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SUSTAINABLE DEVELOPMENT OF THE EMERGING EUROREGIONS.

CASE
STUDY: SIRET-PRUT-NISTRU EUROREGION
Alina Haller
cercet. t. III dr.
Academia Romn Filiala Iai - ICES ,,Gh. Zane"
Rezumat:
n lucrarea de fa ne referim la euroregiuni i la dezvoltare. n particular, la Euroregiunea SiretPrut-Nistru. O euroregiune emergent, spunem noi. De ce emergent? Deoarece o parte dintre teritoriile
care o formeaz sunt componente ale unor ri ce au primit statutul de emergent. rile emergente au ca
obiectiv nu doar dezvoltarea ci dezvoltarea n condiiile reducerii decalajelor fa de statele industrializate
ale lumii. Pe lng faptul c i-au propus acest obiectiv, statele emergente au reuit s se nscrie pe o
tendin care duce spre realizarea dezideratului lor. O euroregiune a cror teritorii aparin unor ri
emergente nu poate fi dect emergent i subiectul lucrrii noastre.
Abstract:
In this paper, we deal with Euroregions and to development. In particular, with the Siret-PrutNistru Euroregion. An emerging region, we say. Why emerging? Because some of the territories which
form the Euroregion are parts of countries that have received the emergent status. Emerging countries aim
not only at development but at development while reducing gaps between them and industrialized countries
of the world. Besides the fact that they have proposed this objective, emerging countries were able to
follow a trend that leads them to achieve their goal. A euroregion whose territories belong to emerging
countries can only be emergent and the subject of the present paper.
Keywords: emergent, development, euroregion, Siret-Prut-Nistru Euroregion

Introduction
What is a region? A region is part of a territory (state, continent, geographical
area, etc.) and is characterized by specific features and by the community living in that
territory.1
Sorin Chiri speaks about three categories of regions:
- inside the states;
- inside a specific geographical area, comprising the territory of several states;
- cross-border regions.
After the Maastricht Treaty was signed, regions have become strong elements of
the European integration. Social diversity, economic diversity and cultural diversity
underlay the concept of region.
A Euroregion is a region on the European territory. The reasons why Euroregions
were established are quite various. The main cause is economic development. Equally
important are cooperation, conservation of cultural values and of traditions.
On the European territory there are a relatively high number of Euroregions. They
have evolved differently, as they are on the territory of countries with different degrees of
economic, social and technological development, being set up at different times, under
1

Chiri Sorin (ed.), Analiza dezvoltrilor regionale n UE i SUA, Institutul pentru Dezvoltarea Resurselor
Umane;
http://www.sorinchirita.ro/documente/ANALIZA%20DEZVOLTARII%20REGIONALE%20IN%20UE
%20SI%20SUA.pdf (accessed 3 July 2015, 05:59 p.m.)

different circumstances and benefiting from different opportunities. We should also add
the different situations of terms of natural resources and in terms of population.
A Euroregion can function on the territory of a single state, but most of the times
it functions on the territory of several states. Although geographical proximity exists,
homogeneity may not be a common denominator. What is a must in a Euroregion?
Luminia - Daniela Constantin specifies the necessary conditions2:
- the diminution of disparities between regions, between the urban and the rural
area, between centre and eriphery;
- the coordination of local initiatives with natural and supranational ones;
- the promotion of differentiated policies, according to local particularities.
The main objective of Euroregions is development, but not of any type. First of
all, it should be sustainable, and secondly, it should range at the level that might allow it
to reduce gaps compared to industrialized states.
Sustainable development in Euroregional context. What this is and how this
should be achieved
The development of Euroregions needs to be done in a balanced manner,
corroborated with the national strategies by means of cooperation, of progress in the field
of competitiveness, taking into consideration all the time the principles of durable
development and of economic and social cohesion (in various fields: technology,
education, training, research and development, etc.).
Regional development (Euroregional in this case) is a relatively new concept,
aiming to impel and diversify economic activities, to stimulate investments in the private
sector, to reduce unemployment and, not least, to improve the standards of living.3.
Euroregional development supposes territorial cohesion. In other words, within a
Euroregion, everything starts from the balanced development of the territory, from the
reduction of disparities and the capitalization of the potential of the territories that are
part of the Euroregion.
The territorial dimension of cohesion was introduced by the Treaty of Lisbon,
being added to the social and economic dimension, and thus becoming a stated objective
of politics at the level of the European Union4.
The purpose of social cohesion is the achievement of the objective of
development, in a certain, harmonious and balanced, way, of the territories within the
Euroregions. The economic and social cohesion is an objective that can be achieved in
time, with the cooperation of the authorities, of the economic actors and of the population
as well, who, together, make us of, complete and consolidate the development of the
region where they live and work.
2

Constantin Luminia-Daniela, 2004, Strategia i politica regional n Romnia, in Administraie i


Management Public, no. 2, pp. 29-38; http://www.ramp.ase.ro/_data/files/articole/2_05.pdf (accessed 3 July
2015, 06:18 p.m.)
3
Crnu Doru, 2010, Particulars of Regional Development and Specific Causes, in Analele Universitii
Constantin
Brncui,
Trgu
Jiu,
series
Economie,
no.
3,
pp.
75-87;
http://www.utgjiu.ro/revista/ec/pdf/2010-03/6_DORU_CIRNU.pdf (accessed 6 July 2015, 03:11 p.m.)
4
ADR, 2014, Strategia de dezvoltare regional 2014-2020, December; http://www.fonduristructurale.ro/Document_Files//fs2014-2020/00010115/rpk8i_POR%202014-2020%20-%20iulie
%202014.pdf (accessed 6 July 2015, 04:15 p.m.)

Sustainable development of a Euroregion needs cooperation between institutions,


economic actors and society. Cooperation involved the establishment, the dissemination
and the knowledge of some objectives that are subordinated to sustainable development.
For lack of dissemination of the objectives that are aimed at with a view to development,
it is difficult to obtain a harmonious Euroregional cooperation, directed in a well-defined
sense, towards sustainable development.
Sustainable development is a plenary objective, followed by any economy,
regional grouping, or at the world level. The rest of the economic and social objectives
are subordinated to development. Hence the complexity of the process. The mere
inflation of macro-indicators does not equal development. For sustainable development,
the efforts are multiple, not singular, they are complex, difficult, they suppose acceptance
from everyone and actions with a view to accomplishment.
The title of this paper and the context tell that we deal here with a certain form of
development, i.e. the sustainable one, in accordance with the protection of environment
and of the ecosystem in the long run. The very sustainability raises the highest fears and
difficulties. Development involved, first of all, rise (joining ascendant tendencies of the
economic indicators). Economic growth is a more than favourable process for economy
and society. Growth involves advantages, but also advantages. Besides, among others,
rise of incomes, of GDP, of production, of investments, of profit, of employment, growth
is made with certain costs, such as air, soil and water pollution, global warming, intensive
agricultural production, which is negatively affected by pesticides and fertilizers, the
consumption of industrially strongly processed, unhealthy products, high power
consumption, resource depletion, drinking water depletion, etc. The costs of growth are
the factors that draw attention on the concept of sustainable development. Development
remains a priority, but it is more than necessary to modify its foundation. That is, growth
in the sense of the reduction of associated costs. The reduction of the growth ensure the
sustainability of this process and, implicitly, of development.
Figure no. 1: Sustainable development
Economic Growth
(quantity)

Add:
Social
Progress
(quality)

Sustainable
Development

Remove:
Economic
Growth
Costs

Source: figure made by the author

Without costs, growth is slow. Over time, the costs of growth were minimized.
The faster the progress speed was, the higher the costs, while the negative effects were so
striking that, presently, the whole human kind faces real dysfunctions and lacks. Global
warming is one of the most serious costs of growth. One should add pollution, drinking
water depletion, the offensive of the multinationals, the industrial processing of farm
products with additives that damage human health, the depletion of natural resources, the
destruction of flora and fauna, etc.
The paradox of development is the maintenance of a particularly large number of
people who live under the poverty line, the increasingly bigger gap between a narrow
segment of very rich population and a wider and wider segment of poor population. The
third world faces difficulties in getting access to educational, health, cultural services,
that is, to development. Other costs such as pollution or global warming are supported by
us all, regardless of where or how we live. The more serious aspect is that the next
generations will bear them too, who are not guilty of their emergence. These are, briefly,
the main reasons why the sustainable development is the main objective that is worth
following now and in the future, besides development.
For development to be sustainable, each institution, economic agent, community
and individual should have its own contribution. Each link in the economic and social
chain should be aware of what sustainability is, how important this is for the present and,
above all, for the future. Progress cannot go on the way it has by now, in an ignorant,
voracious and narrow manner (results meant for certain social categories and/or
countries). From now on, progress (development) should be accomplished in a conscious,
altruistic, wide and visionary way.
The need for sustainable development
In 1972, between the 5th and the 16th of June, in Stockholm there was a UN
conference on environmental issues.5 Subsequently, the World Commission on
Environment and Development was established, under the aegis of the United Nations.
Actually, starting with 1972, sustainable development was included among the world
economic and social priorities, by a controversial discussion between the north (the
industrialized countries) and the south (the developing countries) around the pollution
issue.
In 1982, within the World Commission for Environment and Development, the
Brundtland Report was presented (named after one of the Commission members, Gro
Harlem Brundtland, who became prime minister of Norway in 1987) or Our Common
Future. The Report highlighted the responsibilities of all developed and Third World
countries, the directing lines for the future following to be drawn.6
The conclusion of the Brundtland Report was disconcerting, as it stipulated that
under the circumstances of a future consumption of natural resources in the same rhythm
5

The slogan of the conference proceedings was Only One Earth, and the day of 5 June became the
world environment day (Ministry of Environment, Waters and Woods, Dezvoltarea durabil la nivel
mondial; http://apmbv.anpm.ro/ro/dezvoltare-durabila - accessed 7 July 2015, 05:15 p.m.)
6
Fistung Daniel, Miroiu Rodica, Popescu Teodor, Antonescu Daniela, Dezvoltare regional durabil, un
nou concept sau o necesitate?, in Dezvoltarea regional durabil, pp. 49-111;
http://oeconomica.org.ro/files/pdf/118.pdf (accessed 7 July 2015, 05:26 p.m.)

as by then, if poverty is not reduced, if the environment I still polluted, if waste is


accumulated in constant amounts, then the quality of life would decrease. The concept of
sustainable development was used in the sense of guaranteeing that needs are met in a
way that would not affect the capacity of future generations to carry out their activities
and to meet their own needs.
Another important step towards sustainable development was the 1992
Conference, between the 3rd and the 14th of June at Rio de Janeiro (Brazil), also known as
the Earth Summit. Sustainable development provides the current and the future
generations with economic security and social equity. The conclusion of the Conference
of Rio was that all people are entitled to a healthy life, that activities should take place in
accordance with the natural environment, without destroying it. All the world states will
exploit their natural resources without provoking destructions on the territory of other
countries. Sustainable development is supported by three other types of development:
economic, social, and environment development.
Another phase in the line of sustainable development was the Summit of
Johannesburg (South Africa) in 2002, 26 August - 04 September. In this conference,
previous commitments were reaffirmed and the previous actions related to environment
and economy were analysed. If at Rio de Janeiro the focus was placed on environment
aspect, at Johannesburg aspects related to globalization were analysed, from the
standpoint of environment protection7, of poverty reduction by means of solidarity,
modification of production and consumption models, measures of environment protection
by the polluters taking responsibility, rise of investments in fields such as alternative,
unpolluting resources production, development of ecological farm production.
Of course, the three mentioned conferences as phases in the explanation of the
concept of sustainable development are not the only ones. They are the most important
ones. As the concept is outlined, each economy, country, region, Euroregion, community
and individual should be aware of the importance of its practical accomplishment.
At the level of a Euroregion, sustainable development demands equity and a
proper institutional framework, able to stimulate and support cooperation. One of the
main objectives of sustainable development is the reduction of gaps between territories.
Within a Euroregion, such as Siret-Prut-Nistru, such desiderata exist, associated to a
major risk: reduction of gaps is made in the detriment of the more developed member,
who becomes a donator. This risk is not major in the case of regions where the members
come from developed countries. When the territories of the Euroregion belong to less
developed countries, such the Siret-Prut-Nistru Euroregion, the risk of disequilibrium is
high, and the development objective (not necessarily sustainable development) might be
accomplished in the advantage of the less developed component (Republic of Moldova)
and in the detriment of the more developed component (Romania), which becomes the
pillar (supporter) of the Euroregion, although in reality the strong element is itself pretty
frail.

Fistung Daniel, Miroiu Rodica, Popescu Teodor, Antonescu Daniela, Dezvoltare regional durabil, un
nou concept sau o necesitate?, in Dezvoltarea regional durabil, pp. 49-111;
http://oeconomica.org.ro/files/pdf/118.pdf (accessed 7 July 2015, 05:26 p.m.)

Case study: Siret-Prut-Nistru Euroregion


Siret-Prut-Nistru Euroregion was established in 2005. It is a cross-border
cooperation region. Initially, Siret-Prut-Nistru Euroregion involved the cooperation
between the three regions from Moldavia (Iai, Vaslui, Neam) Romania and several
districts from the Republic of Moldova. Currently, Siret-Prut-Nistru Euroregion includes
three regions from Romania (Iai, Vaslui, Prahova), 26 districts from Moldova and, based
on a cooperation agreement signed in November 2012, Vinnitsa region (Ukraine).
In the following, we will refer to the Romanian part of Siret-Prut-Nistru Euroregion
for lack of statistical data.
Table 1: Romanian Poverty Map
Romanian Region
PIB/loc. (euro/loc.)
North-East
4000
South-West
5400
Bucharest-Ilfov
15800
South
5400
South-West
5000
West
7100
Centre
6200
North-West
5800

%PPS*
29
39
113
39
36
51
45
41

Poverty Degree
severe
accentuated
minimum
accentuated
accentuated
medium
medium
accentuated

Source: Pacso Lazlo, 2015, Statistici i infografice din Romnia: O serie de statistici, informa ii i
infografice despre Romnia; https://www.pinterest.com/pin/409405422353691722/
PPS Person`s Pivot Study

Iai and Vaslui are parts of the North-East Region and Prahova is part of the South
Region. North-East Region has a severe degree of poverty and South Region has an
accentuated degree of poverty. It is very hard for us to see Prahova like a real member of
Siret-Prut-Nistru Euroregion. A Euroregion is a cross-border form of cooperation, a
cooperation on a compact and homogeneous territory. With what speed can Prahova
influence Iai or Vaslui and how? The superior degree of Prahovas development
modifies, in a positive way, the Euroregions economic indicators but, in reality, the
influence is fragile. Siret-Prut-Nistru Euroregion is poor and not well developed. If we
consider the Republic of Moldova component, Siret-Prut-Nistru Euroregion is a very
vulnerable region.
Table 2: Arable Land Prices per Region
Region
Agricultural Land Price (euro/ha)
Criana
300
Maramure
2900
Bucovina
2600
Banat
3600
Transilvania
3200
Moldova
2900
Oltenia
2800
Muntenia
3500
Dobrogea
3300
Source: Pacso Lazlo, 2015, Statistici i infografice din Romnia: O serie de statistici, informa ii i
infografice despre Romnia; https://www.pinterest.com/pin/409405422353691722/

Romania was and is an agricultural country. Twenty years already passed since,
with the change of the economic system, the mentality has changed. The Romanians
didnt want to make agriculture. Their attention was oriented to construction, industry
and services. However, the price of farm land has risen steadily. In Moldavia (table 2),
the price of arable land is 2900 euro/ha and in North-East Region it is 1550 euro/ha (table
3). By juxtaposing the two regions we can deduce that, in Iasi and Vaslui, arable land
price is low compared to other Romanian regions. With irrigation systems destroyed, with
fewer farmers, with a lack of cooperatives and lots of landowners unable to perform
efficient activities, Iai and Vaslui are not able to ensure the consumption of agricultural
products for the local population. Weather warming, drought, high fees are barriers to
obtaining sufficient quantities of agricultural products, to improving their quality or to
reducing the prices. These factors lock the market and easily leave place for imported
products. And all this happens though the Euroregion (on the whole) has a high
agricultural potential.
Table 3: Average Price and Arable Land by Development Regions
Region
Surface (ha)
Average Price (euro/ha)
North-East
1900000
1550
North-West
1800000
1800
Centre
1620000
3200
West
1700000
2150
South-West
1600000
1650
South
2300000
2200
Bucharest - Ilfov
62300
2650
South-East
2190000
2150
Source: Pacso Lazlo, 2015, Statistici i infografice din Romnia: O serie de statistici, informa ii i
infografice despre Romnia; https://www.pinterest.com/pin/409405422353691722/

Table 4: Arable Land Price Evolution in Romania


Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*

Average Price
(euro/ha)
351
308
278
237
284
879
1000
927
1408
1500
1700
1972
2300

Source: Pacso Lazlo, 2015, Statistici i infografice din Romnia: O serie de statistici, informa ii
i infografice despre Romnia; https://www.pinterest.com/pin/409405422353691722/
estimation

Table 5: Entrepreneurs Problems - Results based on an Ernst&Young study


Percentage of
Respondents needs
Respondents
Entrepreneurs need to be allowed to develop a business. They are
43
discontent with the tax level, fiscal uncertainty and bureaucracy.
Entrepreneurs need a culture able to sustain them. They expect
52
improving communication success stories to have a powerful impact
on the entrepreneurial culture.
Entrepreneurs need the simplification of the fiscal environment. A
91
simplification of taxation and regulation are necessary.
94
Entrepreneurs need a predictable fiscal environment.
Entrepreneurs need help to access financing. The Finance access is
88
difficult or very difficult.
Entrepreneurs have their own contribution, thought mentoring [nu
80
inteleg], to the other entrepreneurs development. They are mentoring,
in a formal or informal way, other entrepreneurs.
Entrepreneurs need government help. They are sure that credit schemes
29
for small business are very efficient.
Entrepreneurs consider that a mental change will be good. It is
important that people tolerate failure. Failure is seen like a barrier in a
81
new business start. Failure is equalized with career [?] stranding or/and
with the absence of needed abilities.
Source: Pacso Lazlo, 2015, Statistici i infografice din Romnia: O serie de statistici, informa ii i
infografice despre Romnia; www.pinterest.com/pin/
the respondents were entrepreneurs from Romania

Agriculture, industry and services are the market and development pillars. All three
sectors must be founded in economy and well harmonized in order to set up a strong basis
for growth and development. But the business sector is not strong at all. The
entrepreneurs have lots of barriers in their activities (table 5). Bureaucracy, high tax level,
wrong mentality, difficult access to finance, a poor culture, poor information access, all of
these are only a part of the problems that entrepreneurs face and that impede them from
developing profitable business activities. The distance from the western border, the
concentration of large companies in the west of the country and in the capital city
demotivate investors from focusing on Moldavia.

Figure 1: Education level in Romania

Source: Pacso Lazlo, 2015, Statistici i infografice din Romnia: O serie de statistici, informa ii i
infografice despre Romnia; www.pinterest.com/pin/

More than 15% of the inhabitants of Timi, Cluj, Braov and Bucharest attended
university studies. In the case of Siret-Prut-Nistru Euroregion the Romanian part, the
percents are between 12% and 15% in the particular case of Iai and Prahova and under
7% in the case of Vaslui. Per Euroregion, we talk about 10% of the total population with
higher education (which is very little).
Table 6: Foreign Investments and the Evolution of Wages Depending on Foreign
Investments
Regions

Total Balance of Social Capital


Subscribed by Foreign Firms
(billion)

Average of Net Wage


Ron/Month

Transilvania
Maramures
28,35
1336
Banat
Crisana
Muntenia
Oltenia
22,28
1387
Dobrogea
Moldova
8,15
1290
Bucovina
Source: Pacso Lazlo, 2015, Statistici i infografice din Romnia: O serie de statistici, informa ii i
infografice despre Romnia; www.pinterest.com/pin/

In Iai county, the total balance of capital subscribed by foreign companies was
0.83 billion Ron, and the average salary was 1499 Ron. In the case of Vaslui, the total
balance of capital subscribed by foreign companies was 0.13 billion Ron and the average
salary was 1171 Ron. We observe the big gap between the Moldavian part of the
Euroregion and Prahova, where the total balance of capital subscribed by foreign firms
was 4.65 billion and the average wage was 1542 Ron. Prahova is famous for his tourism
opportunities, being a beautiful mountainous region, attractive for Romanian and foreign

visitors. Being a tourism region it is normal for Prahova to attract, besides tourists,
investors. The development difference between Prahova and the Moldavian part of the
Siret-Prut-Nistru Euroregion is visible.
In Romania, the total balance of capital subscribed by foreign companies was, in
2014, 146.7 billion Ron and the average wage was 1579 Ron. The most attractive regions
were Bucharest-Ilfov (81.5 billion: Bucharest 71.0 billion and Ilfov 10.5 billion). In
Bucharest and Ilfov the average salary was 2132 Ron (Bucharest 2304 Ron and Ilfov
1960 Ron). In the case of Timi (West Region) the total balance of capital subscribed by
foreign companies was 4.69 billion Ron and the average salary was 1704 Ron. Braov is
another attraction for foreign investors with a total balance of capital subscribed by
foreign companies of 4.57 billion Ron and a medium wage of 1543 billion Ron.
Table 7: Growth and Poverty Poles in Romania (2013, GDP per capita (Ron))
Region

GDP per capita


>29000 ron

GDP per capita


23000-29000
27578

GDP per capita


<23000

Iai
Vaslui
Prahova
29463
Bucureti
84169
Timi
47669
Braov
43501
Ilfov
41651
Constana
40141
Botoani
Teleorman
Source: Pacso Lazlo, 2015, Statistici i infografice din Romnia: O serie de
infografice despre Romnia; www.pinterest.com/pin/

14639

16361
18591
statistici, informa ii i

Table 7 illustrates the growth and poverty poles in Romania from the analysis of GDP per
capita. We observe that Bucharest recorded the biggest value of GDP per capita and, at the
opposite side, Vaslui recorded the smallest, being the poverty pole in Romania. Iai recorded a
value of GDP per capita equal to 27578 Ron, and Prahova to 29463 Ron. This means an average
of 23893 Ron. This value gives to the Siret-Prut-Nistru Euroregion the poverty pole status.
Excluding Prahova, the value of GDP per capita for Vaslui and Iai was 21208 Ron, a very small
one, illustrating a real development gap caused by a wide range of difficulties the two regions
faced. We can characterize Iai and Vaslui as poles of poverty without mistakes. Iai is one of the
biggest towns in Romania, a cultural city, but also one of the poorest. The geographical position
is, maybe, the starting point in finding and analyzing the factors that break [?] development.
Conclusions:
We structured the article in two parts: a conceptual one and a case study. We started from
the sustainable development concept. Sustainable development is an increasingly important
concept for all of us because it involves economy, society and environment. And, under the
umbrella of economy, society and environment we find the security of all: people, animals, plants,
resources, etc. It is about the security of our future.
In this context, we tried to analyze, in short, the Siret-Prut-Nistru Euroregion, an emerging
cooperation region functioning at the Romanian and Republic of Moldova periphery. This
Euroregion is a paradox because it includes a component from the South Region of Romania:
Prahova.

After the analysis, we concluded that, as important as sustainable development is, the SiretPrut-Nistru Euroregion has so many problems and as many difficulties in achieving the objective
of sustainable development.

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