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| Measures to Boost the Economy |
| (2011-09-09) |
| Last updated: 2011-09-12 14:02 EET |
Over the past 20 years state-owned companies have been criticized for the way in which they were managed, but things will change now and they’ll have a different type of management. The Romanian Government hopes the measure will have a beneficial effect on domestic economy.
Perceived, after the collapse of the Communist regime in 1989, as genuine “black holes” of Romania’s economy, some of the largest state-owned companies continue to give a hard time to authorities. Although over the past 20 years, the state has given up control many companies- some of them considered strategic for the economy such as Petrom- much criticism has been and is still being leveled against the way they are managed.
Excessive politicization and the incompetence of managers appointed for political reasons are the main causes of inefficiency. Eager to save what’s left of them, the current Romanian government has agreed with the IMF to introduce private management in those companies. The main reason also invoked recently by the advisor to the PM, Andreea Paul Vass, is the reduction of those companies’ huge losses caused by unfortunate investments.
Andreea Paul Vass believes that over the past years the managers of state-owned companies have been irresponsible. The Romanian Ministry of the Economy has drafted a list of state-owned companies where private management should be introduced among which Hidroelectrica, Oltchim, Tarom and CFR Marfa- The Romanian Railway Company Freight Division.
According to the press, the list might also include other companies such as Nuclearelectrica, Transgaz, Romarm, Romgaz and Transelectrica. An independent human resources company acknowledged at international level will conduct the selection of the new managers. The public radio and television corporations will also have private management in the future.
The Chamber of Deputies has tacitly passed a resolution that provides for those institutions to be run by private managers chosen by an international tender. Analysts believe that private management is 20 years late in Romania and that it cannot bring about spectacular changes, since it’s hard to believe that Romanian politicians will abstain from interfering in the management of state-owned companies.
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