Romania  

Romania’s unemployment and inflation rates are near the global averages at 6% and 5%, respectively. In terms of physical capital, Romania ranks at 57th, globally. In the banking sector, 9.7% of loans are in default, but an interest margin of 3.8 percentage points indicates a reasonable level of efficiency. The domestic savings rate, at 17% of GDP, is below the global average but levels of household expenditure, at 25% of GDP, reflect domestic demand that is in line with European counterparts. Performance with regard to attracting foreign direct investment lies within the top 40 countries, indicating an attractive market for foreign investors. A low ratio of export revenues relative to the cost of imports is indicative of trade weaknesses, but a raw material concentration level of 1% indicates a good level of industrialisation and the capacity to produce high value-added goods and services, rather than primary products.

Entrepreneurship is encouraged in Romania as only five formal procedures are required to start a business. Consequently, a high number of 93,922 new businesses were registered in 2007. Value added in services is also strong, putting Romania’s ranking just outside the top 30. Internet infrastructure, as measured by secure internet servers and access to personal computers, is moderate, ranking the country 52nd and 41st, respectively, on these variables. However, the level of bandwidth is higher, placing Romania in the top 25 on this variable. ICT and high-tech exports are very low, at only 3% of total goods and 4% of manufactured product exports. Romania enjoys a high level of royalty receipts, meaning the country is able to capitalise on the intellectual property it does produce, but investment in R&D is very low, at 0.7% of GDP.

Romanian citizens enjoy very high levels of political rights and civil liberties, with Romania ranking in the top 40 for both variables. Romania is highly democratic, with a political system characterised by significant checks and balances, preventing arbitrary or unilateral actions by leaders in the executive. Open political competition and well-regulated electoral processes define both the executive and legislative arms of government. The judiciary is sufficiently independent, but regime stability is an issue, with the last fundamental change to the political system having occurred less than 15 years ago.

Romania has a 93% enrolment rate in primary education and at this level, there are 17 students per teacher, both strong figures by international standards. These enrolment rates drop to 86% for secondary and 53% for tertiary education. There is gender equality in enrolment at both the primary and secondary levels, and educational spending is around $2,300 per student, ranking the country at 43 on this latter variable. The average Romanian worker enjoys six years of secondary education and four years of tertiary education, ranking the country sixth and 59th, respectively, on these variables.

Romania’s health infrastructure is reasonably well developed, with 19 medical professionals and 66 hospital beds to every 10,000 people, both high figures by international standards. Romanian citizens have good access to sanitation facilities and only 3% of the population is undernourished. An infant mortality rate of 16 per 1,000 births ranks Romania 50th, with respect to this variable, and health- adjusted life expectancy is quite high at 63 years. Performance on subjective health variables is disappointing by comparison. Only two-thirds of Romanians report being satisfied with their health and over one-quarter report health problems, both low figures that put Romania in the bottom quartile of the rankings.* Only 56% of the population is well rested, placing Romania 98th on this variable, and a high proportion of 32% report consistent pain.*

Romania has some security challenges related to refugees, human flight, and the presence of social groups with a history of discrimination or other grievances, but it remains above the global average on all three variables. There are some instances of state-sponsored political violence against citizens, such as torture or political imprisonment, with Romania ranking 54th in this regard. There were, however, no casualties due to civil war during 2008, and a low homicide rate of 29 per one million people ranks Romania 39th on this count. Only 11% of respondents claim to have had money or property stolen in 2008, and over six out of 10 feel safe walking home alone at night.* Romania ranks 32nd with regard to rates of assaults and muggings, with only 4% of citizens reporting such occurrences in 2008.*

Enforcement of the rule of law is about average, ranking Romania at 56th place, globally, while regulation of economic and commercial activity is more effective, moving Romania up to 40th on this count. Within the civil service and government, however, capacities are less developed, and citizens are only afforded limited self determination in terms of their participation in the political system. Public opinion of government and the corporate world is alarmingly low, with roughly 95% of poll respondents believing there to be widespread corruption in these areas.* Confidence in the judicial and electoral systems is also lacking, but the military does hold the trust of 86% of Romanian citizens.*

Romanians report relatively low levels of freedom to move, practise religion, and speak; however, 74% of Romanians express satisfaction with regard to their freedom of choice in matters of daily life, placing the country 49th on this variable.* Citizens also feel that their country is tolerant of diversity: roughly three-quarters believe the country to be a good settlement location for racial and ethnic minorities, while three in five believe the same to be true for immigrants.*

Social capital in Romania is weak: only 19% of people believe others can be trusted, a low proportion of people feel that friends are important, and few people feel that they can rely on friends and family in times of need.* Romania ranks 40th, internationally, with regard to group memberships, with very low numbers involved in sports, environmental, or arts organisations. By contrast, 38% declare an affiliation with a religious organisation, placing Romania in the top 30, internationally, on this variable. However, religiosity levels remain average, suggesting reasonable access to religious support networks.* Romania also performs poorly in terms of helping strangers and donating to charity, and has the fourth lowest rate of volunteering, worldwide.*

* Data taken from the Gallup World Poll

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