Page 141 - Proceeding 2015

CONSTANTIN Daniela-Luminita, GOSCHIN Zizi and ILEANU Bogdan FAMP
THE ECONOMIC REGENERATION OF LAGGING REGIONS. AN INQUIRY INTO THE REGIONAL
OPERATIONAL PROGRAMME CONTRIBUTION, WITH AN EMPHASIS ON THE ENTERPRISE CCASP
SUPPORT IN THE NORTH-EAST REGION OF ROMANIA

increase and out-migration triggered by industrial decline and poverty. Its population reached 614,451
persons (about 3.3% of the Romanian population) in 2011, while population density was 71.8 inhabitants
per square kilometer, compared to the national average of 79.9.
PROCEEDINGS OF THE 11 TH ADMINISTRATION AND PUBLIC MANAGEMENT INTERNATIONAL CONFERENCE
In latest years both exogenous and endogenous factors acted in favour of developing the North-East
region and the county of Suceava, the former prevailing. They refer to exports, foreign direct investments
(in particular in trade and woodworking sector), grants from the EU and other sources of funding. The

endogenous factors, mainly innovation and entrepreneurship had a smaller contribution. Other factors
that positively influenced the economy of the region and county refer to the restructuring of the large firms

in food industry, constructions and installation, the establishment of many new small firms in tourism, food
industry, etc. as well as direct investments in food industry SMEs supported by the remittances of the
Romanian emigrant workers. The biggest contribution to GVA in Suceava county has come from

manufacturing and agriculture. The agriculture development has been based on the high share of
agricultural land in total county’s surface (40.8%) and big share of employment in agriculture (45.42%).
30 th – 31 st October 2015 ”Strategic Management for Local Communities” Bucharest that have hindered so far the development process: difficult access to finance for small producers (such
The economic development of the region depends on the ability to address a large range of obstacles

as farmers) and SMEs, lack of a long term vision for the development of the county, insufficient support
for innovation and entrepreneurship, complex procedures for accessing European funds and delays in

reimbursement payments, frequent legislation changes; perpetuation of de-industrialization process; lack
of investment in the environment (e.g. in waste collection and recycling, renewable energy); inadequate
use of agricultural land and the large share of subsistence farming; lack of tax incentives for new

investment; lack of own funds for investment and expensive credit; unequal and stiff competition from
foreign private companies entering any market where they find opportunity; reduced innovation and

competitiveness in competition with foreign investors; an education system that fails to mobilize students
to training performance and lack of vocational secondary education, poor infrastructure, etc.

Despite these shortcomings, to a large extent, among the interviewed experts in the region there is a

perception that both the national and EU interventions are concentrated on the regional needs. The most
relevant examples refer to the industrial parks related policy, preservation of environment, sustainable
development of tourism in Bucovina, measures for supporting farmers, forestry and timber processing,

etc. Interviewees also highlighted the lower taxation policy for firms applied in the second half of the 1990s
in order to support disadvantaged areas. Suceava county was a relevant case as a result of the closure
of non-ferrous mining in the county in that period. However, the policy did not produce the expected results

as many firms in the disadvantaged areas did not employed local material resources and local workers.

139