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Romania advanced three positions in a ranking of prosperity over the last years: the country is 45 out of 149
Romania has registered in the last years an advance of three positions in the Prosperity Indicator and is situated at present 45 out of 149 countries, according to a press release of Erste group.
‘ Erste Group and the Legaturm Institute published the third edition of the annual report regarding the prosperity which includes 149 states. The prosperity recorded a slight growth in Romania over the last years, being recorded an advance of three positions from 48 in 2016. If the region ECE were considered a single country, Romania was situated 38 in the world from the point of view of prosperity. Austria has the best position in the region, occupying the 15the place in the world, while Serbia is 56 with the lowest indicator of prosperity of ECE’ show the authors of the report in a press release.
The indicator of the Legatum Prosperity goes beyond the area of macroeconomic indicators and measure the prosperity taking into consideration both the material wealth and the social welfare.
The indicator shows the countries depending of nine different domains: economic quality, business environment, public administration, education, health, safety and security, personal liberty, trust capital and natural environment. The edition of this year of the report regarding the prosperity in ECE relies on living conditions, health and education.
The indicator reflects the remarkable growth of prosperity in ECE over the last three decades and the convergence of living standards with those in Western Europe. Even so, with the salaries there grew the expectations of the people and the cost of life, which means that the increase of income was not correlated with the growth of degree of satisfaction regarding the level of living.
According to the study, this aspect is evident among young people who, by comparison to their parents, do not analyse retrospectively how much the quality of life has risen since the fall of communism, but they see the things globally and, especially, through comparison with the youth of the same age in the Western Europe.
The big hopes of the people to lead a better life after 1989 did not materialize. 20% of the active population emigrated starting with 2004, the quoted source shows.
The growth of the cost of living influenced the indicators of prosperity
In Romania, the prices of goods and services grew with 257% between 2000 and 2017 as compared to 98% in Hungary and 87% in Latvia, the EU average being 36%. Even so, the average of the salary growth in Romania, Croatia, the Czech Republic,. Estonia and Slovakia did not surpass 3 euro/hour, against 10 euro in France.
The guarantee of a decent living level. That is why, in Romania considered that one out of five active people (18.9%) is exposed to the risk of poverty, this being the highest level of the EU, the report says.
According to him, but, the potentional of Romania to increase of prosperity is given by the educational system, classified 39 in the world. But in order to surpass the gaps of competences and to increase the number of qualified graduates, the governs of the ECE states must have a strategy on long term and to collaborate with the private sector, the authors know.
Approximately 210,000 of the Romanians work at present in the IT&C area, representing 2.5% of the total of the workforce in the country. The contribution of the sector to the GDP of Romania has increased significantly over the last years, being situated at present at 5.9%.
On the other hand, the most problematic aspect of prosperity in Romania is the social capital which is still weak. ‘83rd as the social capital is still weak and this is the most problematic aspect of prosperit in Romania. The connections and trust between citizens, as well as between the citizens and institutioins is substantially weaker in ECE than in other regions of the country’ says the document.
In the context, this shows that the improvement of the social capital will play an important role In the continuation of the transition and convergence of income in Romania, a country where
More than a quarter of the population lives under the level of poverty, as compared to 17.1% in the region of ECE and 5.1% in Western Europe. Moreover, a solid social capital allows the formation of some public strong and efficient institutions, which stimulate the development of the private sector and the creation of wealth.