POS Competitivtate

Draft [pic] MINISTRY OF ECONOMY AND TRADE Sectoral Operational Programme "INCREASE of Economic Competitiveness" Bucharest, October 2005 TABLE OF CONTENTS
1. SOCIO-ECONOMIC
analysis...............................................................
...3 2.
Strategy..................................................................
.........................79 1. The objectives, priorities and measures of the sectoral
operational
programme.........................................................
..........................82 Priority I: Increase in economic competitiveness by enhancing
the market access of enterprises, especially
SMEs'........................................................ Priority II: Development of a knowledge-based economy by
promoting research and innovation and accelerating the
development of the Information
Society..........................................................
................................................. Priority III: Improvement of energy efficiency and better use of
renewable energy
resources........................................................
................................... Priority IV: Technical
assistance.......................................................
........... 2. Correlation with European policies and with national development
policies
.......................................................................
....................100 3. Contribution to horizontal objectives (sustainable development,
equal opportunities, information society, public procurement,
competition policy)108 4.
Indicators............................................................
........................111
3. Implementation
system..................................................................
115 1. Management and
implementation...................................................
.... 2. Management and
control............................................................
...... 3. Data collection and
transfer.........................................................
...... 4.
Monitoring............................................................
......................... 5.
Evaluation............................................................
......................... 6. Information and
publicity.........................................................
..........
4.
PARTNERSHIP...............................................................
......................127 5. Financial
tables..................................................................
............131
ANNEX 1: Methodology for setting the general objective of the
Competitiveness
SOP
.....................................................................
....................135 ANNEX 2: Metohodology for the programming exercise within the SOP
Competitiveness
.....................................................................
..137 ANNEX 3: Financial Allocation -
Analysis....................................................140 ANNEX 4: Gap indicators used in the programming exercise
.........................144 ANNEX 5: Methodological note regarding gap calculation for the IT
sector......147
1. SOCIO-ECONOMIC ANALYSIS
(The current version will be modified / updated / compressed at a later
stage, including review of translation into English) PRODUCTIVE SECTOR Competitiveness factors
The sustainable economic growth and the increase in people's living
standard are determined by the economic competitiveness development in the
context of global challenges (globalization, the opening of international
markets, the quick technological changes, etc); all these challenges have
to be converted into opportunities by the Romanian economy. The analysis of
the competitiveness factors and the identification of problems that Romania
is confronting with, in order of finding the optimum solutions to solve the
problems, represent a need for assessing the future economic potential of
the country. The identification of the factors that are influencing Romania's
competitiveness was based on a thorough analysis of economy, of business
environment, of resources, both material and human, of expenses, of
investment activity, and of innovation process. The world states competitiveness survey performed by World Economic Forum
(WEF) for 2003 ranked Romania the 75th place out of 102 analyzed countries,
behind the new Member States, but also behind the other candidate
countries: Bulgaria (place 64), Turkey (place 65). One year before, Romania
ranked 67th place out of 80 analyzed countries keeping this position in
2003 too (compared with the 2002 listed countries). The competitiveness
analysis was performed based on three types of factors: technology,
institutional framework and macroeconomic environment. The-basic
assumptions were that on long term no technology can maintain a high
standard of life, exclusively based on capital accumulation; that
institution framework ensures the property rights, contracts' observance,
efficiency and transparency of government expenditures while the monetary
and fiscal policies and financial institutions' stability plays an
important role on long term growth. What should be noted from this report (available indicators are from 2002)
are the weak points which are placing Romania on the above position. From
technology point of view Romania ranks the 55th place out of 80 analyzed
countries, from macroeconomic environment's one, the 58th, and in terms of
public institutions the 67th (source: The Report of Global Competitiveness
- World Economic Forum, 2003 and 2004). In the last four years, Romania registered a macroeconomic stability,
essential for the sustainable development, marked by a constant GDP
increase based on investments, exports and less on consumption (2.1% in
2000, 5.7 in 2001, 5.0% in 2002 and 4.9% in 2003). A positive element
indicating the structural changes that took place in Romania is the
constant growth of private sector share in GDP (approx. 69.1% in 2003
compared to 63.7% in 1999). In spite of the substantial progress achieved in the last years, Romania is
still lagging behind the European competitors in terms of economic
development; showed by Romania's GDP in PPP terms, that represents about
50% of GDP in new Member States and less than 30% of GDP of less developed
Member States such as Greece and Portugal. The GDP/PPS value (27% of the EU
average, in 2003), also shows the slow process of reducing the gap against
EU. Another important factor determining a country's competitiveness is
productivity. The evolution of labour productivity (GDP in PPP
terms/occupied person) indicated a positive trend, but still in 2002,
Romania's productivity represented only 30.73% compared to the EU-15
productivity, and lower than in all other Candidate Countries, except
Bulgaria. Labour Productivity (GDP/PPP per occupied person) (EU-15=100%) (%)
| |1999 |2000 |2001 |2002 |2003 |
|EU-15 |100 |100 |100 |100 |100 |
|Luxemburg |144.0 |148.0 |138.2 |131.5 |185.8 |
|Greece |80.2 |80.8 |80.7 |82.5 |86.0 |
|Spain |93.0 |92.2 |93.2 |93.0 |91.2 |
|Portugal |66.2 |62.5 |63.0 |62.6 |65.0 |
|Slovenia |67.9 |68.6 |70.8 |72.7 |- |
|Hungary |57.3 |58.6 |62.1 |66.1 |- |
|Czech Republic |55.3 |53.9 |56.62 |55.96 |- |
|Slovak Republic |54.2 |53.5 |52.77 |52.3 |- |
|Poland |42.5 |46.0 |46.6 |48.33 |- |
|Estonia |39.7 |42.5 |42.4 |43.31 |- |
|Lithuania |32.0 |34.4 |38.8 |43.1 |- |
|Latvia |30.5 |34.2 |36.5 |37.0 |- |
|Turkey |33.4 |34.06 |31.83 |36.25 |- |
|Romania |27.6 |26.8 |28.1 |30.73 |- |
|Bulgaria |32.6 |31.0 |29.3 |28.46 |- |
Source: Eurostat 2003 The