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GINI Country Report: Growing Inequalities and their Impacts in Romania

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  • Iuliana Precupetu

    () (The Institute for Quality of Life (Romanian Academy))

  • M. Precupetu

Abstract

In Romania, inequalities have been driven by a complex of historical, economic and social factors. The communist past has left enduring marks on the country’s development, while transition shaped long lasting inequalities. During the process of post-communist transformation, Romania has been through a severe economic decline accompanied by an important rise in poverty and inequality. Related to inequality, privatisation of large state assets created important opportunities for the concentration of resources in the hands of a small elite and has been one of the major factors leading to the formation of large private wealth. Corruption and its particular form, state capture, created unjustified privileges for some categories, and produced misbalanced outputs in society. While privatisation of agriculture has generally had a distributional favourable impact, it contributed to the emergence of a large, unproductive, fragmented agricultural sector dominated by a subsistence type of farming. Even though it served as a safety net for numerous households, both for the rural population and for those coming from urban areas who lost their jobs during the industrial restructuring process, it is still a low productive sector that hasn’t realised its potential yet.

Suggested Citation

  • Iuliana Precupetu & M. Precupetu, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Romania," GINI Country Reports romania, AIAS, Amsterdam Institute for Advanced Labour Studies.
  • Handle: RePEc:aia:ginicr:romania
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    File URL: http://archive.uva-aias.net/uploaded_files/publications/Romania.pdf
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    1. Georges de Menil & Eytan Sheshinski, 2002. "Romania's Pension System: From Crisis to Reform," NBER Chapters,in: Social Security Pension Reform in Europe, pages 401-438 National Bureau of Economic Research, Inc.
    2. Ingrid-Mihaela DRAGOTĂ & Emilian MIRICESCU, 2010. "The Public Pension System of Romania between Crisis and Reforms. The Case of Special Pensions System," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 9(9(550)), pages 97-116, September.
    3. Flaviu Mihaescu & Liviu Voinea, 2009. "The Impact of the Flat Tax Reform on Inequality: The Case of Romania," wiiw Balkan Observatory Working Papers 81, The Vienna Institute for International Economic Studies, wiiw.
    4. Albu, Lucian Liviu, 2007. "Estimating the Size of Underground Economy in Romania," Working Papers of Institute for Economic Forecasting 070601, Institute for Economic Forecasting.
    5. Voinea, Liviu & Mihaescu, Flaviu, 2009. "The Impact of the Flat Tax Reform on Inequality - the case of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 19-41, December.
    6. Boix, Carles & Posner, Daniel N., 1998. "Social Capital: Explaining Its Origins and Effects on Government Performance," British Journal of Political Science, Cambridge University Press, vol. 28(04), pages 686-693, October.
    7. Ed Diener & Eunkook Suh, 1997. "Measuring Quality Of Life: Economic, Social, And Subjective Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 40(1), pages 189-216, January.
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