Social Capital and Socio Economic Development the case of Romania’s NW and NE Region PH.D Elena Porumb BABEŞ-BOLYAI UNIVERSITY CLUJ NAPOCA, ROMANIA AAG Conference Boston MA April 2008 [email protected]April 15 2008 April 15 2008 1 AAG Boston MA AAG Boston MA
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Social Capital and Socio Economic Development the case of Romania’s NW and NE Region PH.D Elena Porumb BABEŞ-BOLYAI UNIVERSITY CLUJ NAPOCA, ROMANIA AAG.
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Social Capital and Socio Economic Development the case of Romania’s NW and NE Region
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Comparison between regionsComparison between regions
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Comparison between regionsComparison between regions
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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
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NW Regional ProgrammingNW Regional Programming
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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
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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
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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
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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
Patterns of interest intermediation-representation
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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)
Patterns of interest intermediation-representation
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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
Patterns of interest intermediation-representation
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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
Patterns of interest intermediation-representation
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
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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
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- 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:
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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
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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.
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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;