Romania in the global competitiveness top – 5 of the most competitive indicators

The World Economic Forum published the new Global Competitiveness Report. Romania is up four positions against last year, from 68 to 64. The report is based on last year’s statistics and the statements given by managers in each considered country for another survey carried out in the beginning of the current year. Read here where Romania scored best.

#5 Governmental debts

Romania has a small governmental debt – 21.6% of the GDP (2008), which positions the country on the 33rd position out of 133 states. This debt will increase significantly this year because Romania is borrowing heavily to pay incomes and pensions. The current rank is not owned to the post 1989 political class, but, ironically, to former dictator Ceausescu, who cleared the country of all debt by the summer of 1989.

#4 Education quality

Regarding exact subjects – Maths and the sciences – Romania ranks 29. Its general academic system ranks 52.

Romania’s got two major problems:

1. Despite the fact that the system produces graduates with an education above the mean, the authorities are failing to create conditions for them to stay in the country. Romania ranks 102 when it comes to hold on to talented people. In other words, the Government pays for specialists’ formation, but other countries take the benefits.

2. The education system is under-financed if we look at the Education GDP share, placing Romania on the 91st position in this sense.

#3 The power of law to protect the creditors and debtors’ rights

Romania ranks 18 in this matter. But the banking system is considered weak and the complexity level of the financial markets is reduced. When comparing the interests for credits and deposits, Romania ranks 63, with a 5.3% mean difference. Hungary takes the first position with 0.3% and, if we exclude Zimbabwe, Brazil takes the last place, with a 35% difference.

#2 The costs of sacking

It is not expensive for a company in Romania to fire its staff. The mean costs equal the salary of the sacked for eight weeks, which places Romania on the 18th position. Denmark and the US are the leaders of this top, where the cost is zero, while in Germany the costs cover 69 working weeks, and in France – 32 weeks.

On the other hand, if we look at the strictness of the labour market, Romania takes the 122nd position.

#1 Border taxes

Alongside many other countries, Romania ranks 5th, with a moderate mean tax of 1.1%, in a top where Hong Kong leads with 0% and Syria ranks last with 22.9%

Romania finds itself on the 22nd position when it comes to the time required by setting up a company, that is ten days. In New Zeeland, the job is done in one day, while in Brazil, it take you 152 days.