HUMAN DEVELOPMENT ISSUES IN ROMANIA Manolescu Aurel Academy of Economic Studies of Bucharest, Faculty of Management,
[email protected] Marina Cristian - Virgil Academy of Economic Studies of Bucharest, Faculty of Management,
[email protected] Puia Ramona Stefania Academy of Economic Studies of Bucharest, Faculty of Management,
[email protected] During the last sixteen years, Romania, like other south-eastern European countries, import managerial principle, methods and techniques from the western developed management systems. It is important to notice, that in this period, the managerial practices were influenced by the multinational companies. The recent managerial evolutions and the socio-economical, political, juridical and technological factors had directly consequences on the human development level in Romania. Key words: human development index, Romania, GDP, adult literacy rate, gross enrolment ratio, life expectancy.
Introduction Since January 2007, Romania became member of the European Union, but 74% of the urban population with higher education consider that Romania was not ready yet for the adhering process. The Romanian companies’ managerial staffs also sustain this hypothesis, 75% of them considering that Romania doesn’t have the necessary tools to face the European Union integration. A lot of Romanian companies consider 63 the competition a threat, although they should understand it as a positive economic effect . These are the main arguments to consider the necessity of an x-ray of the main managerial practices used in Romanian companies.
Human development indicator in Romania 64
According to the Human Development Global Report 2004 , Romania was the 69th of the 177 countries that formed a hierarchical system based on the Human Development Indicator. The Human Development Index registered the value of 0.786 and so Romania was placed near the countries with a middle level of human development. The value of the Human Development Index is over the average registered by the Latin America (0.777), the Eastern Asia and the Pacific area (0.740) and the Arabian countries (0.651). Though, the Romanian indicator value is under the average registered in the Central and Eastern Europe (0.911). During the last four years, the Romanian Human Development Index registered a lasting growth in 65 value, although the general tendency was under the growth rhythm of the region . 66
According to the Human Development Report 2007-2008 , Romania is the 60 country in a total of 177 countries where data are collected and the Human Development Index is calculated. In 2005, the Human Development Index registered the value of 0.813 and so Romania was placed near the countries with a high level of human development. Generally, in Western and Central Africa there is a low rhythm of human growth (table 1). The countries with the highest rhythm of human development are the Northern Countries; three of them, Island, Norway and Sweden are in the first six places in the world. (Table 1).
63
*** Socio-economic medium in Romania in the perspective of the European Union integration, the 5 of April 2006, www.gallup.ro; 64 *** The National Human Development Report 2003-2005, www.undp.org , pg. 21; 65 *** The National Human Development Report 2003-2005, www.undp.org, pg. 21; 66 *** Human Development Report 2007/2008 - Fighting climate change: Human solidarity in a divided world, Published for the United Nations Development Programme, New York, SUA, 2007 385
Level
Island
0,968
1
Norway
0,968
2
Australia
0,962
3
Canada
0,961
4
Ireland
0.959
5
Sweden
0.956
6
Switzerland
0.955
7
Brunei
0,894
30
Barbados
0,892
31
Seychelles
0,843
50
Oman
0,814
58
Trinidad Tobago
0,814
59
Romania
0,813
60
Medium human development (HDI 0,500 – 0,799)
Thailand
0,781
78
China
0,777
81
Egypt
0,708
112
Uganda
0,502
155
Senegal
0,499
156
Rwanda
0,452
161
Ivory Coast
0,432
166
Sierra Leone
0,336
177
High human development (HDI 0.800)
HDI 2005
Low human development (HDI 0,500)
Country
Table 1 The Human Development Index in different countries67 The data from the Human Development Global Report shows that each component of the Human Development Index in Romania increased in value since 1995. (Table 2) Years
1995
200068
200569
Indicators
67
GDP (USD per capita)
6,095
5,750
9,060
Adult literacy rate (%)
96,9
97,0
97,3
*** Human Development Report 2007/2008 - Fighting climate change: Human solidarity in a divided world, Published for the United Nations Development Programme, New York, SUA, 2007, pag. 230-232 68 *** Raportul Naional al Dezvoltrii Umane 2003-2005, www.undp.org, pag. 22; 69 *** Human Development Report 2007/2008 - Country Fact Sheets – Romania; *** Human Development Report 2007/2008 - Fighting climate change: Human solidarity in a divided world, Published for the United Nations Development Programme, New York, SUA, 2007 386
Gross enrolment ratio (%)
61,6
66,5
76,8
Life expectancy (years)
69,4
70,5
71,9
Human Development Index (HDI)
0,759
0,767
0,813
Table 2. Romania’s Human Development Index, 1995 - 2005 The educational issue registered some improvements (table 2), that showing the interest of the Government and of other organisations to invest in the human capital. The most important progresses were registered with the adult literacy rate, in comparison with the education index. During 1995 and 2005, the Gross Domestic Product continuously decreased, while the life expectancy index fluctuated. Beginning with 2000, at each of the two indicators levels (Gross Domestic Product and Life Expectancy Index) we can notice a continuous growth (Table 2). Between 2000 and 2005, Romania registered a sustainable economic development revealed by the evolution of the GDP per capita which registered a growth of 1.57 in 2005, in comparison with the year 2000. During 1995-1999 was dominated by a series of economic difficulties that Romania dealt with in the process of transition to market economy. In that period the restructuring process reached a maximum especially because of the reorganisation of a large number of state enterprises and the decreasing of state budget subventions. Beginning with 2000, these measures brought positive effects that registered favourable economic evolutions. Regarding the life expectancy, according to the data presented in the Human Development Report 20072008, Romania is the 76th country in a total of 177 countries. The biggest life expectancy index is registered by Japan with a record of 82.3 years and the smallest by Zambia (40.5 years). In Romania, the life expectancy is 75.6 years for women and 68.4 years for men. Surprisingly, the highest adult literacy rate is registered by Georgia (100%) and the lowest in Burkina Faso (23.6%). In Australia there is the gross enrolment ratio (113%), while in Niger is the lowest value for this indicator (22.7%). The countries with the highest GDP per capita are Luxemburg (60.228 USD per capita), SUA (41890 USD per capita) and Norway (41420 USD per capita). The smallest value for GDP per capita is registered in Malawi (667 USD per capita). In Bulgaria, the country that joined European Union in the same time with Romania, there is a higher index of human development than in Romania. In 2002, the Human Development Index was 0.796, also higher than the value registered in Romania 0.786 (Table 3). In comparison with other Central and Eastern Europe countries, Romania has a higher position than Turkey and Ukraine (Table 3). The annual rhythm of economic growth registered in Romania between 1990 and 2005 was of 1.6% per year, while in the same period in Bulgaria there was a lower rhythm of 1.5% per year. In countries like Croatia (2.6%), Czech (1.9%), Hungary (3.1%), the annual rhythm of economic growth was higher than the one registered in Romania in the same period of time. In the Central and East Europe, Turkey registers the lowest value of the Human Development Index, but we can observe that, in the last seven years, Turkey reduced the deficit of human development and nowadays it is at the same level as Ukraine. In Hungary there is the highest value of the Human Development Index.
387
HDI 1995
HDI 200270
HDI 200571
Hungary
0,810
0,848
0,874
Croatia
0,798
0,830
0,850
Bulgaria
0,784
0,796
0,824
Romania
0,759
0,786
0,813
Russia
0,771
0,795
0,802
Ukraine
0,751
0,777
0,788
Turkey
0,713
0,751
0,775
Country
Table 3. The Human Development Index in the Central and Eastern Europe countries A comparative analyse of the Human Development Index values registered at the level of the Central and Eastern European countries reveals the direct relation between the economic performance of the country and the values of the Human Development Index. 72
There are also some indicators that can reveal the human development level registered in Romania: •
The women membership in politics that registered in 2002 the value of 9.3% of the whole number of parliamentary members. In 2007, this indicator registered the value of 10,7%.
•
According the data from the Human Development Report 2007-2008, the percentage of women that occupy a management position in the central administration is 12.5%, comparative with Germany, the country that leads from this indicator point of view, 46.2% of the employees in public administration being women.
•
In 2007 there was a high incidence of women in politics, 11.2% of deputies being women and 9.5% senators.
•
31% of the women are working as leaders and officers in public administration and socialeconomic departments.
•
56% of the women have intellectual and scientific job places.
during 2002-2007, the share of the women’s earning in the men’s earnings was rising from 0,58% to 0,69%. We must not analyse the Human Development Index as a pure mathematic index that incorporates in a single number the complex and dynamic realities of the human development. We must understand it in tight relation with the country capacity to develop a coherent future strategy. •
Conclusions The most important conclusion we can develop is that the Human Development Index is the expression of one country economic performance. Generally, the countries that developed their economies also increased their human development level. Certainly, this correlation is based on the purpose and the importance of 70
*** Raportul Naional al Dezvoltrii Umane 2003-2005, www.undp.org, pag. 24; *** Human Development Report 2007/2008 - Country Fact Sheets – Romania; *** Human Development Report 2007/2008 - Country Fact Sheets - Russian Federation; *** Human Development Report 2007/2008 - Country Fact Sheets – Ukraine; *** Human Development Report 2007/2008 - Country Fact Sheets – Bulgaria; *** Human Development Report 2007/2008 - Country Fact Sheets – Hungary; *** Human Development Report 2007/2008 - Country Fact Sheets – Croatia; *** Human Development Report 2007/2008 - Country Fact Sheets - Turkey 72 *** National Human Development Report 2003-2005, www.undp.org, pg. 25-26; 388 7
public policies in strengthening the link between economic growth and human development. Strong public institutions and a healthier and educated population create favourable conditions for human development.
References: 1.
*** Mediul socio-economic din România în perspectiva integrrii în UE, 5 aprilie 2006, www.gallup.ro; 2. *** Raportul Naional al Dezvoltrii Umane 2003-2005, www.undp.org; 3. *** Human Development Report 2004. Cultural liberty in today’s diverse world, United Nations Development Programme, New York, 2004; 4. *** Explaining Romania’s HDI rank change in Human Development Report 2004, www.undp.org.; 5. *** Human Development Report 2007/2008 - Fighting climate change: Human solidarity in a divided world, Published for the United Nations Development Programme, New York, SUA, 2007; 6. *** Human Development Report 2007/2008 - Country Fact Sheets – Romania; 7. *** Human Development Report 2007/2008 - Country Fact Sheets - Russian Federation; 8. *** Human Development Report 2007/2008 - Country Fact Sheets – Ukraine; 9. *** Human Development Report 2007/2008 - Country Fact Sheets – Bulgaria; 10. *** Human Development Report 2007/2008 - Country Fact Sheets – Hungary; 11. *** Human Development Report 2007/2008 - Country Fact Sheets – Croatia; 12. *** Human Development Report 2007/2008 - Country Fact Sheets – Turkey.
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