IDEAS home Printed from
   My bibliography  Save this article

Economic Policies In Romanian Transition Towards The Market Economy


  • Ana Popa
  • Laura Vasilescu


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

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mje:mjejnl:v:8:y:2012:i:2:p:223-233. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nikola Draskovic Jelcic). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.