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Social Capital and Socio Economic Development the case of Romania’s NW and NE Region

Social Capital and Socio Economic Development the case of Romania’s NW and NE Region PH.D Elena Porum b BABE Ş -BOLYAI UNIVERSITY CLUJ NAPOCA, ROMANIA AAG Conference Boston MA April 2008 eporumb@euro.ubbcluj.ro. Intervention of the socio-economical parts. European Regional Policy.

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Social Capital and Socio Economic Development the case of Romania’s NW and NE Region

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  1. Social Capital and Socio Economic Development the case of Romania’s NW and NE Region PH.D Elena Porumb BABEŞ-BOLYAI UNIVERSITY CLUJ NAPOCA, ROMANIA AAG Conference Boston MA April 2008 eporumb@euro.ubbcluj.ro AAG Boston MA

  2. Intervention of the socio-economical parts European Regional Policy O.P. ESF Approval of the Operational Programmes National Strategic Reference Framework NSRF National Strategic Document O.P. ERDF O.P. ERDF + Cohesion Fund Negotiations with the European Commission Services Commission presentation European Regional Policy AAG Boston MA

  3. Frame of Regional Planning AAG Boston MA

  4. Regions in Romania AAG Boston MA

  5. Counties of the NW Region? AAG Boston MA Fig. 1Counties of the North-West Region

  6. Why the NW Region? • the main characteristics correspond to the national average level; • the only Pilot project in Regional Development Policy (RDP) at regional level; • corporate social responsibility and community-oriented context; • networks for regional development policy cooperation through the public/ private/ NGO’s partnership evolution; • favourable arena for debating conceptual and best practices in RDP; • labour force adequate for knowledge-based economy and new technologies (100.000 students); • tradition for multi-cultural, ethnicity and religiosity AAG Boston MA

  7. Network of institutions Total institutions: 77 EU-level: 1 Central administration: 10 Regional administration: 3 Local administration: 24 Private institutions: 39 AAG Boston MA

  8. Network centrality • Freeman’s Degree Centrality Measures: • Network Centralization = 21.74% • Heterogeneity = 2.50%. Normalized = 1.21% • Network Centralization Index = 24.14% AAG Boston MA

  9. Metric MDS AAG Boston MA

  10. SNA county variation Cluj County Sălaj County AAG Boston MA

  11. Why the NE Region? • the main characteristics correspond to the national average level; • favourable institutional and legislative framework for regional development policy; • strong emphasize on social responsibility; • networks for regional development policy cooperation; • qualified labour force adequate for knowledge-based economy; • regional development strategy in close relation with strengthening the social cohesion; • the only region with positive natural increase (about 1.0‰) AAG Boston MA

  12. NE Region AAG Boston MA

  13. Network of institutions Total institutions: 33 EU-level: 1 Central administration: 6 Regional administration: 4 Local administration: 11 Private institutions: 11 AAG Boston MA

  14. Network centrality • Freeman’s Degree Centrality Measures: • Network Centralization = 39.08% • Heterogeneity = 5.56%. • Normalized = 2.60% AAG Boston MA

  15. Metric MDS AAG Boston MA

  16. Social capital AAG Boston MA

  17. EU Values Orientation AAG Boston MA

  18. Comparison between regions AAG Boston MA

  19. Comparison between regions AAG Boston MA

  20. Comparison between regions AAG Boston MA

  21. Comparison between regions AAG Boston MA

  22. Connection GDP – EU trust AAG Boston MA

  23. NW Regional Programming AAG Boston MA

  24. NW Region – economic structure AAG Boston MA

  25. NW Region – unemployment rate AAG Boston MA

  26. Patterns of interest intermediation-representation • Local authorities and governmental agencies: • Characteristics: Administrative conflict, insufficient use of funding opportunities. • Interests and motivation: Getting more autonomy; access to more funding opportunities • Potential and type of power: Authority power; community actions catalyst; future control of EU funds • Implications and conclusions: Enhancement of an articulate strategy for local development AAG Boston MA

  27. Patterns of interest intermediation-representation • Companies • Characteristics: Low interest in marketing approach and use of intangible resources • Interests and motivation: Strategic alliances and facilities (technological clusters) • Potential and type of power: Resource management power (HR brands, marketing) • Implications and conclusions: Development of competitive marketing mix and PR strategy; Lobby activities AAG Boston MA

  28. Patterns of interest intermediation-representation • Local and Foreign Investors • Characteristics: Low technologic transfer and added value; low investment/investor • Interests and motivation: More facilities; economic and administrative stability • Potential and type of power: Financial power • Implications and conclusions: Development of networks (local authorities and foreign investors) AAG Boston MA

  29. Patterns of interest intermediation-representation • Cultural and Academic Institutions • Characteristics: Strong multicultural institutions; lack of sufficient and multiple funding • Interests and motivation: Join cultural networks, co-organisation of scientific, cultural and educational events • Potential and type of power: Information and knowledge power, catalyst power. A major feature of Cluj identity and image • Implications and conclusions: Articulation of a strategic perspective based on European core values AAG Boston MA

  30. Patterns of interest intermediation-representation • Professional Associations • Characteristics: not sufficiently active in networking • Interests and motivation: Professional culture • Potential and type of power: Expert and relation power • Implications and conclusions: Training performance AAG Boston MA

  31. Best Practices in Romania Social Capital and Civil Society 2.1. Regional impact on civil society development Figure 6 The relationship between the number of NGOs in 1998 (*1000/total population) and the proportion of those who gave 1% in 2004 (*1000/total population) at the county level. AAG Boston MA

  32. The North West Region The North- Eastern Region Conclusions - high development potential in the research- development- innovation field - varied tourist potential - existence of foreign investors on the labor market - better paid jobs - the jobs offer is higher then the jobs demanding - encouragement of local initiatives attract the foreign investors by offering financial stimulations as a financial source of implementing improvement of economical policy of the region. - The need of helping the SME, the promotion of tourism, the improvement of the environment contributing to the improvement of region image for the potentials Romanian and foreign investors - Promotion the cooperation between strategic investors and local businesses from region - create new professions at the same level of the world evolution - encourage the development of interregional and international economical relationships AAG Boston MA

  33. The North- Eastern Region The North West Region The Private Initiative Dynamic - not adapted economy structure - low economical productivity and efficiency - the main activity: agriculture - decreasing trend of private initiative - reduced weigh of SME in the production and services sectors - low quality of serviced delivered to population - Early industrial development (easy industry, automobile industry, electrotechnics etc.) - good environment for the production foreign investments - the lack of development infrastructure - the development of tourism, general services, transports, professional services. AAG Boston MA

  34. - general development of the region - good business environment - competitive economical spirit - lots of foreign entrepreneurs - high trained level of population - trained labor forced - the region unemployment rate is lower than the national one. - The state sustains some measures which will end to “increase the life standard of community and the sustainable development of the Region” - Strategic directions: The development of businesses and entrepreneurship; the development of human resources; the promotion of the potential development of the Region - Increased weight of population with law training level The North-Eastern Region The Western Region Conclusions: AAG Boston MA

  35. AAG Boston MA

  36. ARC as relationships broker AAG Boston MA Figure 7: Overview of Arc’s approach and areas of work

  37. Between nonprofits involved in community fundraising - exploring opportunities for • creating a more structured space for interaction and common action as part of a net- • work of organizations involved in community fundraising. • B) Between nonprofits and businesses interested in supporting a certain field of work – • identifzing common interests such as – at national level preventing measures for traffic • safety, interest of national grant-making and community development organizations to • support long-term reconstruction process in communities affected by floods in 2005 • C) At the level of four local communities involved in community foundations development • pilot program - test need and feasibility of a shared and transparent framework for mobili- • zing community resources, based on involvement of key stakeholders – NGOs, companies • and government. AAG Boston MA

  38. Conclusions • Administrative absorption capacity is influenced by: • quality of the programming documents: OP, PC, manuals for applicants; • quality of the information campaigns regarding funding possibilities; • the existence of a project pipeline; • capacity to carry out the implementation process per se at MA/IB level; this involves the existence of appropriate procedures and the necessary human resources AAG Boston MA

  39. Concluding remarks • no clear differences between old, new, and the former communist countries, with one important exception. • length of democratic rule does not have a significant effect on the quality of social participation. • as a former communist country Romania - caught in the middle in the debates on social capital in this part of the world. • differences in social capital might be expected according to age groups as different gene-rations have different resources available to them., or to social and educational groups – poorer communities rely on the intense informal relationships associated with bonding social capital, while wealthier communities are associated with more formal organisational • participation. AAG Boston MA

  40. Conclusions • The current institutional framework does not admit/legitimise specific attributions, competences or responsibilities for regional development at regional level • Major difficulties for local/regional communities in transposing into practice a development vision (the development is the result of individual, separate actions); • Difficulties in developing and sustaining projects with regional impact and interest; AAG Boston MA

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