Romania’S International Investment Position: Measuring Vulnerability In Trade Interactions

The topic of international wealth transfers mediated through commercial exchange is by no means a new one. Throughout history, those who have lost out in such processes—the so-called “colonies”—have accused the beneficiaries, “the metropolises,” of exploitation, while the latter have consistently denied any wrongdoing. Both sides, in a sense, appear to have their own arguments. Yet, there is only one underlying truth, which should orient the debate towards development, accumulation, economic expansion, and prosperity—for both the colony and the metropolis alike. Romania, resembling a colony in certain structural respects, has been experiencing economic imbalances resulting from these transfers. Romanian political populism has often instrumentalised this theme, turning it against the country’s own long-term interests. This occurs under the mistaken belief that such value transfers could be halted through Romania’s economic and political isolation. The present paper aims to examine to what extent this narrative holds true. Before doing so, however, it is necessary to clarify what is meant by the notions of colony of the West or colony of Europe.