Our Story. Our FutureThe momentum for Romania’s OECD accession bid

July 2017

I am very glad about the opportunity I am given to acknowledge the progress Romania has made in its efforts to strengthen its relation with the OECD, an organisation with internationally acknowledged standards and public policy expertise. A closer and substantial partnership between Romania and the OECD is an inherent evolution. It vouches for Romania’s increasing role in a world that is more complex, challenging and interconnected than ever, but also for Romania’s firm adherence to the values on which the OECD is founded and which it upholds globally. The future of the relation between Romania and the OECD will be based on the mutual benefits stemming from our cooperation.

Mihai TudosePrime-Minister

July 2017

Foreword

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Over the last two decades, Romania has been displaying genuine and permanent interest in acceding to OECD working structures, deepening the cooperation with the organization, as well as an active and extended participation in the OECD activity.

Through its early engagement with the OECD, with a country-specific programme dating back to 1995, Romania vigorously pursued its reform agenda, to transition from a centrally planned, closed economy to a successful, dynamic free market and stable democracy

State of Readiness

Second highest participation rate

for a non-OECD member

Associate/member in 10 bodies/projects including:

Competition Committee, Investment Committee in enlarged session, LEED, Development Centre, Steel and Shipbuilding Committees.

In June 2017 the Romanian Prime Minister and the OECD Secretary General celebrate Romania’s accession to the Nuclear Energy Agency and its Data Bank.

Participant in 12 bodies/projects;

Attending as invitee in over 20 work formats;

For certain bodies, our ongoing involvement started 10 years or more ago.

A two-decade-long common history

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”Romania is actively promoting investment in the competitiveness of South East Europe, by participating in the OECD Regional SEE Program. Such a platform is essential to increase competitiveness in the region, as direct foreign investments represent a driver for increased production capacities, technological advancement of the economy, and successfully accessing the international markets”.

Alexandru Petrescu, Minister for Business Enivironment, Commerce and Entrepreneurship

May 2017

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Wide ConvergenceAdhered to 35 OECD legal instruments

Declaration on International Investment and Multinational Enterprises and the OECD Guidelines for Multinational Enterprises;G20/OECD BEPS Project;Declaration on Automatic Exchange of Information for Tax Purposes.

Made requests to adhere to the: OECD Anti-Bribery Convention; Principles on Corporate Governance and on Corporate Governance for State Owned Enterprises;Codes of Liberalization; Recommendations on Good Statistical Practices; Principles for Internet Policy Making.

In June 2017, Romania signed the Multilateral Convention to Implement Tax Treaty Related

Measures to Prevent Base Erosion and Profit Shifting

Romania adhered to the Ministerial

Declaration on the Fight Against

Foreign Bribery - Towards a New Era

of Enforcement (March 2016).

Active InvolvementVoluntary contributions: 2.8 MEUR in grants (since 2007)Completed reviews:

Investment Policy Review Competition Law and Policy ReviewPublic Governance Scan

Other recent peer reviews include: Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews (Phase 1 and 2); Evaluation and Assessment in Education.

Regional Outlooks:Black Sea and Central Asia Economic Outlook - 2008;Economic Development and Competitiveness in Eastern Europe and South Caucasus - 2010

The highest amount of voluntary

contribution for a European

non-OECD member

Country data is included in OECD publications on

Agriculture, Tourism, ODA, Migration and Labor, Trade,

Private Pensions, Transports, Business Integrity etc.

“In 2016, Romania become an associate member in the BEPS Inclusive Framework(preventing Base Erosion and Profit Shifting) , committing fully to the implementation of the 15 actions initiated by the OECD. Also, Romania's participation in OECD projects is very important from the point of view of tax administration and tax legislation, in order to ensure the conformity of the Romanian legislation with international standards and best practices developed by the OECD.”

Ionuț Mișa, Minister of Public Finance

Like-mindedness

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Romania is an established democracy, with a functional market economy and is governed by the rule of law and respect for human rights. The EU membership proves Romania’s capacity to effectively implement complex and ambitious rules and policies. This provides the prerequisite for a swift and smooth alignment to the OECD standards.

The considerable size of Romania’s economy – the largest non-OECD in the EU, the significant potential of economic growth and the long-term macroeconomic stability of Romania are cogent arguments for accession.

The Human Development Index (HDI) of 0.802 places Romania in the top-tier category of countries with a very high HDI.

Romania ranks 14th in the 2016 Bertelsmann Transformation Index.

Transparency International corruption perception index for Romania provided a relevant rise of the trust showed by the economic and social partners, ranking 57 in 2016, as compared to 59 in 2015.

Romania, the largest non-OECD economy in the EU, displayed in recent years one of the highest economic growth rates in Europe (3.9% in 2015, 4,8% in 2016) as well as one of the lowest Debt/GDP ratios in Europe (38%), with a positive outlook.

The nominal GDP per capita, in euros, has increased 5 fold between 2000 and 2016.

The GDP growth in Q1 2017 was 5.7% as compared to the same quarter of the previous year – the highest in the EU.

The remarkable performance of the GDP

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Romania GDP Growth RateForecast 2016-2020GDP Growth Rate in Romania is expected to be 0.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Rate in Romania to stand at 0.90 in 12 months time. In 2020, the Romania GDP Growth Rate is projected to trend around 0.60 percent.

Romania GDP per capita PPPForecast 2016-2020GDP per capita PPP in Romania is expected to be 20513.60 USD by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In 2020, the Romania GDP per capita PPP is projected to trend around 21684.94 USD.

Romania GDP Growth RateForecast 2016-2020GDP in Romania is expected to be 183.66 USD Billion by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In 2020, Romania’s GDP is projected to trend around 211.00 USD Billion.

Relevant Indicators

‘Since 2004 onwards, Romania actively seeks its accession to the OECD as a major goal on our path to inclusive and sustainable economic growth. Part of this process, we look forward to furthering our work with OECD Steel Committee on the topical issue of excess capacity in the global steel sector. Also, participating as a member of the Working Party on Shipbuilding is a global recognition of the potential we have and is a mean of promoting this industrial segment with a share in national economy.”

Mihai Fifor, Minister of Economy

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Business Environment

Romania is a highly attractive market for foreign direct investments especially since 2004.

It has recorded two peaks of over EUR 9 bn. in 2006 and 2008, as well as inward flows of approx. EUR 5.2 bn. yearly in 2004 and 2005.

Moreover, since 2011, the trend remained constantly ascending, reaching up to EUR 4.1 bn. in 2016.

Romania ranks 36th within the Ease of doing business ranking 2016 and 2017- among the most attractive economies worldwide.

Romania ranks 34th in the 2016 WIPO Global Innovation Index2015

WGI: Regulatory Quality – Romania scores 72/100

Romania Competitiveness IndexForecast 2016-2020Romania scored 4.30 points out of 7 on the 2016-2017 Global Competitiveness Report published by the World Economic Forum. Competitiveness Index in Romania averaged 4.13 Points from 2007 until 2017, reaching an all time high of 4.32 Points in 2016 and a record low of 3.97 Points in 2008.

Romania ProductivityForecast 2016-2020Productivity in Romania averaged 86.14 Index Points from 1995 until 2017, reaching an all time high of 156.80 Index Points in the fourth quarter of 2016.

”Romania will have the opportunity to be included in databases and sectoral reviews of the OECD and to increase its reform pace, including by the finalization of a legal framework for public-private partnerships and a new philosophy in approaching and developing FDI projects. Our bilateral economic partnerships with OECD states will be entering a new stage, impacting directly our attractiveness in countries where the potential for trade and investment was not enough explored or used.”

Ilan Laufer, Minister for Business Environment, Commerce and Entrepreneurship

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Integrity, Anti-Corruption, Transparency

Romania has become an internationally acknowledged performer and an exporter of best-practices

Actively involved in the Council of Europe monitoring mechanism and participant with experts in their peer reviews. Romanian experts are members of the GRECO and Warsaw Convention bureaus;

Actively participating in UNCAC working groups and was involved in the voluntary pilot review program, the predecessor of the implementation review group;

Part of the Regional Anti-Corruption Initiative (RAI), where it plays a significant role, as a potential donor for EU candidate countries;

Romania is the vice-president of the European Partners against Corruption/European contact-point network against corruption and also a founding member of the International Anticorruption Academy.

Constantly improving our rankings and scores

2016 World Justice Project Rule of Law Index – rank 32 Romania was the biggest mover in the region’s rankings (EU+ EFTA+ North America), rising 4 positions.

2016 Freedom House Index - score 84/100.

2016 (TI) Corruption Perceptions Index - rank 57 (constant improvement since 2008, when Romania ranked 70)

2015 WGI: Control of Corruption – ranked 58

2015 WGI: Rule of Law - ranked 61.

Romania Corruption IndexForecast 2016-2020Romania scored 48 points out of 100 on the 2016 Corruption Perceptions Index reported by Transparency International. Corruption Index in Romania averaged 35.42 Points from 1997 until 2016, reaching an all time high of 48 Points in 2016.

Romanian Justice minister and OECD Secretary General launching discussions on a Plan for enhancing Romania’s legislative framework for combating foreign bribery.

“We have proven that we are both willing and able not only to effectively detect, investigate and prosecute corruption cases, but also to share our expertise in finding adequate means to diagnose and prevent corruption. This makes us confident that Romania can add value to the OECD Working Group on Bribery, at both operational and policy levels.”

Tudorel Toader, Minister of Justice

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Romania and the OECD Anti-Corruption Network

”To help law enforcement practitioners from Eastern Europe and Central Asia in these challenging tasks, the ACN launched its Law Enforcement Network in 2010 in Bucharest. The Network will continue providing a useful framework for the law enforcement practitioners from the region, and will facilitate their co-operation with their colleagues from OECD countries and from other regions”

Anca Jurma, Chief Prosecutor for International Cooperation, DNA, Romania

and Chair of the OECD/ACN Law-Enforcement Network

Romania is an active participant in the OECD Anti-Corruption Network for Eastern Europe and Central Asia/ACN;

Romania currently chairs the ACN Law Enforcement Network (LEN);

Under the ACN Istanbul Action Plan, Romanian experts participate in monitoring the implementation of the international anticorruption standards and issuing recommendations. They also contribute to thematic studies on topics such as: foreign bribery offence, liability of legal person for corruption, mutual legal assistance investigation and prosecution of corruption offences;

In 2016 Romania contributed to the ACN Business Integrity in Eastern Europe and Central Asia Study, subsequently disseminated nationwide through the National Anticorruption Strategy cooperation platforms;

According to the ACN Independent Evaluation of the Implementation of the 2012-2015 National Anti-Corruption Strategy in Romania( 2016), ”implementing mechanisms such as cooperation platforms with stakeholders and thematic evaluation missions coordinated by the [Romanian] Ministry of Justice are innovative tools that should be disseminated as best practice internationally”.

In 2014, as chair of the South-East European Cooperation Process, Romania co-hosted the Regional Anticorruption Conference with participation from over 25 states, the EU and the OECD

“Promoting a competitive, correct and corruption-free business milieu is one of the specific objectives of the Romanian government and we are confident that Romania is capable to contribute substantially to the anti-bribery efforts of the OECD.”

Raluca Prună, Former Minister of Justice

March 2016

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Engagement with the OECD at all levels

“Going forward, the OECD stands ready to further deepen and broaden its relationship with Romania. Adherence to OECD instruments, international comparisons, peer learning and peer pressure can help a country move faster towards its own policy priorities. The OECD stamp of approval also carries an intangible value. People and businesses trust governments that are transparent, fair and innovative. The OECD can help you earn that trust.”

Angel GurríaSecretary-General of the OECD

June 2016

Constant Political CommitmentThe Accession is a goal of strategic importance, embraced widely. The Government at all levels, the political parties, civil society, business and academic sector, social partners and media agree that joining the OECD is a real incentive to push forward reforms and streamline the national legislation and standards with those promoted by the organisation.

All Government programs after 2004, including the Government Program for 2017-2020, state the objective of accession to the OECD among the priorities of Romania`s foreign and economic agenda.

Romania - OECD meetings at Prime-Minister level

Institutional coordination:

Inter-ministerial meetings to coordinate national engagement with OECD took place in Romania as early as 2010, under the guidance of the Ministry for Foreign Affairs. On September 1, 2016, the Inter-ministerial Committee for Romania’s relations with OECD was established formally within the General Secretariat of the Government.

Around 30 ministries and agencies participate in the Committee. The Committee is chaired by a State Secretary nominated by the Prime-Minister as the Government’s Representative for OECD affairs. The Committee has a mandate to strengthen the relations with the OECD and to align the reform agenda with OECD recommendations resulting from peer reviews and consultations.

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Nation-wide Support

Mugur Isărescu, Governor of the National Bank of Romania: ”Over the time, the standards and best practices established by the OECD have represented for us, at the National Bank of Romania, a model that we always keep in mind and constantly refer to. (…) The National Bank of Romania fully and strongly supports Romania’s accession to the OECD”

Mircea Geoană, former President of the Romanian Senate, former Foreign Minister, on the OECD accession process: ”We still have some work to do, we still have governance issues, reputation issues and corruption issues, but we have something else that is called a will to excel and surpass ourselves. A will to advance on fast-forward and to be honest brokers in this exercise”

Dragoș Neacșu, CEO, Erste Asset Management: ”The Romanian citizen will be the main beneficiary of a shift in institutional behavior and stakeholder culture, and a strengthening of the public-private partnership (as a result of Romania’s OECD membership n.red). It will also benefit from public policies that will be formulated coherently, beyond electoral cycles and financed on predictable and sustainable grounds”

Radu Deac, President of European League for Economic Cooperation Romania: ”Accession to OECD is probably the most important strategic goal of foreign policy that was supported through a national effort, involving both political factors, and other society stakeholders. Indeed, if we were to talk about consensus, in this case, it exists”.

Statements made at the NBR Romania-OECD seminar, May 18, 2017

Letters of support from:Coaliția pentru Dezvoltarea României - Major investors’ associationRomanian Chamber of Industry and CommerceNational Union Bloc - one of the largest trade union associations

(selection)

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Global Profile and Regional Impact

Member in all relevant global and international organizations (including as founding member): UN system, EU (Romania will hold the Presidency of the EU Council in 2019), NATO (hosted the NATO summit in 2008), WTO, World Bank, IMF, EBRD, Council of Europe, OSCE, ASEM.

Strong Regional PresenceEffectively engaged in initiatives, processes and structures of regional cooperation, with a diverse and complex profile and horizon, from Southeast and Eastern Europe to Caucasus and Central Asia. Founding member in all regional organizations (BSEC, CEI, RCC, SEEIC, TRACECA, RACVIAC, etc.). Together with Austria, Romania co-initiated the Danube Strategy which currently gathers 14 participating states. Romania is an active member of the EU Eastern Partnership Initiative.Romania’s regional role and expertise can provide a useful contribution to the enhancement of OECD policies and projects in the Black Sea area. Romania is an ODA donor country and an active promoter of intra-regional trade flows. It may contribute to supporting, promoting and spreading the OECD values and interests in all fora, especially at regional level (Western Balkans, Black Sea, Caspian Sea, Danube area) where Romania’s expertise is well known and appreciated.

Romania supports actively the OECD SEE regional programme

Regional expertise sharing:

As an Associate in the OECD Competition Committee, Romanian has contributed to the peer learning process within the Committee, the Global Forum and the Budapest OECD Regional Centre for Competition. It shared its expertise on fighting bid-rigging in public procurement and competition advocacy in annual seminars in FYROM, Russia, China and Serbia.

Romania has been an active participant in the OECD-led Task Force for the Implementation of the Environmental Action Programme for Central and Eastern Europe (EAP)

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Sharing Its Own Experience

Future Actions

“It [accession to NEA] reflects your impressive research capacities and human capital. It recognises that you share the values of NEA Membership, responding to growing energy needs, while ensuring security and safety and addressing climate change”.

Angel GurríaSecretary-General of the OECD

June 2017

Voluntary contributions amounted to more than 600.000 Euros for OECD Outlooks on Black Sea area countries (BSECAO, BSECAI), Investment Compact for S-E Europe (Romania participated in the “Investment Compact for SEE” since 2002 and in the OECD GRS SEE regional program).

Romania is a CRID member and hosts an OECD Information Centre in Bucharest.

Romania has Strategic Partnerships with 9 OECD member countries: USA, France, Italy, Hungary, Korea, Poland, Spain, UK and Turkey.

Participation of Romanian experts in peer reviews:

Competition peer review of Kazahstan (2014); Anti-Corruption Review of Azerbaijan (2016), Full membership in the Peer Review Group of the Global Forum on Transparency and Exchange of Information on Tax Matters (2017) 2012 DAC peer review of Finland

Projects planned for 2017/mid 2018: Ministry of Foreign Affairs: ELS study in the field of migration Ministry of Education: PISA and TALIS 2018 General Secretariat of the Government: Public Governance Project on open and digital government and integrityMinistries of Economy and Finance: Economic SurveyCompetition Council: Competition Assesement Review, phase 2National Bank of Romania: participation in the Working Party on National Accounts and Working Party on Financial Statistics.

Technical Assistance for MoJMinistry of Justice continued interest to pursue OECD Action Plan to enhance Romania’s cooperation with WGB. In this regard, Romania received a roadmap that provides the steps needed to be taken in order to implement the action plan.

Amongst these stages, there is also a preliminary full analysis of the Romanian legislation.

”The maturity and visibility of the relations between Romania and OECD have increased significantly over the last two decades, and also led to a wide support from the private sector and general public in my country. Romania has built a solid profile at OECD, contributing the largest voluntary financial assistance among the OECD non-member states and also as the largest non-OECD European econo-my. We are very well positioned to actively promote OECD standards and values in our region and beyond”.

Theodor Meleșcanu Minister for Foreign Affairs

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In the wake of its 100 year anniversary, Romania has been gathering momentum and is now prepared for its next qualitative transformation.

Romania is today the largest economy of one of the most dynamic regions of the continent and not only. A century-long nexus of Eurasia, Central and Eastern Europe is still bound to play its most remarkable strategic role as the 21st century unfolds.

Determinately attached to the values of the OECD and its strong historical ties in Middle East, Asia and Africa, Romania’s potential within the OECD is a valuable asset.

All images used are for illustrative purposes. The images used in this material are from different sources including OECD, Government of Romania, Shutterstock.

2017 | Secretariatul General al Guvernului