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Romania economy - who can make sense of it?

The Romania economy makes absolutely no sense to me. In theory this could and should be a wonderfully wealthy country. There is gold in the mountains - one US firm had the crazy idea that Romanians would agree to the literally grinding down a whole mountain to get it out. When you drive through the countryside you see gas and petrol wells pumping up gas and oil, and as this country has mountains, forests, the sea - all perfect for tourists - you would expect a great life and lots of wealth. In reality, the wealth stays with the few and there is no real trickle down of money to the masses.

Romanians make terrible business folk who cannot make a deal o sell anything - this does help explain the failing Romania economy. I have lots of examples - here are just a few. In the UK at the end of the day lots of food stock is sold off at amazingly cheap prices - like a couple of dollars per box of fruit. Here they will sell it day after day at high prices and complain how little custom they are getting. As I happen to also grow and sell apples - not a business that will make my fortune, I know how little I get for my apples and how much profit the people in the market make.

The same goes for property. If you are a foreigner, they will rent you an apartment at inflated rates - so often lose custom in the process. Even foreign landlords who should know better do the same.

As you can see making deals in Romania are hard - particularly when you also need to smooth your way constantly with little brown envelopes full of cash. Yes - corruption is a major issue here - the odd thing being it is so ingrained that Romanians give the money to people without being asked - indeed insist they take the money. But woe betide you if it is too small and you need the doctor! I have heard all sorts of problems involving no painkillers for the poor. This makes making a stand a dangerous and pointless activity.

The Romania economy is also suffering from a complete lack of infrastructure. Where else in Europe can you still find mud tracks in the suburbs of your capital city? Where else in Europe is it common not to have running water, gas or rubbish collection? We only have 2 motorways - each with only 2 lanes each way - making driving here precarious as you try to pass slow trucks with fast Romanians flashing their lights for you to clear their paths.

The economy now punishes the poor - 25% cut in state salaries. They wanted to also cut state pensions (which are already tiny) but the constitution (for now!) stopped them. Oddly there has been no equal obvious drive for cost cutting from the rich - the number of new flash cars in Bucharest is clear evidence of this.

The solution? Nothing can be done as pretty much all the problems are so endemic to the country. For example if you spent millions on improving the roads - most would end up in some Swiss bank account and the Romanians get the cheapest road possible - which will fall to pieces again in the following cold winter.

Another problem for the Romania economy is the complete lack of collecting taxes - what many people earn and what they declare are completely different things. This of course further promotes the idea that Romanians are low paid - as the Government etc only have the official figures to work from.

Many have found a good solution - move to a well-run country such as ironically the UK - take the crap jobs there - and send home money for the rest of the family. The president recently thanked Romanians who did leave the country for not being a burden on the state. As for me - you will see me live here forever and follow the slow decline of Romania to its bitter and tragic end!

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Romania economy and it's Romania government leave me always in a major state of confusion. Click here to find out why.

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