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GINI Country Report: Growing Inequalities and their Impacts in Romania

Author

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  • Iuliana Precupetu

    (The Institute for Quality of Life (Romanian Academy))

  • M. Precupetu

Abstract

In Romania, inequalities have been driven by a complex of historical, economic and social factors. The communist past has left enduring marks on the country’s development, while transition shaped long lasting inequalities. During the process of post-communist transformation, Romania has been through a severe economic decline accompanied by an important rise in poverty and inequality. Related to inequality, privatisation of large state assets created important opportunities for the concentration of resources in the hands of a small elite and has been one of the major factors leading to the formation of large private wealth. Corruption and its particular form, state capture, created unjustified privileges for some categories, and produced misbalanced outputs in society. While privatisation of agriculture has generally had a distributional favourable impact, it contributed to the emergence of a large, unproductive, fragmented agricultural sector dominated by a subsistence type of farming. Even though it served as a safety net for numerous households, both for the rural population and for those coming from urban areas who lost their jobs during the industrial restructuring process, it is still a low productive sector that hasn’t realised its potential yet.

Suggested Citation

  • Iuliana Precupetu & M. Precupetu, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Romania," GINI Country Reports romania, AIAS, Amsterdam Institute for Advanced Labour Studies.
    • Handle: RePEc:aia:ginicr:romania
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    File URL: https://www1.feb.uva.nl/aias/Romania.pdf
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