Economic activity (Participation) and Unemployment by Level of Educational Attainment-West Region (2009)..23 Figure 9:
Comparison Of value-Added Per Worker (2010) in West Region's Main Clusters...30 Figure 23-Exports Per capita (2007,2009, 2011)..31 Figure 24-Number of students enrolled in technical education (2011)..34 Figure 25-Number of students enrolled in foremen
FDI and Domestic Firm Survival Rates for Firms of 20 or More Employees (Share of Firms from 2006 and 2007 Cohorts Remaining in Business as of 2010)..45 Figure 34-Institutional framework
Unemployment rates (ages 15 and over) and growth rates of employment (ages 15-64), 2000-2011.19 4 Table 3:
86 5 Executive Summary I. The aim of the Europe 2020 Strategy, launched in 2010,
The annual growth rate of output per worker amounted to 15%in the 2000-09 period.
Second, economic activity is concentrated in a handful of sectors that represent about half the region's turnover and employment
and sharp drops in per capita gross domestic product (GDP) and employment during a 1 http://ec. europa. eu/research/innovation-union/index en. cf 6 crisis. Third,
and testing laboratories and the promotion of the auto cluster. For the textile cluster, it would be helpful to facilitate access to finance for the acquisition of new technologies.
In the tourism cluster, promotion and management of archaeological sites, promotion of regional spas as cross-border medical tourism destinations,
employment, education, research and innovation, social inclusion and poverty reduction, and climate/energy. Each EU country has adopted its own national targets in each of these areas.
and R&d bodies take the necessary measures to surpass the national targets, at least those related to employment,
The national Europe 2020 targets Employment rate(%)R&d(%of GDP) Emissions reduction (compared to 2005)(%Renewable Energy(%)Energy efficiency reduction(%)Early school leaving(%)Tertiary education(%)Reduction
8. promoting employment and supporting labor mobility; 9 In order to promote the harmonious, balanced and sustainable development of the Union,
1. Improving human capital through higher employment, and better social inclusion and education policies, 2. Developing modern infrastructure for growth and jobs, 3. Promoting economic competitiveness and local development,
WB staff calculations based on WDI data 27. During this period, the convergence process has trickled down at the regional level,
World bank staff calculations based on Eurostat data; Peer regions: aggregate peers as defined by ADR Vest PL 41,42, 43,51, 52;
The average compensation per worker in the West Region grew by 13 percent annually between 2000 and 2009 versus 12.2 percent for Romania as a whole and less than 11 percent for a set of similar regions in Europe;
Over the previous decade, the West experienced the highest growth in output per worker among the comparator regions
in 2009 fixed capital stock per worker in the West stood at only 57%of the EU average
and output per worker was still only one quarter of the EU average. This suggests that substantial scope remains for further productivity improvements,
Employment (in 1000 persons) by NUTS 3 regions (nama r e3empl95; Gross value added at basic pricesby NUTS 3 regions (nama r e3vabp95) 34.
but actually coincided with significant declines in overall regional employment. But it does not help explain how falling employment levels could coincide with a very tight regional labor market.
Table 3 highlights the West's low unemployment rate (along with North West and Bucharest) relative to European peers,
as well as its fall in employment levels. While the comparator group of similar regions also experienced strong decline in employment levels over this period
this process came along with a high and growing unemployment rate, at more than twice the level of the West.
Unemployment rates (ages 15 and over) and growth rates of employment (ages 15-64), 2000-2011 Unemployment rate Employment Growth (CAGR) 2000 2007 2011 2000-07 2007
Employment by sex, age and NUTS 2 regions (1 000) lfst r lfe2emp 20 35. In addition, demographic and migration trends also help to understand falling employment levels despite increases in productivity and low rates of unemployment.
As is the case in Romania as a whole, the population of the West Region has been in decline for more than a decade.
where the West has a comparative advantage in highly skilled workers (proxied those with a tertiary education).
however, the West faces a problem both with older workers retrenched due to restructuring of traditional industries like coal
and metals (particularly impacting Hunedoara and Caras-Severin) as well as younger workers that leave school without qualifications.
Participation rates among workers with the lowest education levels is less than half that of those at the highest (tertiary) levels in the West Region,
Economic activity (Participation) and Unemployment by Level of Educational Attainment-West Region (2009) Source: Calculations based on data from INS:
Activity, employment and ILO unemployment rates, at territorial level, by educational level, by sex and area, in 2009;
World bank staff calculation based on SBS data 40. Additionally, the West Region presents the second highest incidence of gazelles over total number of firms.
Gazelles, firms with at least a 25%turnover growth for 3 or more years, are of particular interest both because of their contribution to employment and as an additional indicator of entrepreneurship.
World bank staff calculation based on SBS data Source: World bank staff calculation based on SBS data 41. The sectoral specialization of the gazelles is slightly different than the distribution of firms overall.
While Western firms in general are concentrated mainly in service activities such as wholesale trade (14), %retail trade (10),
World bank staff calculation based on SBS data 42. The contribution of startups to productivity growth in West Romania is higher than the contribution of startups to productivity growth in Romania as a whole.
World bank staff calculation based on SBS data Source: World bank staff calculation based on SBS data Figure 15:
TFP Growth Decomposition in Romania By Type of Firm And by Region: 2005-2010 Source:
World bank staff calculation based on SBS data The West Regions'export performance is very positive in overall terms 43.
World bank staff calculation based on SBS data Source: World bank staff calculation based on SBS data 44. Overall, the West Region export performance is very positive:
export growth is sustained (Figure 18), particularly since 2009 and is driven by the performance of firms located in Arad
World bank staff calculation based on SBS data Source: World bank staff calculation based on SBS data III. 2. Main challenges Fruits of economic growth were distributed not evenly across the region 45.
The fruits of economic growth and convergence with Europe were distributed not evenly across the region. Already substantial inequalities in economic and social outcomes were exacerbated sharply over the past decade.
World bank staff calculations based on data from Eurostat: Gross domestic product (GDP) at current market prices by NUTS 3 regions purchasing power standard per inhabitant nama r e3gdp 02468 10 12 2005 2006 2007 2008 2009 2010
World bank staff calculations based on data from Eurostat: Gross domestic product (GDP) at current market prices by NUTS 3 regions millions of Euro nama r e3gdp 46.
World bank staff calculations based on data from Institute of National Statistics; Monthly gross wages at NACE 2 48.
Comparison Of value-Added Per Worker (2010) in West Region's Main Clusters Source: Calculations based on data from Structural Business Survey Note:
Specialization defined as the sectors with the highest location quotient for employment relative to the national context. 53.
and capturing greater employment opportunities. By contrast, in the Timis-Arad agglomeration, the challenge is managing the transition toward a more knowledge and skills intensive basis for competitiveness.
441), and in 2010 was the fourth region number of students enrolled in foreman education (523.
and 55%of employment in 2010 and the concentration of the West Region economic activity around them has increased between 2008 and 2010.26 25 Sectors are defined as 2-digit groups according to the NACE Rev 2 classification. 26 Drawing on the World bank
Main Economic Sectors in the West Region(%total) Turnover Employment Nace 2-digit sector 2008 2010 2008 2010 Manufacture of motor vehicles, trailers and semitrailers
World bank staff calculation based on SBS data. 57. The auto industry is by far the biggest employer in the region among manufacturing sectors with an importance in terms of total employment that is similar (17%)to the combined share (16.8%)of employment represented by all the other manufacturing sectors
listed in Table 7. Among the services sectors, wholesale and retail trade dominate the landscape in terms of turnover (9. 2%and 3. 8%respectively)
although transportation and construction are also relatively important in terms of employment (4. 1%and 3. 7%respectively).
less than 10 employees, 10-50 employees, 50-250,250-1000 and more than 1000. The West region shows the second highest share of very big firms (more than 1000 employees),
and the third highest of large ones (250-1000). In this region, 3. 18%of the firms have more than 250 employees, against 3. 41%in all Romania, 4. 72%in Bucharest, 3. 46%in the Center and only 2. 75%in the Northwest.
And these large firms account for more than 62%of total turnover. Comparable figures for Romania as a whole and for Bucharest-Ilfov are 59%and 57%,respectively (Table 10.
First, observations for which information on employment, stock of fixed assets, material costs or value added are missing
Second, observations with tangible fixed assets to employee and value added to employee ratios greater (smaller) than three times the standard deviation from the upper (lower) quartile in the corresponding 2-digit sector
And Shares by Size Categories in 2010 (with%change between 2008 and 2010 in parentheses)% of firms with Region Nb. of firms<10 employees 10 50 employees 50-250 employees
250-1000 employees>1000 employees All 41, 852 31.24 48.42 16.93 2. 82 0. 59(-10.4)(-0. 5)(-11.5)(-20.6)(-18.0)(-15.4) Bucharest-Ilfov 9, 894 28.93
Region<10 employees 10 50 employees 50-250 employees 250-1000 employees>1000 employees All 5. 52 12.55 22.19 27.94
and the majority of these plants located outside the Western borders (64.7%)belongs predominantly to small firms (0-9 full time employees) producing chemicals
World bank staff calculation based on SBS data. Table 11. Out of Region Plant Size of Firms Headquartered in the West Region (2010) Size(#employees) Plants Percent 0-9 168 64.7 10-49 58 23.0 50
-249 28 11.1>=250 3 1. 2 Total 252 100 Source: World bank staff calculation based on SBS data. 60.
Sectorial, firm and geographical concentration may lead to high volatility of value added growth and sharp drop of per capita GDP during a crisis. By contrast,
World bank staff calculations based on INS data Source: World bank staff calculations based on INS data 62. Moreover, export growth over the period 2005-2011 has been very reliant on the intensive margin,
i e. 75%of export growth came from incumbent exporters going to markets they already served and with no innovation in terms of product range.
World bank staff calculations based on INS data 63. There is a shift in destination markets within the EU
World bank staff calculations based on INS data 60 70 80 90 100 2005 2006 2007 2008 2009 2010 2011 Bucuresti-Ilfov
World bank staff calculations based on INS data 64. Overall, West Region exports are concentrated in relatively low-skill, low-sophistication industries like footwear, textile, rubber, wood,
World bank staff calculations based on INS data Increasing integration with regional value chains, leading to low local value addition 65.
This has contributed not only to significant investment and job creation, but has played an important role in integrating the West Region ever more tightly into the European economy. 66.
World bank staff elaboration based on INS customs level data 31 Taymaz, Erol, Ebru Voyvoda and Kamil Yýlmaz (2011.
World bank staff calculations based on INS data 68. While declining value added at sector level is a global trend
But more importantly these firms dominate the landscape, accounting for 90 percent or more of value added, employment,
firms with foreign ownership account for almost one quarter of all businesses in the West, around half of output and employment,
FDI and Domestic Firm Survival Rates for Firms of 20 or More Employees (Share of Firms from 2006 and 2007 Cohorts Remaining in Business as of 2010) Source:
and the potential to gain employment experience and opportunities abroad. 73. It is worth stressing
over and above the employment they create. This comes from the spillover of knowledge and technology into the regional economy.
through human capital (i e. through workers), through supply relationships, and through competition and demonstration effects (via market competition and joint activities).
employment growth and value added growth) are examined for each of the top 10 sectors. The 35 In this assessment
and simultaneously show a positive performance for at least two of the remaining outcome variables under analysis (employment,
a well-developed labor market, producing highly skilled but relatively cheap technical experts; and a system of local R&d and innovation to develop prototypes
This will require investments to improve the links between universities (as well as vocational training facilities) and employers.
The result is high levels of structural unemployment (and low participation rates) and skills mismatches at all levels of the labor force.
and that they are successful in finding employment. Skills (3: Entrepreneurial and business management skills 95.
as well as improving general connectivity to allow businesses, workers, and consumers in the region to benefit from access to a larger market.
In addition, transportation of workers is problematic for large scale manufacturing activities. A large proportion of blue collar or low skilled workers commute to the production plant from surrounding areas
and often there are no public transportation options available to them. Large companies provide transportation for employees using company buses but this leads to increased production expenses and traffic congestion. 100.
In this context, local authorities could begin by enhancing the quality of the roads in rural and remote areas.
and outside it. 53 and of their employees would make the region more attractive to potential investors.
and Innovation Executive unit for financing research, development and innovation National institutes for research and development in fields such as:
update and modernize the curricula for theoretical education, vocational training and lifelong learning in order to answer to the demands of the business sector in the region.
Second is by extending the scope and strengthening the role of the Regional Pact for Employment and Social Inclusion.
It works in partnership with Irish enterprises to help them start, grow, innovate and conquer market share on global markets.
and processes that will lead to job creation and increased exports. Enterprise Ireland is a body corporate established by the Industrial Development (Enterprise Ireland) Act
Enterprise Ireland fully complies with Government policy on the pay of Chief executives and State Body employees and with Government guidelines on the payment of fees to Board members.
The Executive Committee manages and controls the administration of Enterprise Ireland's budget, monitors progress against organizational targets,
lower food processing costs and help to provide more robust employment in rural areas. 121. Public policy should also strengthen basic and applied research.
It is still one of the biggest employers and contributors to Tax incentives, subsidies and better financing terms on productive investments,
and it is difficult to find young workers interested in the business. This will force firms to increase wages
local producers have learnt about how MNCS work, what quality standards they require, what technology they use,
and promotion of natural parks (see chapter 5 and annex 2) Geo therapy center: develop a network of regional spas
World bank staff simulations based on Eurostat and IMF data.**Note: the latest available data for R&d over GDP indicator for the West region is for 2010;
World bank staff simulations based on Eurostat and IMF data. 139. Building on the analysis conducted as part of this assessment,
and has the potential to maximize output and employment growth. 146. Small and medium sized enterprises in the West Region need support to become competitive.
Vocational training also needs to be expanded significantly and upgraded in order to supply a sufficient number of qualified technicians (specialized labor).
Lack of skilled workers who can operate mid and high-tech machines limits the growth potential of firms
and the promotion of associations. These measures can help generate the necessary confidence for cooperation
i) contribute to the EU 2020 strategy by increasing the level of employment;(ii) support access to international markets;
i) better integrating primary producers into the food chain through support for quality schemes, promotion in local markets, horizontal and vertical cooperation,
facilitate visits by outside experts); additional financing (identify new sources of financing, leverage relationships with local banks,
Establishing an innovation center at the regional level which can play a key role in the promotion of the local innovative potential.
especially in light of the regionalization process and in relation to the promotion of the other competitiveness goals of the region,
universities or vocational training centers) in order to identify and promote those projects that fit with the needs of the local economic actors. 180.
and vocational training to the demands of the labor market, increasing the relevance of the educational and vocational training offer by anticipating private sector requirements,
and ensuring the applicability of the learning material, are key role for the economic development of the region.
i) developing onthe-job training through apprenticeship schemes, internships, and scholarship programs that aim to develop specific competences and skills by providing on-the-job training;
and, ii) strengthening the capacity of vocational training providers to deliver attractive and high-quality education and training programs in correlation with labour market demands, especially for sectors with significant growth potential,
The specific objective of this investment priority is the rehabilitation, modernization, development and expansion of pre university, university education and continuous vocational training infrastructure. 182.
Soft Measures such as educational and vocational training programs have to be sustained properly by the educational infrastructure
and proper endowment of schools and vocational training centers to ensure a high-quality teaching process, using appropriate pedagogical and technical resources.
and innovation process Contribute to EU 2020 strategy by increasing the investments in research and development Contribute to EU 2020 strategy by increasing the level of employment Supporting access to international markets Promoting the diversification of activities with modern technologies National,
education and continuous vocational training infrastructure National, local and EU funds, West Regional Operational Programme 83 187.
Additional details regarding these potential pilot initiatives are provided in Annex 2. Table 19-Examples of investment pilot initiatives 1. Innovation center for the West Region which could play a key role in the promotion
Center for protection and promotion of natural parks 13. Geo therapy center 14. Pilot initiative on development solutions for the mining areas 188.
Better integrating primary producers into the food chain through support for quality schemes, promotion in local markets, horizontal and vertical cooperation,
and equipping of pre university, university education and vocational training infrastructure List of preselected projects identified in the Regional Development Plan Service capacity of supported education infrastructure 86 Investment
Priority Axis 3 3. 1 Improving skills and competences required in labor market Correlate the investment priority with the Human resources Programme financed under European Social Fund
Third, economic activity in the region is concentrated in a handful of sectors that represent about half of the region's turnover and employment
increase energy efficiency and the use of the renewable energy in the West Region (priority Axis 2and increasing the level of employment and education, by improving skills and competences required in labor market (priority Axis
center for protection and promotion of natural parks; a geo therapy center; a pilot initiative on development solutions for the mining areas.
and stands out among the other regions of Romania as result of a high level of economic development, solid export growth rate, relatively skilled human resources, a large diversity of natural resources,
Pilot initiatives Brief overview 1. Innovation center for the West Region which could play a key role in the promotion of the innovative potential of the region.
growth, innovation, research and development, as well employment. This regional fund could support public-private infrastructure investments and guide the available funding towards innovative projects.
However, there are some useful examples that could work as a model. The renowned High tech Gründerfonds in Germany is a valuable example of a fund that provides funding for a wide range of innovative thematic areas. 54 Examples of a fund with a regional development component 54
so it often works in partnership with other funding entities such as banks, venture capitalists, local government etc.
and would conduct ongoing market analysis to establish scientific and commercial needs for the output of its work.
The center would be designed to attract motivated young scientists, 97 established scientists and qualified technical staff from West region and other regions of Romania.
Center for the protection and promotion of the national parks in the West Region The region could highly benefit from the creation of a local network of ecotourism destinations supported by green infrastructures and the use of renewable energy.
The center could be staffed by a core team of experts who would oversee the implementation of the action plan
and organizing vocational training in order to ensure an adequate labor force for private sector growth. Some regeneration plans have been prepared
o Creation of a sole and competitive market for the information society. o An increase of investments in research concerning ICT o Promotion of a comprehensive information society Having in view that the spread
7 unemployment, transportation or environment. Another exemple is e-education that represents an alternative to the traditional learning method,
Creation of new opportunities on labour market (example, work at home; A more efficient management of enterprises, especially of small and medium sized enterprises,
and students all over the world or to increase the degree of specialization of employees at companies'level by developing programs of E training
At the same time it supposes the existence of broadband communication infrastructure as well as certain human resources experienced in new technologies,
Both for companies and employees broadband communications are meant to reduce the importance of localizing by allowing the establishment of offices in small,
rural or isolated localities as well as by facilitating teleworking. For the Romanian companies electronic trade development can bring important advantages namely significant reductions of transaction costs and increase in interaction speed with business partners.
For the common consumer, besides facilities provided by broadband communications already mentioned (as e-Education, teleworking etc.
and institutions intend to purchase a broadband connection at high speed transfer, this intention belonging to small companies for a value of 16-17%and at a smaller value than 9%for big companies with more than 50 employees.
education and security (preconditions-the degree of digital alphabetization of the population-%of employees with experience in using computers
and responsible for the implementation of initiatives envisaging promotion of broadband communications'infrastructure development and elimination of the technological gap among regions Innovazione Italy,
27 Savings due to programs aggregation Development of a knowledge and competences basis within the operational entity Strengthening relations with people interested in the market (by diminishing potential conflict of interests) IV
The parliaments in Europe and around the world are struggling to counter the effects of one of the worst financial and economic crises for decades, with its severe negative impact on growth, trade, investment and employment across the globe and untold social and human consequences.
as well as for the promotion of citizens'engagement and for increasing empowerment and the accessibility and inclusiveness of the democratic process.
ICT have become essential in supporting the work of legislative bodies. Furthermore e-democracy provides elected representatives with unprecedented means of engaging in dialogue
improving the existing infrastructure creating a broadband passive infrastructure (civil engineering works in synergy with the work of developing another type of infrastructure-energy, transport, water, etc..
B. Europe Strategy 2020 Europe strategy 2020 designed for a period of 10 years focuses on developing a digital economy, the promotion of low-carbon, encouraging development of new products and modernizing
Reactions of consumers, industry stakeholders and policy experts will help the Commission to decide whether to submit new proposals for legislation on universal service obligations in the telecommunications sector by the end of 2010.
since they represent about 90%of companies with approximately 60%of employees. Regarding the integration of procurement solutions in the European context,
As Intermediate Body for Promotion the Information Society, MCSI manages Priority Axis III-ICT for public and private sectors, SOP IEC 2007-2013.
Legislative proposal establishing a single framework of declarations regarding the nominal amounts due the employees and the general consolidated budget (single desk Law),
33%Researchers Staff (number of people) 2007,3 0, 93%-Articles published in international and national journals 60 3, 35%-Application of national patents 34 2,
%and generates about the 30%of the employment in the region. Tourism is the main economic engine of the islands
53,5 Staff using internet 42,7 43,8 Companies with website 66,6 67,0 Companies using digital signature 28,0 24,4 Employees who received ICT training 13,8 17,4 Net
38 The EU Smart Grids Debate 3 About the Author Ruggero Schleicher--Tappeser is independent consultant for energy policy and renewable energies in Berlin.
he started in 1976 to work as journalist and policy consultant for energy issues in Switzerland.
in Germany. 1989--2004 he was founder and director of the EURES Institute for Regional Studies in Europe, Freiburg i. Br.
ruggero@schleicher--tappeser. eu The EU Smart Grids Debate 4 Executive Summary New information and control technologies (ICT) are about to fundamentally transform the electricity sector after having profoundly changed so many other industries.
which an increasing number of experts are considering not to be the first priority. 12 Also the approach of the Smart Grid Task force of the European commission following the Third Energy Package seems to be restricted much more
four Expert Groups have delivered reports in 2011. While the mission started from a rather narrow focus on metering and directly grid--related services and functions
The work of the Task force has contributed to the key document of the Commission's Smart Grid activities published in May 2011:
An important outcome of the first mandate of the SGTF are ongoing negotiations on standards framed by three standardisation mandates of the Commission to the European Standard Organisations23 based on the work of expert group 1. 24
The current 3--year work programme envisages the finalisa--23 CEN, CENELEC and ETSI, see mandates on http://ec. europa. eu/energy/gas electricity/smartgrids/taskforce en. htm 24 See also the regulation guidelines for member countries issued by ERGEG (ERGEG, 2011) 25 (European commission,
Overall the presence of the renewable energy industry in the SG discussion is remarkably small. 48 COGEN Europe, the European Association for the Promotion of Cogeneration,
European Task force for the implementation of smart grids into the European internal market--Mission and work programme.
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