in the case of the Federation of Exchanges which roused by
Deutsche Borse, 54,7% in the case of OMX 20,1% in 2009, when compared with the
and by 50,2% in the case of Euronext. previous year.
Following the massive rescued planes put in Beside the two main indicators of the
motion by public authorities all over the capital markets development that we have
world the stock exchanges have registered a mentioned, the global turnover and the
raise in their capitalisation in 2009, but still capitalisation, in order to underline the
remaining under their 2007 level. importance of the stock market in an
These evolutions that characterise the economy we can also use an alternative
main stock exchanges are also present on the indicator, represented by the ratio between
medium and small stock exchanges of the the capitalisation of a stock market and its
world. Thus, according to the statistics of the national GDP.
World Federation of Exchanges which
Table 2 – The evolution of the ratio between the capitalisation of the main stock markets and their national
GDP, between 2004 and 2009
Stock
2004 2005 2006 2007 2008 2009
Exchange
NYSE 108,3 109,2 116,4 113,3 64,8 83,4
% % % % % %
Tokyo 73,3 107,4 108,3 98,8 64,0 65,8
SE % % % % % %
Euronext 70,7 86,4 101,0 104,3 59,7 68,2
% % % % % %
Deutche 39,7 46,1 53,8 63,4 30,4 34,7
Borse % % % % % %
LSE 127,4 145,0 149,2 138,9 66,0 93,5
% % % % % %
Source: Own calculation based on data provided by World Federation of Exchanges
We can observe that the ratio of the As noted earlier, as a backlash to the
capitalisation of the stock exchanges from our massive stimulus packages put in place all
panel in the national GDP has grown steadily over the world by the national governments,
between 2004 and 2006, underling their the ratio between the capitalisation of the
raising importance in their respective main stock markets and their national GDP
economies. As the financial turmoil’s has has registered a small rise at the end of 2009.
grown we observe an abrupt drop in this ratio We can observe that this ratio is
for all the stock exchanges in our panel which registering a different value for the stock
starts in 2007 and intensified itself in 2008. exchanges from our panel, with the New York
Stock Exchange scoring the highest on the modern economy as long as proper
list, and thus underling once more the regulations and supervisions entities and
determinant role that it plays in the financing procedures are in place.
process of the US economy. The lower levels
of this ratio, that characterise the European 6. Acknowledgements
stock markets, can be attributed to the fact
that these economies tend to be financed I hereby acknowledge the support of
through the banking sector, as we have noted the “Alexandru Ioan Cuza” University of Iasi,
earlier. in the development of this article through the
Nevertheless the importance of the grant POSDRU/88/1.5/S/47646, entitled
capital markets in Europe was amplified by “Studii doctorale: portal spre o carieră de
the introduction of the single European excelenţă în cercetare şi societatea
currency, at least in the euro zone economies, cunoaşterii”, co-financed through the
starting with 2000, according to data provided European Social Fund, within the Sector
by the Federation of European Stock Operational Programme Human Resources
Exchanges. Development 2007-2013.
5. Conclusions References:
As we can observe from our paper, in [1]. European Central Bank (2010), European
a modern economy, capital markets are an Financial Integration Report 2009, Frankfurt,
Germany.
important and efficient conduit to channel and [2]. Banca Na Raport
mobilise funds to enterprises, and provide an asupra stabilităţii financiare 2010, Bucuresti,
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and competitive marketplace. In addition to internaţională, Editura Universitaria, Craiova,
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provide a medium for risk management by mecanismele monetare, Editura Sedcom
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as it plays a major role in encouraging the [8]. Federation of European Securities Exchanges
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principles, thus supporting a trading Bruxel, Belgium.
environment which is founded on integrity. [9]. Gallois D., (1997), Bursa, Editura Teora,
Despite the many benefits of the capital Bucureşti, Romania, p.14
[10]. Juvin H., (2004), Les marches financiers,
markets, we must not exclude the risks Editions d'Organisation, Paris, France, p. 239
associated with it, for example the systemic [11]. Kawai, M. and M. Pomerleano, (2010)
risk that can be generated in some cases on Regulating Systemic Risk, ADBI Working
these markets, as the recent financial crises Papers, No 189, pp. 10 -16.
shows us. Thus, the regulatory and [12]. Krugman, P., (2009), Întoarcerea economiei
declinului ș i criza din 2008, Editura Publica,
supervision entities that are responsible for Bucureşti, Romania.
the capital markets must developed and [13]. Obstfeld M. ș i Taylor A., (2004) Global
implement regulations and procedures which Capital Markets: Integration, Crisis, and
can handle the ever changing financial Growth, Cambridge University Press,
environment. Overall, capital markets provide Cambridge, UK.
[14]. Pavel S., (2005), Evaluări cantitative privind
a helpful environment for the financing of a pieţele financiare, în volumul Cuzman loan,
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Piaţa de capital— articole ș i studii, Editura [17]. Stoica, O. ș i Martos L. P., (2009), Politici ale
Universitatea de Vest, Timişoara, Romania, p. Uniunii Europene, Editura Universităţii Al. I.
340 Cuza, Iaşi, Romania.
[15]. Pop C., (2003), Tranzacţii şi pieţe financiare [18]. World Federation of Exchange (2010),
internaţionale, Presa Universitară Clujeană, Financial Raport, New York, USA.
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pieţei de capital. Pieţe de capital emergente,
Editura Economică, Bucureşti, Romania, p. 26
120
IRELEVANŢA ÎN CONTEXTUL ACTUAL A INDICATORULUI RIR ÎN CADRUL

PROIECTELOR CU FINANŢARE NERAMBURSABILĂ EUROPEANĂ
Moroşan Andrei-Alexandru, masterand,

Universitatea “Ştefan cel Mare” Suceava
Suceava, România
alexandrumorosan@gmail.com
Abstract: As a member of the European Union, Romania currently runs several programs of financing, aimed at
economic and social development and thus reducing disparity between EU members.In most financing lines (EU
programs) a key criterion in the value of the IRR. This criterion, though well-intentioned raises many problems.This
paper explores the issues, demonstrating the practical irrelevance of this indicator in the current Romnian context.The
irrelevance of the IRR derives from the subjectivity of the analysis operator. With minor adjusting, an initiated
economist is able to manipulate the results of the IRR to the desired range.In the present conditions of low absorption,
the problem is neglected, putting particular emphasis on the accessibility of funding programs and marginalizing
comparability of various projects.To eliminate this malfunction it is indicated to introduce a standardized form, which
would not allow adjustment of forecasts and the IRR's value. Within these, the user will need to enter data on current
activity of the company (production capacity, turnover, number of clients, number of competitors, development of the
distribution network) and data on proposed investment project (increase production capacity, degree of projects
innovation). These standardized forms should ensure unity in the analysis, increasing the relevance and credibility than
IRR indicator should offer.
Keywords: Financing Lines, Investment projects, Internal Rate of Revenue, Project Comparison, Indicator manipulation
JEL Classification: O16 - Economic Development: Financial Markets; Saving and Capital Investment; Corporate
Finance and Governance , G20 – General, F15 - Economic Integration , F21 - International Investment; Long-Term
Capital Movements , F37 - International Finance Forecasting and Simulation: Models and Applications
Introduction that support economic development,

promoting investments in the secondary and
Since 2007 Romania is a member of tertiary sector.
the European Union. In consequence our SOP IEC support investments in the
country have implemented several programs secondary sector, encouraging the
aimed at reducing disparities between EU development of the Romanian economy and
members, among these programs are the its adaptation to the conditions of the EU
Sectoral Operational Programme - Increase of market.
Economic Competitiveness (SOP - IEC), ROP aims to reduce disparity between
Sectoral Operational Programme - Human European regions, offering greater
Resources Development (SOP HRD), opportunities to underdeveloped regions.
Table nr. 1 – Extras from the evaluation criterion
ROP contains within itself an axis
2.5. Indicatorii financiari. Necesitatea dedicated to economic development (Axis 4).
6 In accordance with procedures established by
finanţării nerambursabile.
a. RIRF/c <= 9%, VNAF/c < 0 6 the EU, all projects submitted under the two
b. 9% < RIRF/c <= 13%, VNAF/c funding programs are evaluated using a large
3
>= 0 number of criterions. One of these criterions
c. RIRF/c > 13%, VNAF/c>0 0 is the value of the internal rate of return
Source: www.inforegio.ro (IRR).
Sectoral Operational Programme -
Environment (SOP Environment), Sectoral IRR definition
Operational Programme - Transport (SOP The IRR is a rate of return used
Transport), Sectoral Operational Programme in capital budgeting to measure and compare
Administrative Capacity (SOP - AC) and the profitability of investments. It is also
Regional Operational Program (ROP). called the discounted cash flow rate of return
This material will analyze SOP IEC (DCFROR) or simply the rate of return
and ROP, which are two funding programs (ROR). In the context of savings and loans
121
the IRR is also called the effective interest have (creating jobs, encouraging other
rate. The term internal refers to the fact that investments, raising the quality of life).
its calculation does not incorporate Calculation
environmental factors (e.g., the interest rate or Given a collection of pairs (time, cash
inflation). flow) involved in a project, the internal rate of
The internal rate of return on an return follows from the net present value as a
investment or project is the annualized function of the rate of return. A rate of return
effective compounded return rate or discount for which this function is zero is an internal
rate that makes the net present value of all rate of return.
cash flows (both positive and negative) from a Given the (period, cash flow) pairs
particular investment equal to zero. (n, Cn) where n is a positive integer, the total
In more specific terms, the IRR of an number of periods N, and the net present
investment is the interest rate at which the net value NPV, the internal rate of return is given
present value of costs (negative cash flows) of by r in (RV stands for the residual value that
the investment equal the net present value of the investment generates at the end of the
the benefits (positive cash flows) of the period N, and I0 stands for the initial
investment. investment):
Internal rates of return are commonly (1)
used to evaluate the desirability of
investments or projects. The higher a project's IRR formula
internal rate of return, the more desirable it is Note that the period is usually given in
to undertake the project. Assuming all other years, but the calculation may be made
factors are equal among the various projects, simpler if r is calculated using the period in
the project with the highest IRR would which the majority of the problem is defined
probably be considered the best and (e.g., using months if most of the cash flows
undertaken first. occur at monthly intervals) and converted to a
A firm (or individual) should, in yearly period thereafter. Note that any fixed
theory, undertake all projects or investments time can be used in place of the present (e.g.,
available with positive IRRs. Investment may the end of one interval of an annuity); the
be limited by availability of funds to the firm value obtained is zero if and only if the NPV
and/or by the firm's capacity or ability to is zero.
manage numerous projects.
Uses
Because the internal rate of return is
a rate quantity, it is an indicator of the
efficiency, quality, or yield of an investment.
This is in contrast with the net present value,
which is an indicator of the value
or magnitude of an investment.
An investment is considered
acceptable if its internal rate of return is
greater than an established minimum
acceptable rate of return or cost of capital. In
the case of EU financed projects the internal Figure 1 – Graphic representation of the IRR
rate of return must be under this minimum Source: www.wikipedia.org
value (for Romania the value fluctuates In the case that the cash flows
around 9%). The EU is supporting projects are random variables, such as in the case of
that would be avoided by other investors, on a life annuity, the expected values are put into
the bases that the return isn`t enough to justify the above formula.
the investment. The European Union is
interested in the social effect of those projects
122
from positive infinity to negative infinity, so

there is a unique rate of return for which it is
zero. Hence the IRR is also unique (and
equal). Although the NPV-function itself is
not necessarily monotonically decreasing on
its whole domain, it is zero at the IRR.
Similarly, in the case of a series of
exclusively positive cash flows followed by a
series of exclusively negative ones the IRR is
also unique.
 Extended Internal Rate of Return: The
Figure 2 – Graphic representation of the IRR for Internal rate of return calculates the rate at
two projects which the investment made will generate cash
Source: EU Cost-Benefit Analysis Guide flows. This method is convenient if the
project has a short duration, but for projects
Mathematics which have an outlay of many years this
Mathematically the value of the method is not practical as IRR ignores the
investment is assumed to undergo exponential Time Value of Money. To take into
growth or decay according to some rate of consideration the Time Value of Money
return (any value greater than -100%), with Extended Internal Rate of Return was
discontinuities for cash flows, and the IRR of introduced where all the future cash flows are
a series of cash flows is defined as any rate of first discounted at a discount rate and then the
return that results in a net present value of IRR is calculated. This method of calculation
zero (or equivalently, a rate of return that of IRR is called Extended Internal Rate of
results in the correct value of zero after the Return or XIRR.
last cash flow). Thus internal rate(s) of return Using this indicator in the EU
follow from the net present value as a financing programs is irrelevant, generally
function of the rate of return. This function is projects achieving the maximum score for this
continuous. Towards a rate of return of -100% criterion.
the net present value approaches infinity with This occurs due to lack of uniform
the sign of the last cash flow, and towards a methodology, any initiated economist can,
rate of return of positive infinity the net throe minor manipulations of the financial
present value approaches the first cash flow data guide the indicators value to the desired
(the one at the present). Therefore, if the first range.
and last cash flow have a different sign there
exists an internal rate of return. Examples of
time series without an IRR:
 Only negative cash flows - the NPV is
negative for every rate of return.
 (-1, 1, -1), rather small positive cash flow
between two negative cash flows; the NPV is
a quadratic function of 1/(1+r), where r is the
rate of return, or put differently, a quadratic
function of the discount rate r/(1+r); the
highest NPV is -0.75, for r = 100%.
In the case of a series of exclusively
negative cash flows followed by a series of
exclusively positive ones, consider the total
value of the cash flows converted to a time
between the negative and the positive ones.
The resulting function of the rate of return is
continuous and monotonically decreasing
123
applicant introduces information about the

Practical example current situation of the company and project
In ROP, Axis 4 - "business development", data. Based on an algorithm and input data the
Key Area of Intervention 4.3 grants for file provides the IRR value and other
micro-companies, the management authority indicators related to the projects effectiveness.
has provided an excel file in which the
Figure 3- Income
Figure 4 - Costs
Figure 5 –124
Cash Flow
Figure 6 – Economic Indicators IRR=15,51%

The Images above present the excel annex attributed to the fact that in early years the
filled with a projects information, the final staff isn`t familiar with the equipment,
image shows the value of the IRR (15.51%). resulting in higher costs in these years.
But this value of the IRR would not ensure Therefore the operating costs will be
the maximum score, therefore it should be increased with 5% in the first year and 2.5%
adjusted to fall below 9%. in the second (operating costs refer to raw
A first way you can adjust the materials costs and other operating
indicators value is the reduction of revenues, expenses). It is possible to make another
this reduction can be explained by the fact increase of 5% in interest expenses, given the
that immediately after implementing the present financial system. A final adjustment
project, the firm will not use the new will be made on the wage. The personnel
equipment at maximum capacity, requiring a costs will be increased by 5% so that the staff
period in which to penetrate the market. This will be well motivated in order to obtain the
decrease in revenues also can be placed on desired quality (5% these are bonuses to
policy and promotion, the company offers employees). After this second set of
discounts for large orders and also by adjustments we can see that the internal rate
charging a lower price it ensures its entrance of return reached 10.13%. Although the costs
on the market. On these grounds it is possible increase was significant the IRR's deviation is
to operate a 10% reduction in revenues. modest (less than 1%).
After the adjustments the IRR decreased to A third adjustment is made to the
10.73%. residual value, taking in account the fact
Figure 8 –Economic Indicators IRR=10,13

Also another way is to increase the there are several methods of calculating the
expenses of the firm. This increase can be residual value, and one of them allows a large
125
variation. (Referring to the method that entails and transparency of the system. It should
taking into account the market value of assets be noted that this solution would create
as if they were sold at the end time horizon significant costs, requiring a large number of
considered). Taking in account the natural evaluators, who are highly qualified persons
wear and extremely fast technical progress the requiring a significant salary.
A second solution would be to adapt
Table nr. 2 – Operation Summary an econometric model for forecasting witch
Nr. based on information provided by the
Acţiunii Cuantum
Crt.
beneficiary, would generate a forecast of
Cauze revenue and expenditure (information that
1 Reducerea veniturilor 10%
would be farther used in the assessment of the
2 Creşterea cheltuielilor:
IRR).
 cheltuieli cu materia anul 1: 5%,
primă şi materiale anul 2: 2,5% Beneficiary should provide the following
 cheltuieli salariale 5% informations:
 cheltuieli cu dobânzile 5%  Current turnover
3 Scăderea valorii reziduale 10%  Material costs and wage costs
Efecte (without the project)
1 Reducerea RIR 7,07%  Current production capacity and its
residual value may be decrease by at least utilization
10%. After reducing the residual value the  Number of existing customers
internal rate of return falls to 8.44%.  Degree of development of their
The IRR is used for evaluating distribution network
investment projects, but given that two  Marketing efforts
distinct economists conducted an analysis of  New capacity
two separate investment projects, comparing  Number of competitors in the county /
the IRRs of the two investment projects loses region / country
much of its relevance.
 Field of work
In a corporation the assessment of the
 Degree of wear of current
two projects is performed by the same team of
technologies
economists, so the approaches and procedures
 Whether or not there are contracts sign
are the same. Under these conditions a
in advance (amount, value)
comparison between the two projects is
relevant, providing true effectiveness of the  Existing loans
two projects. All this information is verifiable and
The issue that arises is that European could be easily placed in a computer program.
funds should be accessible, so the Considering the value of actual
implementation methodology must be simple, turnover, and current capacity utilization, it is
but such a flaw in the system is inadmissible. possible to determine the unit price of goods /
services provided. Used this price with the
Solution new production capacity it is possible to
The solution to this flaw, would be to predict future turnover. Materials and labor
abolish the criterion regarding the IRR, but expenses with current production capacity and
this solution would be difficult to accept, the degree of wear of the present technology
therefore the solution is finding a fair way of can provide an estimate of future costs.
implementing the criteria. The degree developed of the
A first option would be the calculation distribution network, combined with
of the IRR by evaluators and developing a marketing efforts and the number of
complex process by which to determine the customers, contracts signed in advance and
exact amount of income and expenditure to be number of competitors may provide an
generated, but this would create complaints estimate of the degree of utilization for the
from companies that submitted projects and new production capacity. If these factors
would certainly be complains at the fairness favor the firm, it is almost certain that the
126
utilization of the production capacity will be made between projects that require grant aid
near 100%. and those who could do without.
A uniform methodology would
Conclusions provide a similar approach for all projects
The manipulation of the IRR has its which would eliminate these adjustments,
limitations, to be unnoticed, the analysis ensuring comparability between efficiency
operator must understand that some indicators of various projects, and ensuring
reductions in revenue and increases of costs that European money goes to those projects
could challenge the analysis (we refer to cases whose very existence depends on them.
in which the operator applies a increases of
cost or a reduction of income over 20%). Bibliography
It is also important field of activity,
different sectors have different growth rates [1]. Bruce J. F. - Investment Performance
and dynamics. Measurement, Wily, New York, 2003
[2]. Buelens C. and others – The economic analysis of
Using the same algorithm and the state aid: Some open questions, EU Publications,
same set of information it is possible to obtain 2007
the unique methodology, which would ensure [3]. European Union – Guide to cost-benefit analysis
a fair comparison between different of investment projects, EU Publications 2008
investment projects. [4]. Evaluation Unit DG Regional Policy European
Commission – Guide to cost-benefit analysis of
EU wants these programs to finance investment projects, EU Publications, 1997
those projects that are not attractive to other [5]. Main M.A. - Project Economics and Decision
investors. The example I used in this material Analysis, PennWell, Oklahoma, 2002
(IRR = 15.51%) would be attractive to [6]. McKinsey & Co. - Internal Rate of Return: A
investors, generating enough revenue, but Cautionary Tale, 2004
[7]. Pogue, M. - Investment Appraisal: A New
through small adjustments we managed to Approach, Managerial Auditing Journal, 2004
make conform to the conditions required by [8]. www.inforegio.ro
the EU. [9]. http://europa.eu
It isn`t bad that EU funds are [10]. www.wikipedia.org
absorbed, it is bad that a distinction isn`t
127
THE MANAGEMENT OF NATURAL PROTECTED AREAS FROM BULGARIA
Associate Professor phd. Andreea Băltăreţu, „Dimitrie Cantemir” Christian University, Faculty of Touristic and
Commercial Management, Bucharest, Romania, baltaretuandreea@yahoo.com
Abstract. Bulgaria is on the fifth place in Europe concerning the variety of plants with 3567 species. Two quarters of
the entire plant species of the country exist in the three national parks and the sixth part present an increased
preservation protection. The natural biodiversity from Bulgaria is very important for the nation and it represents an
important national source for the East Europe and for the rest of the world, which determines a real support and a
special attention from the international community, especially in providing assistance from the Bulgarian government.
The national Bulgarian parks offer excellent opportunities for tourism, scientific research and education. The
regenerated resources represent a special importance for Bulgaria and they offer both a living standard and a cultural
value for the population who lives next to them, at the same time offering development opportunities for the economy of
the country. It represents a prosperity source for the local population and also an economic and social wealthy source
at a national level. The natural protected areas from Bulgaria are the most important instruments of the government for
protecting the natural resources. Each national park is administrated by a regional organism of the Ministry – The
National Park Administration. For each national park the Bulgarian Government uses a Management plan for 10
years, requested by the Aria of Protected Areas. Each plan describes the existing conditions in the park and
surroundings, including the economic, social and natural conditions. Using this information’s, each plan of
management provides action directives and specific investments for each park.
Keywords: management plan, natural protected areas, tourism, national park, sustainability
Classification JEL: O13, Q26

report between preservation and scientific
1. Introduction evaluation, administrating methods of the
The system of protected areas covers resources and permanent control of the impact
approximately 12% from the land territory of various human activities on the natural and
and offers the guarantee of a future. In this atrophic environment. The efficient
context it can be explained the focus and administration of protected areas depend on
interest on the problems concerning the the correctitude of the objectives, methods
nomination of some new protected areas and applied and not at last the resources – human,
especially on their scientific administration. natural and financial – allocated.
Obviously, the protected areas don’t The management process of a natural
mean uniform entities; they have a vast range protected area represents the assembly of
of management objectives and they are provisioned actions, organization,
administrated differently by the stakeholders. coordination, training of personnel,
At one side there is a reduced number of sits, voluntaries and local communities and also
so important and so protected that no one has the control of the ecosystem and actions made
access inside and on the other side there are to achieve the specific objectives of the sit.
the protected areas that can be considered This process cannot be reduced at one of its
common, which include landscapes, functions as none of them can define the
traditional living areas, marine landscapes complexity of the management and cannot
etc.. Some sites are public property and they assure its efficiency.
are administrated at a governmental level, Most natural protected areas benefit from
others are individual property, companies’ an area, subdivision, one of the most frequent
property, communities’ or groups’ criteria is the destination and the position of
(associations) property and they are the perimeter. According to this classification
administrated by them (owners/ the priorities, management objectives,
administrators). The result is a great variety of instrument and methods of work are
leading/administrating methods of these particularized. This approach permits a better
areas. administration of the management methods
Achieving the objectives of protected and a good adaptation to the specific requests.
areas implies a proper management,
respective the scientific establishment of
According to these there are three Flora and Fauna (The Convention from
categories of areas and accordingly there are Washington), ratified in 1990.
three management orientations:
1. Specific to areas from inside the protected 3. The actual situation
area; 3.1. The biological diversity from Bulgaria
2. Proper to contact areas from outside or/and In Bulgaria we meet the following
at the outside limit of protected areas; categories of species:
3. Influence areas from outside the protected  94 species of mammals;
area.  338 species of birds;
 36 species of reptile;
2. Legislative aspects  16 species of amphibians;
In Bulgaria, till 1998 there was just one  207 species of fresh water and
law concerning the preservation of nature present into the Black Sea;
which, ulterior has been canceled and  approximately 27 000 species of
completed. The necessity of a harmony with insects and other invertebrates;
the European legislation has determined the  between 3500 and 3750 species of
adoption of new normative acts which climbing plants;
provide special protection measures for some  over 6500 species of small plants
species, who forbid the destruction of the and mushrooms.
species of wild flora and fauna, commerce The endemic plants represent 5% from
with protected areas and also some sanctions the total flora diversity, taking into
for violating these rules. Also there was consideration that 8, 8% from the non-insects
adopted a new law of forests which species and 4, 3% from the insect species are
introduced new principles for the endemic.
management of forestry resources, their From the rare species of flora and
protection and sustainable usage. fauna we mention:
The same normative act adopted in 1998  700 species of climbing plants;
has provided also settlements regarding the  567 species of non-insects invertebrate;
founding, administration and development of  over 1500 species of insects;
national network of natural protected areas  29 species of fishes of fresh water and
and determined the involved institutions to be from the Black Sea;
responsible for the management, control and  2 species of snakes;
security of protected areas and also to  78 species of birds;
establish the rights of physical and legal  At least 10 species of big mammals.
persons concerning these matters. The biodiversity from Bulgaria includes
The Bulgarian republic has ratified species and genetic resources which are also
and is a part of the following Conventions used in commercial purposes such as: the fish
from the protected areas domain. from fresh waters and Black Sea, over 200
 The Convention of Biological Diversity species of comestible mushrooms and few
ratified in 1996; hundred local medicinal plants.
 The Convention of Humid Areas of
International Importance (RAMSAR) 3.2. The categories of natural protected
ratified in 1986; areas
 The Convention concerning the Protection Before adopting in December 1998 the
of the Natural and Cultural International normative act concerning the protected areas,
Heritage ratified in 1975; the components of the protected nature were
 The Convention on the Preservation of divided in seven categories, such as: protected
European Wild Life and Natural Habitats animals species, protected plants species and
(The Convention from Berna), ratified in five areas of protected reservation, national
1991; parks, monuments of nature, protected
 The Convention on the International localities and historic sites.
Commerce with Threatened Species of
129
In Bulgaria there are 90 reservations of 23408 ha and the localities-23527, 1 ha. In

which cover a surface of 80561, 5 ha. These most cases there are small territories with
are territories strictly protected which include surfaces of 1-500 ha, in which there are
important natural ecosystems and habitats of protected natural elements such as the
rare species. Any activities which can affect waterfalls, caves and habitats of rare and
the natural distinctive characteristics are threatened species but also local communities.
forbidden inside the reservation. The most of The historical sites are 972 and cover a
the reservations are placed inside the forestry surface of 12139, 4 ha.
ecosystems and more than 60% from the total We meet 389 species of protected plants
surface is included in the national parks. and 473 species of protected animals.
In Bulgaria we meet 13 national and The new Law of Protected Areas
natural parks which cover a surface of established the existence of the following
351583, 6 ha which represents 3, 17% from categories of protected areas: [4]
the total surface of the country. These are vast  reservations;
protected areas and present a great natural  national park;
diversity, with cultural and recreation  monuments of nature;
significance, where the natural conditions and  maintained reservations;
the ecosystems represent the dominant  natural parks;
factors. It is possible that other natural sits  protected localities.
will be included inside the national parks and The normative document stipulates the
will benefit of a protection regime. terms of changing the classification of five
The natural monuments and the from the protected areas in accordance to the
protected localities from Bulgaria are 2241 new normative act or the protected areas.
respective 123. First of them cover a surface
Table no. 1. The evolution of the number and surface of natural protected areas from Bulgaria during the period
1997-2008
Year Total surface of protected areas (ha) Percentage from the total surface
of the country (%)
1997 491 220 4,4
1998 491 220 4,4
1999 492 310 4,4
2000 514 864 4,6
2001 527 418 4,8
2002 549 927 5,0
2003 545 004 4,9
2004 544 395 4,9
2005 546 785 4,9
2006 546 785 4,9
2007 566 701 5,1
2008 581 736 5,2
Source: The National Institute of Statistic from Bulgaria (http://www.nsi.bg/Ecology_e/Ecology_e.HTM), 2009
From table no. 1 we can observe that, in a administrated by Directorships

period of 11 years, the total surface of the (Directions) which operate under the
natural protected areas from Bulgaria has control of the Ministry of Environment and
grown with 90 516 ha, the evolution being an Water Administration. The three national
ascendant one. parks are the largest and valuable natural
The most important national parks protected areas from Europe, representing an
from Bulgaria are The Pirinei, Rila and the important part of wild regions from the
Central Balkanies. They cover a total continent. The Management plans of the
surface of 193,049 ha which represent a national parks Rile and Central Balkanies are
quarter from the total. They belong to the the first modern documents of management
state, being in public property and led and for the existing preservation from Balcanies.
130
Figure no. 1. The evolution of the surface of natural protected areas from Bulgaria during the period 1997-2008
In the national parks of Bulgaria the unique Therefore, over 300 lakes and many
natural habitats and ecosystems are protected waterfalls can be found in the national parks
inside the reservations. These strictly Pirinei, Rila and Central Balkanies. One of
protected areas are often affected by the the most important rivers from Bulgaria and
activities developed in the surrounding from Balcanies has their sources in the three
territories. parks. These national parks have a key role
In these national parks we can find rivers, for the formation of water resources from SE
lakes, waterfalls and exceptional landscapes. of Europe and also they are an essential
They represent a prosperous source for the source of running water for most of the major
local population and also a wealthy economic urban centers. Even if it represents 1, 83%
and social source at a national level. They are from the territory of the country, the national
the most important instruments of the parks provide 7, 3% from the fresh water
government in order to protect the natural resources of the country.
resources. Two quarters from all the plant species
To preserve the natural health of the from the country can be found in the three
national parks one can only achieve it by national parks and from these a sixth part
using the support and involvement of visitors represents a high preservation importance:
and their communities. More than that, the  23 are local endemic species, 48
national parks have completed partnerships species are endemic for Bulgaria and
both with the non-governmental organizations 143 species are endemic for the
and also to the main local communities. Balcanies;
The three national parks from Bulgaria  105 are glacial relicts;
protect the mountain ecosystems which  179 from the species are on the Red
contain one of the most important natural List;
resources.
 92 species are protected by the and Europe live here. These include the black
Bulgarian legislation; goat from the Balcanies, the black bear, wolf
 56 species are protected by the and red deer. 25% from the small mammal’s
international legislation. species live on the territory of the three
More than that, 750 species of medicinal national parks.
plants can be found in Bulgaria. Three Over 200 species of vertebrates are under
quarters from them are inside the national the protection of both the Bulgarian
parks and they are protected by the legislation and the international one:
management of national parks. o 67% from all the fish species,
Over 250 species or the eight parts from amphibians and reptiles have a great
all the species of mushrooms from Bulgaria preservation importance;
grow in the national parks. o 90% from all the bird species have a
The natural forestry ecosystems from great preservation importance;
the national parks of Bulgaria are unique in o Bulgaria has 30 bat species (second
Europe. The forests inside these parks place in Europe); 60% from them are
represent natural important air filters and found on the territory of the three
produce oxygen and preservation sources of national parks, all species being
water. Also they represent the habitat of many protected by the national and
plant species and wild animals: international laws.
 96% from the forests are natural (they The national parks from Bulgaria are
haven’t been planted); administrated in accordance to the Law of
 The average of the trees is 90 years. the Protected Areas (1998) which stipulates
Almost two quarters have 100 years that these areas are administrated for the
and more; purpose of:
 The forests where we can find trees  Preserve the biodiversity and
with falling leaves from the national protect the wild life;
park The Central Balkanies are unique  Develop educational and
in Europe. These forests are large, research activities;
natural and cover 86% from the  Promote the rest and
wooded areas of the park; recreation;
 The cones forests cover 96% from the  Increase the wealth of local
wooded areas of the national parks communities without affecting
Rila and Pirin; the natural habitats.
 The mountain plains are found at
altitudes between 2000-2500 m in Rila 4. The Directorships (directions) of the
and Pirinei and at 1500-1850 m in national parks
Central Balkanies. More than 70%
from all the protected plant species, The Ministry of Environment and Water
rare and endemic, from Bulgaria are Administration is controlling the systems of
found in these high areas. protected areas. The executive Agency for the
Bulgaria has most of the animals environment is responsible with providing
species, from Europe and any other new methods to the Directorships of the
country, on its territory. The three national national parks in order to control and
parks represent the habitat and natural administrate de parks ecologically and
environment for the survival of all these according to the quality of the environment.
species. In the national parks from Bulgaria Each national park is administrated by
live over 4000 species of invertebrates, a a regional organism of the Ministry – the
quarter of these being extremely important to Directorship of the National Park. The law
preserve. Over 300 species of vertebrates can for protected areas mentions the following
be found in Rila, Pirinei and Central major administrative attributions of the
Balkanies. Few of the most significant Directorships:
population of big mammals from Bulgaria
132
 Coordinates the activities of the management plan is the major responsibility

organizations, institutions and other of each Directorship of the national park.
users from the national parks; The management plan includes:
 Gives permits for disforest, grass  The management of natural resources,
collecting, wild fruits, mushrooms etc security, control and sanctions;
inside the park;  Ecological control;
 Gives permits for all types of activities  Creation and maintenance of tourism
concerning renovation and itineraries, paths and additional
maintenance inside the park; services;
 Interacts and cooperates with the local  Impress the public, education
authorities, local communities, non- instruments and activities with the
governmental organizations, academic local communities.
communities, education and culture An Annual Operational Plan
institutes, business men and media. establishes the priorities for each year and it is
Each Directorship is placed outside used to describe the activities and the budget
the park and uses a communication system allocated to them.
via satellite which belongs to offices of the The activities developed inside a
park structured on sections and which national park are controlled by the
administrates different areas of the national environment legislation from Bulgaria but
park. Each Directorship and office of the park also by the international conventions for
hires local specialists, familiar with various the preservation of the biodiversity which
areas of the park and local communities. The constitute integral parts of the national
Directorship’s team is formed by specialists legislation:
from various domains which are ready to  The law for the protection of the
protect and administrate the protected areas. environment (2002) represents the
Along the members of the team we find general frame for all the
botanists, zoologists, foresters, specialists in legislation from the field but also
public relations, in information technology the principal document for the
and in financial management. Directorships of the national
parks;
5. The specific of the management plans  The Law of Biological Diversity
(2002), The Law for Medicinal
For each national park the Bulgarian Plants (2000), The Law for
Government uses a Management Plan for 10 Hunting (2000) and Fishing and
years, plan requested by the Area of Protected Aqua-Culture (2001), stipulates, in
Areas. Each plan describes the existing detail, important elements of the
conditions on the park and surroundings, environment;
including the economic, social and natural  The National Strategy for the
conditions. Using this information, each Preservation of the Biological
management plan provides action directives Diversity was the first from
and specific investments for each park. Europe and second in the world.
The management plan uses „the area” Together with the National Action
as a major instrument of management – Plan for the Preservation of the
dividing the park into areas of management Biological Diversity it represents
which depend on the preservation objectives the key documents of the state and
of the national park. These limits are define it orients the donations and the
by using natural marks such as combs, rivers, investments in the national parks.
brooks, vegetation areas, roads and paths. The The activities and projects of the
areas differ from denomination point of view, Directorships are financed by the Fund for
management objectives, activities and the management of Environment activities.
recommendations. The implementation of a There is a Fund of National Parks from
Bulgaria – the first one in Europe and it
133
was created to finance the capital expenses traditions and the needs of the local
and the projects related to the development communities. The statistic data provided
and maintenance of the protected areas’ show that half from the residents of each
system from the country. The sustainable national park collects forest fruits, weeds,
tourism activities of the local communities, mushrooms and snails.
related to the park, will be also financed. The In consequence, all the activities
annual costs of each Directorship of national developed in the National Parks Rila, Pirinei
parks are financed from the annual budget of and Central Balkanies have a minimum
the Ministry of Environment and Water impact on the natural habitats.
Administration. The capital investments
(construction, renovation, new infrastructure, Bibliography
research and training of personnel) are paid
by the Fund of Management of the [1]. Dudley N., 2008, Guidelines for Applying
Environment Activities. Protected Area Management Categories, IUCN,
Gland, Switzerland
The national parks of Bulgaria are [2]. 2009, National Institute of Statistics from
bordering 24 localities with a population of Bulgaria
over 600 000 inhabitants (7, 5% from the (http://www.nsi.bg/Ecology_e/Ecology_e.HTM),
population of Bulgaria). One of the conditions 2009
that will allow to an area to become a national [3]. 2005, Management Planning for Protected Areas,
a guide for practitioners and their bosses, Darwin
park is not only the contribution to the Initiatives and Eurosite, p.1
national wealth but also the local community. [4]. http://earthtrends.wri.org
The involvement of local population [5]. http://www.moew.government.bg/strateg_plans/n
into the national parks of Bulgaria helps them dp_e.html
to operate efficiently and with a higher
credibility.
6. Conclusions
The management plan of a protected area

represents the official document which
establishes the objectives and the
management measures which need to be
achieved to administrate the park efficiently
and in a responsible way. The management
plan is a brief description of the existing
information at the day it is created; it
establishes the major domains and objectives
and also an action plan for a certain period of
time, usually five years. Also, the
management plan represents a set of
principles, easy to understand, in an
accessible form, used to administrate a
defined area (of smaller or larger size). [3]
Bulgaria is number one in Europe
concerning the weeds’ export and one of the
most important exporters in the world. 170
species or three quarters from all medicinal
plants used at a national level can be found
inside the three national parks.
In order to create the management
plans of these national parks the activities
were organized in accordance with the
134
BRANDING ROMANIA AS A TOURIST DESTINATION
Camelia Pavel, Lecturer PhD candidate

“Dimitrie Cantemir” Christian University, Bucharest, Romania, email: camipavel2003@yahoo.com
Abstract: Nation branding is a controversial topic that has attracted increasing attention in recent years. The way in
which a nation is perceived, both domestically and from abroad, from the quality of its goods or services, to the
attractiveness of its culture and tourism, from investment opportunities and easiness to start-up a business, to its
entrepreneurship politics, economic policies and foreign policies, can be shaped under a brand, in order to give
themselves a competitive edge over their rivals in such areas as Foreign Direct Investment and tourism. One of the
most important elements related to nation branding is tourism because often is the most visibly promoted and loudest
aspect. For this reason, many public institutions spend lots of money on “selling” the country around the world. The
article provides conceptual delimitations about nation branding, tourist destination branding and the views of different
researchers found in the literature. Also, the paper intends to approach in an exploratory manner how Romania has
been presented in the communication campaigns over the years and what efforts has been made by authorities
responsible for tourism to promote the country as a tourist destination. Finally conclusions were outlined that highlight
why failed all campaigns that promoted Romania as tourist destination.
Keywords: nation branding, tourist destination, promotional campaign, Romania
JEL Classification: M31, M38, L83
Introduction By the end of the 1990s the term

nation branding started appearing in literature
In comparison with other countries [19]. In April 2002 The Journal of Brand
from Western Europe, Asia, and North Management devoted a special issue to the
America, little research has been conducted topic of "Branding the Nation" bringing
into the nation branding of Romania. This together contributions from the leading
article aims to help fill this gap in the experts in the field, including scholars [16]-
literature, by examining the contrasting [22] and consultants [6]-[20]. Since then, the
approaches and strategies used by Romanian subject itself remains somewhat confusing
authorities in their respective attempts to and debatable. This can be inferred by the
develop strong nation brand. A characteristic different views expressed in the literature.
of nation branding is that it extends beyond Different authors have attempted to
the field of tourism and into other areas of define the term “nation branding” according
national economic concern including the to their understanding and interpretation, and
attraction of foreign direct investment, export as such there is no single definition of the
promotion, and public diplomacy. The most term. Nation branding can be conceptualized
countries only clearly brand themselves for as a special area of place branding. As the
tourism purposes, so much so that tourism following definition demonstrates nation
branding tends to be confused with nation branding often refers to the mere application
branding. This is the case for what happened of branding strategies and tools for nation
with Romania branding. states: “Nation branding concerns applying
branding and marketing communications
1. Branding a nation techniques to promote a nation's image” [12].
This definition also highlights that nation
The concept of branding has been branding is concerned with image promotion
traditionally associated with corporations and that is identified as the ultimate goal.
their products and services. Today branding Another brand practitioner defined
knows no boundaries. Branding is now nation branding in a similar way but he
applied to people, institutions, political identified the government as the initiator of
entities, places, destinations, cities and even branding : “Nation branding occurs when a
countries or nations. government or a private company uses its
power to persuade whoever has the ability to Trying to initiate a debate about the
change a nation's image. Nation branding uses widening of the branding approach over
the tools of branding to alter or change the national and geographical entities comprises a
behaviour, attitudes, identity or image of a difficult task of defining its abstract content:
nation in a positive way”. [14] the national identity, that is fundamentally
Others however, see country branding multi-dimensional and is regarded as one of
as all embracing national brand strategy with the most complex tasks, as the brand image of
the aim of creating reputation capital through a nation tends to have conflicting
economic, political and social interest characteristics [12]; it can never be reduced to
promotion at home and abroad or as a a single element. The formation of national
strategic self-presentation of a country identity is a subjective process and submits to
through which a state can build a reputation changes along with the progression of time.
around product category [21]. The attempt to even it out across cultural
Terms nation branding, state branding barriers or to paste past constructions of
and country branding are used national identity over the present day, will fail
interchangeably, but nation branding remains to acknowledge the intrinsic subjective and
the most popular and widely used form. fluid nature of national identity. An “identity”
Country usually refers to a geographic is not a thing, it is a description for ways of
territory and to locations or places where a speaking about self and the community,
specific culture is produced, and in this sense yourself and your community and
'country branding’, is place branding. Nation accordingly, it does not develop in a social
refers to people with identities and culture void but rather in relation with manifest forms
and therefore nation branding is better-suited of existence.
term to describe the process of branding
people. 2. Branding a tourist destination
Whatever is the term used, a core idea
of nation branding is to identify the Today tourism is often the most
'uniqueness' of country, its people, culture or visibly promoted and loudest aspect in
landscape to identify and draw on features branding a nation, as most tourist boards and
that differentiate a country from other. many other public institutions spend lots of
Related to nation branding is the money on “selling” the country around the
concept of country or nation brand. In order world. The most countries only clearly brand
to clarify the notions, it is imperative to stress themselves for tourism purposes, so much so
that the brand is a status and the branding is a that tourism destination branding tends to be
process, that polishing the brand and his confused with nation branding.
image. The nation branding process is a kind If creation, development, employment
of improvement from the current image to the and positioning of brands are relatively easy
wish image of a nation while a country brand to understand for the tourist products and
defines a symbolic construct, which services, in the case of the tourist destinations
emphasizes the positively memorable, such activities tend to be more complex [24].
attractive, unique, relevant and sustainable Thus, developing a brand for a tourist
qualities of a nation [5]. A country’s brand destination becomes more difficult as a result
can emit a positive or a negative aura around of the multidimensional nature of the
a country’s products and services. This is the destination itself, the different interests of the
reason for that governments and countries are stakeholders present in the tourist market, the
beginning to employ branding and marketing differences between the theory and specific
techniques to show their regions and countries decision-making process involved, on the one
to the rest of the world, in order to increase hand, respectively the consensus of the
their international profile, attract foreign involved community, on the other hand, a
direct investments and make the places ideal concrete way of measuring the loyalty to the
destinations for tourism and trade. brand and, last but not least, the problems
136
associated with the financial support of the influencing positively the choice of the
brand. consumerism destination.
Brand consultants [10] discussed the
extent to which the conceptualization of 3. Nation branding vs tourist destination
branding of physical goods is relevant to branding. Case of Romania.
branding of services. They concluded that, for
products and services, principles of branding Branding Romania it’s a process,
are common and brands must be developed as easier to say than done. The Romania’s brand
the link mirroring the set of functional and story started at the beginning of the 1990s,
emotional values created by the company. when a Commission for the Improvement of
The conditions that support branding the Image of Romania Abroad was created.
in tourism has been defined as: easy First promotional campaign was in
identification by consumers, perception of 1996, when the government granted 6 million
good value for the price, easy maintenance of dollars for the publication of an album
quality, a large enough demand for the entitled „Eternal and Fascinating Romania”
general product for a chain and the existence intended to improve Romania’s image as a
of economies of scale [15]. tourism destination abroad; then as now, the
A brand as the core element of the country promotion was politicized and it
process of branding embodies a whole set of became the victim of domestic politics,
physical, social, psychological, traditional especially when there is no agreement among
attributes, perceptions and beliefs associated the different political parties about how or by
with the place – country, nation, region, city. whom the country's reputation should be
In other words, a destination brand is managed abroad. The “Eternal and
something distinctive through its positioning Fascinating Romania” launched a scandal into
in the competition through its personality the Romanian political arena and the
comprising a unique combination of Romanian Presidency has been associated
functional attributes and symbolic values. with this scandal.
A tourist destination branding is The second promotional campaign
claimed to include selection and strategic was entitled “The 1999 eclipse” and was
combination of a consistent mix of brand connected with the total solar eclipse from
elements to identify and distinguish a august. With this occasion Romania promoted
destination through positive image building. what experts have called the best vantage
These elements, similar to the consumer points for the last eclipse of the millennium.
products, are proposed to include terms, The manager of the Romanian Academy's
names, signs, logos, designs, symbols, astronomy institute explained that the
slogans, color, packages, architecture, astrological event was announced to be at its
typography, photographic styles, as well as maximum in Romania. The purpose of
heritage, language, myths and legends [8]. All campaign was to take our country out of
of these have their contributions to darkness. The budget for this campaign was
identification and differentiation a tourist of 1.5 million dollars which 140.000 dollars
destination. Due to them, tourists may have were spent on a commercial spot broadcasted
holiday memorable expectations which are on Discovery, Eurosport and Euronews
associated with a unique set of values that channels. Other 500.000 UDS were spent for
create, in time and voluntarily, positive the participation to the fairs and exposition,
associations with tourist destination. The including the printed materials [11].
elements of tourist destination brand serve to Also, for the eclipse had been planned
consolidating and strengthening the emotional the acquisition at least a one-meter long
connections between the visitor and telescope construction of an observation
destination, and the last but not the least, station outside Bucharest. But both plans
reduce the searching costs of the consumers failed over lack of funds. The results of
and perceived risk. Together, these activities campaign were disappointing, both for
serve to create an image of a destination tourists because the slow privatization has left
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Romania with only 160,000 rooms at 815 not appreciate ourselves, nor we can convince
hotels and the stories abounded of disgruntled the others” [9].
tourists who paid large amounts for rooms The next campaign to promote
with a single light bulb or rationed hot and Romania as a tourist destination was initiated
even cold water, and for authorities who in 2001 when government started realized that
estimated that 500.000 people would be Romania had „image problems”. It was a 1.7
interested to come to see the total sun eclipse millions USD project entitled „Romania –
from Romania. But the total number of always surprising”. Other source announced
foreign tourists which expressed their interest that the total costs of the campaign were
to come in Romania for the total solar eclipse around 7.6 million USD at the level of 2004
was around 3.000 peoples [11]. [17]. The difference occurs due to what was
But the country branding is not limited considered by those sources. It might be that
to its promotion as a tourist destination. The the first source only indicates the budget for
second major issue for the national brand is creating the spot and the mix of image to be
export brand. When peoples say France, they used in the campaign. And the second source
automatically think at least a few words: spoke about the total promotion costs which
wine, fragrances, cheese, and the list go on; included the spot and its broadcasting, the
when peoples say Italy, they think at fashion, printed materials and the participation to
or pasta. When other people say Romania, tourism fairs and expositions.
they think in the first place of Dracula, The promotional campaign had
Ceausescu, street children, corruption, or several steps. In 2001, under the slogan
immigrants. Even for Romanian people, the “Romania always surprising”, campaign was
Romanian products had negative connotations commissioned by the General Direction of
because Romanians loved everything which Tourism Promoting and her achievement was
was not Romanian because our products has attributed to the agency Ogilvy & Mather
suffered from the communist era and the Advertising, following a tender. The result of
memories people have left of it. Romania has tender was contested because the price
experienced with a serious problem since the offered by Ogilvy was considered by
country wasn’t associated with any particular competitors extremely low. The commercial
product, which could be made with spot contained a story that was inserted main
excellence inside the Romanian borders. tourist attractions.
For this reason, in 2001, the During the period, 2000-2003, other
Association for Products and Services numerous programs were proposed and
Promotion-Romania initiated a program under launched by the Ministry of Tourism, under
the name “Made in Romania”, a non- the guidance of minister D.M.Agathon, such
governmental programme to support and as: “Super ski in the Carpathian Mountains”,
boost the production of goods and services “Salvamont”, “Romania – Country of wines”,
manufactured in Romania. The programme “Cruises on the Danube”, “Blue Flag”, “Q
aimed to re-discover the national identity in Mark (Seal) Program”, “Romanian Casino”
its commercial displays and its slogan was and “Infoturism”. For internal tourists were
“be proud of what we make in Romania launched social programs, directed at
before looking up to the Occident”. In 2005, Romanians with low incomes: “May 1st on
the project failed. the Black Sea Coast”, “One week at the
Valentin Ionescu, the president of the Seaside”, “The Littoral for all”. Other
association for promoting Romanian products program ideas were: “Mamaia – Riviera of
and services and the coordinator of the the East”, “Europa Resort”, “National tourist
program “Made in Romania”, affirmed: “If parks”, “The rehabilitation of burnt lodges”,
the Swiss have their watches, the French, the “Old trains”, “Cultural and religious tourism”.
wines, Italians are known for making pasta All those interesting and modern ideas
and pizza and the Bulgarians for pickled were, unfortunately, lost due several causes:
cucumbers, the Romanians cannot distinguish the large number of launched program and
themselves through a product, and if we do their diversity; the time horizon established
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for implementing the programs (2-3years) “a Brancusi masterpiece.” What to outsiders

was unrealistic; the sources of funding were appears as “a simple cross” is revealed to be
not indicated and no special budgets were part of the Merry Cemetery at Săpânţa, an
allocated; no implementation guidelines were attraction in Transylvania.
established. The absence of a strategy created The project, “Romania, simply
the false belief that a good idea was enough; surprising" was cancelled in 2007. The World
transpose it into practice would be easy. This Tourism Organization criticized both the
proved not to be the case as for all the campaign and the slogan of the project and
announced programs lacked the real proposed that serious measures should be
communication between the central tourism taken to enhance Romania's visibility abroad.
authorities, local authorities, and local Richard Batchelor, the chief of international
business communities which would have the consultants’ team from World Tourism
most important role in the implementation of Organization said that slogan „simply
those programs. surprising” didn't communicate the essence of
In 2004 was started the second step of Romania for any potential visitor.
campaign initiated in 2001 (“Romania always In 2005 the Ministry of Tourism
surprising”) and same agency obtained the invested 8 million US dollars in Romania’s
contract because had no real opponents 18]. image around. Half of this money was spent
The new slogan was “Romania – simply on promoting the country abroad through
surprising”, with the declared scope of Romania’s 18 tourism operators. In the same
improving Romania’s image abroad and time, the Agency for Governmental Strategies
attracting foreign tourists. One of the spot and the National Authority for Tourism began
presented virgin nature and the Danube Delta getting involved in the issue of country
as an image for one of the world's greatest branding by ordering research studies on
wildlife sanctuaries, authentic villages which Romania’s image. In this context The Agency
is easily connected to nature, and Romanian for Governmental Strategies has conducted
hospitality. Aimed primarily at foreign several studies in order to draw a
tourists (20-55 year-old, having an average comprehensive image about Romania and
income, interested by new experiences, Romanians abroad.
culture and history), the first significant series The surveys were performed in three
of advertisements aired on Euronews, countries of extremely high relevance for
Eurosport, Discovery, CNN, and BBC in the Romania: Germany (July 2006), Italy (March
summer of 2004. The Government-sponsored – April 2008), and Spain (May 2008). The
“Romania Simply Surprising” campaign reason which lies at the ground of choosing
begun in May 2001 and has since cost the these countries for in-depth perception-studies
state around 20 million USD. is as follows: in both countries Romanians
Although professionally produced, constitute a large minority of immigrants and
they were criticized for having failed to also in both countries Romania’s image in
distinguish Romania from other countries. mass media is preponderantly reflected in a
Part of their criticism is labelled at the manner which can be situated somewhere
adjective “surprising”. “Rwanda was between negative and strongly negative. This
surprising in 1991, Bosnia was surprising in fact is considered a constant threat to
1995,” says Stefan Liute of branding firm Romania’s nation-image, not only in these
Grapefruit. “Being surprising per se is not two countries, but, by extension, in others as
potentially enticing” [7]. well.
One of the more memorable ads from The survey in Germany was
the series relies on the repetition of syntactic conducted in 2006, before Romania’s
similarities for rhetorical effect. It posits that entrance in the EU. According to the survey
even though many tourist attractions in in Germany, Romania is an unknown country
Romania may appear ordinary, this is just a for 46% of Germans, while for those who
matter of perspective. Thus, what may seem have heard about it the perception is split:
at first sight as a “simple sculpture” is in fact 27% consider it to have a positive image,
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27% consider it negative. Positive conoscerti”, takes place under the slogan
associations mention hospitality and diligence “Romania: un mondo da scoprire” and sets
of local people, nature, culture, Romanian forth to offer both Italians and Romanians the
wines, Danube Delta, Transylvania or the opportunity to participate together to cultural
monasteries in Moldova, while the negative and artistic actions, to public events and
associations are similar to the ones revealed different meetings and seminars which would
in the above-described surveys: poor, stress both the strong filiations between the
backward country, underdeveloped, no Romanians and the Italians, consisting of
infrastructure, bad services, or bad quality values, joys, interests, common hobbies, and
products [4]. mutual advantage offered to the citizens of
A key example that offers a relevant the two countries due to the things that they
feedback concerning the Romanian nation- have in common. In Spain the name of
image is Italy. 39% of the respondents can’t campaign was „Hola, soy rumano”. Both
associate Romania with anything, while the diplomatic campaigns had been included in
top of the list comprises attributes like: very the Government’s communication program,
poor people (9%), Dracula (4%), Roma, and the events had opened the series of public
Gypsies (4%), communism, Ceausescu (2%), actions which were carried out in Italy and
and Romanian immigrants (2%). The only Spain, in order to promote Romania. For the
aspects which can be put in a category with entire diplomatic campaign, the Ministry of
positive attributes are tourism (“I would like Foreign Affairs spent 7.9 millions euro.
to visit Romania”: 2%), and “girls, beautiful Another program related to the
women” (1%). In the category of notorious Romania’s promotion as a tourist destination
Romanian personalities the first position is was “Sibiu European Capital of Culture
occupied, as in the Spanish case, by 2007”, designed to promote cultural
Ceausescu (24%), followed by football player cooperation and to celebrate the European
Adrian Mutu (6%), Dracula (4%), Ramona destiny of Sibiu, through a cultural
Badescu (3%) and ex-gymnast Nadia programme with European dimension and
Comaneci (2%) [3]. significance. In terms of communication, the
In May 2008, a survey related to key objectives of this program were: changing
Romania’s image in Spain, spontaneous the image of Sibiu, increasing foreign and
statements about Romania reveal following domestic tourism, and broadening audiences
associations: poverty, misery, delinquency, for culture. The theme of program Sibiu 2007
economic problems, backward country, had presented the multicultural character of
unemployment, and famine, also connections the city over 800 years old, under the slogan
with Roma people, Dracula, communism and "City of Culture - City of Cultures".
Mafia. In the category of notorious Romanian The communication campaign was
personalities respondents indicated Ceausescu done through various promotional
(16%), Dracula (15%), ex-gymnast Nadia instruments. For this occasion were realized a
Comaneci (12%) and Romanian football series of ads: “FabriKultura”, and
players who performed in Spain, like Hagi “MetARTmoffoza” for television, with
(5%) or Gica Popescu (3%). 67% of the insertions on Euronews, Travel Channel
respondents could not name any Romanian among others, and “Marginimea” and
personality [2]. “Cheerful Summer” for internet. The “Sibiu –
After these studies, the Ministry of European cultural capital 2007” programme
Foreign Affairs, organized between was the most important cultural project to be
September – December 2008, a public organised and hosted by Romania due to the
diplomacy campaign in Italy and Spain, specific of the organisation, duration and very
entitled “The Romanians in Europe”, in order varied register of activities.
to prove that there are more things linking the One of the most important attempts to
Italians and Spanish to the Romanians and produce a country brand for Romania was the
less those that seem to separate them. In Italy, “Romania – Fabulospirit” project, designed
the campaign “Romania: piacere di in December 2006 and initiated in February
140
2007 after the evaluation of Romania's The video’s unrealistic portrayal of

perception among foreigners. Through this the country drew heated debate about national
project, Romania decided to valorise the identity and harsh criticism for turism
spiritual dimension of its people and brought minister Elena Udrea. It also generated a
forward a new slogan ”Fabulospirit”. series of viral response videos with titles such
Since its birth, the project raised as “The Truth about Romania”, “Come in the
various scandals involving its financing and summertime, when we are abroad” and “We
the agency that took over the concept, Gav are the End of Choice,” which sarcastically
Scholz&Friends. Only the slogan foreground the dire conditions that the ad
“Fabulospirit” which had not any meaning in concealed about Romania. The implication is
any language (it is a combination of two that Romanians prefer to travel abroad
words: fabulous and spirit which has some because “it’s cheaper in Turkey and Greece”.
meanings), but had the quality of being Even worse, the ad was promoted by
unique, was paid for 110,000 euro. an “turism anthem” encouraging travellers
In 2007, the project was cancelled depressed by the predictability of global
after the resignation of the Minister of tourist hotspots to head for Romania. The
Foreign Affairs, and the new leadership tune was overlaid with pan-pipes and voices
Adrian Cioroianu was promoted. He decreed with strongly-accented English stating that
its inapplicability and the importance of a Romania is a place where ‘the rivers and
sound project that would not hurt Romania's mountains have always been friends’ - this
quasi-inexistent image abroad. jars with a nation with a reputation for
In 2008, the discussions related to environmentally destructive Communist-era
branding Romania started to take a shape and mining.
in June it was announced the intention to use In this case, was commissioned a new
a budget of Euro 75million euro to promote series of ads to run on CNN and Eurosport,
Romania. The Romanian advertising which had three Romanian sport legends as
organizations got involved in helping the protagonists: Nadia Comaneci, Ilie Nastase
Tourism Ministry to write the brief for and Gheorghe Hagi. This campaign focused
“Romania’s tourism brand” international on the idea that foreigners know nothing
pitch. After the pitch, in 2009, the Romanian about Romania. One of these spots challenges
Tourism Ministry selected THR– Taylor potential tourists to admit the surrealistic
Nelson Sofres to realize Romania’s tourism projections associated with Romania. It
brand as a way to communicate Romania as a begins with the image of a happy bride in the
tourist destination. Although a pitch was company of four men. “This is Romania,”
started, the Tourism Ministry launched an Nadia Comaneci playfully comments, “the
intermediary slogan to be used until the new only country where a woman has the right to
brand was ready. marry four men at the same time!” “Discover
The new campaign “Come to Romania, the country where people are riding
Romania, The Land of Choice” was zebras,” urges Ilie Năstase. “Come to
launched in April 2009, in order to promote Romania and test the fish fruit!” Gheorghe
Romania. On 1st August 2009, Eurosport has Hagi concludes, leaving us with the image
broadcasted for the very first time the video sardines that grow on trees. The end narrates
of promoting Romania as tourist destination. words addressed to the viewer: “You know
To mark this debut, the clip was nothing about Romania, do you? It’s time to
simultaneously run on both TV as well as on come and discover it. Real Sites. Real
the largest digital media facade in Europe Experiences. Real People.” The campaign
located in Bucharest. During the period tells the audience about itself, but fails to say
August – December, and CNN broadcasted anything about the content of its own brand -
the ads that used the tagline ‘The land of except surrealist images which seek only to
choice’, revealing the concept of „one confuse the potential tourist further.
country, so many experiences”. Statistical data for January-May 2010
show a continuing decline in arrivals, of 3.5%
141
year-on-year in those five months. The total conclusions of the market research pointed
number of tourist nights in all accommodation out Romania`s most competitive 6 tourism
establishments fell by over 3% year-on-year products: cultural circuits, nature tourism,
in January-May 2010, with nights by foreign rural tourism, city break packages, active and
and domestic tourists declining by about 1% adventure tourism, health and wellness
and 4% year-on-year respectively. Foreign tourism. In the same context, it was
tourists accounted for nearly 21% of total established that Romania`s main competitive
overnight stays [26]. advantages are untouched nature and
Under these circumstances, certain landscapes, the cultural heritage, as well as
effective measures had to be adopted that the authenticity of culture and lifestyle.
would be boosted Romanian tourism as well The new logo and slogan under which
as the analysis of competitive advantages Romania is promoted as a tourist destination,
which should be carried out and of the in the coming years, have been also presented
weaknesses which should be removed from during the event in Shanghai. The tourists
the tourist market offers. from the entire world should start recognising
In July 2010, during the “Day of Romania from its new green handwritten logo
Romania,” celebrated at the World Expo in of a leaf, that promoting its nature and
Shanghai, Romania’s new tourist brand was biodiversity.
officially launched at the Romanian pavilion Regarding the visual identity of the
though the “Explore the Carpathian tourism brand, it is supported by a graphic
Garden” communication campaign. The element strongly anchored to the Romanian
event was attended by officials from Ministry nature and tradition, supplemented by an
of Regional Development and Tourism and invitation addressed to the target public. The
Ministry of Foreign Affairs, and Romania’s graphic symbol is intended to emphasize what
leading figure in the sport of Romania: Nadia Romania has the most beautiful, the most
Comaneci, Ilie Nastase and Gheorghe Hagi. interesting, and the purest. In the same time,
The brand project initiated by the suggests the variety of forms of relief specific
Ministry of Regional Development and to Romania and refers to primordial elements:
Tourism is financed from European funds, earth – water, wild nature, adventure,
under the Regional Operational Programme dynamism. “Explore the Carpathian Garden”
2007-2013 and its objective is to create a is an an invitation addressed to all those who
positive image of Romania, projecting it more wish to discover “unwalked paths” with
strongly as an attractive tourist destination, unspoiled nature, authentic culture and
which it is foreseen will indirectly help to ancient traditions. As the Minister of
attract more investors to grow business Regional Development and Tourism said,
tourism. At the same time, the project aims at “Romania is a beautiful country, which waits
meeting the specific objectives set by the to be discovered and explored……It is high
National Tourism Development Master Plan time the world should know us as a country of
2007-2026: sustainable Development of biodiversity and multiculturalism” [1].
domestic tourism, the recognition of this field Target group is the discerning
as a key factor in the economy, the initiation travellers willing to make additional efforts to
of a process of raising the awareness of the reach unexplored places and crowded areas to
Romanian population about the country`s escape from mass tourism. These people
tourism attractions and of stimulate the desire travel frequently, live in medium or large
to make them known to guests. cities, active and lead a healthy life, choosing
Romania`s tourist brand, achieved by destinations with values they believe and
the THR-TNS association, was conceived on respecting the natural, social and cultural
the basis of an ample market research environment.
conducted in Romania and in the eight main With other words, the new
markets for the Romanian tourism, namely promotional logo of Romania want to be
Germany, Great Britain, Italy, Russia, innovative, exciting, and inspired by one of
Austria, USA, France and Hungary. The the strongest symbols of the Romanian
142
people, taking into account the new global is too difficult to remember. “I doubt whether
trends toward nature protection and it's the right choice to include the name of the
preservation for the future generations. The Carpathians in the slogan because I am not
graphic element is accompanied by the words sure how well-known they are internationally.
"Explore the Carpathian Garden" below a This is not the Alps”. [27]
fresh, modern, green "Romania". “Explore” Speaking about latest tourist brand,
word is referring to target group (tourist who Bogdan Naumovici, said that he has no idea if
wants to discover) or to something the new brand is good. “If they are going to
unexplored. The most powerful element of invent something named Carpathian Garden,
differentiation was Carpathian Mountains. maybe it will work. I don’t know what that
The characteristics of the new brand could be – maybe wellness tourism, bio crops
have been highlighted through the recital of or maybe they will invent a tourist area to
the world’s best-known pan flute player promote. I would do that. Anyway, I hope it’s
Gheorghe Zamfir. The audience at the event not just a metaphor for Romania. It would be
had the opportunity to view the new inappropriate”. [25].
promotional video of the destination and A part of Romania’s marketing
received souvenirs of the new brand, given community is not convinced that the brand
out by the Romanian organizers. will work with the message and the
But the event was shadowed by composition confusing those in Romania. On
controversy back home as bloggers revealed the other hand, launching a promotional
that part of the logo is almost identical to a campaign with a plagiarism scandal is not the
logo up for sale online at 250 US dollars. The most orthodox way to attract clients. But in
leaf which at the bottom of the controversy Romania, maybe work.
was claimed to have been produced and had
its rights marketed by a Belgian designer Conclusions
through an online library, and has already
been utilized by several other European In the last three years, Romania tried
companies. After few days, the company to re-brand itself for three times as a reaction
responsible for the campaign claimed the to the negative comments generated by the
similarity between the two images is campaigns. They have focused primarily
“coincidental”. Despite this plagiarism tourism and hadn’t a resounding effect.
scandal, Romania’s tourism minister has Moreover, were the source of funding
decided that the image will continue to be scandals be used either plagiarized existing
used but payments to the company will be ideas from others.
frozen until the issue is resolved. This can mean several things: on one
Another huge aspect of the scandal hand the country is aware of an image
was the price – THR is supposedly getting problem and tries to deal with it; on the other
900 000 Euros to develop Romania’s tourism hand, the previous branding campaigns did
brand strategy not only for a logo which was not capture Romania's true identity and every
broadly criticised for looking like it been new attempt tries to get closer to its core. In
taken out of a stock image bank. A brand the mean time, all these campaigns have
strategy involves aspects such as how and suffered from lack of continuity and strategic
where to use the logo, how to communicate approach, with different ideas and a lot of
the message, which channels to reach, etc. different people assuming the responsibility
On the other hand, bbusinesspeople in over the time. They had a limited impact and
the travel sector and branding consultants say modest degrees of success.
the slogan's message is hard to decode by The old, dusty image of Romanian
foreign tourists and can generate confusion tourism, unable to offer quality services
considering that the Carpathian mountain despite the high tariffs, which has driven
range crosses several countries. Beatrice foreign tourists away over the years, can be
Danis, managing partner of branding invigorated through a number of projects
consultancy BrandTailors, believes the slogan focused on regional development. Each area
143
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[15]. Kotler, P., Bowen, J., Makens, J., (2003)
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_______________________________________
MANAGEMENT AND BUSINESS

ADMINISTRATION /
MANAGEMENT ŞI ADMINISTRAREA
AFACERILOR
146
147
SOCIAL LEGITIMACY AND BUSINESS CITIZENSHIP
Aura BRISCARU, lecturer

Petre Andrei University, Iaşi, România, E-mail: aurabriscaru@ yahoo.com
Abstract: This article presents an overview of the most important pro and contra reasons of the necessity for a business
to assume ethic obligations. Discussion on ethics in business is necessary because, business can become unethical, and
there is plenty of evidence in today’s market on unethical corporate practices. Different theoretical points of view and
empirical studies have been brought into discussion about the perception and the attitude towards business corporate
citizenship. The conclusion has been drawn that the business-enterprise, no matter its dimensions, as a good “citizen”,
has to connect and to adjust its values to its stakeholder: from a good way of being to a wise course of action.
Keywords: legitimacy, business ethics, corporate social responsibility, stakeholders, e-fluentials.
JEL: A13, D01, F23, M1
Introduction I. The economic mandate sufficiency

of businesses
The 20th century has brought again
into discussion the businesses legitimacy and The reasoning behind this statement
the evaluation and perception conventions starts from the following reality: the GDP’s
towards companies. Society has become high values, the economical successes and the
bigger, states have become smaller and the good functioning of the market do not
citizens more worried. It has been guarantee the social welfare (see the OPEC
rediscovered that the market values are not countries example). Neither the
synonymous with the society values, nor can moral/spiritual relationships nor the
they supply for or replace the latter ones. The democratic functioning criterion in a
profit, as a result of covering human needs, is community could be maintained or developed
not enough for legitimating the business from without the people being satisfied with their
the social point of view. Consequently, in material needs. Since the degree of its needs
order to obtain the social legitimacy, the is equally important, the society can’t
business – enterprise, as the main agent of evaluate business in opposite terms. As a
economical development, has to assume the result, the business has to confirm
moral responsibilities of the corporative permanently its legitimacy both economically
citizenship. This imperative claimed by and socially, and not only legally, but also
society is disputable, and the pro (e.g., voluntarily. This dimensions enforce the
Berman, Wicks, Kotha, & Jones, 1999; concept of „social corporative responsibility”.
Hillman & Keim, 2001) and contrary For the enterprise though, the aspect of
opinions (e.g. Friedman, Moneva, Rivera- admitting factually this imposition – known
Lirio & Munoz-Torres, 2007), and contra (M. as social responsibility– means to accept to be
Friedman, 1970, Freeman şi Liedtka, 1970) saddled with debts that have been negotiated
seem to be at first sight, reasonable in the already or that have been mutually accepted
same way. This is why we considered by the society. To the same effect, the society
convenient to synthesize the main types of has created social – economical entities that
argumentative judgments, and to briefly put have been given conventional specific
together opposite points of view as parts of missions: the governmental institutions are
them, in connection with the corporative charged with the citizens’ security and safety,
social responsibility. Our belief is that it the non-governmental institutions have
doesn't make any sense to talk about business philanthropic – altruistic objectives while the
or ethics without talking about human beings. profit companies provide for the people’s
needs of goods. In the transaction register, the
enterprise is legitimized and penalized
according to the quantity and the quality of
goods delivered to society and the society
148
returns to the stakeholders of the business the I.1. Theoretical arguments

costs and a surplus margin, called profit.
Moreover, in order to access the general I.1.2. The action theory describes the
social resources, the enterprise is individual and the organization as entities that
overcharged, in this way, the enterprise are in a permenent self-forming process
contributing to the maintenance of the (Deetz, 1982): the individuals form
substructure without which the society themselves in the organization, and constantly
wouldn’t be able to function. re/form the organization itself. These
The following conclusions could be forming processes, as Eisenberg (1986) puts
drawn from this reasoning: it, can be achieved in two ways: (i) through
(1).The business – enterprises’ legitimacy has human interactional activity cicles and (ii) by
to be registered in the economical field formulating and developing adequate rules
bounds for which it has been mandated. In and action roles. Most rules, norms and roles
this case, the social evaluation should only are written (codes, regulations, resonsability
make reference to the company results, slips); written ore not, these generate specific
providing that it abides by the legislation and semnifications for every human action.
the state regulations. What goes out of the Although they are singular individuals,
company is important, and not how it’s done. organizational members reflect organizational
More so as the enterprise is constrained and structures and events in their actions. The
supervised on one hand by the consumers thing that makes them act coherent and
(who decide to sanction the enterprise when consensual, and institutionalize rules of
there is an unacceptable discrepancy between cooperation, is the external environment of
their needs and standards and the company the organization. Derived, by
goods and services) and on the other hand, by institutionalizing the norms on which it acts,
the state agencies and the local – the external environment determines the
administrative ones, through drastic measures people to give meaning („sensmaking”) to
against companies that don’t abide by the their work. To „give meaning, implies an
laws. effort to separate the externality from their
(2).The shareholder theory arguments the actions”, an act that is finalized in
right to defense of prevailing institutions and organizational products and servicies, offered
practices (‘the status quo’), the extension of to the society [1].
fiduciary care by officers and directors to a The mentioned points of view in the
firm's equity owners.The ultimate goal of the action theory, allow the extraction of the next
company is to return to the stakeholders the conclusion: the external environment is the
capital invested by them, obviously along one that creates an identity for the
with the profit margin, which allows the organization,and creates the organizational
owners to reinvest in the business mebmer status by engaging individuals in
development (“the business of business, is roles and acts that meet a series of internal
business” in the famous words of M. reglementations. The normative
Friedman). internalization instrument and method is
(3).The social responsibility is actually a form materialized through comunication, dialogue
of “social control”, which is an intromission and discours.
that alters the principles of free market: self- In conclusion, the internal normative
determination. system is mainly the organization’s adaptive
This point of view seems realistic if the answer to the restraints that the normative
organization is perceived as a closed, imuable system of the environment puts on it. In other
system. In reality, the organization and the words, the internalization of the exterior
people in it represent a continuous and never normativ system in a organizational one,
finalized organizing process. To sustain this represents a method for the organization to
statement, we will briefly call on a few points obtain social legitimacy. Social legitimacy it
of view, which are integrated in the action means also a bidirected way to share/ to
theory and legitimacy theory sphere. disclosure information, data, facts, reports etc
149
from organisation to it’s medium, means that represents the organization’s premise for
organisation engages sistematic dialog with obtaining legitimacy from the environment.
stakeholders to help itself to involve The environment is built on the
significant others in sharing their insights and following determinants: „the institutional
knowledge about what to include in its logics, the governmental systems and the
management strategy. institutional actors” [4].Through institutional
logics, Scott understands the ensemble of
I.1.3. The legitimacy theory organizational principles, that act as cognitive
charts, and are guides for the multiple and
The concept of legitimacy was variate inter-organizational relations. The
defined (Berger and Lukman, 1967), as the governmental systems, refering to industrie,
organization’s conpliance process to the must regulate and control the organization’s
norms, values and social expectancy. actions. Together, they orientate the
„Organizational legitimacy reflects the institutional actors (entites with identity and a
congruence between the social system norms coherent internal and external
with involvement in the organizational interrelationship system.
activities” [2] Stakeholders are „persons ore groups
Legitimacy is, in fact, the generalized of persons that have entitled interests in the
perception of the society concerning adequate activity ore performances of the organization”
and proper actions, close to a given social [5]. The stakeholder sphere, generally
system. To grant ore lose legitimacy, the admited in specialized literature, is formed by
social actors must judge the organizational employees, consumers, business parteners,
activity by a set of accepted standards: governmental agencies and local
cultural values, norms, rules, laws. Socially administrative ones, comunities and the
confirmed, legitimacy facilitates the environment. Freeman[6] appreciates that
oportunity and acces at the „flux of resurces stakeholders have three atributes: the power
from the external environment” (Hannan& of informing the organization, the legitimacy
Freeman, 1989; Scott et al. 2000) for the of relationing and the urgency of complaints
organization, and its stability and safety also. (p.444). Stakeholders are known as a presure
To survive and develop, the organization source for change in the organization,
needs material, technical and technological meaning they can make use of their interests
resources, and at the same time, social to influence the change in the organizational
acceptancy, credibility and confidence from politics. Freeman and Gilbert (1988) offered
the environment in which it evolves. In this several axioms of strategic management,
aspect, Suchman [3] opinates that the including this one: „Effective strategy will be
organization can build its legitimacy in three formulated and implemented if and only if
manners: each player successfully puts himself or
 By conforming to the existing social herself in the place of other players and
norms; endeavors to see the situation from the others’
 By altering the social norms; perceptions.”[7]
 By identifying itself with the social Simply stated, authors such as these can’t
norms. imagine a means for creating the strategically
Because changing the norms and viable organization imagined by Milton
social values would probably take more then Friedman, such as a business, without
the life of the organization itself, and would sensitivity to sound social principles and
reiterate in a new aspect the pressure of business practices implied in the serious
change over the organization, because engagement with stakeholders over standards
identification would endanger the distinct of corporate social responsibility.
mark of the organization-environment, the The external environment agents
organization generally chooses the alternative constrain the management so it identifies
of conforming. Conforming to social norms and materialises conductes of
and systematic dialogue with stakeholders, organizational activity legitimacy. An
150
example of good organizational conduct is the Being impossible to list all the
bidirectional process of strategic potential anti-moral acts of a company and
comunication: the organization transparetly because of the lack of a precise unit of
reveals to the interested groups how and what measure for its morality, the society expects
it does, and engages internal restructurations the business – enterprise to voluntarily
as a result of the feedback from stakeholders. assume ethic behaviors and to engage in
The legitimacy is established, maintained, applying them anywhere.
challenged and protected through this At present, a company’s moral
dialogue. The authentic integration of the activism depends in many ways on the
stakeholders in the internal decision making particularities of the area where the business
processes, represents proof of the unfolds. The indicators and the standards of
organization’s good will, and an important moral businesses or of active civism seem to
point in obtaining social legitimacy. function, primarily, in the economically
Complying with the formalized regulations of developed societies, where wide groups of
the environment is necessary, but not people are interested in the relation between
suficient, for the organization to be socially companies and society. Thus, the meaning of
legitimat. Social legitimacy is represented by “business ethics” is perceived in a way by the
the perception of „good neighbour”, interested groups from USA and in another
„neighbour for changing” [8] for way by the groups coming from Chad or from
comunity/society, in other words, it represents Sudan. In USA the company will transpose
the recognition of the organization’s the social responsibility to all the processes
corporative civism status. Which means and organizational behaviors (“Strategic
more then complying to a set of rules. It CSR”), will use “advocacy advertising”,
means volutarily assuming social corporative “cause-related-marketing”, “civic
responsibilities. engagement” etc for playing its role of
“constructive member of the society”. In C. K.
II. The social responsibility, an Prahalad and Alan Hammond’s [9] view,
informative indicator “serving the world’s poor, profitability” or
“the poor people enriching the rich people”,
The corporative social responsibility is an giving us the example of a huge price paid by
ethic issue of our time. Business ethics means the poor inhabitants of a little town from
for organisation to be concerned centrally India.This is why the kit containing the
with questions about the corporation's proper instruments for corporative citizenship seems
role in and relationship to the social order. to have the most of the prescriptions in
The corporative social responsibility neither English language, as special application areas
has nor is a precise unit of measure that could for particular geo-economical zones. As a
be applied to any company from any country, result, one can say that the voluntary activity
which can be applied for polarizing the of intensifying responsible conduct standards
partisan critics and disputes. In order to depends on the limits imposed by the society.
simplify the concept’s operational
application, it has been agreed that the Conclusions
proximal sphere of the “corporative social
responsibility” should be formally reduced to The issue of defining the action frame
three indicators (“triple button line”): of the economical agents in comparison with
financial, social and environmental. the other social actors and entities, designing
Generally, each of these indicators has a optimum interrelation methods and
serious impact on people and on society in instruments between them, is still a debated
general. And consequently, the companies’ one. Clarifying the business environment’s
social legitimacy has to be evaluated in a position in the general social environment,
multidimensional way and from the multiple with all the privileges and obligations
interested group points of view. generated by it, polarizes different points of
view from theorists, institutions and civil
151
society activists. Actually, we think that the [2]. Berman, S., Wicks, A., Kotha, S., & Jones, T.
enterprise as a closed system and the one os a 1999. Does stakeholder orientation matter? The
relationship between stakeholder management
closed one, are placed in a false antagonistic models and firm financial performance. Academy
relation. As a closed system, any type of of Management Journal Al (5): 488-506.
economical entity, represents a complex and [3]. Brealy, N., The Living Company, London,
stable ensemble of socially-economical Penguin Books, 1997.
relations, created on purpose, with the explicit [4]. Eisenberg, E.M. & Goodall, H.L.,
Organizational Communication: Balancing
intention of obtaining profit maximization. creativity and constraint New York: St.Martin’s
The values on which they are evaluated, are Press, 1997
mostly financial. [5]. Freeman, R. E. & Gilbert, D. R., Jr. Corporate
As an open system, the organization is strategy and the search for ethics, Englewood
obliged to monitor, and develop social Cliffs, NJ: Prentice-Hall.1988.
[6]. Freeman, R. E., & Liedtka, J. (1991). Corporate
networks with the society Or, what social responsibility: A critical approach.
postmodernist society expects from business Business Horizons, 34(4), 92-98.
is not just their conformity to the government [7]. Handy.C., Beyond certainty, London, Penguin
formalized regulations, but also their Books, 1985.
compliance to the universal human values.
Transposed into facts, this desideratum means
self regulating the structures and conducts of
the organizations, at all their functioning
levels, into normative systems based on
People and Planet, as well as on Profit
(„triple bottom line”, or „thre P” ).
References:
[1] Weick, K. E., Sensemaking in organizations.

Thousand Oaks, CA: Sage1995, p.130.
[2] Suchman, M. C. (1995). Managing legitimacy:
Strategic and institutional approaches. Academy
of Management Review, 20 (3), pp.571-610.
[3] ibd
[4] Scott, W. R., Ruef, M., Mendel, P. J., &
Caronna, C. A. (2000). Institutional change and
healthcare organizations. Chicago: The
University of Chicago Press, p. 56
[5] Viljoen, J., & Dann, S. (2003). Strategic
management (4th ed.). Frenchs Forest: Prentice
Hall, 2003, p.205
[6 Apud Driscoll, C., & Crombie, A., Stakeholder
legitimacy management and the qualified good
good neighbor: The case of Nova Nada and JDI.
Business & Society, 40(4), 442-471, 2001.
[7] Freeman, R. E. & Gilbert, D. R., Jr. (1988).
Corporate strategy and the search for ethics.
Englewood Cliffs, NJ: Prentice-Hall, p. 91.
[8] Driscoll & Crombie, 2001, p. 444
[9] Prahalad, C. K. and Hammond, A., “Serving
the World’s Poor, Profitably”, HBR 58(2): 149.
Bibliography
[1]. Berger, L.,P., and Luckmann, T., The Social

Construction of Reality : A Treatise in the
Sociology of Knowledge. Anchor, 1967;
152
NEW STAKEHOLDERSHIP’ WEBS
Aura Brişcaru, lecturer

Petre Andrei University, Iaşi, România, E-mail: aurabriscaru@ yahoo.com
Abstract: Global connectivity has raised the stakes relating to a corporation’s accountability for its actions. Points of
view abound – on what’s harmful and what’s not, as well as what constitutes good business, good practice or even
good sense. With the advent of the Internet, NGO scrutiny is being matched by a new kind of viral and pervasive
consumer advocacy. Article is highlight to the new group of stakeholders: ‘e-fluentials”. At the same time, different
theoretical points of view and empirical studies have been brought into discussion about the perception and the attitude
towards business corporate citizenship.
Key words: legitimacy, business ethics, corporate social responsibility, stakeholders, e-fluentials.
JEL: A14, D01, F01, M14, M31
Introduction reason to cause firms to respond, to take

measures to adjust, to change their ways of
It is a very obvious truism that in an dealing business. Strikes, boycotts, rallies,
organization there are various ranges of lawsuits brought by activist groups, media
people and interest groups, including campaigns, etc. are types of pressure
shareholders, clients, suppliers, employees, engaging firms to social dialogue and
the local community, the government and convince them that social expectations are
others. Obviously, they have different degrees rational. Sometimes even ahead of the law.
of influence on the organizations' strategy and Donald and Preston (1995) made the
progress. The more common image of the distinction between non-stakeholders and
entrepreneur as an isolated person, surpassing influences the "real" stakeholders. They agree
the challenges and facing danger on their that stakeholdership, as a concept, is more
own, is long outdated. On the contrary, than a union of influence and impact.
management practice shows that Windsor (1998) describes this limited class of
entrepreneurs generally and especially the stakeholders as "beneficiaries contribute.
advanced ones, are strongly integrated in the Early efforts by business suggest that
context, possessing a high ability to identify collaboration is the best approach. Instead of
and cultivate the stakeholders. going it alone, leading organizations are
The stakeholder can be defined as a exchanging information with customers,
person or a group of people that have industry groups and nongovernmental
important interests in the well functioning and organizations to increase their access to a
performance of a certain organization, being wider pool of knowledge and their ability to
able to influence it to a significant extent. benchmark. They are joining with partners,
The needs and desires of interest groups suppliers and even competitors to exchange
become obvious and measurable to businesses leading practices and ultimately build out
when these groups begin to turn to practical common standards for sustainability.
actions. Without being perceived by firms as Standards are a requirement for effectively
rational or economic problems, meaning with implementing a corporate social responsibility
no explicit demands or expectations from strategy over the long term. By collaborating
consumers, distributors, employees, and utilizing up-to-date information and
communities, local authorities and standards, today’s organizations can improve
government, companies will not adopt sustainability, while also increasing
socially responsible behaviors. Or like operational efficiency and performance.
Shinichi Suzuki would say, "qualities which An apropiate way to comunication
aren’t required by each environment haven’t between firms and stakeholders is the
developed." dialogue. Daniel Yankelovich, (1999)
Business goal is to maximize profit [1], makes clear distinctions between
and everything that could make that happen dialogue, decision-making discussions, and
automatically becomes a compelling enough
negotiation sessions that seek agreements Katrina case). This is just one example of the
leading to action. Yankelovich says dialogue “social control of the organizations”.
has three distinct features that define it: Being aware of the fact that society
 Equality and the absence of coercive owns the necessary resources for their good
influences: all parties to the dialogue functioning, the organizations have become
are treated as equals and there is no not just collaborative to the society’s
coercion of any kind—no arm expectations, but proactively interested in
twisting, pulling rank, using sanctions, certifying their legitimacy. Social aspect
or other “forceful” influences. comparison between companies at global
 Listening with empathy: empathy is level is difficult, due to the lack of
the ability to think someone else’s homogenous indicators, the national
thoughts and feel someone else’s legislation differences in-between countries
feelings. He says a simple but and, last but not least, due to different
profound capacity to listen is at the interests of different economic entities. For
heart of dialogue. the accomplishment of a reliable model and
 Bringing assumptions out in the for the high growth of the social
open: this is something that doesn’t responsibility comparison between
normally happen in decision-making companies, a set of special social norms was
discussions but is critical to healthy created- Social Accountability SA8000151,
dialogue. It also requires those in norm AA1000 Assurance Standard and the
dialogue to suspend judgment. International Standard of Global Reporting
Initiative. Moreover, the market research
I. Why did business become positive institutes, the NGO’s, universities and a lot of
reacting to the distributive role of other institutes, publish annually national
the society? barometers regionally and internationally,
about the degree of business morality. Social
Social wellness and moral principles control, through CSR, offers companies a
as integrity, equity, transparency, and conceptual mechanism for corporate self-
responsibility have become an important control and an opportunity to look good and
competitive edge between companies in perhaps to offset negative consequences of
globalization. The moral civism of companies their operations through image management.
is attracting better employees, more loyal So, from the question “why should we
clients and more interested investors report social standard accomplishment? “, the
concerning the long-term future of the business crossed to “how can we prove better
business, and is more often sought. how responsible we are?” As a result, the
Companies realized that reputation represents organizations became positive reactive: from
a comparable value with that of tangible hiring specialists in opinion polls on the
goods. Great companies usually invest tens of interested groups, ethic officers, social
millions of dollars in social marketing, public marketing experts, consulting, free 1-800
relations, philanthropic and goodwill acts or customer service, media communicates, and
prevention of social penalties, and they other such things, to financing NGO,
voluntarily adopt moral civic behavior. associate companies with social
Altruist or opportunistic, corporative civism is organizational problems of “think tanks”,
the edge that contributes to the public profile associations and symposiums etc. are used as
perception of the business. The fact that legitimacy and social positioning tools in the
society confers moral legitimacy to business business relation with their key competitors.
doesn’t refer to sporadic philanthropic acts, Studies show the specific consumer groups of
although these are also positively or certain goods adopt skeptical attitudes
negatively rated by society (e.g. Johnson and towards the content of the systematic
Jonson’s placement from first to fourth place communication of the business (approx. three
due to the insufficient implication in the quarters of Great Britain’s population
opinioned that more information about
154
companies and good corporative social Nestlé, Anheuser-Busch InBev and PepsiCo,
conduct, would influence them more in have formed the Beverage Industry
purchasing goods) and admit (87% of Environmental Roundtable to collect and
respondents) that they are strongly influenced share data and leading practices relating to
by the leaders of opinion.[2] water conservation.
The corporative citizenship is However, until recently,organizations
obtained through the balance of the have tended to share information reactively-
business by means of its management, the in response to stakeholder demands. Those
balance being between dynamical interests that expect to gain business advantage from
of the affected groups, the economical and CSR are developing new ways to inform and
the social system belonging to the educate their stakeholders, whether they are
community where it is located. This fact is customers, employees or partners. German
obvious through the process of ethic wholesaler, Metro Cash & Carry, created a
behavior internalization by the entire two-way information exchange based on
organization, through the everyday consumers’ desire for product information.
behavior of each employee. The „Star Farm”, the name of Metro project [4],
conventional term used nowadays in order to its wholly owned subsidiary, developed a
operate with economical and social program explaining its food traceability
legitimacy aspects for the business enterprise system and how to use in-store
is agent for sustainable social development. terminal tracking machines to scan
It is a challenge for countries, economy and traceability barcodes for information.
individuals to balance the individual welfare Suppliers that cooperate with „Star Farm” and
with collective welfare, law with ethics, sell products have been audited and instructed
liberty with equality and diversity with by „Star Farm” using international quality
homogeneity. standards. An
“Democracy does not presuppose after-sales service also allows consumers to
agreement on diverse values; rather, it log into „Star Farm’s Web site” from home
suggests a way of relating values to each and search for product information by
other and of leaving the resolution of value traceability code. In the process of answering
conflicts open to participants in a public customers’ questions, these electronic
process, subject only to certain provisions searches also capture shoppers’ queries,
protecting the shape and form of the process thereby deepening Metro’s understanding of
itself…”[3]. In this case, the quality of a customer concerns about food safety and
society is given by the degree of which its quality. Innovations like these help create a
members, the citizens, can live together business culture that makes two-way
without endangering their own values. And transparency core to sustainability. Results of
the business company, no matter its size, as a our survey indicate that organizations placing
good „citizen”, has to „connect” and adjust its a higher priority on transparency and those
values both to the owners as well to the other that have attained some maturity find it easier
social actors affected by its functionality. to execute. Clearly, once organizations start
To contra/balance the stakeholdership efforts to increase transparency, they gain
power the great companies initiated their needed experience and greater confidence in
coalition. By their vision, industry coalitions the value of sharing information both within
are an excellent way to access and share a their organization and with their stakeholders.
wider body of sustainability information. Engineered creatively, these collaborations
These groups can also help organizations can do more than inform customers; instead
make better use of their information by of simply sharing information, organizations
suggesting how, for example, the information are learning to construct a true exchange,
can be deployed to change operations and where both the stakeholder and the
innovate, as well as communicate progress to organization gain knowledge to do something
stakeholders. To address this need, 12 new.
companies, including Coca-Cola, Diageo,
155
To the extent in which the business volume, speed and every-way flow of
company takes advantage of the opportunities communication, connecting people, giving
offered by society, they have to tacitly them a voice and stimulating discussions
consent, like any other social actor, to the about topics of common interest (Scott,
restriction of self-liberties, for the good of the 2006). For these reasons external PR
public interest. To be more specific, "good specialists and marketers have adopted new
citizen" companies would recognize duties to media more quickly than internal
avoid harming stakeholders and to contribute communication professionals. In part this is
to societal well being in ways that go beyond because organizations no longer control
the law and the companies' economic mission. communication, so new media require
professional communicators to rethink tactics,
II. The importance and vulnerability of strategies and their own roles. This means
reputation moving the professional role from one of
information distribution to open dialogue,
When Jody Williams was awarded the letting go of the notion of control, listening
Noble Prize for Peace for her contribution in closely to others in the conversations,
banning the use of field mines, reporters communicating honestly and equipping
asked her how she could organize over 1000 managers and supervisors as primary
activists groups, from countries of six communicators. New model of
continents, who militated in a concert for the communication, no other channels “allowed
adoption of an international legislation? The people to say things more creatively,
answer was that she used as a secret weapon expressively, precisely, and powerfully than
against governments and strong interested the Internet” and other new media.
groups: “E-mail”. The preocupation and sistematic care
This example, offered by Jody for the public wellbeing, anywahere in the
Williams, emphasizes that (i) the businesses, world a company would set bussiness,
and mainly the multinational ones, even if corellates positively with its reputation
they can’t be controlled, they can be consolidation. Increasingly, Corporate
influenced in the same manner as they exert Responsibility ratings and rankings like the
influence on life, (ii) the free consented moral Dow Jones Sustainability Index and
conformism or “autonomy of will” (E. FTSE4Good affect not only reputation but the
Durkheim) is the hardest legitimacy issuing value of a business. Reputation is also the
from the society and (iii) in the digital society shared understanding and assessment against
to choose an unexpected social way imply too which individuals compare and contextualize
much costs. their own experiences of dealing with an
The Internet and Intranets were organization.
radically altering the marketplace and the The examples about blamable actions,
nature of stakeholder relationships. New are published daily in the media, the last
social media facilitate a “powerful global eloquent example beeing Apple, when it used
conversation” in which everyone can child labour force in an asian country,
participate and share opinions, ideas, resulting in a very hursh critique from civic
knowledge and images with each other, and society from all the countries. Fifty years ago,
circumvent traditional gatekeepers. More this a socially irresponsible act had a limited
social media, refer to new electronic and web- impact potential, probably at a regional level,
based communication channels such as blogs, or at the most at national level. Today, the
podcasts, wikis, chat rooms, discussion Zimmens case – a case of corruption in the
forums, RSS feeds, web sites, social networks U.S. – was published at a global level. The
(e.g., MySpace and Second Life and other companies have verified, directly or
dialogue-creating media are revolutionizing indirectly, the consequences of their actions
communications and reconfiguring the long- on their reputation. Far from being a gratuity,
time model of internal and external the companies’ vigilency in the sistematic
communication. New media increase the activation of ethical behaviours, is expanding
156
and having new values, adequate to the act accordingly because their peers believe
retroactive perceptions of the target groups. and act the same) and to (ii) the
While these dependencies obviously communication and suggestion tehniques
complicate the task of responsible business (indirect and implicit communication is more
management, leaders of sustainable persuasive in time than one oriented strictly
organizations are learning to understand and on the subject).
act on them. Mastering this complexity
requires new levels of insight, new sources of III. How does the psyho-profile of a
information and new forms of collaboration. „brand influencer” look?
As a result, leaders in CSR are
developing coalitions of business partners, The main characteristics identified for the
NGOs and others to begin to address statute of „brand influencer” are: over the
information gaps in areas ranging from labor average education and income, more
to water standards. They’re identifying informed (including the economic sectors
leading practices and techniques to inform and companies) and more socially active
and educate stakeholders, such as customers then the majority, age is a variable and
and employees, more broadly.Overall, most negligible, in most countries they are males,
organizations know they need to engage their report more often their complaints over the
stakeholders in some way. products, are stabile when it comes to
Hence, the sociological and marketing choosing their aquisitions, based on the
research conclusions evidentiate a new company reputation – their choose or avoid a
particularity of the consumer attitude and product on a constant basis, and most
behavior: (i) small but very powerfull importantly, they have a great influence over
influential groups influence the general the buying behavior of the people around
oppinion and have hugely disproportionate them (7 out of 10 people state that they have
effects over a companies reputation, succes advised somebody in the last year not to buy
and products, and (ii) oppinion leaders have a a certain product, and 2 out of three state that
significant credibility in activating the they have changed a persons opinion
consummer aquisition behavior. regarding buying a product). These people,
The practical effects are: the opinion directly but mostly indirectly – through other
groups traditionally accepted by companies as people – pose constant pressure, „send clear
having a major impact over the consumer messages” to companies’ management to not
reputation perception, were added opinion neglect, even in economically challenging
leaders, with a large spectrum of public times their general moral duties and their
influence. Janette Henderson [5] calls them social responsability.
„brand influencers”. Who are they? They The newest influential group, only
are people that „move the bandwagon; they momentarly the last one created, is called by
can be instruments of constructing positive or Burson-Marsteller „e-fluentials”[6].
negative feelings arround your brand, both at These „online trailblazers” form and
a corporate level and product/service level. lead opinions, through internet, everywhere in
As the Edelman Barometer shows (Edelman’s the world. Their instrumentary comprises: e-
Trust Barometer) the consumer trusts more mail, discution groups, listserves etc.,
what a „person like me” says about basically all the internet based
companies, than the management or anyother communication forms. Even though adults are
company employee, government or even considered to represent only 10% of the
NGOs.” The phenomenon, based on social internet users, their oppinion impact over
science studies and research (psychology, their peers is very big: from bussiness to
political science, microeconomics), makes politics, from health to lifestyle and hobbies.
refferences to the mechanisms of (i) „social The pshychological profile of this sector of
mimetism” or „cromo effect” or „the flock influence is simillar with the anterior one:
effect” and underlines the capacity of beliefs socially active (voting people, attending
being contagious (people often believe and public conferences, implicated in local
157
commities, public speakers), socially credible available by the company (website, press
(family, friends, coleagues often ask their articles, anual rapports, public speakers etc.)
advice). Based on this, indirectly, thay can that can be considered biased, and completed
contribute to developing or distroying a brand with additional various sources that are
or the in/succes of a bussiness in general. believed to be more objective (news on radio
The best cards that this new tipe of and tv, newspapersm Facebook, blogs,
opinion leaders hold, don’t allow companies YouTube, Twitter etc.). The larger and more
to ignore them, but nevertheless even the diffuse the extra-organisational
influencer can be influenced. Thus, the strong communication process is, the more
points of „the brand influencer”, that consistent the persuasion consequences are.
differentates them from the consummer mass With the condition that the information has to
(social activism and being informed) have to be constantly checked through morally
be „consolidated” with plenty of data from responsible acts.
various sources: the information surces made
Burson –Marsteller suggests „six secretes” very usefull in „earning the e-fluentials trust, approval
and support” as follows:
Secret 1: E-fluentials are contagious. “E-fluentials make waves ( … ) they project their opinions well
above the purpose of individual contacts”. Because an E–fluential
shares his experience on avergage to 14 individuals, it is difficult for
the company to counter his effects on the brand.
Secret 2: E-fluentials share their negative E-fluentials share their new negative experiences rather then the
experiences. new positive ones (the ratio is 11 to 17). Recommendation:
companies can defend and keep their reputation intact by initiating
dialogues and a better informational exchange (ex: punctual
discussions on forums).
Secret 3: Gender affects the choice of e-fluentialE-fluenţials have different behaviors on-line. As a general trait: men
consulted sites search and offer technology related information; women are
preocuppied and mobilize other women on matters that pertain to
food and health. Recommendation: the marketers have to
personalize their campaigns and offers deppending on gender and
speciffic interests.
Secret 4: E-fluentials are looking for key E-fluentials do their homework before buying something (84% have
information read last year information on websites specialized on
products/services that they are interested in buying, and 7 out of ten
e-fluentials check the veridicity of the oppinions presented in these
websites with other on/offline sources) Recommendation:
companies can proove the accuracy of the information posted on
their websites by posting additional links to online external sources.
Secret 5: E-fluentials value companies websites. For companies in specific economic branches (technology, finance,
pharmaceuticals, auto etc) e-fluentials use as an information source
the company site rather then other online sources. Recommendation:
companies have to find the easiest an most sincere way of
presenting their websites, products and services.
Secret 6: E-fluentials are ready to cooperate and E-fluentials respond to e-mail directed campaigns, and 90% open
get involved unsolicited emails from trustworthy sources. Companies that hold a
good reputation, with acclaimed brands, motivate e-fluentials to
open e-mails, to „hear” and disseminate their messages.
Recommendation: the investion in on/offline promotion, has
positive effects in directing the e-fluentials toward visiting those
specific websites.
Personal adaptation - Source: The Power of Online Influencers. Your Company’s Newest Stakeholder Group, Burson
Masteller [7]
„The secrets” made public by companies pertaining to the relation organization –

simmilar to Burson-Marsteller (oriented external medium), in addition to underlining
towards researching various aspects the importance of maintaining a permanent
158
dialogue with all the groups interested in the relationships with others. Integrity is what it
enterprise-bussiness, evidentiate, without gains from being consistently trust-worthy
exempt, the fact that the honesty and accuracy and trusting.
of the information provided to the exterior, as To prove their citizenship and to grow
well as the availability/transparency to the the focal firm’s market visibility, companies
„social control” is an imperative of our times. addressed (i) a lot of and vary programs to
"The ethical tendency goes hand in hand with qualify its stakeholders. Added of this the
the progress of the comunicating enterprise, a leader companies initiated (ii) partnership and
„total” institution from now on, strategically coalitions as an appropriate respons to the
interested in demonstrating it has a sence of actual conectivity of the
social and moral responsability. The classical stakeholdership’webs. All these because the
system, based on the natural right of propriety importance of business credibility through its
and on the ‚invisible hand’ of the market has stakeholders remain an indicator to
been replaced with an open and produced, organisation. It configures the borners of
problematic and comunicational legitimacy organisation reputation and consequently its
system. Now, the enterprise’s legitimacy is economicaly success.
neither given ore contested,it is built and sold, The multinationals confirm (see their
we are living in the value marketing and governance principles) the stakeholder
promotional legitimacy era, the ultimate stage management leads to better performance, by
of the postmoralist secularization.”[8] protecting and enhancing corporate
reputation, and to competitive advantage for
Conclusions their organization.
The ethic business philosophy References:

surpassed the metaphysical context; the
activation of social responsibility strategies [1] Daniel Yankelovich, (1999), pp.41-44)
by the business, allows their social legitimacy [2] Ethical Companies Ipsos Mori, www. ipsos-
mori.com.
and the consolidation of their reputation. [3] Held, D. S., 1996, p.298
Some organizations, more then others, [4] http://en.starfarm.com.cn/News/Company/200906/
actively monitor their social environment, and 04-298.html
make adjustments based on the lessons they [5] Ipsos Mori ibd
learned from the dialogue and feedback [6] The Power of Online Influencers. Your
Company’s Newest Stakeholder Group,
transmitted by the environment; this process www.burson-masteller.com
reflects the stakeholders open and adequate [7] ibd.
management system. [8] Gilles Lipovetsky, 2000, p. 87
Stakeholders are used to evaluate the
organizations conformity at a specific model Bibliography
ore standard. Our century’s moral paradigm
regarding the business – organization, is the [1]. Held, D. S., Models of Democracy, Stanford
University Press, 1996.
known and accepted corporative social [2]. Lipovetski, G., Le Crépuscule du devoir, Paris,
responsibility: Gallimard, 1992
The conclusion we can draw is that the [3]. Yankelovich, D.,The Magic of Dialogue, New
corporative social responsability model is York: Simon and Schuster, 1999
evolueting on two axes: stakeholders and
communication.
The legitimacy’s efficient
management is measured in credibility and
stakeholders trust degree. Trust is seeing as
confident positive social expectations
regarding organizational conduct. Trust
involves honorable intentions, motives, and
predictability in its actions and in
159
CURRENT ASPECTS REGARDING EMOTIONAL INTELLIGENCE AND LEADERSHIP
Larisa Dragolea, Lecturer PhD

“1 Decembrie1918” University of Alba Iulia, Romania, larisadragolea@yahoo.com
Cotîrlea Denisa, PhD Student
“1 Decembrie1918” University of Alba Iulia, Romania, cotirlea.denisa@yahoo.com
Abstract: The present paper work contains aspects about the emotional intelligence, which has become a popular topic
in the business press in recent years. The primary aim of the work paper is to help readers get a view of current
conceptualizations of emotional intelligence, while providing an opportunity to see the interferences ans similarities
between it, management and leadership. This work paper also contains some aspects regarding a study which reflects
emotional intelligence in Romania, whose results were interpreted and analyzed.
We all know that leadership abilities vary according to rater perspective and level of emotional intelligence. In
general, co-workers seem to appreciate managers’ abilities to control their impulses and anger, to withstand adverse
events and stressful situations, to be happy with life, and to be a cooperative member of the group. These leaders are
more likely to be seen as participative, self-aware, composed, and balanced.
This subject was chosen subject because -in authors’ opinion- the ability to demonstrate yourself as a
cooperative, contributing, and constructive member of one group is critical for long-term career success.
Keywords: emotional intelligence, management, leadership;
JEL codes: M00, M19, Z00

intelligence, and thus shaping the concept of
“True leaders impress us; they bring to life “emotional intelligence”.
passions and everything that’s good in us. In 1985, Howard Gardener, a
If we try to explain why they are so renowned psychologist, expanded the vision -
efficient, we’re talking about strategy, existent at that time – over intelligence and
vision or incisive ideas. But reality is at a proposed seven types of intelligence, which
different level, fundamental: true leaders also included social intelligence. The idea
turn to emotions […]; they set themselves was that success, both in the professional
up as the emotional guide of the group.” environment and in the private life (at least
Daniel Goleman where the leading of other people is
involved), depends on the manner in which
leaders and managers understand themselves,
I. Introduction
but also the people around them.
According to other authors, emotional
Emotional intelligence has become a
intelligence is a concept born in the United
vital element for the way today’s leaders
States in 1990 in an article written by John
approach the growing challenges they face in
Mayer and Peter Salovey [12].
the business environment.
Claims have been made that the higher
This subject was chosen because
up a person goes in the organization, the more
emotional intelligence can assist leaders in an
important emotional intelligence becomes,
evermore difficult leadership role and in the
compared to intelligence quotient (IQ), and
middle of the “Talent War” [11] and,
technical skills (Goleman and others, 2002).
especially at the highest levels in
This is due to the fact that the ability
organisations, it can give developing leaders a
of the leader to be able to identify and
competitive edge (Childs, 2004).
understand the emotions of others in the
According to the specialized literature,
workplace, to be able to manage their own
the emotional intelligence has been
and others’ positive and negative emotions, to
discovered since 1980, when Reuven Baron
be able to control emotions in the workplace
was researching the human qualities which
effectively, to utilise emotional information
favour success; he showed that in this
when problem solving and to be able to
processes there are many dimensions
express their feelings to others is integral to
involved, surpassing the concept of traditional
the leader being effective at creating
appropriate levels of job satisfaction (Gardner the accession in the chosen career. Thus, if we
and Stough, 2002). create a balance between IQ and EQ, the road
The appeal of emotional intelligence to managerial success will be open.
is, therefore, due to the idea that success is According to Goleman, emotional
not simply determined by well-known intelligence refers to the capacity for
abilities, such as verbal and quantitative, but recognizing our own feelings and those of
also by abilities pertaining to emotions [21]. others, for motivating ourselves, and for
It must be said that this concept was managing emotions well in ourselves and in
massively popularized by Daniel Goleman, our relationships. It describes abilities distinct
who, in 1995, published the bestseller from, but complementary to, academic
“Emotional Intelligence”. intelligence, the purely cognitive capacities
measured by IQ. [7]
II. EQ vs. IQ In contrast to IQ (or pure cognitive
capacity), which remains relatively fixed
Intelligence Quotient (IQ) and the throughout one’s life, “emotional intelligence
Emotional Intelligence Quotient (EQ) are develops with age and experience from
complementary, and their measurement childhood to adulthood” and, through effort,
allows the assessment of the capacity to can be improved at any age [7].
succeed in life. Research shows that emotional
Emotional intelligence is not in intelligence could be even more important
opposition to IQ, but is an extension of the than the combination between the cognitive
human’s potential to succeed in a people ability and the technical skills. According to
orientated environment [8]. Goleman [6], emotional intelligence is almost
IQ represents the genetic potential we wholly responsible for the superior
are born with and is imbedded after 12 years performance in leadership roles. Actually,
old; the intelligence quotient can’t be certain studies point to the fact that emotional
developed or improved after this age; this intelligence is twice more important than IQ.
represents a threshold that can only point the It was noticed that success in life is
path towards a certain career or field. determined in a pretty small measure by IQ
EQ can be taught, developed and (20%).
improved at any age; it represents the blend According to the conclusion of the
between personal abilities and experience, studies (Table 1), it was proved that:
and the emotional maturity which determines
Table no. 1 – EQ vs. IQ

Emotional Intelligence: EQ – Emotional Intelligence Intelligence:
Quotient IQ – Intelligence Quotient
 Can be “taught”, increasing the level of general  Is developed in the school years and, after the teen age
intelligence period , it usually remains at the same level for life;
 Works well and fast in any situation;  Works well only in the situations when the individual
is calm;
 Contributes in a 80% proportion to the professional  Contributes 20% to the professional and personal
and personal success; successes;
 Means you know how to handle a certain situation;  It means that theoretically you should know how to
handle a situation;
Thus, EQ and IQ are complementary emotional intelligence and to put in the

and can coexist productively. Furthermore, necessary effort to improve its quality. In
emotional intelligence is not the antithesis of addition, EQ gives us the self-knowledge
IQ, but rather a combination of both emotion capacity and thus, the self-control capacity.
and cognition (Stein and Book, 2001). Therefore, we can recognize the
Emotional intelligence doesn’t replace IQ, but moods we go through, we can clearly express
on the contrary, it requires a high IQ to our thoughts, we can understand others and
understand the advantages and the role of we can adapt to the changing conditions and
161
maintain a realistic and positive attitude Most good leaders hold a set of
during the challenges we go through, etc. competencies which fits in the following
areas:
III. Emotionally intelligent leaders and  Personal competencies, such
leadership as the motivation to succeed, self confidence,
dynamism, personal efficiency;
To lead and, at the same time, to  Social competencies, such as
overcome the personal stress that comes with the ability to influence, political judgement,
the leading process requires self-discipline. empathy;
To lead means to develop the capacity to  Cognitive competencies, such
manage yourself, to wisely manage your own as conceptual thinking, the “bird’s eye view”;
psychic and physical resources. The herein figure (Figure 1) shows
Unfortunately, the leadership concept these competencies as being one of the
seems to have been “demonized by too many leadership’s dimensions. Therefore, they can
awkward attempts to sell as vitamins for also be enframed in a radial process of
leaders an untested blend of managerial and stratification that has at its core needs,
communication techniques, spiced with emotions and personality features; next are
elements of corporate organizational culture the values, beliefs, attitudes, the self image;
and decorated with success stories about they are followed by competencies and
American companies”[Daniel Bichiş]. knowledge.
The definitions of leadership imply The impact of the interactions
the fact the leader has the capacity to tie the between these sets of variables makes its
present values and beliefs to the needs, goals, presence felt in behaviours and actions.
values and beliefs of future generations, and
this is the actual “magic” of leadership.
Fig. 1 – The competencies circle
The decisive factor of an efficient The Self-directed learning process was

development of the leadership competencies elaborated by Richard Boyatzis during three
is self-directed learning: the deliberate decades of research about the development of
development or stimulation of an existent the competencies needed to lead. Thus, the
personality feature or of the desired self-directed learning begins from five
personality. discoveries, each representing a discontinuity.
For this is necessary to create the The goal is to use each discovery as an
image of the ideal self, as well as the correct operating instrument of the changes necessary
image of the real self. The improvement is to become an emotionally intelligent leader
more efficient and lasting when the changing because those who are emotionally intelligent
process and the necessary steps which must can connect quite smoothly with people, be
be taken are understood. astute in reading their reactions and feelings,
162
lead and organise, and handle disputes that it becomes more and more important in a
are bound to flare up (Goleman, 1996). more volatile and competitive environment.
As the same author says, those people The leader is the one who establishes
are the natural leaders, the people who can the strategic direction of the organization, by
express the unspoken collective sentiment and envisioning its future, and then he elaborates
articulate it so as to guide a group towards its and puts into practice the strategy; thus, he
goals. They are emotionally nourishing — becomes the agent of change within the
they leave people in a good mood. [6] organization. It must be mentioned that a
vision which leads the organization towards
IV. Leadership vs. management success is not necessarily something
spectacular and unseen before. It serves the
The majority of today’s companies are interests of the clients, share-holders,
mostly managed and less led. They need to employees and is realistic.
develop their capacity to exercise leadership, In the communication process the
while improving their abilities to lead; the leader gives birth to, he addresses and adapts
companies must not lose sight of the fact that to the needs, emotions and values of the
a powerful leadership and a bad management people who want to follow him. Most times,
is a situation worse than the other way communications goes beyond the borders of
around. Some people have the ability to the organization, drawing in clients, suppliers,
become excellent managers, but are not as partners, etc. Credibility is absolutely
good as leaders. Intelligent companies lay mandatory to make the messages
stress on both types of people, trying to make communicated by the leader accepted.
them work together. Therefore, the leader must be credible
Leadership and management represent through his reputation and integrity.
two distinct systems and are complementary In order to be followed in
when working with people in an accomplishing the vision and strategy, the
organizational context. Each system has its leader motivates the people he addressed his
own specific functions and is not superior to message to by using several methods:
the other one.  he adapts his addressing style to the
Management is connected to the characteristics, values and needs of the
efficient development of complex activities in auditorium;
a given context. An adequate management  he involves them in the decision-
gives order and consistency to key making process;
characteristics needed for the organization’s  he supports them in their entire
success, such as the quality and profitability activity through coaching, feedback, personal
of the offered products and services. This example, encouraging them to grow and
implies setting goals on short term, planning, become more confident in their own powers;
fixing the budget, allotting the necessary  he awards them for accomplishments
resources, etc., but all these must be preceded and gives them credit, etc.
by establishing and communicating the
vision, mission and strategy – activities V. Case study: Emotional intelligence in
belonging to the leader. Romania
The relationships with them are fair,
adequate with the status of each person in the The goal of the study conducted by
organization, but the involved emotional level Competent Consulting was to collect relevant
is kept at a minimum. It has the role to check information that will allow the realistic
and monitor the results, to identify the assessment of the impact that emotional
deviations and to decide how to eliminate intelligence has over the activity of
them. employees and managers who work in
Unlike management, leadership is Romanian companies (Daniel Bichis was
connected to the changing process, that’s why responsible for this project).
163
Emotional intelligence represents the It is obvious these qualities are

ability to perceive, understand and use extremely useful to people who hold leading
emotions in order to make optimum decisions positions, both in companies and in
and put them into practice in a manner as institutions and non-governmental
efficient as possible. Over 80% of the factors organizations.
which determine professional success and In Bichis’ opinion, his studies
reaching a high level of satisfaction in life are conducted world-wide have shown that
associated with the Emotional Intelligence emotional intelligence is the one that makes
Quotient (EQ) and are independent from the the difference between leadership and
rational or academic intelligence quotient leadershit, meaning the difference between
(IQ). leading through delegation, couching and
In parallel with the accumulation of self-motivation, and the leading based on
knowledge and solutions for logical problems, authoritarianism, control and negative
people also develop the capacity to detect feedback.
their own emotions and the emotions of the The “Emotional intelligence at the
persons around them, the capacity to analyze work place 2007” study was conducted at
the emotional impact their actions could have, national level between March 26 and June 15,
the capacity to bring to life in themselves and on a representative sample of 1963
in others motivating emotions, which can respondents, among who 1277 were women
sustain their decisions, the emotional balance and 686 were men (Fig. 2).
and optimism, as well as self confidence and
trust in others.
Fig. 2 – The respondents of the case study
The margin of error was less than  a drop in the activity’s efficiency.
2.2%. The study shows for the first time
information specific for Romania, relating to a) Emotional intelligence
the impact of the EQ’s regional distribution The study showed that Romania is
and of the types of emotions felt at the work among the countries with a high level of
place over: emotional intelligence; our country holds an
 the efficiency of the professional average EQ of 104, above the American
activity; average (of 100). The biggest EQ belongs to
 the stress level and emotional Israel, with an average of 112, and the lowest
tiredness; is recorded in Canada, only 95 (Table 2)
 the quality of relationships;
 professional communication.
The study followed three factors
correlated to the professional activity, which
measure the stress’ impact:
 physical and emotional exhaustion;
 the tendency to not get involved;
164
Table no. 2 – Romania’s level of EI From the point of view of emotional

balance[12] (the positive and negative
feelings felt at the work place), the more
balanced are the men in the West and South-
West regions (Crişana, Banat and Oltenia); at
the opposite side are the inhabitants of the
North-East region (Moldova and Bucovina).
Taking into consideration the obtained A relatively stable emotional balance is
results regarding the value of the EQ on shown by the people living in the North,
regions (Fig. 3), it was noticed that: Centre and South-East regions (Maramureş,
Transilvania, Dobrogea and Muntenia), as it
is shown in Fig. 5.
Fig. 5 – Emotional balance

Fig. 3 – EQ values on regions The lowest level of emotional
intelligence is shown by the males working in
 the highest values are in the West and agriculture, followed by the ones in
South-West regions; constructions, NGOs, education and research.
 at the opposite side are the habitants The highest level belongs to the men who
of the North-East regions; work in the public administration (Fig. 6).
 the habitants of Bucharest and of the Among active persons, the lowest EQ level is
Centre, South-East and North-West displayed by males working in small
development regions have average levels of organization (1 to 50 employees) and at the
EQ. opposite pole are the ones in organizations
At national level, the women are less with 501 to 1000 employees.
stressed than men and have a higher level of
emotional intelligence (EQ). Therefore, if in
Bucharest the women and the men have
approximately equal levels, in the other
regions of the country, the women surpass the
men with 5 to 8 points (Fig. 4).
Fig. 6 – EQ for male respondents
The lowest level of emotional

intelligence is recorded for males with a
minimum professional training (grade
Fig. 4 – Differences
school), paradoxically followed by the ones
who have a PhD. In contrast, males who have
post-doctoral training have the highest EQ.
165
For females, the lowest EQ is recorded Males who work in agriculture have
for the ones working in agriculture or in very the most precarious emotional balance – this
large organizations (over 5000 employees). social group is the only one where the
On the opposite side are the women working negative emotions dominate the positive ones
in constructions or in organizations with less (with a score lower than 50) – just like the
than 50 employees. When it comes to the unemployed, who are closely followed by
graduated studies, the paradox occurs for supervisors. The most optimistic are the
females too: the lowest EQ was recorded for entrepreneurs, followed by people who work
graduates of training schools, followed by in services, research-designing-IT or the
graduates of PhDs. The highest EQ level justice system. Males who work in
recorded for females was in the case of grade organizations with 1001-5000 employees also
school graduates and PhD graduates. have a precarious emotional balance, while
Among the active persons, the lowest the most optimistic are the ones who carry an
EQ was seen in employees of both genders, activity in organizations with 11 to 25 and
who hold positions of execution or 501 to 1000 employees.
supervision. The EQ level rises along the Regarding the conducted studies, the
hierarchy all the way up to the top managers. most fragile emotional balance was seen in
The entrepreneurs, both male and female, men who graduated from a PhD, while the
have an average EQ level, but in return ones who completed various training schools
manifest a predominance of positive emotions have an obvious direction towards the
related to their professional activity. positive range of emotions, which they feel in
relation to their work.
b) Emotional balance
Table no. 3 – The factors influencing the emotional balance of female respondents
The factors influencing the emotional balance of female respondents in a manner that is:
Positive: Negative:
Activities in services, research-designing-IT, Activities in agriculture, NGOs, public
education; administration;
Holding positions of top-management Unemployment
Activities in organizations with 1 to 10 or 5000 Activities in organizations with 501 to 1000
employees; employees;
Graduates of high-school studies Graduates of post-doctoral training
In the case of females (Table no. 3), employees have negative emotions about their
regarding the exercised profession, the lowest activity.
level of optimism manifests in women who At the same time, a continuous drop in
work in agriculture, NGOs and public the level of emotional balance is noticed once
administration, as well as in the case of the the level of training increases, from high-
unemployed, while the women who carry an school graduates, who have the highest level
activity in services, research-designing-IT and of optimism and satisfaction, to post-doctoral
education are characterized by a training graduates, who are predisposed at
predominance of positive emotions. In the associating their professional activity to
same category are included the women who negative emotions.
hold a top-management position, also, a factor In both males and females, we can see
that positively influences the emotional a drop in the level of physical and emotional
balance is represented by the number of burn-out caused by professional stress as they
employees in an organization: thus, females hold a higher position in the organization’s
who work in small companies (1-10 hierarchy.
employees) or large companies (over 5000
employees) are inclined to associate their
activity with positive emotions, while women
who work in organizations with 501-5000
166
c) Relaxation/stress employees; the graduates of training schools

are among the most relaxed men, while
As a result of the study (Table no. 4), graduates of doctoral studies are in the
it was concluded that males who work in category with the highest level of stress.
public administration are the most relaxed, In the case of females, the most
and the most stressed are the ones who work relaxed are the ones working in constructions
in free lance; also, the most relaxed men are and the most stressed carry activities in
the entrepreneurs and the most stressed are agriculture, army, police or work as rangers;
the unemployed, the retired and the ones who also, the most relaxed women hold positions
hold positions of execution. in top-management, and the most stressed are
Men feel the best in organizations with the unemployed and the retired, followed by
501 to 1000 employees and are more stressed the ones who hold functions of execution.
in organizations with 1001 to 5000
Table no. 4 – The factors influencing relaxation for male respondents

The factors influencing relaxation for male respondents in a manner that is
Positive: Negative:
Activities carried in the public Activities carried as free lancers;
administration;
Activities as entrepreneur; Unemployment and retirement, as well as holding
functions of execution;
Activities in organizations with 501-1000 Activities in organizations with 1001-5000 employees;
employees;
Graduates of training schools; Graduates of doctoral studies
Women who work in organizations necessary to study both phenomenon and to

with 26 to 50 employees are in the category assess them with the help of intelligence tests.
of relaxed females, while the ones who work Studies have shown that emotional
in organizations with 501 to 1000 employees intelligence impacts a leader’s ability to be
are more stressed; the graduates of post-high- effective (Goleman, 1998). Three of the most
school studies, as well as the graduates of important aspects of emotional intelligence
doctoral studies fit into the relaxed females for a leader’s ability to make effective
category, the most stressed being the decisions are selfawareness, communication
graduates of training schools. and influence, commitment and integrity.
The assessment of emotional
VI. Conclusions intelligence in leadership is complex; the
differences between the manager and the
As Goleman says, emotional leader -as described by several authors-
intelligence is defined as a person’s self- clearly distinguish the artist (leader) from the
awareness, selfconfidence, self-control, technocrat (manager). Evidently, on one hand,
commitment and integrity, and a person’s the competences associated with emotional
ability to communicate, influence, initiate intelligence are clearly identifiable in the
change and accept change [7]. expected traits of leadership.
While the IQ refers to the academic On the other hand, managers who do
intelligence, the learning ability and the not develop their emotional intelligence have
mental, theoretical development, to the difficulty in building good relationships with
building-up of theoretical knowledge and peers, subordinates, superiors and clients
information from various areas., the EQ (Goleman, 1998).
comes as an addition to IQ, because apart Because effective leadership is
from “the mental brain” there is also an identified by those who concentrate on people
“emotional brain”: the balance between and the task at hand in such a way that the
reason and feelings is essential and it’s task is completed and the people remain
motivated and happy [11], it is a sure fact that
167
leadership cannot exists unless the leader Bibliography

possess a high degree of involvement in
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169
TIME FOR EMOTIONAL CHANGE OF PEOPLE AND ORGANISATION
Camelia – Olivia Ilieş, Junior Teacher Assistant

Petru Maior University, Tg-Mures, Romania
cami_ilies@yahoo.com
Abstract: One of the main objectives of change management is to create special beliefs among stakeholders with as
much enthusiasm and energy as possible. Change may have a lot of faces: organizational, technical, operational, etc.
but change exist only when people change effectively the way they think, feel or act. Reconfigure the operational
details, technical designs, etc. can be a challenge; nothing change if people don't actually react to required change.
People are emotional beings so understanding the emotional process people experience during any change effort can
increase effectiveness and decrease stress. To settle the negative effects of changes and obtain his real benefits it is
important to know how create changes succesfully.
Keywords: Manage emotions, change management, resistance to change, crise, transformation, trasition
JEL Classification: M100, M 50

started. In the Webster Dictionary the crisis is
defined as a „turning point”, „the moment
1. Introduction when it must be decided if a relation or a
sequence of actions follows its way or they
This paper want to discover usefull and will be changed or finished”. The Merriam-
apropriate approaches of change management Webster dictionary defines the crisis as „a
regarding his emotional side, combine with state of unstable things or a crucial moment
practical aspects that gives an important value when a decision making is imposed,
for organisations. especially a decision characterised by the
probability of producing some extremely
2. The crisis, transition and undesirable consequences”.
transformation: emotional change In medicine, the term crisis is used to
managing tools describe the moment when a disease moves
towards recovery or worse. So the crisis can
Today the society deals with unprecedented be considered a danger and an opportunity
economic crisis. The economic recession, too. In professional life the effects that a
violent behaviour, destruction of the traumatic event can have on employees are
environment, all these lead to the conclusion the most difficult situations to ameliorate.
that we have estranged from our own being, Data can be restored, computers rebooted,
from the others and the world around us. We equipment replaced, roofs and walls rebuilt -
confront with this situation in our own way, but your people can't recover unless they feel
and the challenges are some of the most safe. Many will experience emotional,
different depending on the circumstances of cognitive, behavioural and even spiritual
our own state, with direct implication to the reactions in response to the stress of critical
communities to which every citizen belongs incidents.
to. The second key item - transition - makes
The crisis, the transition and transformation things work. Even if the new set of structures
are key items which the people and entities, has not been formed, it has not reached the
must learn to administrate this times when destination and it is not known very well
deep overturns shake the families, business which could be this destination, the only
and organisations’ concepts and the societies’ assurance of the transition is that the old state
concepts too. has been abandoned and it has not reached a
The economic crisis (term comes from the point of stabilitity.
Greek word „krisis”, which means The transformation to new conditions
„decision”; from “krinein” – to decide) is a involves the disintegration of the old structure
deviation from the situations and reactions and the regression towards an initially state
with which we have been used until it has which brings us in a direct contact with us
and our resources too, which had been 3. Emotional aspects regarding individual
identified, used and previously recognised to and organisational change management
ourselves.
The journey through crisis, transition and Change Management integrate a set of
transformation to new condition is assimilated tools, processes and techniques for managing
to the change from stiffness to regression and the people side of change, to move a person
reorganisation. or group from a current status to a desired
In their progress the things transform all the future state in order to achieve the specific
time, but they do not always progress. When objectives of a well defined change.
there are significant, tragic changes there Change Management enables individuals
come a lot of challenges: the fear of and groups to participate and support a
unknown, the management of losses, change such that each person and group
vulnerabilities, which can trigger some embraces the future state, and works toward
reactions which prove to be inadequate: the objectives of that change.
attack, flight or stiffness, behaviours which Examples of changes used in change
lead to regression, inertness, the difficulty of management of entities include new
abandoning the past, confusion and conflict. strategies, deployment of new technologies or
In order to progress through change, it is systems, implementation of new processes,
important the development of some qualities mergers and acquisitions, organizational
of flexibility, stability, balance, detachment, restructuring, or changes of compensation and
positive thinking. It is very useful to keep benefit programs. Examples of changes in a
balance when life goes without difficulties, community setting could also include
but to keep balance in a period of crisis, it is environmental and political campaigns, new
imposed that all these qualities should be legislation and regulations, or other changes
developed so much that the balance almost that one or more groups promote for their
„incorporate in our blood”. respective population.
To create and develop the mentality for Research conducted by (LaClair and other,
facing the challenges need a continuous 2002) [3] and by Prosci (independent research
exercise for [1]: company in the fields of change management)
 the disobedience in the crisis, [4] have demonstrated a strong and direct
 the acceptance and capitalization of the correlation between achieving the objectives
crisis and the change it brings; of a change and effectively managing the
 concentration, mental and body relaxation, people side of that change. Prosci’s research
preparation for action; with 426 participants from 59 countries
 transition adjustment, discernment in around the world contributed with data on a
thinking and action; wide range of change management issues,
 the ability to find different answers for showed that a change project had five times
every new situation; the probability of meeting objectives if they
 the wisdom to accept what it can not be implemented “very good” or “excellent”
controlled and to integrate to the given change management practices.
situation; Today’s implementation of change
 calm and confidence when everything management combines both individual
around us seems incomprehensible; change management with organizational
 give up what is exceeded, give up the old change management as approach to manage
successes in order to discover a new source the emotional side of change.
of development in the transformation which Individual change management is the
derives from crisis and transition. management of change from the perspective
 obtaining the power to integrate the rational, of the employees. They are the ones who
logical intelligence with the emotional ultimately must implement the change. The
intelligence. focus here is around the tools and techniques
to help an employee transition through the
change process. The primary concerns are the
171
coaching required to help the organization

individuals understand their role and understand, accept and
the decisions they make in the support the needed
change process. In this arena, business change. The
manager need to provide tools that primary focus is around
employees can use to navigate their change management
way through the change. strategies, communication
Individual change management plans and training
encompasses both the emotional and programs. The involved
rational steps an individual parties include project
experiences following the change team members, human
process. resources and key business
In her book, “On Death and Dying,” leaders that sponsor the change.
Elizabeth Kübler-Ross, (Elizabeth Kübler- Organizational change management
Ross, 1969), [2], describes what is known as provides the knowledge and skills to
the Kübler-Ross model or the “Five Stages of implement a methodology and tools for
Grief”. This original model directed towards managing change throughout an organization
the loss of a loved one, also relates to change Organizational change management is
management, specifically the emotions felt by normally implemented as a well structured
those affected by change. These stages, in process that begins with understanding the
order, are: denial, anger, bargaining, change and the organization or groups
depression and acceptance. impacted by the change. Organizational
The model is perhaps a way of explaining change management activities are then
how and why 'time heals', or how 'life goes implemented to move the organization from
on'. And as with any aspect of our own or the current state to the desired future state.
other people's emotions, when we know more Change management requires competencies
about what is happening, then dealing with it or skills at many organisational levels. The
is usually made a little easier. “roles” in the organization that must be
Many derivative models of these emotional defined include executives and senior
states of change have been developed by later managers (as sponsors of change), project
practitioners for use in the change team members (as change management
management field. practitioners), managers and supervisors (as
The ADKAR model [7], based on research coaches to their employees during change
completed by Prosci with more than 700 transitions), and project support groups
organizations around the Globe, describes the including human resource and training (to
elements of change that an individual must build competencies and structure into the
achieve in order to successfully move from a organization).
current state to a desired future state in the Change management as a formal practice
organisation. and is regularly implemented by entities and
Elements of the ADKAR model are presented government agencies to engage employees in
in figure no. 1. the process of change. Change management is
Opposite to individual change management an evolving field of study that continues to
tools designed for “one-on-one” interactions, improve on the tools, processes and
organizational change management tools are techniques for managing the people side of
“one-to-many.” change.
Organizational change management is
the management of change from the 4. Leading the emotional side of change
perspective of a manager or project team. It is
the perspective of “business leadership” from During a crisis, people tend to be anxious,
the “top” looking down into the organization. confused, and highly suggestible. A good
The focus is around broad change leadership and a clear communication can
management practices and skills that will help help people. It's important to direct people
172
(staff, customers, vendors, community intellectual and emotional challenges of

members, or anyone else affected by the change by transforming the anxiety of change
crisis), to provide guidance on how they into productive energy. It is this capability to
should conduct themselves. It's important to harness and direct anxiety - to create just
inform them about what we know and what enough anxiety - that enables these successful
we don’t know yet but is possible to happen. leaders to master the emotional side of
People in crisis need "emotional change.
leadership". Rationality doesn't convince The just enough anxiety is the right level
people but emotional resonance does. Great that drives people forward without causing
leaders move people, manage expectations, them to resist, give up of try to control what
touch the soul and inspire peoples in their happens. It unleashes creativity and enables
actions conveying that, as much as possible, executives and managers to stretch beyond
the very best is being done. This kind of current reality into their desired future,
messages can help people maintain closing the gaps that change creates - gaps
perspective and tolerate uncertainty better and between who they are and who they wish to
longer. [6] be and between where their organizations are
Navigating organizational change is like and where they are headed. The concept of
walking a high-wire and balancing with too just enough anxiety seems to be the right tool
much anxiety on one side and not enough for leading the emotional side of change.
anxiety on the other. The idea of change has To lead and live with just enough anxiety,
outgrown the ability to reinvent ourselves. leaders at all levels must reframe how they
Employees have little time to respond to one look at uncertainty and change, what they
change before the next wave crashes upon believe about themselves, how they
them. This fact puts organizations in a understand and use anxiety, and how they live
permanent state of transformation. Life, and lead in this paradox.
public and private sector have become tangled There are some aspects that enable great
webs of possible pathways through an leaders and their organizations to lead both
unfamiliar landscape. the cognitive and the emotional side of
All organisations need to find new ways of change.
living and leading people in a world of Leaders need to teach people to rethink
continuous change. Leaders at all levels must the way they perceive change and
learn to feel at home in uncharted territory uncertainty, as facts of life. Those who
and to have good results in an environment consider stability as a sign of success or those
full of ambiguity and anxiety. These aspects who want things stay the same are certain to
represent a huge challenge in the modern resist these facts. To them, threats to the
word. status quo must be fought and vanquished. By
Many authors assert that there are two being attached to the ways things are, they
equally important aspects of leading change speculate their ability to live with uncertainty.
in the 21st century. The first is cognitive, They end up by denying reality and forfeiting
which involves clarifying the vision, strategy their capacity to handle change; will try to
and goals of the entity to help people focus on avoid the discomfort; will try to avoid the
what's important. The second is emotional, criticism; will try to avoid losing what they
facing the unknown with courage and have. It is this attachment to stability that
confidence, inspiring and challenging people cause managers the growth or suppress of
to do their best and mobilizing human energy. their level of anxiety when circumstances
The emotional change, every entity want and start to change. Only by understanding and
need to manage. Those that don't, will learning to allow themselves to feel their
continue to lose to the competition as they discomfort, insecurity, confusion, they can
attempt to deal with change after change. realize the real importance of change.
Great change leaders are adept leading both To build an appropriate emotional response
the cognitive and emotional sides of change of organization to change, managers and
and they must have the ability to manage the leaders must be detach from any particular
173
point of view and must accept new innovative way. Their lives become boring, mechanical.
ideas, some will contradict or expand what But people who hold just enough anxiety are
they already think they know. This will help able to use that anxiety to face conquer
them reframe how they and the people they change, uncertainty and perform at their best.
lead look at change and uncertainty, from a Successful leaders know levels of anxiety
crisis to be avoided to an opportunity to learn not only for themselves, but for the people in
and grow. their organizations. Finding the right level of
Managers and leaders must teach their anxiety is more an art than a science. "Just
people to rethink what they believe about enough" can differ from person to person and
themselves when face the change; many from a company to another, and it will change
executives and managers bring with them with time and circumstances.
self-defeating beliefs; they believe they have Leaders must teach their people how to
to be right all the time, resolving everything live and lead in paradox. The world is too
on their own or achieve the results; they complex for simple solutions with one
belive they have to avoid conflict to be dimension. Private leaders, especially those
admired or accepted, or that they will be seen who lead with just enough anxiety, are
as incompetent if they can't answer every veterans of living and leading in paradox.
question or if they make a mistake. Others There are three key paradoxes that enable
believe their anxiety is a sign of weakness, top leaders to create just enough anxiety in
rendering them powerless to act in themselves and others: realistic optimism,
uncertainty. They determine in this way what constructive impatience and confident
makes people anxious and the amount of humility.
anxiety they feel, this lead to individual "A realistic optimism" – leader help people
failures and the inability of organizations to face the real situation while painting the
navigate in change. picture of the future. It involves living "here"
Helping people uncover self-defeating, and "there" at the same time. When leaders do
deep-seated beliefs is at the heart of leading this, they heighten their organizations' focus,
the emotional side of change. Self-affirming instil a sense of common purpose and create a
beliefs, such as: it is okay to risk being clear mental image of success.
wrong; it is okay to learn from mistakes and "A constructive impatience" - build a
move on, it is okay to speak up, even when positive and supportive environment while
others disagree, help leaders and peoples detecting in people a drive for results,
understanding the emotional side of change. involves learning to be comfortable with
This will enable all to reframe what they discomfort and balancing a sense of urgency
believe about themselves and help their with compassion and patience. Leaders foster
mindset change from self-defeating to self- people's hunger to get ahead and challenge
affirming. them to stretch their capabilities, while
Leaders must teach people how to providing them with what they need to
understand and use anxiety in a succeed.
performant way. For our primitive ancestors, "A confident humility"- leaders lead with
anxiety was a lifesaver. It signaled the need to power and generosity at the same time, they
fight or flee. But today's challenges are too want to build trust, to develop productive
numerous to consider all anxiety as a relationships and to create high-performing
precursor to danger, something to be avoided teams.
or overcome. There are three basic levels of All the four reframes enable great leaders
anxiety: too much, too little and just enough. and their organizations to lead both the
People who get hijacked by fear succumb to cognitive and the emotional side of change.
too much anxiety and are unable to perform It is natural for people respond to the
well. Their lives feel out of control. People change with emotions of fear and resistance.
who avoid or deny fear live with too little Resistance to change can manifest not only in
anxiety and are far too complacent to take employees reactions and behaviour, but also
advantage of opportunities that come their in reaction s of managers themselves. Dealing
174
with change and fear on a personal level,

manager need to be aware to their own modes Change management as a formal practice is
of resistance and recognise that they regularly implemented by corporations and
themselves might rely on habitual activities government and public agencies to engage
and responses in order to keep their balance employees in the process of change. In the
and act as if nothing has happened. Some new context of evolution of the business
managers might exhibit resistance by environment, of the society, the organisations
suppressing dissent and becoming isolated or must change their focus from processes
ineffective. towards customers, to rethink their business
Understanding resistance to change by models and to pay due attention to those
individuals is an essential element in change people who daily support the organisations’
process. People usually tend to resist any new success through a constant effort. The
way of acting and thinking because it causes performance remains an active issue, being
them disconfort. An individual resist to more relevant for the difficult period that we
change for four reasons: uncertainty, concern pass.
over personal loss, belief that the change is Confronting the challenge of change
not in their own best interest, belief that the requires more than simply managing
change is not in the best interes of the processes and functions, it requires a focus on
organisation [5]. and commitment to the human side of change
For example, asking a people to handle and his effect on the most valuable resource:
work differently or take on different its people
responsibilities, might cause them think that
the way they have been working is some how Bibliography
„wrong” and deserving of blame.
Understanding and being supportive of each [1] Corporate Executive Board, (1999) Corporate
other during times of change ease the Strategy Board, Change Management: "Red Flags"
and Lessons Learned, Washington, p. 12;
transition into new ways of doing business. [2] Kubler-Ross, Elisabeth (1969), On Death and
Communication is perhaps the most Dying. Touchstone, p. 367;
important tool counteract to this natural [3] LaClair, Jennifer A., and Ravi P. Rao, (2002)
resistance and fear of change. Helping Employees Embrace Change”, The
Meeting the challenge of change is not just McKinsey Quarterly, No. 4, p.7-10;
[4] Prosci Research (2007), Best Practices in Change
a concern of supervisors and managers. All Management, p.45.
employees can utilise effective [5] Raj Aparna (2000), The Human Side of Change,
communication to provide understanding and '8M', Journal of Jagan Institute of Management
compassionate support for the human side of Studies, New Delhi, Vol. 5, No.2 April- June
change. 2000;
[6] http://www.allbusiness.com/human-
Change is the only constant in the change resources/employee-development-
management process. The key of success is leadership/10978-1.html
developing leadership that is sensitive to the [7] http://www.change-management.com/tutorial-
dynamism of the marketplace and scalling to adkar-overview.html;
meet its challenges. Jeannie Daniel Duck, in [8] http://hbr.org/1993/11/managing-change/ar/1.
her article „Managing change: The Art of
Balancing” [8] opines that: “the real
contribution of leadership in a time of change,
lies in managing the dynamics”. The
fundamental job of leadership now is to deal
with dynamics of change, the confluence and
congruence of the forces the change
unleashes, so that the company is better
prepare to complete.
5. Conclusions
175
METHODS OF MEASURING INTELLECTUAL CAPITAL

Christian University "Dimitrie Cantemir", Bucharest, Faculty of Finance, Banking and Accounting
cilezbujor@yahoo.com
Abstract: This article is a short presentation of the most popular models and the most used methods for evaluating
intellectual capital, accompanied by a comparative analysis of their main benefits and drawbacks. Many models have
similar construction and measures, but different names. Knowledge management and measurement models may serve
specific purposes of different organizations in different ways. They can use the measurement models as analysis and
diagnostic tests for assessing the progress or the hierarchy of investment projects or for obtaining facilities (political
support) for a particular program. Indicators are trying to use contextual nuances to enrich the analysis of data that
can be the basis for elaborating appropriate development policies. Within these limits, we can mention the contextual
influences which, although facilitating the expression of corrective policies, they can hinder comparisons between
different results.
Keywords: knowledge-based economy, intangible assets, intellectual capital, evaluation, value of organisation
JEL Classification: M41 – Accounting

and other assets that support the productivity
Introduction of the employees. Structural capital consists
The transition of most developed and of the capital represented by customers and
emerging nations towards knowledge-based enterprise organizational capital, the latter
economies has led to the awareness of the being composed of the innovation capital
importance of intellectual capital for the (intellectual property, other intellectual
economic growth. While information systems assets) that the company owns and the capital
designers are trying to capitalize employees' invested in their production processes.
knowledge and expertise in technologies Nevertheless, the value of these forms of
reflected in databases and logic programs, capital is proving to be difficult to estimate, a
economists are trying to find the most series of measurement indicators being
appropriate methods for measuring and developed in this respect.
evaluating knowledge, which is the essential
part of intellectual capital. Intangible Assets Monitor:
Although the specialized literature Sveiby proposes a monitoring system
mentions differently the terms of intellectual for intangible assets consisting of a table in
capital and intangible assets, they both refer which indicators are gathered to estimate the
to all the knowledge, skills and competence of value of intangible assets. These indicators
an enterprise’s employees, whose vary depending on the strategy adopted by the
performance generates profits for it. enterprise and their grouping reflects how the
The management of companies has value for shareholders is generated: growth of
directed all efforts towards the creation and intangible assets, their renewal rate, their use
development of intangible assets to support efficiency and stability of their operation.
the innovation process by: research &  Level of education = quantified by a
development expenditures, resource score given based on the study level of the
allocation for employees' training, etc. As a organization's employees;
result, the market value of the enterprise is  Company image enhanced by
becoming more and more influenced by the relationships with customers = share of
intangible assets that it holds. Human capital income from contracts with various customers
refers both to the knowledge, skills, abilities having the effect of improving the company’s
of the employees of an enterprise, but also to image;
the culture, set of values and principles  Organizational structure improvement
developed therein. Regarding capital from relationships with customers = share of
structure, it includes all databases, software, income from contracts that improve the
organizational structures, trademarks, patents
organizational structure of the company and not been capitalized in the balance sheet. The
involve the development of R & D programs; difference between market value and book
 Competence gained from relationships value is influenced by the choice of the
with customers = Share of income from depreciation method (affecting comparisons
projects undertaken for various clients that between companies), and by changes in
have led to an increase of the company accounting rules (affecting comparisons over
employee competence; time within the same company). The adoption
 Professionals share = number of of the ratio between market value and book
professionals (managerial staff and employees value as an indicator for evaluating
entering into relationships with the intellectual capital has the disadvantage that
customers) in total company personnel; the market value is being determined and
 Customer satisfaction index - revised constantly (exchange rate), while the
quantifies customer satisfaction on a scale book value is updated only once a year,
from 1 to 6 (highest satisfaction); through the balance sheet. There can be made
 Professionals turnover rate = number a comparison between the indicator calculated
of professionals who have left compared to as the ratio between market value and book
the number of professionals at the beginning value of an enterprise and that of similar
of the year; competing companies, or with the average of
 Frequency of renewed contracts = the industry field, or with the indicators
share of income from customers that the calculated in previous years for the same
company has worked with in the previous company.
year; Tobin's "Q" indicator compares the
 Administrative staff turnover = market value of an enterprise with the cost of
number of administrative staff who left the replacing its assets. The cost of replacing
company compared to the number at the fixed assets can be calculated as the value of
beginning of the year; fixed assets (including depreciation) adjusted
to the inflation. This will remove the effect of
 Rookie ratio = number of employees
adopting different depreciation methods.
who have less than 2 years of seniority.
The "Q" indicator is relevant when
 Seniority = number of years employed
similar companies are compared over a period
in the same organization.
of several years. This indicator is appropriate
The intangible assets monitoring system
when comparing the value of intangible
proposed by Sveiby was applied by several
elements belonging to enterprises in the same
Swedish companies, their help being reflected
business sector, working on the same market
on the impact that the strategy adopted by the
and having similar fixed assets.
company has on customer satisfaction, that is,
When both the "Q" indicator and the
their loyalty, on the competence acquired by
ratio between market value and book value
employees and their satisfaction.
decrease over time, it means that the
There are experts in the field who, following
enterprise's intangible assets are depreciating
investigations, are supporting the idea that the
and this may be a signal for the investors that
value of intellectual capital would be the
a certain company is not managing adequately
difference between the market value of a
its intellectual capital. In this case, they may
company (market capitalization) and its book
change the investment portfolio, looking for
value (tangible assets - liabilities). Research
companies having an increasing or steady "Q"
has showed that the biggest difference
indicator.
between the two values occurs in the case of
The model resembles the one based on
high-tech industries and those intensively
market value and book value, except that the
based on knowledge, industries that require
book value is replaced with the cost of
substantial investments in intangible assets.
tangible assets. It is considered that a
The difference between market value and
company having a Q indicator greater than 1
book value is indeed largely based on the
and greater than the one of a competing
intangible elements of the enterprise that have
company will achieve a higher return, this
177
advantage being attributed to its intellectual model shown is the transposition of

capital. qualitative results of the questionnaire into the
The two models presented above monetary value of assets.
define intellectual capital as the difference In 1992, the Harvard Business Review
between the market capitalization of the magazine published an article introducing the
company and the capital in the form of shares Balanced Scorecard model by which
of shareholders. They are useful to illustrate companies can assess four areas: finance
the financial value of intellectual capital and (profitability, cash flow), customer oriented
to compare companies operating in the same strategies (customer loyalty development,
business area. However, they do not contain customer degree of satisfaction, market
information about the components that share), internal process initiatives (cycle of
contribute to intellectual capital. Because of production, productivity, quality index) as
the exclusive expression in monetary units, well as learning and growth activities
such models based on market capitalization (qualification level, innovation, application of
only provide a partial perspective on research results, the share of new products /
knowledge-based assets. services). This model seeks to balance the
Model based on components of traditional accounting approach with
intellectual capital: indicators that refer to innovation, learning
The Technology Broker model was and creating value in financial and non-
proposed by Annie Brooking in 1996 and it financial terms. Thus, this model is
establishes the value of intellectual capital in implementing an organization's mission and
monetary units, defined by the author as a strategy into a set of performance indicators,
mix of four components: human-centered becoming one of the most popular tools for
assets, market assets, infrastructure assets and the development of indicators for knowledge
intellectual property assets. Human-centered measurement and management. It was applied
assets consist of collective expertise, in hundreds of organizations from different
creativity, ability to solve novel problems, economic areas in developed countries.
leadership. Market assets are represented by However, there are critics who consider this
the intangibles such as trademarks, contracts, model too rigid and its categories too limited.
licensing agreements or franchise contracts. The Intellectual Capital Index (IC-
Infrastructure assets include Index) proposes the replacement of individual
technologies, methodologies and processes indicators by an index and attempts to
that enable the organization to function. correlate the changes in intellectual capital
Intellectual property refers to the legal with changes in the market value of the firm.
mechanism for protecting the assets of the The index is based on indicators that relate to:
company, trade secrets, patents, copyrights, human capital, innovative capital,
etc. The Technology Broker model starts with infrastructure capital, relational capital
an analysis and diagnostic test based on 20 (customers). The value of the IC-index
questions. The lower the number of positive depends on the subjective assessment of the
answers to this test, the higher the need to mentioned indicators and on their share.
strengthen the intellectual capital of that However, this model offers the managers the
company. In this regard, an intellectual capital opportunity of understanding the effects of a
audit is performed, including 178 questions certain strategy on its intellectual capital.
on its four components. Once an organization As a conclusion, one may note that
completes the audit, the model proposes three the first research in the measurement and
methods to calculate the monetary value of evaluation of knowledge generating assets
intellectual capital: cost approach, market and of intellectual capital have focused on
value approach and income approach. definitions and classifications. Many models
It is considered that there are certain have similar construction and measures, but
similarities between Technology Broker audit different names. Knowledge management and
questions and the indicators of Skandia measurement models may serve specific
model. However, the major difficulty for the purposes of different organizations in
178
different ways. They can use the References:

measurement models as analysis and
diagnostic tests for assessing the progress or [1]. Brooking, A. (1996) Intellectual Capital; Core
the hierarchy of investment projects or for Assets for Third Millenium Enterprise. London,
Thomson Business Press
obtaining facilities (political support) for a [2]. Edvinsson, L. & Malone, M.S. (1997) Developing
particular program. a Model for Managing Intellectual Capital.In
Advantages and limits of score based European Management Journal 14, no.4, pg. 356-
models: 364
Score based models do not result in [3]. Kaplan, R.S. & Norton, D.P. (2001) The Strategy
–focused Organization ( How Balanced
monetary units estimates of intangible assets; Scorecard companies thrive in the new business
however, they may be used to develop environment), Harvard Business School Press
measurement models of knowledge based [4]. Lepadatu Ghe. – Standarde, teorii si sisteme de
assets on national level, for the establishment conducere a contabilitatii pe plan mondial, Ed.
of socio-economic and human development Pro Universitaria, Bucuresti, 2009;
[5]. Malhotra, Y. (2000) Knowledge Assets in the
strategies. Global Economy; Assessment of National
Among the benefits brought by these Intellectual Capital in Journal of Global
models, it can be stated that they establish Information Management 8, no. 3, pg. 5-15
indicators compiled based on existing [6]. Ross, J., Roos, G., Edvinsson, L. Dragonetti, N.C.
resources, processes and outcomes. They can (1997) Intellectual Capital: Navigating in the
New Business Landscape, New York, Macmillan
help detect and correct errors between inputs Business
and processes, on one hand, and outputs and [7]. Sveiby, K.E. (1997) The New Organizational
results, on the other. Indicators are trying to Wealth; Managing and Measuring Knowledge-
use contextual nuances to enrich the analysis based Assets, San Francisco, Berrett-Koehler
of data that can be the basis for elaborating [8]. International Financial Report Standards
(IFRSSTM) including International Accounting
appropriate development policies. Within Standards (IASSTM) and their interpretations on
these limits, we can mention the contextual January 1, 2007, CECCAR, Bucharest, 2007;
influences which, although facilitating the
expression of corrective policies, they can
hinder comparisons between different results.
179
UNDERSTANDING RISK MANAGEMENT IN SMALL 7 STEPS
Valentin Petru MĂZĂREANU, PhD.

The Faculty of Economics and Business Administration
“Alexandru Ioan Cuza” University of Iasi
Iasi, Romania
vali.mazareanu@feaa.uaic.ro
Abstract: Risk management means making steps in order to identify those risks with a highly probability of causing
problems to a project, to analyze the probability of loss and the magnitude of loss for each risk and developing
composed risks, to classify the risk points identified according to the composed risks they belong to.
Risk management problem is quite complex. When such a process is triggered, it must consider several issues in
parallel. In this article we detect seven rules (principles) that a risk management department should take into account
when deciding to implement a enterprise risk management.
Keywords: risk, model, approach, principle
JEL CLASSIFICATION: D81
Introduction - risk analysis in the software

development cycle (when appropriate)
Risk is an extremely complex phenomenon, - identifying the appropriate timing for
and risk management clearly requires risk assessment;
combining the rigors of science with art - seeing the boundary between real fact,
challenges. Science, because risk management possible and impossible events
should refer to knowledge, the method and (related to risk);
methodology, but also art, because someone - seeing the limit between threat and
must feel when to get rid of a certain opportunity (related to risk);
methodology and borrowing knowledge from - seeing risk as a probability event.
other areas of knowledge.
We believe that our approach helps in How risk management works? (analyzing
developing a link between art and science of the relationship between asset -
risk management. This link grows through vulnerability – risk)
understanding a set of rules, principles,
which, in our opinion, are: First, we can talk about the stake at risk and
- how risk management works? how important vulnerabilities are in the
(analyzing the relationship between disaster scenarios taken into account, the
asset - vulnerability – risk); result being a way to reduce the resulting
- analyzing the internal and external risks (Fig. nr.1).
factors;
Fig. nr.1 Risk Management Process
180
This is an approach proposed also by CLUSIF may come from the possibility that a
- Club de L'Information Security Francais in significant threat to be overlooked or accepted
the Mehari methodology (1). by negligence. Worse, it is possible that a
Stake (asset) significant threat to be intentionally
The stake is an issue that varies from entity to disregarded.
entity. This should be quantified and
classified individually on each business Analyzing the internal and external factors
separately. The stakes should be differentiated
at by their availability, integrity and Second, we must understand that the
confidentiality. The impact of the probability of an event depends on a series of
consequences could be financial or legal or external factors as well as on internal factors
reputational, but all these issues must be of the entity (business/process/project) for
examined in relation to the importance for the which the risk assessment is made. It is
survival of the organization. essential to know and control as many of
Vulnerabilities these factors as possible.
According to ISO 27001 there is the The internal factors include historical data
possibility to create a collection (qualitative!) from within the entity, collected in time, as it
of audit questions as a consequence of good is necessary to keep a record of all processed
practice. But which one best fits a particular data, no matter if for the moment it is thought
business major stakes in a company? Which that the data will not be useful in the future.
one will decrease the potential disaster? One way to achieve this without affecting the
Which one will reduce the consequence operational environment is appealing to data
(impact)? And how could be assessed the warehousing technology and decision support
correlation between a specific question and a systems. Without going into technical details
certain effect? Is it possible to group the we mention only that the data warehouse is a
questions in order to ensure risk reduction? way of storing data and creating information,
Such a group might bear the name of: security a topic-oriented database, integrated,
measure. nonvolatile, other (sensitive) over time, which
But this would call for new measures to support management decisions. And decision
quantify the contribution of each security support system is in a simple definition, the
measure within a company at reducing the layer of data presentation from the data
potential (probability, sounds too warehouse. In fact it is much more than a
mathematical) or the impact (consequence) of presentation layer: the decision support
a disastrous situation. system extending itself from extracting data
Risks from data warehouse to present these data to
At this level a new question arises: how to the decision maker, including sophisticated
implement a disaster scenario to such reporting tools, tools, OLAP (Online
situations? The simplest way would be to Analytical Processing) and Data Mining.
have a list of scenarios and some And when we talk about external factors, we
mathematical formulas established between are talking about those factors undergoing
the asset, the vulnerabilities and the risks, STEEP analyses (Social, Technological,
given by the security measures laid down in Economic, Environmental, Political), factors
advance. that cannot be controlled but that could be
Also, how to build a security protection to anticipated. Here are also included the events
cover the most important scenarios in a very from the company’s activity, such as natural
efficient manner? This is achieved by setting disasters or terrorist attacks, attacks against
the weights of the most important safeguards informational systems (informational viruses,
scenarios. spam, DoS type attacks etc.).
But as long as there is not a classic pattern of In order to evaluate these factors one may
threats in each area and also immediately choose to study the statistical data available
available statistics, this task may require a from various sources including the FBI (eg
considerable research effort. The difficulty CSI FBI Survey) or various international
181
information security experts centers such as in this case the accent falls more on the
CERT (Computer Emergency Response process of development and ensuring the
Team), the Software Engineering Institute or integrity of the process and less on the final
CERIS (Centre of Expertise and Response to product. Although at first glance seem
Security Incidents). similar, there should be no confusion between
But this data gives only a vague estimate of risk management and quality management
the probability of occurrence and impact (Roy, 2004): the quality assurance is a
generated by such an occurrence. Such an process that will minimize the chances of the
approach is justified such as "always be project to deviate from a set of rules
prepared for the worst." originally established and risk management
deals with the identification of components
Risk analysis in the software development that could go wrong and their impact on
cycle project analysis.
Third, if we come closer to the electronic Identifying the appropriate timing for risk
business environment and the fact that one of assessment
the elements of this environment is the
informational system, we must not ignore the Fourth, the moment suitable to launch a risk
software risk, which represents the assessment process must be identified. We
combination between the probabilities of thus differentiate between a corrective action
occurrence and the loss caused by an and a preventive action. Risk assessment is a
unwanted result which affects the project, the preventive action, so it is necessary to take
process or the software product. place before the unfortunate event (Fig. nr. 2).
Each software system is unique with its own An example of a corrective action plan is the
set of risks. There are many software risks but disaster recovery, a component of business
fewer consequences that we want to avoid. continuity plan (Obs. at this level the opinions
Perhaps because of this software risk is often are divided; some authors take business
discussed in terms of potential cost, timing continuity plan as part of the risk management
and technical consequences. plan, others refer to this plan as an
In software development business the risk independent entity).
management has a different behavior; because
Fig. nr. 2 The Appropriate Timing For Risk Assessment
Seeing the boundary between real fact, can be but is not. The main characteristic of
possible and impossible events the possible is defined through relation to the
human being. This characteristic is called
Fifth, it also takes an approach on the border probability. It gives the chance of a scientific
of philosophy and mathematics (Măzăreanu, approach to a border domain between real and
2010). That is: we have three domains the impossible. The probability reported to man
real, the possible, the impossible (Fig. nr. 3). has two manifestations: chance and risk.
The problem of risk management is in the Chance is favorable to man, risk is
realm of the possible. The possible is what unfavorable.
182
Scientifically, the approach of this matter can approach the matter as a risk of something
only be a calculation of the probability of an occurring, but only as probability.
event or of its passing from the possible to the As a result a formula to determine the
real. So we could assume that it is useless to probability for an unfortunate event to occur
is necessary.
Fig. no. 3 The Boundary Between Real Fact, Possible And Impossible Events
Seeing the limit between threat and able to affect the project objectives (in terms
opportunity of human, material, financial, technical or in
terms of scheduling) why to look at this event
This approach opens a new topic. Given that only its catastrophic side? (Fig. nr. 4)
risk is defined as a future and uncertain event,
Fig. no. 4 Understanding the new approach
As long as we relate the risk to uncertainty Under these conditions the generally risk
and to impact on the objectives, as well this approach need to be changed (Fig. nr. 5).
event could be considered an opportunity.
183
Fig. no. 5 The New Approach
If on the threat side the approach was on Conclusions

talking about strategies to avoid, reduce,
accept (active or passive) and transfer the It is clear that the risk varies from situation to
risks in order to minimize the effects, in the situation, whether speaking of an activity,
new model we write about it is about project, or the entire business process.
exploiting opportunity, accepting, distributing Consequently, the risk response plan differs.
information about benefits or about strategies It is clear why the risk management and the
to ensure that the event will take place, all in risk manager are strictly required for a
order to maximize the chance of occurrence successful activity in the business and the
of the event. organizational structures especially in the
organizations that are lead through projects
Seeing risk as a probability event management.
If the management level decides that the risk
It should be understood that risk is a management will be run by complying with a
probabilistic event: it is possible to occur, it is standard or by adjustment and adaptation to
possible that it may not appear. Moreover, it standards, methods, methodologies and laws
is known that human ability to estimate the (this is another debate about which approach
likelihood of an event is quite poor and take a is more appropriate), in this paper the
number of factors, including (Leach, 2000): emphasis is on the risk manager (the risk
- mathematical factors (eg. failure to management team). Because if the manager
understand how the probabilities may fails to understand the risk factors listed
combine, inability to work with above, the whole process of risk management,
numbers of greater value); whether standardized or adapted, is subject to
- errors of representation; failure.
- error of judgment (eg. The
dependency on a first decision, the Note
tendency to trust a first impression, the [1] The Mehari methodology may be found on
tendency to not deviate too much from CLUSIF website
(https://www.clusif.asso.fr/fr/clusi/). The
a first impression). Romanian translation of the Mehari methodology
For this reason, there are optimistic tends to may be found on http://www.managementul-
not see the risks involved in a project or that riscurilor.ro, a Romanian website dedicated to risk
these risks would not occur. Such attitudes management.
can lead to big problems if the risk
materializes, and risks in large projects are
inevitable.
184
Bibliography [3]. Roy, G.G., A Risk Management Framework for

Software Engineering Practice, Proceeding of the
[1]. Leach, L.P., Critical Chain Project Management, 2004 Australian Software Engineering
Ed. Artech House, Boston, 2000 Conference (ASWEC’04), IEEE Computer
[2]. Măzăreanu, P.V., Economia Digitală şi Society, 2004,
Managementul Riscurilor, Ed. Tehnopress, Iaşi,
2010
Acknowledgements
The results presents in this paper were obtained in the framework of the postdoctoral school
programme financed by the “Dezvoltarea capacităț ii de inovare ș i creș terea impactului
cercetării prin programe postdoctorale POSDRU/89/1.5/S/49944” project
185
MODELS OF ENTREPRENEURSHIP IN THE GLOBALIZATION ERA
Constantin Sasu, Professor PhD

Universitatea „Al.I.Cuza” Iaşi, E-mail: csasu@uaic.ro
Luciana Sasu, PhD student
Universitatea „Al.I.Cuza” Iaşi, E-mail: lil_lussiana@yahoo.com
Abstract: Because of its many virtues - creativity, innovation, initiative, flexibility and especially job creation -
entrepreneurship has become a global business philosophy. Despite this general trend, entrepreneurship is not a
homogeneous phenomenon. It is strongly influenced by institutional systems that characterize the economy of different
regions. Of these, we believe that three are essential: government, market, and social institutions. They form a socio-
political framework that affects business development. In light of these factors, we believe that there are four models of
entrepreneurship: liberal entrepreneurship, liberal social entrepreneurship, collective entrepreneurship and informal
entrepreneurship. The liberal entrepreneurship is based on free market mechanism. It is characteristic, essentially,
North America. Government has a minimal intervention in entrepreneurial activity. The liberal social entrepreneurship
involves government regulation of business in the market economy. This type of liberalism may be called a tempered
liberalism. This model is specific entrepreneurial countries in Europe. The third model of entrepreneurship is collective
entrepreneurship. It is opposed to liberal entrepreneurship. It is based on trust and a strong state. Market is an effective
mechanism for creating economic value. Social institutions are regulated by central coordination mechanisms.
Collective entrepreneurship is specific Far Eastern countries like Japan or Korea. Finally, there is an informal
entrepreneurship, specific to the informal economy. In a market with few legal regulations, this model of
entrepreneurship has a large tolerance for uncertainty. Countries where there is such type of entrepreneurship are the
Latin-Mediterranean countries, ex-socialist countries, and Asia.
Keywords: entrepreneurship, globalization, government, market, social institutions
JEL Classifiaction: M20

judgment requirement. To Mill, the
1. Introduction entrepreneur is the fourth factor of production
after land, labor and capital (Mill, 1848).
Entrepreneurial concept was first introduced Marshall introduces the importance of
to economics by Richard Cantillon, French innovations. According to Marshall, the
economist, who associated risk taking in entrepreneur’s task is the supply of
economy with entrepreneur. As Cantillon commodities and at the same time the
describes it, entrepreneurs buy at a certain provision of innovations and progress. Within
price to sell again at an uncertain price, with the firm, the entrepreneur bears all the
the difference being their profit or responsibility and exercises all control. He or
loss. Entrepreneurs take risks. The she directs production, undertakes business
entrepreneur should be alert and forward- risks, coordinates capital and labor, and is
looking (Cantillon, 1755). He believes that both manager and employer. The entrepreneur
entrepreneur is the leading figure in the continuously seeks opportunities
economy. J.B. Say is the first who introduces (innovations) to minimize costs for a given
the managerial role for the entrepreneur. result (Marshal, 1964). Over time, the
According to Say, the entrepreneur plays a entrepreneur has had different names:
central coordinating role both in production merchant, adventurer, land speculator,
and distribution. Also within the firm, he or capitalist, manager (Sasu, 2003). A more
she is the coordinator, the leader and refined concept is that of J. Schumpeter, who
manager. The successful entrepreneur needs a argued that the entrepreneur is the agent of
rare combination of qualities and experiences economic change made only as a result of
(Say, 2001). John Stuart Mill describes the innovation. „Person who innovates, which
entrepreneur as someone who assumes not carries out new combinations we call him or
only the risk of a business venture (as a her entrepreneur” (Schumpeter, 1934).
capitalist) but also the management of the Making a summary of the four types of
business venture. It is this addition of a entrepreneur, Schumpeter believes that he or
management component that builds on Say’s she must be able to achieve the following new
combinations: introducing new methods of understanding with other entrepreneurs to

production; capture a new market segment, establish market entry barriers (Bain, 1956).
particularly an export market in a new Restrictive conditions can help the
territory - essential in the process of entrepreneurs to enhance their market
integration and globalization; the use of new positions and to prevent the emergence of
sources of raw materials; a new enterprise new competitors. In this process, the role of
organization. entrepreneurs is not just to manage their own
In contrast to Schumpeter’s concept, Hayek affairs in relation to those of competitors but
(Hayek, 1937) and Kirzner (Kirzner, 1973) also to prevent strategic market entry of new
highlights the role of entrepreneurs in competitors. Prevention of these entries can
acquiring and processing information. be made artificially by political barriers
Entrepreneur ability to seize opportunities and (lobbying and government influence).
willingness to exploit them makes him or her Political barriers - tariff barriers licenses,
the main actor on the market. Thus, the two grants for escalating costs - can lead to lower
authors consider that the entrepreneur is not internal pressure on entrepreneurs, decreased
necessarily a source of change, but a person efficiency due to reduced competition and
who reacts to change. The entrepreneur is a encourage entrepreneurs to make
decision maker, but his or her decision is not arrangements between lobbying for the
always to innovate. This concept stresses the establishment of entry barriers. Indian
role of entrepreneurs in the acquisition / industry illustrates this situation (Dhar, 2003).
processing information as the person who In the absence of political barriers, the
reacts to change can be explained in part competitive threat is imminent and real,
changing the role of entrepreneur in the where competition is encouraged, potential
context of economic integration and competition can be a serious challenge for
globalization. inefficient firms in lethargy. This form of
Another conceptual dimension relates to the market structure has been called „competitive
nature and size of the business activity of market” (Baumol, 1982).
entrepreneurs. Entrepreneur compete with Competitive markets are those in which exist
other competitors on the market. Competition pressures from potential competitors on
structure and entrepreneur skills to act on the behavior of existing businesses. Under these
market are key variables that distinguish conditions, the global market, which has
entrepreneurs. As Adam Smith remarked competitive features, needs to reconsiderate
(Smith, 1776), market extension limits the existing entrepreneurial models in the
specialization and hence the profit of world.
entrepreneur. Competition structure varies
from ideally perfect competition to the most 2. Determinants
restrictive monopoly. In these competitive
structures, acquisition of market information Entrepreneurship is a global phenomenon. In
is as important as access itself in that market. all countries it has become a dominant
But information is not free. If it were free and philosophy of business because of its many
open to all participant on the market, there virtues: creativity, innovation, initiative,
will not exist incentives to penetrate that flexibility and, above all, creating jobs. Even
market. This is preciselly why in the in the former communist countries,
neoclassical theory the concept of entrepreneurship is central to economic
entrepreneur virtually disappeared. development policies.
Paradoxically, entrepreneurs thrive in However, entrepreneurship is not a
conditions of imperfect information and a less homogeneous phenomenon. It is strongly
competitive environment. In other words, the influenced by institutional arrangements that
acquisition of market power can make more characterize the economy of different regions.
successful entrepreneur. Entrepreneurs can Of these, we believe that three are essential:
take the lead in price or be explicit or implicit government, market, social institutions. They
form a socio-political framework that
187
positively or negatively affect business were apparently anti-business. We mention

development. among them: imports beyond the protection
requirements of young branches, extending
3. Government bulging public sector, wage increases
unrelated to labor productivity, job protection,
Liberalization itself can not entirely rule out and maintain unprofitable private firms
the role, although restrictions on through subsidies, protecting small businesses
entrepreneurship are reduced substantially. beyond their requirements of growth.
Government would otherwise influence All these measures have hampered the
entrepreneurship. There will be new entrepreneurial spirit directly or indirectly.
beneficiaries and new losers because of Those profit-oriented entrepreneurs who were
climate change. Globalization is a world not truly innovative will have to face
orchestrated by conductor WTO, which works competition from several countries
against the lobby and for lobby. There is often competitors.
the preconceived idea that the liberalization of
the economy supports reduced government 5. Social institutions
role and influence can be effective in
reducing the economic state. Actually, what Entrepreneurs can play an important role in a
happens most often is not the actual reduction liberalized economy only if the parameters of
of the state involvement, but rather a change institutional support proper functioning of the
in itself which positively or negatively affects economy. Legal and judicial framework,
different economic groups. The main problem transparency in government, the role of law
is which of these economic groups are and respect for property rights are some
affected or get advantage from liberalized institutional aspects without which integration
economic activities and how state policies / globalization are not mere slogans with
resolve these issues. minimal impact on entrepreneurs. Free market
In an amendment, the state’ role in terms of economies of developed countries operate on
integration and globalization, entrepreneurs the basis of institutions that have evolved
should concentrate more on parameters and over time. Governing the functioning of these
institutional practices vis-à-vis state institutions increase transaction costs if they
regulations. Entrepreneurial efficiency will be meet obstacles. Transition to a market
assessed by understanding and managing economy from a market hypercentralized be
actions in an institutional environment at based on institutions inherited from the past
regional and global level. and unfriendly attitudes and beliefs of a
market economy. In these circumstances,
4. Market transition costs are high, resulting an
inequitable distribution of income and of the
Liberalization is a new challenge for sources for obtaining it.
entrepreneurs, who were accustomed to Entrepreneirial efficiency depends on the
maintaining control. For them, loss of market, that can not operate effectively in the
influence will be a serious problem. absence of other institutions and stimulating
Entrepreneurs who defy the arts to influence social values. The market itself is a Western
politicians and legislation in their favor will concept. Therefore it should not be
have to compete in a competitive market. exaggerated the importance of creating an
They can no longer redden „buttons” to institutional framework contributes to the
neutralize or cancel the competition in the functioning of the market.
market. On the contrary, they will have to
fight hard to prove their effectiveness and to 6. Models of entrepreneurship in the
convince customers, who now have the globalization era
widest range of options around the world.
In Romania, before integration, entrepreneurs In light of these factors, we believe that there
have benefited from government policies that are four models of entrepreneurship: liberal
188
entrepreneurship, liberal social Liberal social entrepreneurship corresponds to

entrepreneurship, collective entrepreneurship market economy driven, as described by Hall
and informal entrepreneurship. and Soskice (2001). These authors
emphasizes the importance of market
7. Liberal entrepreneurship mechanisms based on strategic coordination
of economic activities.
This entrepreneurial model is based on free This model of entrepreneurship is specific to
market mechanisms, which is considered the European countries. Such entrepreneur is not
most effective way of creating value. It is fully valued because its "distructive” size is
characteristic, essentially, to North America. subjected to strong social restrictions.
Government has a minimal intervention in
entrepreneurial activity, characterized by the 9. Collective entrepreneurship
phrase: „You do what you want”. Market is
the main instrument for creating wealth. Collective entrepreneurship is opposed to the
Thomas Jefferson, one of the first presidents liberal entrepreneurship. It is based on trust
of the USA, believes that „the best society is and a strong state. Market is an effective
one which is composed of a large number of mechanism for creating economic value.
independent entrepreneurs ... owners have the However, the market is perceived as a source
means necessary to conduct their activities, of social injustice as negatively influences the
solely responsible for the organization of their process of distribution of wealth. To address
work and not take orders from no other mortal this social injustice requires a strong
...” (Torres, 2001). In this statement we find government. Social institutions are regulated
the essence of liberal entrepreneurship, by central coordination mechanisms. This
specific to unguided market economy. The type of entrepreneurship is characterized by
market is in this case not only effective and the phrase: "We all know what you do."
efficient but is simultaneously an „array of Government sets out measures to encourage
social justice” (Torres, 2007). entrepreneurship, creating safeguards
Schumpeterian entrepreneur best fits this entrepreneur who sometimes feels that the
model of entrepreneurship. The entrepreneur risk is assumed by or shared by society.
is valued in terms of his or her creative and Collective entrepreneurship is specific to Far
destructive acceptable size. Examples of these Eastern countries like Japan or Correa.
entrepreneurs are the high tech type of Silicon Entrepreneur needs hierarchy is different.
Valey. Their characteristics are creativity, Esteem and self achievement are not fulfilling
originality, innovation, pioneering. The rapid essential needs but social needs. Also, this
growth leads to higher financial performance type of enterpreneur is found in less dynamic
and a certain amount of competitive activities, where competition is low.
aggression. Accordingly, entrepreneurs have an anti-
Such type of entrepreneur is also a great competitive behavior (Marchesnay, 2000).
philanthropist. He or she financially supports
various social activities. Bill Gates, Warren 10. Informal entrepreneurship
Buffett are telling examples in this regard.
Informal entrepreneurship is specific to
8. Liberal social entrepreneurship informal economy. The informal economy
means all activities which are not official
Model of social entrepreneurship requires records. Although the term has synonyms,
government regulation of business relations in such as parallel economies, underground or
the market economy. Although liberalism is hidden, it is not a universally accepted
admiss, they often perceived as a necessary definition, being highly customized to each
evil. This type of liberalism may be called a country. However, international comparisons
tempered liberalism and is characterized by are based on a definition guidelines, adopted
the phrase: "You do what you want to a in 1993, which recognizes as belonging to the
point." informal sector production activities of goods
189
and services which have the main aim to In a market with few legal regulations, this
provide jobs and incomes to those involved in entrepreneur has a high tolerance for
business, and it takes place in establishments uncertainty. It is based on short-term yield.
having often household-firm characteristics. Therefore, it is extremely opportunistic,
This means that units engaged in production rapidly dropping to less profitable activities.
of goods and services may not define as a This type of entrepreneur, very flexible, has
separate independent legal units of the been adapted to globalization, reflected by
household, where there is generally the entering new markets of the foreign
division between labor and capital as inputs. competitors. It can be characterized by the
Outside the household enterprise can register phrase: "I do what I want, even if things are
here and small production units run by 1-2 not right."
owners in the same household or individual Countries where there is such type of
households, or those who hire on long-term entrepreneurship are the Latin-Mediterranean
one or more workers without a contractual countries (Brazil, Mexic, Turkey, etc.), ex-
basis. In general, domestic economic socialist countries (Russia, Poland, Romania,
activities are excluded, ie the production etc.) and Asia (China, Taiwan, Hong Kong,
taking place within a family setting, where etc.). It is also found in Portugal, Spain, Italy.
there are commercial equivalents.
Informal sector is inevitable in all countries. It 11. Conclusions
differs, however, regarding to the weight and
types of activities practiced unchecked. Although entrepreneurship is a dominant
Communist countries have experienced philosophy of global business, it is not a
during the pre-revolutionary economy of homogeneous phenomenon. It is influenced
shortages, the supply of goods and services is by several factors: government, market and
always less than demand. It was to develop a institutional. These factors form a framework
parallel network of production and that defines specific models of
distribution of products with extended family entrepreneurship. Thus we can distinguish a
hub, which develops network market liberal entrepreneurship, schumpeterian type,
economy. When insufficient revenue became based on free market mechanisms, which is
a state long people were forced to resort to considered the most effective way of creating
activities that increase their incomes, often in value. It is characteristic, essentially, to North
the informal sector, resulting in occasional America. Government has a minimal
activities of longer duration activities covered intervention in entrepreneurial activity,
in an informal or developing the domestic characterized by the phrase: "You do what
economy (also common in these countries) you want." Then, we distinguish a liberal
and autoproduction (or own consumption). social entrepreneurship, which involves
Tried thus increasing revenue by avoiding tax government regulation of business in the
liabilities or business survival in unstable market economy. This type of liberalism may
cyclical economic conditions. In turn, the be called a liberal temperament and is
state and found him in a depletion process of characterized by the phrase: "You do what
trying to maintain revenues through an you want to a point." This model is specific to
increase in severity system of taxes. They entrepreneurial countries in Europe. A third
affect all the formal economy in which model of entrepreneurship, collective
individuals try to escape to survive. The same entrepreneurship, is opposed to liberal. It is
is mobile and informal activities in based on trust and a strong state. Market is an
developing countries where the informal effective mechanism for creating economic
economy. often exceeds the official. value. Social institutions are regulated by
The entrepreneur is a manufacturer of central coordination mechanisms. This type of
informal social networks. It is based on a entrepreneurship is characterized by the
variety of trust, but adapted by social norms phrase: "We all know what you do."
implicit restriction in the informal sector Collective entrepreneurship is specific to Far
which operates based on verbal agreements. Eastern countries like Japan or Korea. Finally,
190
there is an informal entrepreneurship, [5] Dahr, P.N. (2003) – The Evolution of Economic
particularly the informal economy. Informal Policy in India; Selected Essays By P.N. Dhar.
New Delhi:Oxford University Press.
entrepreneurship is based on a variety of trust, [6] Hall p.a. et d. Soskice (edited) (2001), Varieties
but adapted by social norms implicit of Capitalism, The Institutional Foundations of
restriction in the informal sector which is Comparative Advantage, Oxford University
dependent on verbal understandings. In a Press, 560p.
market with few legal regulations, this model [7] Hayek, F.A., Von (1937) – „Economics and
Knowledge”, Economica, 4:33-54.
of entrepreneurship has a large tolerance for [8] Hernandez, E. M. (2001), «De l’entrepreneuriat
uncertainty. It can be characterized by the au modèle entrepreneurial», Revue Française de
phrase: "I do what I want, even if things are Gestion, n. 138, p.99-109.
not right." Countries where there is such type [9] Kilzner, I.M., (1973) – Competition and
of entrepreneurship are the Latin- Entrepreneurship, Chicago: University of Chicago
Press.
Mediterranean countries (Brazil, Mexic, [10] Marchesnay M. (2000), “Entrepreneuriat et
Turkey, etc.), ex-socialist countries (Russia, territoire” p. 263-274 dans Verstraete. T, Histoire
Poland, Romania, etc.) and Asia (China, d’entreprendre – les réalités de l’entrepreneuriat,
Taiwan, Hong Kong, etc.). It is also found in Editions EMS, 297p.
Portugal, Spain, Italy. [11] Marshall, A., (1890) Principles of Economics: An
introductory volume. 1990 reprint of 1920
Consequently, although entrepreneurship is a edition, Philadelphia: Porcupine.
global phenomenon, it is not yet uniform. He [12] Mill, J.S. (1848) – Principles of Political Economy,
is influenced by several factors which New edn ed. W.J.Ashley. London: Longmans,
distinguish different models of 1909.
entrepreneurship. [13] Sasu, Constantin (2003) – Iniţierea şi dezvoltarea
afacerilor, Editura Polirom, Iasi.
[14] Say, J.B., (2001), A treatise on political economy;
Bibliography or the production distribution and consumption of
wealth. Translated from the fourth edition of the
[1] Atamer, T., Torres, O., (2007), Models of French. Batoche Books Kitchener, page 57.
entrepreneurship and globalisation,", “L’Art [15] Schumpeter, J., (1934), The Theory of Economic
d’Entreprendre" – Editions Village Mondial. Development. Cambridge, Mass. Harvard
[2] Bain, J.S., (1956) – Barrieres to New Competition, University Press.
Cambridge, Mass: Harvard University Press. [16] Smith, Adam (1776) – An Inquiry into the Nature
[3] Baumol, W.J., (1982) – Contestable Market and and Causes of Wealth of Nations. R.H. Campell et
Theory of Industry Structure, New York. all. (eds.) Oxford: Clarendon Press, 1976.
[4] Cantillon, Richard (1755) – Essai sur la nature [17] Torres o. (2001), "Les divers types
dur commerce en general in H. Higgs (ed.) d'entrepreneuriat et de PME dans le monde",
London: McMillan, 1931. Management International, Vol. 6, n°1, p.1-15.
191
IMPACTUL ISD ASUPRA DEZVOLTARII REGIONALE A ROMANIEI IN CONTEXTUL

ECONOMIC CRITIC – GRUPUL EGGER
Conf. univ. dr. Carmen NĂSTASE,

Universitea "Ştefan cel Mare" din Suceava, Romania,
carmenn@seap.usv.ro
Lector univ. dr. Mihai POPESCU
Universitea "Ştefan cel Mare" din Suceava, Romania,
mihaip@seap.usv.ro
Rezumat: Această lucrare abordează problema impactului ISD asupra dezvoltării regionale în contextul economic
critic. Prima parte a lucrării reprezintă o incursiune a situaţiei curente şi se analizează diferenţiat importanţa
investiţiilor străine directe, accentuându-se rolul acestora în dezvoltarea economiei. Rolul investiţiilor trebuie abordat
în contextul interdependenţelor dintre ramuri, subramuri, dintre producţie şi consum, dintre cerere şi ofertă, dintre
diferitele pieţe existente, între acestea şi noile pieţe care ar putea să se dezvolte. În final studiul dezvoltă o prezentare a
investiţiei realizate de Grupului Egger România, ce s-a bazat pe considerentul creării unui mediu economic regional
favorabil inovării şi implementării unei politici de inovare înglobate politicii de dezvoltare regională în ansamblu.
Investitorii străini sunt interesaţi să opereze într-un mediu economic deschis, fără nici o restricţie, într-un
mediu unde inflaţia este scăzută sau cel puţin sub control, cu o piaţă liberă în schimbul internaţional fără restricţii la
obţinerea profitului, în comerţul internaţional asupra investiţiilor străine sau asupra repatrierii capitalului. La nivel
microeconomic investitorii sunt interesaţi cum să angajeze personal calificat, sunt preocupaţi de nivelurile existente ale
productivităţii şi de costurile muncii, de politicile unionale, de costurile locale ale transportului, energiei, chiriilor, de
disponibilitatea şi costurile materiilor prime, de condiţiile infrastructurii, în special telecomunicaţii şi de asemenea
caută să lucreze într-un mediu nebirocratic.
Abstract: This paper addresses the issue of FDI impact on regional development in critical economic context. First part
of the paper represents an incursion of the current situation and analyzes differentially the importance of foreign direct
investment, emphasizing their role in the economy. The role of investment must be addressed in the context of the
interdependence of branches, sub-branches, between production and consumption, between supply and demand of
various existing markets between them and new markets that may develop. Finally the study develops an overview of
the investment made by Egger Group in Romania, which was based on the consideration of creating a regional
economic environment favorable to innovation and implementation of an innovation policies embedded in the overall
regional development policy. Foreign investors are interested to operate in an open economic environment, without
limitation, in an environment where inflation is low or at least controlled, with a free market in international trade
without restrictions to obtain profits, in international trade on foreign investment or the return of the capital. At
microeconomic level, investors are interested in how to hire qualified staff, are concerned about existing levels of
productivity and labor costs, union policies, the local costs of transport, energy, rents, availability and cost of raw
materials, the conditions of infrastructure, especially telecommunications and also looking to work in a non-
bureaucratic environment.
Cuvinte cheie: context economic critic, dezvoltare regională, dinamica fenomenului economic, investiţii străine
directe, politică investiţională
Clasificare JEL: F21, F43
1. Introducere indirecte în plan social, influenţând ritmul de

dezvoltare al ţării.
Problematica investiţiilor străine Evoluţia ISD într-o economie nu
directe (ISD) a fost şi este intens dezbatută, depinde numai de deciziile factorilor
existând în acest sens, preocupari atât la nivel responsabili de la nivelul conducerii statului
naţional cât şi internaţional. Investiţiile străine ci şi de activitatea desfăşurată de
directe au un rol important în dezvoltarea întreprinzători şi deciziile pe care aceştia le
economică a unei ţări pentru că ele iau.
influenţează structurile de proprietate, Nivelul de investiţii străine directe
structurile economice pe ramuri şi subramuri, este desigur numai un factor care contribuie la
structurile tehnologice, structurile ocupării nivelul local de competitivitate. Printre
forţei de muncă, cu consecinţe directe şi ceilalţi factori importanţi se numără:
192
 Nivelul tehnologiei; extinderea şi generalizarea principiilor de

 Nivelul surselor de suport - cercetare- conducere ale economiei de piaţă.
dezvoltare şi universităţi; c) Investiţiile dau naştere la ceea ce se
 Resursele de factori de producţie - numeşte efect propagat sau efect de antrenare,
cele mai importante sunt forţa de care determină: promovarea progresului
munca educată şi infrastructura; tehnic, creşterea producţiei, îmbunătăţirea
 Gradul de participare în procesul de calităţii bunurilor, creşterea eficienţei
globalizare - determină cât de aproape economice.
este industria locală la nivelul de Rolul investiţiilor trebuie abordat în
productivitate internaţional; are de contextul interdependenţelor dintre ramuri,
asemenea influenţă asupra ratingului subramuri, dintre producţie şi consum, dintre
de credit; cerere şi ofertă, dintre diferitele pieţe
 Gradul de utilizare a economiilor de existente, între acestea şi noile pieţe care ar
scară şi scop, respectiv nivelul de putea să se dezvolte etc. În acest sens, Peter
optimizare al mărimii producţiei si al Drucker considera că investiţia are în vedere
cheltuielilor de cercetare – dezvoltare; relaţia dintre inovaţii, producţie, cerere şi
 Gradul de coeziune al culturii de grup, piaţă; concret este vorba de faptul că inovaţia
coerenţa valorilor şi ideologiei şi atrage după sine schimbări în structura
adaptabilitatea la schimbări în mediul producţiei care, la rândul lor, duc la schimbări
economic. în structura cererii de bunuri şi servicii, iar
acestea, la rândul lor, atrag după ele,
2. Impactul ISD asupra dezvoltării schimbări în structura pieţelor în sensul
regionale apariţiei unor noi pieţe, adică ale noilor
produse apărute (Peter Drucker, 2003).
Investiţiile străine reprezintă acea Rolul hotărâtor în crearea unei
componentă a fluxurilor internaţionale care economii de piaţă funcţionale, compatibile cu
reflectă scopul unei entităţi (persoană fizică principiile, normele, mecanismele, instituţiile
sau juridică) rezidente într-o ţară, de a obţine şi politicile Uniunii Europene, vizează în
un interes (pe termen scurt sau lung) într-o principal asigurarea unei creşteri economice
companie rezidentă în altă ţară (Popescu, durabile, promovarea unei politici
2008). investiţionale coerente, crearea unui mediu de
a) Investiţiile sunt baza materială a dezvoltării afaceri prielnic, modernizarea şi dezvoltarea
economico-sociale a oricărei ţări. Ele asigură durabilă a întregii vieţi social-economice.
creşterea cantitativă şi calitativă a capitalului În condiţiile economiei de piaţă, ale
fix, sporirea randamentului tehnic şi concurenţei şi ale existenţei proprietăţii
economic al capitalului existent, dar şi crearea private, investiţiile constituie cheia asigurării
de noi locuri de muncă. Prin investiţii se unei eficienţe maxime printr-un nivel cât mai
asigură creşterea gradului de utilizare a ridicat al efectelor pe unitatea de efort
resurselor materiale şi de muncă ale societăţii, (Năstase, 2008).
rol pe care l-au avut întotdeauna. Politica investiţională este şi trebuie să
b) Investiţiile au un rol hotărâtor în asigurarea fie o politica de interes naţional, în sensul că
modernizării activităţii economice, ca o efortul investiţional, factor al progresului, al
condiţie necesară la adaptarea sistemelor accelerării reformei economice, trebuie
tehnice şi economice ale condiţiilor de trecere orientat pe ramuri, subramuri, pe diverse
a economiei naţionale la economia de piaţă, regiuni de dezvoltare, ţinând seama în primul
de participare a ţării noastre la relaţiile rând de nevoile interne ale ţării (Popescu,
economice internaţionale în condiţii de 1995).
concurenţă şi competitivitate. Ele asigură un Multe state din centrul şi estul
grad mai mare de ocupare a forţei de muncă, Europei, ca de altfel şi România, şi-au propus
locuri de muncă cu utilaje performante, diferite soluţii care să stimuleze crearea de
perfecţionarea proceselor tehnologice, acumulări de capital de către autohtoni prin
politici fiscale de ordin intern. Trebuie avut în
193
vedere efortul investiţional, ca factor cumpără facilităţi existente (M&A) sau

catalizator şi dinamizator ce presupune şi investeşte în construcţia de facilităţi noi
modernizarea utilajelor, a produselor şi a (greenfield) cu intenţia de a le opera ca
economiei în ansamblu. afacere.
În contextul actual, principalele Tranziţia ţărilor foste socialiste din
direcţii de acţiune pentru ca în România să se centrul şi estul Europei către economii de
asigure relansarea economică şi pentru ca ţara piaţă mai mult sau mai puţin funcţionale s-a
noastră să devină un partener activ, produs pe fondul expansiunii în regiune a
competitiv şi respectat trebuie ca printr-o investiţiilor străine directe. Timp de mai bine
strategie proprie de dezvoltare, statul să se de 15 ani, acestea au fost considerate soluţia
implice, în continuare, într-o mai mare unică şi cu mari şanse de reuşită a
măsură în procesul de stopare a declinului problemelor structurale şi pentru reducerea
economic, să se stimuleze investitorii interni handicapului enorm de competitivitate care
şi străini. Elaborarea unei strategii proprii de separa economiile noilor state membre ale
dezvoltare, prin implicarea reală a statului la Uniunii Europene de cele ale ţărilor
nivel macroeconomic, este necesară pentru dezvoltate. Investiţiile străine directe ar fi
ca, în acest mod, fiecare investitor să trebuit să constituie doar un mijloc, un
cunoască oferta investiţională, sectoarele instrument, unul dintre multe altele aflate la
economice considerate prioritare în acest sens dispoziţia guvernelor pentru atingerea unor
de către guvern. obiective concrete, subsumate celui general,
Implicarea statului este necesară prin cel al supravieţuirii şi funcţionării
poziţia pe care acesta o deţine, ca ordonator al economiilor naţionale în cadrul pieţei unice
pârghiilor economice (credite, taxe, impozite, europene.
stimulente etc). Considerăm ca este vital să În pofida unei amplori relativ modeste
existe o strategie de dezvoltare care să fie (698 miliarde US$ în 2006) raportat la
adusă la cunoştinţă, investitorilor ce ar putea mărimea principalelor economii ale lumii,
participa în condiţii egale la diferite proiecte ISD este un fenomen economic de importanţă
de dezvoltare. majoră atât pentru ţările sursă de capital ISD
cât şi pentru cele în care se efectuează
2.1. Rolul investiţiilor străine directe în investiţiile. Aceasta se datorează mai multor
dinamica fenomenului economic factori: în primul rand, ISD are un impact
economic mult mai mare decât cifrele nete
Un rol important în procesul de investite; de asemenea, un volum ridicat de
globalizare îl au transferurile de capital, ISD este cea mai apreciata confirmare a stării
know-how şi tehnologie sub forma de de „sănătate” a unei economii, reflectând
investiţie străină directă, care permite unor prezenţa unor factori competitivi şi confidenţa
actori globali să pună în valoare diferenţe de investitorilor în mediul de afaceri. Evident, în
pret (uneori substanţiale) al factorilor de funcţie de mărimea economiei în care are loc
producţie dintre piaţa mondială şi pieţe ISD, importanţa relativă a acesteia este
locale/regionale. În unele situaţii aceasta are diferită; dacă pentru ţările dezvoltate ISD
efectul de a aduce în circuitul comerţului aduce un influx de capital şi expertiză care
internaţional factori de producţie din este binevenit, util dar limitat la câteva
ţări/regiuni/zone care nu aveau resursele şi procente din economia locală, în ţările în curs
cunostintele necesare pentru a participa în de dezvoltare ISD este motorul cel mai
economia globală (Drucker, 1993). important al creşterii PIB.
Tehnic, noţiunea de investiţie străină ISD a căpătat amploare în dinamica
directă se referă la implicarea investitorului, economiilor lumii, în urma evoluţiei
ca proprietar, într-o afacere într-o ţară străină tehnologiei la un nivel la care punerea în
(Stiglitz, 2002). Spre deosebire de investiţiile valoare a unor avantaje competitive aflate în
de portfoliu unde investitorul cumpără acţiuni locaţii indepărtate a devenit posibilă. În
ale unor business-uri în a căror operare nu se acelaşi timp, ţări care posedau şi înainte
implică direct, în cazul ISD investitorul factori de producţie în care aveau un avantaj
194
competitiv substanţial, dar ale căror sisteme valoare adaugată. Procesele de fabricaţie
socio-economice fuseseră ostile ISD, au secundară şi terţiară au, dimpotrivă, un
înlăturat vechiul regim (ca de exemplu fostul conţinut ridicat de valoare adaugată. În mod
bloc comunist) sau şi-au schimbat optica caracteristic, durabilitatea investiţiei este
(China, India) în ce priveşte ISD. corelată pozitiv cu conţinutul de valoare
Importanţa atragerii de investiţii adaugată local.
străine directe într-un cadru economic în
continuă dezvoltare şi adaptare la cerinţele 2.3. Contribuţia investiţiilor străine
economiei de piaţă şi ale integrării în Uniunea directe la creşterea competitivităţii
Europeană este demonstrată de exemplele
anterioare ale unor economii care, parcurgând Majoritatea specialiştilor consideră că
etape asemănătoare celei prin care trece ţara impactul ISD în economiile locale este
noastră, au beneficiat de fluxuri de intrare sau pozitiv. Mărimea acestui impact depinde însă
de ieşire de investiţii străine directe de nivel de o varietate de factori care în final se
ridicat şi, pe baza acestora, potenţialul rezumă la competitivitatea economiei locale.
economic al acestora a cunoscut o creştere de În esenţă, impactul ISD este cu atât
remarcat şi a devenit suport al bunăstării mai mare (mai favorabil) cu cât: conţinutul de
indivizilor societăţilor respective. valoare adaugată local al produsului sau
serviciului este mai mare; componenta
2.2. Beneficiile investiţiilor străine directe educaţională este mai mare; produsul este
integrat la un nivel mai ridicat în lanţul
În general, ISD creează ceea ce în valoric:
teoria jocurilor se numeşte o situaţie „non-  vertical: comerţ interindustrial cu
suma zero” în care toţi actorii implicaţi au de bunuri asemănătoare diferenţiate prin
câştigat. Din punctul de vedere al calitate;
investitorului, ISD asigură accesul cvasi-  orizontal: comerţ interindustrial cu
garantat, pe un termen dinainte înţeles şi bunuri asemănătoare diferenţiate prin
avantajos, la resurse locale care îi conferă un caracteristicile produsului (80-90%
avantaj competitiv: mână de lucru disponibilă, din comerţul interindustrial în UE este
mână de lucru ieftină la nivelul de calificare de tip vertical).
necesar, eventual accesul la resurse naturale În Europa Centrală şi de Est, nivelul
locale, concesiuni de exploatare, etc. de integrare (verticală) în lanţul valoric este:
Din punctul de vedere al ţării, regiunii • ridicat şi în creştere în Republica Cehă,
şi/sau oraşului unde are loc ISD, în afară de Estonia, Ungaria şi Slovenia (30-50% din
faptul că generează activitate economică, comerţul cu EU). Comparabil cu nivelurile de
străinii aduc acces la pieţe globale, cunoştinţe comerţ ale EU cu Canada, Finlanda, Israel,
şi metode tehnice şi de management. Aceştia Japonia, şi Coreea de Sud; mai mici decât ale
transferă deseori tehnologie şi instruiesc un Austriei, Spaniei, Elveţiei şi SUA;
grup de manageri locali pentru a prelua, odată • mediu în Polonia şi Republica Slovacă (20-
ce ei vor pleca. Investitorii străini aduc capital 30%): comparabil cu Portugalia, Malaesia,
– cel propriu, sau primit de la bănci şi alţi Taiwan şi Turcia.
investitori străini interesaţi (joint venture), • scăzut în Letonia şi Lituania (15-20%):
atât privat cât şi prin pieţele de capital. comparabil cu Grecia şi Tunisia.
Un beneficiu important al investiţiilor O ţară beneficiază cu atât mai mult de
străine directe poate fi, daca e cazul, un pe urma ISD cu cât investiţiile sunt făcute în
conţinut ridicat de valoare adaugată local. industrii care produc bunuri cu valoare
Acesta se reflecta în nivelul salariilor plătite, adăugată mare, sofisticate tehnologic şi care
impozitul pe profit, componenta educaţională, sunt integrate în lanţul valoric al clienţilor lor,
etc. Un bun exemplu poate fi producţia în cât mai aproape de vârf.
sistem „lohn”, practicată larg în industria În timp ce competitivitatea se referă la
confecţiilor, a pielăriei etc., şi operaţiunile de caracteristici ale economiei şi sistemului
asamblare au componenta cea mai mică de
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socioeconomic al unei ţări, nivelul de lichidităţi, ca urmare a efectelor crizei

atractivitate (nivelul de încredere al financiare internaţionale.
potenţialilor investitori) se referă la percepţia Potrivit Bancii Nationale a Romaniei,
investitorilor asupra raportului cost-beneficiu în 2007, intrarile nete de investiţii străine
între valoarea potenţială a unor factori de directe în economia românească s-au cifrat la
avantaj comparativ în strănsă legatură cu 7,250 de milioane de euro, iar în 2008 la
dificultăţile prezentate de mediul de afaceri 8,645 miliarde euro. Structura ISD în 2007
din ţară/regiunea respectivă. arată că doar 18% din fluxul net a fost profit
Rankingul favorabil acordat Romaniei net reinvestit, cea mai mare parte, respectiv
de către managerii de intreprinderi europeni 51%, fiind constituită din creditele pe care
reflectă două elemente importante în decizia companiile străine cu activitate în Romania le
de investiţii într-o regiune: în primul rând, iau de la companiile-mamă din străinătate.
conducătorii de companii cu sediul în Europa Restul de 31% din fluxul net de ISD
par să fie mai bine informaţi decât omologii reprezintă participaţiile investitorilor străini la
lor de pe alte continente asupra unor capitalul social al firmelor investiţii directe.
oportunităţi existente în Romania. Aceştia În cursul primelor 11 luni din 2008, ponderea
sunt mai bine informaţi, pentru că atât creditelor intra-grup s-a diminuat la
informal, în cercul lor de afaceri, cât şi aproximativ 48% din totalul ISD, aceasta
formal, în cadrul sistmelor de culegere şi neînsemnând însă şi o limitare a efectului
procesare a informaţiilor din firmele pe care negativ pe care îl au la scadenţa asupra
le conduc, se cunoaşte raportul preţ/calitate al deficitului de cont curent.
mâinii de lucru din România şi elementele de Companiile au intrat în criza
liberalizare şi stabilizare macro-economică economică cu o sănătatea financiară relativ
survenite după 1997. bună, care le-au permis să facă faţă unor
Prin contrast, dacă conducatorii celor şocuri moderate, dar pe termen scurt. Riscul
mai mari firme private din lume situate pe din creditare s-a majorat, pe fondul unei
continente altele decât Europa nu posedă ajustări bruşte a cererii şi ofertei de finanţare.
informaţii despre România, rezultă că nu au Un şoc pe lichiditate ar avea efecte
fost ţinta unui efort profesional de promovare importante asupra sectorului companiilor, în
a informaţiilor cu privire la oportunităţile de timp ce un şoc pe cifra de afaceri generează
afaceri reale existente în mod curent în implicaţii moderate spre severe. De altfel,
România. evoluţia incidentelor de plată se situează pe
un trend ascendent puternic, ceea ce reclamă
3. Investiţiile străine directe în contextul atenţie sporită.
economic critic Împrumuturile subordonate,
depozitele şi creditele atrase pe care băncile
3.1. Contextul economic critic actual din România le-au primit de la acţionari
străini, în proporţie de 50% au scadenţa la
Sistemul financiar din România a peste 2 ani, iar 3 mild. Euro vor trebui plătiţi
evoluat în condiţii puternic marcate de între 1-2 ani şi circa 2,5 mild. Euro între 6
manifestarea virulentă a crizei financiare şi luni şi un an. Solvabilitatea bancară se află la
economice globale. La debutul crizei, un nivel bun (de 13%), iar activele slabe deţin
economia românească parcursese o perioadă o proporţie relativ mică în totalul activelor
de mai mulţi ani de creştere economică în (sub 1%) (OECD, 2009).
ritmuri înalte, dar însoţită de acumularea unui Potrivit prognozelor FMI, creşterea
deficit extern relativ important, precum şi de economică în România se prelimină la 3,8%
majorarea datoriei externe pe termen scurt. în anul 2010, în condiţiile în care inflaţia va fi
În ceea ce priveşte România, 2,8% şi respectiv 6,6%, iar deficitul de cont
menţionăm că, potrivit declaraţiilor curent de 14,5% şi respectiv 13,3%.
persoanelor oficiale din cadrul BNR ca şi al Prognozele pentru România relevă o
altor instituţii financiare, nici o bancă nu s-a încetinire a dinamicii economice care se
aflat în situaţie gravă, nu are probleme de menţine totuşi la niveluri superioare,
196
comparativ cu alte ţări din zona europeană cifrei de afaceri în jurul valorii de 20 la sută
(OECD, 2009). pentru a nu intra pe teritoriul negativ al
Odată cu creşterea prudenţialităţii în profitabilităţii. Companiile din comerţ ar
materie de creditare, băncile româneşti şi-au putea face faţă unei deteriorări a cifrei de
închis una celeilalte limitele de expunere pe afaceri de circa 30 la sută, datorită ponderii
piaţa interbancară, ceea ce semnifică existenţa mai mari a cheltuielilor variabile. La polul
unor planuri de rezervă consistente, în ceea ce opus se află companiile din industrie
priveşte asigurarea lichidităţii. (Năstase, 2010).
Efectele crizei financiare care induc
recesiune şi declin economic, pe cale de 3.2. ISD în contextul economic critic
consecinţă, se vor resimţi şi pe piaţa muncii în
România, prin creşterea ratei subocupării, ca Investiţiile directe au fost încurajate
urmare a reducerii cererii de forţă de muncă de câteva politici economice ca de exemplu:
în ţară şi în străinătate, îndeosebi în Spania, unificarea ratei de schimb, regularizarea pieţei
Italia şi Germania. valutelor, înlăturarea subvenţiilor şi
Un alt argument în sprijinul opiniei programarea înlăturării celorlalte, retragerea
potrivit căreia piaţa locală financiară a unor constrângeri pentru comerţul
României va resimţi doar indirect efectele internaţional. În acel timp nu exista nici un
crizei internaţionale se referă la rezerva progres în schimbarea valorii negative a
valutară a României de 26 mild. Euro, un dobânzii. România este de asemenea,
important factor tampon de contracarare a confruntată cu probleme de imagine negativă
acestor efecte chiar şi în cazul înăspririi în străinătate care în multe cazuri
condiţiilor din sectorul de creditări (credit distorsionează adevărul. Ca o economie
crunch). confruntată cu o mulţime de dezechilibre
Atât la nivel mondial, dar şi naţional, macroeconomice cauzate în special de
starea de faliment sau jenă financiară a unor dobânda negativă şi de rata de schimb
societăţi bancare şi nu numai, scăderea valorii artificială, investiţiile directe au rămas la
de bursă a acţiunilor acestora a generat o serie nivele scăzute cu toate că măsuri au fost luate
de operaţiuni de fuziune şi preluări ca şi o pentru a facilita creşterea acestora. Percepţia
creştere a tranzacţiilor bursiere stimulate de investiţiilor asupra economiei a fost aceea a
preţul redus al cumpărării de acţiuni. unor reforme incerte şi a unor nesiguranţe
Percepţia băncilor vizavi de riscul de privind stabilizarea şi creşterea.
credit al companiilor s-a deteriorat, ceea ce a Contextul economic stopează nivelul
dus la scumpirea finanţării. Firmele din investiţiilor directe, investiţii care sunt direct
sectorul imobiliar, construcţii, transporturi, afectate de criza economică actuală.
comunicaţii, turism sunt nominalizate ca fiind Investiţiile străine sunt strâns legată de
cele mai riscante După dimensiune, IMM- tranzacţii profitabile dar în primul rând toţi
urile sunt considerate a fi companiile care au investitorii sunt preocupaţi să evite orice
riscul cel mai mare. Întreprinderile mijlocii, incertitudine, fiind destul de sensibili la
care în 2008 se situau între corporaţii şi informaţii certe despre mediul economic
microîntreprinderi din punct de vedere al prezent şi viitor.
riscului de credit, nu mai comportă
diferenţieri faţă de cele din urmă. 4. Investiţia Grupul Egger în România
Companiile ar putea rezista unor
şocuri mai severe dacă acestea s-ar produce Investitorii străini sunt interesaţi să
într-un timp mai îndelungat care să permită opereze într-un mediu economic deschis, fără
ajustarea poziţiei financiare şi a structurii nici o restricţie, într-un mediu unde inflaţia
costurilor. Din perspectiva structurii este scăzută sau cel puţin sub control, cu o
costurilor, companiile sunt vulnerabile piaţă liberă în schimbul internaţional fără
datorită cheltuielilor fixe care nu se pot ajusta restricţii la obţinerea profitului, în comerţul
uşor pe termen scurt. La nivel agregat, internaţional asupra investiţiilor străine sau
companiile pot suporta o deteriorare bruscă a asupra repatrierii capitalului. La nivel
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microeconomic investitorii sunt interesaţi Grupul EGGER operează o singură

cum să angajeze personal calificat, sunt fabrică în România, la Rădăuţi, judeţul
preocupaţi de nivelurile existente ale Suceava. Din luna ianuarie 2008, aceasta
productivităţii şi de costurile muncii, de produce şi procesează plăci lemnoase pentru
politicile regionale, de costurile locale ale industria mobilei, distribuitorii de materiale
transportului, energiei, chiriilor, de din lemn şi tâmplari. Fabrica EGGER din
disponibilitatea şi costurile materiilor prime, Rădăuţi este una dintre cele mai mari
de condiţiile infrastructurii, în special investiţii green field din România cu 210 mil.
telecomunicaţii şi de asemenea caută să de Euro investite până acum, în primul stagiu
lucreze într-un mediu nebirocratic. de construcţie. Angajaţii din Rădăuţi au fost
Presupunând că toate aceste condiţii instruiţi la fabrica din Unterradlberg (Austria)
sunt îndeplinite este necesar ca ţara gazdă să pentru a se familiariza cu spiritul şi valorile
ofere informaţii prin documentare şi parteneri EGGER. Acest stagiu de instruire oferă
de dialog pentru a asigura aşa numita certitudinea că fiecare cunoaşte şi lucrează
transparenţă. Accesul la informaţii este o respectând standardele de calitate EGGER şi
problemă importantă în atragerea investiţiilor este familiar cu filozofia EGGER. La
directe (Anghelache, 2003). Chiar şi atunci începutul lunii septembrie 2008, fabrica
când informaţia este bună, dacă ea nu este EGGER din Rădăuţi a devenit singura unitate
furnizată rămâne inutilă. România încă din acest domeniu din regiune care deţine o
furnizează o cantitate săracă de informaţii Autorizaţie Integrată de Mediu (IPPC) şi care
potenţialilor investitori străini protejează mediul. Fabrica din Rădăuţi are un
Susţinerea investiţiei Grupului Egger impact pozitiv semnificativ pentru
Romania s-a bazat pe considerentul creării comunitatea locală şi pentru economia din
unui mediu economic regional favorabil regiune, din punct de vedere social şi
inovării, investiţiilor străine directe şi economic.
implementării unei politici de inovare Fabrica de pal de la Rădăuţi
înglobate politicii de dezvoltare regională în aparţinând grupului Egger a fost construită pe
ansamblu. o suprafaţă de 76 de hectare, şi doreşte să
Grupul EGGER, cu sediul central în producă anual 600.000 de mc de plăci
St. Johann, Tirol, este una dintre principalele aglomerate brute Eurospan, iar în prezent
companii de prelucrare a lemnului la nivel produce 14 milioane de mp de plăci
mondial. În prezent, compania de familie Eurodekor, urmînd să-şi dubleze producţia, la
fondată în anul 1961 asigură producţia cu 28 de milioane de mp, şi 45 de milioane de
ajutorul celor 5.700 de angajaţi din 16 fabrici mp de hârtie impregnată. Investiţia a creat
aflate în Europa. Clienţii companiei sunt 400 de locuri de muncă în fabrică şi în total,
reprezentanţi ai industriei mobilei, cu cele indirecte, 1.200 de locuri de muncă.
comercianţi specializaţi în domeniul lemnului Fabrica din Rădăuţi va exporta 60 la sută din
(care aprovizionează arhitecţii şi producţie, în România, Republica Moldova,
meşteşugarii), companii de comerţ en gros cu Ucraina, Bulgaria, Serbia, Cehia, Slovacia,
parchet melaminat, magazine de materiale Bielorusia, ţările baltice, Grecia, Turcia,
pentru amenajări interioare, precum şi Polonia, CSI, Macedonia şi Orientul Mijlociu.
sectorul de construcţii din lemn. În 2009, un an caracterizat prin mai
Grupul EGGER este unul dintre liderii multe retrageri ale unor investitori străini,
producătorilor de materiale lemnoase din grupul austriac Egger a anunţat investiţia de
Europa. Această afacere de familie care 53 de milioane de euro într-o centrală pe bază
lansează tendinţe produce şi procesează mai de biomasă cu o capacitate de ardere de 40,5
mult de 5 mil m³ de plăci lemnoase (PAL) de MW şi într-o fabrică de adezivi cu cea mai
înaltă calitate, MDF şi plăci OSB. Compania nouă tehnologie, în Rădăuţi. Investiţia creează
îşi comercializează produsele la nivel mondial aproximativ alte 50 de locuri de muncă iar
şi este activă în trei segmente strategice de centrala pe bază de biomasă va reduce
business: decoraţiuni (design interior, semnificativ emisiile de CO2. La fabrica de la
mobilă), construcţii si retail. Rădăuţi lemnul este folosit iniţial ca materie
198
primă pentru fabricarea plăcilor de lemn, iar asemenea reduc cheltuielile pentru C&D în
deşeurile lemnoase şi lemnul reciclabil care timpul vremurilor grele. Antreprenorii
nu pot fi utlizate în producţie sunt folosite creativi pot să-şi revină din actuala criză
drept combustibil pentru centrală pe bază de economică globală mai bine decât
biomasă. De asemenea, Egger va investi 40 întreprinderile tradiţionale. Incubatoarele de
de milioane de euro într-o fabrică de adezivi afaceri, clusterele de IMM-uri inovatoare,
care va oferi 40 de noi locuri de muncă. parcurile ştiinţifice şi tehnologice, precum şi
Reprezentanţii Egger susţin că vor instala agenţiile de dezvoltare ar putea juca un rol
doar cele mai noi tehnologii în domeniu, care important în susţinerea investiţiilor străine
vor asigura un nivel al emisiilor foarte scăzut. directe şi în facilitarea accesului la finanţare
adecvată pentru IMM-uri la nivel local şi
Concluzii regional.
Reţeta investiţiilor străine directe
Analiza ISD în România, în contextul funcţionează cu succes doar în ţările care
economic actual, ne ajută să formulăm câteva direcţionează capitalul extern spre sectoarele
concluzii, printre care mai importante ni se orientate către inovaţie şi înaltă tehnologie.
par următoarele: există un potenţial Nu este şi cazul României, unde ISD au
investiţional scăzut, foarte multe firme determinat în principal creşterea importurilor
multinaţionale şi-au stagnat investiţiile sau şi accentuarea deficitului de cont curent.
chiar s-au retras de pe piaţa românească;
există o slabă capacitate de absorbţie Bibliografie:
investiţională; sindromul subinvestirii este
încă prezent, în special în mediul rural (a [1]. Drucker Peter (1993), Inovaţia şi sistemul
aparut şi sindromul dezinvestirii); nu există antreprenorial, Editura Enciclopedică, Bucureşti
[2]. Anghelache Constantin (2003), România 2003.
un impact pozitiv asupra sectorului industrial Starea economică – perspective, Editura
forestier şi dezvoltării rurale; distribuţia Economică
regională a capitalului direct investit în [3]. Popescu Petre (1995), Metode şi tehnici de
România se caracterizează prin mari reducere a costurilor, Buletin economic legislativ
inegalităţi. nr. 1/1995, Editura Tribuna Economică, Bucureşti
[4]. Năstase Carmen, Popescu Mihai, Boghean
Cea mai recentă raportare a acestor Carmen, Scutariu Adrian (2008),
performanţe cantitative plasează România pe Macroeconomics: Fundamental concepts, Editura
locul 15, din 27, între statele Uniunii Didactică şi Pedagogică, Bucureşti
Europene din punctul de vedere al capitalului [5]. Năstase Carmen, Miika Kajanus (2010), Impactul
străin intrat în economie în 2007 sub forma crizei globale asupra IMM-urilor şi a
comportamentului antreprenorial – studiu de caz
ISD. Cu toate acestea, cele aproximativ şapte România şi Finlanda, Amfiteatru Economic,
miliarde de euro intrari nete de ISD nu au Supliment
contribuit semnificativ nici la creşterea [6]. Popescu Mihai, Economia şi administrarea
productivităţii muncii, nici la plasarea riscului, Editura Didactică şi Pedagogică,
Romaniei în clasamentul celor mai inovative Bucureşti, 2008
[7]. Stiglitz Joseph, Walsh Carl, Economie, Editura
state. Economică, Bucureşti, 2002
În perioadele de recesiune, companiile [8]. OECD Annual Report 2009
tind să reducă investiţiile, slăbirea [9]. OECD Roundtable on Consumer Empowerment
perspectivelor pentru creşterea economică and Business Behaviour: A Win-Win
viitoare. Antreprenorii cu idei noi şi Relationship, OECD Headquarters, June 2009
[10]. www.arisinvest.ro – Agenţia Româna pentru
companiile mai tinere sunt în mod deosebit Investiţii Străine
mai vulnerabile la constrângerile financiare
într-o recesiune, dar firmele mari de
199
THE COMPETENCE OF THE MANAGER IN A MILITARY STRUCTURE
Drd. ec. Sofronia Petrică Puiu,

Universitatea Alexandru Ioan Cuza Iaș i, România, puiusofronia@yahoo.com
Abstract: In the sphere of concrete activity which ask for certain professional approach, certain positions are validated
with certain precision. The status position represents a way of establishing the socially recognized features used in a
certain social background to whom the subjects may be designated offering more attributions and obligations to their
owner.
The components of the military officer type are the following:
 The human model, which reveals the essential links of the military education ideal.
 The professional model which sum up the fundamental abilities the officer must prove during the formal
requirement in the army, during war or simply during the modern, social life;
 The social citizen model.
The officer model embodies the following essential characteristics:
 The officer is a manager, and his quality as a military leader represents the fundamental idea and the
synthesis of all his competences.;
 The role of the officer is to be a captain (leading people and military organizations), specialist in the army (in
different fields of military education) fighter, trainer, guide of the education an officer-citizen should receive;
 These roles are interdependent and interfere within the same person, but all officer competences should be
subjected to the quality of a military figure.
 The assembly of all qualities as well as each and every competence taken separately may be expressed and
finalized through three aspects of his existence and of his actions.: to know, to be, to do.
Key words: group, team, military type, model.
JEL Classification: M12
Introduction In the area of concrete activities that

presume a certain kind of professionalism,
The people’s coexistence, as well as positions, precisely named, are validated. The
their common actions, leads to the status position is a way to designate the
establishment of certain norms or behavior features socially known of a position used in
standards (manners) that indicate what is the social space, to which the individuals can
expected from an individual in a certain be designated and which give the beneficiary
situation, namely what are his roles, how he a series of attributions and obligations. The
develops these roles to adapt to the context in rights and attributions represent the role that
an acceptable and convenient way. On the the individual must accomplish. The status
other hand that person has the right to expect position differs depending on the roles that
certain behaviors from the others, based on are attributed to it; in most cases this position
the position that they have in collectivity, and has great validity.
their social status. Even though related, the role and the
The roles are recognized and status are different. Thus, a person has a
appreciated by those that belong to the group status but plays a role. The statuses don’t
and participate at its life. In other words, these have access without being attached to the
are in a close connection with the prescriptions of the role. The position and the
expectations that result from the various obligations are closely connected. The status,
activities, with their sequence and with the as the individual’s position in an assembly of
conditions that enable the occurrence of such social relationships, represents his place in the
acts. When such a level of formalization system, and the role is the status’s dynamic
interferes, a certain title is given to the ones side.
that develop a certain role, is created what we Becoming aware of the necessities
call the social status. generates useful interactions between certain
people, which create relatively stable
Content relations, with a minimum concrete
200
functionality in the explicitly specialized organizing functionality, which is adopted as

relations. a system of reference). The pertaining to
The first who tried to explain the necessities makes possible an analysis
organization’s structure was Max Weber, who different from the systemic one.
said that “the legally rational” form, namely Lucian Culda explains the previously
bureaucracy represents an efficient noticed situation through the fact that these
organization technique. Bureaucracy is networks of statuses and roles can change in
considered a form of structural organization time under the pressure of evolutions that take
in which there is a set of formal regulations, place in the capacity to process information.
procedures also, regarding the relationships Acknowledging the necessities by using a
between the people involved. series of procedures from the scientific
The system is named rational because analysis, can, if there aren’t research errors,
the methods are especially conceived to lead become really broad and nuanced. This
to the accomplishment of clear and specific creates premises for the satisfactory
objectives; the organization is compared to a conceivability of the processes through which
well-projected car that accomplishes a task, the necessities can be satisfied and the
each part of the car leading the process to the projection of really functional networks of
level of maximum performance in the statuses and roles. In this context there is the
achievement of the function. It is legal concept of social-functional role.
because it is done through a system of rules This chapter isn’t something new
and procedures; through the position one because the information has already been
individual occupies at a certain moment. used by the social psychology to designate
We notice that the author reiterates as definite roles within the groups, organizations
a reason for bureaucracy efficiency its own and institutions, depending on the positions
form of organization that represents the final and the rapports with the other positions, on
stage of depersonalization. Max Weber didn’t the background exigencies imposed in the
have as an intention to create a description of basic activities, though which they are
the empirical reality; on the contrary, he defined.
referred to certain ideal types of the ways in In his opinion about the social, Lucian Culda
which authority is exerted. The conclusion is circumscribes, through the concept of social
that bureaucracy represents a theoretical functional role, the way in which this role has
construction elaborated with its unique to be played in order to fulfill the status’
purpose to serve as a term of comparison for exigencies, which resulted from the
the organizing ways from the historical and necessities that produced and sustained it.
empirical reality. In other words, in reality we Because humans have different
can identify aspects more or less connected capacities to produce interpretations of reality
with the “rational – legal” ideal type in various ways, they receive the necessities
presented by Max Weber. vaguely and partially under the shape of
In this context, one of the problematic “interests”, “aspirations” or “needs”. In this
aspects that people had to deal with, in which context, people become a part of the social
they acknowledged the explicit necessity for organization in ways particularized by their
organization of these interactions objectified individual needs, facts which has imposed
in identity issues of the standard roles, in the another important concept for our study, that
context when the same necessities were of social real role, through which we
satisfied by the networks of statuses and roles, designate the effective way for a human to
which didn’t coincide in configuration and play his role.
content. Another important aspect is that in a
During the systematic approach the social organization, the actions that maintain
functionality issues from criteria that have it there aren’t people who can play the roles
their source in the organizations’ systemic which are designated for them. But people
interpretation: accomplishment of attributions can become able to function in social
(the roles contribute to the maintaining of organization, to practice what we call real
201
social roles only through the socializing people have become more subtle and they are
processes. considered to be a part of the alternative
From this theoretical perspective, constraints. The role of leaders was shaped.
Lucian Culda considers the following: Trying to conduct a behavior is observed at
 The assumed social role: represents leaders, since the beginning of time. The
the way in which a role is interpreted leader encounters difficulty especially when
by the man who has to play it; he has to influence the way in which the key-
 The attributed social role: people process information. For the people to
circumscribes both the way in which a adopt the attitudes that the leader considers
role is interpreted by those who desirable, he must influence the morality, the
interact with the one who plays it, and sensitivity, the esthetic sensitivity, ways of
the way in which a role is prescribed thinking and even the masculinity or the
by organization regulations. femininity of those that constitute the object
So, we can conclude that the of his interventions. So in order for someone
functionality state of both the social to assume the role of leader he has to have
organizations and the social interactions is certain competency in the field, but also, the
connected with the explanatory performance key-people must hold certain emotional
of the ways in which these regulations explain characteristics: they have to let themselves be
the roles, the rapports between the statuses of influenced.
the integrated men and by the functionality of 3. Administrators: through the role of
the ways in which people assume and administrator, the person that takes decisions
attribute the roles that result from the network has responsibilities regarding the
of statuses. department’s or the organizations’ resources.
There are five major roles of the These resources vary from the material,
person who takes decisions in an informational up to the organization’s human
organization: resources. The way in which these resources
1. Governing the processes: through this role are planned, coordinated and assigned
these persons manage the processes underlines if the person that takes decisions
(informational, socializing processes) that can play the role of administrator.
take place within the department or the 4. Assessor: the role of assessor is of special
organization. The way in which the members importance and if we don’t become aware of
of the organization interpret their situation this we can’t have satisfactory interventions
within the organization or the department, of in the social field. The role of assessor must
the organization within the socio- be perceived as an attribute of the person that
organization, the way in which they create takes decisions, as a function of leadership, a
representations and images about the statuses, way of knowing reality and a point from
roles and their prescriptions, as well as the where one can correct mistakes.
acknowledging the necessity to accomplish
certain roles and objectives are important to The role of assessor – a possible solution to
the department’s or the organization’s identify malfunctioning in a sub-unity
functionality. In order to make these
processes more efficient the person who takes The officer is the functional nucleus of
decisions has been given the role of manager; the entire military system, because he assures
2. Chiefs and leaders: Because the man is the army’s functionality through the concept
required to create qualified interactions in the of “humans – instruments – actions”. The
organization, the constraint has proven to be officers’ quality is the one that creates the
less efficient. Up to this moment constraints army’s quality; the officer is the one who can
are considered to be indispensable; they are transform it in a modern army or place it
mentioned in all the social regulations, from behind it, with a few years.
the juridical to the administrative ones within In the last years the profile of the
an organization. Only the ways to constrain officer prepared by the Romanian military
someone have altered. The ways to influence school has evolved from the prototype of the
202
officer that performed tasks (in the previous care of the person in charge with decisions,
decades) to the projection of the model like in the case of military sub-unities.
focused on the basic competencies. The sub-unities’ evaluation and the
The components of the officer’s model are possibility of malfunctioning implies the
the following: defining of objectives and conditions that we
 The human model, through which the must take into consideration, especially in the
essential particularities of the process of managing change, by taking into
educational military ideal are account the fact that people change,
expressed; procedures change (the people’s and the
 The professional model, that sums up organization’s procedural character),
the primary capacities, through which organizations and politics change, therefore
the officer expresses himself in the the possibility of malfunctioning appearance
assembly of the functional can change, fact that leads to a permanent
applications of army, war and modern change in the commander’s role of assessor.
social life; To assess the possibility of
 The civic social model; malfunctioning appearance implies a good
The officer’s model sums up the knowledge of the sources of malfunctioning
following essential characteristics: in an organization. For as long as sub-unity
 The officer is commander (military commanders don’t have an appropriate
leader), and his quality of military interpretation of the sub-unity and of the
leader is basic and it expresses the sources that generate malfunctioning, these
synthesis of all his competencies; can’t assess and follow adequately the sub-
 The officer’s roles are: commander unity’s evolution. Once the risks are detected,
(leader of people and military the commander has to introduce the analysis
organizations); army specialist (fields activities that have as a basis questioning
and specialties of military actions); (futurological, ontological and
fighter; teacher and manager of the historiographic) and of course the solutions
education of officer-citizen; based on the answers, in order to handle or
 The roles are interconnected; the diminish certain tolerable limits, fact which
officer’s competencies are subsumed requires mutual understanding and
to his quality of military leader; communication between assessors and
assessed. The quality of the sub-unity’s
 The assembly of the officer’s
assessment, the way in which the role of
competencies as well as each
component is expressed and finalized assessor is accomplished by the sub-unity’s
commander is limited to the used theories and
in three stages of his existence and
the user’s restrictions.
actions: to know, to be, to do.
The organizations and the social
The sub-unity is subjected to risks or
processes can be correctly assessed, if it taken
to the possibility that malfunctioning might
appear which can be part of the organization into consideration the fact that they not only
exist for people, but they also function in
itself, risks specific for each activity, but also
external risks. Some risks are inherent to each ways that issue from the people’s abilities to
manifest within themselves.
activity and that’s why they can be accepted,
The problem of assessing the sub-
but there are also unacceptable risks. This is
unity’s and the soldiers’ situation is extremely
where the sub-unities commanders’ role of
complicated because the required criteria
assessor interferes; this role allows them to
must be relevant. They can be relevant only
avoid unacceptable risks and to maintain at a
from an understanding of the connections
level of permissiveness the acceptable risks,
between the soldiers’ situation from the sub-
so that the sub-unities’ objectives can still be
unity and the sub-unity’s situation from the
obtained. All the entities want to administer
military organization, and the connections can
risks, some even build departments to manage
be identified only if they interpret correctly
them, but some live the activity to be takes
203
the ways in which people get involved in the 1. the pressure of the formalized reports
sub-unity’s formation and functionality. over the soldiers’ bio-processors;
When assessing the personnel, in the 2. the pressure exerted by the sub-unity
leadership process the commander’s role of over the interpreters of the
assessor represents a lever used to measure assessments;
the soldiers’ competencies and flaws, their 3. the soldiers’ ability to interpret the
accomplishments and their defects, the sub-unity’s situation within the
quantity of work and the results, the prospects military organization;
of personal development. Thus, the process of 4. the soldiers’ ability to interpret their
assessing gets numerous nuances; it no longer situation within the sub-unity.
represents a simple word when it comes to The material reward for the activities
talking about people, it represents a fact able developed in a military organization, the
to lift oneself or lower oneself, to give life or possibilities of promotion, the safety of the
to kill, to build or to kill ideals, to stimulate or work place and so on, cannot be regarded as
to choke initiatives, to form or to crush relevant assessment criteria of the soldier’s
values. Therefore, through the role of assessor situation in the sub-unity.
those who are assessed take into account the These types of criteria imply that these
way in which the activity is appreciated. The factors are external to the organization and
official attestation of the acquired level not organic constituents of it. The assessment
through the obtained results, assures an must reflect reality and based on this
important motivating function. reflection, the assessed reality is changed in
At the present moment the final stage order to maximize its functionality and to
of assessment is represented by the “balance avoid the appearance of malfunctioning by
sheet” that constitutes an opportunity for the acting over the sources that make them
executors to communicate the possible. So based on the assessment the
accomplishment stage of the planned reality is shaped. Finally, we can say that
objectives, the cause of the mistakes or of based on a satisfactory assessment one can
falling behind, the methods that allowed identify possible or existent malfunctions.
superior performances, the merits, the The sub-unity commander’s role of assessor
individual responsibilities, the grades is seen as a possible solution for the
obtained, the rewards and when it is the case identification of malfunctions.
the sanctions applied and the tasks for the
following period. However, the “balance The commander’s necessary competencies
sheet” is an instrument that doesn’t satisfy the to identify malfunctions in his sub-unity
necessities for which it has been created.
The guidelines provided for the The competence, analyzed as being a
human’s procedural – organic pattern, processing capacity that recurs from the
indicates that even more important than the constitution of specialized interpreters in
surface clues of the soldiers from within a order to obtain better results, requires a
sub-unity are the clues that regard the changes certain acknowledgement of the capacities’
that are produced in the humans’ processors. possibilities and limits and as a consequence,
If these changes increase the humans’ the man’s ability to interfere deliberately and
conscience (internal motivation) that means systematically in order to improve and
they are in situations that favor them; in, on establish the available competence in a certain
the other hand, these changes diminish the sequence of its development.
humans’ discernment, they are in situations The forming of the commander’s
that jeopardize their position within the sub- competence in order to identify and manage
unity, fact which makes them feel insecure. malfunctions is important for his maturation
So, the commander, when exerting his (which must be a normal and complete
role of assessor, must take into account the process, based on his normal socializing, in
following: all its three dimensions.
204
The forming of the commander’s  the sexual, emotional, esthetic and

competencies is transposed in the efficient operational maturation must take place
satisfying of three requirements: in normal conditions
 to know  to be able to maintain informational
 to do connectios
 to be  to be able to control himself
These three requirements must be  to have self – evaluation skills
satisfied by the commander in his quality of: The commander must have the
 teacher (socializing factor) following competencies in order to achieve
 citizen the “to do” requirement in the process of
 leader of people and organizations identification and management of
 specialist malfunctions:
 multi-tasked fighter  to manage in an effective way the
 assessor informational connections in the sub-
To form identification competencies unity (the communicative skill)
and to manage malfunctions in the military  to use effective theoretical guidelines
sub-unity requires the forming of both in order to manage malfunctions
professional competencies and of social  to foresee the malfunctions as well as
competencies, for all the previous six roles. the consequences that result from
For a good management of malfunctions the implementing their solutions of
commander must have the following administration
cognitive competences:  to interfere efficiently, in real time, in
 to form correct and broad theoretical the management of malfunctions
knowledge about people and social  to manage efficiently the soldiers’
organizations socializing skills
 to form correct interpretations about Together with these competences, identified
malfunctions and their management as being necessary to the sub-unity
 to form interpretations that allow the commander for an effective management of
creation of ontological, malfunctions, there are surely others that can
historiographic, futurological and be identified.
praxiological questioning based on the
procedural-organic theory Bibliography:
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Doubling of Humans in the Social System of
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Press, Bucharest, 1994
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Bucharest, 1982
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Affiliations, New York, Free Press, 1964
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Epystemological –Gnoseological Considerations,
Bucharest, 1976
[15]. Stela Cenea, Functional Structuralism in the
American Sociology, Scientific Press, Bucharest,
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[22]. www. lider.go.ro
206
DECISION-MAKING METHODS AND COMMUNICATION STRATEGIES IN

MANAGEMENT
Ovidiu Spirescu, Master student,

“Stefan cel Mare” University, Suceava, Romania
oss_ovidiu@yahoo.com
Abstract: The underling of communication strategies and decision-making methods in terms of managerial activity
reveals complex meanings through which economic actors assume certain responsibilities. Such an assumption justifies
the relevant role such an approach has, respectively an interdisciplinary understanding in terms of management. In this
sense, scientific explanations concern a pragmatic issue of such a process initiated and undertaken in the same context
at the level of scientific knowledge. In addition, a conceptual understanding of the structures underlying the
relationship communication-decision finds its purpose in a practical dimension specific to the managerial
activity. Therefore, the structural-individual valences of the economic activity are characterized by a special
methodological consistency through which decision-making methods and communication strategies of management are
explained in relation to the economic reality.
Keywords: managerial activity, decision-making methods, economic formalism, economic reality
JEL Clasification: A12

expression with results in management there
are used various domain-specific languages
Introduction resulted from various resources, such as
information, data, tools and processing
This interdisciplinary analysis is built techniques. Furthermore, in contemporary
on a methodological approach and finds its economy, an organization can be valorized
full justification to the extent that with the help of qualitative information that
management activity relates on the one hand can be inserted into decision-making, having
to economic reality, and on the other one it defining management features, through
refers to the specific abilities of the social certain pragmatic strategies. Therefore, an
actors. We aim in this process the methods effective decision-making process is
through which communication strategies can impossible without an information system
find their pragmatic valences within the which has the role to establish and achieve an
managerial activity through a conceptual objective system of the organization.
understanding specific to the scientific
explanation. We thus take into account the The architectonics of communication
use of the formal method through which the strategies in terms of managerial activity
assessment of managerial decision fits within
the economic-social development Thus, in an interdisciplinary approach
dimension. Moreover, in this analysis we will of information structures, relevant is precisely
try to shape the meaning revealed by an to understand the used concept. It is clear that
understanding following the scientific certain social strategies require specific
explanation dimension. In this respect, we features related to practical necessity. In this
will refer to a conjunction of formal method way, the social need to understand managerial
with the method of comparison study activity generates behavioral changes of the
conducted at the level of communication economic actors that relate actually to specific
strategies in the context of managerial communication strategies. This situation
activity. expresses at the level of social system the
In order to carry out successful economic potential designed to express the
business, the information system can be an pragmatism of the initiated activities.
asset only if its exposure ways are very well Understood as a message
defined in society through the main source of transmission, communication as theoretical-
authority that can focus its attention on the scientific analysis refers to the mathematical
individual and that is knowledge. Thus, for an model (which is a linear-mathematical model)
proposed by the researchers Claude Elwood describes communication as a message

Shannon and Warren Weaver. They identified transmission, the triangular model of
three levels (which are interdependent) Newcomb (1953) which is known, moreover,
concerning communication study problems: as the first model that included the role of
technical problems (level A), semantic communication in society, the model of
problems (level B), efficiency problems (level Westley and MacLean (1957) which
C). Moreover, an attempt to improve this emphasized the editorial-communicational
theory was accomplished by George Gerbner function, the structural model of Jakobson
that allows the approach of perception and (1960) which focuses on six constitutive
understanding problems. Thus, Gerbner’s factors of communication (which essentially
model (1956) describes the communication emphasize the communication functions: the
process from a double perspective, namely, expressive function, the conative function, the
the perceptive, respectively the one of means referential function, the poetic function, the
and control. phatic function, the metalinguistic function)
Another theory on communication or the anthropological model of Francis
(along the mathematical one of Shannon and Jacques (by which the communicational
Weaver – also known as the telegraphic structure is extended to epistemological
model of communication, introduces a issues). All these models are merely
common unit of measurement of the expressing the fact that the explanation and
effectiveness of communication, namely, the the understanding of communication involves
bit – the binary digit) is that of Norbert the development of theories and concepts
Wiener, which sees communication as a designed to support the scientific validity of
bonding process within a social system which this process of explanation and understanding
is an organized whole. In this regard, he also specific to socio-educational
proposes a retroactive circular model of reality. Therefore, the expression forms of
communication, which will be later the communication have different ways of
starting point in developing the theory achieving perfect educational activity in terms
promoted by the Palo Alto School of instructive-educative system.
(distinguished representatives being Margaret We also have to specify the fact that
Mead, Edward T. Hall [1]). the communication models proposed over
According to the specific theory of time were analyzed in terms of some specific
Palo Alto School, communication is theoretical dimensions too, designed to
considered and analyzed in relation to provide other perspectives of approach. Such
different levels of complexity and circular an approach is the one that relates
systems. This type of approach refers to a communication to the argumentative model,
new form of communication which aims to correlated with normative activity (St.
achieve a link between individual-specific Toulmin’s model). According to this model a
actions and social actions. In this regard, cause explains an order (support) by
Gregory Bateson in his work Towards a introducing a justification (which is actually a
Spiritual Ecology has attempted to build a rule of derivation). About this model, Jürgen
communication theory in relation to Habermas argues that “the plausibility of this
organicistic thinking, according to which the overall assumption (or rule of derivation) is
world and its evolution represents to their justified by reference to the following statutes
very nature a communication assembly. This and other legal provisions” (Habermas,
model of Baetson views processuality having 1983). In this context, Jürgen Habermas
the perspective of a future action construction recognizes that fulfilling needs depends on
(Pârvu, 2000). Therefore, communication as how they are governed by rules. Moreover,
information exchange is a theoretical training the interpretation of needs belongs to the
of the action. inner nature of subjectivity itself.
Of course, there should not be omitted All these aspects express the fact that
other models on communication process such within the argumentative process an
as the linear model of Lasswell (1948) which important role is played by the pragmatic
208
discourse through which the normative of communication must not exclude scientific
materializes. In other words, in conveying conventionalism (sometimes expressed in a
information, the transmitter “uses” a strategy tacit manner). Essentially it is about
in order to be understood. Also, the receiver acceptance among the scientific community
“uses” a style (that he learned over time), a of conventional education. Furthermore,
strategy in the process of receiving within the scientific community, conventional
information in the sense that he aims to education (along with social education) is a
decipher the message he receives from the key factor in the development of human
transmitter. Therefore, the communication personality. In this way, the society in which
channel between the transmitter and the education is more than obvious, has just to
receiver is an important factor in the give priority to developing and sustaining
communication process. social values.
An interesting issue in terms of Approaching a management strategy
assuming a new management strategy at the in terms of a new interdisciplinary
social level is the one according to which the methodology allows on the basis of
necessity for a qualitative-competitive informational interactions a working
approach depends on how the methodology as understanding that combines theory with
such is applied. Thus, any other form of experience. In particular, the raised issues
communication involves a socialization generate situations that illustrate eligibility
process, through which the operationalization criteria according to which a scientific
of the proposed objectives becomes paradigm legitimizes. In other words,
possible. Furthermore, it is obvious within the epistemic approach reflects theoretical-
methodological strategies a form of social applicative connections of the epistemic
conventionalism which relates directly or structures or, in scientific terms, an
indirectly to the human needs system. In this appropriate strategic vision (Pleter,
context, we consider that is necessary to 2005). Therefore, a scientific paradigm is
stimulate the transition from the idea of materialized effectively in so far as epistemic
evaluating the informational content to the structures relate to value judgments.
idea of reevaluating the strategies used in An economic reality in a continuous
such a process. Moreover, this transformation process reveals a cognitive
methodological issue depends rather on the dimension that can enjoy a particular
social norms present in the new knowledge methodological value at social level. The
society. dimension of this economic reality in terms of
Developing and accepting social society reflects the need to know the
norms related to specific communication knowledge potential of the instructional
strategies in managerial activity involve approach. Thus, in the context of promoting a
discursive forms of argumentation that, value system the responsibility and the
pragmatically speaking, emphasize well- training of the social actors involves a certain
founded conceptual-theoretical state of affairs. Also not to be neglected are
correlations. Thus, the justifying reasons of the socio-affective relationships between the
such an approach reflect the various degrees actors engaged in this task. In other words,
of complexity whose evaluation standards communication skills, we believe, must
express actually the assumption of follow a non-conformist path and not
educational reality in terms of a specific necessarily a standard pedagogical model. In
language, which, for some thinkers, is related fact, an educational culture supported by
to the level of scientific discoveries (Popper, authoritative decision system is able to freely
1998). translate its values insofar as it benefits of
This represents a further reason for a tolerance and respect. One society that does
scientific community to assume certain social not respect its economic culture and thus its
responsibilities. Thus, an important issue specific education can only fall in its own
within the scientific community is compromised conventionalism. In this way,
communication; whereas the expressiveness axiological reevaluations built on pragmatic-
209
economic reasons are no longer socially social-economic activities are only providing
justified. an open perspective regarding scientific
Moreover, we consider that the social knowledge. Moreover, a critical analysis of
dimension of economic reality must involve the economic process it is found at Nichola
methodological activities, through which a Georgescu-Roegen as well, in the work The
series of interpersonally consistent Entropy Law and the Economic Process
networking is highlighted. It is about where it is stated that the economic law is the
removing the barriers to most economical of the natural laws
communication. Therefore, at social level, we (Georgescu-Roengem, 1979). In other words,
think that is justified the idea of within a social system, a broadened
“communication science”. As a result, knowledge horizon may provide alternatives
communicational phenomena relate on the to the typical environmental problems where
one hand to the axiological principles and on they occur. Therefore, the development of
the other hand to pragmatic eligibility criteria. social processes involves in terms of society
The social norms of the actors the acceptance of a value system.
involved in this approach of economic The communication process cannot be
analysis relate to methodological practice approached only in terms of transmission and
(Segerstrale, 2000), which has a remarkable reception of messages, but it also implies
axiological weight on the social system in certain meanings in terms of managerial
general. The dynamics of such an approach decision-making. In this respect, we can state
requires effective implementation of that the objectives of managerial
improvements in terms of economics. In this communication may relate to (Voicu and
way, educational practice is a set of Rusu) the correct and in time informing of the
educational purposes designed to justify the employees, opinion forming concerning
role of information recovery within the different events, discussing and passing them
training-development activity. Therefore, we on to the concerned ones, direct, immediate
have to deal in this situation with a and unaltered circulation of the ideas,
spontaneous education as well through which proposals and grievances, decision-making
the skills specific to communication process and their transmission, the assessment of the
must generate professionalism and obtained performance. The most commonly
performance. form of communication used in management
A new paradigm promoted within a is verbal communication, which can occur in
social system illustrates theoretical and more detail, but is complemented by each of
practical aspects through which the assumed the other two types of communication, i.e. by
strategies require axiological the oral one through which the bureaucratic
reassessment. We are considering in this character of the written communication is
context the idea of paradigm. Even if removed, establishing in the same time
identifying a paradigm does not also involve personalized relationships, especially through
identifying those common rules (Kuhn, behavioral communication that can be
1976), we must take into account the specific successfully operated in managerial
form of knowledge management, and thus relationships.
economic management closely connected
with other disciplinary dimensions. It is clear Decision-making methods in terms of
that the instrumental value of the economic interdisciplinary approach
and social act refers to approaches and
understanding specific to a particular form of Taken as such, this interdisciplinary
knowledge, i.e. the scientific knowledge. In perspective refers to the operationalization
this way, as dynamic structure, the economic process of the assumed social skills. The
reality reveals a typology specific to the contextual dimension of economic reality
economic theory where the critical theory is requires a relating of the actors engaged in the
at the heart of economic analysis (Bejinariu, instructional approach to a practical thinking
2010). Also, by a cause-effect chain, the designed to build effectively the
210
methodological strategies. Moreover, at (a) to formulate the statement that has

operational level, the economic performance as a premise the increasing of the interest rate
level is directly proportional to both the assumption and to symbolize this statement;
initiated strategies and the obtained scientific (b) to formulate an equivalent
results. Such an assumption justifies precisely statement that has as a premise the fact that
the necessity of relating the economic reality the price does not decrease and to symbolize
to the new learning technologies. In this that statement;
regard, the key methods of applying a (c) to formulate the statement, which
methodological management are directed on is equivalent to the statement from (a) and
social innovation. Thus, we are considering (b), to symbolize the new obtained statement
new forms of economic reality as well, and to evaluate the matrix and then the
through which the strategies applied in the statement.
instructional process require methodological
interpretations following scientific analysis. Solution:
We refer particularly to the correspondence (a) – statement formulation: “If the interest
relationship that we suggest from among the rate increases, then the price decreases.”
economic paradigms and the decision-making – statement symbolization: p  q,
methods within the management activity. where:
Moreover, such an approach requires p – “the interest rate increases”;
an organization of the decision-making q – “the price decreases”.
process in terms of society, so that the (b) – the equivalent statement formulation:
involved people are given the opportunity to “If the price does not decreases, then the
become acquainted with the new assumed interest rate does not increases.”
paradigm. However, a beneficial aspect is – the equivalent statement
given precisely by the transfer of the concept symbolization: q  p ,
from a particular area to another. There where:
should be stressed the fact that the
interdisciplinary perspective emphasizes a p – “the rate interest does not
previous knowledge having certain degrees of increase”;
knowledge. However, in an interdisciplinary q – ,,the price does not decrease”.
approach of socio-human (social) sciences (c) – the new statement formulation: “If and
there are visible: (i) a degree of application – only if the interest rate increases, then
certain arguments from philosophy belonging the price decreases, then, if the price
to some thinkers can be checked through does not decrease, then the rate interest
formalization; (ii) an epistemological level – does not increase.”
the transfer of the formal (formalized) logic to – the new statement symbolization:
economy generates analyses in the economic (p  q)  ( q  p )
epistemology; (iii) new disciplines generator
– the matrix evaluation of the new
degree (the transfer of sociology-specific
statement
methods to economy, creating new
disciplines, namely, socioeconomy).
Next, we will provide an example of (p  q)  (q  p )
interdisciplinary application (an application of 1 0 0 1 1 0 0
logic in economy), through which an 0 1 1 1 0 1 1
economic statement can be logically 1 1 1 1 0 1 0
evaluated. 0 1 0 1 1 1 1
D
If it is given the formula C = where where: 1 – true, 0 – false.
d'
C is the currency (the price) and D is the
income and d' is the interest rate, then it is We remark that ultimately are obtained
requested: true values, which means that the two
statements are equivalent, i.e. the final
211
propositional formula (p  q)  ( q  p ) is All this information represents the

valid (feasible). main link in order to make an appropriate and
Therefore, an interdisciplinary realistic decision at the level of company,
approach on socio-human (social) disciplines decision that will become a prime element of
requires an understanding that focuses on a the management process, characterized by a
specific functionality of overall accumulated bond and a shift constituent from thinking to
knowledge, that finds it applicability at a proper action. In other words, the quality of
particular level (the level of a the decisions depends on the dynamics of the
discipline). Interdisciplinary correspondence company’s management, having positive or
is done through an optimization process negative consequences on the financial
through which the conceptual-theoretical plan. Under these circumstances, the decision
links must find its true formative-educational is the motor of the whole organizational
character. Of course, this situation should activity, the company’s resources being
express a reserved attitude regarding the coordinated both in time and in space, taking
conceptual transfer. In other words, the into account an accurate assessment of goals,
wealth the conceptual-theoretical transfer whereas the occurrence of eventual errors can
offers, should not be identical to a (“rich”) lead to wastage of important resources of
generalization regarding the use of that whatever kind.
transfer. For example, it has become a
“fashion” to apply interdisciplinary Conclusions
terminology in certain areas of scientific
research without taking into account the An economic model relates to the
intension and the extension of the terms social structure whose architectonic is
specific to such an approach. In this sense, we generated by the use of some strategies
support the idea of the necessity of a teaching undertaken by the social actors. It is about a
epistemology to the extent that the communication network (Burciu, 2008)
complementarity between synthesis and the where the understanding of social paradigms
used method becomes effective in a specific in terms of economic reality requires the
scientific approach (Auger, 1999). approach of the organizational levels in terms
It is obvious in this context the fact of information content. Thus, significant are
that the raised methodological issue illustrates the eligibility criteria through which
a social correlation between a scientific interdisciplinary methodology is applied at
paradigm and the economic reality where it the level of economic reality. The reference
occurs. Thus, the benefit of such openings is we made in this process was especially
that social actors engaged in this process pragmatic, designed to support a particular
subordinate to a form of scientific social structure. Therefore, the quality of a
conventionalism tacitly accepted. In this way, social system depends largely on how the
the importance of applying the main strategies application of some methodological strategies
undertaken at social level reveals an is understood by the social actors in terms of
economic reality in deep transformation and economic reality.
that allows scientific openness. Moreover,
social responsibilities assumed at scientific Endnotes
level require methodological approaches,
[1] Edward T. Hall is known in special literature
which are reflected by the conceptual-
as the one who founded proxemics (according
theoretical explanations designed to to which research focuses on the role of the
legitimize to a certain extent the assumptions space as an element of interaction is the
related to pragmatic economic communication process).
reality. Consequently, the freedom of
expression should have an important role in
scientific knowledge, supported otherwise in
an economic reality.
212
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cercetării ştiinţifice”, în Ştiinţă şi sinteză (Prefaţă
de Stelian Popescu), Editura Politică, Bucureşti,
1969, p. 264.
[2] Bejinariu, Corvin, Dimensiunea economică a
,,Teoriei critice” a societăţii, Editura
Universităţii, Suceava, 2010, p. 13.
[3] Burciu, Aurel, ,,Comunicarea managerială”, în
Aurel Burciu (coordonator), Introducere în
management, Editura Economică, Bucureşti,
2008, p. 503.
[4] Georgescu-Roengen, Nicholas, Legea entropiei şi
procesul economic, Editura Politică, Bucureşti,
pp. 252-293.
[5] Pârvu, Ilie Filosofia Comunicării, Facultatea de
Comunicare şi Relaţii Publice ,,David Ogilvy”,
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[6] Habermas, Jürgen., Cunoaştere şi comunicare,
Editura Politică, Bucureşti, 1983, p. 441.
[7] Kuhn, Thomas, , Structura revoluţiilor ştiinţifice,
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[8] Pleter Thor, Octavian, Administrarea Afacerilor,
Cartea universitară, Bucureşti, 2005, p. 56.
[9] Popper, Karl, Mitul contextului, Editura Trei,
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[10] Segerstrale, Ulrica, Defenders of the truth,
Oxford, University Press, 2000, p. 224.
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manageriale, Editura Danubius, Brăila, 1998,
p.131.
213
METHODS FOR THE EMPLOYEES’ PERFORMANCE EVALUATION
Sebastian Adrian Uriesi, PhD Student

Faculty of Economics and Business Administration,
“Al.I.Cuza” University, Iasi, Romania
E-mail address: md.personal@yahoo.com
Abstract: Employee’s performance has the same landmark as the employee’s motivation, namely the employee’s
behaviour. Thereby, a definition of this concept might be (Campbell, 1990): “the employee’s performance represents
the behaviours which are relevant the company’s purposes and which can be measured by taking into consideration the
subject’s contribution to these purposes.” Therefore, the essential element in evaluating behaviours in terms of
performance is the distance between them and the standard enforced by the organisation in this matter.
Keywords: performance, motivation, evaluation, methods, employees, programmes.
Clasificare JEL: J,L.

lower level of performance, there are four
Introduction possible causes. (According to Muchinski,
2000):
Employee’s performance has the a) too high organizational standards – it is
same landmark as the employee’s motivation, possible that within another organization,
namely the employee’s behaviour. Thereby, a the same behavior would be considered
definition of this concept might be (Campbell, efficient;
1990): “the employee’s performance b) lack of the subjects’ personal abilities,
represents the behaviours which are relevant necessary for the successful result of the
the company’s purposes and which can be necessary behavior;
measured by taking into consideration the c) insufficient motivation of the subjects in
subject’s contribution to these purposes.” order to show the required behavior;
Therefore, the essential element in evaluating d) lack of equipments or opportunities
behaviours in terms of performance is the necessary in order to develop the behavior
distance between them and the standard required by the standards.
enforced by the organisation in this matter. Once the performance criterion has
The relationship between motivation been identified, an evaluating instrument
and performance is one of determination: high needs to be created for individual
levels of motivation produce, at least in performances. Organizations have used
theory, high levels of performance. various recording techniques for performance
Nevertheless, this is not a relationship of evaluation throughout the years. Method
absolute causality, because in every selection is a very important aspect, since it
organisational context there are two other may have an impact both on the evaluation
important factors, namely: accuracy and on the employees’ satisfaction
- the subjects’ ability – their capacity to degree. Moreover, there are research works
develop their tasks; that have shown that even the evaluator’s
- situational constrains, that is the characteristics may have influence the
opportunities provided by the organisation in performance evaluation (Hartel, 1993).
order to complete this tasks. Research in the field underline the
Therefore, both motivation and importance that an appropriate construction of
abilities and actual conditions determine the performance evaluating methods has for the
employees’ performance. High levels of success of its stimulating programmes by
performance can be met when every one of financial means. At this point, we may
the three factors is present at a high level – mention two essential recommendations
the individuals have the necessary abilities, resulting from the study completed by
they are fully motivated and the work Kauhanen and Piekkola (2006) on the
environment helps them manifest those population of Finnish clerks. First of all, the
behaviours. On the other side, in case of a efficiency of the performance financial
remuneration programmes is increased if their Paired comparisons is a method by

assessment is placed on a level that is closest means of which the supervisor compares each
to the employee; in other words, the employee to all the others, making all the
individual level, or the team level, at most, is possible pairs of two employees, and
preferable to the department level of the level identifying the best employee in every pair,
of the entire organization. Secondly, the whether based on separate dimensions, or
employees must know the details of the based on the professional efficiency as a
criteria and the methods based on which their whole. Despite the fact that this method is
performances are to be evaluated. precise and efficient in practice, its use may
We are hereby going to briefly become difficult if the assessed group exceeds
present the most frequently used general 50 employees, since there will be a number of
methods for the employees’ performance 1225 pairs.
evaluation. Forced distribution - If the number of
the assessed employees is very big, and there
Comparative methods is no claim of a highly accurate evaluation, a
coarse distribution may be achieved by means
Comparative methods refer to an of the forced distribution method. The
employee’s performance as being connected evaluator distributes the assessed employees
to the other people’s performance. These based on the Gaussian curve, including each
methods, which require hierarchies, paired subject in a class, according to previously
comparisons or forced distribution, are more established percentages. Usually, the curve is
easily applicable than other approaches. distributed in 5 proportional categories, as
The hierarchy ranking method follows: 10% very good, 20% good, 40%
requires the supervisor’s ordering the medium, 20% poor, 10% very poor. At first,
employees within a hierarchy, from the best the evaluator distributes the subjects to the
to the poorest, according to a particular very poor class, followed by the class of the
dimension, such as productivity or good ones and the class of the poor, while
performance in general. Good and bad those who remain undistributed are construed
employees may be easily identified in a as moderate.
ranking of this kind; moreover, this method Although the paired comparisons and
has an increased degree of fidelity among the forced distribution, as well as the method
evaluators, and it is easy to use. of the hierarchical ranking are easy to use,
The major problem of this method is they all have the same problem related to the
the fact that it does not provide an actual criterion. – they do no provide indications on
performance evaluation. For instance, a the fact that an individual’s performance is
telephone operator may process 20 calls per superior or unacceptable. All the assessed
hour, while a second operator will process 10 employees may be remarkable or
calls, and the third operator 5. A hierarchical unsatisfactory, the only certain piece of
order cannot provide an increased degree of information being that some of them are
subjects’ differentiation. On the other, 20 better or worse than others. The comparison
calls per hour may reflect the poorest of some people’s position to others’ does not
performance of another group in another provide information on the performance level
department. itself. This is why there are some performance
Another problem referring to this evaluation specialists who do not approve of
method is that it is difficult to apply on a big this category of methods, and therefore they
number of employees, and the hierarchical are not very much used.
order does not provide information on the
monitored criteria. The best operator may just Attribute lists
as well be superior or inferior to a particular
criterion. The hierarchical order may certainly The lists of attributes are the lists of
tell the supervisor only if some employees are those particular features of behaviours that the
better than others. supervisor checks as relevant for the
215
employees’ performance. These methods are creation of the four relevant and plausible
easy to elaborate and use, although their main performance descriptors is costly and time-
disadvantage is that they are focused on the consuming. Secondly, supervisors are not
“all or nothing” evaluation criterion; for very receptive in using evaluation forms when
example, the employees are evaluated as they do not know the results. Therefore, the
cooperating whether all the time, or not at all. forced-choice attribute lists are scarcely
Another disadvantage regarding the simple outspread.
lists of attributes refers to the fact that all the
behaviours or features that are relevant for the Evaluation scales
job are construed as equally important or, in
fact, as far as many jobs are concerned, tasks Evaluation scales allow the
have different importance level. employees’ performance to be evaluated
In order to overcome this issue, throughout a continuum that varies from
certain mixed lists of attributes have been “always” to “never”. This evaluation format
created, a set of discriminating lists as far as provides more accuracy to individual
the importance of various tasks are performance than the hierarchical ordering or
concerned. When certain aspects of job the lists of attributes.
performance are more important than others, Graphic scales, which were
various scores are awarded for each task. introduced in 1922, represent the first
Ideally, this method provides important data quantitative evaluation technique of
for both the evaluator, and the evaluated performance. These scales use a feature
person, the latter being aware of the value that description throughout a continuum that the
different tasks have, and may therefore employee is evaluated upon. For instance,
appropriately direct their efforts. employees may be evaluated as “extremely
An important issue raised by such lists reliable”, “very reliable”, “reliable”,
is the evaluator’s tendency towards “occasionally reliable”, and “unreliable”. The
indulgence or strictness. Since supervisors are manager checks the level that corresponds to
aware of the fact that they positively or the employee within this continuum.
negatively evaluate an employee, this type of Graphic scales are easy to create and
knowledge may interfere with the accuracy of use, but a correct application requires a
the evaluation. profound understanding of what the described
The forced-choice attribute lists have behaviour means. For example, supervisors
been created precisely in order to eliminate may have problems in making the difference
this disadvantage. According to the lists in between the “reliable” performance and the
this format, supervisors are presented groups “extremely reliable” one, unless these terms
of four sentences referring to various aspects are sufficiently operationalized.
of job performance. Two of them are positive, Mixed standard scales have been
and two negative. Only one of the positive elaborated by Blanz and Ghiselli (1972)
sentences is relevant to the performance, precisely in order to reduce the halo and
while only one negative sentence is relevant indulgence errors in performance evaluation.
to an unacceptable performance. Considering The reason beyond this method is the fact that
the fact that the evaluator cannot identify the the evaluation will be more accurate if the
positive connotation of the sentence at first evaluator has access to behavioral description
glance, there is a reduced risk of errors. at various levels. Three critical incidents on
Moreover, evaluators are not allowed to score “good”, “medium” and “poor” performance
the evaluation instrument, since this operation are summarized in this format, on an
is performed by others. evaluation scale taking the forms of
Although the forced-choice attribute statements. These statements are randomly
lists seem to control indulgence, there are, arranged, and it is therefore difficult for the
however, two obvious disadvantages. First of evaluator to identify the valence of the
all, the elaboration of such a scale requires the statement. Evaluators write “+” when the
assistance of trained professionals, and the employee’s performance is superior to the
216
standard, “-” when the performance reflects weaknesses, the fields where improvement is
the bottom level of the standard, and “0” required, the potential purposes that may be
when it is equal to the standard. set for that employee, as well as other
Although a mixed standard scale qualities. A special advantage of this
seems to control biases, it still raises evaluation method is the provided opportunity
questions on fidelity. Moreover, this scale has to identify certain performance aspects, which
the disadvantage of being difficult to use, and may be “overlooked” when other evaluation
with a time-consuming elaboration. methods are applied.
Another evaluation instrument, which The critical incident method
has become quite popular in the last years, is represents another narrative approach of
the behaviorally anchored rating scale, performance evaluation. In this case,
introduced by Smith and Kendall (1963). This supervisors make an inventory of each
scale includes paragraphs describing working employee’s negative and positive behaviours,
behaviours that are considered “excellent”, with the advantage that this method is based
“good”, “poor”, etc. Thus the supervisor has on real behaviours, not on the inferred
concrete examples by means of which an behaviours of the evaluated people.
evaluative assessment of working behaviours Nevertheless, the disadvantage of the
may be achieved, which, most of the time, narrative methods is usually the fact that they
increases the precision (accuracy) of the are rather expensive and time-consuming,
evaluation. without necessarily bringing a significant plus
A method that is based on this to the accuracy of the completed evaluations.
behaviorally anchored rating scale is the
behavioral observation scale; in its first stage, Management by objectives
the evaluator collects information about
critical incidents and uses these data in order This employee evaluation approach
to elaborate categories of tasks implied by was developed by Peter Drucker in 1950’s,
that job. Unlike the previous type of scale, the and it is widely applied in organizations
behavioral observation scale uses a nowadays. In the case of an evaluation system
continuum to measure the occurring based on objectives, the manager identifies
frequency of those behaviours in the case of about seven or eight specific results that an
the evaluated employee, based on several employee should achieve within a particular
reference points such as “never”, “very time interval. The manager may also support
often”, etc. the employee in planning the necessary steps
for the achievement of these objectives; in
Narrative methods other cases, this planning may be left entirely
at the employee’s free will. Moreover, the
Although the current tendency in objectives are generally established after the
human resources management encourages the employees have been consulted; this is why
use of quantitative systems for performance this approach is very successful in
evaluation, the narrative methods are still organizations with participative management.
intensely used, especially for the evaluation The advantage of the management by
of employees with managing responsibilities. objectives is the fact that employees clearly
This is due to the fact that the narrative know what is expected from them before the
methods have a superior applicability evaluation period. It is also a more flexible
especially in the case of complex and approach compared to others, since its
unstructured working tasks, or when the particular implementation means may be
development of quantitative reference points developed, modified or adapted much more
does not seem to be justified. rapidly.
One of the classical methods A disadvantage of this approach is the
belonging to the narrative category is the fact that it implies a rather “narrow” focus, on
evaluation essay method, when the evaluator precise objectives, excluding other aspects of
describes the employee’s strong points and the activity, which may be important as far as
217
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219
INVESTIŢIA STRĂINĂ DIRECTĂ ÎN ROMÂNIA SUB IMPACTUL CRIZEI

FINANCIARE ACTUALE
Lect.univ.dr. Lucreţia Mariana Constantinescu

Facultatea de Ştiinţe Economice, Univ.Valahia din Târgovişte, România
maraluconstantinescu@yahoo.com
Abstract: After accession to European Union, the business attractiveness index of Romanian economy has increased
from -59% in 2005 to 66% in 2008 and Romania was considered among the most attractive economies from the
Central and Eastern Europe, next to Russia, where the economic attractiveness index increased from 63 procents in
2007 to 72 procents in 2008 and Ukraine that registred an increase of the same index from 56 procents in 2007 to 67
procents in 2008 . This work aims to demonstrate the causal link between the Romanian economic attractiveness –
governance – foreign direct investment contribution of Romania to Romanian export in active processing under the
impact effects generated by the current international financial crisis.
Keywords: competitiveness, foreign direct investment, governance, macroeconomic policies
JEL Classification: D53, D58, E60, M21, R38
Introducere  Creditul net: creditele primite de

către întreprinderea investiţie străină
Potrivit teoriei eclectice a lui John directă de la investitorul străin direct
Dunning, investiţia străină directă sau din cadrul grupului de firme
reprezintă un fenomen complex ce se poate nerezidente din care face parte acesta,
explica printr-un “cumul de motivaţii” care mai puţin creditele acordate de către
vizează avantaje specifice pentru ţara gazdă, întreprinderea investiţie străină directă
avantaje specifice pentru proprietarul investitorului străin direct sau unei alte
întreprinderii investitoare şi capacitatea firme din cadrul grupului respectiv de
acestuia de a-şi internaliza aceste firme.
avantaje[1]. Tipurile investiţiilor străine directe
În noul context al participării (diferenţiate după contribuţia fluxului de
României la Piaţa Unică Europeană ca participaţii străine la capital în întreprinderile
membră UE şi sub impactul accentuării investiţie străină directă) care se pot realiza in
procesului de globalizare a fost necesar ca, România :
după anul 1990, să fie promulgat un nou  Greenfield: înfiinţarea de
cadru legislativ privind investiţiile străine, întreprinderi de către sau
adaptat Directivelor şi reglementărilor din împreună cu investitori străini
spaţiul comunitar dar şi standardelor (investiţii pornite de la zero);
internaţionale ale OCDE.  Fuziuni şi achiziţii :preluarea
Componentele investiţiilor străine integrală /parţială de
directe: întreprinderi de către
 Capitaluri proprii: capitalul social investitori străini de la
subscris şi vărsat, atât în numerar cât rezidenţi;
şi prin contribuţii în natură, deţinut de  Dezvoltare de întreprinderi
nerezidenţi în companii rezidente, prin majorarea deţinerilor de
precum şi cota aferentă din rezerve; în capital ale investitorilor străini
mod corespunzător, în cazul în întreprinderile investiţie
sucursalelor, se ia în considerare străină directă .
capitalul de dotare aflat la dispoziţia Pe de altă parte ISD sunt componenta
acestora. cea mai volatilă a PIB atunci când exportul de
bunuri şi servicii trece printr-o perioadă de
220
recesiune şi acest declin este, de obicei, de ţara noastră pentru stimularea atragerii
datorat unor scăderi a cheltuielilor pentru investiţiilor straine directe.
investiţii. Desi, mult mai puţin volatile decât Avantaje oferite de economia
investiţiile naţionale, ISD răspund la mult mai românească[5] :
multe determinante decât investiţiile  poziţia geografică strategică a
naţionale [5]. României, la intersecţia a trei
Iminenta integrare a statelor din estul viitoare rute de transport europene
şi centrul Europei alături de cele vest (coridoarele - 7 -9) care permite
europene în UE, stimulată de interese accesul către ţările din fosta URSS,
strategice ale ambelor părţi, impune atât o din Balcani, Orientul Mijlociu,
extindere a cooperării internaţionale cu toate Africa de Nord;
statele lumii si, mai ales, cu cele dezvoltate,  resurse naturale bogate, incluzând
cât, şi o accelerare a atragerii de investiţii. Un terenuri agricole fertile, petrol si gaze
interes al investitorilor străini este sustinut, în naturale, precum şi un important
principal, de dorinţa de penetrare pe pieţele potenţial turistic;
diferitelor state pentru extinderea cuplurilor  accesul la una dintre cele mai mari
“produs-pieţe” dar şi de posibilitatea obţinerii pieţe din Europa Centrală si de Est;
unor gazdă. Accesul la pieţe este esenţial  asigurarea unui tratament egal si
pentru investitorii straini, chiar şi pentru cei nediscriminatoriu pentru toţi
strategici, care vizează obiective pe termen investitorii români şi străini;
lung privind expansiunea pieţei  forţă de muncă de înaltă calificare la
produselor/serviciilor oferite de ei, după cum, preţuri competitive faţă de Europa
şi construcţia unor reţele de distribuţie cu Centrală si de Est si implicit Europa
efecte sinergice clare pentru ei. Bineînţeles de Vest. Salariatul român are o bună
nici avantajele costurilor reduse din zona capacitate de a se adapta la nou si de
statelor primitoare de ISD nu sunt deloc de a depăsi pragului cultural si
neglijat.Chiar o serie de investitori văd în lingvistic;
aceasta o componentă esenţială a propriilor  creştere economică susţinută
lor strategii de dezvoltare a companiilor. începând cu anul 2002 (fig.no1
Costul redus al forţei de muncă ca şi cel al &fig.no.2);
resurselor materiale este deosebit de atractiv.  România va beneficia de fonduri
Nu trebuie omis faptul că majoritatea firmelor structurale postaderare în valoare de
străine investitoare sunt orientate spre export 33 miliarde de euro, iar
şi mai puţin pe satisfacerea pieţelor interne H.G.R.no.753/2008 prevede
ale statelor primitoare, atunci, când acestea nu instituirea unei scheme de ajutor de
au perspective de creştere considerabilă a stat pentru dezvoltarea regională prin
cererii lor interne de mărfuri. stimularea realizării de ISD.
I. Atractivitatea economiei României
Considerand România o posibilă locaţie
pentru dezvoltarea afacerilor lor, investitorii
străini privesc îndeaproape avantajele oferite
Fig. No.1 Ritmul de creştere economică Fig.no.2.PIB România între2002-2007
al României între anii 1999-2008
Sursa:Anuar Statistic al
României, 2008
221
Calitatea de membru NATO şi membru UE aproape 3,5ori mai mare decât cea din
reprezintă un factor de stabilitate din punct de perioada 1991-2002, când România a atras în
vedere geostrategic, care conferă un sentiment total 8,5 miliarde EURO, ceea ce echivalează
puternic de siguranţă pentru investitorii străini cu o medie anuală a ISD de 708 milioane
În anul 2008 între ţările UE ,România a avut EURO.[6]. Centrul European pentru
cel mai ridicat ritm de creştere economică Cercetare Economică din Germania a publicat
după Republica Cehă. În anii de după în anul 2008 o statistică care evidenţiază că,
aderarea la NATO, România a atras investiţii România este considerată cea mai atractivă
străine în valoare totală de 28,1 miliarde ţară din Europa Centrală si de Est pentru
EURO cu o medie de 5,6 miliarde EURO/an. investitoriistrăini, depăşind state precum
Valoarea investiţiilor străine a fost de Polonia, Cehia si Ungaria (Fig no.3)
Fig.no.3. Cele mai atractive state exsocialiste din UE pentru investitorii străini
Sursa : Ziarul Financiar din 1.04.2008
Intrările nete de ISD în anul 2007 au urmare şi profitul reinvestit de către

înregistrat un nivel de 7250 milioane EURO acestea;
şi sunt structurate astfe[5]:  Creditul net primit de către
 Participaţiile investitorilor străini întreprinderile investiţie directă de la
direcţi la capitalul social al investitorii străini direcţi inclusiv
întreprinderilor investiţie directă din din cadrul grupului, în sumă de 3703
România în valoare de 2220 milioane milioane EURO, ceea cereprezintă
EURO (31% din fluxul net de ISD). 51% din fluxul net al ISD.
Din această sumă, 80 milioane
EURO constituie aportul în natură, 2.1. Soldul ISD la sfârşitul anului 2007
ceea ce reprezintă 1,1% din total
flux net; Cercetarea statistică realizata de
 Profitul net reinvestit care a Banca Naţională a României în colaborare cu
înregistrat un nivel de 1327 milioane Institutul Naţional de Statistică în anul 2008
EURO (18% din fluxul net). În a evidenţiat următoarele:
determinarea acestuia a fost luată în  Soldul ISD la finele anului 2007 a
considerare şi pierderea netă în înregistrat nivelul de 42.770 milioane
valoare de 2292 milioane EURO, EURO şi cuprinde şi diferenţele
înregistrată de întreprinderile valorice provenite din reevaluări
investiţie directă care au încheiat datorate modificării cursului valutar
exerciţiul financiar 2007 cu pierderi, şi al preţurilor, precum şi din retratări
sumă cu care a fost diminuat profitul contabile (fig.no.4) :
net realizat de către întreprinderile
investiţie directă profitabile şi prin
222
Fig.no.4. Soldul ISD în perioada 2003 – 2007
Sursa :Banca Naţională a României, raport 2008

* credite nete de la investitorii străini direcţi
 Participaţiile la capitalul social şi de transport (3,6%) şi ciment, sticlă,
profiturile reinvestite ale ceramice -3,5% (fig.no.6)/[6].
întreprinderilor investiţie directă erau Activităţile care au atras ,de asemenea,
la sfârşitul anului 2007 de 31.501 importante ISD sunt intermedierile financiare
milioane EURO (74% din soldul final şi asigurările, care cuprind activitatea bancară
al ISD), iar creditul net total primit şi de asigurări şi reprezintă 23,3% din totalul
de către acestea de la investitorii ISD, comerţul cu amănuntul şi cu ridicata
străini direcţi, inclusiv din cadrul (14%), construcţii şi tranzacţii imobiliare
grupului, a înregistrat nivelul de (7,8%), telecomunicaţiile (6,5%) precum şi
11.269 milioane EURO (26% din serviciile prestate întreprinderilor (4,5%). Se
soldul final al ISD). Creditul net observă o pondere încă redusă, faţă de
cuprinde atât creditele pe termen potenţial, a unor domenii cum ar fi industria
mediu şi lung cât şi pe cele pe termen textilă, a confecţiilor şi pielăriei (1,7%),
scurt acordate de către investitorii precum şi pentru industria de hotelărie şi
străini întreprinderilor lor din restaurante (0,6% din total ISD)[6].
România, atât direct cât şi prin
intermediul altor firme nerezidente 2.3. Repartizarea ISD pe cele saşe regiuni
membre ale grupului[5]. de dezvoltare ale României
Din punct de vedere al orientării investitorilor
străini spre ramuri economice (conform Din punct de vedere teritorial se
CAEN Rev.1), ISD s-a localizat cu precădere observă orientarea cu precădere a ISD spre
în industria prelucrătoare (32,9% din total), zonele Bucureşti-Ilfov (64,3%), alte regiuni
dintre cele mai atractive pentru ISD fiind de dezvoltare beneficiare de importante ISD
metalurgia (7,5%), industria alimentară fiind: CENTRU ŢĂRII (8,3%), SUD (6,9%),
(3/8%), a băuturilor şi tutunului (5,2%), SUD-EST (5,7%), VEST (5,5%), NORD-
prelucrare ţiţei, produse chimice, cauciuc şi VEST (4,5%), SUD-VEST (3,2%) şi NORD-
mase plastice (4,4%), industria mijloacelor EST (1,6%) [fig.no.5], iar în tab.no. 1
prezentăm repartiţia ISD după ţara de origine.
Fig.no.5 Repartizarea ISD pe regiuni de dezvoltare în România la 31decmbrie 2007

Sursa: Banca Naţională a României raport pe anul 2008
223
Repartiţia ISD pe ţări de origine Tab.no.1
Fig. no.6. Repartizarea ISD pe ramuri de activitate la 31.12.200

Sursa: Banca Naţională şi Institutul Naţional de Statistică ale României ,raport 2008
În 2007 veniturile realizate din ISD au fost de30% în total venituri şi au înregistrat o
de 4350milioane EURO dintre care 94% sunt scădere cu 5,0% faţă de anul 2006.(fig.no.6)
veniturile din participaţii la capital structurate Volumul exporturilor realizate de
în dividende repartizate şi profituri reinvestite, întreprinderile ISD din România în regim de
în cadrul exerciţiului financiar 2007. procesare activă pentru anul 2007 este redat
Profiturile reinvestite în valoare de 1327 în tab.no.2&fig.no.8.
milioane EURO corespund unei ponderi
Tab.no.2 Volumul exporturilor si al importurilor realizate de firme cu capital străin

din România în anul 2007
milioane euro
Exporturi (FOB) Importuri (CIF)
Întreprinderi % din Întreprinderi % din
ISD total ISD total
ramură ramură
Total, din care: 20563 70,8 29675 59,2
224
Industrie, din care: 18273 77,5 18111 78,2
Industria prelucrătoare 17349 77,2 17252 78,2
Comerţ cu amănuntul şi 1876 62,7 9646 47,7
cu ridicata
Alte activităţi 414 16,8 1918 28,5
Sursa:BNR&INS,2008
T ot al ,
di n
30000
car e:
25000
I ndust r i
e, di n
20000 car e:
15000 I ndust r i
a
pr el ucr ă
10000 t oar e
C o me r ţ
5000
cu
a m ăn u n t
u l şi c u
0
r i di cat a
Întreprinderi investiţie străină directă Întreprinderi investiţie străină directă
Alte
a c t i v i t ăţ
i
Fig.no.7 Întreprinderi ISD din România participante la export în regim de procesare activă
Sursa :BNR &INS,raport pe 2008
Total, din
80 care:
70
Industrie,
60 din care:
50
Industria
40 prelucrătoar
e
30
Comerţ cu
20 amănuntul
şi cu
ridicata
10
Alte
0 activităţi
% din total ramură % din total ramură
Fig.no.8.Ponderea ISD în total export al României în anul2007

Sursa: Raport Banca Naţională a României &Institutul Naţional de Statistică, 2008
4. ISD din România sub efectul crizei 2008 , anul în care criza financiară s-a resimţit
financiare internaţionale pe plan internaţional, este una dintre cele mai
atractive destinaţii la nivel regional pentru
Evoluţia ISD atrase în economia României plasarea capitalului străin(tab.no3& tab.no.4).
confirmă încă o data că ţara noastră si în
Investitii Straine Directe (milioane EURO) Tabel no.3
2008 Ian Feb Mar Apr Mai Iun Iul Aug Sep Oct Nov Dec
Stoc 663 1138 1588 3058 3986 4758 5682 6436 6985 7939 8431 9024
Flux lunar 663 475 450 1470 928 772 924 754 549 954 492 593
2007 Ian Feb Mar Apr Mai Iun Iul Aug Sep Oct Nov Dec
Stoc 517 1106 1890 2242 2826 3550 4411 4881 5896 6687 7070 7250
Flux lunar 517 589 784 352 584 724 861 470 1015 791 383 180
225
Sursa: Banca Naţională a României-Balanţa de plăţi pe2007şi 2008

Previziunile Băncii Naţionale apreciază că în nivel mondial va marca un declin mult mai
anul 2009 ISD vor ajunge la 4,5-5miliarde accentuat faţă de anii anteriori , dupa cum
euro, la jumătatea nivelului consemnat în declară directorul ARIS[5].
2008 , în condiţiile în care valoarea ISD la
Numarul companiilor cu participare straină la capital Tabel no.2

Ian Feb Mar Apr Mai Iun Iul Aug Sep Oct Nov Dec TOTAL
2008 956 1280 1165 1106 1081 1085 1177 825 1047 977 817 748 12264
2007 1111 1282 1555 1199 1454 1413 1368 1272 1205 1411 1357 1155 15782
Sursa: Oficiul Registrului Comertului– Sinteza Statistica Nr. 128
ISD în aceasta perioadă de criză se UE încă din anul 1993 ,intrat în vigoare în
orienteaza totusi spre proiecte de tip februarie995,iar în iunie acelaşi an îşi
greenfiled către zonele din sud-estul depunea oficial candidatura pentru aderare la
României în judeţe precum UE . În 2002 România a fost acceptată de
Prahova,Buzău,Gorj,Giurgiu si zona Alianţa Nord Atlantică ca membru cu drepturi
Dobrogei ,după ce în ultimii ani au fost depline,iar în 2003 Senatul SUA a recunoscut
preferate zona de vest a ţării şi capitala economia României ca fiind funcţională ,iar
Bucureşti. la 1ianuarie2007 s-a integrat in UE.
La sfârşitul anului 2008 pentru Comparativ cu alte state ECE care au
băncile cu capital străin sau majoritar aderat la UE in 2004 si2007 ,România poseda
străin,inclusiv sucursalele băncilor străine din cateva avantaje notabile ,intre care putem
România poderea activelor a reprezentat remarca:
88,2% in timp ce ponderea băncilor cu capital  Singura ţară exsocialista care in
de stat majoritar sau integral a fost doar de decembrie 1989 si-a achitat datoria
5,2% .Primele trei poziţii pe piata autohtonă publică externă;
privind participarea la capitalul social al  A fost si a ramas singura ţară între
băncilor autohtone si al sucursalelor celor cele care au aderat la UE în primul
străine revine Greciei(22,4%),urmată de deceniu al sec al.XXI-lea ,care are un
Austria(18,4%) şi Olanda cu 9,2%. grad sporit de indepenţă energetică- in
Dacă în trim.IV 2008 economia a prezent este de 80% urmând ca până
continuat sa scadă cu 3,4% faţă de cel in 2012-2020 sa ajungă la peste100%,
anterior , în trim.I 2009 regresia economică ceea ce nu este caracteristic pentru
a continuat cu încă 2,6% – după cum majoritatea statelor Europei inclusiv
afirmă Mugur Isărescu,guvernatorul BNR cele din vestul continentului;
-datorită faptului că marile intrări de  Poartă de acces la Piaţa Unică
capital s-au încheiat pentru România [5]. Europeană ,o piaţă cu 500milioane
Pe primul semestru al anului 2009, locuitori ;
ISD s-au plasat la 1,456miliarde EURO ,în  Situată la intesectia celor mai
scădere cu 13,9%faţă de nivelul înregistrat în importante cai care leagă Europa de
aceeaşi perioadă în 2008 (1,690miliarde Asia si Africa putând fi inclusă în
EURO). Pentru trim.I 2009 , statisticile viitoarele cai energetica care vor lega
B.N.R. indică că ISD a fost în crestere cu Marea Caspică de UE .Aportul
38% faţă de aceeaşi perioadă a anului României la proiectul NABUCCO va
2008.[5] fi de 400-500miloane euro
Finanţele estimează pentru 2009 o
Concluzii contracţie economica de 4% si un deficit
bugetar de 4,6% din PIB, la un produs intern
România a fost una dintre primele brut estimat la 531,25 miliarde lei. În primele
state ale Europei Centrale si de Est (ECE)care trei luni ale acestui an, cursul mediu a fost de
univoc s-a orientat şi şi-a exprimat dorinţa de 4,2662 lei/euro.
aderare laUE semnând acordul de Asociere cu
226
Potrivit datelor EUROSTAT, Institutii crează posibilitatea de a suplini

România ocupă locul 10 în UE la scăderea scăderea finanţării private indusă finanţării
economică din primul trimestru al anului de criză cu finantarea oficială externă.
2009. Potrivit aceluiaşi birou european de Se crează condiţii pentru reformele
statistică, tara noastră va avea a cincea care vor atrage capitaluri private si care vor
contracţie economică din UE (de 6,4%), în contribui la reluarea creşterii economice
timp ce în zona euro , PIB s-a contractat cu sustenabile în ritmuri de creştere economică
4,9% susţin statisticile EUROSTAT. compatibile care să asigure României
Atractivitatea economiei românesti convergenţa reală cu Uniunea Europeană .
chiar în această perioadă de criză se mentine
destul de ridicată .După Indicele de
Competitivitate global , potrivit Raportului Referinţe bibliografice:
World Economic Forum ( pentru anii 2007-
2008) Romania se situeaza pe locul 32 între [1]. Neffati Mohamed, Constantinescu Lucreţia
ţările Euro-Mediteraneene, înaintea Mariana, Chebira Boualem, « Analyse
comparative de la compétitivité dans la zone euro-
Bulgariei, Siriei şi Algeriei situate pe méditerranéenne », Les Annales de l’université
ultimele locuri între cele 35 de ţări incluse în Valahia, Section Sciences Economiques,
raport [1&4]. XIVemme année, No.26/2009, Ed.Bibliotheca,
Suntem în consens cu părerile Târgovişte, pg.147-169.
exprimate de unii analişti financiari care [2]. Krugman Peter et Obstfeld M. « Économie
internationale » Ed.De Boeck, Paris, 2003
afirmă că, această criză financiară nu este [3]. Porter Michael ,The competitive Advantage of
un eşec al pieţelor, ci unul al politicilor Nations, Harvard Business Review, 1990
publice, care au distorsionat stimulentele la [4]. OCDE , « La compétitivité internationale des pays
care raspund comportamentele de l’OCDE :l’influence des économies de marché
microeconomice[1]. émergentes», Perspectives économiques de
l’OCDE no.63/2008
Guvernul a ajustat sectorul privat prin [5]. www.cepii.fr/francgraph/publications - CEPII, »La
încheierea acordurilor cu FMI si UE , care compétitivité des Nations », 1999
prevăd măsuri anti criză ce vor produce [6]. www.bnr.ro –publicaţii lunare si periodice –raport
efecte pozitive şi trebuie să-şi focuseze pe anul 2008 &raport pe semestru I/ 2009
acţiunile pe sporirea capacităţii de absorbţie a [7]. www.bnr.ro-Raport al cercetării statistice efectuate
de B.N.R. şi Institutul Naţional de Statistică al
fondurilor structurale europene , în timp ce României în trim.1/2008
,mix-ul politicilor macroeconomice şi [8]. *** Ziarul Financiar din 1aprilie 2008
finanţarea aferentă să asigure stabilitatea [9]. *** Ziarul Capital –colectie anul 2008 si semestrul
monedei naţionale. Acordurile cu cele două I, 2009.
227
INVESTIŢIILE STRĂINE DIRECTE – CREŞTERE ECONOMICĂ
Asist. univ. drd. Gabriela-Liliana CIOBAN

Universitatea “Ştefan cel Mare” Suceava, Romania
Facultatea de Ştiinţe Economice şi Administraţie Publică
gabrielac@seap.usv.ro
Drd. Costel-Ioan CIOBAN
Arhiepiscopia Sucevei şi Rădăuţilor, Suceava, Romania
Universitatea ”Al. Ioan Cuza” Iaşi, Romania
Şcoala Doctorală de Economie
costel.cioban@gmail.com
Rezumat
În lucrare, este dezvoltată ideea că ISD au un impact pozitiv asupra creşterii economice doar atunci, când statul
atrage ISD, ţinând cont de interesul naţional şi priorităţile dezvoltării ţării respective. Este scos în evidenţă impactul
investiţiilor străine directe asupra modernizării economiilor în tranziţie şi trecerii acestora la un tip superior al
specializării internaţionale.
Plecând de la importanţa ISD ca motor al dezvoltării economice al unui stat, prin contribuţia lor la creşterea
economică, efectelor pozitive asupra balanţei de plăţi, creării de noi locuri de muncă, creşterea veniturilor la bugetul
statutului, accesul la tehnologii moderne, etc., lucrarea de faţă îşi propune să evidenţieze legătura dintre ISD – creştere
economică şi beneficiile determinate de ISD atrase de România.
Contribuţia acestora la creşterea economică se realizează direct prin suplimentarea capitalului intern destinat
achiziţionării de active fixe, cât şi indirect, prin stimularea investiţiilor autohtone, contribuind, prin efecte de
antrenare, la dezvoltarea activităţilor productive.
De asemenea, ISD influenţează semnificativ nivelul de trai al populaţiei prin efectuarea de cercetări în nenumărate
domenii cu scopul de a obţine un nivel de cunoaştere tot mai înalt.
Nu trebuie uitat că la urma urmei o investiţie este făcută să aducă profit. Poate cel mai important efect al acestora este
încurajarea introducerii practicilor de afaceri concurenţiale într-un mediu instituţional funcţional şi transparent.
Pentru obţinerea unor rezultate cât mai corecte şi reale au fost utilizate informaţii şi date statistice furnizate de
Institutul Naţional de Statistică, Comisia Naţională de Prognoză, Oficiul Naţional al Registrului Comerţului şi Banca
Naţională a României.
Abstract
The paper is developed the idea that FDI have a positive impact on growth only if, when the state attract FDI, taking
into account national interests and priorities of developing country. It highlighted the impact of FDI on economies in
transition modernize and move them to a higher type of international specialization.
Considering the importance of FDI as an engine for economic development of a state, through their contribution to
economic growth, positive effects on balance of payments, creating new jobs, increase revenues to the budget status,
access to modern technologies, etc.., Work present aims to highlight the link between FDI - economic growth and
benefits of FDI attracted by Romania.
Their contribution to economic growth is driven directly by supplementing domestic capital for acquisition of fixed
assets, and indirectly, by stimulating domestic investment, contributing through effective training, development of
productive activities.
Also, FDI significantly influence the population's living standards by conducting research in many fields in order to
obtain an ever higher level of knowledge.
We must not forget that after all an investment is made to generate profits. Perhaps their most important effect is to
encourage the introduction of competitive business practices in a functional and transparent institutional environment.
To obtain the most accurate and actual results were used data and statistics provided by National Institute of Statistics,
National Commission for Prognosis, the National Trade Register Office and National Bank of Romania.
Cuvinte cheie
Creştere economică, investiţii străine directe, economie de piaţă, variabilă endogenă, variabilă exogenă, greenfield.
în raport cu alte activităţi. El nu are însă o

Introducere manifestare automată, fiind întotdeauna
dependent şi subordonat strategiilor şi
În orice economie investiţiile constituie un politicilor de dezvoltare ale firmelor,
fenomen aparte, cu trăsături proprii, distincte sectoarelor de activitate, comunităţilor etc. La
228
investiţii se apelează numai în măsura în care Trebuie arătat că există şi alte beneficii pe
obiectivele urmărite, referitoare la dezvoltarea care o investiţie străină le-ar putea aduce, şi
producţiei şi serviciilor în concordanţă cu anume:
nevoile identificate, cu cererea previzionată,  sporirea producţiei şi a calităţii
nu pot fi realizate în condiţii avantajoase. produselor în concordanţă cu
În ceea ce priveşte investiţiile străine directe, standardele Europene;
acestea au o istorie de decenii. Noţiunile  realizarea cantităţii necesare tuturor
juridice, principiile, normele şi cutumele au pieţelor potenţiale străine sau interne;
evoluat constant, au generat controverse  cererea de noi locuri de muncă;
politice şi excese la nivelul economiilor  accesul la noi pieţe.
naţionale ale unor state, indiferent de regimul Firmele multinaţionale îşi pot folosi legăturile
politic, au cunoscut reglementări diverse în lor deja formate pentru a importa şi exporta
cadrul organizaţiilor internaţionale şi produse din şi în România, sporind astfel
regionale, iar în prezent se află în faţa unei greutatea economiei româneşti în economia
provocări majore, căreia trebuie să-i facă faţă, mondială.
generată de impetuoasa şi implacabila Pe de altă parte investiţiile sunt componenta
tendinţă de globalizare a economiei mondiale cea mai volatilă a PIB. Cu mult mai puţin
Pentru România, ţară care se află în plin volatile decât investiţiile naţionale, investiţiile
proces de transformare către economia de străine directe răspund la mai multe
piaţă, nevoia atragerii de investiţii va avea ca determinante decât investiţiile domestice
efecte: înlocuirea împrumuturilor; (naţionale).
retehnologizarea societăţilor şi regiililor Determinantele investiţiilor străine referitoare
autonome; introducerea unui model de la o ţară (mediul investiţional) pot fi rezumate
management; asigurarea calificării şi astfel: stabilitate economică, politică socială;
specializării personalului; folosirea funcţionarea eficientă a sistemului juridic;
segmentelor de piaţă externe proprii ale celor reguli referitoare la intrarea pe piaţă şi
ce investesc, eliminându-se astfel concurenţa operarea în cadrul ei; standarde de tratament
externă; ridicarea calităţii producţiei şi, nu în ale sucursalelor străine; politici legate de
ultimul rând, descentralizarea activităţii şi funcţionarea şi structura pieţei (în special
dezvoltarea economiei de piaţă. politici referitoare la competiţie şi reguli
În condiţiile trecerii la economia de piaţă, în referitoare la fuziuni şi achiziţii); acordurile
România renaşte proprietatea privată iar internaţionale de comerţ şi de investiţi;
principalii investitori încep a fi persoanele sau politica de privatizare; politica comercială
firmele private. (bariere tarifare şi netarifare); politica fiscală.
Astfel, investiţiile străine directe pot să joace Sunt şi anumite dezavantaje ale atragerii
un rol crucial în restructurarea şi refacerea investiţiilor străine în cazul unui mediu
economiei româneşti. Firmele vestice, prin instituţional slab şi ineficient: firmele atrase
introducerea tehnologiei de vârf şi a vin să investească în dorinţa să obţină venituri
modelelor de management modern la filialele suplimentare din crearea structurilor
lor deschise în România, vor putea pune sub monopoliste şi sunt atrase exact de mediul
presiune companiile româneşti care vor fi instituţional slab şi manipulabil; firmele
obligate, la rândul lor, să realizeze astfel de multinaţionale care acţionează într-un mediu
îmbunătăţiri. România, ca şi celelalte ţări est- instituţional slab sunt periculoase chiar şi
europene, a moştenit o dezvoltare industrială pentru firmele locale competitive datorită
integrată în care capacităţile de producţie puterii relativ mari pe care o au, iar investiţiile
lucrau interdependent şi asigurau, la un nivel au mai degrabă un efect negativ asupra
calitativ mai mult sau mai puţin societăţii respective.
corespunzător, produsele necesare pieţei
interne şi un surplus pentru exporturi pe pieţe
care acceptau calitatea produselor respective.
229
Evoluţia ISD în România Atât rata de investiţii cât şi rata comerţului

pot fi afectate de investiţiile străine directe şi
România a rămas în urmă în ceea ce priveşte în acest mod creează un canal indirect al
interesul investitorilor străini în primii 9-10 efectului investiţiilor străine directe asupra
ani de tranziţie. După anul 2000, situaţia din creşterii economice. De asemenea, cele mai
România s-a îmbunătăţit. favorabile indicaţii ale influenţei pozitive
Conform estimărilor, flxul de investiţii străine asupra creşterii economice se pot observa la
directe atrase în perioada 1997 – 2009 a combinaţia factorului de pregătire (educaţie)
înregistrat oscilaţii notabile. Astfel, pentru cu intrările de investiţii străine directe.
perioada 1997-2003 a înregistrat o medie de Legătura directă dintre ISD şi PIB poate fi
1,403 miliarde USD, iar pentru perioada reprezentată printr-o curbă, care are însă o
2001-2004 au înregistrat o creştere de 104% formă neregulată:
faţă de totalul ISD înregistrat în perioada
1997-2000.
Potrivit BNR, în perioada 2003-2006
investiţiile străine directe au fost într-o
continuă creştere. Au beneficiat de acestea
industria prelucrătoare (51% din totalul ISD –
metalurgia, industria alimentară, a băuturilor
şi tutunului şi industria mijloacelor de
transport, confecţiile din textile şi pielărie
deţinând numai 4,4 puncte procentuale), iar în
anul 2006 fluxurile lunare ale investiţiilor
străine directe au fost puternic influenţate de
intrarea în luna octombrie a sumei de 2,2 Fig. nr.1
miliarde euro din privatizarea Băncii
Comerciale Române. Deşi niciunul dintre specialişti nu pune la
În 2006, investiţiile străine directe au acoperit îndoială existenţa unei legături directe între
aproape în totalitate deficitul de cont curent ISD şi creşterea economică, există totuşi
din acel an. Completând putem spune că, puncte de vedere diferite cu privire la
fenomenul creşterii economice este complex, caracterul acestei legături, şi anume:
iar direcţiile cauzalităţii sunt frecvent  cât de strânsă este această legătură?
bidirecţionale: de la cauzele presupuse la  ISD, sunt factorul principal al creşterii
efectul de creştere economică şi de la economice într-o ţară sau alta, sau
influenţa inversă a creşterii economice asupra acest factor este cererea agregată?
cauzelor presupuse. În plus, factorii diferiţi Investiţiile Străine Directe nu pot fi
despre care se consideră că explică creşterea considerate drept singurul factor al creşterii
economică se află ei înşişi într-o legătură economice, un rol important în acest proces
strânsă. Cu problemele acestea se confruntă revenindu-i cererii interne.
toate studiile care încearcă să răspundă la Existenţa unei corelaţii strânse între investiţii
întrebarea dacă şi în ce măsură, un factor sau şi creşterea economică este contestată de către
un grup de factori afectează creşterea specialiştii Institutului Economiei Perioadei
economică. Aceste probleme apar deci şi la de Tranziţie din Moscova. Utilizând în
studiul impactului investiţiilor străine directe calitate de instrument de cercetare modelele
asupra creşterii economice. matematice ei au demonstrat că dezvoltarea şi
Studiile efectuate au demonstrat că există creşterea economică în Rusia, practic, nu
corelaţii relativ robuste între rata de investiţii depinde de investiţiile străine directe. Fluxul
(exprimată ca investiţii/PIB) şi creşterea ISD, conform opiniei lor, în ansamblu, nu
economică, cât şi corelaţii între rata de influenţează ritmurile de creştere a economiei
investiţii în comparaţie cu rata de comerţ ruse, ci doar într-o măsură oarecare
(exprimată ca fiind comerţul exterior/PIB). ameliorează calitatea creşterii economice.
230
În rezultatul interdependenţei investiţii străine Dacă r aparţine [-0,5;0] => legătură indirectă slabă
– creştere economică în diferite categorii de Dacă r aparţine (0; 0,5] => legătură directă slabă
Dacă r aparţine (0,5; 1] => legătură directă puternică
ţări (dezvoltate, în tranziţie, în curs de
dezvoltare), se ajunge la concluzia că ISD au
Această valoare a coeficientului de corelaţie
un impact pozitiv asupra creşterii economice
statistică (r = 0,962) pune în evidenţă
doar în cazul în care statul porneşte în politica
existenţa unei legături directe, foarte
de atragere a ISD de la interesul naţional şi
puternice, între indicatorii luaţi în calcul, ceea
priorităţile dezvoltării ţării respective.
ce înseamnă că Investiţiile Străine Directe
Luând în considerare următoarele date privind
influenţează nivelul PIB în acelaşi sens,
evoluţia indicilor PIB (variabila endogenă y)
puternic.
şi ISD (investiţiile străine directe – variabila
Astfel, putem aminti rezultatele studiului
exogenă) în perioada 1998 – 2009, am
SeeNews: „ volumul ridicat al investiţiilor
analizat legătura dintre cei doi indicatori cu
străine directe atrase şi consumul local au
ajutorul coeficientului de corelaţie. Sursa
susţinut creşterea economică a României în
pentru cei doi indicatori este: Anuarul
ultimii ani ”.[1]
Statistic al României 2008 – 2009, Agenţia
Conform acestui studiu intitulat SEE TOP
Română pentru Investiţii Străine (ARIS),
100, România are 15 companii în Top 100,
Comisia Naţională de Prognoză (CNP), Banca
care au înregistrat cele mai mari venituri din
Naţională a României (BNR).
toată Europa de Sud-Est în anul 2007.
Tabel nr. 1
Tot în acest an – conform Raportului Mondial
asupra Investiţiilor, ediţia 2008 - România a
Nr.crt. An ISD-x PIB-y fost a doua destinaţie preferată de investitorii
1 1998 1.81 37.38 străini în cadrul grupului de noi state membre
2 1999 1.6 54.57 ale U.E., fiind devansată doar de Polonia. Ea
3 2000 2.23 80.4 a înregistrat un nivel al ISD atrase de 9.774
4 2001 3.31 116.8 milioane USD, devansând şi de această dată
5 2002 3.79 151.5 concurenţi tradiţionali, respectiv Cehia,
6 2003 7.35 197.6
Ungaria şi Bulgaria.
7 2004 16.87 246.4
A implementat un număr de 1.384 de proiecte
8 2005 18.81 287.2
de investiţii greenfield şi prin urmare este
9 2006 19.52 330.3
considerată noul lider din grupa noilor state
10 2007 22.45 372.3
2008 37,98 503,9
membre ale U.E.
11
12 2009 19,56 491,3
Pentru anul 2008, fluxul de investiţii străine
Total - 145,34 2869,65
directe atrase de România a fost în creştere,
Valorile sunt în mld RON comparativ cu anul precedent, fiind clasată pe
locul 10 în topul ţărilor din Uniunea
Coeficientul de corelaţie Europeană. Această situaţie s-a datorat
conjuncturii legate de perspectiva aderării la
n n n Uniunea Europeană şi integrarea efectivă în
n xy   x  y structurile europene, precum şi de evoluţia
r i 1 i 1 i 1
 0,96255735
pozitivă a indicatorilor macroeconomici.
 n 2  n 2   n 2  n 2  Potrivit Raportului de activitate al Agenţiei
n x    x   n y    y   Române pentru Investiţii Străine (ARIS
 i 1  i 1    i 1  i 1  
2008), acestea (ISD) au finanţat în proporţie
de 53,5% deficitul contului curent,
Coeficientul de corelaţie (r) poate lua valori cuprinse comparativ cu 43,5% în anul precedent.
între [-1,1] Pentru a fi în continuare atractivă din punctul
Dacă r = - 1 => legătură perfect indirectă de vedere al investitorilor, România trebuie să
r =1 => legătură perfectă directă realizeze o strategie, să gândească măsuri pe o
Dacă r aparţine (-1; -0,5) => legătură indirectă perioadă cât mai lungă de timp, măsuri cât
puternică
231
mai rapide pentru ca investiţiile străine să aibă naţionale şi în promovarea creşterii

loc efectiv în ţară. În acest context, ARIS a economice datorită efectelor pozitive pe care
continuat derularea campaniei de promovare a acestea le au asupra productivităţii,
României ca destinaţie atractivă pentru transferurilor tehnologice, introducerea
investiţii străine directe. Aceasta a susţinut cunoştinţelor manageriale, perfecţionarea
peste 100 de prezentări la evenimente interne forţei de muncă, accesul la noi pieţe etc.
şi peste 150 de prezentări la manifestări Trebuie menţinută în continuare o politică
internaţionale vizând cadrul macroeconomic, legislativă care să îi încurajeze pe investitorii
fiscal, de afaceri şi investiţii. străini să-şi continue investiţiile. Este
În calitate de membru al Comisiei pentru necesară, mai mult decât oricând,
Cooperare Economică şi Dezvoltare intensificarea şi diversificarea activităţilor de
Internaţională (înfiinţată conform art. 29 (1) promovare şi stimulare pentru atragerea
din HG 747 /2007), ARIS participă la analiza capitalului străin în economie în vederea
dezbaterilor de planificare inter-instituţională redresării economice, reluării creşterii şi
a problematicilor privind realizarea politicii asigurării stabilităţii macroeconomice, cât şi
naţionale de cooperare internaţională pentru pentru păstrarea şi extinderea investiţiilor
dezvoltare. existente.
Activitatea ARIS a fost evaluată periodic de Ca urmare este necesară crearea celor mai
către Banca Mondială, prin instrumentul favorabile condiţii pentru atragerea ISD.
GIPB (Comparaţie Globală asupra Promovării Experienţa mondială arată că ameliorarea
Investiţiilor), care determină poziţionarea climatului investiţional reprezintă condiţia
eficientă a performanţelor agenţiilor de esenţială de atragere a investitotilor străini. În
promovare a investiţiilor faţă de concurenţă, ultimul deceniu marea majoritate a ţărilor
la nivel regional şi mondial, cu privire la lumii au perfecţionat permanent climatul lor
transpunerea celor mai bune practici în investiţional, făcându-l mai atractiv pentru
domeniul activităţii de promovare. Conform investitorii străini.
raportului efectuat în anul 2009 cu privire la Investiţiile străine directe ajută în mod cert
activitatea anului anterior, ARIS a înregistrat economia locală, făcând posibilă creşterea
o performanţă foarte bună. ARIS a productivităţii şi a producţiei în sectoarele
demonstrat că prin profesionalism s-a ajuns la respective, sporind în acelasi timp venitul
performanţă, care a atras recunoaşterea naţional pe măsura reducerii preţurilor şi a
internaţională. Cu toate aceste realizări, ARIS îmbunătăţirii calităţii şi ofertei serviciilor şi a
a fost desfiinţată de Guvern. Acesta a luat produselor pentru consumatori.
hotărârea să o transforme în direcţia Astfel, marea majoritate a specialiştilor
specializată din cadrul Ministerului consideră că ISD au un impact favorabil
Întreprinderilor Mici şi Mijlocii, Comerţului asupra creşterii economice în ţările
şi Mediului de Afaceri. receptoare. Ei au demonstrat că ţările care au
Ca urmare a unei politici interne greşite, a atras un volum important de ISD au avut cele
tratării lucrurilor prin amatorism, investiţiile mai înalte ritmuri de creştere economică.
străine directe în România au scăzut în Desigur, ISD reprezintă un element important
comparaţie cu cele înregistrate în anul 2008. al dezvoltării economiei oricărei ţări şi al
Prin reducerea investiţiilor străine directe în funcţionării acesteia pe principiile economiei
anul 2009 la 4,89 mld. euro, deficitul de cont de piaţă. Ele au o importanţă mare pentru
curent a fost acoperit în proporţie de 96,9% consolidarea economiei ţărilor în tranziţie şi
(conform datelor Băncii Naţionale a integrarea acestora în economia mondială.
României). Cu ajutorul ISD are loc procesul de
modernizare a economiilor naţionale, în
Concluzii special al celor în tranziţie. În plus, eficienţa
ISD depinde de calitatea acestora, precum şi
Investiţiile străine directe pot juca un rol de ramurile în care sunt atrase. ISD sunt doar
important în modernizarea economiei
232
unul din factorii creşterii economice a unei

ţări.
Datorită numeroaselor beneficii ale
investiţiilor străine directe, considerăm că
acestea sunt un element esenţial în
dezvoltarea economică a unei ţări, un
exemplu în acest sens fiind chiar România.
Indiferent de opinie, experienţa a arătat că
investiţiile străine directe au avut per total mai
degrabă un impact pozitiv şi nu au provocat
dezechilibre în economia şi societatea ţărilor
gadă. Ele chiar duc la o productivitate sporită
şi sunt catalizator pentru atragerea altor
investiţii cu efecte economice global pozitive.
Note:
[1] Amos News: Agenţia Independentă de Presă

http://2008.informatia.ro/index.php?name=News&
file=index&catid=&topic=18
Bibliografie
[1]. Anghelache Constantin, România 2003. Starea

economică – perspective, Editura Economică,
Bucureşti, 2003
[2]. Ciupagea Constantin, Marcel Moldoveanu,
România în contextul globalizării şi integrării
europene, evoluţii-tendinţe-strategii, Editura
EXPERT, Bucureşti, 2008
[3]. Vasilescu Ion, Alexandru Gheorghe, Claudiu
Cicea, Cătălin Dobrea, Eficienţa şi evaluarea
investiţiilor, Editura Eficon Press, Bucureşti, 2004
[4]. ***IMF (2007): Balance of Payments, Manual,
6th Edition
[5]. ***OECD,(2008):Benchmark Defi nition of
Foreign Direct Investment, 4th Edition.
[6]. ***UNCTAD: World Investment Report:
Transnational Corporations Extractive
[7]. Industries and Development (2007, 2008).
[8]. *** World Economic Forum, (2008): The Global
Competitiveness Report 2008-
2009.http://www.gcr.weforum.org/ (20.12.2008.)
[9]. www.insse.ro
[10]. www.arisinvest.ro
[11]. www.bnr.ro
[12]. www.mediafax.ro
[13]. www.scribd.com
[14]. www.onrc.ro
[15]. www.eurostat.com
[16]. www.worldbank.org
[17]. www.unctad.org
[18]. www.europa.eu.int
233
THE IMPACT OF THE CULTURE ON THE STRATEGIES OF THE COUNTY

MEHEDINTI ORGANISATIONS
Doina ROSCA, Adriana SCHIOPOIU BURLEA, Marioara AVRAM, Laurenţiu DRAGOMIR, Mirela SÎRBU, Cristian
NEGULESCU, Ionuţ PANDELICĂ, Daniel AVRAM
Abstract
The aim of the paper is to evaluate the influence of the strategies and culture on the social behavior of County
Mehedinti organizations.
Starting from the reference literature on strategies management and culture, this article is an investigation of the
impact that short/long term orientation has on the behavior of the employees in organizations.
Our research underpins quantitative and qualitative methodology based on the outcomes of the COMOR project.
Introducere În structura chestionarului variabila

culturală „orientarea pe termen lung-scurt” a
Preocuparea salariaţilor şi a făcut obiectul analizei următoarelor elemente:
managerilor pentru rezolvarea problemelor * Q22- Gradul de preocupare a oamenilor din
actuale şi viitoare ale organizaţiei impune organizaţie pentru problemele curente
adaptarea strategiei organizaţiei la valorile Preocuparea principală a oamenilor din
sale culturale. această organizaţie
Realizarea unui contract social de Pa – este pentru rezolvarea problemelor
colaborare, susţinut de o etică a colaborării, curente
trebuie să cuprindă drepturile şi Pd - ar trebui să fie pentru rezolvarea
responsabilităţile individuale, pe baza problemelor curente
comportamentelor cooperante.
Managementul strategic trebuie să * Q 23 – Principala preocupare a oamenilor
fie susţinut printr-un contract de colaborare şi din organizaţie
printr-o strategie colectivă a organizaţiei. De Preocuparea principală a oamenilor din
aceea, este important să se facă distincţie între această organizaţie:
reflexia colectivă şi cea individuală, deoarece: Pa – este pentru planuri de viitor
- comunicarea permite schimbul de informaţii Pd – ar trebui să fie pentru planuri de viitor
fără să fie necesară o cooperare intelectuală;
- reflecţia implică cooperări intelectuale ce * Q 38 - Gradul de adoptare a strategiilor şi
permit crearea informaţiei, îi dă un sens şi politicilor noi de resurse umane
interacţionează cu informaţia existentă pentru În organizaţia dumneavoastră:
a o transforma într-o nouă informaţie. Pa – se adoptă strategii şi politici noi de
resurse umane
Colaborarea implică atât comunicare, Pd – ar trebui să se adopte strategii şi politici
cât şi inteligenţa individuală canalizată spre noi de resurse umane
inteligenţa colectivă. Colaborarea beneficiază
şi un feed-back al comunicării prin generarea * Q 46 – Gradul de fermitate a şefului în
continuă de noi informaţii şi cunoştinţe. vederea obţinerii de rezultate pe termen lung
Oricât ar fi de greu, şeful dumneavoastră
Studiu de caz – Impactul culturii asupra direct:
strategiilor sociale ale organizaţiilor din Pa – demonstrează hotărârea fermă de a face
judeţul Mehedinţi ceea ce trebuie făcut pentru a obţine cele mai
bune rezultate pe termen lung
În această lucrare, pe baza analizei Pd – ar trebui să demonstreze hotărârea fermă
chestionarului completat de 192 de de a face ceea ce trebuie făcut pentru a obţine
respondenţi din judeţul Mehedinţi, am cele mai bune rezultate pe termen lung
conturat răspunsul la întrebarea:
* Care este orientarea pe termen lung-scurt în * Q 50 – Preocuparea managerilor pentru
organizaţiile din judeţul Mehedinţi? formarea succesorilor
Managerii din organizaţia dumneavoastră: Pa – se face pe baza planurilor

Pa – se preocupă constant pentru formarea dinainte stabilite
succesorilor, care să asigure organizaţiei Pd – ar trebui să se facă pe baza planurilor
reuşite mai mari în generaţia următoare dinainte stabilite şi cunoscute de către cei
Pd – ar trebui să se preocupe mai mult pentru interesaţi
formarea succesorilor, care să asigure
organizaţiei reuşite mai mari în generaţia * Q 62 – Planificarea şedinţelor de lucru într-
următoare o organizaţie
Şedinţele de lucru care se desfăşoară în
* Q 61 – Desfăşurarea activităţilor şi organizaţie:
rezolvarea problemelor în cadrul organizaţiei Pa – sunt planificate (stabilite cu 1-2
Desfăşurarea activităţilor şi rezolvarea săptămâni înainte)
problemelor în cadrul organizaţiei: Pd – ar trebui să fie planificate (stabilite cu 1-
2 săptămâni înainte)
40 70
60
30 50
40
20 M (Pa) M (Pd)
30
F (Pa) F (Pd)
10 20
10
0 0
at ap i dp dt at ap i dp dt
Figura 1 - Gradul de preocupare a oamenilor din organizaţie pentru problemele curente în funcţie de structura
pe sexe
a) – practica actuală (Pa) şi b) – practica dorită (Pd)
Răspunsurile la întrebarea Q22 preocupărilor pentru problemele curente este

prefigurează, într-o primă fază, un grad ridicat afişat din partea bărbaţilor, în timp ce femeile
de preocupare, atât al femeilor, cât şi al conştientizează într-un procent mai mare
bărbaţilor, pentru problemele curente din nevoia de preocupare pentru problemele
cadrul organizaţiei. Un nivel mai ridicat al curente.
40 50
40
30
sub 30 ani (Pa) sub 30 ani (Pd)
30
30-40 ani (Pa) 30-44 ani (Pd)
20
45-60 ani (Pa) 20 45-60 ani (Pd)
peste 60 ani peste 60 ani

10
(Pd)
(Pa) 10
0 0
Figura 2 - Gradul de preocupare a oamenilor din organizaţie pentru problemele curente

pe grupe de vârstă
235
Analizând răspunsurile la întrebarea respondenţi consideră necesară această

Q 22 în funcţie de structura pe grupe de vârstă preocupare). Toate persoanele cu vârsta peste
a respondenţilor, observăm, pe lângă 60 de ani consideră că preocuparea principală
particularităţile menţionate anterior, o a oamenilor din organizaţie ar trebui să fie
preocupare mai mare din partea persoanelor pentru rezolvarea problemelor curente
cu vârstele cuprinse între 30-40 de ani (55 de
.
40 60
50
30
40
elementare elementare
(Pa) (Pd)
20 medii(Pa) 30 medii (Pd)
superioare 20 superioare
(Pa) (Pd)
10
10
0 0
Figura 3 - Gradul de preocupare a oamenilor din organizaţie pentru problemele curente după nivelul studiilor
Din figura 3 se observă că 43 dintre prezintă un interes crescut pentru manifestarea

respondenţii cu studii medii şi 60 cu studii acestor preocupări în viitor. Persoanele cu
superioare sunt orientaţi pe preocupările studii elementare sunt în general, indecise cu
curente, pe când 44 de persoane din rândul privire la acest aspect.
celor cu studii medii şi 78 cu studii superioare
30 60
50
mg. Varf (Pa) mg. Varf (Pd)

20 40
mg. Mijloc (Pa) mg. Mijloc (pd)

30
mg. Baza (Pa) mg. Baza (Pd)
10 20
pers.executie pers. Executie
(Pa) (Pd)
10
0 0
Figura 4 - Gradul de preocupare a oamenilor din organizaţie pentru problemele curente după poziţia ierarhică
Persoanele situate pe diferite poziţii opiniilor. Astfel, referitor la practica dorită, 53

ierarhice au atitudini diferite în exprimarea respondenţi din categoria personalului de
236
execuţie au fost în acord total cu preocuparea număr de 33 de respondenţi au fost indecişi cu

personalului pentru problemele curente. Un privire la aceste aspecte.
60 80
50 70
60
40
50
30 M (Pa) 40 M (Pd)
F (Pa) 30 F (Pd)
20
20
10 10
0 0
Figura 5 - Principala preocupare a oamenilor din organizaţie în funcţie de structura pe sexe

Principala preocupare a oamenilor doar 59 de persoane consideră că preocuparea

din organizaţie pentru planuri de viitor s-a organizaţiei lor nu este pentru planuri de
realizat pe baza întrebării Q 23. stfel, 159 viitor. Proporţii asemănătoare se păstrează şi
persoane consideră că practica actuală este pentru practicile dorite.
nediscriminatorie, 4 persoane sunt indecise şi
50
60
50 40

40
30
30-40 ani (Pa) 30-44 ani (Pd)
30
45-60 ani (Pa) 45-60 ani (Pd)
20
20
(Pa) (Pd)
10
10
0 0
Figura 6 - Principala preocupare a oamenilor din organizaţie pe grupe de vârstă

56 de persoane din grupa de vârstă necesitatea preocupărilor organizaţiei către

cuprinsă între 30-44 ani şi alte 41 de persoane planurile de viitor. Astfel, din grupa de vârstă
din grupa de vârstă sub 45-60 de ani consideră sub 30-44 de ani 80 de respondenţi şi 68 din
că, în practica actuală, preocuparea principală grupa 45-60 de ani au fost de acord ca
este îndreptată către planurile de viitor. În ceea principala preocupare a oamenilor din
ce priveşte practica dorită se observă o creştere organizaţiei să fie planurile de viitor.
a numărului persoanelor care aprobă
237
60 80
70
50
60
40 elementare elementare
50
(Pa) (Pd)
30
20 superioare superioare
(Pa) 20 (Pd)
10
10
0 0
Figura 7 - Principala preocupare a oamenilor din organizaţie după nivelul studiilor

Pe categorii de studii, se remarcă pentru planuri de viitor. Numai 23 de

faptul că respondenţii cu studii superioare respondenţi nu consideră că principala
consideră că principala preocupare a preocupare a organizaţiilor ar trebui să fie
oamenilor din organizaţie ar trebui să fie planurile viitoare.
50 40
mg. Varf
40 (Pd)
mg. Varf (Pa) 30
mg. Mijloc
30 mg. Mijloc (Pd)
(Pa) 20
20 mg. Baza mg. Baza
(Pa) (Pd)
pers.executi 10
10 e (Pa) pers.
Executie
(Pd)
0 0
Figura 8 - Principala preocupare a oamenilor din organizaţie după poziţia ierarhică

14 manageri de vârf, 29 manageri de oamenilor din organizaţie trebuie să fie pentru

mijloc şi 56 manageri de bază consideră că ar planuri de viitor.
fi este de dorit ca principala preocupare a
50 80
70
40
60
30 50
M (Pa) 40 M (Pd)
20 30
F (Pa) F (Pd)
10 20
10
0 0
Figura 9 - Gradul de adoptare a strategiilor şi politicilor noi de resurse umane în funcţie de structura pe sexe
În prezent, 141 de persoane consideră În ceea ce priveşte practica dorită,

că în organizaţia în care îşi desfăşoară numărul persoanelor care consideră că
activitatea se adoptă strategii şi politici noi de organizaţia ar trebui să adopte strategii şi
resurse umane, iar alte 29 de persoane sunt politici noi de resurse umane este de 180, iar
indecise. numărul indecişilor scade la 7 persoane.
70
50
60
40
50 sub 30 ani (Pd)
sub 30 ani (Pa)
30 40 30-44 ani (Pd)

30-40 ani (Pa)
45-60 ani (Pa) 30 45-60 ani (Pd)

20
peste 60 ani 20 peste 60 ani

(Pa) (Pd)
10
10
0 0
Figura 10 - Gradul de adoptare a strategiilor şi politicilor noi de resurse umane

Analiza răspunsurilor pe grupe de respondenţi, 180 consideră că ar trebui

vârstă la întrebarea Q 38 relevă faptul că grupa adoptate strategii şi politici noi de resurse
de vârstă 30-40 de ani consideră că, în cadrul umane în cadrul organizaţiei, iar 7 persoane
organizaţiei sunt adoptate strategii şi politici sunt indecise.
noi de resurse umane. Din totalul de 192 de
60 90
80
50
70
40 60
elementare elementare
(Pa) 50 (Pd)
30 medii(Pa) medii (Pd)
40
20 superioare 30 superioare
(Pa) (Pd)
20
10
10
0 0

după nivelul studiilor
73 dintre respondenţii cu studii medii resurse umane în cadrul organizaţiei,

şi 68 cu studii superioare sunt de acord că în Persoanele cu studii elementare sunt indecise
prezent se adoptă strategii şi politici noi de cu privire la acest aspect.
50
60
40 mg. Varf 50 mg. Varf
(Pa)
(Pd)
30 mg. Mijloc 40
mg. Mijloc
(Pa)
30 (Pd)
20 mg. Baza
mg. Baza
(Pa) 20 (Pd)
10 pers.execu
10 pers.exec
tie (Pa)
utie (Pd)
0 0

după poziţia ierarhică
68 dintre manageri şi 73 respondenţi şi 79 de respondenţi din personalul de execuţie

din personalul de execuţie consideră că se consideră că aceste strategii şi politici ar trebui
adoptă politici şi strategii noi de resurse umane să fie adoptate.
în cadrul organizaţiei, iar 101 dintre manageri
60 90
50 80
70
40 60
M (Pa) 50
30 M (Pd)
40
20 F (Pa) 30 F (Pd)
20
10 10
0 0
Figura 13 - Gradul de fermitate a şefului în vederea obţinerii de rezultate pe termen lung în funcţie de structura
pe sexe
105 bărbaţi şi 73 de femei consideră practicilor dorite, astfel, 107 bărbaţi şi 82 de

că, oricât ar fi de greu, şeful demonstrează femei consideră că hotărârea fermă din partea
hotărârea fermă de a face ceea ce trebuie făcut şefului ar trebui să existe indiferent de
pentru a obţine cele mai bune rezultate pe circumstanţe.
termen lung. Proporţia se păstrează şi în cadrul
80
60
70
50
60 sub 30 ani
sub 30 ani
(Pd)
40 (Pa) 50
30-44 ani (Pd)
30-44 ani (Pa)
40
30
45-60 ani (Pd)
45-60 ani (Pa) 30
20
20 peste 60 ani
peste 60 ani
(Pa) (Pd)
10
10
0 0
Figura 14 - Gradul de fermitate a şefului în vederea obţinerii de rezultate pe termen lung, pe grupe de vârstă
240
90 de persoane cu vârsta cuprinsă în greu, în vederea obţinerii de rezultate pe

categoria 30-44 de ani şi 67 de persoane cu termen lung. Nimeni nu consideră că o astfel
varsta cuprinsă între 45-60 de ani consideră că de atitudine nu este cea recomandată.
şeful direct ia o hotărâre fermă oricât ar fi de
70 90
60 80
70
50
elementare 60 elementare
40 (Pa) (Pd)
50
medii(Pa) medii (Pd)
30 40
20 (Pa) (Pd)
20
10
10
0 0
Figura 15 - Gradul de fermitate a şefului în vederea obţinerii de rezultate pe termen lung după nivelul studiilor
91 dintre persoanele cu studii rezultate pe termen lung. 188 de respondenţi

superioare şi 87 dintre cele cu studii medii din rândul persoanelor cu studii superioare şi
consideră că oricât ar fi de greu, şeful medii consideră că aceasta ar trebui să fie
demonstrează hotărârea fermă de a face ceea atitudinea superiorului, în vederea obţinerii
ce trebuie făcut pentru a obţine cele mai bune rezultatelor pe termen lung.
60
60
50
50
m g. Varf (Pa) m g. Varf (Pd)
40
40
m g. Mijloc m g. Mijloc
(Pa) 30 (Pd)
30
m g. Baza m g. Baza (Pd)
20 (Pa) 20
pers.executi pers.executi
10 e (Pa) 10 e (Pd)
0 0
Figura 16 - Gradul de fermitate a şefului în vederea obţinerii de rezultate pe termen lung după poziţia ierarhică
După poziţia ierarhică, 81 din rezultate pe termen lung şi 88 de persoane din

peroanele din personalul de execuţie şi 58 de personalul de execuţie şi 61 de manageri de
manageri de bază consideră că şeful direct bază consideră această practică o necesitate
afişează o hotărâre fermă de a face ceea ce pentru organizaţie.
trebuie făcut pentru a obţine cele mai bune
50 80
40 70
60
30 50
M (Pa) 40 M (Pd)
20 F (Pa) 30
F (Pd)
20
10
10
0 0
Figura 17 - Preocuparea managerilor pentru formarea succesorilor

în funcţie de structura pe sexe
117 respondenţi consideră că asigure organizaţiei reuşite mai mari în

managerii din organizaţia lor se preocupă generaţia următoare şi 160 de persoane
constant pentru formarea succesorilor care să consideră necesară această preocupare.
40 70
60
30 sub 30 ani sub 30 ani

50
(Pa) (Pd)
30-40 ani 40 30-44 ani
20 (Pa) (Pd)
30 45-60 ani
45-60 ani
(Pa) (Pd)
20
10 peste 60 ani
peste 60 ani
(Pa) 10 (Pd)
0 0
Figura 18 - Preocuparea managerilor pentru formarea succesorilor

În funcţie de grupele de vârstă, 85 de preocupe mai mult pentru formarea

persoane cu vârsta cuprinsă între 30-44 de ani succesorilor .
consideră că managerii ar trebui să se
40 90
80
70
30
elementare 60 elem entare
(Pa) (Pd)
50
20 medii(Pa) m edii (Pd)
40
10 (Pa) (Pd)
20
10
0 0
Figura 19 - Preocuparea managerilor pentru formarea succesorilor după nivelul studiilor

În funcţie de nivelul studiilor pe care preocuparea managerilor pentru formarea

le au respondenţii, s-a constatat că peroanele succesorilor. 19 persoane cu studii superioare
cu studii elementare consideră necesară au dezaprobat această preocupare în viitor. De
creşterea preocupării managerilor pentru asemenea, 87 de respondenţi cu studii medii,
formarea succesorilor. 27 de persoane cu studii din totalul de 192 de intervievaţi, au considerat
medii consideră că în prezent nu se manifestă acest lucru o practică dorită.
30 60
50
m g. Varf (Pa) m g. Varf (Pd)
20 40
m g. Mijloc m g. Mijloc
(Pa) 30 (Pd)
m g. Baza m g. Baza
10 (Pa) 20 (Pd)
pers.executi pers.executi
e (Pa) 10 e (Pd)
0 0
Figura 20 - Preocuparea managerilor pentru formarea succesorilor după poziţia ierarhică

12 persoane din rândul managerilor vârf consideră necesară o sporire a interesului

de varf consideră că există o preocupare pentru pentru formarea succesorilor în vederea
formarea succesorilor şi numai 2 sunt indecişi creşterii reuşitelor ornanizaţiei în generaţia
cu privire la acest asepect . Toţi managerii de următoare.
70 90
60 80
70
50
60
40 50
M (Pa) M (Pd)
30 40
F (Pa) 30 F (Pd)
20
20
10 10
0 0
Figura 21 - Desfăşurarea activităţilor şi rezolvarea problemelor în cadrul organizaţiei în funcţie de structura pe

sexe
Dacă în prezent, 182 de persoane şi 107 bărbaţi şi 82 de femei consideră că ar

intervievate consideră că desfăşurarea trebui să se pună mai mult accentul pe
activităţilor şi rezolvarea problemelor trebuie planurile dinainte stabilite şi cunoscute de
să se facă pe baza planurilor dinainte stabilite, către cei interesaţi.
243
50 80
70
40
60
50
30
30-40 ani (Pa) 30-44 ani (pd)
40
20 45-60 ani (Pa) 45 - 60 ani (Pd)

30
(Pa) 20 (Pd)
10
10
0 0
Figura 22 - Desfăşurarea activităţilor şi rezolvarea problemelor în cadrul organizaţiei pe grupe de vârstă

Pe categorii de vârstă, observăm că baza planurilor dinainte stabilite, numărul

96 de persoane cu vârsta cuprinsă între 30-44 acestora fiind acelaşi şi în analiza practicilor
ani consideră că desfăşurarea activităţilor şi dorite.
rezolvarea problemelor trebuie să se facă pe
60 80
70
50
60
40
elementare 50 elementare
(Pa) (Pd)
20
(Pa) (Pd)
20
10
10
0 0
Figura 23 - Desfăşurarea activităţilor şi rezolvarea problemelor în cadrul organizaţiei

după nivelul studiilor
87 de persoane cu studii medii şi 95 practicilor dorite, 87 de persoane cu studii

cu studii superioare consideră că desfăşurarea medii şi 100 de persoane cu studii superioare
activităţilor şi rezolvarea problemelor trebuie consideră că desfăşurarea activităţilor şi
să se facă pe baza planurilor dinainte stabilite. rezolvarea problemelor în cadrul organizaţiei
2 persoane cu studii elementare sunt indecise ar trebui să se facă pe baza planurilor dinainte
cu privire la practicile actuale, dar consideră stabilite şi cunoscute de către cei interesaţi.
necesar acest lucru în viitor. În analiza
244
60 60
mg. Varf
50 50 (Pd)
mg. Varf
40 (Pa) 40 mg. Mijloc
mg. Mijloc (Pd)
30 (Pa) 30
mg. Baza mg. Baza
20 (Pa) 20 (Pd)
pers.execut
10 ie (Pa) 10 pers.
Executie
0 0 (Pd)
Figura 24 - Desfăşurarea activităţilor şi rezolvarea problemelor în cadrul organizaţiei după poziţia ierarhică
57 dintre managerii de bază şi 84 din de execuţie consideră că desfăşurarea

cadrul personalului de execuţie consideră că activităţilor şi rezolvarea problemelor în cadrul
desfăşurarea activităţilor şi rezolvarea organizaţiei ar trebui să se facă pe baza
problemelor trebuie să se facă pe baza planurilor dinainte stabilite şi cunoscute de
planurilor dinainte stabilite, în timp ce 61 de către cei interesaţi.
manageri de bază şi 87 din rândul personalului
70 80
60 70
50 60
40 50
M (Pa) 40 M (Pd)
30
F (Pa) 30 F (Pd)
20 20
10 10
0 0
Figura 25 - Planificarea şedinţelor de lucru într-o organizaţie în funcţie de structura pe sexe

Dacă în prezent, 102 de bărbaţi şi 70 dorită nu se modifică într-un mod dramatic,

de femei consideră că şedinţele de lucru care deoarece 108 bărbaţi şi 82 femei consideră că
se desfăşoară în organizaţie sunt planificate acestea ar trebui planificate.
(stabilite cu 1-2 săptămâni înainte), practica
60 80
70
50
sub 30 ani 60 sub 30 ani
40 (Pa) (Pd)
50
30-40 ani 30-44 ani
30 (Pa) 40 (pd)
45-60 ani 30 45 - 60 ani
20 (Pa) (Pd)
peste 60 20 peste 60
10 ani (Pa) ani (Pd)
10
0 0
Figura 26 - Planificarea şedinţelor de lucru într-o organizaţie pe grupe de vârstă

245
Dacă în prezent, 88 de respondenţi la practica dorită, 96 de respondenţi consideră

consideră că şedinţele de lucru ce se că planificarea şedinţelor este un lucru
desfăşoară în organizaţie sunt planificate esenţial.
(stabilite cu 1-2 săptămâni înainte), referitor
80
60
70
50
60
40 elem entare 50 elementare

(Pa) (Pd)
30 40 medii (Pd)
m edii(Pa)
30
20 superioare
superioare (Pd)
(Pa) 20
10
10
0 0
Figura 27 - Planificarea şedinţelor de lucru într-o organizaţie după nivelul studiilor

91 de persoane cu studii superioare şi persoane cu studii superioare şi 86 de persoane

81 cu studii medii consideră că şedinţele de cu studii medii consideră că planificarea
lucru ce se desfăşoară în organizaţie sunt şedinţelor este o practică pozitivă ce trebuie să
planificate (stabilite cu 1-2 săptămâni înainte). fie menţinută.
În ceea ce priveşte practicile dorite, 102 de
50 60
50
40
mg. Varf (Pa) mg. Varf (Pd)
40
30
mg. Mijloc (Pa) mg. Mijloc (Pd)
30
20 mg. Baza (Pa) mg. Baza (Pd)

20
pers.executie pers. Executie
(Pa) (Pd)
10
10
0 0
Figura 28 - Planificarea şedinţelor de lucru într-o organizaţie după poziţia ierarhică

73 de persoane din personalul de execuţie şi vârf consideră că şedinţele de lucru ar trebui să

99 de manageri consideră că, în prezent, se desfăşoare planificat (stabilite cu 1-2
şedinţele de lucru care se desfăşoară în săptămâni înainte).
organizaţie sunt planificate (stabilite cu 1-2
săptămâni înainte). Analizănd rezultetele Concluzii
conform practicilor dorite, toţi managerii de
246
Analiza şi concluziile noastre

demonstrează faptul că şi pentru organizaţiile
din judeţul Mehedinţi, dimensiunea culturală
orientare termen lung-scurt, reprezintă un
indicator elocvent al climatului organizaţional.
aracteristice sunt procupările oamenilor cu
privire la rezolvarea problemelor curente,
utilizarea planificărilor, adoptarea de strategii
şi politici noi de resurse umane, fermitatea
superiorilor în luarea deciziilor precum şi o
uşoară preocupare pentru formarea
succesorilor în vederea viitorul organizaţiei.
Bibliografie
[1]. Burlea Şchiopoiu Adriana, anagementul Resurselor

Umane, Editura Universitaria Craiova, 2008
[2]. Dragomir Gheorg, Managementul resurselor
umane, Editura Universitaria, Craiova, 2007
[3]. Roşca Constantin, Roşca Gh. Ion, Vărzaru Mihai -
Resurse umane. Management şi gestiune, Editura
Economică, Bucureşti, 2005
[4]. Roşca Constantin (coordonator), Resurse umane,
Editura Universitaria, Craiova, 2005
[5]. Roşca Constantin (coordonator),- Managementul
resurselor umane, Editura Universitaria, Craiova,
2004
[6]. Roşca Doina (coordonator),, Managementul în
administraţia publică, Editura Universitaria,
Craiova, 2007
[7]. Roşca Doina,- Elemente de teorie managerială,
Editura Universitaria, Craiova, 2003
[8]. State Olimpia, ultura organizaţiei şi managementul
organizaţiei, Editura ASE, Bucureşti, 2004
247
248
SECTION 3/SECŢIUNEA 3
__________________________________
ACCOUNTING – FINANCES /
CONTABILITATE – FINANŢE
250
FINANCIAL INTEGRATION OF EUROPEAN MONEY MARKET UNDER EMU. AN

OVERVIEW

“Alexandru Ioan Cuza” University, Doctoral School of Economics, Iasi, Romania
andreea_avadanei@yahoo.com
Abstract. The first ten years of the Economic and Monetary Union(EMU) have generated a remarkable increase in
financial integration, even if the extent of convergence varies across different sectors within the overall European
financial system. The scope of this article is to illustrate the general issues relevant for understanding European
financial integration by focusing on the money market. The link between the money market and the framework for
implementing the single monetary policy makes it the natural starting point when trying to point out the impact of the
introduction of the common currency on European financial market integration. Among the various segments of the
euro money market, the inter-bank unsecured deposit market has achieved the highest degree of integration and, since
the start of Stage Three of EMU, has performed an important role in ensuring the smooth redistribution of liquidity
among euro area credit institutions irrespective of their geographical location. The 2007/2008 turmoil has led to
increased segmentation in the euro area money market. The assessment of the state of financial integration for the last
period is made very difficult by the effects of the financial dislocations on rates and spreads across the different
instruments and maturities of the money market. However, the integration and standardization of the money market are
not yet complete, and further evolution can be expected.
Keywords: European financial integration, money market, common currency, monetary policy, financial turmoil,
EONIA.
JEL Classification: E44, E52, G01, G15.

the instruments exchanged, as well as the
1. Introduction peculiarities regarding market participants
and other institutional factors. The gains in
The elimination of multiple currencies, terms of integration, efficiency and liquidity
represented by the creation of the European achieved in each of the market segments
Monetary Union (EMU), marks the fall of an following the introduction of the euro
important barrier against financial integration. depended on a number of factors such as: the
Money and bond market integration was an degree of proximity of each market to
immediate consequence EMU. monetary policy implementation; the structure
The introduction of the euro and the of the market (i.e. mainly inter-bank versus a
intercept of the single monetary policy on customer-orientated structure, centralized
January 1, 1999, accelerated the pace of versus an over-the–counter or non-centralized
change. Before Monetary Union, much structure); its relative complexity (i.e. the
curiosity and different points of view number and nature of instruments traded and
surrounded the effect of euro adoption on the market participants); infrastructural
financial markets. As regards the money developments and a number of regulatory,
market, attention focused, in particular, on institutional and historical features.
questions such as how smoothly the money The aim of this paper is to present an
market would integrate after the start of Stage overview of the European money market
Three of EMU, whether money markets integration since the introduction of the
would perform their role efficiently in the common currency in January 1999 until the
monetary policy transmission process, and to present financial turmoil, in terms of
what extent EMU would affect the efficiency evolution and achievements.
of this market compared with that of the In examining developments and
predecessor money markets. integration in the most important segments of
At the start of EMU in 1999, the condition the euro-zone money market, we focused on
of the various money market segments three commonly distinguished markets: the
differed greatly with regard to their potential market for unsecured deposits where credit
integration, owing to the different nature of institutions exchange short-term liquidity
251
without the guarantee of collateral, the repo analyze the degree of European money
market in which market participants exchange market integration from various angles.
short-term liquidity against collateral, and the Santillan et al., 2000, investigate the
foreign currency swap market. We will also effects of the introduction of the euro in 1999
look at the derivatives market and the markets on euro area bond and money markets; their
for short-term securities. study concluded that while the unsecured
Monitoring the integration of euro area money market segment very quickly became
money markets is important for a number of highly integrated, the repo market lagged in
reasons. this respect.
First, this market is central to the Hartmann et al., 2001, examine intra-day
implementation of the single monetary policy data for unsecured euro area lending rates
of the euro area, since it constitutes the first during a 5-month period and find cross-border
step in the transmission mechanism of the rate differentials to be very small. Therefore,
monetary policy. The monetary market is they concluded that the unsecured segment of
regularly used by the Eurosystem to distribute the money market became very highly
liquidity to the market. For example, repo integrated almost immediately after the
transactions are one of the main instruments introduction of the common currency.
used for the Eurosystem’s regular refinancing Gaspar et al., 2001, document the story of
operations. The integration of these markets is what they called the “learning period” in the
therefore essential to allow a smooth flow of money market. The period is identified with
liquidity between markets and across country the three weeks after the introduction of the
borders so that liquidity is distributed evenly euro. They argue that the introduction of the
within the money market. new operational framework proceeded
Beyond these considerations, money remarkably smoothly. If one focuses on
market integration is important for the volatility or cross-bank dispersion in
efficient allocation of resources in the euro overnight interest rates, the effects found are
area and for promoting a more efficient much smaller that the effects associated with
pricing of short-term debt in the euro area. recurring events such as the end of a reserve
The article is structured to answer three maintenance period.
research questions: This finding is all the more surprising because
 What is the importance of European national money markets, before the start of
money market integration for monetary the single monetary policy, displayed
policy? important distinctive features. They also look
 Which was the evolution of the euro- at the dispersion of interest rates across banks,
money market integration and which is using the interest rate obtained by the major
the actual stage, considering its main European banks when they lend funds in the
segments? overnight market. In particular, each data
 What are the implications of the crisis on point represents the average interest rate
the integration of money market? charged in that day by each lending bank. The
In order to develop hypotheses on the dataset was provided by the European
effect of the EMU on the money markets, the Banking Federation (EBF) and is the one used
existing literature on the integration of these to compute the time series for Euro Overnight
markets is being reviewed. Index Average (EONIA), which is based on
data from a panel of more than 50 banks. It is
2. Literature review important to emphasize that observations in
the EBF database correspond to actual trends.
An immediate consequence of the They show that at the very beginning of the
adoption of the common currency was an single monetary policy, that is, during the first
integration of the Eurozone money and bond business week of 1999, some banks reporting
markets (Adjaouté and Danthine, 2003; to the EONIA panel lent at rates above the
Hartmann et al., 2003). A number of studies marginal lending facility.
252
Galati and Tsatsaronis, 2001 and Gaspar The 2007/2008 financial market turmoil
et al., 2003, reported that the percentage of has been discussed extensively in the
cross-border inter-bank lending increased specialized press (i.e. Financial Times, Wall
considerably around the time of euro’s Street Journal, the Economist), and in social
introduction, indicating a strengthening of the publications (Financial Stability Reviews
degree of integration in this segment. published by central banks, the IMF and BIS).
Focusing on inter-country differences, The academic literature is still in the process
Baele et al., 2004, document the integration of of analyzing the ongoing events (Ferguson et
money markets in the euro area, using the al., 2007, the articles in Banque de France,
cross-sectional standard deviation of 2008). Several dimensions are being explored
unsecured lending rates, among 12 average such as flaws in the pricing models and
country rates and confirm the existence of a understanding of credit risk transfer products;
well integrated market across countries. the role of securitization, SIVs (Special
Gaspar et al., 2004, also look at the cross Investment Vehicles) and off-balance-sheet
sectional dispersion of the EONIA overnight exposures of banks and their committed credit
rate. They characterize the distribution of lines; the role of rating agencies (Ashcraft and
rates across contributing banks and study how Schuermann, 2007, Crouhy and Turnbull,
it evolves over time. 2008, Brunnermeier, 2009); central bank
As with the money markets, the level of operations and their impact (of lack of)
general integration in the longer-term debt money spreads and volatility (Taylor and
securities markets has been impressive. Williams, 2008); the role of collateral in open
Although spreads are reasonably low in the market operations (Ewerhart and Tapking,
government bond market, the efficiency and 2008); and the potential moral hazard
liquidity of that market is constrained by implications of recent interventions and
differences in the issuance practices of the innovations in central bank operating
member states (Dune et al., 2006, European procedures-i.e. US Fed and Bank of
Commission, 2008). For corporate debt, England’s securities swap facilities (Buiter,
spreads can be related to sector and firm-level 2008).
characteristics, with no important role for
country-level factors. In relation to liquidity, 3. The importance of european money
Biais et al., 2006, show that the liquidity of market integration for monetary policy
euro-denominated bonds is superior to
sterling or dollar denominated bonds, which By definition, the start of the Third Stage
can be attributed to an open and competitive of EMU had a significant impact on the
area wide market in which a large number of money market’s daily business. The shift in
banks offer dealership services to a wide responsibility for monetary policy from the
array of prospective buyers. national central banks to the ECB had a clear
As is emphasized by Pagano and Von impact given the banks’ crucial role in the
Thadden, 2004, the growth in the volume of money market regarding the distribution of
corporate bond issues can be in part attributed liquidity and determining the level of short-
in the euro, in relation to the contribution of term interest rate.
the single currency to the increase in The Eurosystem implements monetary
competition among underwriters, which led to policy through the money market. Its
a substantial reduction in issuance costs and operational framework is predicated on a
improved access for smaller and higher-risk well-functioning monetary market, requiring
firms. only a limited presence of the monetary
Still, caution is advised when trying to authority. The Eurosystem’s operational
attribute the progress in integration to the framework is based on three key elements.
EMU alone. It seems that some significant First, reserve requirements, with an
integration has already taken place prior to averaging provision other than reserve
EMU, as Hardouvelis et al., 1999 document. maintenance period, allow banks to spread
out the impact of liquidity shocks over time
253
and thereby help to contain volatility in 3. Evolution and achievements of the

overnight interest rates. Required reserves european money market integration
also create a structural liquidity shortage for
the banking system as a whole, ensuring that The most immediate and extensive impact
the central bank will be regularly required to of EMU has been felt on the euro-area money
supply liquidity to the system. markets for unsecured money and derivatives.
The second key element is standing Almost from the outset of EMU, interest rate
facilities. The Eurosystem provides two such on inter-bank deposits and derivative
facilities, a marginal lending facility and a contracts across euro area converged fully to
deposit facility. Both are used on the initiative on the benchmark EURIBOR and EONIA
of commercial banks. The two standing rates. This rapid convergence reflected early
facilities define a corridor (or band) for acceptance of the single monetary policy
overnight rates [20]. among market participants and was facilitated
The third key element, open market by the availability of interconnected systems
operations, is used to control liquidity for real-time settlement of large- value
conditions in the market. In its regular main payments in the form of TARGET, which was
refinancing operations, the Eurosystem uses recently been replaced with a more integrated
repos, supplying liquidity by buying assets platform, TARGET2.
under a repo or granting loans against The successful integration of these
adequate collateral. Money market integration unsecured markets was crucial to establishing
is therefore crucial for the implementation of ECB credibility in the very early period of
the single monetary policy because it provides EMU and has provided the basis for a
the locus for the first step in the monetary smooth-functioning single monetary policy
policy transmission mechanism. thereafter.
During the period from January 4 to 21, In this context, the unsecured market
1999 the corridor defined by the two standing became highly liquid and deep, with very big
facilities was temporarily narrowed to 50 deal sizes, tight bid-ask spreads and equal
basis points, which limited the volatility that interest rates at different locations, with the
might have been associated with the transition exception of minimal differences, normally
to the new regime. When the corridor was well within the bid-ask spreads.
widened to its normal size, the market rate The growth of the unsecured segment of
(measured by EONIA rate) remained stable the market was concentrated at the shorter
and close to the Eurosystem’ main maturities, indeed in overnight transactions,
refinancing operations rate of 3%. The which represented by far the largest share of
dispersion of rates across banks was also unsecured operations. While the available
already much lower on January 22. However, information for the euro area money markets
Gaspar et al., 2001, provide evidence showing is scarce on the price side, the EONIA
that the transition was not, strictly speaking, provides a clear indication for overnight
instantaneous and that learning did take place. developments. The dispersion of the EONIA
They identify a number of inefficiencies and prevailing among euro area countries has
other forms of abnormal behaviour during the been very small since 1999.This is a key
first day of the month- for example, the above development because a common short-term
mentioned trading at rates significantly higher interest rate represents the first step in the
than the marginal lending facility on January transmission mechanism of monetary policy.
5. However, they also show that banks have Between 1999 and 2007, the unsecured
adapted quickly and easily to the new segment was highly integrated, with the
environment. creation of the euro area lending to a near-
complete convergence in key indicators, such
as the overnight lending rate.
Over the second half of 2007 and the first
quarter of 2008, a sharp widening of the
dispersion in EONIA lending rates was seen
254
in response to the financial turbulence. This bank market functioned smoothly. However,
could have been the result of two joint the liquidity problems experienced in the euro
factors-an increase in the variability of area inter-bank market since august 2007
counterparty risk and a temporarily higher amid the ongoing international financial
home bias for unsecured transactions [25]. turmoil have highlighted the importance of
This conclusion is supported by the access to efficient collateralized money
positive trend in the geographical markets and suggested a need for further
counterparty breakdown for 2006-2008. It effort in integrating these markets.
appears that over 2007 and the first quarter of Given the high fragmentation that has
2008 the secured segment has been less characterized the commercial paper market
influenced by the financial turbulence. since the introduction of the euro; the
Nevertheless some impact has been seen both harmonization of market standards promoted
in terms of reduced cross-border business and by the STEP initiative may significantly
increased variability of rates between contribute to the integration of this market
countries. Outside the euro area, unsecured segment.
money market interest rates were also Unlike the unsecured and secured
converging up until the emergence of the segments, the market for short-term securities
market turmoil in the latter part of 2007. has shown only limited signs of integration
Integration has been less complete in since the introduction of the common
secured money markets within the euro area, currency, mainly because of differences in
such as the market for T-bills (Treasury bills), market practice and standards. An efficient
commercial paper and certificates of deposit, commercial paper (CP) market is needed to
as well as the private repo market. ensure the efficient financing for firms and a
The creation of EUREPO index by the smooth and timely transmission of monetary
European Repo Council and the European policy. Furthermore, the absence of a
Banking Federation in March 2002 was an sufficiently developed CP market may result
important recent initiative for promoting the in elevated and uneven costs of capital in the
repo market’s integration. EUREPO, which euro area.
was introduced as the benchmark for secured Since June 2006, the STEP initiative aims
money market transactions in the euro area, is at fostering the integration of this market by
the rate at which one prime bank offers funds promoting convergence of market standards.
in euro to another prime bank in exchange for In 2007, more than half of the outstanding
EUREPO general collateral (GC). The fact euro-denominated commercial paper has been
that EUREPO GC is clearly and uniquely assigned the STEP label and its share
defined for all market participants facilitates substantially expanded, even in a period of
cross-border trades and therefore promotes contraction of the entire market [24]. The
repo market integration. segment has therefore the potential to become
As far as the integration of these markets a truly integrated euro area market, of a
is still hindered by the differences in national dimension comparable to that of the US
legal and tax frameworks and by the market.
persistent fragmentation in national clearing Meanwhile, the markets for euro-
and settlement infrastructures that make denominated derivatives have expanded
difficult the cross-border movement of the significantly beyond the size implied by
collateral. However, the implementation of legacy currencies, partly reflecting an
the Financial Collateral Directive (FCD) has explosive growth trend in such instruments on
reduced the national legal differences and has a global level, but also the absence of
contributed to the grater usage of cross-border liquidity in underlying cash securities.
collateral. Interestingly, the vast bulk of activity in euro-
Although a source of inefficiency, denominated derivatives markets takes place
segmentation in these markets was not outside the euro area in London.
considered to be a major opportunity cost for Like the unsecured lending market, the
the euro area economy so long as the inter- euro area interest rate swap rapidly became
255
highly integrated following the introduction somewhat compared with domestic

of the euro in 1999. Price-based measures of transactions.
integration in the euro area interest rate swap At first glance, this finding seems to
market confirm that this segment indeed indicate a breakdown of the cross-border
already enjoyed a very high degree of market with a possible segmentation of
integration shortly after the euro’s money markets across the euro area. The
introduction. On the whole, all evidence price for these transactions lowered in
suggests that the euro area interest rate swap comparison with domestic trades. Thus, a
market is not only extremely large and liquid, more likely interpretation seems to be that, as
but also one of the most integrated in the euro a result of the turmoil, cross-border inter-bank
area financial landscape. trades are now conducted mainly by banks
The integration of swaps and future with a relative high credit standing, who act
markets is significantly higher than the cash- as money centres in the different countries of
based markets, reflecting the greater the euro area. The higher average quality of
concentration in the derivatives markets cross-country borrowers is reflected in the
among larger, more sophisticated institutions. lower interest rates. Other, most likely smaller
However, the short-term securities or less known banks are mainly trading in
markets are the least integrated component of domestic markets, where interest are higher,
the money markets: a basic obstacle to a because the average credit risk is perceived to
unified short-term securities market has been be higher. Thus, in the cross-border context,
the diversity in norms and definitions in the the events seem to have enforced a two-tier
design of short-term securities contracts. system of the money market, in which smaller
In respect with the longer-term debt banks rely on liquidity provision by
securities, the integration of this market has internationally active money centre banks.
been impressive. For sovereign debt, spreads During the financial turmoil, the increase
across member governments are small in perceived liquidity and credit risks
relative to the pre-EMU patterns and can be generated a sharp increase of volatility and a
related to differences in liquidity properties decline in trading activity in the euro area
and credit risk. market not only for inter-bank unsecured
loans but also in segments of the secured non-
4. Main features of the money market in government repurchase agreements (repo)
the light of the financial crisis markets. Many banks no longer accept certain
asset types (i.e. ABSs and CDOs) as
The European money market has been underlying collateral in repo transactions.
particularly hit by the turmoil. In our view, Even in those secured money market
asymmetric information on credit risk played segments with high quality collateral,
a crucial role in the transmission of the US turnover has decreased. The reduction in
sub-prime mortgage market credit shock to turnover in these markets has two causes.
this market. Transactions volumes, especially First, because market participants are
for longer maturities, have declined, and uncertain about counterparty risk, they have
unsecured rates have been characterized by cut their credit lines and reduced their loan
unusually high elevated spreads. As the volumes markedly.
financial turmoil unfolded, the dispersion of Second, increased uncertainty about their
inter-bank lending rates across countries liquidity needs has led to liquidity hoarding.
reached unprecedented levels compared with The dramatic increase in perceived liquidity
those observed before the crisis began and and credit risks had a major impact on the
even in the initial stages of the turmoil in the rates, the volatility and spreads prevailing in
summer of 2007. Moreover, there are the euro area money markets.
indications of emerging differences between The cross-sectional standard deviation of
domestic and cross-border rates in the the EONIA lending rates across euro area
unsecured money market. In particular, the countries clearly signals tensions in the
volumes of cross-border trades declined money market. After having reached its
256
lowest level of 1 basis point in 2006, the guarantee of collateral, and the derivatives
standard deviation suddenly increased to 4 markets.
basis points in mid-2007 before reaching a Relatively less integrated segments of the
peak of more than 15 basis points in October market include the repo market, in which
2008 [18]. These developments closely participants exchange short-term liquidity
followed the different stages of the financial against collateral, and the short-term
crisis. securities markets (T-bills, commercial paper
Increased concerns about the and certificates of deposit).
creditworthiness of counterparties and Recent developments suggest that the
uncertainty about their own liquidity positions turmoil is having a significant impact on euro
prompted banks to hoard liquidity and to lend area financial integration in certain sectors:
funds only for the shortest maturities or only most notably, in the unsecured inter-bank
against higher-grade collateral in secured market and in the government bond markets.
markets. Cross-border inter-bank activity started to
In the unsecured segment, liquidity decline in certain areas in autumn 2008. We
became very scarce at maturities beyond one believe that this reversal in trend can be
week, even disappearing at longer maturities. linked to transitional factors, including
Most inter-bank unsecured lending increased credit risk variance amongst
concentrated on the overnight maturity, but intermediaries and a temporarily higher home
even overnight liquidity remained scarce. The bias for financial transactions. As such, this
2007/2008 turmoil has led to increased change in direction should not be seen as a
segmentation in the euro area money market clear signal of a permanent worsening in the
[6]. level of market integration. It is clear that
Asymmetric information problems have further information and time is needed to shed
been a central feature of the malfunctioning sufficient light on these developments so that
of the money markets. This has led to a two- we can be in a position to accurate judge the
tier market structure, with the larger banks situation.
possessing the highest credit standing active
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258
THE IMPLICATIONS OF ECONOMIC AND MONETARY UNION IN SUSTAINING

EUROPEAN CORPORATE BOND MARKET INTEGRATION

“Alexandru Ioan Cuza” University, Doctoral School of Economics, Iaşi, Romania
andreea_avadanei@yahoo.com
Sorin Gabriel Anton, University assistant, Ph. D.
“Alexandru Ioan Cuza” University, Business Administration Department, Iaşi, Romania
sorin.anton@uaic.ro
Abstract. The scope of this article is to point out the features of the European corporate bond market, in particular its
development since the introduction of the euro. This market, including the debt securities issued by non-financial
corporations, non-monetary financial corporations and monetary financial institutions, is economically important, as it
contributes to the allocation of funds to their most profitable uses. Its rapid growth since the introduction of the euro
can be explained by developments in economic activity, the costs of issuance and mergers &acquisitions-related
activity. The adoption of the common currency had a direct and permanent effect on debt securities issued by non-
monetary financial corporations. However, the use of corporate bonds at the euro area level is not uniform across
countries. Country-specific factors continue to matter, despite the fact that financial markets are gradually becoming
more integrated.
Keywords: European financial integration, corporate bond market, euro, economic importance, market segmentation.
JEL Classification: E44, F34, G15, G30.
1. Introduction of the common currency on the primary

market for corporate bonds remains
The European Monetary Union (EMU) controversial. The debate focuses on whether
has probably been the single most important the increase in corporate debt securities
policy-induced innovation in the international issuance since 1999 is caused by short-term
financial system since the collapse of the corporate restructuring and liberalization in
Bretton-Woods system. It has opened the the telecommunications industry (i.e. mergers
possibility for the creation of a new, fully &acquisitions activity-M&A) or whether is
integrated continental financial market, of the the result of the introduction of the single
same scale as that of the United States. By currency. The main economic argument for
eliminating exchange risk, EMU has the latter is that euro has made corporate debt
eliminated a key obstacle to financial securities financing more attractive by
integration. Before EMU, otherwise identical creating a much larger home-currency
financial claims issued in different euro area investor base than existed for any of the euro
currency were imperfect substitutes and area countries before the introduction of euro.
traded at different prices. EMU has The present paper is structured on the
eliminated this source of market following main research directions:
segmentation. the economic importance of the
The advent of the European Economic corporate bond market;
and Monetary Union is regarded as a crucial the euro implications regarding its
driving force of European financial evolution and dynamic;
integration. One of the most dynamic the degree of financial integration.
developments in the euro area during the
stage three of EMU was the expansion of the 2. The economic importance of the
market for corporate bonds. The abolition of corporate bond market
currency risk, as a result of euro introduction,
together with increased bond standardization The bond market plays a very important
is widely seen as the main factors behind role in the financial systems of our
European bond market integration. Although economies. Bond markets bring lenders and
the growth of the euro-denominated private borrowers together. They allow lenders to
sector bond market is impressive, the impact invest in relatively low risk assets and
borrowers to obtain funds in relatively liquid currency market. Together with prospects of a
markets. Bond markets are important in gradual removal of various financial barriers
determining the prices of other assets, and for many companies it enabled large issues to
bank interest rates usually follow market- be syndicated over many more investors in
determinate interest rates on bonds. The the euro zone;
prices determined in the bond markets affect the EU Stability and Growth Pact
household decisions to save and the corporate prescribing that the governments of EMU
sector’s investment decisions. countries reduce government debt;
In the United States, the bond market is a move away from equities by market
about the same size as the stock market. In participants, which was spurred by the decline
Europe, bonds amount to approximately two- in most European economies and bad
thirds of the total amount of securities experiences with Internet/IT hype;
outstanding. But the distribution of the total a change in bank behavior. In the
debt differs significantly between Europe and aftermath of the end of the Internet bubble,
the US. In Europe, the bond market is banks also tightened their lending policies to
dominated by government bonds and bonds defend against corporate defaults. The banks
issued by financial intermediaries. In the US, became quite reluctant to provide corporate
the proportion of bonds issued by the non- loans and instead preferred bonds;
financial corporate sector is much larger. In very large growth in credit
addition, municipal bonds and agency bonds derivatives;
are major components of this market. the advent of the electronic trading;
Moreover, at least in Europe, it is difficult and increased savings together with future
costly to short sell corporate bonds (Biais, prospects of increased liabilities of
2006). This further reduces the liquidity of the institutional investors. These investors,
corporate bond market. The European bond mainly pension funds and insurance
market shows broad similarities with the US companies, lave long-term obligations and
market [1]; in particular, the average spreads have to match their assets and liabilities. That
increase both by credit risk and by maturity is why they are, to a large extent, committed
and there is evidence of a strong correlation to investing in bonds, government as well as
between credit spread and the determinants of corporate bonds. Moreover, they care more
interest rate term structure. However, their about avoiding loss than picking winners, so
results are based on a rather limited period investments in equities and real estate are
when the euro corporate bond market was not relatively less attractive. As investment
ye well developed. performance is of relevance one looks to yield
Corporate bond markets were almost to maturity and the spread over government
nonexistent for European non-financial bonds or interest rate swaps and for portfolio
institution in 1998. So were markets for development to indices and/or the
“junk” bonds. These markets emerged as the performance of peers.
pool of potential investors increased For several reasons, the existence of a
following the adoption of the euro. But robust corporate bond market (direct finance)
corporate bond markets as a whole underwent alongside a sound banking system (indirect
a substantial development. Today, the finance) is an important feature of a well-
European market is almost twice the size of developed financial system.
the US corporate bond market, which has First, under usual credit conditions,
been driven by a number of factors including: corporate bonds provide a greater degree of
lower bond market transactions cost flexibility than bank loans, which are subject
caused, in particular, by the introduction of to stricter covenants and narrower investment
the common currency at the beginning of the conditions. In general, a well-developed
1999. The euro also acted as a catalyst for corporate bond market is beneficial in
further corporate debt development and was a smoothing the financing of firms, as it can
driving force towards more transparency and provide funds that are complementary to
uniform pricing as it led to an enlarged single bank-based debt or equity [7].
260
Second, a well-developed financial sector, to illuminate the operation of the stock

in which there is a deep and liquid market for markets. We now have well-defined measures
bonds that are either rated below investment of transaction costs (i.e., the effective spread),
grade or unrated, facilitates the establishment and numerous empirical studies documenting
of innovative new business and the the consequences of several features of the
transformation of medium-sized firms into design of these markets. In contrast, there are
large enterprises. only a few studies on the corporate bond
Third, the market pricing of corporate market, most of these on US Treasuries. But
bonds takes place on a continuous basis this market is extremely liquid and active, and
through the interplay of market participants. liquidity is likely to be very different in this
As a result, the quality of credit is monitored setting than for corporate and municipal
by a large number of market participants on a bonds.
continuous basis, which means that a
financial system with a well-developed 3. The implications of the common
corporate bond market provides immediate currency on the corporate bond market
discipline for the activities of corporations growth
through the price of their marketable
liabilities. The corporate bond market in Europe
Fourth, from a macroeconomic experienced a major change in 1999, when
perspective, the corporate bond market is a issuing volumes more than doubled from
useful source of information on future $273 billion to $657 billion. While the 1998
economic activity and current credit issuing volume in the euro area was less than
conditions in the economy. Finally, 26% of that in the US, the 1999 volume was
developments in the corporate bond market more than 74% of the US level [5]. Part of
may affect the costs and scope of financial this surge probably reflects exceptional and
intermediation and therefore the monetary transient factors. First, the financial crisis of
policy transmission process. In addition, firms late 1998 resulted in catch-up issuing activity
face an external finance premium on bond in early 1999(which, however, was equally
financing, which, in turn, may be affected by relevant for the US as for the Europe).
the stance of monetary policy. Second, the desire to set benchmarks with
A market so important should operate euro issues pushed issuers to go to the market
well. For the corporate bond market, this earlier and in more concentrated volumes than
means both efficiency and liquidity. Efficient they might have been chosen otherwise.
bond prices, incorporating all available The relatively small corporate bond
information, will be better signals to investors market in Europe until the late 1990s is
and savers than if the markets did not mirrored by the correspondingly greater
incorporate relevant information fully into importance of bank lending. While in the US
prices. Liquid bond markets bring bank loans play a negligible role in the
transactions costs down for investors, who financing of large companies and face strong
therefore achieve greater gains from trade, competition from the bond market even for
and they minimize the cost of funds to firms. medium-sized companies, they have been
Despite the key role of the corporate bond traditionally the dominant source of debt
markets, there has been much less academic financing for almost all European companies,
attention devoted to bond markets than to even the largest ones.
equity markets. The big gap is in the This feature of the European corporate
empirical work, and the main reason for this finance began to erode in the second half of
is the data availability. Since the 1990s, the 1990s. It is difficult to tell whether the
several stock exchanges (including the change towards a stronger reliance on bonds
London Stock Exchange, the New York Stock have been driven mainly by firms or by the
Exchange and the Paris Bourse) have banks themselves. Part of the explanation is
disseminated rich, high-frequency data. Many certainly the increasing reluctance of
academic studies have relied on these datasets European banks to provide traditional loans,
261
which inflate the asset side of balance sheets area market to grow at the same rate as in the
and thus depress key earnings ratios and US. In both cases, the average annual growth
require higher regulatory capital. But the rate since the introduction of the euro stood at
introduction of the euro has clearly been a around 10%. This contrasts with the situation
crucial event also for the other side of the prevailing before the introduction of the
market: companies have seen the opportunity common currency when the growth rate for
of accessing a larger pool of investors and the euro area market (4.9%) was on average
diversifying their liabilities, so as to provide nearly a third of the growth for the US market
some competition to their banks financiers (12.6%) [3]. By comparison, the growth of
and decrease their vulnerability to credit this sector in Japan is much lower than in the
crunches. euro area and the US for the entire period
As in the public sector, bond issuance ranging from January 1999 to December
policy in the private sector changed 2008. Much of the euro area growth for
fundamentally in Europe in the late 1990s. financial debt securities since the introduction
For example, the size of the largest issues of the euro has been driven by non-monetary
increased substantially. While in 1998 there financial corporations. Bonds issued by these
were just three bond issues in euro legacy entities primarily involve the securitization of
currencies above the equivalent of 1 billion assets by means of dedicated financing
euro, the three issues by Tecnost, the vehicles, such as special purpose vehicles.
financing vehicle for Olivetti’s takeover of From the perspective of the originator, i.e.,
Telecom Italia, in June and July 1999 alone the borrower, which is usually a financial
raised 15.65 billion euro [10]. Although these institution, the main motivations for
issues were widely perceived as exceptional, securitization are regulatory, risk
issues sizes in general in Europe increased management, or funding needs.
significantly since 1999, with issues above 1 The boom of the corporate bond market
billion euro becoming more and more after 1999 was stronger in the euro area than
frequent. outside and the introduction of the euro was a
Furthermore, the quality range of bond major causal in this development (Rajan and
issues expanded significantly. In particular, Zingales, 1998). That the development of an
the average credit rating issuing companies active euro-denominated corporate bond
fell significantly since EMU. While European market is the true success story of EMU is
bond markets used to be dominated by AAA confirmed by the great liquidity of the market.
and AA issues, almost 50% of all corporate The outstanding amounts of corporate bonds
bonds issued in 199 had a single A credit in the Euro area has increased from 2.700
rating. billion euro in 1998 to about 6.000 billion in
Despite being relatively small, the euro 2006 [11].The euro is, with a share of 90%,
area corporate bond market has largely the predominant denomination of bond issued
outpaced the growth in this sector in the by Euro area residents.
United States and Japan since the introduction What have the impacts of the euro been
of the euro. As regards issues by non- on the current state of the corporate bond
financial corporations, the average annual markets? It has played an important
growth rate in the euro area between January catalyzing role for deepening and broadening
1999 and December 2005 was higher than in on the euro area bond markets. Several
the US and Japan by around 10 percentage implications of the single currency on the
points. This contrasts with the situation process have become evident over the last ten
prevailing before the introduction of the euro years, although the time span since the
when the growth rate of non-financial introduction of the common currency is still
corporate debt securities was considerably short for definitive conclusions. Parallel to the
lower in the euro area compared to both US euro’s catalyzing role, a host of other factors
and Japan. might have contributed to corporate bond
The rapid growth of debt securities issues market developments. These include the
by financial corporations has enabled the euro various steps taken towards gradual economic
262
and financial integration, structural and typical example was the 1 billion euro issue
technological changes, globalization and of Alcatel, the French telecom firm, in
liberalization. February 1999, 28% of which was placed
The growth of the corporate bond market with Italian and more than 20% with German
since the introduction of the euro is due to the investors. A similar example was the 1999
confluence of a host of supply and demand issue by Principal Life, a US insurer; 30% of
related factors, not all of them directly related this deal was sold in France-in the past they
to the catalyzing influence of the single might have sold 3% there.
currency. With regard to demand, the possibilities
From a supply or issuer perspective, for diversifying risk across euro area
corporate bond issuers started to have a euro government bond markets have declined
area wide perspective and benefited from further since the introduction of the single
easier access to the larger home-currency currency, because the possibility of exploiting
institutional) investor base, in particular the currency diversification to achieve higher
ability to issue in size. In the early years of rates of return at a given level or portfolio risk
the euro, the ongoing process of corporate has ceased to exist. As a result, investors
restructurings, privatizations of state started to invest in euro-denominated
companies, and liberalization in many product corporate debt securities, which offer an extra
markets resulted in a strong demand for M&A yield compared to government bonds. This
related funds. These funds, in turn, were in extra yield is particularly appealing to the
part funded by bonds. Most notable was a investors, including pension funds that are
strong demand for funds by used to investing in fixed income government
telecommunication companies to finance the bonds that offer a high nominal rate of return
growth of mobile telephony and the costs of in many euro area countries.
wireless services. Industrial energy, power At a general level, investors no longer
companies were, before and after 1999, needed to diversify exchange rate risk across
generally among the most important non- euro area countries. Investment strategies
financial corporate issuers. Much of the based on cross-currency yield arbitrage and
supply-side development is undoubtedly due directional bets on national interest rates
to the boom of some industries such as become obsolete in January 1999. The single
telecommunication, which were liberalized currency encouraged bond investors to focus
and deregulated in the late 1990s in many more closely on the assessment and pricing of
western European countries. The resulting credit risk and they started to educate
restructuring and consolidation fuelled a wave themselves in the evaluation and management
of mergers and acquisitions that were largely of credit risk and developed an increased
financed by bonds. After the collapse of the appetite for it.
equity market in 2000 and the worsening of On the same demand side, the
the commercial paper market in the early introduction of the euro opened up new
2000s, the bond market gained particular investment opportunities especially for
importance as a source of long term funding. internationally operating institutional
At the same time as the supply of the investors such as investment funds and
euro-area bonds increased and issuance insurance companies as the launch of the euro
policies converged, geographical meant the abolition of earlier contractual or
diversification increased strongly in the euro statutory restrictions on their involvement in
area bond portfolios on the demand side. This foreign debt markets. In addition, to such
change was felt most dramatically with structurally higher demand, temporary factors
private issues. While until 1998 bond have recently also helped to make corporate
distribution in the euro zone for all but the bonds more attractive. One factor was that life
very few largest firms was almost exclusively insurance companies and pension funds
domestic, the larger bond issues already in switched from equities to bonds, leading to
1999 were sold on a truly European scale that great demand for such paper. Moreover, the
even surprised most market participants. A decline in yields in the market for government
263
bonds encouraged investment in higher- write-downs, i.e. internally, whereas, in the

interest-bearing and more risky corporate wake of the technology boom, numerous
bonds. mergers and acquisitions as well as the
The expansion of the market for corporate buying of the UMTS licenses(Universal
bonds over the past few years was due, in Mobile Telecommunications Systems-
particular, to the financing behavior of fairly licenses), the demand for external funds
large companies which have made increasing increased perceptibly. This stimulated their
use of the bond market as an alternative to issuing activity in the euro area bond market.
bank loans and internal financing. The main Empirical studies on companies’ issuing
agents in these developments have been the behavior show that the corporate mergers and
complete liberalization of capital transactions acquisitions in the late 1990s in particular
in all countries in the EU as well as the fact brought with them an increased need for
that there is now no exchange rate risk financial resources.
following the introduction of the common The buying of enterprises was not always
currency with the earlier segmented markets financed directly by the issuance of bonds.
of the various countries participating in EMU Instead, it was often the case that banks first
having become integrated. For the enterprises, granted bridging loans. An additionally
the expanded, and therefore, more liquid empirically relevant factor in the decision to
market opens up the opportunity to place even issues bonds concerns the cost of bond
large volume issues on favorable terms and financing when compared with the cost of
conditions. Furthermore, there are indications other forms of financing such as share
that the direct issuance costs have fallen issuance or bank loans. A higher stock market
owing to keener competition among the evaluation tends to lower he issuance volume
investment banks in the wake of the monetary ob bonds. Conversely, the week equity market
union. The increasing risk orientation in of the past few years appears to have
banks’ lending business, too, is likely to have encouraged the corporate sector in issuing
had an impact on the market for corporate activity. Alongside other forms of financing,
bonds. borrowing via the bond market offers
The development of the prudential enterprises an additional option for raising
regulations and especially the new Basel capital. Following the end of the technology
Accord (Basel II) has led to the banks and takeover boom as well as the slump in
improving their procedures for measuring and stock market prices, these temporary factors
controlling credit risks. In turn, this has became less important from 2000. Between
resulted in a more risk-appropriate pricing of 1999 and 2001, the external financing of non-
loans. As a result, particularly for larger financial corporations exceeded their internal
companies, there is greater substitutability- financing, but declined noticeably thereafter.
and therefore, competition-between bank As a result of the slump in investment after
loans and debt issuance. Finally, the the bursting of the technology bubble, the
liberalization of important markets outside the subsequent more subdued issuing activity of
financial sector has also left its mark on the German companies and very week bank
market for corporate bonds. Deregulation in lending, internal financing became the
the case of many European enterprises, first predominant form of financing again in 2002.
and foremost in the telecommunications Tentative empirical evidence for the first
sector, let to the emergence of a large ten years of the euro suggests that the single
borrowing requirement that was partially currency had indeed a statistically sizeable
covered by the issuance of bonds. direct impact on bonds issued by non-bank
Temporary factors have also played a part financials (De Bondt and Lichtenberger,
in the past few years. For example, German 2004). This permanent effect had been
enterprises’ inflows of funds have been estimated to have positively affected the non-
subject to sharp fluctuations. Prior to 1998, financial bond market growth by 5.5% on an
German companies financed themselves annual basis.
predominantly through retained profits and
264
Securitization transactions benefited after the introduction of the TRACE system

especially from easier access to much larger (Trade Reporting and Compliance Engine),
investor base. The idea of a truly integrated which increased post-trade transparency in
euro area financial market has also had an the US. This is due to the integration of the
indirect effect by triggering a wave of European corporate bond market since the
mergers and acquisitions that in part has been advent of the euro, which allowed investors
funded by bonds. The size of this indirect from all European countries to trade in the
impact of the euro on the bond market growth same market, thus attracting a large pool of
has been estimated to have been up to 2.5% professional intermediaries to compete in
on an annual basis. providing liquidity.
The introduction of the single currency The European Central Bank proposed a
created an opportunity to erode the set of financial integration measures, based on
segmentation of national financial markets by the law of one price (LOOP) and applied
transforming them into a deep and liquid euro them to euro area bond markets. These
area-wide market. Although the corporate measures focus on corporate bond yields and
bond market has grown very rapidly ant the investigate whether they still depend on the
euro area aggregated level since the adoption country in which a bond was issued. The
of the common currency, the trend towards results show that the state where a bond was
increasing direct access to bond markets is all issued only has marginal explanatory power
but uniform across the euro area countries. in relation to a cross-section of corporate
The varying benefits of corporate bond bond yields spreads, which suggests that the
issuance is a reflection of the fact that corporate bond markets of the countries that
institutional and fiscal frameworks, as well as have been analyzed (Austria, France,
other historically determined characteristics Germany, Ireland, the Netherlands and
that shape financial structures, differ widely Spain), are reasonably well integrated with
from one country to the next. In addition, the each other.
financing needs that are meant to be funded Another indicator of the increasing
by these bonds may differ across euro area financial integration of the various euro area
countries. bond markets is provided by developments in
In general, for instance, the rapid growth the area of euro-denominated corporate bond
of the corporate bond market since 1999 has underwriting by large international
been closely linked to a wave of mergers and investment banks, which often focus on
acquisitions, although the impact of the latter internationally-traded securities.
on the economies of the euro area has varied. Before the introduction of the common
currency, firms wishing to issue bonds in a
4. The degree of the corporate bond foreign market would usually have to select
market integration an investment bank with marketing and sales
experience in the currency of the country
Reference [2] analyzed the degree of concerned. After the introduction of the euro,
integration of the corporate bond market however, underwriting became a more
under EMU, taking into account than competitive business and underwriting fees
corporate bonds differ in several key respects went down. The most important euro area
other than the country of issue(time-profile of underwriters are banks from the largest euro
the cash flow, likelihood of default, liquidity). area economies, i.e. Germany and France, and
They find that yields are mostly driven by from Spain and Netherlands. On the whole,
common factors, while the effect of the the nationalities of underwriters and issuers
country of issuance is extremely small. This are not necessarily linked. Despite the
suggests that the corporate bond market too impetus from the introduction of the single
has achieved a remarkable degree of currency, the overall level of most issuance in
integration. Euro-area corporate bonds have the euro area is lower than in most benchmark
narrower bid-ask spreads than comparable countries. The extent to which integration in
sterling- and dollar-denominated bonds, even this market has progressed can be assessed by
265
measuring the relative importance of country towards the adoption of the common currency
components versus common factors in policy, has resulted in an enhanced degree of
explaining risk-adjusted yields. As integration financial integration. These markets in the
advances, the proportion of the total yield European Monetary Union have fully
spread variance explained by country effects converged towards the introduction of the
should decrease. The respective indicator euro. However, the effect of convergence has
shows that the euro area corporate bond not yet fully been explored on its
market is quite well integrated. Country determinants. It should not be taken as
effects explain only a very small constant granted that the monetary unification,
proportion of the cross-sectional variance of although being of crucial importance, is the
corporate bond yields. unique deterministic factor of the corporate
Also, quantity-based indicators point to an bond market integration process in Europe.
increasing degree of integration in the
corporate bond market. For instance, holdings 5. Conclusion
of long-term debt securities issued by euro
area country governments and non-financial An important feature of a well-developed
corporations held by residents of other (non- financial system is the existence of a mature
domestic) euro area countries have continued and robust corporate bond market, which
to increase in the last ten years, although there works alongside a sound banking system. The
was a small decrease in the last observed existence of such a market appears to be
period. In the case of monetary financial positive for economic development, as it
institutions, cross-border holdings of debt allows corporations and banks to raise funds
securities increased from about 15% to nearly more quickly and more flexible terms than
40%. In particular, the holdings of debt would otherwise be possible.
securities issued by non-financial The catalyzing influence of the euro on
corporations have increased markedly from a the deepening and broadening of the
very low level, suggesting that investors are corporate bond markets in the euro area has
increasingly diversifying their portfolios added the diversification of corporate
across the euro area. The decline-starting in financing needs and led to greater economic
2006-in the proportion of cross-border euro benefits of having multiple avenues of
area holdings of government bonds reflects a corporate finance. Additional advantages
substitution between government and seem possible, given the fact that bond
corporate bonds in the portfolios of MFIs financing by different types of corporate
(Monetary and Financail Institutions). issuers are not in all euro area countries at
This in turn can be explained by MFIs levels that would have been expected from
diversifying their investments in search of the size of their economies.
higher yields in the fixed income market. This The developments in euro area corporate
trend has come to a halt and begun to reverse bond issuance can be explained by
since the start of the turmoil. movements in economic activity, the costs of
Euro area corporate bond market issuance and M&A-related activity. The latter
integration is clear from the minimal role of reflects financing needs related to corporate
country effects in determining yield spreads. restructuring, which in turn may be partly
Moreover, effective bid-ask spreads in the related to the introduction of the single
euro area corporate bond markets are now currency. At the same time, the euro adoption
actually lower than in the United States [8]. has directly and permanently boosted the
The integration of corporate bond markets annual growth of debt securities issued by
greatly depends on the degree of integration non-monetary financial corporations by
of the underlying infrastructure, in particular around 4.5%. However, these developments
of the securities settlement systems (SSSs) are not uniform across euro area countries. In
and central counterparties. fact, the use of corporate bond markets by
The European corporate bond markets borrowers varies substantially from one
convergence, which has depicted in the period country to the next, and markets are gradually
266
becoming more integrated. This suggests that Economic Review, No 208, SAGE Publications,
there is further scope for integration in the pp. 6-11, 2009.
[6]. De Bond, G., Lichtenberger, J. D., “Empirical
euro area corporate bond market. estimates of the impact of the euro on the
corporate bond marketin the euro area”, Applied
References: Economic Letters, Volume 11, Issue 11, pp. 5-10,
2004.
[1]. Annaert, J., De Ceuster, J.K.M., “Modelling [7]. Philip, D., Stone, M. R., “Corporate financial
European Credit Spreads”, Discussion Paper, structure and financial stability”, International
Deloitte&Touche, Belgium, 2000. Monetary Fund Working Paper 04/124, pp. 33-
[2]. Baele, L., Fernando, A., Hordahl, P., Krylova, 40, 2004.
E., Monnet, C., “Measuring European Financial [8]. Portes, R., “The integration of financial markets:
Integration”, Oxford Review of Economic Policy, why has it not happened yet?”, London Business
Volume 20, No. 4, pp. 23-28, 2004. School, CEPR and NBER, NBER Conference:
[3]. Berg, J., Grande, M., Mongelli, F. P., Elements of “Europe and the Euro”, Milan, 2008.
the Euro area: Integrating financial markets, [9]. Rajan, R. Zingales, L., “Financial dependence and
Ashgate Publishing Limited, England, 2005. growth”, American Economic Review, Volume
[4]. Biais, B., Declerk, F., Dow, J., Portes, R. Von 88, No.3, pp. 45-48, 1998.
Thadden, E.-L., “European corporate bond [10]. Schultz, A., Wolff, G. B., “Sovereign bond
markets: transparency, liquidity, efficiency”, market integration: the euro, trading platforms
Centre for Economic Policy Research, London, and globalization”, Discussion Paper Series 1:
2006. Economic Studies, No 12/2008, 2008.
[5]. Buti, M., Van den Noord, P., “The euro: past [11]. ***European Central Bank, “Financial integration
successes and new challenges”, National Institute in Europe”, 2009.
267
ENTERPRISE PERFORMANCE ASSESSMENT THROUGH THE INCOME, IN TERMS

OF APPLYING NEW ACCOUNTING REGULATIONS

rm.dicu@yahoo.com
mardirosdaniela@yahoo.com
Abstract: Information is the only inexhaustible resource, a true power factor, an asset which directly affects decisions
of organizations acting on different specialized markets. The accounting rules evolve having as primal purpose
collection, processing, and reporting of specific information. In this regard, with effect from January 1, 2010, OMPF
no. 3055/2009 does not modify the format of financial statements, but it adapts the actual chart of accounts for a fair
financial reporting. The purpose of this study is to determine which are the perspectives in the performance assessment,
according to national and international regulations, and how the changes in the chart of accounts influence on the
determination of the income. Thus, the importance of correctly assigning revenues and expenses to time periods,
including the correct identification of gains and losses, is pivotal in the determination of income. It probably goes
without saying that reported income is of great concern to investors and creditors, as main sources of financing the
enterprise activity.
Keywords: performance, net income, economic income, comprehensive income, connecting expenses to revenues, gains
and losses
JEL Classification: M 40, M 41, M 48.
Introduction combines the Statement of income and the

gains/losses quantified directly in equity
The concept of performance is elements. This evolution of the income
differently interpreted by the users of answers more effectively to the definition of
accounting information, according to their performance, which is the ability to access
interests. Managers are focused on global resources and use them effectively (efforts) to
performance (financial and non-financial), ensure adequate remuneration (effects) to
current and potential investors are interested cover the risk assumed and to justify the
in the profitability of their investments, interest of investors and other stakeholders on
employees in stability and profitability of the the future path of sustainable development.
company, creditors in creditworthiness of the
company, trading company in its stability. In The limits of the net income, as a valuation
summary, performance measurement is based of the financial performance
on the objectives of users.
Business’s profit or loss is commonly Related to the IASB framework, the
used as a performance assessment. Therefore, concept of performance was included in the
users want to know how the result was Romanian accounting legislation with the
obtained, which were the streams of revenues same meaning - revenues, expenditures and
and expenditures, explaining the result. In the the size of the result obtained by the
face of such information requirements, the economic entity, in terms of reporting on
Balance sheet appears to be limited, so it is economic benefits and their implications for
currently filled by the Profit and loss account the economic resources available to the entity
and the Statement of changes in equity, to (Gîrbină M.M., Bunea Ş., 2008).
extend the scope of analyzing the income of Financial performance is the objective
businesses, from the net income to the of any company and a motto for all the users
economic one. This point of view was of financial information. To meet their needs
extended to the concept of performance which as stakeholders, accounting standardization
IAS/IFRS is presently calling comprehensive bodies were concerned with finding models to
income, a new and improved situation which reflect business performance information.
268
Thus, the income statement and the statement of information on company performance
of changes in equity / the statement of gains (Walton, P., Haller, A., Raffournier, B.,
and losses are, on the line of equity research, 2003).
components of financial statements’ "supply"
Fig. 1 – The objective of financial performance according to IASB Framework
In the general context of applying generate value, but rather lead to permanent
international rules, all that was representative loss of value.
in measuring a company nationwide lose the Romanian accounting regulations and
importance when it comes to international more specifically OMPF no.3055/2009 made
alignment. In this context, the term governing steps that were needed and very clearly
is “value” and the major objective of defined in terms of representation of these
maximizing the value of the company has revenues and expenses in profit and loss
become global. This objective can be account. In this case, we consider the
achieved only by creating value throughout introduction of new expenses accounts,
the company. especially accounts related to compensation
Traditional financial indicators reflect of employees and trade discounts, and also
the historical performance of companies with clarify the status of Revenues associated with
a limited relevance in predicting their future the cost of the completed production and
evolution. For example, the profit of the those associated with the cost of services in
company provides information about the progress.
ability to control costs and achieve higher Also, profit and loss separately recorded
revenues. Also, the rates of return, which gains/losses on property transactions (the
gives comparability across time and space, are distinct representation of Other operating
useful in assessing the efficiency of capital or expenses/Other operating revenues in the
assets, but their information content is limited Statement of income). The idea started from
to the historical results. Stock exchange the IASB Framework presentation of
incorporates not only information on the performance through revenues and
company's past financial performance, but expenditures, which includes gains and losses.
especially expectations of investors regarding The latter ones meet the definition of
future performance. Moreover, a classic revenues/expenses, they may or may not
financial indicator does not take into account occur as a result of current business activity,
the cost of capital invested in business, but the but they represent increases/decreases in
effects of their use. For this reason, although economic benefits.
apparently there are companies that have However, in applying new accounting
superior financial performance, they do not regulations, the income from the profit and
loss account does not fully show the
269
performance of the company or its results. It statement showing all changes in owners’
imposes a new requirement to present in a equity. Consequently, this component of the
primary financial statement those gains and financial statements must disclose the
losses currently not presented in the income beginning and ending balances for capital,
statement. These gains and losses which we reserves, retained earnings, profit or loss and
are referring to are resulting from the current their changes, including gains and losses on
activity, but both International Financial held equity instruments, with reference to:
Reporting Standards and the Romanian - The existing amount at the beginning
accounting regulations require their of the accounting period;
quantification directly in equity elements. - Amounts transferred to or from the
Although these items meet also the account during the year;
definition of revenue and expenditure, both - The nature, source or destination of
national and international accounting rules such transfers;
specifically require that they affect equity. - The amount remaining at the end of
These elements are a direct result of the the accounting period.
introduction of the valuation at the fair value In these conditions, the economic
of certain assets and liabilities, something that income is the difference between owners’
has changed perspective of both those who equity reflected In the Statement of changes
prepare financial statements and their users. in equity at the end of the accounting period
Until now, in the Romanian Chart of accounts and the amount from the beginning of the
are presented Gains or losses in respect of same period. This income is a stage in
issuance, redemption, sale, free transfer or quantifying the financial performance, which
cancellation of own capital instruments. includes the net income adjusted with the
In this way, first steps were made amount of gains or losses are due to
towards a revised Statement in changes in revaluation of tangible and / or intangible
equity, which should reflect the value and the assets and gains or losses in respect of
nature of the economic income. possession or trading of equity instruments.
Because this financial statement is mandatory
The statement of changes in equity and the for large companies and optional for small
economic income assessment and medium ones, the latter ones could
valuate the economic income using the
Changes in equity of the company Balance sheet.
between two balance sheet dates reflect the Statement of changes in equity and the
increase or decrease in net assets or wealth economic income represent the exhaustive
during the period, based on individual result of managing the economic resources of
assessment principles and methods adopted a company, which actually certifies the
and disclosed in financial statements. Except competence and legitimacy of its
for changes resulting from transactions with administration. Depending on the listed
shareholders such as dividends and capital information, investors will decide on the
contributions, the overall change in equity appropriate option, keeping the investment, its
represents total gains and losses arising from development, or withdrawal from the deal,
business activities during the period. This obviously by selling shares.
change is known as the economic income.
In order to explain the Statement of The comprehensive income, the
changes in equity according to Romanian international referential’s perspective of
accounting regulations, we must present this financial performance
financial statement according to IAS 1
“Presentation of Financial Statements”, as it is According to Romanian accounting
a standard that has inspired Romanian regulations, the coverage in annual financial
legislators (1). Companies which apply IAS 1 statements of the performance is done in two
are required to submit, as a separate stages: initially, by calculating the net income
component of the financial statements, a of the Statement of income, and then by
270
determining the economic income in the Public objective of this union was
Situation of changes in equity. established, a year later, on October 25, 2004
International regulations have changed and it was “setting standards for presentation
the perspective on performance, by creating, and need information about an entity's
justifying and imposing a specific financial financial position and performance” and
statement that reflect the comprehensive aimed in particular the presentation and
income. This does not exclude the profit and explanation of performance in the financial
loss account, but includes it, as we continue statements under IFRS and U.S. GAAP, on
this. the international convergence line. The first
In fact, was the comprehensive income Exposure draft was issued in 2006, leading to
calculation necessary? IASB's approach on the structure of financial statements of 2010.
this issue has seen some major steps and In accordance to IAS 1, it includes the
began when the group was questioned in a Statement of comprehensive income and the
single financial statement information on the Statement of changes in equity, the latter
performance of an entity, information actually detailing the evolution of components
contained in the Income statement, the Cash- of equity. Through this partnership, the IASB
flow statement and the Statement of changes has found solution to include comprehensive
in equity. IASB’s preferred title was income in financial statements, proposing a
“Comprehensive income statement” more new form of profit and loss account [Bertoni
than the alternative “Performance situation”, M., DeRosa B., 2010].
because it was seeking alignment with U.S. The theoretical concept of
body comprehensive income for the year is based
(http://www.iasplus.com/agenda/perform.htm, on the relationship:
2010). Comprehensive income for the year =
Thus, in October 2003, the International Net earnings in the income statement +/-
Accounting Standards Board (IASB) and its Adjustments to maintain capital +/- Other
U.S. counterpart FASB formed the so-called changes in equity recognized in profit or loss.
JIG (Joint International Group). Starting point Comprehensive income for a period
of this “merger’, originally called includes profit or loss for that period plus
“Performance Reporting: Reporting other comprehensive income recognized in
Comprehensive Income”, has its beginning in that period. Some IFRSs require or permit
American accounting “tradition”. Since that some components to be excluded from
October 15, 1997, the FASB implemented profit or loss and instead to be included in
FAS 130 “Reporting Comprehensive other comprehensive income. The
Income”. For fiscal years beginning after components of other comprehensive income
1997 December 15, SFAS 130 requires the include:
disclosure of both net income and a more ▪ changes in revaluation surplus (IAS 16
“comprehensive” measure of income which and IAS 38);
includes four items recorded as owners’ ▪ actuarial gains and losses on defined
equity under previous FASB benefit plans recognized in accordance with
pronouncements: adjustments to unrealized IAS 19;
gains and losses on available-for- sale ▪ gains and losses arising from
marketable securities (SFAS 115), foreign translating the financial statements of a
currency translation adjustments (SFAS 52), foreign operation (IAS 21);
minimum required pension liability ▪ gains and losses on remeasuring
adjustments (SFAS 87), and changes in the available-for-sale financial assets (IAS 39);
market values of certain futures contracts ▪ the effective portion of gains and
qualifying as hedges (SFAS 80), so FASB has losses on hedging instruments in a cash flow
had experience in this field. Great Britain has hedge (IAS 39).
imposed this indicator since 1992 by ASB’s In order to present the Statement of
Financial Reporting Standard 3 “Reporting comprehensive income, an entity has two
Financial Performance”. choices (IFRS, 2009):
271
▪ a single statement of comprehensive ▪ tax expense;

income or ▪ a single amount comprising the total
▪ two statements: of (i) the post-tax profit or loss of
- an income statement, displaying discontinued operations and (ii) the post-tax
components of profit or loss and gain or loss recognized on the disposal of the
- a statement of comprehensive income assets or disposal group(s) constituting the
that begins with profit or loss (bottom discontinued operation;
line of the income statement) and ▪ profit or loss;
displays components of other ▪ each component of other
comprehensive income. comprehensive income classified by nature;
According to IAS 1, minimum items ▪ share of the other comprehensive
on the face of the statement of comprehensive income of associates and joint ventures
income should include: (IAS 1.82) accounted for using the equity method;
▪ revenue; ▪ total comprehensive income.
▪ finance costs; A graphic form of comprehensive
▪ share of the profit or loss of income is presented in fig. no. 2:
associates and joint ventures accounted for
using the equity method;
Fig. 2 – The representation of comprehensive income based on information from financial statements
disclose some certain elements of financial
Applying the materiality concept (2), performance to help user groups of financial
certain items must be disclosed separately reports in making better financial
either in the statement of comprehensive performance evaluation. Also, comprehensive
income or in the notes, including: (IAS 1.98) income as a basic financial statement, should
▪ write-downs of inventories to net report in details all the recognized revenues
realizable value or of property, plant and and expenses of the firm. The focus of income
equipment to recoverable amount, as well as statement is on the operating revenues and
reversals of such write-downs; expenses. User groups of financial reports for
▪ restructurings of the activities of an decision–making require data related to all
entity and reversals of any provisions for the revenues and expenses (including gains and
costs of restructuring; losses). Therefore, a basic financial statement
▪ disposals of items of property, plant to include such items and to show changes in
and equipment; owners’ equity related to those items is
▪ disposals of investments; necessary (Dastgir M., Velashani A.S., 2008).
▪ discontinuing operations; Looking from a global point of view,
▪ litigation settlements; The statement of comprehensive income
▪ other reversals of provisions. provides better measures of firm performance,
Comprehensive income statement is a than other summary income measures. On the
measure of firm performance. The purpose of other hand, current operating performance
issuing this statement is to make firms to view of income states that net income without
272
inclusion of extraordinary and nonrecurring common, improved statement of performance.

items got better ability to reflect the firm’s Second argument takes into consideration the
future cash flows. valences of revenues and expenses, in one
hand, and gains and losses, on the other hand,
Conclusions whether the latter ones are or they are not
recognized directly in equity elements.
Performance is defined according to the On the other hand, current operating
company's ability to create value for all its performance view of income states that net
interest holders, i.e. shareholders, creditors, income without inclusion of extraordinary and
employees, suppliers, local community etc. nonrecurring items got better ability to reflect
Of course, company shareholders prevail, as the firm’s future cash flows.
they are also its owners. Appointed managers
must constantly seek to achieve this objective Endnotes:
by creating permanent value.
Information about a business [1] There is no mention of a Statement of changes in
performance, particularly about its equity in CEE 4th Directive, as a component of
financial statements.
profitability (its net income), is needed to [2] The materiality concept proposes paying attention
evaluate potential changes in economic to important events and ignoring insignificant
resources that the firm will be able to control accounting items. The extra effort required to
in the future. They are useful for anticipating process insignificant items is not cost effective.
business ability to generate cash flows using Definitive rules exist on whether an accounting
element is significant or insignificant. Therefore
the existing resources and to formulate decisions are based on both objective and
judgments about how effectively the company subjective criteria.
can use new resources.
Statement of changes in equity and the References:
economic income (the increase or decrease in
net assets or wealth during the period) [1]. Bertoni M., DeRosa B., 2010 - Complehensive
represent the exhaustive result of managing income, fair value, and conservatism: a
conceptual framework for reporting financial
the economic resources of a company, which performance,
actually certifies the competence and http://www.economia.unitn.it/michele.bertoni/file
legitimacy of its administration. /Bertoni-DeRosa_Performance.pdf
As presented, the net income and the [2]. Gîrbină Maria Mădălina, Bunea Ş., 2008 –
economic income are reflected in the financial Sinteze, studii de caz şi teste grilă privind
aplicarea IAS (revizuite) – IFRS, Editura
statements, as valuation of financial CECCAR, Bucureşti
performance, presented according to [3]. Dastgir M., Velashani A.S., 2008 –
Romanian accounting regulations. Comprehensive Income to Net Income as
Traditional focus on care and qualitative Measures of Firm Performance: Some Evidence
characteristics of financial information, found for Scale Effect, European Journal of Economics,
Finance and Administrative Sciences, Issue
in accounting regulation (national and 12/2008, www.eurojurnals.com
international – IASB/FASB), are held, in the [4]. Walton P., Haller A., Raffournier B., 2003 -
international perspective, to a different International Accounting, 2nd Edition, Thomson
concept of result, comprehensive income, Learning, London
which includes gains and losses, normally not [5]. ***, 2009 – Standardele Internaţionale de
Raportare Financiară. Norme oficiale emise la 1
included in profit and loss account. ianuarie 2009, Editura CECCAR, Bucureşti
The statement of comprehensive income [6]. ***, 2009 – OMFP nr. 3055 pentru aprobarea
provides, through its components, better Reglementărilor contabile conforme cu
measures of firm performance than other Directivele europene, M.Of. nr.766
summary income measures. First argument in bis/10.11.2009
[7]. http://www.iasplus.com/
this direction is the fact that both IASB and
FASB have converged their efforts to create a
273
FINANCIAL MEASURES OF RESPONSE TO THE PRESENT ECONOMIC GLOBAL

CRISIS
Professor Epure, Dănuţ Tiberius, Ph.D ,

„Ovidius” University of Constanta, Romania, epure_dan@yahoo.com
Teaching Assistant Cuşu, Dorinela,
„Ovidius” University of Constanta, Romania, cusudorinela@yahoo.com
Abstract: Worldwide countries, take measures to counter the effects of the financial and economic crisis. From a fiscal
perspective, the initiatives taken so far, range from formal "incentive" packages to ad hoc measures, temporary
provisions, and the introduction of planed measures or cancellation of others. 2009 budgets of different countries have
served as a platform for more provisions - in some cases; these provisions have as target the slowdown of the economic
downturn or to mitigate some effects of the crisis. It seems that in some cases, the planned measures that came into
force were not developed to meet the present economic challenges, but because of the urgency of the situation, these
measures have advanced through the legislative process more quickly than would be desirable. The study presented
below provides a summary of responses to the present crisis through tax and fiscal policies of various countries in the
world. The emphasis is on direct tax measures, on individual and corporate incomes. In this study we have analyzed the
anti-crisis measures taken by certain European countries like: Austria, Belgium, Italy, Czech Republic, Finland,
Hungary, and Bulgaria and we have focused on the anti-crisis measures taken by the United States of America and
Japan.
Keywords: crisis, economy, measures, fiscal policies, taxation
JEL Classification: G01, G17, G28
Introduction
1. Past and present economic evolutions
The economic activity, overall, does not
have a constant evolution; instead it presents Analyzing the evolution of the world
cyclical fluctuations, according to the economy in the past century, we remark a
economic conditions present in each period of trajectory resembling the present one. Thus,
the society’s development. The evolution of after the end of World War II, Europe was
the economy on the long term proved the beginning to recover after the damage it had
existence of a certain cyclical evolution. suffered. Nevertheless, at international level,
Thus, the changes recorded over time the economic situation managed to stabilize
emphasized that the economic boom periods by the end of 1920. Moreover, in the United
alternate those of recession. There is no well States of America, unaffected by war, the
established period regarding the duration of economy was having an unprecedented boom,
an economic or business cycle, but there is determined by the increase of production,
certain regularity in time, characterized by exports and revenue. This situation made the
specific features that denote the phase the European states, such as the Great Britain and
economic cycle is covering. In time, there Germany, which had been severely affected
have been established four phases of the by war, to demand the help of the United
business cycle: expansion, crisis, recession States of America, a move that lead to the
and recovery. recovery of their economies. Nevertheless,
Through this paper we intend to the European states dependency on the United
analyze the anti-crisis measures taken by the States’ economy is one of the reasons of the
foreign economies as a response of the diffusion at macroeconomic level of the crisis
present economic global. We decided to of 1929. The situation was as follows: the
analyze this subject because we to intend to booming economy determined an exaggerated
shape a summary of the actions taken by the optimism of the Wall Street American
analyzed countries in order to slowdown the investors that lead to resounding increases of
effects of the recession. Also we intend to the values traded on the stock market up to
find out the efficiency of this measures, for 1929, when it started to drop. The panic
the respective economies. created among the investors made them sell
their shares with the hope of recuperating the Firstly, the turbulences that appeared on the
invested amounts. On Black Thursday, 12 international financial markets were those
million shares were traded, and shortly after who led to a financial crisis in the initial
that, the New York Stock Exchange phase, starting with the bankruptcy of the
collapsed. By the end of the year, the crisis Lehman Brothers American Bank, together
had affected a good deal of the population of with the federal supervision of the two largest
the United States [1]. mortgage credit banks of the United States –
The spread of the crisis’ effect on the Freddie Mac and Fannie Mae. The problem of
European economies was obvious as these the shortage of liquidities that some banks
were largely dependent on the loans obtained started to confront with, degenerated into a
from the United States. Europe was soon liquidity crisis when more and more banks
affected by the crisis, as well, but its full started to refuse lending money to other
effect was only felt in 1931. Thus, in May, banks, for fear that they will never see their
1931, the bankruptcy of the Austrian bank money back again. The liquidity crisis
Kreditanstalt, led to the economic collapse of expanded from America to Europe, and little
Central Europe. Germany was also fully hit by little, on all financial markets, only to
by the crisis, the number of the unemployed strike at full force the entire real world
of the period rose to alarming quotas – economy immediately after. Consequently,
approximately 6 million persons. The Great just like in the past, the apparition of a crisis
Britain followed shortly after, and even in the United States of America deteriorated
France and Italy felt the serious effects of the the economic systems of the majority of the
crisis. Not only the European countries worlds’ states, its effects being felt only in the
suffered from the crisis, but almost all the second half of the year 2008.
states of the world felt its negative effects. At present, the world economy is
Consequently, the decrease in the request for confronting with the most severe economic
coffee, sugar, cotton and silk, led to the and financial crisis since the Great
impoverishment of countries such as Brazil Depression, and the governments are making
and Japan [2]. serious efforts to sustain their markets in the
Only towards the end of 1939 did the context of the decline of the largest
situation start to improve, as another phase of economies of the world.
the business cycle emerged – recovery. The
period between the two world wars 2. Anti-crisis measures in European
characterized by fluctuations of the world countries
economy, but after World War II, the
situation got better and during the immediate 2.1 Austria
period there was a massive industrialization One of the measures adopted by the
that lead to a an unprecedented expansion of Austrian Government is the application of
the world’s economy. The boom tempered accelerated depreciation on the cost of
during the 90’s and by the end of 2006 it acquisition of fixed assets. As a result, 30% of
reached its maturity level, proof of the fact acquisition or production costs will be
that the economy was going to move to the deductible for tax purposes in the year when
next phase of the business cycle, which the capital expenditures are accountant
actually happened. recognized. The 30% rate includes the normal
Comparing the past evolution of the annual depreciation of the first year of life of
world economy with its present situation, the asset. Regarding the second year, the
there is a strikingly obvious resemblance depreciation will be linear in relation with the
between the two. Accordingly, the present utilization period. A maximum of 100% can
moment of the crisis, expanded to global be amortized. Only the assets acquired or
level, reminds us of the great depression of produced between 2009 and 2010 are eligible
1929-1933, bringing into discussion the for accelerated depreciation.
phenomenon of economic cycle. Moreover, Regarding individuals, since 2010
the similarities to that period are numerous. crisis measures stipulate that the individuals
275
can receive a deduction for the reinvested accounting value of trademarks, of goodwill
profit in their business (new buildings and and of other intangible assets and in some
other immovable properties are considered cases reducing the amortization period for
reinvestment). these assets by paying a fee.
Another decree issued in November
2.2 Belgium 2008 states that in 2009 the compensatory
payments for overtime and for productive
As part of an economic stimulating plan, work will be taxed with 10% up to maximum
and to revive the real estate sector, the 6.000 EURO. This fee will be retained by the
following measures were adopted (the first employer to employees who have achieved
three are basically temporary): incomes of maximum 35.000 EURO in 2008.
 VAT on construction of private houses 2.4 Czech Republic

was reduced from 21% to 6%. Among the anti-crisis measures adopted
 The VAT rate applied to housing in the Czech Republic are found: temporary
construction as part of a social deferral of payment in advance regarding the
program was reduced from 12% to income tax for individuals which develop
6%. independent activities and companies with
 VAT payments were deferred for the maximum 5 employees (starting with January
first three quarters of 2009 for 1. 2009), health insurance tax for employees
taxpayers in distress. No penalties and employers was reduced starting with
were imposed for delays and the January 1. 2009The following measures were
interest for delays has been reduced. proposed, but are currently in various stages
of the legislative process:
Measures introduced by the Belgian
parliament, but under discussion include:  Reducing social security charges for
employees with low incomes.
 Subsidies by the Government of the  Monthly calculation of tax-
interest paid by the person who depreciation for certain assets (e.g.
obtains (between January 1. 2009 and computers, machinery, etc..) acquired
December 31. 2011) a loan for between January 1. 2009 and June 30.
investment in certain energy saving 2010.
measures for private housing.  Changing deductible taxes from lease
 Reducing taxation on energy. contracts for certain assets such as
 Certain tax deductions could be computers, cars, etc. acquired starting
extended by three years since with January 1. 2009 until June 30.
payment. 2010.
 Increasing partial income tax  VAT refunds will be faster to
exemption for night work and shift taxpayers who agree to refund taxes
work, from 10.7% to 15.6% (with for electronic products.
June 1. 2009), and for researchers to  Extending the deduction of VAT on
75% (starting with January 1. 2009 ), passenger cars.
in concordance with the lower growth
of general exemptions for other 2.5 Finland
employees. In Finland the VAT rate on food has been
reduced from 17% to 12%. There were also
2.3 Italy proposed a series of measures such as:
The Italian government approved a decree  The application of a reduction in
in January 2009 on the financial crisis, whose contributions for social security for
provisions refers to the reevaluation of the employees.
account value of properties, either for
accounting or tax reasons, to adjust the
276
 Doubling the rate of depreciation for rate of VAT will increase from 20% to 32%.
new plants and equipment purchased
in 2009 and 2010. 2.7 Bulgaria
 Allocation of the amount of 39 In Bulgaria were adopted a series of
million EURO to fund R & D measures relating to both incomes of
activities (Research and companies and individuals: the government
Development). approved income tax exemption for five years
for companies who invest in disadvantaged
Finnish authorities proposed regions, and the reduction of taxes for
investments in „Finnish" companies from families and couples who pay loans rates.
with resources from The National Pension
Fund, because these companies are stable and 3. Anti-crisis measures in USA
meet size requirements. In real estate sector,
the government proposed to subsidies the The United States adopted a series of
interest rate regarding buildings used for measures to support their financial markets
rental activities, and to increase the state aid and economy. The most recent and wide
for repairs. document regarding these measures is “The
As part of the recovery plan, American Rehabilitation and Reinvestment
announced in December 2008, all companies Low of 2009”, signed by the President on
can request to the Tax Administration the February 17. 2009. This document seeks to
reimbursement of the tax credit for research prevent the current economic challenges
and development expenses (R & D) incurred through a combination of federal spending,
in 2005, 2006, 2007 and, in some cases, those with aids for states and localities in worth of
of 2008. 326 billion dollars in the form of tax
Investments made or acquired exemptions. This law extended the recovery
between October 23. 2008 and December 31. period (carry back time) for net operating
2009 enjoy tax exemption for the entire losses regarding small firms with annual gross
period of investment. Companies whose receipts of 15 million dollars or less, from
business is already taxed can obtain an aid two years to three, four or five. The law
equal with 3.5% of the depreciation of the allows to certain taxpayers to elect between
most relevant assets. Since January 2009, postponing the cancellation of debt (COD)
VAT refunds to companies are made monthly income or not, if the taxpayer or a related
and not quarterly. party, redeem an credit instrument issued by
There are also imposed restrictions on the taxpayer. The deferment period is of five
unemployment and retirement bonuses years for the redemption of the debt in 2009,
offered to directors from certain firms whose and of four years for the redemption of the
activity ended. Unemployment and retirement debt in 2010. Thereafter, 20% of COD
bonuses are deductible from corporate income income should be included in each of the next
tax only up to a certain amount. five taxable years. The law cancels the
previous rules on aids (exemptions) for losses
2.6 Hungary caused by bad bank loans after the change of
The Prime Minister announced a series the the shareholders. The law changes the tax
of fiscal measures to change the taxation of credit for new markets (New Market Tax
incomes with the taxation of consumption and Credit) increasing to 5 billion dollars (from
thus to prevent the economic slowdown in 3.5 billion dollars) the total amount of loan
Hungary. It is proposed to increase corporate allocation for 2008 and 2009. Other
income tax rate from 16% to 19% and to provisions of the low provide incentives for
eliminate the solidarity tax of 4% regarding employed persons, war veterans, and for
businesses, and so obtaining a net reduction young people in difficulty.
of income tax rate of one percent. Taxes on In line with the Making Work Pay
employment will be removed. Taxes on fuel, Credit Tax, the Government will provide an
cigarettes and alcohol will increase and the amount estimated at 116 billion dollars for
277
tax relief over the next two years. The tax from land tax. Local authorities also offered
credit is an amount equal to 400 dollars for incentives and subsidies to enhance their real
singles and 800 dollars for couples or equal to estate markets. Indirect tax measures began
6.2% of the amount earned by the taxpayer to be applied starting with January 1. 2009.
and is refundable even if the taxpayer has no These measures were designed to reduce
income tax. The credit is withdrawn business costs with120 billion Yuan.
successively with the increasing of the gross The most important is the fact that the
income and the credit reduces with the value VAT rate for small taxpayers has been
of all payments for economic recovery reduced from 6% (factories or other
received by the taxpayer from the Veterans businesses) or 4% (commercial business) to
Administration, the Railway Retirement 3% for all categories. In 2008, four
Board and Social Security Administration, adjustments have been announced for VAT
and with the reimbursable payment offered to export refunds covering the area of
a certain category of retired persons in 2009. mechanical and electrical products, textiles
Other measures taken: and clothing, etc.., which included more than
 the credit for purchasing the first 50% of all goods registered in China's tariff
house is extended, the ceiling is system. Last upward adjustment was
increased to 8.000 dollars and the announced in February 2009, and refers to the
conditions for repayment are increase of the VAT rate refund for textile
eliminated; products from 14% to 15%.
 the tax credit for people with low and
moderate wages is extended; Concluding Remarks
 a credit of 2.500 dollars per year
along the first four years of study for Comparing the past evolution of the
high education is given world economy with its present situation,
The law provides a number of there is a strikingly obvious resemblance
provisions designed to improve both state between the two.
capacity and local government’s capacity to At present, the world economy is
issue bonds to finance infrastructure and other confronting with the most severe economic
economic development projects. These bonds and financial crisis since the Great
fall into two broad categories: (a) exempt Depression, and the governments are making
bonds, (b) taxable bonds, where the aid is serious efforts to sustain their markets in the
paid by the federal government as a context of the decline of the largest
refundable tax credit that can be requested by economies of the world.
the holder of the bonds. Worldwide countries, take measures
to counter the effects of the financial and
4. Anti-crisis measures in China economic crisis. From a fiscal perspective, the
initiatives taken so far, range from formal
Following the adoption of the "incentive" packages to ad hoc measures,
investment package in worth of 4 trillion temporary provisions, and the introduction of
Yuan (580 billion dollars) in November 2008, planed measures or cancellation of others.
the State Council approved a series of plans to In this study we have analyzed the
boost the industry, covering sectors such as anti-crisis measures taken by certain
automotive, steel, textiles, machinery, European countries like: Austria, Belgium,
shipbuilding, information technology, light Italy, Czech Republic, Finland, Hungary, and
industry, petrochemical industry and Bulgaria and we have focused on the anti-
nonferrous metals. crisis measures taken by the United States of
Measures concerning income tax refer America and Japan. The emphasis is on direct
to stimulate real estate transactions. The duty tax measures, on individual and corporate
applicable to the first purchase of a residential incomes.
property is temporarily reduced to 1%, and
those who buy private homes will be exempt Endnotes:
278
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[11]. www.sfin.ro
[12]. www.businessmagazine.ro
[13]. www.biblioteca-digitala.ase.ro
[14]. www.capital.ro
[15]. www.wall-street.ro
279
THE LEASING – COMPANY’S FINANCIAL METHOD
Roxana Ionescu -Davidescu, Lecturer PhD

„Dimitrie Cantemir” Christian University, Bucharest, Romania, cercetare@ucdc.ro
Abstract: The financial method using the leasing system represents a real opportunity in the Romanian economy for the
economic agents for whom the investments represent an essential request for the development of their activity. As 99%
from the economic activities need investments in order to develop, the leasing financial methods constantly increased.
Since the competition in our country becomes more and more rough the prompt reactions of the companies are vital.
The leasing satisfies in a short time the need of funds for the investments of economic agents. In this paper work the
author has the purpose to define different types of leasing, present the existing differences between them and the
evolution of the leasing market from Romania in the last 4 years.
Keywords: leasing operations, financial leasing, operational leasing, leasing market, financial level
Classification JEL: D53, H87, G21
Introduction According to the International

Standard of Accounting concerning the
The leasing becomes established in leasing operations IAS 17 ”Leasing”,
our country also as all over the world (maybe published in 1994 and reviewed in 1997, “the
less in the economies of III level countries) in leasing is an agreement in which the locator
the first place for it’s simplify. In Romania, in transmits to the tenant in exchange of a
the last years the competition increased a lot, payment or a number of payments, the right to
generating the need of an accelerate use the good for an agreed period of time”.
development of the economic agents. They The leasing fulfils certain requests of form
tried to find profitable financial solutions for and fund established by specific settlements
their activity. The leasing, because of it’s of each market but the general terms of the
operatively, satisfies in a short time the need contract are established by negotiation.
of investment fund for the economic agents. Through the leasing operation a company can
Also, by leasing, the economic agents avoid receive a financial support for its activity
complicate procedures of contracting bank from a financial institution that creates
credits, procedures which require the interdependent relations both with the bank
immobilization of some elements from the and with the supplier company.
company’s patrimony or the private one in The types of leasing operation, in one
order to create guarantees. form or another exist from the antiquity, from
the beginning of mankind. Being in
Short presentation of leasing operation accordance to the activities from that period,
the object of these operations were constituted
The leasing is an operation that by the necessary tools for practicing
requires the existence of three persons: agriculture and the subjects were on one hand
supplier, the financial society (leasing the rich people, the clergy, and on the other
company) and the user (the beneficiary of the hand the peasants who „rented” tools, lands,
financial transaction). The leasing company etc,. these operations being recorded on clay
buys from the supplier the good requested by plates. In this way the benefit of using the
the user and transfers it to the user for a good was observed and it made no difference
certain period of time in exchange of a of who is the owner of the property title.
monthly payment (rent). This represents, in
essence, the financial operation of leasing.
The procedure of a leasing operation requires
the accomplishment of three steps with
certain characteristics according to the
specific of different forms of leasing.
280
PROVIDER - The period of the contract is at least

equal with ¾ from the estimated life
period of the good.
- The actual value of the payments
during the contract is equal at least
USER
with 90% from the market value of the
FINANCIER good.
In case none of the above criteria are
ADDITIONAL SERVICES respected, the leasing contract is an
operational one from the tenant’s point of
INSURER view. The norm who discusses about the
problems of the leasing is IAS 17 „Leasing”
Fig.1. The basic graphic of the leasing operation published in 1994 and reviewed in 1997,
being applied from the 1st of January 1999.
In the above figure I tried to present a Therefore, this standard anticipates:
synthesis of the leasing operation, with the The financial leasing is the leasing
parts involved in this process, financial operation that transfers in great measure all
mechanism, and specific to the market the risks and benefits of the property right of
economy. It can be observed that beside the the good. The property title can be transferred
three mentioned elements in the special eventually or not.
literature, there are other structures that  The contract anticipates that the good’s
appear and are represented by the insurance property will be transferred to the tenant
companies and the company who provide till the end of the leasing term;
additional services.  The tenant has the option of buying the
good at an estimated price which is
Approaches of the existing types of leasing profitable for him (small enough
compared to its true value) and therefore
In Romania there are two types of at the beginning of the leasing there is a
leasing practiced: the operational leasing and reasonable certitude that the option will be
the financial leasing. According to the norms, made;
OG 51/1997 with the ulterior changes and the  The leasing period covers most of the
Fiscal Code available, in Romania, the period of the economic life activity even if
division line between the companies who the transfer of the property never takes
practice the financial leasing and the place;
operational leasing is different both from the  The actual value of the minimum
point of view of the locator and the tenant payments of the leasing at the date the
The leasing contracts have as an contract is issued is at least equal with
objective: equipments, cars and real estates. almost the real value of the good in
From the locator’s point of view a leasing regime;
financial leasing contract is a contract that  The actives who constitute the objective
fulfils one of the following conditions: of the contract are special, therefore only
- At the end of the contract the good is the tenant can use them without making
transferred to the tenant. any ulterior modifications;
- The locator has the possibility of  In case the tenant cancels the leasing
achieving the good during the contract, the loses of the locator generated
contract, for a profitable price because by the cancelation of the contract come to
at the date he signs the contract to be the locator;
almost certain that he will benefit of  The winnings or losses resulted from the
this option. variation of the real remaining value
represent the tenant’s responsibility (for
example as a discount of the rent
equivalent to the biggest part of cashed
281
premium from sales at the end of the guaranteed remaining value (agreed by the
contract); locator and the tenant).
 The tenant can continue the leasing for a  Concerning the tenant, he doesn’t support
second period, with a substantial less rent the risks and benefits resulted from using
than the market rent. the good. Therefore, he doesn’t assume
The operational leasing is the leasing even the risk of decreasing the value of
operation who’s not included in the category the good (from various motives), so
of the financial leasing (it doesn’t transfer theoretical he isn’t forced to guarantee a
most of the risks and benefits of the property certain value of the good when returning
title). it. However, the leasing company includes
 The operational leasing doesn’t have the in the leasing contract various clauses that
option of buying the good that makes the will control the usage of the good by the
object of the contract. tenant and forces him to respect so called
 In the operational leasing the risks and the „ the ethical risk”.
benefits of the property title are not  As a conclusion we can declare that, in
transferred but they remain to the locator general, in an operational leasing the
and he will assume all the risks resulted remaining value of the good estimated at
from a possible depreciation because of an the end of the contract will be in almost
excessive usage or the risk of damage or all the situation not guaranteed.
theft of the good (this risk appears  In general, in developed countries, the
especially in case of transportation leasing and especially the operational
means). In order to protect himself from leasing doesn’t require an advance, this
this risk the locator can increase the will be assimilated in the normal rent.
leasing payment according to the  The period of the operational leasing
depreciation percentage estimated when doesn’t cover most of the estimated
the good is returned and also with a risk economic life of the good, the company
premium paid by the locator to the believes that if a tenant has used the
insurance company who assumed the rented good for a short period from his
damage of theft risk of the good. These economic life term he cannot obtain most
risks have different valences when the of its economic benefits (and therefore it
leasing ends up with the return of the will not be exposed to most of its
good (an operational leasing by economic risks).
excellence).
 According to the contractual clauses the Europe and the types of leasing
tenant can guarantee the returned value of
the good at a certain value close to the According to the extension of the
value estimated at the end of the leasing leasing classification in financial or
term, receiving in exchange a percentage operational, in accordance with the
from the difference till the selling price classification criteria requested by IAS 17, we
obtained on the market; this represents a need to mention the study made by the
guarantee of a proper value of the good European Federation of Leasing Companies
according to a normal usage. In this case (LEASEUROPE), on the member countries
we can speak about the existence of a which apply IAS17, study analyzed and
reflected in the table below:
Table no.1. The distribution of the types of leasing used in Europe
EUROPEAN The difference between the operational and financial leasing according to
COUNTRIES IAS 17
Austria Doesn’t apply IAS 17
Denmark Doesn’t apply IAS 17
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Estonia 30% operational leasing, 70% financial leasing
France Doesn’t apply IAS 17. The existence op the buying option differentiates however
the leasing from a usual rent.
Germany Most of the leasing is operational
Italy Doesn’t apply IAS 17
Norway 30% operational leasing, 70% financial leasing
Portugal 100% financial leasing
Slovakia Doesn’t apply IAS 17
Spain Doesn’t apply IAS 17, all the contracts are assimilated to the financial leasing.
However there is a difference between the leasing and the usual rent (the usual
rent doesn’t have the buying option)
Sweden 10% operational leasing, 90% financial leasing

Check 3,5% operational leasing, 96,5% financial leasing
Republic
Holland The cars are rented 100% in operational leasing regime, the equipments are
rented 50% in operational leasing regime and 50% in financial leasing regime
Romania 87% financial leasing, 13% operational leasing
Source: LEASEUROPE
The main conclusion is that IAS 17 is size of the goods, presented briefly in the
not applied in all the countries members of following table:
Leaseurope. The differences can come from
the economic policy of each country, which At the level of the international market of
offers a smaller or bigger level of freedom to leasing, the studies made prove the existence
the accounting profession but also according of four main categories of Financial
to other internal criteria. Also, the Institutions: leasing companies’ subsidiary
classification criteria can eliminate some of banks, leasing companies’ captive,
elements from the characterization of the leasing companies’ independent and
operational leasing, elements considered leasing brokers or „the collectors”.
specific to renting using the Commercial
Code of that country. The impact of the financial crisis on the
The Euromoney statistics sustain the leasing market
existence of more than 2000 active companies
in the international leasing market. The financial crisis didn’t affect just
The international leasing markets the banking system. The leasing companies
have as component three key segments are also affected by the decrease of the
structured in transactions, according to the financial contracts from the market. Also, the
frauds committed in the last years start to
283
come out and produce loses which finally crisis all over the world affected Romania
decrease the profits. starting with October 2008. The sector of the
The serious misbalances who led to leasing market couldn’t be avoided by these
the beginning and extension of the economic socks.
Table no.2. Cased goods using leasing operations
TRANSACTIONS CEASED GOODS VALUE LIMITS
Of great value or „big -planes, ships, Minimum value

tickets” telecommunication 500.000 EURO
equipments, satellites,
etc.
Of medium value or -industrial equipments, From 100.000 EURO
„medium tickets” machineries, etc. to 500.000 EURO
Of small value or -cars, computers, copy Maximum value

„small tickets” machines, faxes, etc. 100.000 EURO
The effects of the financial crisis hit in registered annual and constant increases with
range all the involved actors: auto dealers, at least 25% and the leasing market reached at
leasing companies and their clients. They all the half of 2008 with a value of actives ceased
started to slow down and finally see the at approximately 5 billion euro.
losses. The companies who offered with In order to create a full image on the
generosity financial contracts in the past are leasing market I analyzed the level of
risking now to disappear from the market. contracts approved by the leasing companies
In Romania, the cars sold by using during the period 2007-2010.
financial operations in the last years
5 4.945 4.817
2
1.38 1.5
1
0
2007 2008 2009 2010
Fig.2. The level of contracts approved by the leasing companies from Romania during the period 2007-2010 (in
billion euro)
In 2008, the leasing market reached registered a historical decrease with 70%
4,817 billion euro, a decreased percentage compared to 2008.
with 2,6% compared to 2007. As a result of According to the market evolution on
the economy decrease from 2009 the leasing different sectors of activity, the most affected
companies was serious affected and they sector was the equipments one who registered
a decrease of 76% in 2009 (from 1,082 billion
284
euro in 2008, to 261,158 million euro in terms. Each case is analyzed carefully in
2009). The car leasing also decreased with order to avoid the false restraint people.
75% in 2009 (from 3,38 billion euro in 2008, Another facility offered by the big leasing
to 839,589 million euro in 2009). companies is the possibility to access the
I need to mention that the value financial information by internet.
estimated for 2010 is a value given by the This can be a solution with two edges
specialists from the leasing domain. It is an as in case the situation of the clients doesn’t
optimistic estimation because the evolution of improve after the allowed term the next step
the market in the first half of the year is much is the cancelation of the contract and the
more weak compared to the first half from return of the good.
2009.
The dynamic registered in the last Bibliography:
years manifested in force in this domain and it
was supplied by several factors: [1]. Anghel Ion E., Foreign direct investments in
 The increase of the life standard which Romania, Expert Edition, Bucharest, 2002
[2]. Bal, Ana (coord.); Dumitrescu, Sterian; Zaharia,
increased the consumption; Rodica Milena; Ilie, Anca Gabriela „International
 The competition between the financial economy”, ASE Edition, Bucharest, 2006
institutions, which, because of the [3]. Brezeanu, P., The financial administration of the
decrease of national currency, have company, ASE Digital Library, Bucharest
offered financial methods with lower [4]. Mosteanu, Tatiana, Prices, competition balance
and social wealth, Economic Edition, Bucharest,
costs; 2001
 The tempting offers given by the auto [5]. Vintila, Georgeta, The financial administration of
dealers. the company, Didactic and pedagogic Edition,
The depreciation of the national Bucharest, 2000
currency has affected the real incomes of [6]. www.financiarul.ro
[7]. www.capital.ro
Romanian people and those who had
installments to pay were affected by the
exchange shock. The pending installments
were no longer comfortable, they started to
grow once at three months and even with 30%
meanwhile the incomes remained the same.
This fact couldn’t led to anything else but late
payments or no payments at all, problems
with the liquidities on short term, the increase
of canceled leasing contracts and many
requests of recalculation of the installments
and payment obligations.
The liquidities crisis determined an
increase in the financial contracts and this
thing affected the clients of the leasing
companies also, not only the clients of the
banks. In the last months the interests in euro
have increased. The most affected companies
were the leasing companies who are not a part
of the financial groups and they don’t have
access to financial lines with preferential
interests.
A solution of administrating in an
optimal way and protect the portfolio during
this period is to offer to the clients that pay in
time the installments recalculations of their
leasing contracts and even gratuities for short
285
NEED AND BENEFITS OF CASH FLOW INFORMATION

Christian University "Dimitrie Cantemir", Bucharest, Romania
Faculty of Finance, Banking and Accounting
cilezbujor@yahoo.com
Abstract: A company that consistently generates significant cash is also solvent, profitable and able to secure
development. Therefore, the objective of a cash change statement is to provide information about the company’s ability
to generate cash and the way the company has used it during the financial year.
Profit and loss account gives information about flows, but not about cash flows, but about the income and
expenditure flows. For a beginner in accounting, there is a tendency to consider each payment as cost and each cashing
as earnings. However, the evolution of concepts of expenditure and income must take into account the gap that exists
between the flows of goods and services (sales, purchases) and cash flows (receipts, payments). Therefore, it may
happen for a company to obtain profit, but only a small part of it is included in the company treasury. When
expenditure is recorded in the accounting records, payment might have been done in the past (rent costs were recorded
in the N period although the rent had been paid in advance during the N-l period) or to be recorded in the future
(registration of invoice for payment to a service provider).
Keywords: flows, cash-flow, cash flow statement
Cod JEL: M41 – Accounting1. General aspects
Introduction end of the fiscal year, but not the causes for
any deficit or surplus cash.
Cash flow is considered a leading Profit and loss account gives
indicator for financial analysis as it provides information about flows, but not about cash
information on changes in components of flows, but about the income and expenditure
cash values[1] between the beginning and end flows. For a beginner in accounting, there is a
of a period, and, also, the structure of such tendency to consider each payment as cost
change generated by the specific transactions and each cashing as earnings. However, the
undertaken by the company. evolution of concepts of expenditure and
A company that consistently generates income must take into account the gap that
significant cash is also solvent, profitable and exists between the flows of goods and
able to secure development. Therefore, the services (sales, purchases) and cash flows
objective of a cash change statement is to (receipts, payments). Therefore, it may
provide information about the company’s happen for a company to obtain profit, but
ability to generate cash and the way the only a small part of it is included in the
company has used it during the financial year. company treasury. When expenditure is
Historical information on cash flows recorded in the accounting records, payment
represents the foundations of future cash might have been done in the past (rent costs
flows’ forecast, creating thus the premises to were recorded in the N period although the
estimate the company’s value. Also, this rent had been paid in advance during the N-l
allows the assessment of the company’s period) or to be recorded in the future
ability to generate cash flow, to determine (registration of invoice for payment to a
cash needs, to provide maturity and risk of service provider). Also, some expenses do
future earnings. not affect cash flows (depreciation expenses
Most users of accounting information and provisions) or relate to different
show considerable interest in the company inventories. When income is recorded, the
treasury. Each of these users claims a part of collection might have been done in the past
it in the form of dividends, interest, wages, (the rent income was registered in the N
taxes, etc. period although the rent had been cashed in
Information on company treasury is the N-1 period) or to be recorded in the
available in the balance sheet. It describes the future (recording a sale to a customer). Also,
company's cash position at the beginning and some income does not affect cash flows
286
(income from provisions) or relate to investment, to provide dividends, to repay

inventories or property. loans, all without resorting to external sources
Having a Cash flow statement, users of funding. We must not forget the
can assess changes in net assets of a importance of forecasting future cash flows
company's financial structure and its ability related to operating. In defining the
to adapt to different circumstances and composition of flow generated by operating
opportunities, to develop models to assess activities, IAS 7 Cash flow statements creates
different companies. a first connection with the company’s
We should not overlook that cash flow outcome: flows related to operating activities
statement brings about the much desired generally result from transactions and other
reconciliation between the accounting result events that enter into the determination of net
and cash flow. For this reason, IASB requires profit or loss. We can say, therefore, that the
all companies that report in compliance with Cash flow statement changes the accounting
IFRS to prepare such a situation. In contrast, result into an actually cashed result.
U.S. GAAP allows certain investment Although content is exemplified by
companies not to make such a situation. receipts/payments related to various routine
activities, methods of presentation allow a
2. Origin and destination of funds reporting by the direct or the indirect
Over time, in their attempt of methods. The works of convergence
systematization of information regarding the undertaken by the IASB and FASB study
structure, origin and destination of funds options for reconsideration the cash flow
used by the company, regulators have requirements. The debate concerns the
concluded that liquidity changes can be possibility of waiving the indirect method, but
explained by the action of three types of the possibility of maintaining the direct
activities based on a functional classification method as requirement of presentation, with
in the company: information regarding the result-treasury
1. Operating activities, defined in a reconciliation in the Notes.
residual manner, as the main income-
producing activities and other activities that 3. Content of operating flows
do not include investment or financing Based on the direct method, the
activities; presentation of information consists of
2. Investment activities, defined as detailing receipts and gross cash payments
those activities related to the acquisition and arising directly from the accounting records
disposal of fixed assets and other investments or indirectly, by adjusting the sales and their
not included under investments in cash cost with the variations of related assets or
equivalents; liabilities.
3. Financing activities, defined as those Supervisory bodies encourage the
activities that alter the size and composition election of the direct method to respond to the
of financing sources (equity and loans). reason of drawing a flow statement, to report
Both the international and the U.S. by parallelism the cash input and output. The
standard refer to the Cash flow statement same requirements are found in the American
format by the need to structure such a normalization.
statement by detailing cash inputs (receipts) We list below the content of operating
and outflows (payments) for each type of flows under the two ways of presentation:
activity. Direct method
Although defined by resorting to Collection of receivables
financing and investment, the cash flow - Payment of commercial debts
generated from operating activities is a vital - Payments of debts and social
indicator for measuring the financial contributions
performance of the company, its size - Payments of taxes and duties
depending on the company’s capacity to - Payments of operation related
generate sufficient cash for further interests
287
+/- Collection/payments from natural The direct method is desired by

disasters investors because it allows the establishment
To make such method more of the company’s value based on cash flow
understandable, we suggest a computation projections. The indirect method is preferred
based on the equation: Initial balance + by managers, because hides from external
Inputs (confirmations) = Final balance + users the real picture about the liquidity and
Outputs (discharges), which will position solvency of the company, and by accountants,
indicators on payments and collections for ease of calculation.
according to the structures they are placed in The cash flow from operations, which
the Trial balance. mainly represents the difference between
The indirect method reports the same collections from customers and payments to
flow values as the direct method, but their suppliers and employees, provides investors
coverage is different, starting from the with additional information, being a good
accounting result (profit/loss for the period) indicator for measuring the company’s
adjusted with the effects of transactions that performance.
have no monetary nature, delays or liabilities Unlike the presentation requirements for
and the cash flows from investment and operating flows, investment and financing
financing activities. flows must be submitted by the direct method,
A first method of determining the without making reference to the indirect
operation related flow is based on correcting method.
the self-financing capacity adjusted with the Cash flows from investment activities
variation of the working capital requirements are reported as follows:
and it is referred to as self-financing capacity. • The main classes of gross receipts in
This can be discussed from two perspectives cash and gross cash payments are
generated by variants of calculation: based on reported separately;
gross operating surplus or the net accounting • Aggregate cash flows arising from
result. According to the author, the second acquisitions or disposals of
method is the method of operation flows, subsidiaries and other business units
which can use the model presented in IAS 7 are classified as investments.
Cash flow statements and which we detail Cash flows from financing activities are
below: reported separately by presenting the main
Indirect method classes of gross cash receipts and payments.
Gross result Reporting is allowed on a net basis for
+/- Adjustments which do not generate the following cash flows:
cash flows: • Cash flows on behalf of clients.
+/- Adjustments for depreciation and • Elements with rapid rotation, large
provisions for impairment amounts and short-term maturity (e.g.,
+ / - Profit/losses from exchange rate purchase and sale of investments).
related to claims or liabilities pending The interest and dividends paid must be
+ / - Profit/losses from exchange rate consistently treated as operating activities or
related to current cash items as financing activities.
+ / - Adjustments which do not affect Cash flows from income taxes are
operation - financial income + financial classified normally as operating (except
expenses where specifically identified as financing or
= Operating result generating cash flow investment).
variations A foreign exchange transaction is
+ / - Increase/decrease in trade recorded in the functional currency, using the
receivables and operation related exchange rate when cash flows occur.
+ / - Increase/decrease of inventories Cash flows of foreign operations are
+ / - Decrease/increase of operating translated using the exchange rates existing at
debts (business, labor, tax, other than taxes). the dates of occurrence of cash flows.
288
Where entities are accounted for by the  Income tax information is not required
equity or cost method, only actual cash flows as separate information in the income
generated by these entities (e.g. cashed and loss account, but an indication of
dividends) are highlighted in the statement of IAS 7 Cash Flow Statement remains
cash flows. valid in terms of classifying income
Cash flows from joint ventures are tax payments in one of the three
included proportionally in the cash flow categories.
statement. The cash flow statement of required by
For classifying cash flows in one of IFRS shows the sources of cash inflows
three categories of activities, supervisory received by an entity during an accounting
bodies provide a series of statements aimed at period, and the purposes for which they have
clarifying confusing situations: been used.
 The interest paid and interest and The statement is part the analysis of an
dividends received are usually activity because it allows the analyst to
classified as operating flows and determine the following:
dividends paid as funding flows. IAS 7  The company's ability to generate cash
Statement of Cash Flows allow the from its activities
interest paid, as reflected of the cost of  The consequences quantified in cash of
loans, to be included in the financing the investing and financing decisions
activity, the interest and dividends  The effects of management decisions on
received, as a reflection of gains from financial policy
loans and purchases of financial  Constant capacity of a company to
investments, to be included in the generate cash
investment activity and dividends paid  How good the operating cash flow is
to be treated as payments resulting correlated with net income
from the company’s operating  Impact of accounting on earnings
activities (part of the activity’s quality
outcome);
 Information on long-term liquidity and
 The requirement on the classification solvency of a company
of extraordinary items per three types
 If business continuity assumption is
of activities, although it would seem at
reasonable or not
first sight that does not ensure
 The capacity of firms to finance growth
compatibility with the new version of
from internally generated funds
IAS 1, that prohibits the display of a
Since cash inflows and outflows
category of extraordinary items, does
represent objective information, the data
not contradict this requirement
presented in the cash flow statement are an
because items such as losses or gains
economic reality. The statement reconciles
from disasters will be presented
the increase or decrease at the level of cash or
separately because of their nature and
cash equivalents of an entity that appears
will be classified either as financial
during the accounting period (objectively
items, or as actual operating items, or
verifiable information).
other operation items;
Moreover, this statement should be read
 Gains and losses arising from taking into account the following aspects:
exchange rate changes of foreign
 There are analysts who believe that
currencies are recognized at a time
accounting rules are created primarily
and related to receivables and
to promote comparability, rather than
payables not yet settled, do not
to reflect economic reality. Even if
generate cash flows. Exchange
this approach has been considered a
differences relating to cash holdings
tough one, it is true that much
will detail the state of the treasury and
flexibility in accounting may raise
do not fall into one of the three
problems to analysts, who are
activities.
289
primarily interested in evaluating a where the company operates. That is why free
company's future ability to generate cash flow should be evaluated in conjunction
cash from its activities. with company’s income related projections.
 As the data from the profit and loss Many valuation models use operating
account, cash flows can be cash flow, encouraging management to record
unpredictable from one period to entries as deriving from operation (normal
another, reflecting random, cyclical and recurring) and outputs as related either
and seasonal transactions, which investment or financing. Here are other areas
imply cash and sectorial trends. where discretionary leadership elections could
Important trends can be difficult to influence the presentation of cash flows:
decipher on the long term, starting  Payment of taxes. The management is
from short-term fluctuations, less interested in reducing taxes related to
significant, of such data. the current year, choosing accounting
At the level of the European methods for the financial statement to
standardization, the Fourth Directive does not defer payment of taxes for a future
require the presentation of cash flow period.
statements, but allows including other  Discretionary expenditure. The
statements concerning financial statements management can manipulate operating
with the balance sheet, the profit and loss cash flow by programming payments
account and annexes. Accordingly, Member or bearing certain discretionary
States avoid requiring companies to draft and expenses such as research and
submit the cash flow statements in the development expenses, repairs and
companies’ records, but encourages it. As a maintenance and so on. Operating
general practice, drawing a statement where cash inflows can be increased also by
liquidity is required to reflect changes in programming the payment of deposits
companies listed on international markets, from long term contracts.
namely those that prepare consolidated  Leasing. The entire output of cash
financial statements. related to an operating lease reduces
Until the amendment of the European the cash flow from operations; in what
Directive, the requirement of reporting the concerns the financial leasing, the
financial position was met by issuing a payment is divided between
Funding statement, gradually replaced by the exploitation and financing, thereby
Flow statement. increasing operating cash flows.
4. Conclusions Endnotes:
In general, for a well managed and [1] According to IAS 7 Statement of Cash Flows,
financially stable company, the cash derived treasury items include cash and short-term
from operating activities is higher than the net financial investments, highly liquid, easily
convertible into cash and with a low trading risk.
income; if not, the analyst must be skeptical U.S. GAAP, however, by SFAC 95 Cash flow
in terms of the company's solvency. statements, excludes from the treasury items, the
Companies recoding growth often have current accounts credits (overdrafts/overdraft
negative free cash flows because their rapid accounts), placing them in the financing activity.
growth requires capital expenditure and other
investments with higher values. Mature Bibliography:
companies often have positive free cash
flows, while declining firms often have [1]. Feleagă N., Feleagă L. – Contabilitate financiară
– o abordare europeană şi internaţională, Ed.
extremely positive free cash flows, because Infomega, Bucureşti, 2005;
lack of growth means a low level of capital [2]. Lepadatu Ghe. – Standarde, teorii si sisteme de
expenditure. Therefore, free cash flow with conducere a contabilitatii pe plan mondial, Ed.
highly growing value is not necessarily Pro Universiatria, Bucuresti, 2009;
positive or negative; they depend largely on [3]. Malciu L. – Reformă după reformă: contabilitatea
din România în faţa unei noi provocări – vol. I:
the stage of the life cycle of the industry
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Eseuri şi analiza standardelor IAS – IFRS, Ed. Standards (IASSTM) and their interpretations on
Economică, Bucureşti, 2005; January 1, 2007, CECCAR, Bucharest, 2007;
[4]. International Financial Report Standards
(IFRSSTM) including International Accounting
291
THE INTERDEPENDENCE BETWEEN ACCOUNTABILITY FROM PRODUCERS OF

FINANCIAL AND ACCOUNTING INFORMATION AND THE TRANSPARENCY OF
REPORTING FOR DESIGNATED USERS

mardirosdaniela@yahoo.com
rm.dicu@yahoo.com
Abstract: By their nature, accounting regulations are inherently limited in their ability to provide reliable, factual
information, verifiable by documents, particularly covering the activity of organizations as economic actors. In our
days, their reporting needs require, beyond the proper application of accounting regulations, the responsibility
concerning information provided to users and related primarily to business ethics side. Assuming such responsibilities
which exceed their quality as economic operators, organizations are developing into bodies with social impact. Thus, a
claim is required in relation to producing a ‘true and fair’ view of information describing the enterprise as a whole.
Related to the complexity of this concept, we take into consideration the relationship of interdependence between the
accountability from the producers of information and the transparency of data provided to users. The latter becomes a
mechanism of public manifestation of responsibility of managers and organizations, allowing users a basis for
confidence in decision making.
Keywords: primary users, accounting regulations, accountability, transparency of reporting, conceptual framework,
qualitative characteristics
JEL Classification: M 40, M 41, M 48.
Introduction should be the main subject of the new project

of conceptual framework. The concepts are
Role of accounting is undoubtedly important because they are ideas with a high
satisfying the information requirements of order of intellectualization. However, the
users. Relationship between supply and accounting principles focus on the users of
demand of information in the business world accounting information. Principles have
is mediated by accounting. The optimization developed over a long period of time, and are
of this report is important, the demand continuously subject to revision as
conditioning most often the supply. When information needs change. It is the
corporations began to dominate economic life responsibility of accounting professionals,
of nations, there has become the necessity for teachers and accounting organizations to keep
reporting information to users to overcome accounting principles up-to-date, relevant and
the accounting area, so they serve the interests useful.
of various groups.
First, we infer that the information The motivation for an accounting
needs of users of accounting information lead information market
the accounting system in looking for new
solutions to optimize business and in Existence of demand for accounting
implementing best practices, and secondly, information, represented by its users, has
the whole company in finding the best way to drew attention to producers of accounting
mediate its social relations with the users. In information i.e. economic entities and to their
this context, question which implies is: is a relationship, turned into a market of
new Conceptual Framework needed? In order accounting information.
to achieve the true and fair view of economic The motivation of existence of
resources, claims, and changes in resources accounting information market concept is
and claims, the accounting concepts and based on several assumptions of which we
generally accepted accounting principles mention:
292
• having a permanent exchange between economic entity and to build information to

participants. A decision requires knowledge answer the needs of different users. In this
of its background data. Therefore, producers context, accountability is seen as a social
should be able at any time to provide required game, which faces the interests of users and
data, depending on the degree of internal and producers of accounting information (Grenier
external access to enterprise information of M., Bonnebouche J., 1998). Organization
different categories of users; accountability is the organization’s fiduciary
• a market for accounting information responsibility to manage its resources
requires specific rules, applicable to all carefully.
economic entities operating in a domain. At To emphasize the role of accounting
this point, the focus of producers and users of information system, we should describe some
accounting information is represented by the of its features. In economic terms, it reflects
International Financial Reporting Standards, the efforts and effects produced by an
which aim to end accounting convergence. economic entity. In terms of information, it
This process is necessary and required, appears like the only subsystem which meets,
aiming at identifying and eliminating those by mixing, heterogeneous transactions and
points of disagreement between national provides uniform representation of the
accounting legislation, European directives observed phenomena. From this perspective,
and international accounting standards and accounting information system is the most
reducing differences between U.S. accounting important subsystem of the management
standards and IASB accounting referential; information system, as playing a central role
• the meeting between the demand and in directing the flow of data and information
the supply of accounting information needs a to all departments of an enterprise and to all
well defined area of operation; interested parties outside of it (Tabără N. -
• the value of accounting information is coordinator, 2009).
different for producers and users. For the first In support of this idea, we emphasize
category, the cost can mean tax for that planning, monitoring and evaluation, as
preparation, certification and publication, management functions, benefit from the
among other items of expense that may arise. information supply of accounting. Developing
For its users, the accounting information can fundamental decisions, which contribute to
be evaluated in terms of convenience and solving many problems of economic and
utility. financial administration, depends on both
In these circumstances, the accounting quantity and quality of information provided
information changes the accounting process through accounting information system.
into an information system that deals the Communication diagram accounting
information expressed in currency, using process can be depicted as (Grosu C.,
specific methods. It has a dual role: to provide Almăşan A., 2002):
a structured representation of wealth of an
Fig. 1 – The process of accounting communication
293
In conclusion, accounting mediates the not just their quantity. The fact is that these
data flows between different "actors" of synthetic are the result of the interaction of
economic life. She is and will remain the three parts (Malciu L., 1998): firms, as
universal language and communication subjects whose activities are subject to
specialist in the business world. In this financial information, accounting information
context, accounting information serves as a users and professional accountants or the
decision support for its users, but it depends accounting profession in general. Of all these
on getting it by those who have it disperse. parties, the role of improving the content of
Here comes the supply of accounting financial statements and to improve the
information. credibility of accounting information is
attributed to the accounting profession. Even
What does accountability imply in terms of if companies would only be tempted to
reporting? disclose certain information, the decision in
this regard is conditional by the expectations
Enterprise as a whole is a huge supplier of users of accounting information. They
of accounting information. Its product range must be able to determine correctly, based on
in reporting information to users includes: information received, the indicators related to
- Internal reports – here is included profitability, liquidity and solvency of the
forecasting analysis, which underpins the company (Horomnea E., 2010);
company's strategic decisions, and cost - Identifying the social side of reporting,
calculation, which is information strictly particularly non-financial reporting.
about production activities and, normally, its Although it is purely voluntary, corporate
analysis leads to assess the effectiveness of social responsibility is an added value to them
work done and improve it. Company and to society. Responsible management
management ensures effective administration concept refers to the manner of running a
of its assets while it has the appropriate business so as to make a positive contribution
information. Knowledge of costs, depending to society and to reduce negative impacts on
on the scope of the business, budgeting, people and environment. In this context, must
expenditures and revenues, providing be identified and substantiated the most
information needed for the internal control of important aspects to be made public by the
information, are objectives of management operators.
accounting and they help to ensure a modern Production and dissemination of
management for the company. New methods information by a firm is nothing but simply
of operation - just-in-time (JIT) and Total the result of human will and consciousness
Quality Management (TQM) - force and it is in fact a social phenomenon. For
companies to restructure production processes these reasons, it must be characterized by
and implement new approaches to cost accountability and transparency. Interests of
allocations and cost calculation (Vokurka users of accounting information are different,
R.J., Lumus R.R., Krumwiede D., 2007). which causes some, such as managers, to
However, because internal reports are used intervene in the application of accounting
internally, they do not need to fallow policies and methods so as to be benefited.
generally accepted accounting principles; Then, position occupied by some users is that
- External reporting - this view is much they have a privileged status in terms of
wider and very much depends on the size of information.
the companies discussed. The most important The accuracy of calculations or
part of the information externally provided is accounting summary reports which can to be
the report called annual financial statements. considered production of accounting
Although they have an improved content, as a information and part of the supply of
set of accounts, however we cannot say that accounting information goes, in essence, both
they are optimal. Usefulness of the from a correct circuit of accounting data, and
information contained in the financial the assumption of responsibility by producers
statements referred especially to quality, and of accounting information in terms of
relevance and credibility of information Financial Reporting Standards (IFRSs) and

provided to users, and also in terms of US generally accepted accounting practices
transparency of such information. (GAAP).
The market value of the product The two boards reached the following
exchanged – accounting information - should decisions about the approach to the project:
be the result of demand and supply. But that ▪ the project initially focuses on
does not happen just so, that sometimes the concepts applicable to business entities in the
offer of accounting information appears to be private sector. Later, the boards should
a response to user demand, or it can be a consider the applicability of those concepts to
handled one. Known in literature as "creative other sectors, beginning with not-for-profit
accounting", manipulation of accounting organizations in the private sector.
information on the limit of legality actually ▪ the project should be divided into
allow changing its image to promote the phases, with the initial focus being on
enterprise on the market. But as in any other achieving the convergence of the frameworks
case, the demarcation between opportunity and improving particular aspects of the
and opportunism is sensitive, and the frameworks dealing with objectives,
creativity can become "Bad Accounting". qualitative characteristics, elements,
Development of creative accounting, recognition, and measurement. Furthermore,
especially from her "perverse" side, driven by as the frameworks converge and are
gaps in accounting rules, makes it difficult or improved, priority should be given to
even impossible to assessing the actual addressing issues that are likely to yield
situation of the company and causes serious benefits to the boards in the short term, that
degradation in accounting truth, putting into is, cross-cutting issues that affect a number of
question the responsibility of both their projects for new or revised standards.
information producers and their level of ▪ the converged framework should be in
transparency. the form of a single document and it will
The consequences of loss of credibility include a summary and a basis for
of published accounting information are conclusions.
devastating: confused investors panic, courses The objective of the conceptual
of actions may collapse resulting in framework project is to create a sound
bankruptcy, with serious implications for foundation for future accounting standards
markets. Today’s accounting must meet the that are principles-based, internally consistent
needs of a wide range of users, and its offer and internationally converged. The new
has a character increasingly social. framework builds on existing IASB and
That is why the importance of FASB frameworks.
designated organizations (IASB and FASB)
as standards-setting bodies is increasing every The objective of general purpose financial
day and the purpose of their activity reflects reporting
commitment to developing, in the public
interest, a single set of high quality global Establishing an objective for the general
accounting standards that provide high quality purpose financial reporting was the first step
transparent and comparable information in in order to develop a converged framework.
general purpose financial statements. On 28 September 2010 the chapters 1
The objective of financial reporting and 3
Firsts steps in developing a new conceptual Qualitative characteristics of useful financial
framework iasb / fasb information of the revised framework were
published (chapter 2 will deal with the
The International Accounting Standards reporting entity concept). As a consequence,
Board (IASB) and the US Financial the actual IASB Conceptual Framework was
Accounting Standards Board (FASB) joined partially changed, and FASB has issued
their efforts in order to develop an improved „Statement of Financial Accounting Concepts
conceptual framework for International No. 8”, both containing the same information.
295
In the two published chapters of the step in improving the Conceptual Framework
new framework, the objective of financial reflects the need for accountability of
reporting is to provide financial information producers of accounting information and for
about the reporting entity that is useful to transparency in reporting it.
existing and potential investors, lenders, and Fundamental qualitative characteristics
other creditors in making decisions about are relevance and faithful representation of
providing resources to the entity. Those useful financial information.
decisions involve buying, selling, or holding Relevant financial information is
equity and debt instruments and providing or capable of making a difference in the
settling loans and other forms of credit (1). decisions made by users. Financial
Under the entity perspective, the information is capable of making a difference
objective is to provide financial information in decisions if it has predictive value,
about the entity’s business to the entity’s confirmatory value, or both. The predictive
capital providers. In these conditions, the value and confirmatory value of financial
phrase “information about entity’s financial information are interrelated.
position, performance and changes in Directly related to relevance is the
financial position of the entity” has become concept of materiality. This is an entity-
information about a reporting entity’s specific aspect of relevance based on the
economic resources, claims, and changes in nature or magnitude (or both) of the items to
resources and claims. which the information relates in the context of
Basically, the accounting equation is an individual entity’s financial report.
Assets = Liabilities + Equity and capital Referring to faithful representation,
providers are the primary users of financial general purpose financial reports represent
reporting, but information about the economic economic phenomena in words and numbers,
resources of an entity, the claims to those and it must represent it faithfully. The term
resources, and the changes in them also is “faithful representation” was chosen to
useful for purposes other than making replace “reliability”, because the last one was
investment, credit, or similar resource too close to the meaning of “verifiability”, in
allocation decisions. So, the basic accounting the former Conceptual Framework (IFRS,
equation became Economic resources = 2009). This new fundamental characteristic
Claims (Investors and creditors). seeks to maximize the underlying
characteristics of completeness, neutrality and
The new hierarchy of qualitative freedom from error. Information must be both
characteristics relevant and faithfully represented if it is to be
useful.
Knowing that the accounting First, the producers identify an
information is the product that is exchanged economic phenomenon that has the potential
between organizations, as producers, and their to be useful to users of the reporting entity’s
stakeholders, as users, on the accounting financial information. Second, they identify
information market, setting the qualitative the type of information about that
characteristics of useful financial information phenomenon that would be most relevant if it
was a very important aspect in the process of is available and can be faithfully represented.
changing the conceptual framework. Third, determine whether that information is
These characteristics apply to financial available and can be faithfully represented
information provided in financial statements, (FASB, 2010).
as well as to financial information provided in Beside the fundamental characteristics,
other ways. They identify the types of there are enhancing qualitative
information are likely to be most useful to characteristics. Those are not less important
users in making decisions about the reporting than the first two, but their purpose is to
entity on the basis of information in its improve the process of reporting the most
financial report. The fact that both boards useful information about an economic
focused on qualitative characteristics as a first phenomena. Comparability, verifiability,
296
timeliness and understandability are be included in public financial and non-

qualitative characteristics that enhance the financial reporting. Equality of other
usefulness of information that is relevant and stakeholders in relation to the investor,
faithfully represented. considered the main user of the information
Although comparability and made public by the company, means an
understandability were two of four addition to the sets of non-financial and
fundamental characteristics in former IASB financial reporting statements;
Conceptual Framework, from this new - Recognizing the importance of a
perspective they are seen as enhancing converged IASB/FASB Conceptual
characteristics. The first one, comparability, Framework. The discussions around a new
should not be an impediment in presenting conceptual framework have started at the
information, only for being similar with IASB and the US FASB’s joint meeting in
another entity. If understandability October 2004. Since then, the best solutions,
considerations were fundamental, it might be definitions and concepts regarding financial
appropriate to avoid reporting information reporting were discussed and commented.
about very complicated things even if the However, generally accepted accounting
information is relevant and faithfully principles are very little mentioned in both
represented. Classifying understandability as „Statement of Financial Accounting Concepts
an enhancing qualitative characteristic is No. 8” and IASB changed Framework , but
intended to indicate that information that is they deserve a closer look and should
difficult to understand should be presented reasonably be placed at the top of a financial
and explained as clearly as possible (FASB, reporting list of concepts;
2010). - Understanding the hierarchy of
The new set of qualitative fundamental and enhancing qualitative
characteristics does not include prudence or characteristics. Many decisions by
conservatism because it is inconsistent with stakeholders are based on implicit or explicit
“neutrality”. Being prudent means not being predictions about the amount and timing of
free from bias. Understating assets or the return on an equity investment, loan, or
overstating liabilities in one period frequently other credit instrument. Thus, putting
leads to overstating financial performance in relevance on the first place means meeting
later periods - a result that cannot be their expectations. Consequently, information
described as prudent or neutral. is capable of making a difference in one of
In order to be accountable, those decisions only if it will help users to
organizations which apply International make new predictions, confirm or correct
Accounting Reporting Standards (IAS/IFRS) prior ones, or both. Finding the most faithful
should pay attention to the changes and to the representation of a relevant information
evolution of this new Conceptual Framework. means being transparent in relation to
designated users;
Conclusions - Re-input the contribution of
companies’ management to the quality of
Finally, communicating information non-financial and financial reporting.
between producers and users of information Unequivocally linked to the internal reporting
relating to an enterprise as a whole takes into of a company as a result of management
account: accounting practice, the influence of
- Looking for new facets of the concept management is currently visible mainly in the
of reporting, related to the public image of quantity and quality of additional information
economic entities. Inclusion in national reporting requirements. The need for
accounting rules of International Financial accountability in the relation between
Reporting Standards and EU Directives could managers and users of accounting information
lead towards international markets, which is always present both in literature and
brings not just to search and to use of the best especially in users’ applications;
practice but also to establish the elements to
297
- Arguing the need for transparency in of financial statements and their decisions related
financial and non-financial reporting. to the reporting entity.
Limiting the transparency of awareness of
users can affect the quality of decisions and References:
their degree of confidence in decision
making. Promoting this concept and its [1]. Grenier M., Bonnebouche J., 1998 - System
influence on the materiality of disclosed d’information comptable. Comptabilité générale,
information can improve the quality of Editions Foucher, Paris
[2]. Grosu C., Almăşan A., 2002 - Abordări
financial and non-financial reporting of conceptuale privind sistemul informaţional
economic agents; contabil, Revista Contabilitatea, Expertiza şi
- Identifying the benefits resulting from Auditul afacerilor, nr.6
practicing responsible environmental and [3]. Horomnea E., 2010 - Fundamentele ştiinţifice ale
social reporting. In this case, the premise is contabilităţii. Doctrină. Concepte. Lexicon,
Editura TipoMoldova, Iaşi
that the economic responsibility is the only [4]. Malciu L., 1998 - Cererea şi oferta de informaţii
sustainable development model. Even if contabile, Editura Economică, Bucureşti
technologies are very important in business [5]. Tabără N. (coordonator), 2009 - Control de
and business productivity depends more and gestiune, Editura TipoMoldova, Iaşi
more on technology, man and his intelligence [6]. Tabără N. ș .a., 2006 - Consideraţii asupra
contabilităţii creative, Revista Finanţe publice şi
are critical in this case. Therefore, social contabilitate, nr.3
responsibility is not simply a charity, but - [7]. Vokurka R.J., Lumus R.R., Krumwiede D., 2007
increasingly - is part of the business model; - Improving manufacturing flexibility: The
- Promoting the involvement of enduring value of JIT and TQM, SAM Advanced
economic entities in support of sustainable Management Journal, 2007,
http://ebiz.bm.nsysu.edu.tw/2008/m954012004/lit
development. With the natural resources erature
requiring extra-administration, as an addition [8]. ***, IASB, 2009 - Standardele Interna
to their limitation, information remains the Raportare Financiară. Norme oficiale emise la 1
only inexhaustible source of companies and ianuarie 2009, Editura CECCAR, Bucureș ti
their way to input to the process of [9]. ***, FASB, 2010 - Statement of Financial
Accounting Concepts no.8, Conceptual
sustainable development. Framework for Financial Reporting, September
2010, www.fasb.org
Endnotes: [10]. ***, Conceptual Framework for Financial
Reporting, 2010 - Deloitte,
[1] Conceptual Framework for Financial Reporting http://www.iasplus.com/standard/framewk.htm
(2010) stipulates the new term of “primary users”
298
FINANCIAL INSTRUMENTS ACCOUNTING REFORM. THE MOST IMPORTANT

CHANGES BROUGHT BY IFRS 9
Lect. univ. dr. Iuliana Oana MIHAI1, Lect. univ. dr. Camelia MIHALCIUC2
1
Universitatea “Dunărea de Jos” Galati, Departamentul Administrarea Afacerilor
2
Univesitatea “Ştefan cel Mare” Suceava, Facultatea de Ştiinţe Economice şi Administraţie Publică, Catedra
Contabilitate-Finanţe
1
oana.anghel@ugal.ro, 2cameliam@seap.usv.ro
Abstract: In the wake of the global financial crisis, world leaders have required on accounting standard setters to
improve the accounting for financial instruments on the basis of “a single set of high quality, global accounting
standards”. Key focus areas include the complexity of existing accounting standards for financial instruments, the
extent to which financial assets and financial liabilities should be subject to fair value accounting, and how entities
recognize and measure loan impairment. Responding to this call, the FASB and the IASB are undertaking a combined
project to reform their current accounting requirements for financial instruments.
In November 2009 IASB published the first phase of IFRS 9 “Financial instruments” as part of its comprehensive
review of financial instruments accounting. The IASB aims to reduce the complexity of the current requirements and to
replace IAS 39.
IFRS 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for
financial assets; amortized cost and fair value. The basis of classification depends on the entity’s business model and
the contractual cash flow characteristics of the financial asset.
Keywords: financial instrument, accounting, IFRS, recognition, valuation
JEL classification: M49
Introduction In 2009 IASB issued a new standard on the

Financial instruments have become more classification and measurement of financial
complex over the past 20 years. This assets. Publication of the IFRS represents the
complexity has led to difficulties in end of the first part of a three-part project to
recognizing, measuring, presenting and replace IAS 39 Financial Instruments:
disclosure of financial instruments in the Recognition and Measurement with a new
financial statements of an entity. The standard - IFRS 9 Financial Instruments. The
international work on accounting for financial new standard enhances the ability of investors
instruments began in 1988 but it was in 1995 and other users of financial information to
that a standard was issued on presentation and understand the accounting of financial assets
disclosure and 1998 for a standard on and reduces complexity – an objective
recognition and measurement (David endorsed by the Group of 20 leaders (G20)
Alexander, 2009). The complexity of the and other stakeholders internationally.
whole issue has led to the decision to separate
the project on financial instruments into two Theoretical issues regarding the
parts, first, presentation and disclosure and, recognition and valuation of financial
second, recognition and measurement. The instruments
whole debate on financial instruments is
around the issue of whether the financial IAS 39 “Financial Instruments: Recognition
assets and liabilities should be valued at fair and Measurement” sets out the requirements
value. for recognizing and measuring financial
Today there are three active standards that assets, financial liabilities and some contracts
deal with the problem of financial to buy or sell non-financial items. Many users
instruments: IAS 32 “Financial instruments: of financial statements and other interested
Presentation”; IAS 39 “Financial instruments: parties have had the opinion that the
Recognition and Measurement”; IFRS 7 requirements in IAS 39 are difficult to
“Financial instruments: disclosure”. understand, apply and interpret. This
determined IASB to develop a new standard
299
for financial reporting for financial - a derivate that will or may be

instruments that is principle-based and less settled other than by the exchange
complex. of a fixed amount of cash or
IAS 32 and IAS 39 define a financial another financial asset for a fixed
instrument as “any contract that gives rise to a number of the entity’s own equity
financial asset of one entity and a financial instruments. For this purpose the
liability or equity instrument of another entity’s own equity instruments do
entity”. In that case we can identify a first not include puttable instruments
classification of financial instruments in that are classified as equity
financial assets and financial liabilities. instruments.
A financial asset is any asset that is: From these definitions we can assert that a
a. cash; financial instrument is the contract, not the
b. an equity instrument of another entity; assets or liability, and thus we must be clear
c. a contractual right to receive cash or what is meant by contract, contractual right
another financial asset from another and obligation.
entity or to exchange financial The assets can be classified in to real assets
instruments or financial liabilities with and financial assets. The real assets are those
another entity under condition that are assets which have intrinsic value due to their
potentially favorable to the entity; utility. These assets can be tangible or
d. a contract that will or may be settled intangible items which are utilized in the
in the entity’s own equity instruments economic circuit. Financial assets are
and is: considered legal rights over real assets. Their
- a non-derivate for which the entity value results from contractual relation and not
is or may be obliged to receive a from their material form. A financial asset
variable number of the entity’s facilitates funds transfer in the economy.
own equity instruments or On the other hand, financial liabilities are
- a derivate that will or may be regarded as the counterpart financial assets.
settled other than by the exchange They are created by the issuer of financial
of a fixed amount of cash or assets and they consist in fulfilling the
another financial asset for a fixed obligations issued.
number of the entity’s own equity Romanian legislation provides the
instruments. For this purpose the classification of assets held by an entity,
entity’s own equity instruments do depending on the nature, the way of
not include instruments that are utilization and liquidity, in fixed assets and
themselves contracts for the future current assets. This classification is similar to
receipt or delivery of the equity’s that provided by IAS 1 Presentation of
own equity instruments. Financial Statements, which classify the
A financial liability is any liability that is: assets in the balance sheet, depending on the
a. a contractual obligation to deliver cash time of generating economic benefits, in
or another financial asset to another current assets and non-current assets.
entity or to exchange financial Regarding liabilities the Romanian
instruments assets or financial regulations were inspired by international
liabilities with another entity under standards, operating a classification in current
condition that are potentially liabilities and long-term liabilities. The
unfavorable to the entity. structure of two categories of liabilities is
b. a contract that will or may be settled similar; differentiation is based on “time of
in the entity’s own equity instruments settlement”.
and is: We can observe that there is no separate
- a non-derivate for which the entity category of financial assets and financial
is or may be obliged to deliver a liabilities. Financial assets are to be found
variable number of the entity’s both in the fixed assets (certain categories of
own equity instruments or long term financial assets) and current assets
300
(certain categories of receivables, short-term of long-term liabilities and in the category of

financial investments and cash). Financial current liabilities.
liabilities can be included both in the category
Financial assets Financial liabilities
Long term financial assets Short term and long term liabilities
- loans granted to affiliated entities - loans received from the bond issue
- loans granted to entities with which the - amounts owed to the credit institutions
company is linked by virtue of
- trade payables – suppliers
participating interests
- Bills of exchange payable
- Investments held as fixed assets
- amounts due to the affiliated entities
- other loans
- amounts due to the entities with which
Debt
the company is linked by participating
- Trade Receivables interests
- Amounts receivable from affiliated - other payables

entities
- Amounts receivable from entities with

which the company is linked by virtue of
participating interests
- Other receivables
Short term financial investment
- Short-term investments
Cash and bank accounts
- Cash and bank accounts
Fig. no. 1 – Financial assets and financial liabilities according to the Romanian accounting legislation
According to IAS 39, financial instruments - Loans and receivables; and

are classified into the following four - Available-for-sale.
categories, after initial recognition (David
Alexander, 2009): Evolution of the new standard
- Held for trading; IAS 39 has been widely criticized as a
- Held-to-maturity investments; standard that is complex and often difficult to
301
apply. In April 2009, the G-20 Leaders, the fair value through other comprehensive
Financial Stability Board, and various other income, impairment assessment only for
stakeholders urged the IASB and the US amortized cost assets, no more available-for-
Financial Accounting Standards Board (the sale assets, no more held-to-maturity assets
FASB) to reduce the complexity of and tainting rules, no more embedded
accounting standards for financial instruments derivatives in financial assets, no more
and make significant progress towards a unquoted equity investments measured at cost
single set of high quality global accounting less impairment.
standards by the end of 2009. At the same IFRS 9 applies to financial assets only.
time as IFRS 9 is not mandatory until 1 Pending a new standard on classification and
January 2013, entities may adopt the first measurement of financial liabilities, the
phase for reporting periods ending on or after guidance on financial liabilities continues to
31 December 2009. In this paper, we apply. The standard provides new
highlight the main changes that come into classification and measurement rules of
effect with Phase 1 of IFRS 9 and provide a financial assets. It does not change the scope
brief commentary on how they could impact of IAS 39 on when a financial asset should be
the world of business. recognized.
In order to accelerate the replacement of IAS The standard contains two primary
39, the IASB divided the project into phases. measurement categories: amortized cost and
The main focus of the first phase is the fair value. A financial asset is classified into a
classification and measurement of financial measurement category at the beginning. A
assets. The Board’s work on the other phases financial asset qualifies for amortized cost
is currently ongoing, and includes: only if it meets both of the following
impairment of financial instruments, hedge condition:
accounting, financial liabilities and - the asset is held within a business model
derecognition. The aim is to replace IAS 39 in whose objective is to hold the asset to
its entirety by the end of 2010. As each phase collect the contractual cash flow;
is completed, chapters with the new - the contractual terms of the financial
requirements will be added to IFRS 9, and the assets give rise, on specified dates, to cash
relevant portions deleted from IAS 39. We flow that are solely payments of principal
expect that the developments in other phases and interest on the principal outstanding;
of this project will be watched keenly by If a financial assets does not meet both of
many constituents from the world over. these condition then is measured at fair value.
As a result, IFRS 9 will eventually be a According to IFRS 9, the classification and
complete replacement for IAS 39 Financial measurement of financial assets depends upon
Instruments: Recognition and Measurement. whether the asset is a derivate, or a debt
An early adopter of IFRS 9 continues to apply instrument or an equity investment. All
IAS 39 for other accounting requirements for derivates are measured at fair value through
financial instruments within its scope that are profit and loss account unless they qualify and
not covered by IFRS 9 (e.g. classification and are designated for hedge accounting.
measurement of financial liabilities, Debt instruments are measured at amortized
recognition and derecognition of financial cost if they meet the condition stated above.
assets and financial liabilities, impairment of Otherwise they are measured at fair value
financial assets, hedge accounting, etc.). through profit or loss account. Even they
satisfy the amortized cost tests, they may also
be measured at fair value through profit or
The headlines of IFRS 9 loss account by using fair value option to
The most important changes brought by IFRS avoid measurement mismatch. Equity
9 refers to: new classification and investments that are held for trading must be
measurement requirements for financial measured at fair value through profit and loss
assets, new criteria for amortized cost account.
measurement, new measurement category –
302
Fig. no. 2 – New classification and measurement of financial assets according to IFRS 9
The existing categories “held to maturity”, Instruments that would meet the existing held
“loans and receivables” and “available for for trading definition in IAS 39 would be
sale” are eliminated. Financial assets that measured at FVTPL as they are not held to
meet de condition qualify for amortized cost collect the contractual cash flows of the
measurement even if they are quoted in an instrument.
active market. Although the objective of an entity’s business
model may be to hold financial assets in order
The business model approach is a to collect contractual cash flows, the entity
fundamental building block of the new need not hold all of those assets until
standard and aligns the accounting with the maturity. Thus an entity’s business model can
way that management set up assets in its be to hold financial assets to collect
business while also considering the contractual cash flows even when sales of
characteristics of assets. The business model financial assets occur. For example, an
is determined by the entity’s key management entity’s assessment that it holds investments
personnel and does not depend on to collect their contractual cash flows is still
management’s intentions for an individual valid even if they would sell the investments
asset. It is instead determined at a higher to fund capital expenditure. However, if more
level. An entity could have more than one than an infrequent number of sales are made
business model for managing financial assets out of a portfolio, the entity needs to assess
and may manage different portfolios of assets whether and how such sales are consistent
with different objectives. with an objective of collecting contractual
For example, an entity may have a retail cash flows.
banking business where the objective is to
collect the contractual cash flows of loan Contractual Cash Flow Characteristics of
assets and an investment banking business the Financial Asset, the second condition for
where the objective is to realise fair value a financial asset to qualify for amortized cost
changes through the sale of loan assets prior measurement is that the contractual terms of
to their maturity. In this case, assuming that the asset give rise, on specified dates, to cash
the financial instruments give rise to cash flows that are solely payments of principal
flows that are payments of principal and and interest on the principal outstanding.
interest (see cash flow characteristic test Interest is defined as consideration for the
below), in the retail banking business they time value of money and credit risk. The
may qualify for amortised cost measurement standard contains several examples to
even if similar financial instruments in the illustrate the application of this condition.
investment banking business do not.
Embedded Derivatives
Embedded derivatives are no longer separated described below, gains and losses on
from hybrid contracts that have a financial remeasurement are recognized in profit or
asset host. Instead, the entire hybrid contract loss.
is assessed for classification using the For an investment in an equity instrument that
principles above. IAS 39 continues to apply to is not held for trading, IFRS 9 allows an
derivatives embedded in financial liabilities. entity on initial recognition to elect
irrevocably to present all fair value changes
Fair Value Option from the investment in other comprehensive
The standard allows an entity to designate a income (OCI). No amount recognised in OCI
financial instrument on initial recognition as is ever reclassified to profit or loss at a later
measured at fair value through profit or loss date.
regardless of it meeting the criteria to be In a change, dividends on such investments
measured at amortized cost. This election is are recognised in profit or loss, rather than
available only if it eliminates or significantly OCI, in accordance with IAS 18 “Revenues”
reduces a measurement or recognition unless they clearly represent a recovery of the
inconsistency (“accounting mismatch”). This cost of the investment.
election is retained from IAS 39. For a financial instrument classified as fair
value through profit and loss (FVTPL), all
Reclassification changes in fair value are recognized in net
Reclassification of financial assets is required income.
if the objective of an entity’s business model For a financial instrument classified as
changes in a manner that is both significant to FVTOCI, the amount of the change in fair
the entity’s operations and demonstrable to value recognized in OCI is the change in fair
external parties. Such changes are expected to value excluding current-period interest
be “very infrequent”. accruals (including amortization or accretion
When an entity changes its business model for of any premium or discount) and credit losses,
managing its financial assets, it is required to which are recognized in net income. In
reclassify all affected financial assets to addition, changes in fair value that were
reflect the revised business model. previously recognized in OCI are recognized
Such changes are expected to be infrequent. in net income when they are realized through
Reclassification is prohibited in all other sale or settlement.
circumstances. Financial instruments classified as fair value
If an instrument is reclassified from amortised through earnings and FVTOCI, respectively,
cost to fair value, it should be measured at fair are displayed separately on the balance sheet.
value on that date; any difference between the For financial instruments classified as fair
carrying amount and fair value would be value through profit and loss other than debt
recognised in a separate line in the income liabilities, an entity must present the fair value
statement. amount on the face of the statement of
If an instrument is reclassified from fair value financial position, but is not precluded from
to amortised cost, the fair value of the also presenting the amortized cost amount.
instrument on the date of reclassification For debt liabilities classified as fair value
becomes its new carrying amount. through earnings, an entity must present the
Reclassifications should be accounted for amortized cost amount in addition to the fair
prospectively from the reclassification date, value amount.
which is defined as ‘the first day of the For financial assets classified as FVTOCI, an
reporting period following the change in entity must present the following amounts in
business model that results in an entity separate line items on the face of the
reclassifying financial assets’. statement of financial position: amortized
cost, cumulative credit losses, remaining
Investments in Equity Instruments difference between fair value and amortized
Investments in equity instruments are cost, fair value.
measured at fair value and, except as
304
Conclusion The elimination of the available-for-sale

The impact of IFRS 9 will depend on what category and the requirement for all equity
types of financial asset an entity holds, how it investments to be measured at fair value
has classified them previously, and what removes the multiple impairment
choices it makes under the new classification methodologies that currently exist in IAS 39
model. (as illustrated in the table on the next page).
One of the most significant changes will be IFRS 9 only requires impairment assessment
the ability to measure some debt instruments for financial assets measured at amortized
(e.g. investments in government and corporate cost. The rules on impairing amortized cost
bonds) at amortized cost which under IAS 39 assets remain unchanged at this stage, but
would in many cases have been measured at they are potentially subject to change under
fair value if quoted in an active market. the proposals in the IASB’s exposure draft
Other instruments, such as asset-backed Financial Instruments: Amortized Cost and
securities (e.g. some cash-collateralised debt Impairment, issued in November 2009, which
obligations) and service concession proposes an ‘expected loss’ approach to
receivables, that may under IAS 39 have been impairment measurement.
measured entirely at amortized cost or as
available-for-sale will more likely be Bibliography
measured at FVTPL.
Hybrid financial assets with separated [1]. Maria Carmen Huian, Instrumentele Financiare:
embedded derivatives at FVTPL (e.g. Tratamente şi Opţiuni Contabile, Editura
CECCAR, Bucureşti, 2008;
synthetic-collateralized debt obligations) will [2]. David Alexander, Anne Britton, Ann Jorissen,
instead by measured at FVTPL in their International Financial Reporting and Analysis,
entirety. published by Cengage Learning, 2009;
Assets that are currently classified as held-to- [3]. Margareta Oprea, Recunoaşterea şi Evaluarea
maturity are likely to continue to be measured Instrumentelor Financiare, Revista Gestiunea şi
Contabilitatea Firmei, nr. 11-12, decembrie 2009,
at amortized cost as they are held to collect Editura Tribuna Economică;
the contractual cash flows and often give rise [4]. *** First Impression: IFRS 9 “Financial
to only payments of principal and interest. instruments”, published by KPMG International
However, the current tainting rules and Standard Group, part of KPMG IFRG limited,
restrictions from applying hedge accounting 2009;
[5]. www.ey.com/
for interest rate risk or prepayment risk that [6]. www.kpmg.com
apply to held-to-maturity assets will be
removed.
305
ACCOUNTING INFORMATION: MANAGEMENT USEFUL TOOL
Ph. D Student Ec. Postolache ( Maleş ) I. Daniela

“Alexandru I. Cuza” University of Iasi, Romania
males_daniela@yahoo.com
Abstract: In the "knowledge society", as the period that we cross is often defined, relevant, viable and timely
information is of great use, being highly valued by managers. An additional knowledge is provided to managers by the
accounting information processed under proper economic analysis. Our paper proposes five models for economic
analysis and processing of accounting information, to support decision making. The models presented in this study are
developed based on the following accounting instruments: cash flow, administration accounting reports, simulations of
the estimated result depending on pricing or depending on the resources allocation, the income and expenditure budget.
Our results support the managerial accounting researchers interested in using economic models for development of
such decision support tools. Areas where managers can be helped through practical application of the examples
presented by us are: prediction of financial resources, the decision on the product portfolio, the decision to reduce the
cost, prices foundation, making income and expenditure budget using historical method. Also, through a suggestive
scheme, we bring to the attention of management researchers our view about the importance of using the full range of
knowledge made available to decision-makers by the professional accountant. At the end of this paper we noted that
effective use of accounting information perspective is drawn by Intelligent Computing Systems.
Keywords: managerial accounting, economic modeling, economic decision, economic analysis models, decision support
JEL Classification: C 51, C 53, C 81, D 81, O 21
What are the necessary information to

1. Introduction the manager in that moment?
Accounting information can support
In 1999 Peter F. Drucker supports the decision making?
idea that the development of "information To these questions we will try to find
market" will be the foundation of the "new some answers in this paper.
information revolution", induced not by the
people in charge of information technology, 2. Literature review
but by accountants and publishers, leading to
enterprise and information vision changes, in In what stage are you? Where you
the most traditional of our information going? We can not make these remarks
systems: accounting. “And then both without appropriate information required by
enterprises and individuals will have to learn managers. We can not direct without
what information they need and how to get it. information, mostly from the accounts.
THEY WILL HAVE TO LEARN TO Managerial Accounting is a provider of
ORGANIZE INFORMATION AS THEIR information for the managers, general and
KEY RESOURCE.” (Drucker, 1999)[7] detailed information. General side is assured
At the beginning of XXI century has of financial accounting, while the details are
become increasingly clear that if we timely from administration accounting, where the
benefit from required information, we can preponderance of information is ensured by
optimize the use of knowledge in making the the costs. (Ţânţă, 2006) [19]
right decisions, and not only the correct In J. A. Perrolle (1998) [16] opinion,
decision, even successful one. in the assessment and understanding of
It is well known that one of the information in accordance with the interests
prerequisites for a business to be and aims of people, production of knowledge
characterized as "successful", is getting the occurs, and wisdom is the ability to know
profit. Decisions aimed at ensuring economic where and how to apply knowledge and to
efficiency are, from this point of view, very imagine the consequences of our actions on
important, and managers often face situations ourselves and others. C. Grayson et al. apud
where they need to take such a decision. Drăgănescu (2001)[6] shows how in every
organization there are hidden reservoirs of
306
knowledge that are unknown and its must be market value with a special skill which the
extracted (knowledge mining), captured, manufacturer or dealer must prove, is the
organized and transferred to increase the power secret of the leader.
value, profit and efficiency. Information on the allocation of scarce
At the beginning of twenty-first resources, capital and people, determine the
century, there are major changes in terms of successful or, conversely, poor performance
how managers can use computer systems that of organizations. Drucker maintains that there
support decision making; more and more is not a better way to improve organization
computers are linked in a network, so that performance than the comparison between
decision support systems can quickly become initial forecast of capital and the
shared goods for the entire organization; achievements. Also, in their effort to create
organizations can now easily use the Intranet wealth, managers must concern about the
and Internet networks offering high- allocation of human resources with the same
performance applications for the decision care, necessary to think, propose and analyze
makers in any point on the globe; many objectives, which they manifest in the capital
organizations develop distributed systems, issue.
intranets and extranets, enabling the easy These tools, Drucker believes, informs
access to data stored in multiple locations and and directs tactical decision, only current
enabling the collaboration and the issues of business, and not strategic, is
cooperation with the whole world; integrating covered by this information.
systems performed even beyond within an
organization. Managers can make better 3. Useful accounting information for
decisions because they have more precise decision making
information. (Luban, 2001)[10]
Necessary condition for the In the fight to mitigate, whenever
organization leading process which has as possible, the adverse effects caused by the
purpose the creation of wealth, show economic crisis on the results of activity, in
Drucker (2005), is that managers have the this period when good economic activity is
necessary information to "judge". They are vulnerable, managers prefer to take well-
grouped into four sets of useful "tools": founded and documented decisions, while
3. basic information; they give up to the possibility to choose,
4. information on productivity; based only on their own experience or "flair",
5. information on competence; the best between various options.
6. information on the allocation of scarce Just mentioned economic context
resources. leads to a greater care when deciding on the
Cash-flow and liquidity forecast are liquid assets. Cash flow analysis information
considered by Drucker as part of the basic are useful for effective management of the
set of necessary information for a manager, liquid assets.
as, to establish a correct diagnosis, a doctor Encashment forecast inform managers of
requires a first set of information that could financial resources likely to have sometimes,
give first alarm about a body illness (weight, and so this accounting tool is a real support in
pulse, temperature, blood pressure). the decisions on the allocation of such
The author considers important for resources, as we can see in the model relieved
managers, as information on productivity, the in the Figure 1.
added value analysis and the existing ratio
between company performance and best
performance in the field, or even the best
performance of the business.
Analysis of competence (the ability to
do what others can not or hardly do, but not
so good) helps managers in terms of
opportunities early detection. To combine
307
+ Encashment 1.1 + Encashment 2.1 + Encashment 3.1

. . .
. . .
+ Encashment 1.n + Encashment 2.n + Encashment 3.n Legend
- Payment 1 - Payment 1.1 - Payment 2.1 - Payment 3.1 T – cert
- Payment 2 - Payment 1.2 - Payment 2.2 - Payment 3.2 T - uncertainty
. . - Payment 1.n .
. . . .
. . . .
- Payment n - Payment 1.n - Payment 2.n - Payment 3.n
- Payment 2.n+1 - Payment 3.n+1
= Liquid assets =Liquid assets =Liquid assets =Liquid assets
balance account balance account balance account balance account
Previous period Next period 1 Next period 2 Next period 3
Figure 1. Financial resources forecasts model by means of cash flow information
to determine the composition of the product
Timely find out of which products are portfolio, through the particularization that
loss-recovery is an important condition to occurs at the product level, in the various
avoid registration of adverse results. categories of income, cost or profit, as in the
Information from administration accounting example shown in Figure 2.
reports provide support to managers in order
+ Sales revenue + Service income + Sales revenue + Rent income

+ Franchising . . .
income . . .
. . . .
. . . . Legend
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
- Material - Material - Material - Material expenses T – profit

expenses expenses expenses - Third part T - loss
- Third part - Third part - Third part expenses
expenses expenses expenses - Salary costs
- Salary costs - Salary costs - Salary costs .
. . . .
. . .
= Profit = Profit = Loss = Profit
Product 1 Product 2 Product 3 Product 4
▼
Decision of
portfolio retain
Figure 2. Products performance evaluation model using administration accounting information
A confidence range is given to reduce of economic crisis on the performance of

costs, as a solution for mitigating the effects various economic entities. Adoption of this
308
solution is not always substantiated by on the elements of business infrastructure,

adequate financial and economic analysis to which, in turn, can reflect even on the scale of
counter the influence of the waiver to some turnover.
costs may have on the level of turnover. Figure 3 is a schematic representation
Reduce certain costs can have adverse of this idea:
results on product quality, on the logistics or
Decisions on cost Direct Related Influence on
reductions consequences consequences turnover
Staple  ► Cheaper staple ► Decrease the ► Decrease
quality indices
Legend
Materials  ► Decreased cost of ► Reducing the ► Decrease
packaging impact on buyers cost level
reduction
Third part ► - ► - ► - √ maintained
expenses √ cost level
Taxes √ ► - ► - ► -
Wages √ ► - ► - ► -
Financial  ► Waiving all or part ►Reduce liquidity, ► Decrease
loan arrear payments,
interruptions in
supply and sales
Figure 3. Model of economic analysis on the reducing costs effect on turnover
How resources can be allocated on time
Decision for establishing the sales intervals, either immediately following, or
price for a particular product is difficult to more distant, is a major concern for
make, when, in the conditions of economic managers.
crisis or other adverse conjuncture, the seller
has to face a market where demand is Depending on the estimated revenue,
declining, competition is fierce and the power we can appreciate the economic entity's
of the market absorption is low. Using ability to support certain investment activities,
accounting information, simulations of the development of product portfolio, or to
estimated result can be carried out, as can be support the costs of entering on new markets,
seen in Figure 4. etc., or even to support the corroboration of
Such simulations, based on the two or more such activities.
breakeven, are useful to determine prices, Following the example model shown
which, in line with market prices, ensure in Figure 5 a method that ensures the
profitability for each product. accuracy of the forecasts is to call accounting
Any institution or operator outlines information from business history, especially
expectations for one's own activity. Whether by comparing this information with initial
they use or not, a budget of income and projections of earlier revenue and expenditure
expenditure, in each entity people make budgets.
certain estimates on the work to be done.
“A” product price determination
Variant 1 Variant 2 Variant 3 Variant 4
Direct costs 4000 Direct costs 4000 Direct costs 4000 Direct costs 4000
Indirect costs 400 Indirect costs 400 Indirect costs 400 Indirect costs 400
General 100 General 100 General 100 General 100
administrative administrative administrative administrative
expenses expenses expenses expenses
Total cost 4500 Total cost 4500 Total cost 4500 Total cost 4500
309
Amount 45 Amount 45 Amount 45 Amount 45

Unit cost 100 Unit cost 100 Unit cost 100 Unit cost 100
ESTIMATED 20 ESTIMATED 1 ESTIMATED 0 ESTIMATED -1
PROFIT 20% PROFIT 1% PROFIT LOSS
Proposed price 120 Proposed price 101 Proposed price 100 Proposed price 99
Market price 102 Market price 102 Market price 102 Market price 102
Difference = -18 Difference = 1 Difference = 2 Difference = 3
market - proposed market - proposed market - proposed market - proposed
price price price price price price price price
Figure 4. Simulation model for price decision foundation
Previous period Estimate

Forecasts Realization Difference Variant 1 Variant 2 Variant 3 Variant 4
Revenue Revenue Rr-Rf Revenue Revenue Revenue Revenue
(Rf) (Rr)
Cost (Cf) Cost (Cr) Cr-Cf Current Activity Current Activity Current Activity Current
Cost Cost Cost Activity Cost
Equipment e Equipment e Cost of new
repairs cost repairs cost sales channel
development
for existing
product
New product New product
development development
cost cost
Profit (Pf) Profit (Pr) Pr-Pf Profit1 Profit2 Profit3 Profit4
Figure 5. Sample preparation of revenue and expenditure budget, based on a review of the previous budget
All the economic models we have economic knowledge to policy makers. This
presented in this paper generates information becomes possible when, carrying out practical
that can be used by managers when they face work in accounting, he uses both procedural
with a dilemma that must be solved. rules imposed by laws, but especially, some
Decision-making process deployment rules that are status from heuristic knowledge
is optimized when it is based on professional of the structure and dynamics of economic
accounting experience, who, using reasoning processes "captured" in the accounts.
and recommendations, provide valuable
Schematic illustration of this type of decision making is done in Figure 6.
310
Accounting Reports Economic

analysis
Heuristic
reasoning
Information
Procedural
rules
Knowledge
Manager Decision
Economic
efficiency
Figure 6. Scheme of the decision-making process for decisions aimed at economic efficiency
Using accounting information in economic appropriate access to detailed information

models could be an additional asset that available at the right time, an appropriate
managers can rely in the current economic solution, which supports contemporary
context of small steps that are critical in management measure, is provided by
determining competitive advantage. Many intelligent computer systems that can generate
researchers refer to the current stage of alternative on economic decisions, may grant
development of human interconnection substantial aid in the ranking of alternatives,
framework, as "knowledge society". or may point out the various consequences of
Now, those who have ennobled decisions.
information in the process of knowledge Starting from this certainty, we can
chiseling are winners in the permanent draw and voice the following trends of the
competition for primacy, for persuasion in accounting information use:
terms of need and importance of some  use of computerized systems for
products, or just to win respect and providing accounting information to
recognition. support decision making;
Professional accountant, who can  providing access to decision support
demonstrate capacity for analysis and systems used throughout the
synthesis, is the leading provider of economic organization, with networks;
knowledge to manager, and that may be  development of intranet and extranet
critical to business success. systems which allow easy access from
The most of knowledge is made when any point on the globe, the accounting
the companies are using modern technology information stored in multiple places,
to optimize decision-making. and collaboration and cooperation
with the whole world;
4. Conclusions and perspectives in the use  integrate existing systems with portals
of accounting information to provide access to some public
information;
Given the economic processes  managers can take better decisions
complexity and the importance of the because they will have summary
311
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312
HOW TRUE IS THE TRUE AND FAIR VIEW
Alexandra-Daniela Socea, PhD. Student

“Alexandru Ioan Cuza” University
Iaşi, Romania
alexandra.socea@yahoo.com
Abstract: Due to the changing business environment and continued growth of professionalism, the true and fair view is
not only a condition that must be met by any financial-accounting information, but also a necessity for foundation of
firm’s sustainable decisions – the reliability of information. The true and fair view objective requires the best
description of the company. Annual accounts give a true and fair view if they don’t provide a false representation of
reality. User needs are different and change with changing economic and social environment, which involves the
communication of complete informations. Accounting performance criterion is the true and fair view, extent that it
reflects objective reality, through a complete and relevant inform on economic facts and processes, expressed in
standard currency. Accounting is looking for legitimacy, truth of the economic facts and phenomena, that is the true
and fair view search, which requires accuracy and precision in informing the user. The true and fair view distortion
may occur starting with the recording momet of possible inaccuracies in the evidences. Special regulations often
contain ambiguities or inconsistencies. Often distorsion of accounting data is a reality. Under these conditions
accounting always tends toward the desire performance: the true and fair view.
Keywords: true and fair view, annual financial statements, balance sheet, profit and loss account, cash flow situation,
statement of changes in capital
JEL Clasification: M41
1. Introduction this reality. There are concerns in accounting

field for improving the tools and techniques
The paper envisages the appreciation of in order to quantify and represent including
how true is the true and fair view of a the contribution of qualitative elements to
company through annual financial statements. company’s development.
Such an approach requires some The understanding and appreciation of
considerations on the true and fair view true and fair view, on informations market, as
concept: its origin, its significance, the “true” a product of supply and demand, is under the
criterion and the “fair” criterion. Our theoretical framework of the accounting
approach focuses on the synthesis and impact, which in a general overview includes
accounting reporting documents, as principal three parts in its structure. The fundamental
means of communication of accounting component is represented by the objectives of
information. In this sense each financial financial reporting generated by users
statement is presented in terms of possibilities financial informations requirements in
and limits in providing a true and fair view. making economic decisions. The component
Considering the implications of the true of the quality characteristics of the elements
and fair view in decision process, the topic is of financial statements provide the usefulness
one of present interest. The approach is based of accounting informations. Accounting
on consulting the literature and formulating policies and reporting component includes
personal opinions rigorously substantiated. concepts, principles and rules of recognition,
Accounting, like other social sciences, is a evaluation and assessment of assets, through
construct of the human mind, having the role which is presented in fact the true and fair
of representing economic reality. In this view of accounting informations [10].
context takes shape the question whether one
can speak of truth in accounting and in what
measure accounting tools are appropriate to
surprise a reality more and more complex.
What surprises accounting is only a part of
reality, namely the economic and quantifiable.
Remains a question mark on the quality of
313
2. Considerations on the true and fair reflected in the consolidated accounts -

view concept individual accounts is a paradox fully
accepted.
The origin of true and fair view concept is Literary meaning of the “true and fair
found in anglo-saxon doctrine, being used view” expression is to render a true and fair
since 1947 in English companies law view of reality, to be honest (fair) and true
(“Companies Act”) under the phrase “true and (accurate). Ensuring reliable view depends on
fair view”, stating: „Every balance sheet of a how accounting applies.
company shall give a true and fair view of the “True” criterion refers to the ability and
state of affairs of the company at the end of obligation of financial statements to provide
its financial year, and every profit and lost real and honest informations on assets and
account of a company shall give a true and enterprise’s income. Considering
fair view of the profit or loss of the company simultaneously [3]:
for the financial year.” In 1900, the same - the reflecting truth, resulting from
source used for the first time the expression of record economic facts and phenomena, where
“a true and fair view”, and in 1944 made the and when they occurred, in appropriate
word “thorough and honest balance sheet, that documents;
gives a true statement of assets and - the construction truth, which envisages
liabilities”. that accounting information is built on the
The expression “true and fair view” was principles and standards of accounting;
never defined by the rules of normalization - the observation truth, which involves
bodies or legal texts, which can be based on direct shooting of reality at some moment;
the following arguments [12]: - the processing truth, which refers to
- avoid a definition that may be too rigid structuring and logical ordering of
and set up a concept susceptible of future presentation systems (balance sheet, profit
evolutions; and loss account, cash flow statement,
- surrender to the challenge to find a statement of changes in capital, accounting
satisfactory definition that suits various users policies and explanatory notes).
of accounting information. “Fair” criterion influence the ensuring of
As a fundamental component of the true and fair view, so when recording the
concept of “true and fair view” we rediscover operations and transactions in evidences, and
the principle of anglo-saxon origin “primacy subsequently, at professional reasoning.
of reality over appearance” (substance over While for mainland accounting the true and
form concept) set out in rule FRS 5 (Financial fair view is a fundamental objective, for the
Reporting Standard) and international anglo-saxon accounting it is a fundamental
recognized: the operations are recorded and principle to which all other principles
presented as their nature and their financial converge.
reality, without taking into account, in unique Regarding the true and fair view
manner their legal appearance (nature). IAS 1 interpretation, there are at least two major
includes and defines the principle of priority points of view. The one of anglo-saxon origin
of reality over form in this way: operations is accredited by countries were the
and others enterprise’s events should be disconnection of accounting from fiscality
recorded and presented according to their was made and financial statements appear as a
nature and financial reality, without taking summary of financial accounting and
into account, in unique way, their legal managerial accounting. Given that these
ownership. countries accounting dualism is not very
The meaning given by the french people strong, the true and fair view of the economic
to “substance over form” principle implies reality offered by accounting, has priority.
subordination of the judiciary in the economy, The continental perspective, with the
namely not taking into account the fact that exception of the Netherlands, highlights the
the need that generated the principle was that financial accounting that served and still
of reliable information and the duplicity serves fiscal purposes, in countries like
314
France, Germany. Exceptions are companies also continue its activity in the foreseeable
that rely on international or U.S. referential. future. It is assumed in this sense that the
The true and fair view as financial company has no intention or need to liquidate
accounting objective is tackled in the or significantly reduce its activity.
accounting based on normative regulations in Exercises independence envisages the
the light of notions of regularity, sincerity and delimitation of revenues and expenses
loyalty. corresponding to the financial reporting
Regularity requires that any information without taking into account the date of receipt
relating to the financial statement of assets or payment.
and the results is obtained by respecting the Professional reasoning underlying
rules and procedures sarting from basic accounting policy and estimation techniques
principles. Compliance with rules mean strict which builds and operates its own accounting
requirements imposed by laws, regulations system of an enterprise, suitable to its specific
and practices. and environmental conditions, for presenting
Honesty requires good faith and fairly the financial position, financial
professionalism application of accounting performances and financial position changes.
standards and procedures, depending on the In terms of quality, accounting
knowledge that managers must normally have informations are generated by different and
on the reality, the importance of operations uneven sources. We consider data derived as
and statements. Honesty is the care of a result of transactions and events in the
preparing an information as close to reality, current period, which are registered when
without concern about understanding it [5]. they occur through the rigorous application of
The first record of the idea of sincerity is accounting policies. Informations from events
made in french law in 1937. Honesty is a after the balance sheet date, but before the
quality criterion which serves as a reference annual financial statements being approved,
in controlling the reliability of accounting due to the circumstances that existed at the
message. It corresponds to will of being very balance sheet date lead to adjusting of
close to reality. Honesty means information financial statements. Those arising from
producer’s care to evolve a message as close events after the balance sheet date and before
to the truth, without necessarily being annual financial statements being approved,
concerned about his understanding by the resulting from conditions which didn’t exist at
user. the balance sheet date, don’t lead to adjusting
Fidelity refers to compliance or non- of financial statements.
compliance of accounting informations with
facts, standards, regulations and accounting 3. The synthesis and accounting reporting
settlements. documents in providing a true and fair
Objectivity of accounting informations is view
provided by four concepts: accrual
accounting, business continuity, exercises Accounting settlements in accordance
independence and accounting reasoning. with 4th Directive of the European Economic
Accrual accounting requires that the Community introduce the concept of true and
effects of transactions and events should be fair view, examine the concept of annual
recognized when they occur and are recorded accounts, the need of complementary
in corresponding period's financial statements informations and the possibility of
and not as cash or its equivalent is received or derogations [14]. Article two of the 4th
paid. The financial statements are prepared on Directive highlights the reference system in
an accrual accounting basis and provide the form of necessary rules for obtaining a
informations about past transactions and true and fair view. They cover matters such
future events. as:
Business continuity involves preparing - annual accounts include the balance
financial statements that take place starting sheet, the profit and loss account and annex,
from the assumption that the company will elements that together constitute a whole;
315
- annual accounts must be established - the variations in monetary mass

clearly and in accordance with the Directive; decreases public confidence in the relevance
- annual accounts must give a “true and of summary accounting documents and leads
fair view” of assets, financial position and to consideration of other sources of financial
results of the company; information for the investment decisions;
- when applying the Directive is not - the activity fluctuations between the
sufficient to give “a true and fair view” times of year end and early next accounting
additional informations must be added; cycle are not included in balance sheets;
- if in exceptional cases the application of - the influence of external factors, non-
provisions of the Directive is opposite to the monetary, on the enterprises’s activity can not
obligation of providing “a true and fair view”, be reflected through the annual accounts.
it is necessary to derogate from this Despite these information limitations,
provisions to achieve subject. Any such dynamic analysis of several successive
derogation shall be mentioned in the annex, balances can be a basis for designing
well reasoned, indicating its influence on the estimated balance sheets, thus contributing to
assets, financial position and results. financial decision and to the future behaviour
Accounting Law republished makes direct of the company. In this regard, the balance
references to the concept of true and fair sheet will be processed in the financial and
view, without explicitly defining the notion functional balance sheet so as to achieve a
itself. According to article 9 of the law, the real and credible financial view.
official documents for presenting financial Profit and loss account highlights the
and economic situation are the annual approach by which they reached the final
financial statements, established by law, patrimonial status, using optic financial flow
which should provide a true and fair view of of revenue and expenses. Profit and loss
financial position, financial performance and account provides to the company’s
other informations related to the activity [13]. management a consistent information basis
Obtaining a true and fair view does not that allow knoledge of performances at a
always mean focusing on matters of detail, global level. It also details the revenue and
but combining them in global views, able to expenses elements that contributed to the
capture current live and whole perspectives. achivement of the result and to the
In the literature, this idea is outlined as identification and quantification of the
follows: “Photographing each tree of the influencing factors.
forest does not necessarily get a clear picture Strategic management of the result
of the ensemble. An airy photo is preferred to represents the operation that managers are
make you think about its surface, consistence using for adjusting the size of the accounting
and density to [11]. result through calculated revenues and
The balance sheet is considered the expenses (reserves, depreciations) and the
essential document for financial analysis, but deferred expenses and revenues (expenses and
it also presents a series of limits [9]: revenues in advance). This freedom available
- the absence of records regarding at to managers in evaluating and presenting
internal resources developed by the company, financial statements is given by the level of
that can’t be associated to specific costs, for theese calculated expenses and revenues,
example the collective experience of the respectively postponed, called accounting
employees; variables of adjustment.
- the evaluation based on historical costs Informational value of the profit and loss
puts under question the veracity of the account is limited by this elasticity of the
financial situation at the end of the year; result. However, users of financial
- the effect of recognition principle in the informations are more interested in business
annual accounts, only the costs that performance determined by the economic
contributed to achieving revenue in the outcome and less on accounting income.
period; Profit and loss account does not include the
necessary elements to calculate this indicator.
316
In the enterprise’s economy, the total into the accounts, during the year or at the end
revenue does not represent all the time of the period, making arbitrary adjustments to
incomes, as not all payments does not always amounts reported in financial statements that
mean spending. Some expenditures generates are not correlated with daily formal records,
payments, while others are not followed by adjustments consolidation and unjustified
actual payments. Therefore, balance sheet and reclassifications.
profit and loss account does not provide Expressed truth through uncertain
sufficient information about the company's financial statements is a fact, entered into a
cash management process. historic variant of capitalism, that
The cash flow statement express the conditioning it, as today’s financial market
contribution and the ability of enterprise’s capitalism [4]. Through accounting principles,
functions to generate cash and cash equivalent such as all principles of modeling, a reduction
and to ensure a proper use of cash flow. of the complexity of reality has place, beeing
Enterprise is an assembly of inputs, simplifying principles through their nature.
convertions, outputs and self-adjustments. What is not measurable in money, which can
Joining the concept of cash flow to production not be evaluated - perhaps what is the most
factors is a prerequisite faithful image of an important for business, human and
enterprise patrimony. immateriality - hardly find their place in the
The informations contained in statement accounting situations.
of cash flows are serving the users in Accounting representation spread the
performing the judgement about the available intentions of those who are responsible with
amount in a specific time and certainty of booking, managers of enterprises assisted by
future cash flows. This gives an indication of their accountants, which determines the more
the relationship between profitability and cash or less objectiveness of it. Enterprise, as
generation capacity and implicitly on the represented object is not a real object in its
quality of the obtained profit. entirely and this is the cause for beeing
Statement of cash flows presents a indistinguishable. Representation lends itself
number of limits on: to an agreement subject to the legal
- definition and role of Treasury; construction of social essence, accounting
- content of the operational functions and standards, which landed in a capitalist system,
the calculation mode of associated flows; leaving the “manufacturer” a degree of
- performance evaluation through cash freedom. Auditors are those who control this
flows; accounting freedom of the company’s
- insufficiency of the appreciation and manager. Their role is to keep business
forecasting long-term evolution of financial leaders on the road, not very narrow, a
position. practice acceptable legally and socially. They
Statement of changes in proper capitals are the ones who ensure, ultimately, the truth
includes the structural variation between the contained in the accounts. We allow for that
start and end of the financial year, reflecting eventually accounts “true” are accounts
the ability to mantain the capital and the result “certified” by independent professionals,
of the exercise. This synthesis is intended to external auditors, by reference to rules issued
fairly reflect all transactions that resulted in by lawful courts.
an increase or a net reduction of shareholders IASB standards provides a nuanced
capital. Is a key indicator of creditworthiness interpretation of the true image, transposed
of an enterprise and presents opening and into Romanian legislation. To give a fair
closing balances for capital, capital primes, presentation, financial statements should
each reserve, retained earnings, profit or loss provide information that should be:
and their changes. - relevant to decisional needs of users;
The distortion of financial statements - credible, in that: represent faithfully the
resulting from fraud often involves handling results and financial position of the company,
financial reporting process by incorrect, reflect the economic substance of events and
improper or unauthorized daily registrations transactions and not merely their legal form,
317
are neuter, that is unbiased, are careful and the true and fair view search, which requires
complete under significant aspects. accuracy and precision in informing the user.
The true and fair view distortion may occur
4. Conclusions starting with the recording momet of possible
inaccuracies in the evidences. Very often, the
To reflect the true and fair view, through professional accountant is called upon to
annual financial statements, accounting manipulate or embellish accounting
should be conducted on the basis of own informations, at the request of the manager.
principles, without being distortioned by Accounting quantifies, processes and
exceptional value adjustments solely for tax communicates in monetary language the state
purposes. To achieve this goal, accounting of the company’s activity. In this context, it
must be disconnected from fiscality, namely, will never be possible assimilation of natural
the fiscal recognition of expenses dimension, measure units, preserved as the absolute
should not be conditioned by their standard in the most rigorous conditions, with
representation on accounting. Although the currency that quantifies the economic
formally accepted, disconnecting accounting value. Therefore, any assessment that uses a
from fiscality, in the implementation process relatively standard can only lead to results in
continues to face many difficulties. the same way. The cause is the value
Substantial progresses can be found, benchmark used, the currency, and not
sometimes unexpectedly, followed by returns accounting. The latter has provided solutions
and reinterpretations. to attenuate effects from the currency swing,
The literature states that countries that as restating accounting information, indexing,
require compliance with true and fair view, revaluations, inflation-adjusted accounting
tend to treat and interpret the concept systems etc. But they don’t cancel that effect.
according to the local historical, social, Relations true and fair view – reality,
cultural, legal, political, economic and concordance - derogation, honesty -
environmental specific. responsibility, neutrality - social credibility of
If terms such as “true and fair view” and information, highlight the complexity of the
“present fairly” have different meanings for concept of true and fair view. They generate
different participants in financial accounting, accounting progress, forcing it to new
they may contribute to an expectations gap. theoretical and practical approaches,
This gap is defined here as the difference accordingly to users growing demands.
between the perceptions and expectations Accounting permanently tends to
users have of general purpose financial performance desire: the true and fair view.
statements’ quality and meaning, and the What it always realise is “a true and fair
quality and meaning of general purpose view”.
financial statements the accounting profession
prepares (and audits). This fact is succinctly Acknowledgements
described as the gap between what financial This work was supported by the the
statements mean and what many non- European Social Fund in Romania, under the
accountants think they mean [1]. Although the responsibility of the Managing Authority for
“audit expectations gap” has been intensely the Sectoral Operational Programme for
researched, the financial reporting disparity Human Resources Development 2007-2013
has the potential to be broader and misleading [grant POSDRU/88/1.5/S/47646]
to users.
Accounting performance criterion is the References:
true and fair view, extent that it reflects
objective reality, through a complete and [1] Allen, D., Coming Out of the Straits, Management
relevant inform on economic facts and Accounting—London, Vol. 69, No. 1, 1991
[2] Burlacu, D., Valenţele cognitive şi decizionale ale
processes, expressed in standard currency. informaţiei contabile oferite de conturile anuale,
Accounting is looking for legitimacy, truth of Tehnopress Publishing House, Iaşi, 2009
the economic facts and phenomena, that is
318
[3] Călin, O., Ristea, M., Bazele contabilităţii, [9] Nobes, A., An European Introduction to Financial
Didactic and Pedagogic Publishing House, Accounting, Prentice Hall International, 1994
Bucureşti, 2004 [10] Radu, F., Eficienţa informaţiilor contabile în
[4] Colasse, B., Fundamentele contabilităţii, Tipo managementul întreprinderii, Tehnopress
Moldova Publishing House, Iaşi, 2009 in Publishing House, Iaşi, 2009
translation Tabără, N. [11] Raffegeau, J., Dufils, P., Corre, J., Lopater, C.,
[5] Feleagă, N., Dincolo de frontierele Memento pratique. Memento comptable, Editions
vagabondajului contabil, Economic Publishing Francis Lefebvre, Paris, 1991
House, Bucureşti, 1997 [12] Tabără, N., Horomnea, E., Toma, C., Analiza
[6] Horomnea, E., Fundamentele ştiinţifice ale contabil-financiară. Teorii, concepte, metode şi
contabilităţii. Doctrină. Concepte. Lexicon, Ediţia tehnici de valorificare a informaţiei contabil-
a II-a, Tipo Moldova Publishing House, Iaşi, 2010 financiare în procesul decisional, TipoMoldova
[7] Horomnea, E., Audit financiar. Concepte. Publishing House, Iaşi, 2001
Standarde. Norme, Alfa Publishing House, Iaşi, [13] Legea contabilităţii nr. 82/1991, republished in
2010 M.O. 454/2008
[8] Horomnea, E. (coord), Tabără, N., Budugan, D., [14] OMFP 3055/2009 from 29 october 2009 for
Georgescu, I., Beţianu, L., Bazele contabilităţii. approval of accounting standards with European
Concepte. Modele. Aplicaţii, Sedcom Libris directives
Publishing House, Iaşi, 2008 [15] International Financial Reporting Standards,
CECCAR Publishing House, Bucureşti, 2009
319
FINANCIAL AND ECONOMICAL ANALYSIS IN EVALUATION AND FIXING OF THE

RISKS
Drd. ec. Sofronia Cristina Antonela

Universitatea Alexandru Ioan Cuza Iaș i, România, antosofronia@yahoo.com
Abstract: The present paper presents the advantages of using the economic and financial analysis in determining the
reliability of the trading companies. The purpose would be to access the credit and non-reimbursable financing.
Banks have their own system of determining a client’s risk degree level. Different information is included
within the analysis. The factors to be considered are financial, juridical, litigation, the history of the company and its
debts, commercial and brand related information. Classifying it among certain indicators and the potential of the
business are the determining factors which bring a certain brief and establish the risk level of the company.
The opportunities offered by this non-reimbursable financing have offered the possibility of extending the use
of financial and economic analysis. Each projects needs a business plan enclosed and a detailed financial analysis of
the cash-flow as well as a presentation of the activity the company is going to have in the next few years. The result has
to prove the companies ability to generate profit in order to get the investment back.
In the following years, each and every trading company willing to develop will have to take its decisions in
accordance with the financial and economic analyses done on a regular basis. The economic environment is very
dynamic and even unpredictable sometimes which means that a closer analysis would underline the weak points which
may not be discovered otherwise.
Keywords: analysis, risk degree, reliability, non-reimbursable financing, monitoring.
JEL Classification: M41
Introduction decision. Higher liabilities can be requested

for the companies that have a risk factor or a
In this paper I will present the more careful monitoring for the projects with
assessment methods and the classification non refundable financings.
into risk categories of the enterprises that
request credits or non refundable financings. Content
The risk analyses are based on many factors,
among which we can mention the company’s After analyzing the documents from
history, but they also take into account the the Romanian Development Bank, as well as
economy’s and the company’s future some treatises I have selected the following
possibilities of evolution. relevant and permanent factors that the
The classification into certain financers focus on when they analyze the
indicators determines the assignment of a credit applications:
certain score that influences the financer’s
Table no. 1 – Total credit risk estimate– legal persons

Risk Categories Indicators Score
Z ≥ 0,16 50
0,13<Z≤0,16 40
0,10<Z≤0,13 30
1. Financial risk 0,04<Z≤0,10 10
2. Trading risk PmIC > PmPF 2
PmIC = PmPF 16
PmIC < PmPF 20
3. Liability risk  Safe liabilities 20
 Liabilities with medium 10
safety
 Unsafe liabilities 2
4. Managerial risk, with:  A qualified team, with 5
 Experience and plenty of experience in
qualification this field
320
 Diverse qualification 2
and reduced experience
 Unqualified team 1
without experience
 Relationship with the  Very good relationship 5
bank and the third with the bank and the
parties third parties
 Good relationship with 3
the bank and the third
parties
 Inadequate relationship 1
with the bank and the
third parties
5. The sensitivity risk  r < 75% 10
 r > 75% 0
Tabel no.2 - Financial indicators and means of calculation:

1. General liquidity = Active assets/ Current debts
2. Patrimonial solvency = Inherent fund/ Passive aggregate *100
3. Gross profit rate = Gross profit/ Turnover *100
4. Profit earning capacity rate = Net profit/ Inherent fund *100
5. Debts rate = Current debts/ Passive aggregate
Tabel no.3 - The indicators’ score:

No. Indicators 20 points 15 points 10 points 5 points
1. General liquidity > 2,1 1,6 – 2,1 1,3 – 1,6 1 – 1,3
2. Patrimonial > 30% 20% - 30% 10% - 20% 0,1% - 10%
solvency
3. Gross profit rate >5% 3% - 5% 1,5% - 3% 0,1% - 1,5%
4. Profit earning > 10% 6% - 10% 3% - 6% 0,1% - 3%
capacity rate
5. Debts rate 0 – 0,25 0,25 – 0,50 0,50 – 0,75 0,75 - 1
Classification based on categories of credit Depending on the score that they

worthiness obtain, each economic agent with legal
individuality will be included in one of the
following categories of credit worthiness:
Tabel no.4 – Categories

Category A 85 – 100 points
Category B 70 – 84 points
Category C 50 – 69 points
Category D 25 -49 points
Category E < 25 points
Tabel no. 5 - Interpreting the classification based on categories of credit worthiness:

Category A  The financial performances are very good and allow the interest’s
payment till due. Therewith, plans are foreshadowed to maintain the
financial activities at a high level.
Category B  The financial performances are good and very good, but can’t be
maintained at this level in the near future.
Category C  The performances are satisfying, but can worsen.
Category D  The financial performances are low and have an obvious recurrence,
at short periods of time.
Category E  The financial performances indicate losses and there is a high
probability that neither the overdue rates nor the interests can be paid.
321
In the case of the projects with non take into account the company’s particular
refundable financing, the indicators are aspects: equipments, spaces, turnover, clients,
established by each paymaster. For example, suppliers, partners, payments and collection
for the minimis assistance offered by the plan, development perspectives, favorable or
Ministry of Public Finances the financial unfavorable legislation, all of these being
indicators and their limits are: included in the general macroeconomic
1. The General Solvency Rate context.
R(SG) >1,66 In the case of investment credits and
R(SG) = Total assets/ Total debts business financing, the bankers have imposed
2. The turnover’s capitalization stricter conditions due to the economic crisis.
R(ca) >=1% Thus, if in the past the accepted liabilities had
R(ca) = 100* ( Net Profit/turnover) to cover 100% from the value of the loan, in
3. The current liquidity rate the present these have to be much higher. The
R(LC) >=1 evaluation of the loan is done by the bank,
R(LC) = (Current assets/Current Debts) and other goods are accepted besides the
The projects for the Regional immovables.
Operational Program have the following In the case of the projects for the
compulsory indicators and score: Regional Operational Program, the value of
a. RIRF/c <= 9%, VNAF/c <0 6 the liability has to cover at least 125% from
b. 9% < RIRF/c <= 13%, VNAF/c >= 0 3 the non refundable financing throughout the
c. RIRF/c >13%, VNAF/c > 0 0
project’s period.
These data confirm the fact that the
Bankruptcy risk has a high occurrence
financial-economic analysis has become
on the Romanian market, and not only here.
generalized in the domain of refundable and
Bankruptcy is present in the moment when
non refundable financing. This is also
the company cannot make its payments
confirmed by the fact that the credit access
because of a negative cash-flow. Bankruptcy
rate has dropped because of the economic
risk leads to the increase of the liability risk.
crisis; on the other hand the rate of the non
The liability risk is present when there are
refundable funds, offered by the European
problems with the mortgaged goods, namely
Union, has increased dramatically. To sustain
in the situation when the creditor doesn’t
this statement we have the AM POS DRU
return the credit and doesn’t pay the related
statistic that attests that the financial
interests, as it is specified in the contract. To
allocation at open lines has been exceeded by
diminish the risk of non refundable credits
2-3 times until October 2010 (namely: 5.1,
and to prevent major losses, the banks elicit
2.1, 2.3), in a matter of days from their
real and personal liabilities from trade
opening.
companies.
Actually, to obtain a financing a
business plan must be created which has to
Table no.6 - Risk classes:
Class I 100-80 points
Class II 79-65 points
Class III <65 points
Table no 7 - The meaning of the risk classes:
 Risk Class I The trade companies from this class have very high financial companies,
which permits them not to have delays at the bank. There is also a plan
to maintain these favorable financial performances, and the liabilities
offered by these clients assure maximum security. The credit risk is low
 Risk Class II The financial performances of the companies are good, but the
possibility to maintain this level in the near future is not favorable. The
credit risk is medium, and the company has to fulfill additional
conditions regarding financial indicators or liabilities in order to receive
the favorable notification.
 Risk Class III The financial performances are low or indicate losses, the debts to the
bank cannot be paid and the liabilities don’t assure quick liquidities. The
credit risk is very high.
322
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324
TRUE AND FAIR VIEW IN THE CONTEXT OF THE EUROPEAN ACCOUNTING

HARMONIZATION
Neculai TABĂRĂ, PhD Professor

neculaitabara@yahoo.com
Alina Ionela RUSU, PhD student
alina.ionela.rusu@gmail.com
Abstract: Accounting aims to continuously achieve the desideratum for performance witch refers to the „true and fair
view”, insofar the degree of the objetive reality’s reflection by a complete and relevant information on economic facts
and processes reflected in the currency. But the approach to the meaning and practical applicability of this concept
varies internationally and that because there are major differences between accounting systems witch interact globally.
Multiple images that intended to be faithful, raise questions about the referentilas underlying the true and fair view,
about the organization of the accounting normalization and about those whom are addressed the provided information.
So, this paper aims not to find a generally accepted definition of the concept of true and fair view but a brief
presentation of the main coordinates that have influenced its conceptual development and of his role in the process of
european accounting harmonization.
Keywords: true and fair view, annual financial statements, accounting harmonization, normalization, accounting
referential
JEL Classification: M41, F30
Introduction financial position and results" of the

company, the fourth European Directive
Because there is trade between human beings introduced in 1978 a notion to validate the
or business, because the quantities of human, business representation through the annual
financial, natural and technical resources are financial statements. The Regulation no.
limited and because third party is interested in 1606/2002 of the European Parliament and
financial information produced by the Council, which decided to apply International
societies, accounting is a vital presence in Financial Reporting Standards at EU level
today's society. The true wealth is measured makes the compliance of true and fair view by
today, primarily, by the quantity and quality these rules a "fundamental condition" of their
of information held at a time, and the adoption in European Union countries.
accounting generates the information that is However, this representation must take into
necessary to support the decision. Thus, account, on one hand, the requirements of
modern management can not be conceived rules to be applied to develop financial and
without the offer of accounting information. accounting information about the company
Given this role of accounting, which makes it and, on the other hand, the complex and
become “a vital institution of capitalism” multiple reality of this entity.
(Colasse, 2009, p. 14), it goes without saying
that its practice must comply with the rules About accounting normalization…
issued by the legitimate courts. If the
accounting rules would not comply with “Accounting is a social construction, and - as
official documents that it would not draw any such - reflects the society in which it
value to different stakeholders who use them developed” (Iqbal, 2002, pp. 190). It is
to clarify their relations with the enterprise subject of official rules and unwritten rules
but also to make their own decisions. This has that have developed through customary
led development in various countries and then practice. Due to the social role of accounting
worldwide, of the rules that guide accounting information, the accounting must provide a
practice. „normalized” reality. The supply of
Requiring annual financial statements to "give accounting information must be distributed
a true and fair view of assets and liabilities, evenly in society and it requires the
325
normalization of the accounting, in order to index) that can be justified by authentic

match the demand for accounting documents. Accounting, whose main
information, to allow the knowledge of the objective is to provide a true and fair view of
truth about the economic entity. this reality, select, order, classify and
The accounting normalization exists today in determine correlations based on regulations
most countries. Each of them has a and accounting principles between these
terminology and rules that lead to a identical events. The fidelity of the information is
presentation of the financial statements for all equivalent with the presentation in the
enterprises. The homogeneity of the provided financial statements of as more accurate
information facilitates comparisons over time picture of economic reality, to obtain a true
and between enterprises and allow national reproduction of the work of an entity in the
accountants conducting macroeconomic accounting documents.
aggregations. In addition, the normalization
brings to users a guarantee of the consistency The emergence of the true and fair view in
and the rigor with which the accounts were the Fourth Directive
kept.
But “the accounting provide a representation The concept of true and fair view has its
of the reality based on concepts and principles origins in the Anglo-Saxon accounting
of those «searching» to know reality at a time practice and culture, having been filed since
(...), so it is not socially neutral” (Ionaşcu, 1948 in the United Kingdom. In section 49 of
1997, p. 130), so that the offer of information the Companies Act, under the phrase “true
is selectively distributed in society. An and fair view”, it is stated that “every balance
example is the adoption of accounting rules as sheet of a company shall give a true and fair
a process of dialogue and compromise view of economic and financial situation of
between the different actors involved in the the company at the end of the year, and each
normalization accounting, favoring one or profit and loss account of a company must
more groups. To normalize the accounting give a true and fair view of the profit or loss
means “to choose the model, the made by the company” (Boţa-Avram, 2009, p.
representation which will serve as model, as 42).
reference, as rules to follow” (Colasse, 1995 The purpose of financial statements is to
apud. Ionaşcu, 1997, p. 138). Therefore, the provide an image of the economic entity as
accounting provides to the users of close as possible to the reality. The
accounting information an accounting model approaches of the international accounting
of the firm. “The normalized accounting view referential systems about how it is defined the
of the firm has a historical character, in other quality, the reliability of these images are still
words, the accounting truth is a product of the quite different, and that's because there are
historicity” (Ionaşcu, 1997, p. 137). This is major differences between the various
because the accounting normalization is a accounting systems that interact globally.
compromise between different social partners In 1978, on the British proposal, the members
(state, shareholders, employees, banks) and of the European Economic Community, have
the accounting rules have a historical adopted an uniform methodology or vision in
character. They are different from one period the field. Thus, the Fourth Directive provides
to another and from one country to another. that the annual accounts (including a balance
The accounting history points out that the sheet, a profit and loss account and the notes
statutory requirements in accounting are often on the accounts, which together constitute a
responses to financial scandals, to abuses of composite whole) prepared in accordance
political, economic and social system, or to with the provisions of this Directive, shall
economic pressures. give a true and fair view of assets and
The reality is made up of events taking place liabilities, financial position and results of the
in the enterprise (economic, legal, company. If, after the preparation of annual
administrative operations) and outside it financial statements in accordance with the
(inflation, sectorial crises, changes in stock provisions contained in the Directive, the
326
information gathered in the accounts are national language version is relevant for each
insufficient to meet the requirement of true Member State.
and fair view, it is recommended to the Snippet versions in different languages on the
accounts preparatory to provide additional Fourth Directive’s fragment, presented in
data in the notes. In the event that, even by Table 1 illustrates the differences in
providing additional information, the true and translation. The accounting law issue from the
fair view can not be ensured, the directives European Directives can not hide the fact that
provided for the possibility to derogate from there are more true and fair views (Honore,
their provisions (DE4, art. 2). So, according 2000). But he considers them as equivalent.
to European standardization bodies, the true When the true and fair view result naturally
and fair view is an overriding principle. from the application with good faith and
competence of national accounting provisions
The concept of true and fair view in the issues from European Directives, it
national versions of the directive and its corresponds to a conventional representation
implementation into nationals legislations of the company, from each Member State,
obtained by respecting the regularity and
This concept has been translated into various sincerity of the annual financial statements.
languages in the European Community, but
Table 1. Phrases used by some European Union member states before and after the adoption of European
Directives
Expression in the law before European Directive text
Analyzed Expression in the law different
the implementation of translate in the national
country from Directive
European Directive language
France, une image fidele (een
Belgium, - getouw beeld – in -
Luxembourg Flemish)
ein den tatsächlichen unter Beachtung der Grundsatze
Verhältnissen ordnungsmässigerBuchführung
Germany - entsprechendes Bild – a (continue as in Directive) – in
view that corresponds to accordance with accepted
the real situation accounting principles
rappresentare in modo veritiero e
Italy - un quadro fedele
corretto
United
Kingdom, true and fair view true and fair view -
Ireland
god regnskapsskikk – consistent
Norway - et palitelig bilde
with good accounting practice
1. geeft een zodanig inzicht
dat een verantwoord oordeel
kan wordern gevormd –
geeft getrouw en stelselmatig –
provide a view which allows
Netherlands een getrouw beeld present credible, consistent and
issuance of a well-founded
clear
opinions geeft getrouw en
stelselmatig – present
credible, consistent and clear
la imagen fiel ... de confomidad
con las disposiciones legales – a
Spain - una imagen fiel
true view in accordance with legal
provisions
en rattvisande bild – a
en rattvisande bild – a true, fair
Sweden - true, fair and not
and not misleading view
misleading view
Source: (Nobes, 1993, p. 41)
The objective of true and fair view has the assures users of the financial statements that
role of a final test (Klee, 2009, p. 907) which the provided information is complete,
327
consistent with the facts, clear and useful. The concept of true and fair view in a
From the viewpoint of those who prepare national context
financial statements, this test helps to a better
compliance with the rules and determine its to In Romania the concept of true and fair view
provide explanations and additional appears in the Accounting Law no. 82/1991
information in the notes. And sometimes, all which set a target of annual financial
it causes derogation from the rules. statements to provide a “true and fair view of
However, through the true and fair view, the financial position, financial performance and
Accounting Directives do not realize a other information related to the work of an
unification of national regulations but a entity” (L82/1991, art. 9, par. 1). Under the
“coordination” of their own. It establishes influence of the Fourth Directive, the national
“minimum equivalent legal requirements” and accounting regulations, the Minister of Public
contribute to “the objectives of comparability Finance’s Order no. 3055/2009 for approving
and equivalence of information” (DE7). the accounting regulations harmonized with
Equivalence between the true and fair views EU Directives, require additional disclosure
provided by the accounts of European in the notes when the application of their
enterprises is obtained through the provisions is not sufficient to give a true and
correspondence of national and Community fair view of assets, liabilities, financial
rules. position and profit or loss of the entity. If, in
exceptional cases, the application of a
The true and fair view in the international provision of the regulations is contrary to the
vision true and fair view, the entity must depart from
that provision and any such departure must be
The vision of International Financial presented in the notes, together with an
Reporting Standards is that the true and fair explanation of its reasons and an overview of
view concept can not be approached as an its effects of the value of assets, liabilities,
independent concept, it does not exist outside financial position and profit or loss (OMFP
the conceptual framework promoted by the 3055/2009, pt. 9-11).
IAS/IFRS. Thus, according to IAS1 Romanian accounting specialists, members of
Presentation of Financial Statements, academia, have tried to define the true and
financial statements must present a true and fair view. Thus, a first opinion is that “true
fair view of financial position, financial and fair view should be approached as a sum
performance and cash flows of the entity. of the requirements of regularity and
Financial statements reflecting a true and fair sincerity, because they are always mentioned
view of the firm's position is obtained by together as a double obligation that, on the
applying the principal qualitative one hand is imposed by the requirements of
characteristics and appropriate accounting the Accounting Law, and on the other hand is
standards together with additional disclosure closely linked to the achievement of true and
in the notes when necessary. Only in fair view” (Tabără and Horomnea, 2000, p.
extremely rare and well justified cases are 51; Bunget, 2005).
allowed deviations from the requirements of Regularity means the compliance of
specific standards to ensure a fair accounting rules and procedures in force. As
presentation. But in this case must provide far as legal texts are insufficient to cover
additional information on the financial regularity, accounting jurisprudence and
statements about: deviations from the doctrine are used. Excessive emphasis on
standards and his nature, the arguments that compliance with accounting rules in defining
justify the deviation, its effect on net profit or the concept of true and fair view, sometimes
loss, assets, liabilities, equity and cash flows affects the real sense that it should have that
for each period presented. concept.
328
True and fair view = confirming

Normalization + Pertinence or + correcting
+ Regularity Sincerity + their past
Credibility
evaluations (pertinence) (Horomnea, 2001).
Figure 1. – The equation of true and fair view True and fair view in the context of
Source: (Ristea, 1994, p. 59)
different accounting referentials
Compliance with certain accounting rules
does not necessarily mean that we are dealing Because accounting rules and principles lead
with a fully true and fair view of the financial to a true and fair view is necessary that this
situation of an entity, and that based on the set of rules and principles are well known,
consideration that if these rules and norms are understood and accepted by the users of
strongly influenced by tax, is distorted the financial statements. That's because “the view
economic substance of the information can be true only in relation to the
presented. interpretation that the user is doing. Each one
The literature defines sincerity, taking, most is seeking his own truth” (Matiş, 2003, p.
of the times, the definition from the French 146).
Accounting Plan, as „good faith application Assuming that there may be more true and
of the rules and procedures, depending on the fair views of the same reality, as there may be
knowledge you need to have, normally, on the more photos of the same object, depending on
reality and magnitude of transactions, events certain factors (light, distance, etc.), is
and situations” (Feleagă and Ionaşcu, 1998, p. promoted the idea that “true and fair view can
435). Sincerity lies both in the quality of not be confused with an exact copy of the
documents, books and in the accounting economic reality, but is the image that can be
professional conduct. “In the process of trusted” (Matiş, 2003, p. 145). Thus, the
reporting, is an essential difference between values of financial indicators obtained by a
sincerity (care to prepare an information sheet society will be different depending on the
to be as close as possible to reality) and reporting system used (for example,
fidelity (additional care of a good reception of accounting rules from Romania vs. IFRS).
the message by the third party users)” The question that arises in this situation is that
(Feleagă and Ionaşcu, 1998, p. 436). the situation reflects the reality? Both
Sincerity is insufficient when it appears in an situations reflect reality, but a reality specific
inappropriate context, while fidelity is not to the local economic and social environment
only the reality of the description, but, and that because accounting rules do not have
especially the misleading and timely a universal power of action but they have
submission of this reality. become true because social actors have
Can achieve an equation of true and fair view accepted them and gave them recognition.
(fig. 1). Therefore, in vision of professional Therefore, an accounting representation
accountants, in Romania, the true and fair normalized and real, at the same time, is
view requires first, the existence of a set of obtained based on the accounting rules
rules governing the production and use of recognized by a particular social community.
accounting information (normalization). The This may explain why the concept of true and
information produced by accounting ‒ fair view varies from country to country:
following (regularity) and applying in good Germans, concerned about the relevance of
faith, to be closer to reality (sincerity), the the information, associate the accounts with
rules in force ‒ do not contain significant “the most secure possible” image, French,
errors, are not biased, and users can be with ”the sincere and consistent with rules
confident that the information accurately image”. In countries where financial
represents what he wanted to represent or accounting still serves the fiscal purposes, the
what is expected to represent (credibility). He view is considered true and fair only insofar
also must have the ability to influence as the annual accounts comply with tax
economic decisions of users by helping them regulations. The Romanian accounting law
evaluate past, present or future events, took the French methodology, considering
that the compliance of accounting principles,
rules and methods, is sufficient to obtain a opting for total disconnection between tax and
true and fair view. accounting. To ensure a true and fair view is
Therefore, the European accounting illustrates necessary that the documents underlying
the reality of a different and branched accounting records be accurate, authentic and
accounting referential. Indeed, the directives genuine. Also, the quality of accounting
are supplemented by different national information and, implicitly, the true and fair
provisions applicable in different ways, view is determined by the professional
depending on the size of the firms. competence of accountants and application by
Conversely, by adopting International them, in good faith of the accounting rules
Financial Reporting Standards, the European and regulations. Both accountants and
Union is considering setting up a single managers should be loyal, honest and not to
referential. This will allow the presentation distort reality. The degree of fidelity of the
“of a true and fair view of the financial image provided by financial statements is
position, performance and cash flows of an greater, since they contribute in an objective
entity” (IAS 1). However, because the way to the substantiation of the decision-
interpretation and assimilation of these rules making process of their users, who base their
by Member States will be done in the business decisions on the image of the
language of each country and in the context of economic reality provided by them.
the national concepts and practices, will be Since the first use of the concept of true and
difficult to create a single regulatory fair view it is more than half a century, and
framework to ensure an easy time and space during this period, it has been written
comparison of the information provided by extensively in the field. However, until now,
the annual accounts. this concept does not have a single, clear
definition that is generally accepted by most
Instead of conclusions professional accountants and regulatory
bodies governing the activity of accounting.
The concept of true and fair view requires the This is because the interpretations that are
preparation and presentation of annual given to this concept bear the imprint of the
accounts based on accounting principles economic environment factors which is
(regularity) and use as much as possible the contemporary with those who aim at finding a
exact figures (sincerity), to offer a more single definition of true and fair view. As a
objective reality, without intentional result of the differences between the many
distortion, manipulation or omission of the accounting practice, and between national
material facts. accounting laws, the possible definitions that
A challenge for professional accountants is could be given to this concept vary widely.
the question “how true and fair must be the For countries whose accounting systems have
true and fair view?” Responses are varied, an Anglo-Saxon influence, true and fair view
depending on the philosophy of the is the supreme principle that should guide and
accounting system in which they practice. So, govern the accounting and the preparation of
those in continental systems, which are financial statements – the supreme qualitative
characterized by a greater or lesser influence requirement. In contrast, in countries whose
of taxation on accounting, will measure the accounting systems are continental influence,
degree of fidelity of the true and fair view the true and fair view is the accounting
according to regularity, which requires objective, what should be achieved.
compliance with rules, regulations. But those But the absence of a generally accepted
rules have sometimes a fiscal nature and definition need not be seen as a bad thing
contradict the economic content of accounting because it allows avoiding excessive rigidity,
information, which can affect the quality of leaving to the accounting practitioner the
the true and fair view. opportunity to contribute to the development
On the other hand, professionals belonging to and evolution of the concept. Accounting is a
the accounting systems of Anglo-Saxon model for the representation of the business
origin, will give priority to economic reality, reality but this reality is always changing.
330
That is why accounting principles or concepts [9] Ionaşcu I., Epistemologia contabilităţii,
must be in a perpetual evolution, to rank as Economică, Bucureşti, 1997
[10] Klee L., (2009). Image fidèle et représentation de
close to reality. l’entreprise, în Colasse B. (coord.), Encyclopédie
de Comptabilité, Contrôle de Gestion et Audit,
Acknowledgements 2ème édition, Economica, Paris, pp. 901-911;
[11] Matiş D., Contabilitatea operaţiunilor speciale,
This work was partially supported by the Intelcredo, Deva, 2003
[12] Nobes C., (1993). The true and fair view
European Social Fund in Romania, under the requiremment: impact on and of the Fourth
responsibility of the Managing Authority for Directives, Accounting and Business Research, 24
the Sectorial Operational Programme for (93), pp. 35-47;
Human Resources Development 2007-2013 [13] Ristea M., Noul sistem contabil din România,
(grant POSDRU/88/1.5/S/47646). Cartimex, Bucureşti, 1994;
[14] Tabără N., Horomnea E., Dimensiunile etice ale
profesiunii contabile, Revista Contabilitatea,
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risques et charges, Les actes du XXIe Congrès de companies, avaible at
L’Association Française de Comptabilité, Angers, http://www.cnpf.md/file/leg_com/dir_UE_as/Dire
18-20 mai 2000, avaible at http://www.afc- ctiva_78-660CEECont_Cons%20 unele
cca.com/archives/docs_congres/congres2000/Ange %20societati.pdf (DE4);
rs/Fichiers /HONORE.pdf; [19] ***, Seventh Council Directive 83/349/EEC of 13
[7] Horomnea E. (2001). Tratat de contabilitate, vol. June 1983 based on the Article 54 (3) (g) of the
I, Sedcom Libris, Iaşi; Treaty on consolidated accounts, avaible at
[8] Iqbal Z., International Accounting. A Global http://www.cnpf.md/file/leg_com/dir _UE_as/
Perspective, 2nd edition, South –Western Directiva_83-349-CEE_Cont_Cons.pdf (DE7).
Thompson Learning, Cincinnati, Ohio, 2002
331
332
________________________________________________
STATISTICS, DATA PROCESSING

(INFORMATICS) AND MATHEMATICS /
STATISTICĂ, INFORMATICĂ ŞI MATEMATICĂ
333
334
ANALIZA DINAMICII ŞI PONDERII SERVICIILOR ÎN HOTELURI ŞI RESTAURANTE,

ÎNVĂŢĂMÂNT, SĂNĂTATE ŞI ASISTENŢĂ SOCIALĂ ÎN ROMÂNIA
Prof. univ. dr. Elena-Maria Biji

Prof. univ. dr. Eugenia Lilea
Conf. univ. dr. Mihaela Vătui
Academia de Studii Economice Bucureşti
Asist. univ. dr. Florin-Paul-Costel Lilea
Universitatea Artifex Bucureşti
Abstract: The paper "Analysis of dynamics and weight of services in hotels and restaurants, education, health and
social assistance in Romania", starting from the importance of the services weight in the national economy and for the
characterization of life quality, in the article are discussed the main tendencies concerning the dynamics and structural
changes in key services activities. For the analyze of these phenomena are used data published in official statistics, for
the identifying the characteristics of these services during the development period of a stable and sustainable national
economy.
Keywords: services market, classification of services on the national and international levels, services weight as an
element of national economic development and raising the quality of life, services structure depending on the activity
nature, size degree and nature of property.
JEL Classification: C220, L830, I210.
În procesul de dezvoltare istorică a care poate fi interpretat ca indicator de

economiei naţionale, un loc important revine eficienţă şi anume raportul dintre cifra de
creşterii cantitative şi calitative a serviciilor, afaceri şi numărul de personal.
în general şi a celor prestate către populaţie, În Tabelul 1 sunt prezentate şi
în special. Importanţa lor creşte cu deosebire calculate datele statistice cu privire la evoluţia
în perioada de integrare a României în celor doi indicatori amintiţi, dinamica faţă de
Uninunea Europeană. În acest sens, în mod anul precedent şi faţă de anul 2002, precum şi
frecvent, ţările Uniunii Europene sunt cifra de afaceri raportată la numărul de
ierarhizate în funcţie de mai multe criterii personal pentru activitatea Hoteluri şi
printre care şi “ponderea serviciilor în PIB”. restaurante.
În prezenta lucrare ne-am propus ca, Din interpretarea acestor date putem
pe baza datelor publicate în statistica oficială, trage o primă concluzie şi anume că în toată
să analizăm pe baza numărului de salariaţi şi a perioada luată în discuţie valorile celor doi
cifrei de afaceri, dinamica acestor indicatori şi indicatori au crescut de la un an la altul, iar
ponderea acestora în perioada 2002-2008. Din dinamica cifrei de afceri a devansat
cadrul serviciilor am ales ca fiind cele mai întotdeauna dinamica numărului de personal.
reprezentative pentru interpretarea calităţii Prin compararea celor două şiruri de indici cu
vieţii, trei tipuri de activităţi: Hoteluri şi bază în lanţ am putea aprecia că în ambele
restaurante, Învăţământ şi Sănătate şi cazuri a existat o tendinţă de creştere sub
asistenţă socială pe care le-am analizat pe formă de progresie geometrică cu o rată
rând. medie anuală de 8,5% la numărul de personal
Pentru realizarea obiectivelor propuse şi de 14,8% la cifra de afaceri. În consecinţă,
am înregistrat datele privind numărul de rapoartele dintre cele două variabile sunt
personal şi cifra de afaceri şi am calculat pozitive şi în continuă creştere. Astfel, în anul
dinamica cu bază în lanţ şi cu bază fixă a 2002 raportul a fost de 30,1 mii lei/persoană
acestora. Am considerat că este necesar ca pe ajungând la 42,1 mii lei/persoană în anul
lângă analiza independentă a acestor 2008, ceea ce înseamnă o creştere a eficienţei
indicatori să calculăm şi un indicator calitativ de 1,4 ori.
335
Tabelul 1. Dinamica numărului de personal şi a cifrei de afaceri, în perioada 2002-2008,

în România, pentru activitatea Hoteluri şi restaurante
Anul Număr de Cifra de Dinamica Dinamica Dinamica Dinamica Raport
personal afaceri numărului cifrei de numărului cifrei de între cifra
(mil. lei de personal afaceri faţă de personal afaceri faţă de afaceri
preţuri faţă de de anul faţă de de anul şi număr
constante) anul precedent anul 2002 2002 de personal
precedent (%) (mii

(%) (%)
lei/persoan
(%)
ă)
2002 88850 2670,00 - - 100 100 30,1
2003 95118 2954,70 107,05 110,66 107,05 110,66 31,1
2004 105269 3366,46 110,67 113,94 118,48 126,08 32,0
2005 114733 3826,92 108,99 113,68 129,13 143,33 33,4
2006 123071 4652,54 107,27 121,57 138,52 174,25 37,8
2007 136035 5309,49 110,53 114,12 153,11 198,86 39,0
2008 145925 6146,80 107,27 115,77 164,24 230,22 42,1
Total 809001 28926,92 108,62 114,91 - - 35,8
În Tabelul 2 sunt prezentaţi aceiaşi indicatori referitori, însă, la situaţia din Învăţământ.
în România, pentru activitatea Învăţământ
Anul Număr de Cifra de Dinamica Dinamica Dinamica Raport
personal afaceri numărului Dinamica numărului cifrei de între cifra
(mil. lei de personal cifrei de de personal afaceri faţă de afaceri
preţuri faţă de afaceri faţă faţă de de anul şi număr
constante) anul de anul anul 2002 2002 de personal
precedent precedent (mii

(%) (%)
(%) (%) lei/persoan
ă)
2002 3729 81,00 - - 100 100 21,7
336
2003 4492 104,53 120,46 129,05 120,46 129,05 23,3
2004 5203 123,67 115,83 118,31 139,53 152,68 23,8
2005 6585 141,48 126,56 114,40 176,59 174,67 21,5
2006 8152 194,83 123,80 137,71 218,61 240,54 23,9
2007 9261 255,33 113,60 131,05 248,35 315,22 27,6
2008 11154 320,14 120,44 125,38 299,12 395,23 28,7
Total 48576 1220,986 120,03 125,74 - - 25,1
Şi în acest caz, atât numărul de Din interpretarea datelor şi în această

personal cât şi cifra de afaceri au crescut din situaţie atât numărul de personal cât şi cifra
anul 2002 până în anul 2008. Comparând cele de afaceri au cresut în mod sistematic pe
două şiruri de indici cu bază în lanţ, se întreaga perioadă înregistrând indici de
constată că, exceptând anul 2005, în toţi dinamică cu bază în lanţ şi cu bază fixă cu
ceilalţi ani dinamica cifrei de afaceri o valorile cele mai mari. S-ar putea spune că
devansează pe cea a numărului de personal, cele două şiruri de indici evidenţiază o
diferenţa între indicii perechi fiind, însă, mai creştere de tip exponenţial cu o rată mai
mică. În consecinţă, estimând productivitatea ridicată decât în celelalte două activităţi. Din
pe baza raportului dintre cifra de afaceri şi cauza gradului de asociere ridicat între cele
numărul de personal constatăm că şi în acest două variabile, eficienţa calculată ca raport
caz aceasta a crescut de la 21,7 mii între cifra de afaceri şi numărul de personal
lei/persoană la 28,7 mii lei/persoană, prezintă două tendinţe şi anume:
respectiv de 1,32 ori. - în primii cinci ani se apropie de
În Tabelul 3 sunt prezentate datele eficienţa din Învăţământ;
referitoare la activitatea de Sănătate şi - în ultimii ani se apropie de
asistenţă socială. eficienţa din Hoteluri şi
restaurante.

în România, pentru activitatea Sănătate şi asistenţă socială
Anul Număr de Cifra de Dinamica Dinamica Dinamica Raport
Dinamica
personal afaceri numărului numărului cifrei de între cifra
cifrei de
(mil. lei de personal de personal afaceri faţă de afaceri
afaceri faţă
preţuri faţă de anul faţă de anul de anul şi număr de
de anul
constante) precedent 2002 2002 personal
precedent
(%) (mii
(%) (%) (%)
lei/persoan
337
ă)
2002 13242 314 - - 100 100 23,7
2003 16919 391,9861 127,77 124,84 127,77 124,84 23,2
2004 21350 522,7618 126,19 133,36 161,23 166,48 24,5
2005 26343 697,1154 123,39 133,35 198,94 222,01 26,5
2006 31295 871,3588 118,80 124,99 236,33 277,50 27,8
2007 35258 1167,123 112,66 133,94 266,26 371,70 33,1
2008 40519 1568,907 114,92 134,43 305,99 499,65 38,7
Total 184926 5533,252 120,49 130,75 - - 29,9
Pe baza acestor date parţiale şi luând în considerare şi datele publicate cu privire la total
servicii şi la valorile PIB, am calculat în tabelele 4 şi 5 ponderile corespunzătoare.
Tabelul 4. Ponderea cifrei de afaceri din Hoteluri şi restaurante, Învăţământ şi
Sănătate şi asistenţă socială în cifra de afaceri pe total servicii
Cifra de afaceri pe Hoteluri şi Învăţământ Sănătate şi Ponderea
total servicii restaurante asistenţă socială celor trei

Anul
(mil.lei) activităţi
absolut % absolut % absolut % (%)
2002 5394,7 2670 49,49 81 1,50 314 5,82 56,82
2003 6858,8 3392 49,45 120 1,75 450 6,56 57,77
2004 9674 4437 45,87 163 1,68 689 7,12 54,67
2005 11618 5572 47,96 206 1,77 1015 8,74 58,47
2006 15527 7331 47,21 307 1,98 1373 8,84 58,03
2007 19082 8921 46,75 429 2,25 1961 10,28 59,28
2008 25151 11213 44,58 584 2,32 2862 11,38 58,28
Tabelul 4 cuprinde datele necesare Din tabel constatăm că cele trei

calculului ponderii cifrei de afaceri pe cele activităţi au ponderi extrem de variate şi
trei activităţi în total servicii. anume:
338
- la Hoteluri şi restaurante ponderea Evident că nu putem să analizăm

variază între 44,58% în anul 2008 şi 49,49% numai ponderea cifrei de afaceri a celor trei
în anul 2002 înregistrându-se o tendinţă de activităţi faţă de cifra de afaceri a tuturor
scădere în perioada analizată; serviciilor, ci şi locul pe care-l ocupă cele trei
- la Învăţământ, ponderea cifrei de activităţi în valoarea PIB ( vezi Tabelul 5).
afaceri este foarte mică oscilând între 1,5% în Calculând ponderea cifrei de afaceri
anul 2002 şi 2,32% în anul 2008, din cele trei activităţi în valoare PIB,
înregistrându-se o tendinţă de creştere; constatăm un aspect negativ şi anume, faptul
- La Sănătate şi asistenţă socială, că cele trei activităţi au ponderi foarte mici.
ponderea cifrei de afaceri este cuprinsă între Astfel, la Hoteluri şi restaurante, ponderea
5,82% în anul 2002 şi 11,38% în anul 2008, cifrei de afaceri în PIB variază între 1,72% în
ceea ce înseamnă o dublare a ponderii. anul 2003 şi 2,18% în anul 2008, la
Sintetizând cele trei activităţi, am Învăţământ ponderea cifrei de afaceri în PIB
calculat şi ponderea cifrei lor de afaceri în se situează sub 1%, mai precis între 0,05% în
cifra de afaceri pe total servicii. Cum era de anul 2002 şi 0,11% în anul 2008. Situaţia este
aşteptat, datorită ponderii ridicate a cifrei de asemănătoare şi la Sănătate şi asistenţă
afaceri din Hoteluri şi restaurante, pe socială, cu valori uşor mai ridicate
ansamblu, ponderea cifrei de afaceri a celor comparativ cu Învăţământul, dar aceste
trei activităţi oscilează între 54,67% în anul ponderi se situează tot sub 1%.
2004 şi 59,28% în anul 2007.
Tabelul 5. Ponderea cifrei de afaceri din Hoteluri şi restaurante, Învăţământ şi

Sănătate şi asistenţă socială în PIB
Anul PIB Cifra de afaceri Ponderea celor
trei activităţi în
(mil. lei) Hoteluri şi Învăţământ Sănătate şi
PIB (%)
restaurante asistenţă socială
absolut % absolut % absolut %
2002 151475,1 2670 1,76 81 0,05 314 0,21 2,02
2003 197427,6 3392 1,72 120 0,06 450 0,23 2,01
2004 247368 4437 1,79 163 0,07 689 0,28 2,14
2005 288954,6 5572 1,93 206 0,07 1015 0,35 2,35
2006 344650,6 7331 2,13 307 0,09 1373 0,40 2,61
2007 416006,8 8921 2,14 429 0,10 1961 0,47 2,72
2008 514654 11213 2,18 584 0,11 2862 0,56 2,85
Ţinând seama de repertiţia ponderilor De aici rezultă că cele trei activităţi

pe cele trei activităţi, ponderea cumulată a lor trebuie să se desfăşoare în anii următori pe
nu depăşeşte 2,85% (ponderea maximă) în baza unor planuri de dezvoltare intensivă care
anul 2008. să permită creşterea ponderii cifrei de afaceri
atât pe fiecare activitate cât şi pe total.
339
______________________________________________
LAW AND PUBLIC ADMINISTRATION /

DREPT ŞI ADMINISTRAŢIE PUBLICĂ
LEGAL ASPECTS CONCERNING FINANCIAL INSTRUMENTS – GROUND OF THE

INTERNATIONAL ACCOUNTING

Christian University Dimitrie Cantemir
Bucharest, Romania
baciu_iacob@yahoo.com
Abstract: The definition provided in the standards for the financial instruments contains as key-elements the notions of
financial assets and debts.
A first classification of the financial instruments consists in their grouping in financial assets and debts. These terms
are widely used both in the financial literature and in the accounting one..
The general framework for the drawing up and submittance of the financial statements defines debts as present
obligations of an entity resulting from past events and by the settlement of which is expected to result an output of
resources which incorporate economic benefits. The financial instruments are very much used at present, for
speculative purposes, for covering and arbitration, their markets offering investors information about the present and
future economic tendencies, their use having both advantages and disadvantages.
Keywords: financial instruments, assets, debts, options, IAS/IFRS;
JEL Classification: K29, M49
1. Financial Assets and Debts exchange of fixed amounts in cash, or

other financial assets, for a fixed
The financial assets are considered rights on number of instruments of owner’s
real assets. Their value does not result from equity of the company. For this
the physical form, but from the contractual reason, the instruments of owner’s
relations, they facilitate the transfer of funds equity of the entity do not include
between the holders thereof and those in those which are settled by physical
search of them. They are financial assets only delivery.
to the extent in which they reflect the entity’s IAS 32 offer some examples of assets which
right to receive cash or other financial assets satisfy the above definition : cash and
from a third party. deposits held with banks, short-term
The accounting meaning of the term is commercial receivables, commercial bills to
illustrated by the definition contained in IAS be collected, loans and bonds to be collected,
32, that appreciates what the financial assets instruments of perpetual debts held .
are : The assets that are not of contractual nature,
- treasury elements ; the receivables coming from the corporation
- contractual rights ; tax, are not considered financial assets in the
a. to receive from another company sense given by the international accounting
available funds or another financial standards to this term.
assets ; The approach of the financial assets from the
b. to exchange financial instruments with accounting point of view, proposed by the
another company, in potentially international norms, contains certain
favourable conditions ; differences against the financial approach.
- instruments of owner’s equity of The standards IAS32 extend the sphere of this
another company ; notion over all the short-term commercial
- the contracts that are settled or may be receivables, the contractual rights to collect
settled by instruments of owner’s cash or other financial assets from the
equity of the company and that are business partners, or restrict by excluding
underived, for which the entity is or some financial assets of the type of the
may be obliged to receive a variable derivates on goods regularized by physical
amount of instruments of owner’s delivery, because their settlement does not
equity or derived ones which are or suppose the transfer of cash or other financial
can be settled otherwise than by the assets.
342
In the balance sheet of a trade company we - to exchange financial instruments

find the financial assets included both under with another company under the
fixed assets, financial fixed assets and under conditions in which they are
the current assets, available funds, receivables potentially unfavourable
and short-term investments. Within the  contract that is settled or can be
financial fixed assets, they will take the shape settled by instruments of owner’s
of other fixed securities, bonds or other titles equity of the company and that is :
held for a period exceeding one year, or of the -underived, for which the entity
fixed receivables coming mainly from the is or may be obliged to deliver a
loans granted to other entities. varaible amount of instruments of
The short-term receivables considered owner’s equity
financial instruments are the commercial -derived, that is or can be settled
ones, but also those based on credit-financing otherwise than by exchange of fixed
operations, such as the receivables coming amounts of cash, or other financial
from settlements within the group and with assets for a fixed amount of
associates, as well as other receivables. instruments of owner’s equity and
The financial assets of the type of short- does not include those which are
term investments and available funds are settled by physical delivery
considered, in accounting, treasury Such debts are: short-term commercial
instruments. The temporary investments debts, commercial papers to be paid, loans
fulfill the following criteria: and bonds to be paid. However, the advance
1. their due date is short-term and they income and the majority of guarantee debts
are extremely liquid ; are not financial debts because the economic
2. they are easily converted into known benefits which go out of the company by the
amounts of cash; settlement thereof take the shape of goods
3. the value loss in case they are and services and not of cash or other financial
converted in cash before the due date assets ; to the category of financial debts
must be known and be minimum. belong only the long-term ones, because they
From another perspective, the financial do not result from trade operations but
assets are included in the category of the represent sources for financing the
intangible assets, in contrast with the tangible investments. Financial debts are not only the
ones. long-term loans, but also the short-term bank
The general framework for the drawing up credits.
and submittance of the financial statements The weight of the financial assets in the
defines debts as present obligations of an total amount of a company’s assets differ
entity resulting from past events and by the from one company to another, being
settlement of which is expected to result an important in case of the commercial
output of resources which incorporate companies due to the various elements
economic benefits. considered financial assets from the
The financial debts are considered the perspective of IAS/IFRS but it is more
counter-party of financial assets. They are significant with the financial institutions.
created by the issuer of a financial asset and
consist in the fulfilment of the obligations 2. The Classification of the Financial
connected with the issued asset. They are Assets and Debts from the Point of View of
financial debts only to the extent in which Accounting
they reflect the entity’s obligation to pay an
amount in cash or in other financial assets to a The Romanian accounting laws provide the
third party. classification of the assets held by an entity
IAS 32 consider that a financial debt is any: according to the nature, manner of use, and
 contractual obligation : liquidity, in :
- to pay cash or another financial  fixed assets used for periods
asset to another company exceeding one year: intangible,
343
tangible and financial fixed option of the fair value also other financial
assets ; assets.
 current assets, held for shorter Included into a second category, the
periods than one year: stocks, investments kept until the due date are those
receivables, short-term financial financial assets with fixed or determinable
investments, available funds payments and with fixed due date, which the
Regarding the debts, the domestc company has the express intention and
accounting regulations have inspired capacity to preserve up to the due date, others
themselves from the international standards, than the receivables and loans issued by the
operating with a classification into: company.
 current debts that are paid in a shorter A company has no declared intention to
period than a year; keep an investment up to the due date if :
 long-term debts ;  it intends to keep the investment
The financial assets are found both within the for an undefined period,
fixed assets and among the current assets, a respectively it hasn’t fixed a due
part of the receivables, of the short-term date ;
financial investments and of the available  it is ready to sell the investment,
funds. The financial debts are included both as a reply to the change of the
in the current assets, commercial debts, and in interest rate, at the high degree of
the long-term debts, bond loans and long- risk or because of the need of
term bank credits. liquidity ;
The financial instruments can be  the issuer is entitled to achieve the
classified, according to the purpose of their financial asset at a value that is
holding, in several categories which detail the much below the depreciated cost;
traditional classification of the financial assets .
into financial fixed assets and current assets. In the Romanian accounting practice, this
This classification aims at using some group of financial assets finds its equivalent
different subsequent assessment bases, within some assets from among the
associated with each category. financial fixed assets of the second class,
The financial assets assessed at their fair accounts of fixed assets, and of the short-
value with loss/profit acknowledged in the term investments of the 5-th class, treasury
profit/loss account are divided into two accounts. The credit institutions consider
categories : the investment titles designated by means of
1. financial assets held for transactions ; the account 304 ‘ financial titles’ as assets
2. instruments designed from the preserved up to the due date.
beginning in this category, by the The third category of instruments, the
option of the fair value; loans and receivables, are financial assets
The financial instruments belonging to the created as a result of the direct supply of
first sub-category are acquired or produced money, goods or services to a debtor, others
with a view to generate profit, as a result of than those which are initiated with a view to
the short-term price fluctuations or of the being sold immediately or in a short time,
margin retained by the dealer. The derived which should be classified in the first
financial assets and debts are considered to be category.
kept for transaction if they are not instruments The previous definition does not make the
of risk covering. Making a correction with the difference between the loans that take the
Romanian accounting practice, we can shape of titles, the bonds or loan titles
include in this category the short-term issued by the state and those which do not
financial investments provided in the 5-th take this shape.
class of accounts –Treasury The instruments of owner’s equity cannot be
Accounts. Besides the assets, the debts held included in this category by the holders
for transactions, there may be assessed at the thereof unless the issuer registers them as
fair value by designation according to the debts.
344
The instruments mentioned in this class The classification of the financial instruments
are defined as not derived financial assets according to the above-mentioned categories
that generate fixed or determinable is not an easy task for the accounting
payments and that are not quoted on an professional who must use his professional
active market, in case of the instruments reason in order to make an adequate
listed on the stock exchange market, they classification. For this purpose it is necessary
must be classified in one of the other three to analyse a complex of factors and
categories. Those assets are excluded, for circumstances which should lead to the
which the holders cannot recover the initial conclusion that the asset, the financial debt
investment because of some events, others satisfies the definition of a certain type of
than those connected with the deterioration instruments, but also the forecast of the
of the credit qualification granted by the consequences of a certain classification.
rating agencies. The examples of
instruments classified in this category 3. Primary, Derived and Synthetic
includ : the commercial receivables, the Financial Instruments
investments in debt instruments, the bank
deposits. Another classification of the financial
In case of the credit institutions, the instruments consist in the delimitation thereof
receivables and loans represent the most in :
significant component of the balance sheet - primary instruments, also called “basic”,
and contain: the credits granted to other such as: receivable securities,
other credit institutions, the amounts to be acknowledgements of debt, debt securities or
recovered, the credits granted to the clients, owner’s equities ;
the credits granted to financial institutions, - derived instruments, namely titles of risk
various debtors, the subordinate credits, the transfer between the two parties, based on the
attached receivables, the outstanding and exchange of a financial instrument (forward
doubtful receivables or the receivables contracts, futures contracts, option contracts,
against the shareholders or partners to the swap contracts) ;
extent in which they are settled in cash or - synthetic instruments, appeared as a result
by another financial asset. of the combination of some financial assets
The financial debts are classified in two with a view to creating new instruments.
categories :
 debts evaluated at the fair value 4. The Primary Financial Instruments are
with loss/profit acknowledged in those whose values are determined directly by
the account of results and there are means of the market and do not derive from
included : that of another instrument. In this category are
- derivates that are not included the available funds, the commercial
covering instruments ; and financial receivables/debts, the trade bills,
- the obligation to deliver debt securities and instruments of owner’s
other financial assets equity.
borrowed by a seller short ; a) The available funds that are in the the cash
- financial debts for which box or in the bank accounts are the most
there exists the intention of liquide financial instruments because they can
their immediate be used immediately in transactions to make
redemption; payments in order to obtain goods/services or
- financial debts belonging to pay off debts. They are assets without risk,
to a portfolio of financial therefore they are preferred by the economic
instruments for which agents ;
there exists the evidence of b) The receivables and debts result from an
a recent action of obtaining entity’s relations with juridical/natural
short-term profit ; persons outside it or natural persons within it.
 other financial debts ; The receivables represent an entity’s rights to
345
collect a certain amount of money or to interest in a company’s assets after the

receive goods/services. Within this category deduction of all its debts.
there can be distinguished : The main instruments of owner’s equity are
- financial receivables/debts, linked with the shares. The shares give the holder thereof,
participations, granted/received loans , called shareholder, the right of property over
granted/received guarantees ; a part of the registered capital of the issuing
- commercial receivables/debts, generated by entity, besides the right of property, the
supplies/deliveries of goods and services or holder has also other advantages : a net
by received/granted advance payments. income in form of dividends, the participation
c) Commercial papers, also called the traders’ in the managemt of the company and in the
currency, represent commercial credit issue of new shares, the right to vote in the
instruments that guarantee the subsequent general meeting of shareholders, the right to
payment/colelction of the obligations/rights consult the company documents, the right to
resulting from trade relations. With their help, the distribution of the entity’s assets in case
the debtor pays off his money obligations of its liquidation.
towards his creditor, at a certain due date.
The main commercial papers are : 5. Derived Financial Instruments, these
- The bill of exchange is a document created instruments are called derived because the
by the drawer, as creditor, by which he gives manner in which their price behaves derives
an order to one of his debtors, called drawee, from the manner in which the price of the
to pay a certain amount of money, at a future basic asset evolves.
date, to a third person called beneficiary. The The use thereof has become frecquent further
drawee is a juridical/natural person who has a to the cessation of the Bretton Woods
debt towards the drawer, debt which he Agreement, concluded in 1944 with a view to
doesn’t pay directly to him, but to a third maintaining the stability of the interest rates
person, the beneficiary ; and of the currency exchange rates, period in
- The promissory note is a credit and which a generalised situation of instability on
payment bill containing the commitment of a the financial and global goods markets could
person called issuer, to pay a determined be noticed.
amount, at the date and in the place The purpose of the derived financial
mentioned in the bill, to another person called instruments is to offer protection against the
beneficiary.In Romania the promissory note, adverse movements of prices, exchange rates
as well as the bill of exchange, is legally and interest rates.
regulated by the Law No. 58 from 1934, that The price of a derivative (P) is depending on
keeps its validity and is in accordance with the price/rate of the basic asset (Pa) and on
the law principles in this matter, in the world time (t) :
trade. P = f ( Pa , t )
- The check is an instrument created by the In other words, the derived instruments are
drawer on the basis of an available fund, transactions performed in two moments of
previously created with a bank institution, the time, the moments (time) of the transaction
drawer issues the check, the drawee pays it are the conclusion of the contract and its
(the bank), and the beneficiary collects it. settlement.
d) The debt securities, also known under the IAS 32 and IAS 39 dedicate an important part
name of credit titles, are documents attesting to the problem of the financial instruments
the amounts borrowed by the issuer and which they not only define in general, but
which oblige him to reimburse them at certain also mention the main types of financial
due dates, with a specified, generally fixed derived instruments : the forward contracts,
interest. To this category belong the the futures contracts, the options and swap
debentures. contracts and some basic characteristics
e) The instruments of owner’s equities are thereof.
contracts certifying the existence of a residual The forward contract is the simplest derived
instrument of risk protection and represents a
346
commitment to buy or sell an asset at a striking price, and during or at the end of a
certain price and for an established future definite period of time. While the buyer can
date, it is a not standardized contract, that is exert or not his right to sell or buy the asset,
concluded outside the market regulated by the seller remains tributary to the decision of
direct negotiation. the former.
Within such a contract, one of the involved Unlike the forward and futures contracts, in
party agrees to buy the basic asset at a which the two involved parties are in
mentioned future date, for a certain price, the positions of equality, having the same rights
other party selling the said asset at the same and obligations, the seller of an option is
date and for the same price, called delivery situated in an inferior position in relation to
price. The forward contract does not suppose that of the buyer.
any real or monetary flow at the moment of There are two distinct types of option
its conclusion or during its validity period, but contracts : call si put.
only at the due date. In case of calll options, the seller covers
The two parties involved in the transaction of himself against the risk of value decrease of
a forward contract are subject to some risks the held assets, the risk covering being limited
such as : the risk that the price of the basic to the value of the premium, and the buyer
asset should evolve in an unfavourable covers himself against the risk of price
direction, situation in which the companies increase of the unlimited basic asset.
cannot negotiate the terms of the contract In case of put options, the seller covers
because the latter is irrevocable and there is himself against the risk of increase of the
the risk of insolvency (bankruptcy) of the exchange rate, the covering being limited to
contractual partner. the premium level, and the buyer covers
The futures contract is a complex form of himself against the risk of the price decrease
the forward contract. of the unlimited basic asset.
This contract creates to one party the The standard IAS 32 refers to options and
obligation to sell or to buy a certain provides that the right of the option holder to
standardized asset that is concluded within the exchange assets in potentially favourable
regulated market – the stock exchange or the conditions, as well as the issuer’s obligation
commodity exchange. Unlike the price to exchange assets in potentially unfavourable
established in the forward contract, which is conditions are different as compared to the
irrevocable, the price in the futures contract is basic assets which are going to be exchanged
variable. The profit or loss determined by the on exercising the option.
futures contracts are given by the difference The swap contracts are derived financial
between the transaction spot price and the instruments by which an investor exchanges a
price of the previous day. debt/receivable with certain characteristics for
These financial instruments are very much another one, with different characteristics.
used at present, for speculative purposes, for The purpose for which such a transaction is
covering and arbitration, their markets made consists in obtaining mutual advantages
offering investors information about the by the participants, who aim at the access on
present and future economic tendencies, their the capital or financial markets, which
use having both advantages and normally are not accessible to them.
disadvantages. The most important and used types of swap
The options appeared both on the organized are : on the interest rate, on shares, on
markets and on the free markets at the securities and currency.
beginning of the ’80s.
The option represents a contract between two 7. The Synthetic Financial
parties (seller and buyer) in which the buyer Instruments appeared as a result of
obtains, in exchange for an amount of money combining different assets with a view to
called premium, the right, but not also the obtaining new products for the placement of
obligation, to buy/sell a determined quantity the available funds. The best known are the
of an asset, at an established price, called instruments of basket type, that are based on
347
carefully selected primary financial titles,

with a view to creating some standardized
stock exchange products. To this category of
contracts belong the contracts on stock
exchange indexes, whose role is to disperse
the risks over an as large as possible number
of marketable securities contained in the
basket.
Conclusion
As a conclusion we point out the fact that the

approach of the financial instruments from the
point of view of accounting, proposed by the
international norms contains certain
differences against the approach from the
financial point of view. The approach from
the point of view of accounting is thightly
linked with the management accounting, with
the yearly financial statements and with the
users’ need for financial-accounting
information.
Bibliography:
[1] Boaja M., Lepadatu Gh., International Financial

Reporting Standards (IFRS) – Fundamental
Notions, Cermaprint Publishing House, Bucharest,
2006
[2] Belverd E., Needis,jr.and colab., Basic
Accounting Principles , 5-th edition, ARC
Publishing House, Bucharest, 2001
[3] Feleaga (Malciu) L., Feleaga N., Financial
Accounting – An European and International
Approach, vol. I andi II,. InfoMega Publishing
House, Bucharest, 2005
[4] Lepadatu Gh. and colab., Accounting Law,
Tribuna Economica Publishing House, Bucharest,
1998
[5] Pantea I.P., Bodea Gh., Romanian Financial
Accounting according to the European Guidelines,
Intelcredo Publishing House, Deva, 2005
[6] Law no. 82/1991 – Accounting Law with up to
date modifications
[7] Law no. 31/1990 – Law of the Trade Companies
with up to date modifications
[8] Ordinance of the Minister of Public Finances
O.M.F.P. no. 3055/2009 for the approval of the
accounting regulations according to the European
guidelines;
[9] International Financial Reporting Standards
(IFRS),. CECCAR Publishing House,, 2007
[10] Wiley IFRS – 2007, Construction and
Enforcement of the International Accounting and
Financial Reporting Standards, BMT Publishing
House, Bucharest , 2007.
348
LEGAL CONSIDERATIONS CONCERNING CORRUPTION AND TAX EVASION IN

ROMANIA

Christian University Dimitrie Cantemir
Bucharest, Romania
baciu_iacob@yahoo.com
Abstract: Tax evasion has become a ubiquitous phenomenon in economic and social. Extent it has taken a tax evasion
is worrying because the lack of control measures may close in the future stability of national economy. To combat tax
evasion is not necessary to impose some severe penalties, but should be made an effective fiscal control, a viable legal
system.
Keywords: evasion, fraud, corruption
JEL Classification: K29, M49
1. Preventing and combating tax public the list of contributors (except micro-
evasion in Romania companies), who recorded outstanding
obligations owed to one or another of public
For the prevention and combating tax evasion budgets, accounting for taxes, contributions
in Romania will act all measures that are and other revenues. This list and the
prescribed in regulations came into force. The information it contains is made aware of the
first step, in this purpose, is the organization public on its Internet page of each of the
of the fiscal record, as a means to record and institutions and public authorities responsible
track the financial discipline and to strengthen for implementation of respective budgets.
administration of taxes owed. Fiscal record is Updating outstanding debtors and their
held by the Ministry of Public Finance at the obligations is made quarterly. Publication of
central level and the general public finance this list has become a practice. New details of
departments of counties and Bucharest, the scope of tax evasion made by Law.
electronic forms. In the fiscal record are listed 161/2003 - which amends the Law. 87/1994
individuals and legal entities and associates, on combating tax evasion - in that it includes
shareholders and legal representatives of legal waiving the payment of taxes, contributions
entities, which are actively works, sanctioned and other amounts owed to the state, thus
by financial laws, customs, and those relating having the same connotation as to circumvent
to financial discipline. These penalties may be the tax taxable matter, we believe that will
included in fiscal record if they have become impact positive to combat tax evasion
final and irrevocable. The certificate of fiscal (publication of the list of taxpayers with
record is mandatory to be presented in the outstanding obligations with those who evade
following cases: the tax, prompting some debtor to pay the
8. the establishment by parent company, arrears before the list is made public).
shareholders and legal representatives The Law nr. 161/2003 - which amends the
appointed Law nr. 87/1994 on combating tax evasion -
9. the establishment of associations and includes favourable conditions in this respect.
foundations by their founding It provides for taxpayers who receive income
members from trading activities or provide services to
10. the authorization to exercise the population that are required to show
independent by applicants. where work, operating authorization and
certificate of registration. Is important and
Since 2003 were established a number of necessary point that taxpayers are required to
very important measures that will impact use only primary documents and work
favorably towards firm combating tax accountancy established by law, to be
evasion phenomenon. On this line, is made purchased only from the units established by
legal rules. At the same time are more clearly incorporation of companies and other
defined and delineated acts and deeds that businesses, seeking the correct and complete
constitute crimes, making the presentation and timely fulfillment of all financial and tax
according to gravity and severity of sanctions obligations to the state;
that apply. • control and also perform other duties
established by law in charge of the Ministry
2. Competent bodies in combating tax of Finance.
evasion
Are also covered the Financial Guard duties:
Lack of a well organized control and properly • implementation and enforcement of tax laws
skilled staff can lead to large-scale forms of and customs regulations, aiming to prevent
tax evasion. For the organization and any embezzlements or evasion of payment of
functioning of financial control and the taxes
Financial Guard, on 22 March 1991 was • trade compliance, seeking to prevent
adopted the Law No. 30, published in Official smuggling activities and any procedures
Gazette nr. 64 of 27 March 1991. In banned by law
accordance with Article. 1 of Law 30/1991, • verify the existence and authenticity of
Ministry of Finance, on behalf of the state, documents during transport, as well as places
made control and managing of the specialized of production activities, services, acts and
funds of central and local state administration deeds of trade, when there is evidence of
and state institutions and monitor compliance evasion of tax obligations or of establishing
with financial accounting regulations in the procedures prohibited by law
work of by autonomous, companies and other • verify the records or any other documents
operators in connection with fulfilling their resulting tax obligations
obligations to the state. The second paragraph • to find violations and apply appropriate
of that article states that the specialized unit sanctions
of the Ministry of Finance acting for the • to bring prosecution in connection with the
prevention and combating fraud, violations crime found in the exercise of duties.
and offenses to the taxation, customs and
prices and taking measures under the law. In Following the findings of financial control,
Article 4 states that financial control of the Ministry of Finance is entitled in accordance
state is organized and operated in the with the provisions of Article. 7 of Law No.
Ministry of Finance and is performed by 30/1991 should:
General Directorate of State Financial  take measures to eliminate and prevent
Control and Financial Guard. irregularities in business accounts of
central and local administrations,
By law, the powers conferred to the General autonomous and
Directorate of State Financial Control and its  correcting and expanding the balance
subordinate units are: sheets and paying the taxes and other
• control the management and use of funds budget revenues legally owed the state
provided from the budget for running costs  application for law enforcement
and maintenance of central and local measures in prices and tariffs
government and financed by the budget units,  suspension of measures contrary to
• monitor the use of funds for state investment financial regulations and accounting.
interest, activities and products and subsidies
for other purposes provided by law; Failure, unperforming the provisions within
• check the use of endowment funds and the document control data entered into the
funds and accounts in compliance financial-fiscal body is, according to the Law
autonomous activity and state-owned System. 87/1994, offense and punishable as
companies; such. Tax evasion has become a ubiquitous
• verify the accuracy and reality of entries in phenomenon in economic and social. Extent it
records required by law and the provisions of has taken a tax evasion is worrying because
350
the lack of control measures may close in the  completing the legislative framework
future stability of national economy. The for control of resident associations and
economic situation of balanced state budget joint owners by local councils;
would lead to macroeconomic balance and  mandatory implementation of the
ensuring economic development conditions. acceptance of debit-credit card
To combat tax evasion is not necessary to businesses with a business volume
impose some severe penalties, but should be over a certain level and population ;
made an effective fiscal control, a viable legal  establish a well organized system of
system may first fiscal education of citizens. principles for tax record for better
Tax laws should be simple, clear, accurate management of the prevention and
and relatively stable, to make a distinction combating tax evasion.
between cases where laws are violated
intentionally violated when fraud or As measures to prevent international tax
negligence, negligence, or causes beyond the evasion, Prof. Ph.D. Dan Saguna proposes
control of the taxpayer. It is necessary to the following measures ”tax heaven”[1]:
reorganize and control the tax checks, to be  exchange control
developed by The National Bank of Romania  steps towards citizenship taxpayer
clear rules on the conditions to be met and  taxation even the income
documents to be submitted by individuals.
 taxation of gains from foreign made
Our country had one of the best tax procedure
not by Legal way
code, which was repealed by the dictatorial
 using theory of law abuse
regime established after the Second World
 the refusal to allow access to the
War. As measures already initiated or being
courts of foreign organizations deemed
implemented, with direct impact on
suspicious.
preventing and reducing tax evasion can be:
 strengthening the tax system by
Finally, we can say that without a detailed
harmonizing the tax return with the
and systematic analysis of internal
requirements of Directives of the
mechanisms with the international tax
European Union, promoting measures
evasion is difficult to trigger tools and
for its gradual decline (in particular If
measures conducive to combating and
direct tax), to stimulate the transfer of
preventing tax evasion.
activities of the informal economy
visible in the economy, implementing
3. Tax evasion and corruption
a simplified taxation system for small
businesses, eliminating the effects of
In a world confronted with complex issues,
inflation
the activities of corruption and of obtaining
 the strengthening and adaptation of money by illegal ways are more frequent.
economic accounting system by
History of human society reveals that crime
applying accounting rules harmonized and corruption in all forms of manifestation
with European Union directives and
(embezzlement, trafficking in influence,
International Accounting Standards
giving and taking bribes, tax evasion,
approved by Ministerial Order No.
receiving undue benefits) and drove there
94/2001, for commercial companies
with varying intensity of the oldest times.
and other publicly traded company European officials have converging views
representative to establish a simple
regarding accession of 10 new member states,
filing system for small and medium
due to alarming issue: corruption in these
enterprises;
country could be transferred to the
 elimination of firms in economic Community market. Corrupt judicial system,
losses, irrecoverable; which evolves slowly, worried European
 approval of the draft Law exemplary Union authorities because of the need to
management of commercial actually apply the directives and regulations
companies;
351
to be adopted rapidly. From the perspective - corruption is based on limited resources

of EU integration, tackling corruption is - has an operational process: support,
needed to materialize unequivocal facilitation, opportunity
commitment of the Romanian society as a - has a specific funding - to satisfy some need
whole, to take and fulfill membership criteria. - pursue profits.
Corruption has always been regarded as one An important part of the money illegally, and
of the most serious behavioral misconduct the bribes paid to them, return, being used in
that distorts the administration of public the underground economy and the rest are
affairs for private order. From a sociological recycling and money laundering, entering
perspective, corruption - as social pathology - into the real economy. Factors that has
concerns a group of immoral and illegal created and amplificated corruption are
activities conducted by individuals not only multiple. Of these, the institutional crisis in
functions or exercising a public role, but also most sectors, the crisis of authority and
by various groups and organizations (public credibility of the organs and institutions,
and private) to obtain material benefits or regulatory control and low tolerance for those
moral, or a higher social status, using forms who control manifested by attracting law
of coercion, blackmail, deception, bribery, enforcement officials in criminal acts of
buying, intimidation. In essence, corruption is corruption resulted manifestations of
an abuse of power in order to obtain material corruption in the following directions:
advantages or other benefits (honors, titles, Creation of company ”tick”, that thrive in
advertising exemption from liability, etc.). the near moribund state enterprises
Most times, it is only ”a trivial contract ” In this case fiscal dimension of corruption is
(illegal – that is right), acting under the localized in the registration of oversize
Roman law principle do ut des (I give you to charges (most times even unrealistic), thus
give me) negotiated and placed in narrowing the legal basis of taxation of
underground conditions and privacy. profits and hence related income tax due the
general consolidated budget. Profitable by
4. Conclusions outsourcing activities by companies from
interest groups, it fails these enterprises after
The corruption has much more varied forms, privatization are ”suddenly” extremely
some of them - like: favoritism, or profitable.
interference in the work of civil servants, that Trade and transactions entered into evidence
form the traditional ”intervention” - is - and used as the basis for recording financial
considered, if not daily acts, at least minor records and accounting - does not reflect an
deviations which can not be criminally actual state of affairs therefore covered by
sanctioned. Also included other Law No.. 241/2005 on preventing and
manifestations of corruption, widely combating tax evasion as a crime
practiced, arising from the influence of criminalizing evidence of fictitious
money in politics, more publicized, combined transactions.
with local power decentralization, rapid Fraudulent privatizations
urbanization and internationalization of Essentially, by means of fraudulent
economic relations. Corruption are identified privatizations parasitic capitalism was
with those acts which are committed in the encouraged at the expense of large
exercise of functions or duties of office, privatizations, which could lead to multiple
which is the violation of duties, following - in benefits for our country. Many of the
all cases - a profit. Evolution of the companies acquired are dismantled and sold
phenomenon, reflected in ancient law, shows for scrap, the staff is fired and the products
that bribery is an abuse of office in order to made by new investors fail to penetrate the
obtain material benefits, goods or other market. The purpose of these investors is not
benefits. only immediate profit.
Corruption can be considered an economic Robbing banks
activity based on the following assumptions:
352
There are interest groups - beneficiaries of Between tax evasion and corruption there is a
bad loans - which were identified in the parallel, the similarities and differences (both
banking sector favorite target of their with devastating effect on ”health” of a
criminal activity by providing preferential society as a whole).
loans, favorable terms, the client base. As the Key considerations stemming from this
banking sector has undergone a privatization analysis include:
process effective and efficient, the  tax evasion may be a unilateral act,
phenomenon of illegal or preferred-financing while corruption requires always at
shrank sharply. least two parties (usually the one party
Spoliation of the state budget by the is a public sector decision-maker )
tolerance by the public authority in unpaid  tax evasion does not, automatically,
tax liabilities owed by some companies and further recourse to corruption, while
illegal VAT refunds corruption acts and financing is
According to Law. 241/2005, VAT refunds secured, in particular, of pecuniary
have been expressly criminalized acts of tax resources evaded tax
evasion. This amounts fraudulently diverted  tax evasion occurs, mainly the
money from the state budget lead to underground sector of the economy
distortions and even undermine state (being part of it), while corruption
functions formal economy, contributing to found ”fertile ground” in area
”welfare” of public officials who have economy in the world of so-called
contributed to the smooth functioning of this ”white collars” (although this does not
mechanism crime. Size corruption tax exclude that the intention and the
imposed directly on the public financial forces that resort to corruption come
resources by returning (illegal!) Significant mainly from the economy
amounts of money from the consolidated underground);
general government accounts of private firms  while corruption is intended, often,
as a result of unrealistic sizing tax liability (in access to public resources for personal
case of VAT). gain increased (by corruption of
There are other manifestations of corruption, people who manage those resources),
among which may be mentioned: the tax evasion can be equated with an act
smuggling of excise goods, embezzlement of which would protect the “desires”
EU funds provided through the Phare realized against state (obviously, in
program type, with a grant, procurement substance, a phenomenon also illegal
rigging. in most cases)
 while evading the tax evasion from tax
In all cases above, the funds used in criminal a certain amount of personal gain,
transactions intended to create ”break through corruption is used to help public
in the system” and, in substance, to cause servants to get a win as more
weakness manifested in the smooth  avoidance can sometimes be only a
functioning of state institutions, which - in unilateral act, while corruption is
this context - can be locked and become always a bilateral or multilateral
inoperative. Prevention and eradication of measure
corruption requires measures of social,
 corruption always involves recourse to
economic, political, legal and administrative
tax evasion, while tax evasion is not
development to prevent and limit the extent
achieved with the use of corruption;
and severity of the phenomenon, identifying
Eliminating corruption is the primary element
and neutralizing the risk factors. If eradicate
in improving fiscal control as part of
corruption and organized crime is a financial
combating tax evasion. Along with
and economic utopia for the foreseeable
corruption, another factor which leads to
future to prevent this phenomenon to dictate
increased tax evasion is incompetence,
laws, values and politics of states and
between the two there is a directly
international bodies is a current requirement.
proportional relationship. Action taken
353
against corruption must create legal and

institutional prerequisites needed to control
the phenomenon. Introducing a
comprehensive legislative framework and
appropriate the communitary acquis (control
wealth of dignitaries and public officials,
regulatory incompatibilities with public
functions, significant legislative progress in
areas related to corruption - money
laundering, tax evasion, procurement, etc.),
creating the institutional framework for action
against corruption at the top, by reorganizing
the judiciary. The extent to which Romanian
society will be able to manage the further
dimension of corruption will depend on the
expected positive response from external
partners for the economy.
Endnotes:
[1] Şaguna D, Evaziunea fiscală pe înţelesul tuturor,

Editura Oscar Print, Bucureşti, 1995, pag. 83
Bibliography:
[1] Boulescu Mircea, Sistemul de control financiar-

fiscal şi de audit din România, Editura Economică,
Bucureşti, 2005
[2] Craiu Nicolae, Economia subterană între “Da” şi
“Nu”, Editura Economică, Bucureşti, 2004.
[3] Lăcriţa Nicolae Grigorie , Cazuri particulare de
paradisuri fiscale în “Impozite şi taxe” v. 11, nr. 6,
iunie 2005
[4] Lepădatu Gheorghe, Scenarii industriale şi
implicaţiile economico-financiare post-tranziţie în
România începutului de mileniu trei, Editura
Ştiinţifică F.M.R., Bucureşti, 1998.
[5] Moşteanu Tatiana, Buget şi trezorerie publică,
Editura Didactică şi Pedagogică, Bucureşti, 1997.
[6] Legi şi acte normative
[7] Constituţia României publicată în Monitorul
Oficial al României nr. 767 Partea I anul 171 (XV)
– 31.10.2003.
[8] Legea nr. 500/11.07.2002 privind finanţele
publice, publicată în Monitorul Oficial nr.
597/13.08.2002.
[9] Legea nr. 571/2003 privind Codul Fiscal, publicată
în Monitorul Oficial nr. 927/23.12.2003.
[10] Legea nr. 241/2005 privind prevenirea şi
combaterea evaziunii fiscale, publicată în
Monitorul Oficial nr. 672/27.07.2005.
[11] www.mfinante.ro
[12] www.mie.ro
[13] www.bnro.com
[14] www.fmi.ro
[15] www.banknews.ro
354
TERMS CONCERNING LEASING IN NATIONAL AND INTERNATIONAL JUDICIAL

LITERATURE

barna_av@yahoo.com
Abstract: The origin of the term leasing is Anglo-Saxon. It can have different interpretations, because of the variations
in meaning. Most often i tis admitted that leasing refers to any kind of agreement by which the possession of a good is
transferred to another party in the situation in which the one that gives shows interest in the given good. In specialised
literature, Romanian and foreign, we find a large number of approaches to this regard, each of theseincluding various
conceptual nuances. In the real economy leasing emerged and developed along with the modification of the classified
list and the increase in value of machinery and equipment that makes up the object of international trades. The rapid
obsolescence, the great volume of investments required by certain equipments such as: the computing ones, the means
of transport, the measurement equipment, in ongoing processes of modernization, led to the emergence of leasing
companies. In the present work we are trying, synthetically, to show the most important aspects from the point of view
suggested by the topic chosen for the debate.
Keywords: Lease, legislation, rental agreement, concession, investor, lessor, lessee.
JEL Codes: K12; K33.
1. Introduction In Romani the term was adopted as

neologism and it is applicable only to new
In specialized literature the term of transactions, different from the already settled
leasing has various meanings. In U.S.A., the legal institutions.
term “lease” referred, in the beginning, a
rental agreement for certain immovable 2. The approach to leasing mechanisms in
property. Later in time we find an extension terms of legal and economic sciences
of its incidence that also regards movable
property[1]. Leasing is a specific financing
Gradually, the mechanism that the operation, characterized by a series of
“lease” supposes was also adopted by the particularities, which appears to be a
legislation of other coutries, with the consequence of the international trade
exception that we will, obviously, find dynamics, with the need to be regarded from
different terminology. both economic and legal points of view.
Thus, in France it is used the term The UNIDROIT Convention[5] on
crédit-bail, for a long term lease operation of international financial leasing in article 1
a good, lease which guarantees a loan to be paragraph 1 (a) defines this transaction as
repaid by profits obtained from using the follows “those transactions in which one of
good. The French term crédit - bail is the parties (the lessor)“:
translated leasing agreement[2], which A. on the specifications of another
designates o long term lease operation of an party (the lessee), enters into an agreement
asset regarded as a loan operation. The French (the supply agreement) with a third party (the
legal literature stated that the term lease is supplier) under which the lessor acquires
“deceitful”[3], because the word rent also plant, capital goods or other equipment (the
designates a lease, or the leasing agreement equipment) on terms approved by the lessee
and the renting agreement are not similar, so far as they concern its interests, and
neither of these two agreements is a credit B. enters into an agreement (the
lease transaction[4]. leasing agreement) with the lessee, granting
In Germany and Sweden it is used in to the lessee the right to use the equipment in
addition to the term leasing the term return for the payment of rentals”.
konsumguterleasing in terms of lease The Dictionnary of international
agreement of goods for consumption. business law[6] offers us the most exact and
complete explanation on leasing. Leasing is so that, at least in part, to take account of

“a complex operation used in international payments made by way of rent.
trade which, by its specificity, appears to be a The professor T.R. Popescu notices, in
modern technique of long term credit, for these transactions, that “the lessee initiates the
specific purposes. A triangular legal operation business, the supplier allows it, the lender
by which a person (normally, a company facilitates it and all acting together for
specialized in this field) purchases an asset in themselves, act at the same time to the benefit
order to later lease it to another person called of the other”[9]. Leasing represents the
lessee, who at the end of the lesing agreement purchasing from the suppliers by a specialized
is able to exercise one of three possibilities, company (lessor, leasing company) of some
which are: to continue the legal leasing goods and their rental to some beneficiaries
agreement, to cancel the agreement or to buy (lessees) who lack the necessary financial
the asset that had been leased, paying an means.
agreed price so that, at least in part, to take From another point of view, leasing is
account of payments made by way of rent, “a form of renting machinery, tools, means of
that is the depreciation of the property on transport and other goods to the enterprises
such a path”. that generally dispose neither of sufficient
Certain specialized works show in personal or borrowed funds, nor of traditional
detail how leasing operations “are an bank loans by the financial companies which
advantage for all interested”[7]. Some authors purchase them from the producers and lease
define leasing as being “a form of trade and them for a certain period of time, with
financing by lease (rental) of machinery, payment and utilization conditions clearly
transport equipment and some other goods to stipulated in an agreement which is the legal
the enterprises whose motivation to resort to support of the action”.[10]
this commercial technique lies in the From the point of view of the leasing
specificity of certain operations they make company, the transaction is “the purchasing
(on short term and unrepeatable) or in the fact of a property for rental, followed by his hiring
that they do not dispose of sufficient personal for sale”[11], because at the end of the lease
or borrowed funds to buy it, used by financial the lessee may choose to purchase the
companies specialized in this kind of property by paying a residual price. Leasing is
operations“.[8] a financing operation based on a specific
Leasing defines the legal operation by agreement by which the user can use a
which a person (lender, lessor) purchases a property in exchage for the payment of the
good from another person (supplier) to lease rent involved and ultimately to purchase the
it to a third person (user, lessee). The latter property[12].
(the user) will have, at the end of the lease, “Leasing is a form of commissioning,
the right to choose between continuing the upon payment of a fee, of machinery,
lease agreement, buying the property in equipment, means of transport and other
exchange for an agreed price which takes into movable and immovable goods, to certain
account the residual value, or terminating the enterprises that lack financial resources
agreement. needed for their purchasing, for a determined
In our specialized literature, T.R. period of time, under payment and use terms
Popescu defines leasing as being that specified in the agreement”.[13]
agreement by which a person (usually From the point of view of the lessee,
specialized to this purpose) purchases a good leasing is a credit form where the money
to lease it to another person called the user, needed for purchasing the good is obtained
who at the end of the leasing agreement has from its exploitation, and its reimbursement is
the right to choose between three possibilities: realized deferrably as leasing installments and
to continue the legal leasing agreement, to finally as residual price. The credit is
terminate the agreement or to buy the asset represented by equipment and not by money.
that had been leased, paying an agreed price Leasing seems to be an installment sale where
356
the ownership right is transferred at the last If the user chooses to acquire a
installment. permanent right of use of the software before
the expiration of the leasing period, if the two
3. Leasing, in different legal systems parties agree on the request and if the user
pay all the obligations it has assumed by
3.1. In Romanian law the legal contract.
definition of the leasing operation is given by The definition given to the leasing
article 1 of O.G. nr. 51/1997[14] concerning operation by the Romanian legislator is much
the leasing operations and companies closer to the elements of the operation itself,
(approved and completed by Act nr. unlike the older definitions already existent in
90/1998)[15], with the modifications covered other countries legislation.
by Act nr. 99/1999[16] on certain measures
for accelerating the economical improvement 3.2. Taking into account French
and Act nr. 287/2006[17] on the modification legislation, we underline that July 2nd 1966
and completion of O.G. nr. 51/1997 on Act, completed by 28th September 1967
leasing operations and companies. Ordinance, defines the credit-bail operations,
Article 1 of O.G. nr. 51/1997 when they concern equipment or machinery,
stipulates that the leasing operations are those this way: ”rental operations of goods by
“by which a party, called lessor/investor business owners that remain their owners
transfers for a limited period of time the right when these transactions, no matter how they
to use a good that he owns, to the other pary, are classified, give the lessor the possibility to
the user, at his request, upon a periodical purchase totally or partially the rented goods,
payment, called leasing installment, and at the in exchange for an agreed price taking into
end of the leasing period, the lessor/investor account, at least partially, the payments made
commits to comply with the right of option of by way of rents“.
the user to purchase the good, to continue the The French authors[18] define leasing
agreement or to terminate the contractual (crédit - bail) as being “the operation by
relationships “. which a financial institution (crédit - bailleur)
The text of the same article, paragraph acquires property of a good which it rents to
2, shows that the object of these operations the client or the user (crédit - preneur) for an
can be: immovable goods as well as movable irrevocable period of time which generally
goods of long term use, situated in the civil coincides with the repayment period. At the
circuit, except the audio and video recordings, end of this period of time, the user is able to
the plays, the manuscripts, the patents and the purchase the property for a residual value, by
copyrights. virtue of the unilateral promise of sale
As an exception to the provisions in consented to by the financial institution, being
paragraph 2, emerges the right to use also able to renew the agreement for a smaller
softwares, as patrimonial copyright with the rent, or to return the good”.
express provision that the copyright holder is
to be authorized for this operation. 3.3. Leasing in the American law is
The lessor/investor transfers the user defined in section 2A-103 (1) letters g and j
for a limited period of time the right to exploit of the Uniform Commercial Code:” The
the software on which he has a permanent leasing operation represents the transfer of the
right to use it. The commissioning of the right to use of certain goods for a limited
software takes place when the user requires it period of time, in return for consideration; a
upon a periodical payment called leasing sale, including a sale on approval, return, or
installment and at the end of the leasing retention or creation of a security interest is a
period the lessor/investor commits to comply lease”. Unless the context clearly indicates
with the right of option of the user to acquire otherwise, the term includes a sublease[19].
a permanent right of use of the software, to
continue the leasing agreement or to terminate
the contractual relationships.
357
4. Conclusions [9] T.R. Popescu, Dreptul comerţului internaţional,

Ed. Didactică şi Pedagogică, Bucureşti 1976,
p.113 şi urm.
Although we find relatively various [10] D. Voiculescu, M. Coraş, Leasing, Ed. Ştiinţifică şi
approaches of concepts concerning the Enciclopedică, Bucureşti, 1989, p.10.
leasing, there is no contradiction for the [11] B. Ştefănescu, I. Rucăreanu, Dreptul comerţului
situation that it is actually based on an internaţional, Ed. Didactică şi Pedagogică,
agreement in which the owner of a good Bucureşti, 1987, p. 44 - 46.
[12] M.L. Bellu Magdo, Contracte comerciale
allows someone else to use it – by renting it – tradiţionale şi moderne, Ed.Tribuna Economică,
for a certain period of time, in exchange for Bucureşti, 1996, p.183; clarificări semnificative şi
payment. The amount is determined, payble în I. Macovei, Dreptul comerţului internaţional,
yearly, quarterly or monthly, and the lease Vol. II, Editura CH Beck, Bucureşti, 2009, p. 78 şi
may be the object of a sublease. urm.
[13] I. Stoian, Cartea specialistului în comerţ exterior,
In practice, we notice that the vol. II, Ed. Caraiman, Bucureşti, 1994, p. 9.
economical reality has already proven that the [14] Published in M.O. nr. 9/12 January 2000.
mechanism we have referred to in the present [15] Published in M.O. nr. 170/30 April 1998.
work is extremely profitable for the business [16] Published in M.O. nr. 236/27 May1999.
system. The essential explanation is that [17] Act nr. 287/2006 was published in M. O. nr.
606/13 July 2006.
leasing allows the use of the land, of the [18] J.M. Mousseron, J. Raynard , R. Fabre, J.L.
buildings of the equipment (machinery, Pierre, Droit du commerce international, Ed.
installations), without requiring the financial Litec, Paris, 1997, p. 4 -5; A. Jaufret, Le contract
efforts we find in the alternative case, that of de leasing, Montpellier, 1988, p. 11 - 13; D.
their purchasing. Cremieux, Leasing et credit - bail mobilier, Ed.
Dalloz, Paris, p. 16; A.Cohen, Le credit - bail
immobilier, Ed. Dalloz, Paris, p. 8 şi urm.
Endnotes: [19] Uniform Commercial Code Sec. 2A - 103(1) (j).
[1] A., Simion, D. Hold, Documentary in Leasing Bibliography:

Finance, ed. a II a, Ed. Tom Clark Euromoney
Books, London, p. 23 şi urm. [1] P. Alexandru, Managementul în afacerile
[2] D. Cremieux, Leasing et credit - bail mobilier, Ed. economice internaţionale, Ed. Independenţa
Dalloz, Paris, p. 13 - 15. Economică, Bucureşti, 1992.
[3] A. Cohen, Le credit - bail immobilier, Ed. Dalloz, [2] M.L. Bellu Magdo, Contracte comerciale
Paris, p. 6 - 9. tradiţionale şi moderne, Ed.Tribuna Economică,
[4] P. Malaurie, L. Aymes, Cours de droit civil. Tome Bucureşti, 1996.
8. Les contrats speciaux civils et comerciaux, Ed. [3] D. Cremieux, Leasing et credit - bail mobilier, Ed.
CVJAS, Paris 1996, p. 454. Dalloz, Paris, 1975.
[5] The UNIDROIT Convention on international [4] Cohen, Le credit - bail immobilier, Ed. Dalloz,
financial leasing - Otawa - 28 May 1988, enters Paris, 1995.
into force on May 1st 1995. After indicating in [5] M. Costin, Dicţionar de drept internaţional al
(2) article 1 the characteristics of the transaction, afacerilor, vol. I - II, Ed. Lumina Lex, Bucureşti,
the following stipulations in (3) and (4) of the 1996.
same article are necessary : C.This Convention [6] A. Jaufret, Le contract de leasing, Montpellier,
applies whether or not the lessee has or 1988.
subsequently acquires the option to buy the [7] I. Macovei, Dreptul comerţului internaţional, Ed.
equipment or to hold it on lease for a further Junimea, Iaşi, 1980.
period, and whether or not for a nominal price or [8] I. Macovei, Dreptul comerţului internaţional, Vol.
rental. D.This Convention applies to financial II, Editura CH Beck, Bucureşti, 2009, p. 78 şi urm.
leasing transactions in relation to all equipment [9] P. Malaurie, L. Aymes, Cours de droit civil. Tome
save that which is to be used primarily for the 8. Les contrats speciaux civils et comerciaux, Ed.
lessee's personal, family or household purposes”. CVJAS, Paris 1996.
[6] M. Costin, Dicţionar de drept internaţional al [10] J.M. Mousseron, J. Raynard , R. Fabre, J.L. Pierre,
afacerilor, vol. I - II, Ed. Lumina Lex, Bucureşti, Droit du commerce international, Ed. Litec, Paris,
1996, p. 205. 1997.
[7] I. Macovei, Dreptul comerţului internaţional, Ed. [11] T.R. Popescu, Dreptul comerţului internaţional,
Junimea, Iaşi, 1980, p. 305 -307. Ed. Didactică şi Pedagogică, Bucureşti 1976.
[8] P. Alexandru, Managementul în afacerile [12] A. Simion, D. Hold, Documentary in Leasing
economice internaţionale, Ed. Independenţa Finance, ed. a II a, Ed. Tom Clark Euromoney
Economică, Bucureşti, 1992, p.15. Books, London, 1990.
358
[13] I. Stoian, Cartea specialistului în comerţ exterior,

vol. II, Ed. Caraiman, Bucureşti, 1994.
[14] B. Ştefănescu, I. Rucăreanu, Dreptul comerţului
internaţional, Ed. Didactică şi Pedagogică,
Bucureşti, 1987.
[15] D. Voiculescu, M. Coraş, Leasing, Ed. Ştiinţifică
şi Enciclopedică, Bucureşti, 1989.
[16] *** UNIDROIT Convention on international
financial leasing - Otawa - 28 May 1988.
[17] *** Uniform Commercial Code Sec.2A - 103(1)
(j).
359
CHRONOLOGICAL ASPECTS OF THE IMPACT OF THE OTTAWA CONVENTION ON

SOME CATEGORIES OF INTERNATIONAL COMMERCIAL TRANSACTIONS

barna_av@yahoo.com
Abstract: The 28th May 1988 Ottawa Convention regulates the material policy of the international movable leasing. At
the same time it defines the operation’s characteristics as well as the rights and obligations of the parts involved in the
leasing agreement. The Ottawa Convention takes into account the adopting of uniform rules relating to the operation of
international leasing, aiming to eliminate certain interfering legal obstacles. It also aims to ensure the balance
between parties to the transaction, make leasing more affordable and adapt international legal rules concerning the
lease normally. In addition to the conditions of material and territorial scope, the Convention also specifies the
conditions for its implementation in time - rules of transitional law, the problem concerning the settlement of a possible
conventional conflict. The present paper wants to address those issues concerning the application in time of the
conventional text.
Keywords: Movable easing, international agreements, uniform application, conflict between conventions.
JEL Codes: K12; K33.
1. Introduction 2. Aspects of its applicability in time
The condition for the Ottawa The applicability in time of the

Convention to enter ino force was the deposit Convention depends on the date on which the
of at least three instruments of ratification: transaction is concluded, of both the supply
acceptance, approval or accession, The and leasing agreements. The conventional
Convention entered effectively into force on provisions are therefore applicable only if the
May 1st 1995, according to art. 16 paragraph transaction occurred subsequent to the date on
1, respectively “on the first day of the month which the Convention entered into force in
following the expiration of six months after that state between two or three that has
the date of deposit of the third instrument of ratified or acceded to it at the latest. If the
ratification, acceptance, approval or Convention is applicable under the rules of
accession”. The same six month period is the conflict of laws of the forum/Contracting
stipulated for the conventional text to enter States – according to article 3 paragraph 1 (b),
into force for the countries that joined the first the date that must be taken into consideration
three or are to join in the future. is that on which the Convention entered into
The normative text also specifies the force in the contracting state whose law
rules of transitional law in order to define the governs the agreement at the latest. If the
moment after which the international leasing conflict rule implemented designates as
transactions[1], concluded between the parties normally competent to regulate each of the
situated in the territory of the contracting two contracts by the same law, only once will
states or governed by the law of the latter, are it let us know whether or not the operation is
subject to agreement. Article 23 stipulates governed by the Convention.
that “this Convention applies to a financial The chronological aspect is surely of
leasing transaction when the leasing great interest, article 23 refferring to a pretty
agreement and the supply agreement are both accurate criterion: that of the conclusion of
concluded after the date on which the the agreement and not of its signing. It
Convention enters into force in respect of the remains therefore to know precisely what we
Contracting States referred to in Article 3(1) must understand by this expression more
(a), or of the Contracting State or States subjective than the more formal second.
referred to in paragraph 1(b) of that article.” In fact, two situations are possible:
resorting to the definition formulated by the
common law, or to inspire us from that
adopted by the Vienna Convention of April
11th, 1980 referring to the international sale of advanced. The legal construction that the
goods. This last option seems to be the closest parties want may not have taken into account
to what the authors of the convention wanted this parameter and could ruin their
especially if article 6 paragraph 1 of the predictions. According to article 5, we
Ottawa Convention clearly stipulates that we suggest that the behavior of the parties should
must take into consideration its international be interpreted as expressing a desire of
character. implicit exclusion of the Convention.
The preparatory work of the
convention shows that its authors have 3. Conflict of conventions
inspired themselves to a great extent from the
Vienna Convention[2] and according to the In accordance with the provisions of
definition in the Vienna Convention, article the aricle 90 of the Vienna Convention and of
23: the date of the conclusion of the the article 23 of the Geneva Convention
agreement is the date on which “an concerning the representation, article 17
acceptance of an offer becomes effective in allows us to eliminate, totally or patially, the
accordance with the provisions of this application of the Convention for the benefit
Convention”, so that the conclusion of the of existing or future treaties, with universal or
agreement, according to the consensual regional character, without prejudice to
principle is mistaken for the moment of the liability regimes (existing or future) that could
acceptance. The latter is defined by the article influence any person involved in the
18 of the Vienna Convention according to operation. It “does not prevail over any treaty
which the acceptance of the offer becomes which has already been or may be entered
effective at the moment “the indication of into; it shall not affect any liability imposed
assent reaches the offeror”. on any person by existing or future treaties”,
In accordance with this which is a consensus between opposing
interpretation[3], the international movable views: one positive for the literal repeating of
leasing transaction must be considered as the provisions of the Vienna Convention, the
being concluded when one of the parties other favourable to its simply deletion.
involved in the leasing agreement – the For some of its authors[4], the
offeror – gets the approval of the other party, material area of the Ottawa Convention, being
the lessee being the initiator of the much lower than that of the Vienna and
transaction[4]. Something which is achieved Geneva Conventions, should prevail as
in practice through a tendering made to special provisions. If we take into
several lessors; it is the latter’s task to make consideration certain special conventions
in return a specific offer taking into account referring to the product liability act, or those
the financial and legal terms and conditions of relating to the liability of a ship’s owner, we
the transaction. Only when the offeree should immediately realize the danger of this
accept one of them is the transaction reasoning. Some have opposed this provision
concluded in principle. It is then the which, in their opinion, might lead to negative
parties’responsibility to transcribe again and conflicts of conventions, thus appearing the
to draw up one or several agreements risk of being a source of uncertainty for the
according to the previously accepted offer. parties. Contrary to the provisions of which it
A priori, this provision does not is inspired, it refrains from reproducing any
appear to present major risks when condition relating to the location of the
implemented. It is however possible that the parties, so that it avoids any troublesome
conclusion date thus determined shoud not be consequence concerning the inapplicability of
necessarily representative for the will of the some provisions when the criterion of
parties. We are taking into account the case in membership contained in another treaty
which the entering into force of the would be located in a non-member country of
Convention should occur before concluding the convention.
the transaction, but at a moment in which the The aim of this provision is to avoid
negociations for the agreement are already far any “laxism”[5], because the Convention does
361
not function as a refuge to avoid the In order to interpret it we must take into
application of more stringent stipulations – account not only its international character,
especially for the lessor. but also the need to promote the uniformity of
To this end it favours the application its application[8]. The Convention eliminates,
of any “lex specialis”. We show that to the in principle, any possibility of particularistic
application of the Ottawa Convention, it behaviour and urges those who will be called
should be preferred the application of the to interpret it to avoid its interpretation in the
Geneva Convention of 1948 on international light of the principles and solutions offered by
recognition of rights in aircraft; it should also their own national systems. The approach to
be preferred the Brussels Convention of the domestic and international leasing law
November 29th 1969 referring to the civil must be made with great caution and only in
liability of the ships’owners for damages cases where the comparison is necessary[9].
caused by hydrocarbon pollution, or the Conventional provisions should
Hague Convention on the law applicable to preferably be interpreted taking into
product liability. consideration the conventional ensemble in
which they are inserted, the principles defined
4. The interpretation and application of the in preamble, preparatory works or the
conventional provisions comparison with different official language
versions of the Convention that were
In article 6, the Convention gives accepted. Finally, a comparative analysis of
directives of interpretation for its provisions: the solutions used by various national laws
“1. regard is to be had to its object and could help to interpret the Convention in a
purpose as set forth in the preamble, to its sense that the majority accepts and it is
international character and to the need to preferable to the one that favours
promote uniformity in its application and the systematically lex fori[10].
observance of good faith in international In addition to the material and
trade”. The issues that are not expressly international dimension of the Convention,
settled by the Convention must be “settled in the interpreters are also invited to take into
conformity with the general principles on account the need to ensure the observance of
which it is based or, in the absence of these good faith in international trade, the
principles, according to the law applicable by Convention urging to a flexible and
virtue of the rule of private international transparent interpretation. The article 6
law”[6]. paragraph 1 reminds the state judges or the
Article 6 of the Convention discusses arbitrators the mission that is incumbent on
the matter of knowing the principles on which them: to ensure the observance of good faith
it is based. Developed under the auspices of in international trade. It demands the
UNIDROIT, we must consider that it is about interpreters to avoid the prevailing of their
the principles defined stricto sensu in personal point of view under the pretext of a
preamble or that it refers from a larger point general interpretation and to prefer a solution
of view to the UNIDROIT Principles on more appropriate to the stipulations of the
international agreements. Another good faith international trade.
interpretation should lead to the admission “International trade” is here
of the indirect consecration of the lawfulness referential. This expression must be
of the UNIDROIT principles[7] through an understood in its largest meaning, the
international convention aiming at a totally Diplomatic Conference Acts stating that “the
different topic. term international trade must be understood as
also including the international investments.”
4.1. How to interpret the convention
4.2. Filling the gaps of the convention
Article 6 paragraph 1 preserves the
coherence of the uniform international Article 6 paragraph 1 of the
material regime promoted by the Convention. Convention shall apply to cases where the
362
Convention would be ambiguous, while to in article 6 paragraph 2, we could extend

article 6 paragraph 2 covers the situation the interpretation to include the principles of
where the Convention would be incomplete. lex mercatoria.
According to article 6 paragraph 2, the
questions which are not expressly settled by 4.4. The “restricted” interpretation of
the Convention must be “settled in conformity principles
with the general principles on which it is
based or, in the absence of such principles, in Taking into consideration the
conformity with the law applicable by virtue triangular nature of the transaction, the
of the rules of private international law”. principle of good faith and the need for
This article 6 paragraph 2 introduces uniformity in the fields of both civil law and
explicitly the order of preference, hierarchy of commercial law of international movable
rules and gives priority to the general leasing[13] serves the balance created by the
principles on which the Convention is Convention between the different parties
based[11]. involved in the leasing transaction and the
We can not conceive that the strict partition of roles: financial, for the
harmonization and internationalization of lessee, and technical, for the lessor. Each
leasing arrangements covered by the party is able to legitimately expect from the
Convention can not be achieved, as judges or other co-contractor a prudent behavior in its
arbitrators would complement these field of activity.
shortcomings following the solutions This principle is the basis for: the
proposed by the relevant national law, principle of exemption from liability of the
without taking into account the consequences lessor (the risks related to the inadequacy of
of their conduct towards the institution and the equipment being supported by the
the specific arrangement whose object they supplier), limitation of liability of the lessor
are and that that the Convention itself is based against a third party, protection of the
on the inadaptability of the national solutions ownership of the lessor on the equipment,
to international[12]. especially in case of bankruptcy of the lessee,
National rules should be applied only as well as the efficiency of the penalty
as a last resort, when no appropriate solution clauses[14].
could be found for the matter. The good faith principle, understood
as contractual loyalty[15], must lead each one
4.3. How to interpret the "principles" of of the parties to cooperation, or as an
reference in international leasing economic espression says, to “reveal the
information” needed in order to optimize the
The Convention shortcomings are contractual operation and to reach the balance
complementary, according to article 6 previously opened and analysed.
paragraph 2, as stipulated by the principles on Uniformity in civil and commercial
which it is based. law requires the avoidance of any
It is a question of extending the particularistic approach to the operation in
notion, as there are two interpretations: these matters and to observe the international
- it only allows taking into context in which it is situated. This last
consideration the principles that would be in a guideline concerning the interpretation
direct relation to the subject of the implicitly justifies the implementation of
Convention and only those; certain authors’vision and consists in the
- it considers that the principles aimed assimilation of the principles on which the
at are not only those related to the subject, but Convention is based concerning “the
also the general Principles written under the solutions derived from the provisions of the
auspices of UNIDROIT Institute, the author Convention through a reasoning realized by
of the Convention. analogy”, that is it allows finding individual
The UNIDROIT principles being solutions.
implicitly included in the principles referred
363
5. Conclusions concerning the lawfulness of 6 paragraph 2 and we consider that only the
the general principles of unidroit principles that led to the elaboration of the
conventional rules should guide the reasoning
The guidelines of the Convention of judges or arbitrators destined to fix its
must be accepted as a landmark necessary shortcomings.
when an appropriate solution is looked for When resorting to general principles
and agree to refer to the internal law as to a should prove itself insufficient to cover one or
last resort. Other authors go beyond this first more shortcomings of the Convention, we
interpretation and do not hesitate to take into will have to turn to the applicable law and the
consideration the application of the. application of the internal law, thus necessary,
Article 6 paragraph 2 is limited to unavoidable.
solving the aspects that are not settled by the If the principles on which the
conventional provisions, and it refers to the Convention is based are not sufficient to
UNIDROIT General Principles. The first cover one of its shortcomings, article 6
explanation concerns the assimilation that paragraph 2 refers complementarily and
could be made between the Convention and alternatively to the rule of the conflict of
the institution which created it. The Principles laws[17]. This risks “the slipping away” of
on which the Convention is based are no the uniformity that the authors of the
longer those that belong to it, but those on Convention were looking for, the necessary
which UNIDROIT is based also. The and inevitable character of this appeal no
Convention Principles are added the general longewr being able to be put into question.
Principles applicable to international The judge or the arbitrator in charge of
agreements. By mixing strictly conventional solving the problem would be then forced to
principles – only those covered by article 6 – refer to the guideline of the first paragraph, to
and “institutional” principles, we understand look for a solution considering the demands
that certain theorists could broadly refer to related to the “international character” of the
“principles”, including the UNIDROIT transaction and “the need to promote the
principles in the area of article 6. uniformity of its application”[18]. The
We should be in favour of the application of the state law normally
consecration of the lawfulness of UNIDROIT responsible would be then avoided.
Principles or of their indirect consecration We notice that the doctrinal proposal
through the Convention. This reasoning involves more risks for the parties, because it
followed by its supporters reveals the is less predictable. If the matter is settled
shortcoming, because it is known that so far neither by Convention nor by the “principles”
the UNIDROIT Principles have had only a on which it is based, it is preferable to take
simple contractual value. inti consideration the competent national law
Article 6 refers to “the principles by virtue of the rules of private international
covered by the Convention” and not by the law.
institution, this analysis being inadmissible.
The broad interpretation of the principles Endnotes:
covered by article 6 paragraph 2 risks to
seriously undermine legal security and [1] ***Actes de la Conference Diplomatique, vol. I,
Etude, p. 187.
predictability of the parties, a fortiori when [2] I. Macovei, Dreptul comerţului internaţional, Ed.
these principles defy some solutions Junimea, Iaşi, 1980.
permitted by internal law[16]. [3] P.Pascal, Le crédit - bail et le leasing. Outils de
Tne critiques brought to these financements locatifs, SEFI, Société éducative
principles make us doubt their legal efficiency financiére internationale Inc., Montréal, 1998, p.
234.
as far as state jurisdiction is concerned, [4] J. Béguin, “ Une tentative d’équilibrage
because this issue is not presented in the same contractuel: la Convention d’Ottawa sur le
terms in an arbitration court. Given the large crédit-bail mobilier international“, Etudes
number of reasons that instigates, we are in offertes à J.Ghestin, Le contract au début du
favour of a restrictive interpretation of aricle XXle siècle, LGDJ, 2001, p. 85 şi urm.
364
[5] R. N. Schutz, “La Convention d’Ottawa sur le Bibliography:

credit-bail”, Cont. conc. cons. Mars 1996, chron.
3, spec. nr. 10; E.M. Bey - Mokhtar, ”La [1] J. Béguin, “ Une tentative d’équilibrage
Convention d’Ottawa sur le crédit - bail contractuel: la Convention d’Ottawa sur le crédit-
international”, La Semaine Juridique, Edition bail mobilier international“, Etudes offertes à
Entreprises, nr. 49, déc.1989, p. 731 - 732. J.Ghestin, Le contract au début du XXle siècle,
[6] Ch. Gavalda,’’Acte final de la conférence LGDJ, 2001.
diplomatique pour l'adoption des projets de [2] E.M. Bey - Mokhtar, ”La Convention d’Ottawa
convention d'Unidroit sur l'affacturage sur le crédit - bail international”, La Semaine
international et le crédit-bail international”, P.A., Juridique, Edition Entreprises, nr. 49, déc.1989 .
13 juill. 1988, n°84. [3] E.M. Bey, La Convention d’Ottawa sur le crédit -
[7] ***Actes de la Conference Diplomatique, vol. II, bail international, JCPE, éd. E., 1989.II.15643.
Etude, p. 85 şi urm. [4] C. Bruneau, Le credit-bail mobilier, la location de
[8] *** UNIDROIT, Principles of International longue duree et la location avec option d’achat,
Commercial Contracts. Reflection on their Use in Banque editeur, 1999.
International Arbitration, Special Suppliment - [5] A. Chevalier, Le leasing international, Petites
ICC International Court of Arbitration Bulletin, affiches 13 oct.1986, nr. 123 - 17.
Publication 642 E, June 2002. [6] P.J. Douvier, Presentation de la Convention,
[9] C. Bruneau, Le credit-bail mobilier, la location D.P.C.I. 1995, nr. 2.
de longue duree et la location avec option [7] Ch. Gavalda,’’Acte final de la conférence
d’achat, Banque editeur, 1999, p. 123. diplomatique pour l'adoption des projets de
[10] C.Gavalda, Le crédit - bail international, Trataux convention d'Unidroit sur l'affacturage
du Comité francąis de droit international privé international et le crédit-bail international”, P.A.,
1988 - 1989, éd. Du CNRS, p.69. 13 juill. 1988, n°84.
[11] ***Actes de la Conference Diplomatique, vol.1, [8] C. Gavalda, Le crédit - bail international, Trataux
Etude LIX.doc, nr. 93, p.42 . du Comité francąis de droit international privé
[12] P.J. Douvier, Presentation de la Convention, 1988 - 1989, éd. Du CNRS.
D.P.C.I. 1995, nr. 2, p. 135 şi urm. [9] C. Macovei , Contracte civile, Ed. Hamangiu,
[13] ***Actes de la Conference Diplomatique, vol. I, Bucureşti, 2006.
Etude LIX, doc. 48, p. 46, spec. nr. 119. [10] I. Macovei, Dreptul comerţului internaţional, Ed.
[14] C.Bruneau, Le crédit-bail mobilier, la location de Junimea, Iaşi, 1980.
longue durée et la location avec option d’achat, [11] P. Pascal, Le crédit - bail et le leasing. Outils de
Banque editeur, 1999, p. 93 şi urm. financements locatifs, SEFI, Société éducative
[15] E.-M. Bey, La Convention d’Ottawa sur le crédit financiére internationale Inc., Montréal, 1998.
- bail international, JCPE, éd. E., 1989.II.15643. [12] R.N. Schutz, “La Convention d’Ottawa sur le
[16] C. Macovei , Contracte civile, Ed. Hamangiu, credit-bail”, Cont. conc. cons. Mars 1996, chron.
Bucureşti, 2006, p. 26 şi urm. 3, spec. nr. 10.
[17] ***Actes de la Conference Diplomatique, vol.1, [13] 13 *** UNIDROIT, Principles of International
Etude LIX-doc. 48, nr. 143, p.51 - 53. Commercial Contracts. Reflection on their Use in
[18] Chevalier, Le leasing international, Petites International Arbitration, Special Suppliment -
affiches 13 oct.1986, nr. 123 - 17. ICC International Court of Arbitration Bulletin,
[19] E.M.Bey, La Convention d’Ottawa sur le crédit - Publication 642 E, June 2002.
bail international, JCPE, éd. E., 1989, II.15643, [14] www.unidroit.org
La semaine juridique, Ed. Entreprise nr. 49.
365
THE EUROPEAN PROTECTION OF THE RIGHT TO LIBERTY AND SECURITY

Judge at the Suceava Court of Appeal
Suceava city, Lisaura village,
Calea Ipotesti street, no. 339 A5
Tel: 0740752286, 0723229476
e-mail: cezar_idumitrescu@yahoo.com
Abstract: Lisbon Treaty is one which intended to replace the European constitutional treaty. Its adoption will make an
improvement of the Community institutional law system, by coming in force of the EU Charter of Fundamental Rights.
The Charter was proclaimed by the European institutions (European Commission, European Parliament and EU
Council) at the Nice European Council dated 07/12/2000 and its contents are set for the first time in a single piece of
the overall social rights, economic, civil and political rights that can benefit all citizens. On the right to liberty and
security, this is the subject of this study, as also on other rights and law, it is apparent that it’s only stated the principle
of protection, without other foresights. In these circumstances, the Charter contains rights which correspond to those
guaranteed by the Convention, the meaning and purpose to be the same as set by the European Court of Human Rights.
Keywords: liberty, security, charter, convention, protection, arrest.
1. At the bottom of making and without any proper support as part of the
functioning the European Union stayed the treaties in force, the Court established a
necessity of setting up a great economical system of fundamental protection rights as
assistance which helps us to unify all the part of the Community principles of law and
economies, to create a common market and to inspired by the constitutional traditions of
facilitate the process of economical Member States.[3] In these circumstances, the
reconstruction after the Second World War, in Court expanded the interpretation, as regards
the conditions of already being a competition protection of fundamental rights, based not
and adversity between the existing ideological only on how they were recognized and
blocks.[1] In this context, taking into account interpreted in the constitutions of Member
the tragic experiences recorded during the States - the constitutional traditions common
Second World War, consecration and to the Member States - but also from
protection of human rights have become basic international treaties concluded by states,
principles of modern organization and including the European Convention on
functioning of national companies, and they Human Rights and Fundamental Freedoms
have received adequate protection and (hereinafter European Convention) has
international relations through their provision proved a particularly important role.
in its international treaties. Even though the
early years of the European Economic This jurisprudence of The Court was later
Community Member States were willing to confirmed and legislatively established
engage only in economic terms, the protection through the deeds of the community
of fundamental human rights can not be institutions. Thus, article 6 paragraph 2 of the
ignored, being the most important criterion Treaty on European Union states that Union
for assessing the democratic nature of society is founded on principles of liberty,
and become one of the principles of democracy, human rights and fundamental
community law. freedoms and the rule of law, principles
In the initial stage, the fundamental rights which are common to the Member States.
were aimed rather to the Community law than „The Union shall respect fundamental rights
to the state actions, as restrictions of the as guaranteed by the European Convention on
powers of community institutions. [2] After Human Rights and Fundamental Freedoms
an early period, in which the European Court signed in Rome on November 4, 1950, and as
of Justice denied the protection of they result from constitutional traditions of
fundamental rights at Community level, at the Member States as general principles of
end of the sixth decade of the twentieth Community law.” In these circumstances
century, this revised its position. Thus, protection of human rights to the minimum
366
required by the Convention has become one degrading treatment or punishment,

of the basic principles of Community law, prohibition of slavery and forced labour),
which has seen a corresponding application in Liberty[13] (right to liberty and security,
the European Court of Justice and the Court family privacy, personal data protection, right
of First Instance.[4] However, compliance to marry and start a family, right to freedom
with those principles on the protection of of thought, conscience and religion freedom
fundamental rights was a precondition for of expression and information, freedom of
membership of any Member of the European assembly and association, freedom of the arts
Union. and sciences, right to education, freedom to
choose an occupation and right to work,
2. In order to protect fundamental freedom to conduct a business, property
rights at EU level, EU Charter of rights, asylum, protection in case of removal,
Fundamental Rights (hereinafter the Charter) expulsion or extradition), Equality[14] (law
was adopted, by the European Council in treatment equality, discrimination, cultural,
Nice in 2000. Beyond these fundamental religious and linguistic diversity, gender
rights statement confirming the establishment equality, child rights, rights of the elderly,
of means to enhance the protection of their disability), Solidarity[15] (right of workers to
relevant books in the European Union will information and consultation within the
create a catalogue of specific rights policy company, the right to collective bargaining
evolution and community development. Since and action, right of access to placement
the Charter was not legally binding, was services, protection in case of unjustified
included, with some modifications, the Treaty dismissal, fair and fair working conditions,
establishing a Constitution for Europe[5] prohibition of child labour and protect young
(European Constitution). Although it has been people at work, family and professional life,
linked to expectations of massive change in social security and social assistance, health
the organization and functioning of the care, access to services of general economic
European Union because of its rejection in interest, environmental protection),
two referendums held in Member States[6], Citizenship[16] (the right to elect and be
the adoption process was frozen and later elected to Parliament, the right to choose and
renounced the attempt to find a solution for its to be elected in local elections, right to good
entry into force. Under these conditions, the administration, access to documents, the
solution was called for a new reform treaty, European Ombudsman, the right to petition,
officially named “Treaty of Lisbon amending freedom of movement and residence,
the Treaty on European Union and the Treaty diplomatic and consular protection) and
establishing the European Community”[7] Justice[17] (right to an effective remedy and
(hereinafter Lisbon Treaty). Following to a fair trial, presumption of innocence and
ratification by all Member States[8], the right to defence, the principles of legality and
Lisbon Treaty entered into force on December proportionality of crime and punishment, the
1, 2009[9], also the Charter entered into force, right not to be tried or punished twice for the
which sets for the first time since the creation same offense).
of the European Economic Community in As matter stands, the Charter
1957 as a whole, a set of social rights, establishes, not only the classic civil and
economic, civil and political rights conferred political rights, also enshrined by the
on citizens[10]. In this way, the EU has European Convention, but also the social,
recognized rights, freedoms and principles cultural and civic rights, without providing
enshrined in the Charter, which has the same the possibility of individual complaints to the
legal value as the treaties[11] and thus a European Court of Justice or the Court of
primary source of Community law. First Instance. However, of the Charter of
These rights are governed by the Rights protection is given the highest level of
Charter in six main chapters: Dignity[12] protection, given the scope of the principle of
(right to life, right to human integrity, the direct effect of treaties, the rights thus
prohibition of torture and inhuman or established being part of national law of
367
States, the supremacy of Community law information on the content of this right, or
applicable in the case of an conflict between how a person could be temporarily deprived
national law and the Charter, given that it of its exercise, these issues will be enshrined
constitutes a treaty, the primary source of in law and doctrine states that "everyone has
Community law and national rules otherwise the right to liberty and security”. In these
inapplicable to the community. However, circumstances, the right content and the
although currently is being planned, recording conditions under which a person could be
difficulties with the content and deprived temporarily of its exercise is a result
implementation of this concept, the EU and of Art. 5 of European Convention and rich
Council of Europe seeks to achieve a judicial practice established in the European
coherent, unified human rights protection in Court.
Europe[18]. To this end, it is intended to be At European level human rights
assigned to the European Court the power to including the right to liberty and security,
exercise control over external nature of which enjoy special protection by the states
European Union acts aimed at human rights ratifying the European Convention[23] and by
contained in the European Convention[19]. the opportunity offered to people to address
In addition to stating each of the the European Court, to ensure that these rights
fundamental rights protected by the Charter, it are protected properly. European Convention
is stipulated the possibility of States and EU is the first international document, which
institutions to make restrictions only on their organizes the defence of each individual to
exercise. Therefore, the limitations of these their own state, and guaranteeing the
rights and freedoms can target only the fundamental rights and freedoms it contains.
exercise of consecrated rights, any of which European Convention is not intended to
can not be removed from plano, and are replace national law but only to remedy
subject to the fact of being stipulated by the deficiencies and gaps and by setting a
law, not to affect the substance of the rights minimum standard of protection and rights
covered by the principle of proportionality, and the signatory states are free to exceed this
restrictions could be imposed only if they are minimum standard of protection by
necessary and only if they really meet the establishing in the national law stronger
objectives recognized by European Union or guarantees than those established by the
the need to protect the rights and freedoms of European Convention and the national
others[20]. authorities to the obligation to comply with
According to the principle of these rules in their dealings with individuals.
minimum protection for fundamental rights As noted, one of the fundamental
and freedoms contained in international rights enshrined in the European Convention,
treaties and the Charter it provides which generated a rich jurisprudence, is the
expressly[21] that its provisions can not be right to liberty and security. Article 5 of the
interpreted as restricting or adversely European Convention enshrined the principle
affecting the fundamental rights recognized of the right to liberty and security, one of the
by European Union law and international law basic principles of a democratic society; one
and international conventions at which Union can not be deprived of his right in an abusive
or Member States are parties. This principle or arbitrary. The principle of guaranteeing the
relates, in addition to regulations said, not right to liberty and security has a number of
only the constitutions of Member States but exceptions, one of them could be the case in
also the European Convention, which also which a person may be temporarily deprived
determines, through the European Court's of his right. Thus, if a person can be deprived
practice, the meaning and scope of those of this right of its domestic law it is required
rights[22]. to provide the conditions for taking such
measures, which have to be obeyed by the
3. In Title II of the Charter is devoted, state bodies. Deprivation of liberty ordered
at the principle level, the right to liberty and has to emanate from the competent authority,
security. Without providing additional to be enforced by such authority and must not
368
be arbitrary[24]. The deprivation of liberty offense, the European Convention provides a

means any form of arrest, holding, detention number of additional safeguards to avoid
and not mere restrictions on individual abusive or unjustified arrest. The accused
freedom as freedom of movement and must be brought promptly before a judge or
travel[25]. Thus, the doctrine[26] has shown magistrate[28] authorized by law to exercise
"to suffer deprivation of liberty it is necessary of judicial powers and is entitled to be tried
to restrict a person's relationships to third within a reasonable time or put liberty[29].
parties, the temporary inability to leave In this regard, the initial phase, the European
certain areas, that, plus a subjective aspect, Court ruled that the prosecutor may order and
namely the feeling of isolation and inability to verify the legality of detention, even if it is
carry your normal life”. Also, deprivation of subordinate to executive power, which is
liberty is not allowed to state authorities in independent of the parties[30]. Subsequently,
any circumstances, being necessary that these the European Court ruled that the prosecutor
fall into one of those listed expressly in the is not a judge with judicial functions, it
Convention European text. satisfies the criteria of impartiality and
The cases in which European objectivity, as it has powers of
Convention permits deprivation of liberty are prosecution[31] and, while not satisfying the
the following[27]: condition of independence against the
- Legal ownership after conviction by a executive[32]. To extend custodial measure
competent court; has been willing to require that the accused be
- Arrest and detention resulting from a a public interest, which is required to protect,
judicial order or an obligation imposed by law despite the presumption of innocence enjoyed
that the person arrested or detained was not by the defendant, and there are plausible
subject; reasons to doubt that the accused is guilty of
- Detaining a person against whom there are an offense that is charged. During the
credible reasons to suspect that committed a investigation judicial bodies may release the
crime or when there is good reason to believe accused on bail, as a guarantee that it will not
in the need to prevent committing or fleeing escape and will not influence the
after having done so; investigation[33]. The amount of bail should
- Legal custody of a minor to provide be set according to criteria such as the
supervised education or to be brought before defendant has the resources and the degree of
the competent authority; danger which is accused of the crime,
- Social legal detention, to individuals reflected in the limits of punishment
suffering from mental alienation, alcoholism prescribed by law and that this may not make
or wander; it completely inaccessible.
- Detaining a person in the event of expulsion Article 5 paragraph 4 of the European
or extradition. Convention also gives the accused the right to
lodge an appeal before a court to look for it to
4. Beyond these reasons which may be rule on the legality of his deprivation of
the basis of deprivation of liberty, the liberty and opportunity. The states are not
measure has to be legal, fair and proportionate obliged to establish a double degree of
to the situation that caused it, all of which jurisdiction on the disposition or extended
guarantees that the imprisonment of the measure of deprivation of liberty[34], but the
accused can be built objectively, without measure to be subject to regular inspection to
arbitrariness of the authorities entrusted by check that it still requires the reasons for
law with such duties. For this purpose a persistence what caused it or for us, or it must
number of rights for the accused deprived of release the accused who will be investigated
liberty are provided. Thus, defendant is in liberty or removed by impeachment.
entitled to be informed; as soon as possible However, the persistence of periodic
and in a language he can understand the verification reasons that led to the measure of
reasons for arrest and the accusations against deprivation of liberty must be performed at
him. If the accused deprived of liberty is an intervals not exceeding three months[35].
369
From the perspective of the European of Lisbon, see Mihail Udroiu, Ovidiu Predescu,
Convention that review is necessary until the work cited, p. 39.
[20] See the article 52 paragraph 1 of the Charter.
first solution of the first instance is [21] See the article 53 paragraph 1 of the Charter.
pronounced, then considering that it is [22] For a comparative analysis of the two instruments
incorporated into original sentencing of protection of fundamental rights - European
decision[36]. To extend the arrest is not Convention and the Charter - see Mihail Udroiu,
enough there is a plausible guess for the crime Ovidiu Predescu, cited work, p.42.
[23] This document was prepared by the Council of
charged, but it is necessary that other issues Europe, being signed on 11.4.1950 and in force on
arise that require this, and to avoid the danger 09.03.1953.
that the accused at the trial. [24] See Aurel Ciobanu-Dordea, Gabriela Mazilu,
Mihai Selegean, Dreptul la Libertate si Siguranta
Endnotes: from Drepturi si Libertati Fundamentale in
Jurisprudenta Curtii Europene a Drepturilor
Omului (Dragos Bogdan, Mihai Selegean etc.),
[1] See Tudorel Stefan, Beatrice Andresan-Grigoriu, publishing All Beck, Bucharest 2005, p. 106.
Drept Comunitar, C.H. Beck Edition, Bucuresti [25] For more details on the concept of deprivation of
2007, page 3. liberty, see Corneliu Birsan, Conventia Europeana
[2] See Tudorel Stefan, Betrice Anresan-Grigoriu, a Drepturilor Omului. Comment on articles. Vol. I
work cited, page 143. Drepturi si Libertati, publisher All Beck,
[3] See case Stauder vs. Ulm city [1969] ECR 419. Bucharest 2005, p.287-292.
[4] For an example in this respect, Mihail Udroiu, [26] See Radu Chirita, Conventia Europeana a
Ovidiu Predescu, Protectia europeana a Drepturilor Omului, comments and explanations,
drepturilor omului si procesul penal roman, C.H. volume I, publisher CH Beck, Bucharest 2007, p.
Beck Edition, Bucharest 2008, page 38. 188.
[5] This treaty was signed in Rome on 29.10.2004, [27] For a comprehensive analysis of cases of detention
after a long series of debates, which required allowed by European Convention see Mihail
different actors of European political scene. Udroiu, Ovidiu Predescu, Cazuri de privare de
[6] These referenda were held in France and Holland. libertate a unei personae in jurisprudenta Curtii
[7] Treaty text was finalized in an informal summit in Europene a Drepturilor Omului, Law no. 2/2008
Lisbon, on 19/10/2007, and was signed by p. 294-303, and Law no. 3 / 2008 p. 278-301.
representatives of Member States of the European [28] See in this respect George Antoniu, Emilian
Union on 13.12.2007. Dobrescu, Tiberiu Dianu, Gheorghe Stroe, Tudor
[8] Czech Republic was the last of the countries that Avrigeanu, Reforma legislatiei penale, Romanian
ratified the treaty, on 11.3.2009. Academy Publishing House, Bucharest 2003, p.
[9] For considerations of adoption and the 272.
importance of the Lisbon Treaty, see Constance [29] See Bianca Selejan Guţan, Protectia europeana a
Calinoiu, Victor Duculescu, Drept Constitutional drepturilor omului, publishing All Beck, Bucharest
European, publisher Lumina Lex, Bucharest 2008, 2004, p. 115-116.
page 65 et seq. [30] See case Schiesser vs. Switzerland.
[10] For an analysis of the innovations introduced by [31] See case Brincat vs. Italy.
the Charter, see Victor Duculescu, Protectia [32] See case Pantea vs. Romania.
Juridica a Drepturilor Omului, publishing Lumina [33] For an analysis regarding the obligation of courts
Lex, Bucharest 2008, p. 145-150. to courts to consider an alternative measure that
[11] See Mihail Udroiu, Ovidiu Predescu, work cited, provides custodial see Bogdan Dragos, Arestarea
p. 43. preventive in jurisprudenta Curtii Europene a
[12] See these articles 1-5 of the Charter. Drepturilor Omului, publisher Hamangiu,
[13] See these articles 6-19 of the Charter. Bucharest 2008, p.137 - 141.
[14] See these articles 20-26 of the Charter. [34] See Corneliu Birsan, cited work, p.372.
[15] See these articles 27-38 of the Charter. [35] See Aurel Ciobanu-Dordea, Gabriela Mazilu,
[16] See these articles 39-46 of the Charter. Mihai Selegean, cited work, p.135.
[17] See these articles 47-50 of the Charter. [36] See Corneliu Birsan, cited work, p.374; Mihai
[18] For an opinion in this respect - the outcome would Udroiu, Ovidiu Predescu, cited work, p. 397.
be joining the European Union to the European [37] See in this respect Alexander Ţuculeanu,
Convention - see Tudorel Stefan, Beatrice Detention, Reţinerea, arestarea preventivă,
Andreşan-Grigoriou, work cited, p. 180-181. obligarea de a nu părăsi localitatea, Lumina Lex,
[19] See in this regard the Protocol on Article 6 Bucharest 2003, p. 179, 180, Dragoş Bogdan,
paragraph 2 of the Treaty on European Union on cited work, p 130-137.
accession to the European Convention on Human [38] See article 1 from the Protocol nr. 4.
Rights and Fundamental Freedoms. For exposure
doctrine prior to the entry into force of the Treaty
370
References:
[1] Antoniu, G., Dobrescu, E., Dianu, T., Stroe, Gh.,

Avrigeanu, T., 2003, Reforma legislaţiei penale,
Bucharest, publisher Romanian Academy
Publishing House;
[2] Birsan, C, 2005, Convenţia Europeană a
Drepturilor Omului. Comentarii pe articole. Vol. I
Drepturi şi Libertăţti, Bucharest, publisher All
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[3] Călinoiu, C, Duculescu, V, 2008, Drept
Constituţional European, Bucharest, publisher
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[4] Ciobanu-Dordea, A, Mazilu, G, Selegean, M,
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Drepturi şi Libertăţi Fundamentale în
Jurisprudenţa Curţii Europene a Drepturilor
Omului, Bucharest, publisher All Beck;
[5] Chirita, R, 2007 Convenţia Europeană a
Drepturilor Omului, comentarii şi explicaţii,
volume I, Bucharest, publisher C.H. Beck;
[6] Dragos, B, 2008, Arestarea preventivă în
jurisprudenţa Curţii Europene a Drepturilor
Omului, Bucharest, publisher Hamangiu;
[7] Duculescu, V, 2008, Protecţia Juridică a
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[8] Selejan Guţan, B, 2004, Protecţia europeană a
drepturilor omului, Bucharest, publishing All
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[9] Ştefan, T, Andreşan-Grigoriu, B, 2007, Drept
Comunitar, Bucureşti, publisher C.H. Beck;
[10] Ţuculeanu, A, 2003, Detenţia, reţinerea, arestarea
preventivă, obligarea de a nu părăsi localitatea,
Bucharest, publisher Lumina Lex;
[11] Udroiu, M, Predescu, O, 2008, Cazuri de privare
de libertate a unei persoane în jurisprudenţa
Curţii Europene a Drepturilor Omului, Bucharest,
Law no.2, Law no. 3, publisher C.H.Beck;
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europeană a drepturilor omului şi procesul penal
român, Bucharest, publisher C.H. Beck;
371
COMPARATIVE ANALYSIS OF THE RIGHT TO LIBERTY AND SECURITY

REGULATIONS IN THE CONSTITUTION OF ROMANIA AND MOLDOVA

Judge at the Suceava Court of Appeal
Suceava, Romania,
cezar_idumitrescu@yahoo.com
Abstract: The right to liberty and security is amply regulated in the Romanian and Moldavian Constitutions. This right
has two parts: the right to liberty and the right to security, which are different, but they are strongly bounded to each
other, the first aims for the physical freedom of a person, her right of movement as she likes, and the second one aims
for the entirety of guarantees which protects the person against the state’s authorities which can proceed of deprivation
of her liberty. The Constitutions of these two countries stipulate the possibility that a person can be temporarily
deprived of this right by body search, custody and imprisonment before trial. In order to do this there are a series of
conditions which aim, on the one hand, that the deprivation of liberty does not have to be done in arbitrary conditions
and on the other hand, the society protection towards the defendant’s antisocial behaviour.
Keywords: constitution, liberty, safety, search, provision, arrest.
JEL Classification: K10

Declaration of Human Rights, International
After the Second World War, Covenant on Civil and Political Rights,
Romania and Moldova have experienced a European Convention on Human Rights and
totalitarian regime; the enshrining human Fundamental Freedoms, etc..
rights existed only in statements and Both Constitutions have a similar
propaganda, the reality being in total content, right to liberty and security being
contradiction with the assertions on the provided by the article 23 of the Constitution
political, diplomatic or by media. of Romania, entitled „Individual freedom”,
Following the unfortunate experience and by the article 25 of the Constitution of the
recorded on the human rights protection in the Republic of Moldova, entitled “Individual
post totalitarian period, Constitutions of both freedom and security of person”. The first
countries have established a number of paragraphs of each of the items indicated by
fundamental rights and freedoms in detail, in both constitutions have a similar content,
comparison with other democratic which enshrines the inviolability of the right
Constitutions, precisely in order that these to liberty and security. However, the right to
rights should be protected at the highest level. liberty and security is not an absolute right,
The superior protection of rights enshrined in which is also apparent from the following
both Constitutions comes from their nature of paragraphs of the text content of
supreme law in each state, the lower constitutional review, which enable people to
regulations being necessary to meet temporarily deprivation of this right, in strict
constitutional standards and principles and the compliance with the rules of substance and
stability of these acts, which can be amended form established by the Constitutions and
only by special procedure of constitutional subsequent regulations. On this occasion it is
review. reported a first distinction between the two
One of the fundamental human rights, constitutions, considering the possibility of
which benefited by an extensive depriving a person of liberty, with
constitutional regulation and adequate consequences on secondary legislative acts.
protection in post-communist period is the Thus, article 23 paragraph 4 of the Romanian
right to liberty and security. This right is part Constitution stipulates that the arrest may be
of the first generation of fundamental human ordered only in criminal proceedings, while
rights enshrined in the Declaration of Human article 25 of the Constitution of the Republic
Rights and Citizen, U.S. Constitution and of Moldova does not include a similar
subsequently by international treaties provision and may be ordered in different
concerning human rights and the Universal trials, as it is provided in special regulations
relating to arrest. Specifically, the Moldavian liberty and security is achieved through the
law allows deprivation of liberty by detention, intervention of state authorities to prevent or
arrest and convictions, not only for to terminate such an action by individuals and
individuals accused of committing crimes and by prohibiting and punishing by law such
for those accused of committing offenses.[1] activities, illegal detention being considered a
However, regardless of whether the crime in the law of both countries and which
accusation is a criminal or a minor offense, is properly punished.
deprivation of liberty must meet rules In this respect the European Court of
imposed by the Constitution and article 5 of Human Rights (hereafter ECHR) in the case
European Convention of Human Rights Riera Blume and Others vs. Spain[4]
(hereinafter the Convention), its effect being considers that the state has violated its
similar to the defendant.[2] positive obligation to guarantee individual
Returning to the first paragraphs that freedom and safety of a person, making the
enshrine the right to liberty and security in state’s authorities responsible for restricting
both constitutions, we note that they devote individual liberty, even if it took place at the
two rights, which are closely interlinked, the request of plaintiffs and with family
right to liberty and right to safety, but not participation, because the authorities,
identical, otherwise the expression is a throughout ongoing events, have consented to
tautology. We will not attempt here to the deprivation of liberty which has occurred.
redefine both rights, which are clearly defined Therefore, guaranteeing the right to
at a theoretical level of specialty in liberty and security of person, the state
constitutional law treaties and international undertakes not to do anything negative in
human rights protection. Just remember nature to affect this right but also has the
that at the doctrinal level, individual freedom obligation to make, which is a positive
was defined as "the natural freedom of the obligation, namely to take all necessary steps,
person, his right to be able to move and act legal, administrative or judicial to ensure the
freely, not to be held in slavery or in any compliance with this right.
other servitude, not to be retained, arrested or Internally, this state obligation of the
detained only in cases which are expressly guarantee of individual freedom and security
provided by the Constitution and laws”, and of a person is one of prudence and diligence;
the security of a person was defined as "all also the state has the obligation to act with
guarantees that protect a person in prudence and diligence necessary to achieve
circumstances where public authorities, under this goal, but without the infringement of that
the Constitution and laws take certain right would lead eo ipso to the conclusion of
measures relating to individual freedom, violation of the obligation. In this regard, the
safeguards which ensure that these measures article 52 paragraph 3 of the Romanian
should not be illegal."[3] Constitution stipulates that the state has a
So, following the constitutional patrimonial liability for mistakes caused by
guarantee of the right to liberty and security judicial errors, and the article 53 paragraph 2
and ratification by states of international of the Constitution of the Republic of
treaties concerning human rights, state Moldova entitled "The right of the aggrieved
authorities shall be responsible not to person by a public authority" shows that "the
negatively affect this right, only in strict state has a patrimonial liability by law for
compliance with cases and conditions set by damages caused by errors committed in the
constitutions, laws and international treaties. criminal trial by bodies and courts." The
But also the state has a positive obligation to fulfilling commitments assumed by the state
ensure the respect for individual freedom and by ratifying international treaties regarding
safety of the person and the relationship human rights is an obligation of result, any
between private and legal persons, the violation of these rights involves state’s
obligation not to allow the limitations of these responsibility to the international community.
rights caused by other private persons. State's Internationally, the infringement of right to
positive obligation to guarantee the right to liberty and security attracts the political and
373
judicial state’s liability by the specificity of evidence that searching body of a person is
applicable international treaty.[5] From this likely to bring its infringement on privacy.
perspective the most effective human rights As noted in doctrine, the detention is a
protection provided by any international measure of prevention and coercion, the
treaty, triggering the most serious ability of its disposal returning to prosecutors
responsibility of states, is that in which the and criminal investigators.[8] Regarding the
human rights enjoy legal protection by detention, both Constitutions do not provide
bringing up to an international jurisdiction by other details excepting the maximum duration
private individuals, as the case covered by the of detention. The Constitution of the Republic
Convention on Human Rights and of Moldova provides a maximum 72 hours
Fundamental Freedoms (hereinafter the term of detention, after which the accused is
Convention). arrested or released. This term is acceptable
The Constitutions of both countries in light of ECHR jurisprudence and
enshrine the right to liberty and security, thus comparing with other states constitutions, the
giving it the highest level of protection, but Constitution of Spain[9] has a similar
also provides the possibility that the persons provision. The Romanian Constitution
could be temporarily deprived of this right stipulates that the maximum detention period
through search, detention or arrest. Note that is 24 hours, which raises a number of
the content of the Code of Criminal Procedure problems in practice. Thus, in complex cases
of the Republic of Moldova contains another where the allegations are serious and
deprivation of liberty called under house extensive or there are multiple defendants
arrest, which, in both terms constitutional as against whom it is proposed to take
well as criminal procedure, is subject to the preventive arrest, this time it appears totally
same rules as arrest. inadequate for the criminal investigators to
Regarding the search, we must proceed with the hearing of the defendants,
distinguish between body search and the Prosecution department proceeds itself in
domiciliary search. In both Constitutions the a similar manner, with the purpose to submit
search is provided firstly in the article an arrest proposal to the court, which again
devoted to individual liberty and security of must have enough time to study the case,
person, with application to body search only, hearing the defendants and holding the
because the body search only represents a hearing for arrest and deliberation.[10] In this
temporary deprivation of right to liberty and regard, we consider that a maximum term of
security.[6] This results from the need to 48 hours of detention meets the requirements
restrain the person while performing this of European Convention[11] but also for
search, being in this way deprived of the right conducting procedural acts, which are
to physical freedom, the ability to move or necessary for the court can have dispute on
move freely. In both Constitutions the the admission or rejection of the preventive
domiciliary search finds its regulation in arrest proposal.
subsequent articles[7] entitled „The Arrest is a measure that seriously
inviolability of domicile”, which provide as undermines the person's right to liberty and
an exception of this principle the domiciliary security, but also his professional and family
search, which can take place only in cases life, personal and professional reputation.[12]
expressly mentioned by Constitutions. Arrest was defined as a deprivation of liberty;
Legally, the body search is a its execution consists in holding a person
procedural act, a way of lifting objects and against whom this measure has been assigned
documents, as opposed to detention and in specific places for those who are deprived
arrest, which are preventive imprisonment. of their liberty.[13]
Nevertheless, the body search constitutes a The arrest regulation experiences a
measure in which the right to liberty and number of common points in both
security is breached, a situation which Constitutions, but there are also
justifies its inclusion in the article which distinguishing features between them. A first
enshrines this right, even if it is shown by joint appearance which is found in both
374
Constitutions is the authorized body who combat the arguments in favour of custody.
disputes the arrest, in both cases the judge has For this reason, we consider that the principle
the exclusive jurisdiction. Under these of equality of arms between the prosecution
conditions there are no problems regarding its and the defence is breached in case the
independence from the executive or from the advocate is denied the access to file
party or his impartiality on the settlement of documents, which are critical to the solution
arrest proposal. In the original version of both of arrest, while the prosecutor has the access
Constitutions it was not specified that the to them. This does not mean that some of the
judge was the sole authority entitled to information collected and samples taken
dispute the arrest, this task, according to the during criminal proceedings can not be kept
Criminal Procedure Code, being ordered by secret to prevent the defendant to alter or
the prosecutor. But then, taking into account destroy evidence and to influence the course
the ECHR jurisprudence[14] in accordance of prosecution. The accused and his advocate
with the prosecutor did not fall within the must know only about the evidence, which is
specific judiciary requirements, because of his related to the arrest, otherwise the defendant
hierarchical subordination and lack of right to defence gets an illusory nature.
impartiality due to his accusers function Another guarantee concerning the
exercised by performing his duties, so, as a right to liberty and security provided in both
result, both Constitutions were expressly Constitutions is that the accused detained or
provided with the exclusive authorization of a arrested shall be promptly informed of the
judge to dispute the custody. reasons of his deprivation of liberty, in the
Another common issue that is presence of a defender. However, the accused
reflected in both Constitutions is the one must be notified of its accusation in the
which provides that the accused has the right shortest time. The failure of communicating
to be assisted by an advocate or a public the factual and legal grounds upon which
defender. Its right of defence in these defendant's deprivation of liberty would be
circumstances is expressly provided for in likely to create the impression of arbitrariness
Criminal Procedure Codes of Romania and in the measure which would make impossible
Moldova, but these rules come as a the challenge to verify the legality and merits
constitutional principle of ensuring the right of arresting disposition.
to defence. An important safeguard to protect The Constitutions and secondary
the right to liberty and security results from legislation of the two states provide some
the fact that legal assistance through a lawyer safeguards for the deprived person of his right
must be effective. Thus, the legal assistance to liberty and security and this deprivation
must have a practical and effective character, can be done only with strict observation of
resulting in communication between the these laws. However, at both the
accused and his advocate, their ability to constitutional and legal level the accused it is
make contact and to support the accused brought new means through which the
interests by the advocate. From this legality and validity of his deprivation of
perspective, the issue of confidentiality of liberty is a subject to be reviewed by a higher
communication between the accused and court. In this respect, both Constitutions
counsel appears to be particularly important. provide the possibility that the accused person
This right protects the open communication who has been taken into arrest may appeal,
between the accused and advocate, and the which is judged by a higher court than which
confidentiality of this communication is an ordered the measure.[16]
important protection for exercising the right We made a review of the issues,
to defence.[15] which represent a statutory instrument of the
An important consequence of right to liberty and security in both
protecting the right to defence is to allow the Constitutions, but between them there are
access of the accused and its advocate to his some differences regarding the period for
case file. If they would not have the access to which preventive custody may be ordered and
the case file, they could not effectively its maximum length.
375
Depriving a person of the right to Another aspect regulated differently in

liberty and security, before being definitively both Constitutions is regarding the maximum
convicted, may only be temporary, limited in duration of arrest. The Romanian Constitution
time and justified by various reasons such as stipulates that in the prosecution phase the
to protect society and for the proper conduct arrest may be extended by 30 days, the
of trial. The right of liberty and security may maximum it is necessary not to exceed a
be limited and violated in an unacceptable reasonable time and no more than 180
manner if the accused would be arrested on an days.[19] In the trial phase of the criminal
indefinite and unlimited period of time, and process the Constitution does not provide a
his deprivation of liberty need not be a subject maximum period of the arrest.[20] We
to regular monitoring. Continued detention is consider that the analysed constitutional text
justified only if there are evidences that the set the maximum duration of arrest only for
general interest of society could be criminal prosecution stage, without its
endangered by allowing the accused at large, provision being complemented by that of the
which supersede the rules of the presumption Convention, which states that detention
of innocence and his right to liberty and should have a reasonable duration until the
security. pronouncement of the first court. The
In this respect, the article 23 constitutional text is not interpretable one, but
paragraph 5 of the Romanian Constitution it simply set a maximum duration of arrest
stipulates that, during prosecution, arrest may only for the prosecution stage and not for the
be ordered no more 30 days. In the trial phase trial phase, being, thus, in contradiction with
there is a different regulation, which the European’s Court rule concerning the
stipulates that the court has the obligation to reasonable time of arrest.
verify periodically, but not later than 60 days, The Moldavian Constitution provides
the legality validity of the arrest.[17] the possibility to extend the preventive arrest
Therefore the Constitution of Romania only by judge or by court for a period
includes a regulation and a different exceeding 30 days, but the total duration of
maximum length of arrest, as the process is the deprivation of liberty may not exceed 12
currently under criminal investigation or trial. months. The analysed constitutional text
After issuing the indictment and court’s establishes, just like the Romanian
referral, the need to maintain the arrest is Constitution regarding the prosecution phase,
verified at bigger intervals of time, which is the need for regular checking of arrest from
necessary to ensure a smooth conduct of the 30 to 30 days, which can be extended only for
trial. a limited time. The Constitution also provides
The article 25 paragraph 4 of the for a maximum period of preventive
Constitution of the Republic of Moldova detention, which is 1 year.
stipulates a maximum period of 30 days for In the Criminal Procedure Code it is
which may be ordered the preventive custody, established a difference between prosecution
without making any distinction between and trial phase of the process, showing that
criminal prosecution stage of the process and the arrest may be extended only in
the trial stage. However, the Criminal exceptional cases, up to 6 months and 12
Procedure Code provides different periods of months depending on the punishment limits
time for criminal prosecution and trial phase, provided by the incriminating text[21] in the
which is a maximum period of 30 days in the first of both phases of the trial. In this phase it
first case and a maximum duration of 90 days is also provided a maximum duration of four
in the second case.[18] However, the months of deprivation of liberty in case the
interpretation of the analysed constitutional defendant is a minor.[22] For the trial phase
text could lead to the conclusion that the in the first court it is similarly provided a
maximum duration for which preventive maximum period of arrest of 6 or 12 months
custody may be ordered is applicable also in without further distinguishing between the
trial phase, not only in the prosecution. major and minor defendants. With reference
to the legal text that sets the terms for the first
376
court trial, it is established the maximum exceed a reasonable limit as provided by the
duration of deprivation of liberty in the appeal Convention, which imposes a fixed maximum
phase of criminal trial. For both phases of period of time arrest, but only a reasonable
criminal trial – first court and appeal - the period of deprivation of liberty, which
maximum time of arrest, which was specifically is considered in the each case,
mentioned above, are not absolute, providing after the concrete conditions existing in
for the possibility of their extension in question.[24]
exceptional cases, without any upper limit In another variation, we consider that
being set. at the constitutional level would be sufficient
We consider that establishing these the principle which states that the deprivation
maximum limits of imprisonment for criminal of liberty of the defendant shall have a
prosecution stage and then to first court and reasonable time, other aspects will be covered
on appeal are contrary to Constitution. The by special law.
constitutional text is not susceptible of A similar rule regarding the necessity
different interpretation and imposes a of a reasonable time of arrest in the trial phase
maximum time of 12 months of deprivation emerges from the article 5 paragraph 3 of
of liberty without making a distinction ECHR, which provides that the
between the trial phases mentioned above. reasonableness of the detention period should
This text is not interpretable, it stating be considered in each case, as its particular
unequivocally that the duration of the arrest circumstances.[25] Thus, the European Court
may be extended maximum to 12 months. Its ruled that holding the accused only on referral
literal interpretation leads to such a to the court proceedings did not constitute a
conclusion, so there is no longer need for a legal basis for continuing custody.[26] Also
new way of interpretation, but on the other to determine the duration of the arrest and its
hand a constitutional interpretation, which reasonable character, is taken into account,
concerns only the time of deprivation of unlike the rules of the Constitution of
liberty during the prosecution phase, violates Romania and Moldova, the period between
the principle which stipulates that criminal the time of the custody and the first
laws must be interpreted strictly when they conviction by court, after this time the
are unfavourable for the defendant.[23] accused is being in the execution of the
However, it would not be appropriate sentence that was imposed.[27]
a setting of a maximum term of deprivation of As the previously shown it emerges
liberty by the reflection of constitutional rules that both Constitutions provide a number of
in Criminal Procedure Code, but exactly the safeguards to protect the right to liberty and
opposite by changing the Constitution and security, consisting in specifying the bodies,
establishing a maximum period of preventive which are authorised to dispute such a
arrest under the criminal procedure rules. measure, guaranteeing the right of the
Regarding the regulation of the maximum defence, the possibility of pursuing legal
duration of deprivation of liberty in the remedies against the act ordering the
Constitution, we think that this is a stiff and deprivation of liberty, the necessity of regular
formal one. Fixed term of current version is a checking of the grounds that gave rise to the
rigid regulation, which may adversely affect disposition of the measure. They further
the conduct of criminal proceedings (when it provide, however, another basic principle
is particularly complex or parties involved governing custodial preventive measures,
contribute to its extension) and knows an which provides that, once the reasons for the
extension leading to the mandatory release of deprivation of liberty disappeared it is
the accused, given the fixed period noted on required the release of the accused
the maximum duration of custody. On the immediately. The constitutional text
other hand this fixed term may have and a establishes practically an obligation, covering
reverse effect, which means that the duration both the judiciary to decide on deprivation of
of arrest, must be placed in it, but compared liberty and enforcement bodies, who
with the actual situation existing in question, performing the deprivation of liberty, but they
377
are also obliged to release the arrested analysis and the pronunciation on the arrest
accused in case the court ordered the release proposal.
[11] See in this regard A. Ciobanu-Dordea, G. Mazilu,
or the time of the measure has expired. M. Selegean., Articolul5 Dreptul la libertate şi
One last point of differentiation siguranta în Drepturi şi libertati fundamentale în
between the two Constitutions is that the jurisprudenta Curtii Europene a Drepturilor
Romanian Constitution gives the accused the Omului,, by D. Bogdan, M. Selegean others,
opportunity to request the provisional release Publishing All Beck, Bucharest 2005, pg. 120.
[12] See in this regard G. Iancu, work cited, pg. 125.
under judicial control or on bail, on the other [13] See in this respect S. Kahane, Masurile preventive
hand the Constitution of the Republic of şi alte masuri procesuale din Explicatii teoretice
Moldova does not have such provision, but it ale Codului de procedura penala, partea generala,
can be found in the special law.[28] Romanian Academy Publishing House, by V.
Dongoroz etc., vol V, pg. 321.
[14] See in this respect the European Court of Human
Endnotes:
Rights Case Pantea vs. Romania paragraph no.
238, Case Niedbala vs. Poland paragraph no. 51,
[1] See in this regard Offenses Code of the Republic of etc..
Moldova, no. 218-XVI from 24.10.2008, published [15] In the case Castravet vs. Moldova the European
in Official Gazette no. 3-6/15 of 01/16/2009. Court of Human Rights found a violation of article
[2] See in this respect C. Bîrsan, Conventia europeana 5 paragraph 4 of European Convention through
a drepturilor omului, Comentariu pe articole, the infringement of the right to defence because of
volume I, , Drepturi şi libertati, All Beck the defendant’s inability to talk directly with his
Publishing House, Bucharest 2005, p. 446. advocate about relevant aspects of the defence
[3] See in this regard I. Muraru S. Tanasescu without being separated by a pane of glass.
Constitutia Romaniei revizuita comentarii şi [16] In this regard we can observe a questionable
explicaţi, Editura All Beck, Bucharest 2004, p. 40- wording in the Moldavian Constitution shows that
41, for similar definitions Ghe. Iancu, Drepturile the legality of the mandate may lodge appeal, the
şi indatoririle fundamentale in Romania, Ed All act under appeal is in fact the decision court by
Beck, Bucharest 2003, p. 122-123, A. Crisu, which the arrest was ordered.
Libertatea individuala, în Constitutia Romaniei [17] In the Romanian Criminal Procedure Code it is
Comentariu pe articole, I. Muraru E. S. present another check the prevention that occurs
Tanasescu, etc., Ed C.H. Beck, Bucharest, 2008, after the issuance of the indictment on the receipt
pg. 213-214 . of the file by the competent court within 48 hours
[4] See European Court of Human Rights, Case Riera of referral.
Blume and others vs. Spain, paragraphs 14 and [18] See in this respect article 186 paragraph 5 of the
26. Criminal Procedure Code of the Republic of
[5] C. Barsan, work cited, pg.18. Moldova.
[6] In an isolated case in the European Court it was [19] As shown in theory these terms are substantial,
decided that the period of domiciliary search may maximum and legal, first of them being variable
be considered as a deprivation of liberty. In the and the second one is fixed – see in this regard I.
examined case, the accused was detained by C. Dumitrescu Consideratii in legatura cu durata
police, and after a while because its cooperation masurii arestarii preventive, published in Law no.
he was loosened during the search but he 3/2008, pg.208.
remained under police control over the entire [20] See in this respect I. C. Dumitrescu, work cited,
period. See in this regard because Berktay vs.. pg. 211-213.
Turkey, D. Bogdan, Arestarea preventiva şi [21] The differentiation is made according to the limits
detentia in jurisprudenta CEDO Hamangiu of punishment prescribed by law for that offense,
Publishing, Bucharest, 2008, pg. 16-17. up to 15 years and more than 15 years.
[7] See in this respect article 27 of the Romanian [22] Under the Criminal Procedure Code of the
Constitution and article 29 of the Constitution of Republic of Moldova, the accused shall be called
the Republic of Moldova. the charged person throughout the criminal phase,
[8] See in this respect A. Crisu., work cited, pg. 217. acquiring the status of the defendant with the court
[9] See the article 17 section 2 of the Spanish referral.
Constitution. [23] Adverse criminal laws must be interpreted strictly
[10] We do not go into detail in this study in which the and those established for the offender should be
preventive measures are consider only through the interpreted widely. See in this respect N. Giurgiu
constitutional perspective, but the Romanian Drept penal general, Sunset Publishing, 1997,
legislation also provides the possibility of Iasi, pg.72.
attacking separately the order of detention, which [24] See this respect C. Bîrsan, work cited, pg. 374-
is an unreasonable situation which can result in a 377, M. Udroiu, O. Predescu, Protection of
greater extension of the period preceding the European Human Rights and Criminal Romanian
378
process,. C.H. Beck Publishing, Bucharest, 2008, [16] Udroiu, M, Predescu, O, 2008, Protecţia europeană
pg. 487 etc. a drepturilor omului şi procesul penal roman,
[25] See in this respect C. Bîrsan, work cited., pg. 360, Bucharest, C.H. Beck publisher
M. Udroiu, O. Predescu, work cited , pg. 227.
[26] See in this respect the European Court of Human
Rights, Case Jecius vs. Lithuania, paragraph no.
63.
[27] See in this respect the provisions of article 5
paragraph 1 letter a of the Convention.
[28] See in this respect articles 190-192 of the Criminal
Procedure Code of the Republic of Moldova.
Bibliography:
[1] Antoniu, G., Dobrescu, E., Dianu, T., Stroe, Gh.,
Avrigeanu, T., 2003, Reforma legislaţiei penale,
Bucharest, Romanian Academy Publishing House
publisher;
[2] Birsan, C, 2005, Convenţia Europeană a
Drepturilor Omului. Comentarii pe articole. Vol. I
Drepturi şi Libertăţi, Bucharest, All Beck
publisher;
[3] Călinoiu, C, Duculescu, V, 2008, Drept
Constitutional European, Bucharest, Lumina Lex
publisher;
[4] Ciobanu-Dordea, A, Mazilu, G, Selegean, M,
2005, Dreptul la Libertate şi Siguranţă din
Drepturi şi Libertăţi Fundamentale în
Jurisprudenţa Curţii Europene a Drepturilor
Omului, Bucharest, All Beck publisher;
[5] Chiriţă, R, 2007 Convenţia Europeană a
Drepturilor Omului, comentarii şi explicaţii,
volume I, Bucharest, C.H. Beck publisher;
[6] Dragos, B., 2008, Arestarea preventivă în
jurisprudenţa Curţii Europene a Drepturilor
Omului, Bucharest, Hamangiu publisher;
[7] Duculescu, V, 2008, Protecţia Juridică a
Drepturilor Omului, Bucharest, Lumina Lex
publisher;
[8] Iancu, Ghe., 2003 Drepturile şi îndatoririle
fundamentale în România, All Beck publisher,
Bucharest
[9] Muraru, I., Tănăsescu, S., Constituţia României
revizuită comentarii şi explicaţii, 2004 All Beck
publisher, Bucharest
[10] I. Muraru, E.S. Tănăsescu ş.a., 2008 Libertatea
individuală, în Constituţia României Comentariu
pe articole, C.H. Beck publisher, Bucharest;
[11] Bogdan, D., 2008, Arestarea preventivă şi detenţia
în jurisprudenţa CEDO, Hamangiu publisher,
Bucharest
[12] Selejan Guţan, B, 2004, Protecţia europeană a
drepturilor omului, Bucharest, All Beck publisher;
[13] Ştefan, T, Andreşan-Grigoriu, B, 2007, Drept
Comunitar, Bucureţti,C.H. Beck publisher;
[14] Ţuculeanu, A, 2003, Detenţia, reţinerea, arestarea
preventivă, obligarea de a nu părăsi localitatea,
Bucharest, Lumina Lex publisher;
[15] Udroiu, M, Predescu, O, 2008, Cazuri de privare
de libertate a unei persoane în jurisprudenţa Curţii
Europene a Drepturilor Omului, Bucharest, Law
no.2,
379
IMPACT ON CITIZENS QUALITY OF PUBLIC SERVICES
PhD Student Constantin PITU

University of „Al.I.Cuza” Iasi, e-mail: pituconstantin@yahoo.com
PhD Student Camelia SCRIPNICIUC-LEFTER
University of „Al.I.Cuza” Iasi, e-mail: camilefter@yahoo.com
Abstract: Today, concrete forms through which public authority will provide a public service based on a few items
aimed at identifying and satisfying a general interest service authorized by a public authority to implement it directly or
indirectly.
Keywords: public sector, monopoly market, social services, punctuality, Security service provider
JEL: M31
set of legal procedures and laws which are

Introduction subject to public service.
In this context, public service can be
Public services arose from the need to defined as a form of administrative action that
meet the needs of members of human assumes a public meeting a need of general
communities on: security, culture, interest. To identify a public service should
transportation, education, health. Definition follow [5]: if it was created by a public figure,
of public service requires to distinguish the whether the work is of general interest, the
two meanings of its [11] extent to which its leaders are appointed or
- Sensitive organs - which means the approved by public authority, if any control of
creator of public business constituted a body, the administration and whether public power
a legal person, public or private; prerogatives. It is not necessary that all these
- Meaning the material - which means indicators are favorable, a majority is
the work of its creator. sufficient to determine whether an activity is
School principal representatives of public service.
public service occurred in France 1900, Their characteristics are based mostly
Duguit L. Jeze A., Bonnard L and Rolland L. on the following elements: [16]
regarded public service as "work that rulers - Intangibility, it may not be tangible,
are obliged to make in the interests of the felt (eg education, culture);
governed" [6] that "the state is a set of public - Impossibility of storage;
services [1]. Starting from a series of - Heterogeneity, they are less uniform;
decisions of the French State Council and the - Failure to protect by patent. Services
Court of conflict, L. Rolland built systematic can not be patented, copying is very easy to
principles of public service in the following distinguish and could only be achieved on the
[11] brand image;
- Equal treatment of users; - Failure of property rights;
- Continuity of service; - Difficulty in assessing the sale price.
- Adaptability to public service. Strong heterogeneity of human intervention
French jurisprudence that emerged and services are difficult to price.
was that, besides the Court of conflicting Noteworthy is that, currently, we are
decisions, defining elements, these specific witnessing a reduction in the number of
public service consisting of an organic elements that define the public service, while
element based on a combination of staff and its complex developments influenced by
means that one person uses them in public a technical progress, users need to protect the
well-defined purpose, a material element environment and ensure high quality
going on the idea that public service is an standards.
activity of interest provided by public The current public service category
administration and a legal element, namely a included specific [2]: national defense,
security of citizens (eg the General and community police. Framework Act 2006
Inspectorate of Police Services), education, nr.195 decentralization of May 22, 2006 was
public health, diplomatic service, intelligence, published in the Official nr.453 / May 25,
culture (public libraries, cultural institutions, 2006 and established principles, rules and
etc..) social services, public sanitation institutional framework governing the
services, pest control, street lighting, air administrative and financial decentralization.
transport, railway transportation, government The ultimate goal of decentralization
services institutions (municipalities, of local government sector is to be more
prefectures, county councils, ministries, flexible and people and local development.
institutions subordinated to government), etc.. This concept of local development aimed at
Some of them (eg air transport, railway) are "economic prosperity and social welfare by
industrial and commercial public services. creating a favorable business environment,
Depending on the social, public services may while community integration of vulnerable
be: vital, or "general interest" (distribution of groups, using endogenous resources and
drinking water, electricity, heat and gas, private sector development. The services they
sewerage and wastewater treatment, urban provide, Community police may contribute to
passenger transport, postal services, maintaining confidence in the safety and the
administration and maintenance housing and environment in which economic and social
public sector, social housing, public lighting, activities.
urban real-estate cadastre, etc..) and voluntary Services provided by government
(land of amusement parks, information should be oriented company to customers and
centers, etc.).. for this reason, OECD countries have
established a convention on receptivity to
1. Legislative aspects of local public them, transposing the Convention following
services in Romania orientation:
Transparency - customers need to
On the basis of constitutional know how government works, which are
principles to local government passed the constraints on the actions of public officials,
Law nr.61/1991 [17] which states that public who is responsible and what is responsible
administration in territorial-administrative and what are the remedies if things go wrong;
units is based on the principles of local Customer participation - they should
autonomy, decentralization aimed at public not be treated merely as passive recipients of
services, eligibility consulting local services and administration is needed to
authorities and citizens interest in local issues. improve business involvement;
Development of local public services was Customer satisfaction - customers
boosted by the adoption of legislation on local should be offered services that meet their
public finance nr.189/1998 contributed to specific situations. If the service is flexible,
solving the shortcomings: insufficient adapted to clients when necessary and can not
financial resources compared to expenditure be abolished;
need, failures in managing local budgets Accessibility - Customer must be
caused by delay in approving the state budget given easy access to public institutions at
and transfer amounts broken, inappropriate convenient hours and information in an
criteria for the conduct of effective and appropriate language.
efficient quality management in public All these aspects of public
services, lack of specialized personnel by administration reform in Romania have been
which government to fulfill its tasks. implemented or are underway, only that the
A new law was needed in 2001, Local results are not as effective as those of theory
Public Administration Law no. 215/2001 prognosis. The challenge would be to know:
[18], complementing earlier law. This led to What does not work in the administrative
deeper decentralization of public services, apparatus and prevent the delivery of quality
local authorities received new responsibilities services? The pages are pre aim at finding
in many areas including professional services answers to this question.
381
2. Quality of public services 5. equality and legality,

6. privacy
Service quality is an important aspect 7. consistency and confidence
of performance in any organization in the 8. Safety and Security
public sector. In the broadest sense can be 9. provided and prestige
defined by quality of opportunity or 10. Flexibility - opportunity (to adapt
suitability. Opportunity is related to the to the needs of citizens)
effectiveness of the program involves the All these values expresses the
recognition that different customers may have relationship between provider and client,
multiple needs and may consider some which varies from country to country
aspects of the service more important than depending on cultural and political context.
others. This implies the need to offer variety Some high values such as equality and
of services and choice. legality have priority before others.
Reality shows that government work We detail these components of quality
is costing a lot on citizens in U.S. spending is because they are known as conditions
40% of taxable income for public services, necessary for the managerial aspects of
and why people want these services to be service provision. Such concerns punctuality
managed properly. Observing efficiency of in the service waiting time you need to invest
private initiative, it is desirable that public a client to receive a service aiming at
institutions to obtain comparable results. reduction. Quantity and volume of service
Many critical public services, which refers to the frequency of his achievement in
purchases and practices deemed to be order to achieve correlation. Accessibility
irrational, or lack of needed services, or refers to the distance traveled to the nearest
perversion of administrative functions by point of rendering of services aiming at
powerful interest groups. A number of effective distances traveled and the queues for
complaints occur because [8] customers wishing to pay fees or to obtain
- Government institutions charged information from one or more counters /
outrageous prices for ordinary things, and the offices. For the same accessibility, efficient
government contracts with larger amounts means of information sources and merging
than necessary; into one place so that the client be able to
- Public institutions are often slow and obtain all the responses from one office / one
inflexible because of excessive bureaucracy stop without having to spend time with their
and rules; discovery in different areas of information. In
- Public employees are accused of this way it aims at reducing costs while
incompetence or wrong behavior; increasing service quality. Accessibility may
- Increase the waiting time for solving involve considerations of equity dealing, in
a problem; general, equal access to information and
- There is inadequate communication services to people in rural areas or
creates confusion. disadvantaged social groups. Innovative use
Due to all these problems is clear that of information technology can facilitate
public service must improve their image and access to file for customers of territorially
work to increase citizens' confidence and dispersed.
satisfaction. Availability and continuity of services
So the quality of public services is focused on issues concerning the frequency of
linked to their impact on citizens. This is interruption providing certain services (water
defined first by the quality of service supply, safety and security, operation of
provision and ultimately by their results, telecommunication networks, etc..) Due to
referring to components such as [8] failures and how long it takes to service
1. punctuality, recovery.
2. accuracy of information submitted, Accuracy of transmission / receipt of
3. availability information is very important for customers in
4. competitiveness and simplicity, terms of time Knowledge of rights and their
382
obligations, to how to fill in the forms most do not do this, and the success of those
required for various purposes, the amount / who still carry something is still quite low.
fair tax payment. Quality service is the result of
Security service provider which aims comparison between what the citizens wanted
to provide risk factor to cause an accident or and what administrative institution received
security level of the various operations or the extent of service provided meets
(police, intelligence, the act, medical, expectations. In essence, it concerns the gap
transportation, etc.). between citizen expectations and perceptions
Appropriateness and effectiveness of of service quality by using the service. In
the concerns the degree to which a public other words, it is the ratio between the
service needs to be satisfied customers. This benefits actually obtained when using the
can be measured by market research on given service and the benefits expected.
satisfaction of customers, finding possible To illustrate, note that municipalities,
disturbances and finding new solutions. through specialized departments as managers
Important qualitative factors that community aim to provide quality services to
formalization of transactions aimed at public customers who pay from public money. In
institutions should be simple and enjoyable. these circumstances they are required to
Agreeableness may be disclosed by the client continuously monitor the quality of
is treated with courtesy by the degree of contracted services on behalf of the
comfort and cleanliness of public offices or community service. Yet rarely citizen, acting
public spaces where services are offered. directly to the consumer is asked about his
Simplicity is a very important aspect of level of satisfaction. Monitoring system
quality public services that it seeks [11] involving moving people, usually the default.
- Removing barriers irrelevant in such Hall can thus exert a more effective and
noianelor government forms to fill in the objective scrutiny of public services, low cost
setting up of a company or solving a case; recording, balancing the work of volunteers
- Easy to read and understand forms; from among citizens, their lack of resources.
- Acceptance statements for customers In turn, elected officials become more
in certain situations; responsive and more accountable to the needs
- Administration regulations and and expectations, types of public services
statutes in a flexible manner; provided and quality.
- Simplification of tax programs, laws; Several times it happens that the
- Easier and more organized government authorities try to convince
management laws. citizens to claim their level of quality and
These services may be individual quantity is consistent with what they provide.
components of each subject, the consideration There are therefore situations where, if the
of punctuality and opportunity constitute a result does not meet the exigency citizen
good example. Importance of some of these service, then this case is charged by the
components may vary from one service to institution as a problem customer whose
another. For example, punctuality is very expectations are "inappropriate."
important for police services, the firefighters To assess the quality of public
of the emergency, while in other cases it does services, citizens take into account the
not matter too much for services such as following factors [7]
planning. - Quality of information materials
Where quality is poor public services, available on the characteristics of public
although authorities in the field have a services offered by state institutions;
monopoly, may put pressure to improve the - Past experiences with the same type
performance of administrative bodies. In this of public service providers;
respect, dissatisfied citizens can call on - Information received from other
elected representatives to intervene through recipients of that service;
various discussions and negotiations. In fact, - Features that provide public service
civil servants;
383
- Environments in which the premises therefore coordinate the institutions that

is provided and enjoyed the service. provide services under their own internal
Increasing quality of public services design. If they do not meet the expectations of
may be provided by: citizens if the situation is perceived, as
1. Competitiveness: the client already highlighted as a problem customer,
expresses his wishes by free choice as far as whose expectations are "inappropriate."
possible, and the organization must respond
to them as efficiently. Bibliography:
2. Total Quality Management (TQM)
focuses on all aspects of quality production [1] Bonnard in A. de Laubadere, J.C.Venezia,
and service provision; Y.Gaudement, “Traite de droit administrativ”,
Librairie generale de droit et de la jurisprudence,
3. Decentralization of decision making E.J.A., Paris, 1996
that focuses on leasing or delegate discretion [2] Bonnet F., “Management de l’administration”,
on management services provider itself a Editure Lyon, Paris, 1993
public service. Mostly increasing autonomy [3] Colesca S.E., “Internet în administraţia publică”,
increase performance. Ed.Economică, Bucureşti, 2002
[4] Coman F. „Politica de comunicare exterioară a
4. Division between the functions of colectivităţilor locale”, Editura Economică,
strategic services. Bucureşti, 2000
5. Scale experimentation of new [5] Dincă D., “Servicii publice şi dezvoltare locală”,
methods of service by applying pilot projects. Editura Lumina Lex, Bucureşti, 2008
In the case of public sector services [6] Duguit L., “Revue du droit public et de la science
politique en France”, Paris, 1907
there is a feature when it comes to talking [7] Filip P., “Managementul administraţiei publice
about performance and quality default locale – O abordare proactivă”, Editura
because there is "imperfect competition", and Economică, Bucureşti, 2007
sometimes there is no such competition, very [8] Kotler Ph., Lee N., „Marketing în sectorul public”,
necessary, stimulating and challenging. The Editura Meteor Press, Bucureşti, 2008
[9] Kotler Ph., „Managementul Marketingului”,
service provider or local government often Editura Teora, Bucureşti, 2008
own monopoly and has had no incentive to [10] Lambin J.J., Chumpitaz R.S., Moerloose C.,
improve services as long as all customers „Marketing strategiqué et operationnel.Du
need it, regardless of quality. It is the case of marketing á l’orientation marché, 6-éme edition
those who provide gas, water, even on crime Dunod, Paris, 2005
[11] Matei L.,”Servicii publice”, Editura Economică,
police services, crime and tax evasion, or Bucureşti, 2004
those who provide oil or electricity, etc.. [12] Maxim E., „Marketing”, Editura Sedcom Libris,
which in many cases they sell at prices they Iaşi, 2003
carried aberrant or on political considerations, [13] McDougall G., Levesque T., :The measurement of
resulting in a suspicion and a great service quality: some methodology issues, 2-eme
Seminaire Internationale de Recherché en
dissatisfaction among the population (see the Management des Activites de Service, 411-30,
case of Omar Haise "escaped" the Romanian 1992
judiciary and police as the "miracle"). The [14] Munteanu C., Maxim E., Sasu C., Prutianu Şt, ş.a.
situation is much worse when the authorities – “Marketing, principii, practici şi orizonturi”,
have no idea about people's perceptions on Editura Sedcom Libris, Iaşi,2008
[15] Munteanu V., „Marketing public”, Editura
service quality. Sedcom Libris, Iaşi, 2006
[16] Zaiţ Adriana, „Marketingul serviciilor”, Editura
Conclusions: Sedcom Libris, Iaşi, 2004
[17] *** M.O. nr.169 din 16 august 1991
So once again highlighted features for [18] *** M.O. nr.204 din 23 aprilie 2001
[19] *** M.O. nr.214 din 23 aprile 2001
public services means that service provider is [20] *** www.politiaromana.ro, accesată la data de 22
in a monopoly market, which is why prices aprilie 2010
have control over their training, the quality of [21] *** www.politia-info.ro, accesată la data de 20
services, both within the law allows [7]. aprilie 2010
Leaders of public organizations consider that
they know best what people want and should
384
PARTNER ABUSE WITHIN THE BANK IN CREDIT AGREEMENT
Scientific coordinator: lector univ. dr. Nemţoi Gabriela

Saftiu Cristina – Student –“Ştefan cel Mare” University Suceava – România saftiu_cristina@yahoo.com
Ştefănoaia Mariana – Student –“Ştefan cel Mare” University Suceava – România stefanoaia.mariana@yahoo.com
Micu-Drescanu Vlad – Student –“Ştefan cel Mare” University Suceava – România micuvlad@ymail.com
Abstract: In the current economic crisis the evolution of relations between credit institutions and consumers should
form between the two partners, based on a common objective ruled legally by the principle of contractual freedom in
true sense. Changes to the national banking system demonstrate accession and progress towards creating an EU
internal market, thereby assuring a consistent regulatory framework at EU level. In the area of consumer protection, it
apparently seems, at least formally, we have aligned with European legislation in this area, although the subject is still
highly controversial and disputed in legal and banking environment in Romania, a fact proved by the large number of
litigation filed against credit institutions.
In understanding the terms of the credit agreement we must go on the premise that although the law does not
qualify this type as being an adhesion contract, practice shows that all banks make credit available to the applicant a
standard form contract whose terms can not be negotiated. Therefore, although there is no legal provision to that effect,
taking advantage of the partial absence of regulation, as well as strong demand from the market, banks have quietly
turned a credit contract into an adhesion contract, whose terms can’t be negotiated by the prospective borrower with
the bank.
Keywords: abuse, credit agreement, interest, abusive commission, litigation filed against banks
JEL Classification: K12 Contract Law

K42 Illegal Behavior and the Enforcement of Law
Introduction loan. But these precautions are often taken to

The Directive of the European extremes. The idea of protecting the interests
Commission and European Parliament of depositors infringes the rights of people
no.48/2008 of 23 April 2008 on credit due to unfair charges, which tend, in some
agreements for consumers, repealing Council cases, to escalate the legal limits.
Directive 87/102/EEC published in Official In understanding the terms of credit
Journal of the European Union No. L we must go on the premise that although the
series. 133 of 22 May 2008, has been law does not qualify it as being an adhesion
transposed into national legislation of contract, the practice shows that all banks
Romania, as EU member state, by issuing and make credit available to the applicant with a
publicizing it in the Official Gazette of standard form contract, whose terms can not
Romania no. 389 of 11 June 2010 the be negotiated.
Government Emergency Ordinance Therefore, although there is no legal
no. 50/2010. provision to that effect, taking advantage of
Without challenging the principle of the partial absence of regulation, as well as
contractual freedom, fully applicable in strong demand from the market, banks have
relation to credit, most often, in practice it quietly turned a credit contract into an
happens that the banking partner initiates adhesion contract, whose terms can not be
certain unfair terms. negotiated by the prospective borrower with
This is the main premise of bank the bank.
credit clause from contracts, which may be In the context of tacit processing
deemed manifestly disadvantageous to the credit agreements in contracts of adhesion, a
borrower and are accepted by him by signing major problem is the existence, in its credit
the credit agreement or under the rule of agreements, clauses that can be considered
necessity or out of ignorance. abusive or highly disadvantageous to the
Banks use the money from their borrower. Unfair contract terms are those
depositors in lending business, depositors that which were not negotiated directly with the
must be protected from the risk of losing their borrower and which, by themselves or
savings by giving the bank a so-called bad together with other provisions of the contract,
created at the expense of the borrower and Interest penalty at the law limit
contrary to the requirements of good faith, a
significant imbalance between the rights and Another clause "consented" by debtors
obligations of the parties. talks abut the payment of penalty interest,
A first category of such terms shall payable when the debtor does not fulfill his
refer to the bank to modify unilaterally the obligation to pay. Some banks place a very
interest rate. If current regulations require high penalty interest rate (which can go up to
banks to establish an obligation in the credit 20%), the unpaid interest on time. This
interest rate payable by the borrower, the process, called anatocism in legal doctrine
bank has the possibility to change this rate; (interest rate applied to the existing interest
unfortunately there is no provision about the rate), was prohibited by Law. 313/1879 for
maximum percentage by which this can be the cancellation of the penalty clause in any
increased, and the events that may increase its contracts and then apparently allowed by the
rate. It recognizes that changes will be made Government Ordinance no. 9 / 2000 on the
if only EURIBOR changes. legal interest for monetary obligations,
From this point of view, we're in a unfortunately the maximum amount of such
field of freedom of contract action, so that interest was not established. Taking
banks "are bound to" protect their interests, advantage of the permissive legislation, but
even if it means violating the principle of also "freedom of contract", the banks set a
"good faith" that should govern the legal penalty interest rate that usually exceeds the
relationship between the two parties. interest rate established for the repayment of
Therefore, banks have such clauses inserted capital.
in contracts: "If any event occurs that makes A delicate problem posed by the
the benchmark interest unavailable (...), bank obligation assumed or, more correctly,
interest rate will be replaced with a fixed imputed to the borrower who is obligated to
rate bank at its sole discretion "or" the Bank have a life insurance policy valid for the
has the right to change the interest rate on the duration of the credit agreement at an amount
cost of their own funding resources.” equal to the amount of credit which is
Also, informing the borrower about transferred into the bank. This clause,
the change of an essential element of the ubiquitous in credit agreements of practice, is
contract, such as interest rate, doesn’t take, in "delicate" because it is not likely to cover
most cases, the form stipulated in the either a specified or ascertainable risk, in light
contract. Thus, although any changes to the of current Romanian civil law, and in case of
contractual provisions should be written down death of the debtor, the bank has on hand
(addendum to the contract signed by both sufficient contractual guarantees to recover
parties), the borrower "accepts" that the amounts due under this credit agreement.
change in interest rates would be lead to
knowledge "by publishing it on the bank's The abuse of a dominant position
website or by posting it at bank branches ",
and if you do not accept the new rate" the It is the dominant agent or agency the
borrower commits to return within five days, one that carries on a competitive market, a
all amounts due under the contract, namely role which is forcing competitors to comply
capital, bank interest and unearned fees. In with the attitude of the holder of this
this case we can talk about abuse in law from position. The dominant position is related to a
banks. The principle of compulsory labor given market and is characterized by three
contract (art. 969 Civil Code) can not be parameters: 1) the specific of the market, 2)
talked to bank contracts for the very reasons the trader behavior and 3) the results obtained
outlined above, situations in which the bank by him.
assigned its right to unilaterally modify the Law 21/1996, the provisions of Article
contract. 6 prohibit the abuse of a dominant position by
one or more operators on the Romanian
market or a substantial part of it, through anti-
386
competitive practices which have as their rights, and the consumer should only have
object or may have the effect of prejudicing obligations, but each party has the correlative
or affecting consumers. rights and obligations and rights corollary is
Such abuse listed in Article 6 for no longer bank necessarily a sine qua non, the
example. (A) may consist in particular: debtor's loan obligations, as an individual.
a) To impose, directly or indirectly, Natural person, the consumer has legal
purchase or selling prices, tariffs and other rights and independent contractual rights,
unfair contract terms and refusing to deal with among which are included, the right to
certain suppliers or customers; negotiate the terms of bank credit, to the
b) Limiting production, markets or extent that they take into account the
technical development to the detriment of mandatory legal provisions protecting the
users or customers; interests of consumers.
c) Application to trading partners, the That being so, the fact is that the
dissimilar conditions to equivalent contract is a bilateral one and the bank loan
transactions, thereby placing some of them at agreement can not be any standard contract
a competitive disadvantage; and, even less a binding contract.
d) Conditioning the partners to accept The bilateral nature of bank credit
supplementary clauses; agreement is made only by the nature of the
e) Establishment of imports without contract and not by its essence.
competition offers and usual commercial or On the other hand, remember that the
technical negotiations for products and bank credit agreement, in addition to the fact
services that determine the general level of that it became bilateral (in nature), is the
prices and tariffs in the economy; necessary and mandatory for credit
f) The practice of charging excessive institutions and non-banking financial
prices or predatory pricing below cost in institutions, that it is created as an onerous
order to eliminate competitors or, export sales contract (the loan is granted, with interest
below cost of production, covering the payments, fees and consumer loan by the
differences by imposing increased domestic client).
consumer prices; The mandatory and onerous character
g) Operating state of economic of the bank credit agreement arises from the
dependency in which there is a customer or a fact that the active subject of this contract is
supplier requesting a contract with such an the credit institutions, and non-banking
agent or agents and that he does not have an financial institutions.
alternative solution under the same conditions They are established and organized in
also the breaking of the contractual terms of corporate legal forms, as legal
relationship solely because his partner refuses entities, joint stock companies, whose
to submit unjustified trading conditions. purpose and cause (legal) is the main profit,
It seems that nowadays, especially in therefore, applying in practice the principle of
relationship with consumers, banks have the specialty as the ability of using the legal
absolute right to refuse the negotiation of company.
contract terms only on the grounds that they We can easily conclude that by virtue
grant funds. of essentially bilateral character and
In such cases, banks must comply consideration of the bank loan contract, the
with European legislation and national individual consumer, as borrower has the
consumer protection, consisting of mandatory right to negotiate with the bank the addendum
rules; the contract recording technique must clauses, to ensure compliance with the
be based in behalf on a prudent bank subject, provisions of the credit agreement with those
diligent and somewhat friendly, obviously of the legislation applicable to consumer
within the law, to customers, thus avoiding protection, and other mandatory legal
any potential conflicts and disputes. provisions.
In the bank’s credit agreements with If the client does not agree with the
consumers, the bank isn’t only one that has addendum, he will start an electronic
387
correspondence with the representatives of Banks can not claim compensation

the branch / agency of the bank and the legal for early repayment when any of the
department of the central bank, trying to following: reimbursement was made
negotiate the terms of the addendum that following the execution of an insurance
violates the consumer protection legislation. contract is designed to ensure the risk of
default, the credit is granted as
Allowed Commissions "overdraft" repayment comes at a time when
the borrowing rate is not fixed.
According to Government Emergency Thus no compensation can not exceed
Ordinance 50/2010, for the loan, the lender the amount of interest the consumer would
may charge only: file analysis fee if the loan have paid in the period of repayment and the
was granted, credit administration fee current agreed date of termination of the credit.
account administrative fee, compensation for
early repayment, insurance costs, where Obligations of banks at the end of a credit
appropriate, penalties, and a single fee for agreement
services rendered to consumer demand. Thus,
new regulations prohibit the collection of case Banks must submit before signing a
assessment fee credit where credit is not new credit agreement on a standard form to
granted and a fee deposit and cash withdraw. all technical data of credit (APR, interest
So during the course of the credit calculation formula and the total amount to be
agreement, are prohibited: the increase of repaid), which will allow a transparent
fees, taxes, bank charges or any other contract comparison of tenders and banks choosing the
costs, except for costs imposed by most advantageous, said in a statement of the
legislation. But this provision is not National Authority for Consumer Protection
applicable to current account costs, since they (NACP).
must correspond to the actual costs of the For existing credit agreements, new
creditor, their coverage is limited and does legislation gives consumers the right to refuse
not lead to obtain additional income for them. cash charges for certain transactions that
It is also forbidden by law, the banks charge for the payment (payment of
introduction and imposition of new taxes, commission rate advance fee payment
fees, charges, bank charges or any other through an intermediary, etc..).
contract costs, excluding specific costs of Within 90 days from 21 June 2010,
additional services specifically requested by credit institutions are obliged by legislation to
the consumer, not provided in the contract send customers addenda amending existing
and not offered to consumers at date of its contracts. For any complaints relating to these
conclusion. These unexpected costs will be changes in existing contracts, the creditor
levied only on the basis of additional must be notified in writing, otherwise it is
documents accepted by the consumer, the presumed acquiescence.
costs imposed by legislation being exempted; NAPC warns that banks could send
Cash deposit of a fee for the loan current customers and offer credit to amend
repayments, whether the submission is made existing contracts but have no connection
by him or by another person; and a fee for with GEO. 50/2010, such as switching from
withdrawal of the credit for amounts drawn variable to fixed interest rate. Consumers are
on the loan repayments over the counter are not obliged to accept such offers, even if you
expressly prohibited. are offered a lower interest rate, the NAPC
For any change in the level of credit recommending follow market interest rates at
costs, according to the contractual terms, the that time to see how advantageous it is tender.
creditor is obliged to notify the consumer in From June 21, 2010, any provision of
writing or, at the behest of the consumer, the credit agreement relating to the
otherwise it established and approved by the reimbursement fee contravenes emergency
creditor and it will provide a new ordinance shall be null and void. The lender
amortization table / reimbursement schedule. must calculate the amount to be reimbursed
388
under the new legislation and to include only ways to control the behavior of the contract
the commissions accepted emergency concerned.
ordinance and not those existing credit in
agreement, 50/2010 questionable effects of Unfair terms in the lease
the ordinance, to act as interpretive positions
to each bank. In this case the commissions Unfortunately, the Romanian
that would be excluded, justified in law, may economy contracted in the landscape, there
reappear in the addendum that the borrower are far too many types of contracts include
requires the creditor banks, in various clauses that grace almost any part of good
formulations, such as signing the addendum faith would not have ever thought.
to only one equivalence commission rates that For example, the clause in the lease
the bank hid just to have a prosperous that, if the subject lease is stolen or
profit. (See BCR processes, Volksbank, etc.) irreparably damaged, and if the insurer -
elected by the landlord - goes bankrupt or
Unfair terms in contracts refuses to compensate the latter, the user will
be obliged within seven days of the event to
Abusive clauses have become a pay the full amount of property that is subject
constant presence in many contracts to contract and to pay all other damages
governing the legal relations between which lesser would cause them to this
economic agents or between them and incident.
consumers / end-customers. We note a Or, even if the user requires restricting
general tendency to abuse the law. the duration of the contract will not interest
Moral sense of 'players' market is no recalculation work.
longer seen as a virtue than the average small As a rule, "beneficiary" of an unfair
and exclusive, and some express declaration contract terms can not only choose between
of values often seems a sign of signing the contract or not, the latter
maladjustment. It is a methodical abuse, the hypothesis, it being unable to satisfy an
direct interest of the "actors", justifying any interest in a given period.
kind of conduct and the "culprit" has no As in French law and Romanian law,
longer any problems of conscience, he acts as the question of error committed by one who,
do many others. Thus, widespread abuse by his signature, enters into such a clause. It
neutralizes individual guilt. seems that between signing the contract and
A special form of abuse in relation to not completing, most often in ignorance, most
unfair contract cases is the imposition by the consumers - at a rate of about 85% - choose
party which has an advantageous position. the second solution.
Dangerous is the kind of contractual clause Also, a constant awareness seen in
found predominantly in type contracts, the these contracts is late unfair terms of content,
trader of services (telephony, banking, etc..) especially in connection with payment
and consumer must assume obligations difficulties or the occurrence of unexpected
clearly harmful to its interests. circumstances.
Abusive clause is rarely negotiable,
and can look at one of the following: Victims' of mobile operators
- Penalties for late payments higher
than those on the market; We note that an unfair term contract
- Hidden fees and interest in broad contains very few obligations on creditor and
and vague formulations; the debtor much more. An example would be
- Unfavorable conditions when trying some service contracts for mobile services,
to mediate a conflict related to contract which requires the recipient, if the unilateral
performance, etc.. termination of the contract, even after
It’s said that normally it would be an unfair reaching the minimum period prescribed in
means of defense against bad debtors and the offer chosen to pay a substantial sum for
each phone turned off.
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Often, promotions are obvious consent of the consumer, even if it may limit
advantages of fewer disadvantages than the express option is insufficient;
surrender before the deadline, but no - The consumer is obliged to submit
experience in marketing specialized to contractual terms which had no real
companies fail when they rely on the opportunity to get acquainted with the signing
attractiveness of a product at a time which, of the contract;
coupled with aggressive promotional - The consumer is required to fulfill
campaigns, changes the audience in a "victim their contractual obligations even in situations
safe." where the trader has not fulfilled his own.
Other unfair terms are those which:
Linguistic traps - Restrict or cancel the consumer's
right to claim compensation in cases where
Finally, note the illicit nature of unfair the trader fails to fulfill its contractual
terms, which tries to make the obligation in a obligations;
manner prejudicial apparent accordance with -Require the consumer to pay
the law, but end up creating true customer disproportionately large amounts if it fulfills
linguistic traps. its contractual obligations, compared with the
Based on the need to regulate those damage suffered by the trader;
situations concrete social, Romanian - Restrict or prohibit the consumer's
legislature, by Law 193/2000, as amended by right to finish the contract;
Law 65/2002, states that "a contractual - Prohibit the consumer to offset a
provision was not negotiated directly with the debt owed to the trader with a claim that he
consumer will be considered unfair if, by would have it the dealer;
itself or together with other provisions of the - Enabling the delivery price or the
contract, created at the expense of consumers price at delivery, compared to that established
and contrary to the requirements of good at the conclusion of contracts as it does not
faith, a significant imbalance between the entitle the consumer to terminate the contract
rights and obligations of the parties. " it considers that the price is too high
The legal consequences of a finding of compared to the originally scheduled;
unfair terms of contract wording will be - Allow the dealer to obtain money
disposed of and the continuation of the from the consumer, in case of failure or
contract, only with the consumer and only if completion of the contract by the latter, there
its continuation is possible. is no provision for compensation in an
amount equivalent to the consumer for breach
When abuse occurs in contractual of contract by the dealer;
relations - Give the trader the right to
unilaterally cancel the contract without
According to the text quoted terms are providing the same rights to the consumer.
considered to be unfair which:
- Trader reserves the right to modify The solution: the refusal to sign
unilaterally the contractual terms, without a
reason specified in the contract and accepted It is an unfair abuse of rights in
by consumers by signing it; writing, which operates only in intent and
- Determine the trader to alter aimed at the vantage point of what they
unilaterally without the consent of the require. In many situations are unfair, in fact,
consumer, the terms of the characteristics of instruments of defense the creditor intends to
products and services to be provided or the provide for preventative purposes.
delivery of a product or a service period for There are authors opinion that
implementation; regardless of stringency need the beneficiary
- Trader wants to automatically extend of such a contract would have it, the correct
a contract for a specified period, by tacit behavior should be to deny the contract and
you should call to another service provider.
390
There are however, types of contracts charges on loans must be updated to comply
such as bank credit agreement, which have with new regulations. "Constantin
the same unfair terms and the recipient is not Cerbulescu, Chairman NAPC.
able to opt for any other service provider What's more, the Emergency
requested. Ordinance no. 50/2010 states:
Can also be selling cases of abuse of • early repayment fee of up to 1% for
contract labor, especially when the employer, loans with fixed interest;
in exercising its discretionary rights, seeks to • no early repayment fee charged on
dismiss the employee under the lack of legal loans with variable interest rates;
grounds. • the contract is limited commissions
In fact, employees who have appealed for credit:
against the dismissal decision had obtained  Credit administration fee,
recognition of the unfairness of the contract penalty fee for late payment, prepayment fee
termination and order reinstatement of the if the interest is fixed, single fee for services
employer's work, with unrealized payroll for to consumer demand, in addition, the creditor
the period between the effective dismissal is entitled to collect only file analysis fee
date and the date of re-employment. (only if they accept credits) and costs
All abuse is the action of the employer associated with providing fee (only for cases
to dismiss an employee as a result of the where insurance is provided - overdraft
abolition of employment (art. 65 of the excluded contracts, consumer credit etc.)
Labour Code), followed after a certain period, • explicit prohibition of fees for cash
the employment of another person the same transactions to credit for the payment of the
job. loan installments or pulling;
Request for unilateral termination of a • the obligation to calculate the
maintenance contract to maintain, given that variable interest in a transparent manner, the
the maintenance debtor to fulfill all formula must have reference ROBOR /
obligations under the contract, only the cause LIBOR / EURIBOR / BNR reference interest
of a person who promises an additional rate, fixed margin lender can not be changed
benefit, also appears to be an abuse of law. during the contract only for the consumer, the
intervals at which are recalculated interest
Emergency Ordinance No. 50/2010 on under the contract;
credit agreements for consumers • the new business, the creditor must
Emergency Ordinance No. 50/2010 on provide the consumer before signing a
consumer credit agreements entered into force standard form to all technical data of the loan,
Monday, June 21, 2010. including the APR, interest calculation
Provisions of the new legislation formula and the total amount to be repaid;
apply to both new business and the ongoing, • the creditor must provide the
regardless of their size. Credit institutions consumer credit agreement at least 15 days
shall have 90 days to change the credit before signing;
contract addenda underway in accordance • the consumer's right to withdraw
with new regulations. unconditionally, without justification, without
"On June 21, 2010 entered into force giving any reason, within 14 days of signature
Ordinance 50/2010. Since that time, lending on a credit agreement.
institutions are required to comply with the This law is applied to credit,
legislative act. The 90 days for contracts to including credit agreements secured by
upgrade the legal form is not a period of mortgages or other security for the property
exemption from the law. As of June 21, 2010, or a right secured by the property and credit
contrary to the provisions of GEO 50/2010 agreements whose purpose is to acquire or
contracts are void, whether or not the contract retain ownership rights land or an existing or
has been updated. During this period, all projected buildings, regardless of the amount
requests for early repayment of loans should of credit and leases.
be resolved according to GEO 50/2010, all
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Advice for consumers - If you object, notify the creditor in

writing otherwise presumed acquiescence;
One of the most effective advice is not - In this period, you may receive
to be impressed by the advantage of bank offers from banks and credit amending
credit agreement. existing contracts not related to compliance
Some banks in Romania, 99.99% use with the provisions of GEO 50/2010 contract,
unfair terms in credit agreements with the this may be the shift from variable to fixed
public. Of all the processes dealing with the interest rate or other changes, you do not
contracts were won by the bank and bank accept these offers, even if you are proposing
customers were required to repay the amounts a lower rate, check the current level of
they received from the client by applying interest in the market to see how
these unfair terms. Application fees or risk advantageous it is tender;
management should reduce the percentage - If you want to repay the loan early,
rate of credit contracts but not informing the according to GEO 50/2010 (no fee for
client, is only an advantage favoring the bank. reimbursement for loans with variable interest
NAPC is the only institution that can check if or interest fee of 1% for fixed), one can do
the banks impose unfair terms on the basis of even if the credit institution has not changed
Law 193 of 2000 which sanctioned practices, that contract you have, from June 21, 2010,
misleading and Law 363 of 2007 establishing any provision of the contract on a commission
unfair. refund GEO 50/2010 contrary is null and
We emphasize that the key would be void, the creditor must calculate the amount
unfair to forbid a client debtor in a banking you repaid according to GEO 50/2010 and
contract: the right to alter unilaterally the include only supported by commission order
dealer's contract without cause clauses, emergency and not those existing credit
prohibit or restrict the consumer's right to agreement;
terminate the contract or terminate the - Use the relationship with the creditor
conditions trader has the right, the right to written notice (notice filed at the registry
increase the price of the service dealer, to institution credit registration number or sent
give the consumer without the right to cancel by mail with acknowledgment of receipt),
the contract if the final price is too high in there are cases where consumers who wish to
relation to the agreed contract price. benefit from new laws with official
regulations (early repayment of the loan or
For existing credit agreements disposal of fees) are denied the report makes
creditors or 90 days grace period to update or
In the case of ongoing banking contracts GEO 50/2010 false that reason has
practices can alert the creditor against the not entered into force, written correspondence
debtor should be informed: with the creditor, possibly followed by a
-Decline for some cash transaction refusal of his the provisions of GEO 50/2010
fees that banks charge for the payment (fee constitute legal support on which to report
payment rate in advance fees for interim your Commissariats County Consumer
payment, etc.). Protection or to initiate legal action.
-Ask the bank to stop collecting fees
not covered by borrowing in the GEO Conclusions
50/2010;
- Within 90 days (starting with Banks offer a service to a customer
06/21/2010), lending institutions will send and any service should be the terms and
addenda amending existing contracts, verify conditions that are acceptable both bank and
that changes are in accordance with the customer. These contracts are binding,
provisions of GEO 50/2010, the lender may whether the customer is online banking or
not offer you anything other than what which bank head office. Banking contracts are
provides the normative act. usually established in a standard format and
392
terms and conditions of these contracts should In this respect the application of
apply to all customers. legislative measures on banks and lenders that
There may be differences in certain justifies dominance clients the debtor or is
contracts, such as differences between a just in no position to accept the offer to
mortgage arrangement or a basic bank negotiate.
account. However, there may be problems of Unfair terms, which may occur by
"reading" or interpretation of a negative term contracting unjustified fees, give the debtor's
of the contract. Contract to be enforceable in right to a legal action to compensate the
terms of the terms and conditions must be real creditor abuse.
and clearly understood by the client.
393
PROGRES CĂTRE EXCELENŢĂ. IMPLEMENTAREA CAF (CADRUL COMUN DE

AUTOEVALUARE A MODULUI DE FUNCŢIONARE A INSTITUŢIILOR PUBLICE) ÎN
ADMINISTRAŢIA PUBLICĂ
Subprefect Angela Zarojanu,

Instituţia Prefectului-judeţul Suceava, municipiul Suceava, România, angela.zarojanu@prefecturasuceava.ro
Rezumat: Cadrul Comun de Evaluare Organizaţională (Common Assessment Framework – CAF) este un instrument de
management al calităţii totale (Total Quality Management), un cadru comun european al calităţii ce se foloseşte în
sectorul public ca instrument de evaluare organizaţională şi permite instituţiilor publice să-şi analizeze fiecare
domeniu de activitate pe baza unui set comun de criterii stabilite la nivel european. CAF este rezultatul cooperării
miniştrilor responsabili de administraţia publică din ţările membre ale UE. CAF a fost dezvoltat sub egida Grupului
pentru Servicii Publice Inovative (Innovative Public Services Group - IPSG), a Grupului de coordonatori naţionali
CAF, înfiinţat de Directorii Generali (DG) pentru a promova cooperarea şi schimbul de experienţă privind modalităţile
inovatoare de modernizare a administraţiei şi modului de furnizare a serviciilor în statele membre.
În România, CAF a fost lansat, în anul 2005, de către Ministerul Administraţiei şi Internelor - Unitatea Centrală
de Reformă în Administraţia Publică (UCRAP), care este coordonator naţional în cadrul proiectului „Mecanisme
moderne pentru o administraţie eficientă”, finanţat prin Programul Operaţional Dezvoltarea Capacităţii
Administrative. În administraţia publică românească, CAF se implementează voluntar. Până în prezent, UCRAP a
acordat asistenţă în implementarea CAF pentru 54 de instituţii publice, dintre care 7 au reluat procesul de
autoevaluare prin CAF, după perioada de implementare a planului acţiuni de îmbunătăţire, pentru a vedea progresul
înregistrat în timp.
Instituţia Prefectului – judeţul Suceava, preocupată permanent de modernizarea activităţilor instituţiei, a
hotărât implementarea CAF - ului, astfel încât să se cunoască în orice moment nivelul atins de practicile manageriale
într-un cadru determinat.
Cuvinte cheie: CAF, administraţie publică, Instituţia Prefectului – judeţul Suceava, fonduri europene, management,
modernizare
Managementul public a apărut ca o cadru comun european al calităţii ce se

necesitate şi se dezvoltă permanent având în foloseşte în sectorul public ca instrument de
vedere că modernizarea administraţiei publice evaluare organizaţională şi permite
devine imperativă ca urmare a cerinţelor tot instituţiilor publice să-şi analizeze fiecare
mai mari din partea cetăţenilor care în mod domeniu de activitate pe baza unui set comun
justificat aşteaptă servicii de calitate şi un de criterii stabilite la nivel european.
timp de prelucrare cât mai scurt a acestora, cu CAF este rezultatul cooperării
impact direct asupra îmbunătăţirii modului de miniştrilor responsabili de administraţia
viaţă. publică din ţările membre ale UE. CAF a fost
Nu mai există nici un fel de dubiu dezvoltat sub egida Grupului pentru Servicii
asupra faptului că eficienţa şi eficacitatea în Publice Inovative (Innovative Public Services
sectorul public trebuie să fie îmbunătăţite, iar Group –IPSG), a Grupului de coordonatori
managementul public în instituţiile publice naţionali CAF, înfiinţat de Directorii Generali
trebuie orientat asupra obiectivelor şi (DG) pentru a promova cooperarea şi
rezultatelor. schimbul de experienţă în ceea ce priveşte
Măsurarea performanţei sectorului modalităţile inovatoare de modernizare a
public a devenit o temă extrem de importantă administraţiei şi modului de furnizare a
şi populară în ultimele decenii. Organizaţiile serviciilor în statele membre.
trebuie să măsoare rezultatele obţinute, să CAF este implementat în 15 ţări ale
arate şi să comunice dacă activităţile se UE.[1]
desfăşoară aşa cum au fost planificate, dar şi
dacă prin acestea se atinge scopul pentru care Scopul şi mijloace CAF
a fost creată organizaţia.
Cadrul Comun de Evaluare Organizaţională CAF este promovat şi pus la dispoziţia
(Common Assessment Framework – CAF) instituţiilor publice din Europa, ca instrument
este un instrument de management al calităţii uşor de utilizat în scopul creşterii
totale (Total Quality Management); este un performanţelor organizaţionale. Deşi oferă un
394
cadru de evaluare care, din punct de vedere  oportunitatea de a promova şi de a realiza

conceptual se aseamănă cu majoritatea un schimb de bune practici între diverse
modelelor de management al calităţii, el este sectoare/ arii ale unei instituţii precum şi
conceput în special pentru organizaţiile din între instituţii diferite;
sectorul public .  un mod de a integra diversele iniţiative de
CAF duce la responsabilizarea gestionare a calităţii în procesele de
personalului angajat, atât a celui de conducere manangement curente;
cât şi a celui de execuţie, cu privire la  un mod de a măsura progresul în timp prin
acţiunile ce vor fi întreprinse. autoevaluări periodice.
Obiectivele CAF Structura CAF
 să introducă principiile managementului Structura CAF este prezentată mai jos:

calităţii totale în administraţia publică şi să
orienteze treptat instituţiile publice, prin
înţelegerea şi utilizarea autoevaluării;
- de la faza prezentă – Planificare –
Implementare a activităţilor;
- spre ciclu complet – Planificare –
Implementare – Monitorizare – Îmbunătăţire;
 să faciliteze procesul de autoevaluare în
instituţiile publice cu scopul de a obţine un
diagnostic al modului de funcţionare al
acestora şi de a identifica acţiuni de
îmbunătăţire; Modelul CAF are în componenţă nouă
 să acţioneze ca o punte între diversele elemente constitutive.
modele utilizate în managementul calităţii; Criteriile 1-5 se referă la factorii
 să faciliteze activităţile de „bench- determinanţi sau mijloacele tehnice utilizate
learning” între instituţiile din sectorul public. într-o instituţie. Acestea arată ceea ce face
instituţia şi modul cum acţionează pentru a
Caracteristicile principale ale obţine rezultatele dorite.
instrumentului CAF Criteriile 6-9 evidenţiază rezultatele
obţinute de instituţie în relaţia cu cetăţenii,
Utilizarea CAF conferă instituţiilor un angajaţii, societatea şi performanţele cheie.
cadrul solid pentru a demara un proces de Aceste rezultate sunt măsurate prin analiza
îmbunătăţire continuă. Instrumentul CAF percepţiei părţilor implicate şi prin indicatorii
oferă: interni stabiliţi pentru măsurarea rezultatelor.
 evaluarea bazată pe dovezi, urmând un set Majoritatea utilizatorilor CAF apreciază
de criterii larg acceptate în sistemul public că acest instrument de autoevaluare este uşor
din Europa; de utilizat, puţin costisitor şi mai bine adaptat
 oportunităţi de identificare a progresului şi sectorului public în comparaţie cu alte
a nivelelor de performanţă ridicată; instrumente de management al calităţii totale.
 un mod de a obţine o direcţie definită şi de Chiar dacă autoevaluarea CAF este
a ajunge la consens asupra a ceea ce considerată a fi punctul de start al unei
trebuie făcut pentru a îmbunătăţi strategii de îmbunătăţire pe termen lung prin
funcţionarea organizaţiei/ instituţiei; implementarea CAF ului se poate interveni în
 o legătură între rezultatele de atins şi domeniile în care rezultatele nu au fost cele
factorii determinanţi şi activităţile care vor aşteptate şi va crea instituţiei premisele de
contribui la obţinerea lor; succes.
 o modalitate de a crea entuziasm în rândul Însă, pentru a avea cu adevărat impact,
angajaţilor prin implicarea lor în procesul planul de acţiune ce rezultă din autoevaluare
de îmbunătăţire; ar trebui integrat în procesul de planificare
strategică al instituţiei astfel încât să devină
395
parte în managementul general al Performanţele în administraţie implică o

instituţiei.[2] evaluare continuă, care să ţină cont de situaţia
existentă pentru formularea unor soluţii reale
CAF în România de îmbunătăţire a calităţii serviciilor pe care
le oferă.
Acest instrument a fost lansat la nivel
naţional în anul 2005. Prin implementarea CAF s-a
Ministerul Administraţiei şi Internelor - urmărit:
Unitatea Centrală de Reformă în - stabilirea unui diagnostic clar şi detaliat
Administraţia Publică este coordonator care să identifice cu exactitate direcţiile
naţional CAF (Cadrul comun de prioritare ale serviciilor specifice care
Autoevaluare a modului de Funcţionarea a trebuie îmbunătăţite, precum şi
instituţiilor publice), în cadrul proiectului identificarea deficienţelor majore ce
„Mecanisme moderne pentru o administraţie trebuie îndepărtate;
eficientă”, finanţat prin Programul - întocmirea planului de acţiuni care să
Operaţional Dezvoltarea Capacităţii contribuie la îmbunătăţirea activităţii;
Administrative. - implicarea personalului în procesul de
Instrumentul CAF se implementează în îmbunătăţire continuă a activităţii.
administraţia publică românească pe bază Evidenţiem faptul că în urma
voluntară. evaluărilor efectuate, s-au constatat
Până în prezent, UCRAP a acordat îmbunătăţiri importante ale activităţii la
asistenţă în implementarea CAF pentru 54 de obiectivele cuprinse în Planul de acţiuni
instituţii publice, dintre care 7 au reluat întocmit în vederea implementării CAF.
procesul de autoevaluare prin CAF , după Pentru realizarea obiectivului Eficientizarea
perioada de implementare a planului acţiuni procesului de comunicare la nivelul Instituţiei
de îmbunătăţire, pentru a vedea progresul Prefectului au fost întreprinse acţiuni care au
înregistrat în timp. condus la identificarea de soluţii la
problemele curente ale instituţiei, reducerea
Implementarea instrumentului CAF în timpului de identificare a soluţiilor, asigurarea
Instituţia Prefectului – judeţul Suceava transparenţei activităţii instituţiei,
îmbunătăţirea nivelului de cunoaştere în
Instituţia Prefectului – judeţul Suceava, domeniul profesional, cunoaşterea de către
preocupată permanent de modernizarea personalul instituţiei a orientărilor şi
activităţilor instituţiei, a hotărât obiectivelor operaţionale ale instituţiei etc. [3]
implementarea CAF-ului, astfel încât să se Rezultatele obţinute s-au concretizat
cunoască în orice moment nivelul atins de în:
practicile manageriale într-un cadru - Organizarea săptămânală a unor întâlniri
determinat. de lucru între conducerea instituţiei şi şefii
Implementarea Cadrului de de servicii şi compartimente; acest lucru a
Autoevaluare a Modului de Funcţionare a condus la informarea rapidă şi corectă a
Instituţiilor Publice (CAF), elaborat pe baza conducerii instituţiei, dar şi la
Modelului Premiului European al Calităţii, a identificarea soluţiilor la problemele
urmărit: ridicate;
1. eficientizarea procesului de comunicare la - Asigurarea transparenţei activităţilor
nivelul instituţiei prefectului; instituţiei prin: completarea/ actualizarea
2. perfecţionarea procesului de gestionare a site-ului instituţiei; realizarea revistei Info
resurselor umane; Europa Sv care cuprinde informaţii despre
3. optimizarea managementului; activitatea instituţiei, dar şi informaţii
4. gestionarea resurselor financiare, privind afacerile europene şi relaţii
5. utilizarea tehnologiei informaţiei şi a internaţionale şi care se distribuie prin e-
comunicaţiilor; mail salariaţilor instituţiei, serviciilor
6. încheierea de parteneriate.
396
publice deconcentrate, primăriilor, ONG- a fost cel stabilit în plan, de 30 în fiecare an:
urilor etc. 26 funcţionari publici au participat la
- Perfecţionarea sistemului de comunicare cursurile de perfecţionare organizate de INA
internă, atât pe orizontală, cât şi pe şi 4 salariaţi la cursurile pentru funcţionarii de
verticală, prin transmiterea de informaţii conducere (3) şi înalţi funcţionari (1).
de interes general salariaţilor, prin În anul 2009, 2 înalţi funcţionari publici
intermediul reţelei interne de calculatoare. au participat la cursurile organizate de INA.
Pentru măsurarea rezultatelor obţinute Preocupări pentru perfecţionarea salariaţilor
prin introducerea comunicării prin reţeaua au existat şi la cele 2 servicii comunitare:
internă s-au folosit indicatori de input (ex.: Serviciul Public Comunitar Regim Permise de
personal, fonduri, logistică), indicatori de Conducere şi Înmatriculare a Vehiculelor a
rezultat (nr. salariaţi instruiţi, nr. participanţi judeţului Suceava şi Serviciul Comunitar
la cursuri de perfecţionare, număr e-mailuri pentru Eliberarea şi Evidenţa Paşapoartelor
transmise, nr. e-mailuri primite, etc) şi Simple a judeţului Suceava, unde au
indicatori de impact. participat la cursuri, în medie, un număr de 7
Pentru realizarea obiectivului Perfecţionarea salariaţi anual.
procesului de gestionare a resurselor umane, Optimizarea managementului
au fost întreprinse un număr de 3 acţiuni: instituţiei este un alt obiectiv, pentru
1. Realizarea unui plan semestrial pentru realizarea căruia s-au întreprins
participarea salariaţilor la cursurile de următoarele acţiuni:
perfecţionare organizate de INA. - realizarea sarcinilor de serviciu în echipă (în
Rezultatele aşteptate vizau o gestionare cazul unor activităţi comune şi
eficientă şi echitabilă a specializărilor, iar ca complementare: concursuri, comisii de
performanţă - funcţionari specializaţi, din evaluare, întocmirea de proiecte, verificarea
toate compartimentele instituţiei. unor anumite stări de fapt etc.) cu specificarea
În perioada 2009 - 2010 (semestrul I), responsabilităţilor fiecăruia. Acest lucru a avut
s-au întocmit Planurile de formare ca efect constituirea unor echipe de lucru
profesională, dar lipsa fondurilor a condus la eficiente, dar şi creşterea gradului de
nerealizarea prevederilor acestuia. responsabilizare a salariaţilor. Menţionăm în
2. Motivarea personalului acest sens comisiile constituite prin ordin al
În perioada 2006 - 2009, Ministerul prefectului, care au evaluat pagubele produse
Administraţiei şi Internelor a susţinut de calamităţile naturale din anii 2008 şi 2010
eforturile instituţiei de realizare a unei (au participat toţi salariaţii instituţiei, fişele de
administraţii moderne într-un judeţ cu 114 evaluare întocmindu-se corect şi într-o
unităţi administrativ-teritoriale, cu probleme perioadă relativ scurtă, de la 2 la 4 zile).
cu grad înalt de dificultate, mai ales legate de În anul 2010, prin Ordin al prefectului
calamităţi şi aplicarea legilor proprietăţii şi a s-au constituit Colectivul care va avea ca
repartizat resursele financiare solicitate atribuţii elaborarea de proiecte cu finanţare
suplimentar. din fondurile europene, din cadrul Instituţiei
Începând din 2006, anual s-a realizat Prefectului – judeţul Suceava şi Grupul de
evaluarea activităţii instituţiei şi şi lucru operativ pentru monitorizarea
îndeplinirea indicatorilor de performanţă. absorbţiei fondurilor europene (sunt
monitorizate 220 proiecte depuse, în valoare
3. Participarea la cursurile de totală de 297.419,06 mii euro).
perfecţionare organizate de INA şi - consultarea comisiei paritare privind programul
universităţile de profil. şi condiţiile de lucru, elaborarea/ completarea
Prin cuprinderea acestei acţiuni în plan, regulamentului de ordine interioară
s-a urmărit participarea într-un număr cât mai - îmbunătăţirea compartimentului de relaţii
mare a funcţionarilor publici la cursurile de publice s-a făcut prin redistribuirea
perfecţionare. atribuţiilor funcţionarilor care lucrează în
Resursele financiare au fost asigurate, acest compartiment, pe baza fişelor postului;
în perioada 2006 - 2008; numărul de cursanţi
397
rezultatele s-au concretizat în eficientizarea - achiziţionarea de tehnică de calcul suplimentară

activităţii de rezolvare în timp a petiţiilor . (calculatoare, copiatoare, imprimante,
- cunoaşterea de către personalul instituţiei a softuri); acest lucru a condus la eficientizarea
orientărilor şi obiectivelor operaţionale ale muncii salariaţilor prin accesul individual la
instituţiei, prin actualizarea periodică a tehnica de calcul;
Manualului Calităţii şi a procedurilor de - informatizarea registraturii şi arhivei.
lucru. Implementarea sistemului de Obiectivul privind Realizarea de
management al calităţii ISO 9001:2001, parteneriate s-a concretizat în acţiuni care
conform certificatului nr. 317 din 25 martie vizau:
2008, prin procedurile de lucru elaborate, a - Identificarea ONG-urilor active pentru încheierea
avut ca rezultat scăderea numărului de de parteneriate: în acest scop s-a constituit o
abateri, greşeli sau neconformităţi în bază de date ce cuprinde un număr de 451
instituţie. ONG-uri, din care 64 sunt cele mai active;
- Managementul riscului – operaţionalizarea/ - Încheierea de protocoale de colaborare între
actualizarea Registrului riscurilor (introdus în instituţia prefectului şi alte instituţii: în acest
anul 2008); întocmit în conformitate cu sens s-au întocmit protocoale de colaborare
standardul SMAI – A nr. 006/ 2006 privind pentru practica anuală a studenţilor, cu
principiile şi metodologia standardizării Universitatea „Ştefan cel Mare” Suceava şi
Managementului riscului. Datorită faptului că alte universăţi din ţară;
managementul riscului este un proces - Încheierea de parteneriate pentru întocmirea
continuu şi ciclic bazat pe activităţi de control de proiecte privind accesarea fondurile
şi monitorizare, identificarea eventualelor europene; (parteneriate cu Universitatea
aspecte birocratice sau cele ce pot naşte „Ştefan cel Mare” Suceava, 5 primării şi 7
suspiciuni de corupţie pot fi depistate şi ONG-uri )
înlăturate. Registrul de riscuri s-a întocmit - Unul dintre obiectivele de viitor ale
pentru fiecare compartiment din cadrul parteneriatului dintre Instituţia Prefectului -
instituţiei şi cuprinde riscurile inerente judeţul Suceava şi Universitatea „Ştefan cel
asociate obiectivelor şi activităţilor Mare” Suceava, Facultatea de Ştiinţe
corespunzătoare acestora. Economice şi Administraţie Publică este
- Simplificarea procedurilor administrative realizarea unei reviste electronice pe teme de
constituie o prioritate fundamentală a oricărui administraţie publică;
demers de îmbunătăţire a calităţii serviciilor - Instituţia Prefectului – judeţul Suceava este
publice. Exemplificăm în acest sens simplificarea coordonatoarea Parteneriatului Judeţean
procedurii de aplicare a apostilei, de privind Ocuparea Forţei de Muncă şi
înmatriculare a vehiculelor şi a celei de Incluziune Socială şi este membră a Pactului
eliberare a paşapoartelor, care au avut ca scop Regional NE în cadrul STPNE.
furnizarea unor servicii rapide, de calitate, Pentru Instituţia Prefectului – judeţul
transparente. Suceava continuarea implementării CAF este
Obiectivul Gestionarea eficientă a o necesitate. Prin aceasta va identifica cu
resurselor financiare s-a realizat prin exactitate direcţiile prioritare, produsele şi
prevederea, în bugetul anual, a resurselor serviciile organizaţiei care trebuie neapărat
financiare suficiente pentru desfăşurarea îmbunătăţite şi cum trebuie îmbunătăţite,
activităţii (lucru realizat în perioada 2006 - precum şi care sunt deficienţele majore care
2009); pentru anul 2010 resursele sunt trebuie îndepărtate.
limitate, motiv pentru urmărirea cheltuirii
banului public se face prin stabilirea Progres către excelenţă
priorităţilor şi a necesităţilor urgente. Al 4-lea Eveniment European al
Un alt obiectiv avut în vedere a vizat Utilizatorilor CAF*
Extinderea noilor tehnologii ale informaticii
şi comunicării în administraţia publică. Ministerul Administraţiei şi Internelor,
Principalele acţiuni se refereau la: prin Unitatea Centrală pentru Reforma
Administraţiei Publice, a organizat, în
398
perioada 23-24 septembrie 2010, cel de-al 4- Bibliografie:

lea Eveniment European al Utilizatorilor CAF
(CAF-Cadrul comun de autoevaluare a *www.administratie.ro
modului de funcţionare a instituţiilor publice). [1] Drăgulescu Nicolae, Noi standarde şi practici
Evenimentul a reunit peste 300 de europene în asigurarea calităţii administraţiei publice,
2006
reprezentanţi ai instituţiilor administraţiilor [2] Ministerul Administraţiei şi Internelor-UCRAP,
publice, din 23 de ţări europene şi a fost Cadrul comun de autoevaluare a modului de
organizat în cadrul proiectului "Mecanisme funcţionare a instituţiilor publice(CAF)-Broşură de
moderne pentru o administraţie eficientă", prezentare, 2005
cod SMIS 2803, cofinanţat din Fondul Social [3] Ministerul Administraţiei şi Internelor-UCRAP,
Ghid de implementare CAF, 2005
European, prin Programul Operaţional
Dezvoltarea Capacităţii Administrative 2007.
În cadrul evenimentului, care s-a
desfăşurat sub tematica: „Progres către
excelenţă. O provocare pentru administraţia
publică europeană în perioade dificile", au
fost discutate bune practici din cadrul a 16
instituţii publice din ţările europene vizând
implicarea angajaţilor, managementul
instituţiilor publice, planificarea strategică,
educaţie şi măsurarea performanţei în sectorul
public.
Întrebări precum: „prin ce modalităţi
serviciile publice pot îmbunătăţi calitatea
vieţii cetăţenilor?; cum pot lua parte cetăţenii,
în mod activ, la procesul de decizie fiind
astfel pregătiţi să joace un rol în furnizarea de
servicii publice?; cum sunt percepute nevoile
cetăţenilor de către instituţiile statului?” şi-au
găsit răspunsul pe parcursul celor două zile de
desfăşurare a evenimentului, atât în sesiunile
plenare, cât şi în ateliere de lucru.
Întreg evenimentul s-a concentrat pe
cele 8 principii de excelenţă ale management-
ului calităţii totale şi s-a desfăşurat în
colaborare cu reţeaua de corespondenţi
naţionali CAF şi cu Institutul European de
Administraţie Publică, prin Centrul de
Resurse CAF.
Elementele de noutate, ce au fost
prezentate cu această ocazie, sunt reprezentate
de procedura de feedback extern pentru
implementarea CAF şi de adaptarea
instrumentului CAF la sectorul educaţional
„CAF şi Educaţie”.
Cel de-al 4-lea Eveniment European al
Utilizatorilor CAF a marcat şi bilanţul a 10
ani de implementare a acestui instrument în
instituţiile publice europene.
399
400

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European Economy: present and perspectives, International Conference, 10th edition

Editura Universităţii Ştefan cel Mare din Suceava

Angela ALBU - Universitatea Ştefan cel Mare, Suceava

Acest volum a apărut ca urmare a desfăşurării Conferinţei Internaţionale “Economie Europeană:

Ştefan cel Mare University of Suceava Publishing House

SECTION 1 / SECŢIUNEA 1 ...................................................................................................................................... 10

THE EFFECTS OF THE EUROPEAN INTEGRATION ON LABOUR MARKET IN ROMANIA ............... 12

REFLECŢII ASUPRA COMPETITIVITĂŢII REPUBLICII MOLDOVA ÎN CONTEXTUL CRIZEI

FACETS OF ECONOMIC PROTECTIONISM IN KNOWLEDGE SOCIETY. AN EPISTEMOLOGICAL

EPISTEMOLOGICAL APPROACH OF ECONOMIC LIBERALIZATION DETERMINANTS IN THE

THE IMPACT OF GLOBAL CRISIS ON THE SOCIO-ECONOMIC DISPARITIES AND REGIONAL

LOCAL SUSTAINABLE DEVELOPMENT, ASPECTS OF POPULATION HEALTH .................................. 54

BRAIN CAPITALISATION – THE NEW PYLON OF THE REGIONAL DEVELOPMENT ........................ 60

THE EDUCATION – VECTOR OF HUMAN DEVELOPMENT. ROMANIAN PERSPECTIVE .................. 70

STATISTICAL ANALYSIS OF THE WORK ENVIRONMENT OF SURVEY OPERATORS ...................... 77

THE CHOICE FOR SOCIAL DISCOUNT RATE. ............................................................................................... 84

ASPECTE PRIVIND CONCURENŢA PE PIAŢA TELEFONIEI DIN ROMÂNIA ÎN CONTEXTUL U.E. . 89

THE APPLICATION OF THE EUROPEAN CHARTER FOR REGIONAL OR MINORITY LANGUAGES

THE STATUTE OF THE ECONOMIC MODEL WITHIN SCIENTIFIC KNOWLEDGE: CONCEPTUAL-

AN OVERVIEW REGARDING THE ROLE OF CAPITAL MARKETS IN THE MODERN

IRELEVANŢA ÎN CONTEXTUL ACTUAL A INDICATORULUI RIR ÎN CADRUL PROIECTELOR CU

THE MANAGEMENT OF NATURAL PROTECTED AREAS FROM BULGARIA ..................................... 130

BRANDING ROMANIA AS A TOURIST DESTINATION ............................................................................... 137

SECTION 2 / SECŢIUNEA 2 .................................................................................................................................... 148

SOCIAL LEGITIMACY AND BUSINESS CITIZENSHIP................................................................................ 150

NEW STAKEHOLDERSHIP’ WEBS ................................................................................................................... 155

CURRENT ASPECTS REGARDING EMOTIONAL INTELLIGENCE AND LEADERSHIP..................... 162

TIME FOR EMOTIONAL CHANGE OF PEOPLE AND ORGANISATION ................................................ 172

METHODS OF MEASURING INTELLECTUAL CAPITAL ........................................................................... 178

UNDERSTANDING RISK MANAGEMENT IN SMALL 7 STEPS.................................................................. 182

MODELS OF ENTREPRENEURSHIP IN THE GLOBALIZATION ERA ..................................................... 188

IMPACTUL ISD ASUPRA DEZVOLTARII REGIONALE A ROMANIEI IN CONTEXTUL ECONOMIC

THE COMPETENCE OF THE MANAGER IN A MILITARY STRUCTURE ............................................... 202

DECISION-MAKING METHODS AND COMMUNICATION STRATEGIES IN MANAGEMENT.......... 209

METHODS FOR THE EMPLOYEES’ PERFORMANCE EVALUATION..................................................... 216

INVESTIŢIA STRĂINĂ DIRECTĂ ÎN ROMÂNIA SUB IMPACTUL CRIZEI FINANCIARE

INVESTIŢIILE STRĂINE DIRECTE – CREŞTERE ECONOMICĂ .............................................................. 230

THE IMPACT OF THE CULTURE ON THE STRATEGIES OF THE COUNTY MEHEDINTI

SECTION 3/SECŢIUNEA 3 ...................................................................................................................................... 251

FINANCIAL INTEGRATION OF EUROPEAN MONEY MARKET UNDER EMU. AN OVERVIEW...... 253

ENTERPRISE PERFORMANCE ASSESSMENT THROUGH THE INCOME, IN TERMS OF APPLYING

THE LEASING – COMPANY’S FINANCIAL METHOD ................................................................................. 283

NEED AND BENEFITS OF CASH FLOW INFORMATION............................................................................ 289

THE INTERDEPENDENCE BETWEEN ACCOUNTABILITY FROM PRODUCERS OF FINANCIAL

FINANCIAL INSTRUMENTS ACCOUNTING REFORM. THE MOST IMPORTANT CHANGES

ACCOUNTING INFORMATION: MANAGEMENT USEFUL TOOL............................................................ 313

HOW TRUE IS THE TRUE AND FAIR VIEW................................................................................................... 320

TRUE AND FAIR VIEW IN THE CONTEXT OF THE EUROPEAN ACCOUNTING

SECTION 4 / SECŢIUNEA 4 .................................................................................................................................... 340

ANALIZA DINAMICII ŞI PONDERII SERVICIILOR ÎN HOTELURI ŞI RESTAURANTE,

Prof. univ. dr. Elena-Maria Biji

SECTION 5 / SECŢIUNEA 5 .................................................................................................................................... 348

LEGAL ASPECTS CONCERNING FINANCIAL INSTRUMENTS – GROUND OF THE

TERMS CONCERNING LEASING IN NATIONAL AND INTERNATIONAL JUDICIAL

CHRONOLOGICAL ASPECTS OF THE IMPACT OF THE OTTAWA CONVENTION ON SOME

COMPARATIVE ANALYSIS OF THE RIGHT TO LIBERTY AND SECURITY REGULATIONS IN THE

IMPACT ON CITIZENS QUALITY OF PUBLIC SERVICES ......................................................................... 387

PARTNER ABUSE WITHIN THE BANK IN CREDIT AGREEMENT .......................................................... 392

PROGRES CĂTRE EXCELENŢĂ. IMPLEMENTAREA CAF (CADRUL COMUN DE AUTOEVALUARE

ECONOMY, TRADE, SERVICES/

THE EFFECTS OF THE EUROPEAN INTEGRATION ON LABOUR MARKET IN

Cristina BĂLĂCEANU, PhD Senior Lecturer

JEL code: E24, E26, J30.