Vasile Dancu, Minister of Regional Development and Public Administration, has said on Thursday that Romania’s economic growth will not have a strong social effect, because the share of domestic capital is too low.
According to him, in recent years, although it registered economic growth, poverty has also increased by 3.4%, capital.ro reports.
“We are talking about the Romanian capital. I’ve looked at the figures of past years and in the years when we registered economic growth, the largest in Europe or second in Europe, the poverty increased by 3.4% in 2013, 2014, each year the poverty increased. That shows a paradox, actually. Why doesn’t development produce ultimately a stronger social effect? Sociological explanations of this discrepancy – Romanian capital has a low share and the Romanian capital failed to produce effects, it is not strong enough in the general budget. Foreign capital is working ok, but it brings fewer effects on horizontal level and much less social effects,” Dancu said.
He added that according to a 1991 survey, 80% of Romanians believed that the then businessmen have made their wealth by stealing, through nepotism or corruption. This year’s survey shows that 90% of Romanians responded the same way, Dancu said.
“Capitalism has won definitively in Romania, the transition period passed, it is a normal matter, but the conclusion is – Romanian capitalism has lost the battle in this regard. The X generation, consisting of those between 35-55 years, has lost the competition, it failed to take positions of power, which is an important thing. It arrived after rather chaotic changes and did not have entrepreneurial support. Romanian capitalists have no representation in the power area, for example the setting up political parties in democracy is not illegal, it is not unethical for them to be in politics. Generation Z, the one before us, stayed in power longer than needed,” Dancu said.