social capital and socio economic development the case of romania’s nw and ne region

Social Capital and Socio Economic Development the case of Romania’s NW and NE Region

PH.D Elena PorumbBABEŞ-BOLYAI UNIVERSITY

CLUJ NAPOCA, ROMANIA

AAG Conference Boston MA April 2008 [email protected]

April 15 2008April 15 2008 11AAG Boston MAAAG Boston MA

April 15 2008April 15 2008 AAG Boston MAAAG Boston MA 22

European Regional PolicyEuropean Regional Policy

National Strategic

Reference Framework

NSRF

Intervention of the socio-economical parts

O.P. ESF

O.P. ERDF

O.P. ERDF + Cohesion Fund

Approval of the

Operational Programmes

European Regional Policy

Commission presentationNegotiations with the European

Commission Services

National Strategic

Document


Frame of Regional PlanningFrame of Regional Planning

MONITORING COMMITTEECommunity Support Frame

MANAGEMENT AUTHORITYCommunity Support Frame

Public Finance Ministry

MONITORING COMMITTEES

SOPEconomicalCompetitivity

SOPTransport

Infrastructure

SOPEnvironmentInfrastructure

SOPHuman

Resources Development

OPAdministrative

CapacityDevelopment

ROPRegional

Development

OPTehnical

Assistance

MANAGEMENT AUTHORITIES

MTEMinistry of Trade andEconomy

MTCTMinistry of Transport

Constructionsand Tourism

MEAMinistry of

Environmentand Water

MLSSFMin of

Labor Social Solidarity

and Family

MAIAMinistry of

Administrationand Internal

Affairs

MEIMinistry of European

Integration

MPFMinistry of

PublicFinance

INTERMEDIARY BODIES

ANIMMCMEdCMCTIMERNAY

8 LPRA MEdRNALFO

8 RDA

END BENEFICIARIES


Regions in RomaniaRegions in Romania

April 15 2008April 15 2008 AAG Boston MAAAG Boston MA 55Fig. 1Counties of the North-West Region

Counties of the NW Region?Counties of the NW Region?


• the main characteristics correspond to the national average level;

• the only Pilot project in Regional Development Policy (RDP) at regional level;

• corporate social responsibility and community-oriented context;

• networks for regional development policy cooperation through the public/ private/ NGO’s partnership evolution;

• favourable arena for debating conceptual and best practices in RDP;

• labour force adequate for knowledge-based economy and new technologies (100.000 students);

• tradition for multi-cultural, ethnicity and religiosity

Why the NW Region?Why the NW Region?


Network of institutionsNetwork of institutions

Total institutions:

77

EU-level:

1

Central administration:

10

Regional administration:

3

Local administration:

24

Private institutions:

39


Freeman’s Degree Centrality Measures:

• Network Centralization = 21.74%

• Heterogeneity = 2.50%. Normalized = 1.21%

• Network Centralization Index = 24.14%

Network centralityNetwork centrality


ECR

MAI

MCTI

MEC

MEdC

MFPMIE

MMGA

MMSSF

MTCT

MAPDR

ADRNV

ARMediu

ADR

AJOFMBH

AJOFMBN

AJOFMCJ

AJOFMMM

AJOFMSJ

AJOFMSM

CCBH

CCBNCCCJ

CCMM

CCSJ

CCSM

PREBH

PREBNPRECJ

PREMM

PRESJ PRESM

PRIMCJN

PRIMBI

PRIMOR

PRIMBM

PRIMZA

PRIMSM

CCIABH

CCIABN

CCIACJ

CCIAMM

CCIAMS

CCIASJ

CCIASM

UBB

USAMV

UTCN

ApaCJ

BiblOG

CAR

ALFA

Civitas

CLR

CRCR

EDC

ERCD

EUR

FDSCFDSE

FNASR

FPBH

FROFSD

FTTCJ

GEA

LAPUS

Patrir

PWC_RO

RBC

SME_MM

AFIVCJ

AIRDD YAPCJ

CAT

IER

DPSCBN

Metric MDSMetric MDS


SNA county variationSNA county variation

Cluj County Sălaj County


• the main characteristics correspond to the national average level;

• favourable institutional and legislative framework for regional development policy;

• strong emphasize on social responsibility;

• networks for regional development policy cooperation;

• qualified labour force adequate for knowledge-based economy;

• regional development strategy in close relation with strengthening the social cohesion;

• the only region with positive natural increase (about 1.0‰)

Why the NE Region?Why the NE Region?


NE RegionNE Region


Network of institutionsNetwork of institutions

Total institutions:

33

EU-level:

1

Central administration:

6

Regional administration:

4

Local administration:

11

Private institutions:

11


Freeman’s Degree Centrality Measures:

• Network Centralization = 39.08%

• Heterogeneity = 5.56%.

• Normalized = 2.60%

Network centralityNetwork centrality


Metric MDSMetric MDS

ECR

MAI

MEF

MEdC

MIE MMDD

MDPWH

ADRNE

ARMediu

ADR

SAPARD

AJOFMIS

AJOFMBC

AJOFMVS

CCSV

CCIS

CCBC

PREIS

PREBC

PREVS

PRIMIS

PRIMBC

CCIASV

ARNSV

BURSV

MANPU

PRODL

COLTCARSV

TANEL

AXICON

REGCO

TEHNO


Social capitalSocial capital


EU Values OrientationEU Values Orientation

EU Values Orientation

61

6975

36

5853

38

52 50

32

4043

2724

33

0

10

20

30

40

50

60

70

80

SW NW Bucharest

Trusting EU

Content in life ingeneral

General personaloptimism

Opinion regardingcountry economic dev

Trust in justice


Comparison between regionsComparison between regions

Unemployment rate by Region

0

5

10

15

20

Years

Total TOTAL

- NORTH - EAST

- NORTH - WEST



GDP/inhabitant dynamics by regions

0

50000000

100000000

150000000

200000000

250000000

Lei Lei Lei Lei Lei Lei Lei

MU: Lei,lei RON

(from

Year 1998 Year 1999 Year 2000 Year 2001 Year 2002 Year 2003 Year 2004

Years

years

RO

L

Total

N-E

N-V

Bucuresti

© 1998 - 2007 INSTITUTUL NATIONAL DESTATISTICA


Connection GDP – EU trustConnection GDP – EU trustLow PIB in ROMANIA

No Trust in EU

20 13 67

0% 20% 40% 60% 80% 100%

no trust no opinion trustful


NW Regional ProgrammingNW Regional Programming


0%

20%

40%

60%

80%

100%

1995 2000 2001 2002 2003 2004

Structure of regional economy

Health and social assistance

Education

Public administration and defence

Real estate

Financial services

Transportation, logistics andcommunicationsHotels and restaurants

Commerce

Constructions

Electric, thermal energy, natural gases,waterProcessing industry

Extraction industry

Industry

Fishing aqnd fishery

Agriculture, hunting and forestry

NW Region – economic structureNW Region – economic structure


0

2

4

6

8

10

12

14

16

1999 2000 2001 2002 2003 2004 2005

ROMANIA

REGIUNEA NV

BIHOR

BISTRITA NASAUD

CLUJ

MARAMURES

SATU MARE

SALAJ

NW Region – unemployment rateNW Region – unemployment rate


Local authorities and governmental agencies:

• Characteristics: Administrative conflict, insufficient use of funding opportunities.

• Interests and motivation: Getting more autonomy; access to more funding opportunities

• Potential and type of power: Authority power; community actions catalyst; future control of EU funds

• Implications and conclusions: Enhancement of an articulate strategy for local development

Patterns of interest intermediation-representation


Companies

• Characteristics: Low interest in marketing approach and use of intangible resources

• Interests and motivation: Strategic alliances and facilities (technological clusters)

• Potential and type of power: Resource management power (HR brands, marketing)

• Implications and conclusions: Development of competitive marketing mix and PR strategy; Lobby activities



Local and Foreign Investors

•Characteristics: Low technologic transfer and added value; low investment/investor

•Interests and motivation: More facilities; economic and administrative stability

•Potential and type of power: Financial power

•Implications and conclusions: Development of networks (local authorities and foreign investors)



Cultural and Academic Institutions

•Characteristics: Strong multicultural institutions; lack of sufficient and multiple funding

•Interests and motivation: Join cultural networks, co-organisation of scientific, cultural and educational events

•Potential and type of power: Information and knowledge power, catalyst power. A major feature of Cluj identity and image

•Implications and conclusions: Articulation of a strategic perspective based on European core values



Professional Associations

• Characteristics: not sufficiently active in networking

• Interests and motivation: Professional culture

• Potential and type of power: Expert and relation power

• Implications and conclusions: Training performance


Best Practices in Romania Social Capital and Civil Society 2.1. Regional impact on civil society development

ong in 1998 / population

1.0.8.6.4.20.0

pe

op

le w

ho

ga

ve 1

% /

po

pu

latio

n50

40

30

20

10

0

Transylvania

1.00

.00

Total Population

Rsq = 0.4092

Mures

Harghita

Cluj

Covasna

Figure 6 The relationship between the number of NGOs in 1998 (*1000/total population) and the proportion of those who gave 1% in 2004 (*1000/total population) at the county level.April 15 2008April 15 2008 3131AAG Boston MAAAG Boston MA

- The need of helping the SME, the promotion of tourism, the improvement of the environment contributing to the improvement of region image for the potentials Romanian and foreign investors- Promotion the cooperation between strategic investors and local businesses from region- create new professions at the same level of the world evolution - encourage the development of interregional and international economical relationships

- high development potential in the research- development- innovation field- varied tourist potential - existence of foreign investors on the labor market- better paid jobs- the jobs offer is higher then the jobs demanding - encouragement of local initiativesattract the foreign investors by offering financial stimulations as a financial source of implementing improvement of economical policy

of the region.

The North- Eastern Region

The North West Region

Conclusions


The North- Eastern Region The Private

InitiativeDynamic

- Early industrial development (easy industry, automobile industry, electrotechnics etc.)- good environment for the production foreign investments - the lack of development infrastructure - the development of tourism, general services, transports, professional services.

- not adapted economy structure - low economical productivity and efficiency- the main activity: agriculture- decreasing trend of private initiative- reduced weigh of SME in the production and services sectors- low quality of serviced delivered to population

The North West The North West Region Region


- The state sustains some measures which will end to “increase the life standard of community and the sustainable development of the Region” - Strategic directions: The development of businesses and entrepreneurship; the development of human resources; the promotion of the potential development of the Region- Increased weight of population with law training level

- general development of the region- good business environment - competitive economical spirit- lots of foreign entrepreneurs - high trained level of population - trained labor forced - the region unemployment rate is lower than the national one.

The North-Eastern Region

The Western Region Conclusions:


ARC as relationships broker

Figure 7: Overview of Arc’s approach and areas of workApril 15 2008April 15 2008 3636AAG Boston MAAAG Boston MA

A) Between nonprofits involved in community fundraising - exploring opportunities for

creating a more structured space for interaction and common action as part of a net-

work of organizations involved in community fundraising.

B) Between nonprofits and businesses interested in supporting a certain field of work –

identifzing common interests such as – at national level preventing measures for traffic

safety, interest of national grant-making and community development organizations to

support long-term reconstruction process in communities affected by floods in 2005

C) At the level of four local communities involved in community foundations development

pilot program - test need and feasibility of a shared and transparent framework for mobili-

zing community resources, based on involvement of key stakeholders – NGOs, companies

and government. April 15 2008April 15 2008 3737AAG Boston MAAAG Boston MA


ConclusionsConclusions

Administrative absorption capacity is influenced by:

quality of the programming documents: OP, PC, manuals for applicants;

quality of the information campaigns regarding funding possibilities;

the existence of a project pipeline;

capacity to carry out the implementation process per se at MA/IB level; this involves the existence of appropriate procedures and the necessary human resources

Concluding remarks

•no clear differences between old, new, and the former communist countries, with one important exception.

•length of democratic rule does not have a significant effect on the quality of social participation.

•as a former communist country Romania - caught in the middle in the debates on social capital in this part of the world.

•differences in social capital might be expected according to age groups as different gene-rations have different resources available to them., or to social and educational groups – poorer communities rely on the intense informal relationships associated with bonding social capital, while wealthier communities are associated with more formal organisational participation.



ConclusionsConclusions

The current institutional framework does not admit/legitimise specific attributions, competences or responsibilities for

regional development at regional level

Major difficulties for local/regional communities in transposing into practice a development vision (the development is the result of individual, separate actions) ;

Difficulties in developing and sustaining projects with regional impact and interest;

social capital and socio economic development the case of romania’s nw and ne region

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