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Economic Policies In Romanian Transition Towards The Market Economy

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  • Ana Popa
  • Laura Vasilescu

Abstract

This paper underlines several positive and negative aspects generated by the public economic policies from Romania after 1989, when the communist era ended. The transition to the market economy brought major changes to the decision process, coordinated and implemented by the public authorities with many errors and delays, but also with the acceptance of the idea of changing and improving. First of all, it is analyzed the complexity of elaboration an economic policy, under the pressure of rapid establishment of a political democracy, but without creating an institutional framework and without an experience of the economic democracy. The most serious aspect is the perception of a corrupt capitalism despite the potential of a free market economy. Secondly, the economic policy components have different approaches and evolutions. The concept of an economic policy in Economic and Monetary Union is based on three pillars: monetary, fiscal and structural. In Romania, the monetary pillar was the fastest adopted, the fiscal one is still in discussion, and the structural problems are difficult to be changed. The most difficult aspect is linked to the issues of planning and democracies, as long as there are not settled up clear and correct directions and objectives. This equates to a chaos, favorable to corruption and to internal and external speculators. On the third row, it is interesting to analyze the merger of the interest specific to the public sector with the private sector one, subordinated finally to the interest of civil society. To all of these are added the effects of the European integration and globalization. The experience of Romania was deeply affected by the overlap between transition and world financial instability, getting to the complex problems of the current international crisis. The conclusion of this article refers to the fact that the development and effectiveness of economic policies depends on a combination of dynamic rules, actions, resources, incentives and behaviors that involve the public sector, the private sector, the civil society, but on an area extended internationally.

Suggested Citation

  • Ana Popa & Laura Vasilescu, 2012. "Economic Policies In Romanian Transition Towards The Market Economy," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 8(2), pages 223-233.
  • Handle: RePEc:mje:mjejnl:v:8:y:2012:i:2:p:223-233
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    References listed on IDEAS

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    1. Pradhan, Jaya Prakash, 2009. "Firm Performance during Global Economic Slowdown: A View from India," MPRA Paper 17145, University Library of Munich, Germany.
    2. Bricongne, Jean-Charles & Fontagné, Lionel & Gaulier, Guillaume & Taglioni, Daria & Vicard, Vincent, 2012. "Firms and the global crisis: French exports in the turmoil," Journal of International Economics, Elsevier, pages 134-146.
    3. Bricongne, Jean-Charles & Fontagné, Lionel & Gaulier, Guillaume & Taglioni, Daria & Vicard, Vincent, 2010. "Firms and the global crisis: French exports in the turmoil," Working Paper Series 1245, European Central Bank.
    4. Bricongne, Jean-Charles & Fontagné, Lionel & Gaulier, Guillaume & Taglioni, Daria & Vicard, Vincent, 2012. "Firms and the global crisis: French exports in the turmoil," Journal of International Economics, Elsevier, pages 134-146.
    5. Paul J. Gertler & Sebastian Martinez & Patrick Premand & Laura B. Rawlings & Christel M. J. Vermeersch, 2011. "Impact Evaluation in Practice, First Edition
      [La evaluación de impacto en la práctica]
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