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2.1: Country/Economy Profiles
Romania
Key indicators, 2013
GDP (PPP) per capita (int’l $), 1990–2013
Population (millions) ........................................ 21.3
GDP (US$ billions) ........................................ 189.7
GDP per capita (US$) ................................... 8,910
GDP (PPP) as share (%) of world total ............ 0.33
Romania
20,000
Emerging and Developing Europe
15,000
10,000
5,000
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Global Competitiveness Index
Rank
(out of 144)
Stage of development
Score
(1–7)
GCI 2014–2015 ...................................................... 59 ..... 4.3
Transition
1–2
1
GCI 2013–2014 (out of 148) ..................................... 76 ......4.1
GCI 2012–2013 (out of 144) ..................................... 78 ......4.1
GCI 2011–2012 (out of 142) ..................................... 77 ......4.1
Factor
driven
Transition
2–3
2
3
Efficiency
driven
Innovation
driven
Institutions
Basic requirements (40.0%) .......................................77 ......4.5
7
Innovation
Institutions ................................................................ 88 ......3.6
Infrastructure ............................................................ 85 ......3.7
Macroeconomic environment ................................... 46 ......5.2
Health and primary education ................................... 88 ......5.5
Infrastructure
6
5
Business
sophistication
Macroeconomic
environment
4
3
2
Efficiency enhancers (50.0%) .....................................50 ......4.3
Market size
Higher education and training ................................... 58 ......4.6
Goods market efficiency .......................................... 89 ......4.2
Labor market efficiency ............................................ 90 ......4.0
Financial market development .................................. 64 ......4.1
Technological readiness ............................................ 47 ......4.5
Market size ............................................................... 45 ......4.4
Health and
primary
education
1
Higher education
and training
Technological
readiness
Financial market
development
Goods market
efficiency
Labor market efficiency
Innovation and sophistication factors (10.0%) ...........78 ......3.5
Business sophistication ........................................... 90 ......3.8
Innovation ................................................................. 66 ......3.3
Romania
Emerging and Developing Europe
The most problematic factors for doing business
Access to financing ...........................................................16.6
Tax rates............................................................................15.6
Inadequate supply of infrastructure ....................................12.8
Corruption .........................................................................11.0
Inefficient government bureaucracy .....................................9.9
Tax regulations ....................................................................9.9
Restrictive labor regulations .................................................4.9
Inflation ................................................................................4.7
Policy instability ...................................................................4.7
Government instability/coups ..............................................2.5
Foreign currency regulations ................................................2.4
Crime and theft ...................................................................2.0
Inadequately educated workforce ........................................1.6
Poor work ethic in national labor force ................................1.0
Insufficient capacity to innovate ...........................................0.5
Poor public health ...............................................................0.1
0
Note:
5
10
15
Percent of responses
From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.
318 | The Global Competitiveness Report 2014–2015
© 2014 World Economic Forum
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2.1: Country/Economy Profiles
Romania
The Global Competitiveness Index in detail
INDICATOR
VALUE RANK/144
INDICATOR
1st pillar: Institutions
VALUE RANK/144
6th pillar: Goods market efficiency (cont’d.)
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21
Property rights ....................................................... 4.0 ............79
Intellectual property protection ............................... 3.4 ............88
Diversion of public funds ........................................ 3.0 ............82
Public trust in politicians ......................................... 2.3 ..........109
Irregular payments and bribes ................................ 3.9 ............68
Judicial independence............................................ 3.5 ............84
Favoritism in decisions of government officials ....... 2.5 ..........114
Wastefulness of government spending ................... 2.5 ..........116
Burden of government regulation ........................... 3.2 ............94
Efficiency of legal framework in settling disputes .... 3.2 ..........106
Efficiency of legal framework in challenging regs. ... 3.1 ............93
Transparency of government policymaking............. 3.8 ............86
Business costs of terrorism .................................... 4.8 ............97
Business costs of crime and violence..................... 4.4 ............74
Organized crime ..................................................... 4.1 ..........105
Reliability of police services .................................... 4.2 ............65
Ethical behavior of firms ......................................... 3.5 ..........112
Strength of auditing and reporting standards ......... 4.3 ............93
Efficacy of corporate boards .................................. 4.1 ..........112
Protection of minority shareholders’ interests ......... 3.6 ............99
Strength of investor protection, 0–10 (best)* .......... 6.0 ............45
2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09
Quality of overall infrastructure ............................... 3.8 ............88
Quality of roads ...................................................... 2.8 ..........121
Quality of railroad infrastructure .............................. 2.9 ............59
Quality of port infrastructure ................................... 3.4 ..........104
Quality of air transport infrastructure....................... 3.6 ..........105
Available airline seat km/week, millions* ............. 190.4 ............68
Quality of electricity supply ..................................... 4.6 ............81
Mobile telephone subscriptions/100 pop.* ......... 105.6 ............85
Fixed telephone lines/100 pop.* ........................... 21.8 ............52
3.01
3.02
3.03
3.04
3.05
Government budget balance, % GDP*................. –2.5 ............65
Gross national savings, % GDP* .......................... 22.1 ............56
Inflation, annual % change* .................................... 4.0 ............80
General government debt, % GDP* ..................... 39.3 ............59
Country credit rating, 0–100 (best)* ...................... 51.5 ............69
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
Malaria cases/100,000 pop.* ................................M.F. ...........n/a
Business impact of malaria ............................. N/Appl. ...........n/a
Tuberculosis cases/100,000 pop.* ....................... 94.0 ............91
Business impact of tuberculosis ............................. 5.1 ............90
HIV prevalence, % adult pop.* ............................... 0.1 ..............1
Business impact of HIV/AIDS ................................. 4.9 ............90
Infant mortality, deaths/1,000 live births* .............. 10.7 ............59
Life expectancy, years*......................................... 74.6 ............62
Quality of primary education ................................... 4.1 ............65
Primary education enrollment, net %* .................. 85.8 ..........114
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08
Secondary education enrollment, gross %* .......... 95.0 ............57
Tertiary education enrollment, gross %*................ 51.6 ............53
Quality of the education system ............................. 3.8 ............61
Quality of math and science education .................. 4.7 ............31
Quality of management schools ............................. 4.2 ............74
Internet access in schools ...................................... 4.8 ............53
Availability of research and training services ........... 4.2 ............68
Extent of staff training ............................................ 3.6 ..........111
2nd pillar: Infrastructure
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15
6.16
No. procedures to start a business* .......................... 5 ............32
No. days to start a business* ................................. 8.5 ............48
Agricultural policy costs.......................................... 3.8 ............69
Prevalence of trade barriers ................................... 4.0 ..........117
Trade tariffs, % duty* .............................................. 0.8 ..............5
Prevalence of foreign ownership............................. 4.3 ............89
Business impact of rules on FDI ............................. 4.0 ..........105
Burden of customs procedures .............................. 3.7 ............86
Imports as a percentage of GDP* ........................ 44.0 ............77
Degree of customer orientation .............................. 4.4 ............84
Buyer sophistication ............................................... 3.0 ..........107
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09
7.10
Cooperation in labor-employer relations ................. 3.7 ..........125
Flexibility of wage determination ............................. 5.0 ............68
Hiring and firing practices ....................................... 4.1 ............57
Redundancy costs, weeks of salary* ...................... 4.0 ..............7
Effect of taxation on incentives to work .................. 2.5 ..........140
Pay and productivity............................................... 4.0 ............66
Reliance on professional management ................... 3.3 ..........126
Country capacity to retain talent............................. 2.5 ..........128
Country capacity to attract talent ........................... 2.6 ..........115
Women in labor force, ratio to men* ..................... 0.78 ............79
8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
Availability of financial services ............................... 4.1 ............93
Affordability of financial services ............................. 4.2 ............66
Financing through local equity market .................... 3.2 ............83
Ease of access to loans ......................................... 2.9 ............59
Venture capital availability ....................................... 2.6 ............78
Soundness of banks .............................................. 4.5 ............91
Regulation of securities exchanges ........................ 3.6 ..........101
Legal rights index, 0–10 (best)* ................................. 9 ............11
9.01
9.02
9.03
9.04
9.05
9.06
9.07
Availability of latest technologies ............................ 4.6 ............81
Firm-level technology absorption ............................ 4.4 ............81
FDI and technology transfer ................................... 4.8 ............49
Individuals using Internet, %* ............................... 49.8 ............67
Fixed broadband Internet subscriptions/100 pop.* . 17.3 ............40
Int’l Internet bandwidth, kb/s per user* .............. 136.6 ............19
Mobile broadband subscriptions/100 pop.*.......... 37.6 ............57
10.01
10.02
10.03
10.04
Domestic market size index, 1–7 (best)*................. 4.2 ............44
Foreign market size index, 1–7 (best)* .................... 5.1 ............43
GDP (PPP$ billions)* .......................................... 285.1 ............46
Exports as a percentage of GDP* ........................ 41.9 ............65
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09
Local supplier quantity ........................................... 4.3 ............99
Local supplier quality.............................................. 4.1 ............90
State of cluster development.................................. 3.8 ............70
Nature of competitive advantage ............................ 3.3 ............83
Value chain breadth................................................ 3.6 ............87
Control of international distribution ......................... 3.8 ............97
Production process sophistication.......................... 3.7 ............82
Extent of marketing ................................................ 4.0 ............83
Willingness to delegate authority ............................ 3.6 ............82
12.01
12.02
12.03
12.04
12.05
12.06
12.07
Capacity for innovation........................................... 3.7 ............68
Quality of scientific research institutions ................. 4.0 ............55
Company spending on R&D................................... 3.1 ............65
University-industry collaboration in R&D ................. 3.6 ............71
Gov’t procurement of advanced tech products ...... 3.4 ............75
Availability of scientists and engineers .................... 4.0 ............72
PCT patents, applications/million pop.* .................. 2.2 ............56
7th pillar: Labor market efficiency
8th pillar: Financial market development
3rd pillar: Macroeconomic environment
4th pillar: Health and primary education
5th pillar: Higher education and training
6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
Intensity of local competition .................................. 4.4 ..........120
Extent of market dominance .................................. 3.8 ............61
Effectiveness of anti-monopoly policy ..................... 3.8 ............89
Effect of taxation on incentives to invest................. 2.9 ..........128
Total tax rate, % profits* ....................................... 42.9 ............91
9th pillar: Technological readiness
10th pillar: Market size
11th pillar: Business sophistication
12th pillar: Innovation
Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read
the Country/Economy Profiles” on page 101.
© 2014 World Economic Forum
The Global Competitiveness Report 2014–2015 | 319