Professional Documents
Culture Documents
Bucharest University of
Economic Studies –
Faculty of Business
Administration in Foreign
Languages
Mocanu Matei
Truță Ingrid Laura
Iancu Sebastian
Popescu Maria Ioana
European Business
TOMORROW
In cooperation with Konrad-Adenauer-Stiftung Romania
Table of Contents
Intoduction..................................................................................................................................................2
Counties...................................................................................................................................................2
Economy..................................................................................................................................................2
Demographics..........................................................................................................................................3
Geography...............................................................................................................................................3
Relief....................................................................................................................................................3
Climate................................................................................................................................................4
Vegetation...........................................................................................................................................4
Culture.....................................................................................................................................................5
Key aspects..............................................................................................................................................5
The map of the North-East region of Romania........................................................................................7
SWOT Analysis of the region......................................................................................................................7
Strengths.................................................................................................................................................7
Weaknesses.............................................................................................................................................8
Opportunities..........................................................................................................................................8
Threats.....................................................................................................................................................9
Socio-economic analysis............................................................................................................................10
Population.............................................................................................................................................10
Economy and business environment.....................................................................................................13
Infrastructure........................................................................................................................................17
Conclusion.............................................................................................................................................19
Bibliography..............................................................................................................................................19
1
Intoduction
The North-East is a development region of Romania, created in 1998. The headquarters
of the North-East Regional Development Agency is located in the municipality of Piatra Neamț,
even though the largest city is the municipality of Iasi. Like the other development regions, the
North-East Regional Development Region has no administrative powers, its main functions
being coordinated with regional development projects that are part of the historical regions of
Moldova and Bucovina: Bacău, Botoșani, Iași, Neamț, Suceava and Vaslui.
Counties
The North-East development region includes 6 counties (by population)
Iasi
Suceava
Bacau
Neamț
Botosani
Vaslui
Economy
A region with a strong historical, cultural, and spiritual foundation is the North-East
Region. Geographically, the area transitions from mountain ranges in the west to sweeping plains
with sizable farms in the east and gentle plateaus with significant vineyards in the west. It is one
of Romania's tourist hotspots as well.
The economy of North-Est region is mixed, with an agricultural focus especially towards
the East, and with a number of industrial centers. At roughly two-thirds of the national average,
the GDP per capita for the region is the lowest in all of Romania. Currently the textile industry
has the fastest growth. Tourism is also very important, especially in the mountainous areas in the
west of the region, as well as in the following cities (according to the number of tourists) Iasi,
Suceava, Piatra Neamț or Bacău. Other tourist attractions are the Monasteries of northern
Moldova (especially the monasteries of Bucovina), which are part of the universal heritage.
2
Demographics
With a total population of 3,986,648 in 2022, Nord-Est will be the most highly populated
region in the country. It has a population density of 99.71/km2, higher than the national average
of 91.3/km2.
According to the 2002 census, the region had a sizable 97.9% Romanian majority, with
the Romani making up the second-largest minority with 1.2% of the population. The remainder
of the population (0.9%) is made up of Germans, Hungarians, Lipovans, Poles, Hutsuls,
Ukrainians, and Csangos.
With 98.7% of the population in the region using it as a first language, Romanian is the
most widely used language. Romany and Ukrainian are minoritized languages that are spoken by
0.6% and 0.3%, respectively, of the population.
Geography
Relief
The relief is varied, being present the entire range of relief steps from the territory of
Romania. The maximum altitude is 2100 meters, in the Călimani Mountains (Pietrosul Calimani
peak) in Suceava county, and the minimum is below 10 meters, in the Prut valley, on the territory
of Vaslui county. On the territory of three counties, Bacău, Neamț and Suceava, there are
mountain units from the Eastern Carpathians. In the counties of Bacău and Neamț there are
subunits belonging to the Subcarpathians of Moldova. The Moldavian Plateau is present in each
of the six counties. On the territories of Botoșani, Iași and Vaslui counties, there are plain and
meadow subunits belonging to the Moldavian Plain and the Prut meadow. A special case is the
Siret and Moldova Corridor.
3
Climate
The climate varies according to the relief. From average annual temperatures of 0.7 °C
and precipitation of 700 mm on the Toaca peak in the Ceahlău Mountains, to temperatures of 9.8
°C (Bârlad) and precipitation of 450-500 mm (the plain areas of Botoșani, Iași counties and
Vaslui).
Vegetation
Vegetation and fauna are determined by climate and relief, varying from the alpine and
subalpine floor on the mountain peaks in Neamț, Suceava and Bacău counties to the forest-
steppe and steppe floor in Botoșani, Iași and Vaslui counties.
4
Culture
Moldovan cuisine is very diverse in terms of types of dishes. There are dishes specific to
this region for starters, soups, vegetable main courses, meat main courses, desserts, preserves,
pickles and more. The traditional platter is one of the main entrees of Moldovan cuisine. The
platter is made from smoked sausages, drum, bacon, bell pepper, red onion, bell pepper and red
pepper.
Key aspects
× The high and continuous level of external migration - the difference between the domiciled and
resident population of 759,217 people – 2018;
× Life expectancy in the region 75.4 years (2018), 5.5 years lower than the average community
level, but increasing by almost 3 years compared to 2007;
× Negative natural growth, with six consecutive years of decline – 3.6 ‰ in 2018;
× The mortality rate in the rural environment is higher than that in the urban environment
× Intercounty and urban-rural disparities regarding the level of the infant mortality rate. Rate
level
infant mortality is much higher than the one existing at the community level. In 2018 –
4.7‰ in the urban environment versus 8.4‰ in the rural environment; 11.2‰ (Botosani county)
versus 4.2‰ (Iasi County). The highest levels: 15.3‰ in the rural area of Botosani and 9.7‰ in
the rural area of Bacau;
× The infant mortality rate in the region is 60% higher than the community level (2018), but in
decrease compared to 2012 (11.9‰);
× Disparities regarding local human development between residential areas and between
counties;
× The region is faced with a continuous phenomenon of population aging - numerous localities
records decrease of more than 10% of the population in the age group 0-14 years, respectively
with increases with over 10% of the population over 60 years old;
× The high share of the civilian employed population in agriculture, 31.1% - 2018;
× Urban-rural disparities regarding the training level of the employed population - 2018;
× The still high level of the share of the long-term unemployed - one out of two unemployed
people is looking for a job work for over 1 year - but in decrease compared to the previous
programming period;
5
× The high level of the risk of poverty or social exclusion rate (47.1%) with 15.9 p.p. above the
level nationally and double the community average level and the poverty risk rate (41%) - 2019;
× The very low level of household income - the average total monthly income per family
member
represents 16.8% of the EU 28 average, respectively 79.5% of the national average (2018);
× More than 50% of households face current expenses with difficulty and with great difficulty;
The average population density in the region is higher than the national average - 107.7
people/km2 in region compared to 93.1 places/km2 national level (2018);
The (demographic) substitution rate at the regional level is higher than at the national and
community level;
Increasing levels of the activity and employment rate at the regional level, above the levels
national and community - 2018;
The increase in the number of employees in the period 2013-2018 by 14.4%;
The very low level of the unemployment rate, with values lower than the national and
community level;
The activity of regional and local partnership structures dedicated to education (TVET), with
attributions in realization and implementation of regional and local action plans in the fields of
education.
Downward evolution of the share of young people who are not employed, are not included in
the system of education or vocational training (NEETs), with lower levels than the national and
community level – 9.4% (2018);
6
The map of the North-East region of Romania
7
The Gross Domestic Product (GDP) has seen a marked upward trend. This progressive
development indicates a strong growth in the region's economy (11% from 2018 to
2019);
The presence of a regional pole and three county poles, along with two local poles,
distinguishes the region as one of great importance. Iasi and Bacau are classified as cities
of first rank, with Iasi becoming a pole of national growth while Bacau and Suceava act
as poles of urban development;
The implementation of Wifi4EU, the initiative led by the European Commission to bring
public Wi-Fi connections to local municipalities. (164 covered localities, with a potential
pool of 1,828 thousand people, while 624 thousand in rural areas);
Existence of important historical sites, monasteries, and cultural landmarks on a national
and worldwide scale (UNESCO heritage) (the worldwide known monasteries in Suceava
such as Putna or Voronet, the Palace of Culture in Iasi and many other key points for
international tourists);
Weaknesses
The natural growth rate has experienced a declining trajectory, as evidenced by its
strongly negative values in the rural areas. This negative growth rate has been persistent
in recent years and can be attributed to a range of factors, including a lack of job
opportunities in rural areas, a decrease in fertility rates, and the migration of the working
age population from rural areas to urban areas;
The high fertility rate among teenage girls may lead to lower levels of education and
employment, resulting in reduced economic productivity, poverty, and potential long-
term welfare dependence;
Maintaining imbalances regarding the employment rate between men and women leads to
inequities in wages, job security, and career advancement opportunities;
The decrease in the number of students enrolled in pre-university education may lead to a
decrease in the number of skilled workers available in the labor market. This could cause
a decrease in the productivity of the economy, resulting in a decrease in economic output.
The decreased number of students enrolled in pre-university education could also lead to
a decrease in innovation, as fewer students would have access to the educational
resources needed to develop new ideas and technologies. This could lead to a drop in
technological development and investments in research and development, resulting in a
decrease in economic growth. (A decrease of 17% between 2009 and 2021)
The high, continuous and increasing level of migration
The high proportion of non-electrified railway lines that determine low speeds for the
transport of goods and passengers
Opportunities
In order to attract tourists and investors, cities should focus on improving their image and
appeal. This can be achieved by making structural advancements, such as developing
transportation networks, creating inviting public spaces, and maintaining a clean and safe
environment. Additionally, cities should leverage their unique cultural and historic
backgrounds to create a sense of identity. This could include restoring historic buildings,
promoting local festivals and activities, and constructing iconic landmarks;
Implementation/completion of initiatives for upgrading/rehabilitating the infrastructure
for road transportation;
8
The development of the Next Generation EU community initiative, the EU’s instrument
designed to help repair the immediate economic and social damage caused by the
COVID-19 pandemic. These funds will help the region to be greener, more digital, and
more resilient to better adapt to current and future challenges;
The implementation of the modernization strategy for the educational infrastructure is
essential to ensure that students have access to the latest and most advanced technologies.
This strategy should involve a comprehensive approach to updating the technology and
equipment used within educational institutions;
The development of regional health service plans with the goal of ensuring that everyone
has access to the best possible healthcare available. Regional health service plans need to
be tailored to the specific needs of the region and should include initiatives such as, but
not limited to the establishment of medical centers and specialized medical teams, the
development of health education and preventive care programs, and the provision of
financial support for those in need;
The development and implementation of the "5G for Europe" Program, fueling an engine
of economic growth across all industries in the region;
Threats
The trend of higher education graduates and qualified persons migrating to other Member
States or to other more developed regions of Romania is expected to continue in the
coming years. In many cases, these individuals possess the knowledge and skills
necessary to make a significant contribution to their home countries, yet they are instead
leaving in order to seek better economic opportunities elsewhere. This has caused a sharp
decline in the number of qualified workers available in Romania, leading to a decrease in
economic development and a strain on the government to provide the necessary resources
to support the population.
The current high budget deficit has the potential to cause serious economic concern,
particularly as it could lead to a reduction in dedicated investments. This could have a
dramatic effect on businesses, as well as the overall economy. Without the necessary
investments, businesses may struggle to access the resources needed to remain
competitive in their respective industries.
The insufficient level of maintenance for the completed/rehabilitated roads, which results
in a decrease in the lifespan of the road, as well as decreases in safety and ride comfort
for travelers.
The COVID 19 pandemic has, and continues to have, devastating economic and social
consequences for people, businesses and communities across the globe. The immediate
economic impacts of the pandemic include disruption of global supply chains, reduced
consumer demand and spending, and a rapid rise in unemployment. These effects have
caused significant financial distress to individuals and businesses, particularly those in
the hospitality, tourism and retail sectors.
The disinterest of the population in the collection and selective storage of waste, in
protecting the environment, the reduced appetite of economic operators to develop
specific investments in the recovery and recycling of waste. This has the potential to have
damaging effects on the environment, as the growing presence of waste in the
environment leads to a variety of negative repercussions, such as the contamination of
soil and water sources, the disruption of ecosystems, and the health concerns associated
with the accumulation of waste;
9
The prolonged lack of bypass options for municipalities and cities currently traversed by
heavy traffic is having a severely detrimental effect on air quality.
Socio-economic analysis
Population
Population in the North-East region has been on a slow rise, population has grown 2.4%
in the period of 2009-2021 which would translate to an average of 0.2% yearly growth.
Looking at the population of counties on a time series basis, we get insights into how the
counties evolved and the data seems to have Iasi as a winner in both population growth rates and
terminal value.
Iasi county has a population of close to 1 milion, experiencing the highest growth rate of
14% which is then followed by Suceava with 760.000 and 3.7% growth rate, Bacau with a
population of 720.000 and -4.25% growth rate, Neamt with a population of 550.000 and -6%
growth rate, Vaslui with 506.000 and 7% and lastly Botosani with 450.000 and -4% growth rate.
Analyzing the population data together with both the birth and fertility rate, which were
both stagnant, we can conclude that there was an inflow of people in the region and most of this
inflow comes from the county “Iasi”.
10
The birth and the fertility rates also seem to be hitting their all-time lows with the
accelerated drop that started in 2019. Looking back at the population data, we can also see that
population also has been declining since 2019.
11 50
Bacau
10 45 Botosani
Iasi
9 40
Neamt
8 35 Suceava
Vaslui
7 30
6 25
09 10 11 12 13 14 15 16 17 18 19 20 21 09 11 13 15 17 19 21
l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20 l 20
u u u u u u u u u u u u u u u u u u u u
An An An An An An An An An An An An An An An An An An An An
Out of the 3 counties that have had an increase in population (Iasi, Suceava and Vaslui),
it seems that Iasi was the least affected given the drop in birth and fertility rates, Iasi was the
only county that has experienced an increase in population even when the region and the other
counties were experiencing declines, this is a sign of strength in Iasi County when compared to
the others in the region.
Looking at the age distribution throughout the region, we can immediately spot a normal
distribution with a slightly lower tail in the elderly. This seems to be good news for the economic
aspects of the region due to a higher expected workforce which will be able to sustain the lower
elderly population.
The high school dropout rates seem to be around 3.5% for the entire North East region,
with Botosani and Vaslui being having the highest rates of around 5%, while Iasi seems to have
11
the lowest of these rates coming at 2.5%. Iasi has a dropout rate twice as small as Botosani and
Vaslui.
0
Regiunea Bacau Botosani Iasi Neamt Suceava Vaslui
NORD-EST
Number of high school graduates seem to be the highest in Iasi and Suceava, with Vaslui
and Botosani on the other end. This being in line with the dropout rate, we can conclude that on
average, Iasi and Suceava have higher education metrics while Vaslui and Botosani, lower
education.
6000
5000
4000
3000
2000
1000
0
Bacau Botosani Iasi Neamt Suceava Vaslui
12
Economy and business environment
The Northeast region has seen a rise in the average salary over the years, most notably
starting 2014. This is in line with Romanian and even global averages as economies throughout
the world have experienced the recovery followed by the Great Recession.
5000
4000
3000
2000
1000
0
Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Companies within the region seem to have an industrial focus. Besides supermarkets and
food in general. Construction, and Transportation and Industry are the three most popular
companies measured by the number of companies registered with the CAEN Code.
Out of these companies, the industries that really caught our attention were Hotels and
Cultural activities.
We were not surprised to see that Suceava is the leader when it comes to number of
companies that operate hotels with 952 of these being in Suceava and that the next would-be Iasi
with 775, Bacau 609, Neamt 573, Botosani 337 and Vaslui with 276.
13
Hotels
276
609
952 337
775
573
Turist arrivals seems to be in line with the number of hotels. Suceava leading, Iasi being
the second one, very similar to the number of companies operating in the hotel industry.
Also, Vaslui and Botosani being again laggards when it comes to turist arrivals.
Tursit arrivals
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Also, when it comes to companies that are involved in Cultural Activities, the common
theme is reinforced, Iasi and Suceava lead while Vaslui and Botosani are being laggards once
again. The number of companies operating in the cultural activities industry should be directly
correlated with the education of the county, and if we look back at high school data, we see that
the correlation stands.
14
Activitati de spectacole culturale si
recreative
87
184
155
88
126
389
15
Number of employees
180000
160000
140000
120000
100000
80000
60000
40000
Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
There is also a visible gap between the average salary of the other counties and Iasi’s.
Salaries in Iasi are close to hitting the 6000 RON a month mark, while the other counties
are stuck between 4000-5000 RON range.
Average Salary
7000
6000
5000
4000
3000
2000
1000
0
Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul Anul
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
16
When we look at GDP data of the region, we see that nominal GDP was on the rise but it
was mostly in line with national averages which can be measured by the share of national GDP, a
metric that has stayed flat throughout the rise.
100000
80000
60000 10%
40000
20000
0 9%
1 2 3 4 5 6 7 8 9 10 11
The common themes seem to be reinforced also into the export data with Bacau and Iasi
leading exports while Vaslui and Botosani being once again laggards.
The most notable rise would be the rise of Bacau’s exports, they have doubled since 2017
while Iasi’s exports, even tho they are at high levels, have remained high but did not grow to the
extent which Bacau’s exports have.
Exports of counties
120000
100000
80000
60000
40000
20000
0
Luna ianuarie 2011 Luna aprilie 2013 Luna iulie 2015 Luna octombrie 2017Luna ianuarie 2020 Luna aprilie 2022
17
Infrastructure
When it comes to roads, it may come as no surprise that National and County Road
kilometers have remained flat for the entire region while communal roads had a small gradual
increase.
Romania is a country where residents are very upset of their road quality and lengths.
When it comes to city infrastructure and roads, Suceava takes the lead in kilometers of
roads at 1090km of roads across its cities, followed by Bacau and Iasi with about 800 and as a
laggard, we again have Vaslui with just 460 km of roads, half of Suceava’s.
One of the most interesting data comes from housing, where we can find that Iasi and
Suceava have a very big lead compared to the other counties when it comes to building permits.
18
As we have analyzed the quality of these 2 counties, I am sure real estate developers have
done their work too and they came across similar data and took action to build for the future in
those 2 counties, it seems that investment in real estate in Vaslui and Botosani is about 5-6 times
lower than Iasi and Suceava.
Conclusion
The common theme we had when analyzing data was that Suceava and mostly Iasi seem
to be the counties where the most educated people live and also, we assume the quality of life is
better there because people choose to move into Iasi, something that can be seen in the rise of its
population, which was the highest out of all the 6 counties but also the rise happening while the
birth rate and fertility rate were lower, so this concludes the fact that people migrate towards Iasi.
Also, the economics of Iasi and Suceava seem to be at opposing spectrums to Vaslui and
Botosani. The same cycle repeats also when it comes to infrastructure.
It is usually common sense that an educated area will have better business and
infrastructure and this analysis between these counties is another confirmation that human
quality is a good predictor of future success.
Bibliography
https://ro.wikipedia.org/wiki/Regiunea_de_dezvoltare_Nord-Est
https://en.wikipedia.org/wiki/Nord-Est_(development_region)
https://www.adrnordest.ro/regiunea-nord-est/
https://s3platform.jrc.ec.europa.eu/documents/20125/291777/RIS3%20ADR%20Nord-Est%20-
%20V%20Asandei.pdf/67bc65cd-31f4-bd7d-d198-ae199e709232?
version=1.1&t=1619527792177
19
https://digital-strategy.ec.europa.eu/en
http://statistici.insse.ro:8077/tempo-online/#/pages/tables/insse-table
20