Discussion Papers 2001.
Role of the Regions in the Enlarging European Union 61-80. p.
Role of the Regions in the Enlarging European Union
0 Edited by Zoltan Gal, Pecs, Centre for Regional Studies, 2001
REGIONAL DEVELOPMENT IN THE
ROMANIAN BORDER AREAS
Simona Pascariu
General overview
According to the Law 151/15 July 1998 on Regional Development in Romania,
one of the basic objectives of the regional development (art. 2.d.) is to
"stimulate inter-regional, domestic, international and cross-border co-operation,
Euro-regions included, as well the participation of the development regions in
the European structures and organisations promoting the institutional and the
economic development of the former, with a view to achieving projects on
common interest, according to the international agreements to which Romania
is part".
The length of Romania borders is 2,946 km (National Commission of Sta-
tistics NCS 1998), out of which bordering with Hungary 445 km, with
Yugoslavia 544 km, with Bulgaria 631 km, with Ukraine 635 km and with
Moldova 692 km.
A total of 19 counties (out of the total of 42, comprising Bucharest), in-
cluding almost 10 millions inhabitants) have border areas. The total surface of
the border counties covers 119,855 km 2 (50.77% of total Romanian surface).
The significance of cross-border co-operation for the county is increasing
and is being more and more taken into consideration both at national and re-
gional levels.
This issue should also be seen in relation to the process of integration with
the European Union and compatibility with the operation of the EU Structural
Funds in the longer term.
Regional development process in Romania: the Romanian
concept of regional development
The general reform being promoted by the Government of Romania includes
regional development policy as a substantial component. The basic objectives
of this policy are set out in art. 2 of Law 151/1998 and the first and most fun-

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M. Pascariu
damental of these objectives is: the law "...to reduce the existing regional
disparities, in particular by stimulating well-balanced development, by
accelerating recovery in those areas whose development has been lagging due
to historical, geographical, economical, social and political circumstances, and
to resist the emergence of new imbalances".
Table 1
Border counties of Romania
County
Area, km 2
Botopni
4,986
Suceava
8,553
Maramurq
6,304
Satu Mare
4,418
Bihor
7,554
Arad
7,754
8,697
Cara.,5-Severin
8,520
Mehedinti
4,933
Dolj
7,414
Olt
5,498
Teleorman
5,790
Giurgiu
3,526
Calara§i
5,088
Constanta
7,071
Tulcea
8,499
Galati
4,466
Vaslui
5,318
Iasi
5,476
Source: National Commission of Statistics, 1998.
The Green Paper on Regional Development in Romania (accepted by the
Romanian Government in 1997) pointed out that: "Disparities in the level of
development of different regions result from their initial endowments of natural
and human resources and the patterns of change (economic, technological,
demographic, social, political and cultural) that have shaped their development
throughout history".
Market forces tend to favour the enlargement of existing disparities. Indus-
trial centres or service areas tend to be more developed whilst marginal areas of
agricultural profile or low communication facilities become more marginal.

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Regional Development in the Romanian Border Areas
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Such tendencies can result not only in the relative impoverishment of spe-
cific regions but also in the general level of performance of the national econ-
omy being lower than it would be if economic activity were distributed more
evenly across the national territory.
The broad process of economic and administrative decentralisation is also
reflected in the law where another explicitly stated objective is to co-ordinate
the sectoral policies of the government with local and regional initiatives and
resources "with a view to attaining the sustainable economic, social and cul-
tural development" of the regions.
These processes of stimulating regional activities, co-ordinating them with
the policies of central government (while ensuring that national sectoral poli-
cies reflect regional needs) and, also, promoting inter-regional co-operation are,
most importantly, an effort by the Romanian Government to meet the particular
needs of Romania and all of its regions. However, they are also all placed ex-
plicitly by the Law on Regional Development in the context of Romania's ap-
plication for EU membership in general and the preparatory process of devel-
oping appropriate institutional structures and capacities in relation to EU re-
gional policies in particular.
As it was stated by the Green Paper: "in order to take on the obligations of
the EU membership, an applicant state must achieve certain pre-accession ob-
jectives with respect to socio-economic development, amongst which the recti-
fication of economic imbalance between the different regions of the country is
a high priority".
Policy concerns and the approach chosen
Romania is sub-divided in 42 counties (judets), including Bucharest, for ad-
ministrative purposes and to allow for more democratic government. However
the counties do not cover large enough areas to be effective for the purposes of
designing and implementing regional development policy. It was therefore pro-
posed in the Green Paper that groups of counties with complementary socio-
economic profiles should be encouraged to combine into development regions
on a voluntary basis. These development regions would be large enough to both
allow efficient use of resources and provide meaningful context for the elabo-
ration and implementation of destructive regional strategies. They would also
be appropriate for the collection and analysis of socio-economic data.
The Green Paper went to propose that "priority areas" should be specified
within the development regions. These would be groupings of contiguous
communes, cities or counties with similar significant regional development

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M. Pascariu
problems. The Green Paper, each of which contained one or more of four types
of development problem, identified sixteen different priority areas in Romania:
1) High levels of poverty
2) Industrial decline
3) High level of pollution
4) Soil degradation
While many of these priority areas fall completely within single develop-
ment areas, others do not. The manner in which the approach to priority areas
was to be articulated in the development region structure was not specified in
the Green Paper.
Institutional framework
The territory of Romania is divided into 8 Development Regions  (Figure 1)
—representing areas corresponding to a group of counties for need by free asso-
ciation, based upon an agreement signed by the representatives of the county
councils, as follows  (Table 2).
Table 2
Composition of the Romanian Development Regions
Development Region
Counties/Judets component of the region:
North-East
Bacau, Botosani, Ia§i, Suceava, Vaslui
South-East
Braila, Buzau, Constanta, Galati, Tulcea, Vrancea
South (Muntenia)
Argq, Calara.5i, Dambovita, Giurgiu, Ialomita, Prahova,
Teleorman
South-West (Oltenia)
Dolj, Gorj, Mehedini, Olt, Valcea
West Romania
Arad, Cara§-Severin, Hunedoara, Timis
North-West
Bihor, Bistrita-Nasaud, Cluj, Maramure§, Salaj, Satu Mare
Centre
Alba, Bra§ov, Covasna, Harghita, Mure*, Sibiu
Bucurqti—Ilfov
Bucure§ti, Ilfov
Among these regions only the Centre and Bucurqti—Ilfov are not border re-
gions.
The population of the 8 regions and a regional hierarchy based on the popu-
lation figure was in 1996  (Table 3).

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For these regions was set-up the following:
a) Decision-making bodies:
— A Regional Development Board is set-up each development region,
made up of the representatives of the county and local authorities in
each component county
— The National Board for Regional Development  is set-up at national
level, composed of representatives from the Government and from the
development regions in equal numbers, chained by the Prime Minister.
b) Executive bodies:
— A Regional Development Agency  is to be established in each region, as
a non-governmental body and a legal entity
— The National Agency for Regional Development  is established at na-
tional level, as a specialised body of the central public administration,
reporting to the Government
c) Financial Instruments:
— A Regional Development Fund  is set-up in each development region,
managed by the Regional Development Agency
— The National Fund for Regional Development  is set-up at national
level, managed by the National Agency for Regional Development
The legal and institutional provisions
Starting with the second half of 1998 a series of legislative steps were taken to
establish the basis for the design and delivery of regional policy in Romania
along the lines described above
—Law No. 151/1998 concerning regional development in Romania;
—Government Decision No. 634/1998, on approval of the Methodological
Norms for implementation of Law No. 151/1998;
—Government Decision No. 979/1998, for the designation of the represen-
tatives from the Government in the National Board for regional Develop-
ment;
—Government Decision No. 979/1998, for the organisation and operation of
the National Agency for regional Development;
—Law No. 20/1999, for the approval of the Government Emergency Ordi-
nance No. 24/1998 concerning the Less Favoured Areas.
In terms of institutional establishment, the National Agency for Regional
Development, all eight Regional Boards and Agencies and the National Board
for Regional Development were established by the end of March 1999. The

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Regional Development in the Romanian Border Areas
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National Agency and all of the Regional Agencies are at present in the process
of appointing personnel.
Short profiles of the Romanian border regions
As mentioned before, among the eight Romanian development regions six are
border regions. These regions do not represent administrative-territory units,
the first administrative division after the whole national territory being the
county/judet.
North East Development Region
-
The region covering the North-eastern corner of the country includes 6
counties: Botosani, Bacau, Iasi, Suceava, Neamt and Vaslui. Traditionally, the
region is part of the old historical region of Moldova. The county of Suceava is
known as part of a smaller historical region, Bucovina (the Beech-tree
Country). The region appears one of the poorest — if not the poorest — in
Romania, facing a large range of problems, from high unemployment to
environmental issues. A study carried out by the World Bank in 1997
(Romania, Poverty and Social Policy, report no. 16462 — RO, World Bank,
HRS Operation Division, Country Department I, Europe and Central Asia
Region, April 1997) indicates that there are over 1,1 million people in these 6
counties, living below the poverty threshold, which is close to 1/4 th of the total
population of Romania.
The region can be seen as the main centre of origin for the mass out-migra-
tion to other counties. However, within the region Iasi and to a certain extent
Bacau were the main centres of attraction. The industrial structure (including
textile sector, chemistry and metallic products) of the Northeast region involve
only 25% of the occupied population (against 42% in agriculture), and seems to
be very fragile for the free market economy, due to its low productivity and
economic efficiency.
As consequence, the region deals hardly the new economic conditions, the
reform process and the free competition. More, the population of the region (of
whom 98% Romanians against 89,4% the national mean) is characterised by a
certain conservatory feeling than by openness to change and modernising.
The border neighbours, Ukraine and the Republic of Moldova (both former
USSR) are connected to the region by road and rail lines, but the transport and
all the various possible changes between them are deep under traditional and
historical links.

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South-East Development Region
This region has a very irregular form and includes 6 counties: Buzau, Braila,
Constanta, Galati, Tulcea, and Vrancea. It covers a large area from the tops of
the mountains in the west to the Black Sea littoral to the East.
The region is composed of different historical areas including part of
Moldova (to the North), Muntenia (to the South) and Dobrogea (to the East). It
is probably the most heterogeneous region among the eight. It may also be de-
scribed as a composition of several specific areas: the Western side is closer to
the mountainous and hilly areas (especially Vrancea county) with a medium
low level of urbanisation, Braila is a typical traditional agricultural area and
Dobrogea is famous for its tourist attractions — the Danube Delta and the Black
Sea littoral. There are two major agglomerations, Galati, well known as a met-
allurgic centre of the country and Constanta, the maritime gate of Romania and
one of the biggest harbours at the black Sea.
The region appears to be a medium developed region of the country to most
of the indicators. It is a region, which is very much based on some high-devel-
oped areas and on a few industrial branches located in some gigantic com-
plexes. As a consequence the region faces high discrepancies between the ur-
ban agglomeration and the much broader rural zones. Practically, the region has
to support and develops around the double polarity of the Constanta and Braila-
Galati areas.
Also, the weak connection of Dobrogea to the rest of the country and to for-
eign neighbours, together wits its environmental issues represent the critical
issue of the region.
In the end, the region as a whole has a medium low-level of participation
rate (268/1000), a rate of unemployment (11%) slightly higher than the national
average and a dynamic participation 1995/1990 quite equal to the national
mean.
South Development Region
Muntenia
—
A cluster of seven counties totalling 34,400 km 2 forms the region. Five of them
— Giurgiu, Calarasi, Ialomita, Prahova and Dambovita are direct neighbours to
the capital city of Bucure§ti and two others — Arges and Teleorman — even they
are not its direct neighbours, they are close to it.
The whole South region is included into the historical region of Muntenia.
(Only two countries of Muntenia — Braila and Buzau — are out of this develop-
ment region.)

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Teleorman, Giurgiu, Calarasi and Ialomita are located in the Central Roma-
nian Plain and are bordered by Danube and Bulgaria.
The South region is clearly divided into two sub-regions. The North part
(Arges, Dambovita and Prahova) is a rich area (oil and coal industry, big po-
tential for tourism). The South part (Teleorman, Ialomita, Giurgiu and Calarasi)
is predominantly agricultural and very deep attracted by Bucuresti area.
In spite of this break of development, the two sub-regions could function as
a development or project region. Their geographic location and the communi-
cation network are the key factors favouring this potential for regional devel-
opment.
The potential for co-operation and common actions of development are es-
pecially high for the plain poor communes, which are located at the border.
The region has the largest disparities in terms of level of living, participation
rate, communication infrastructure and human capital. These disparities could
be reduced to a large degree by fostering local co-operation between South
agriculture and North industry, by improving communication infrastructure, by
developing private agriculture.
South West Development Region
Oltenia
-
—
The region is formed by all the five counties of the historical region of Oltenia:
Dolj, Gorj, Mehedinti, Olt and Valcea. It is situated between the Carpathian
Mountains and Danube. In the Southwest part of the country. Yugoslavia and
Bulgaria are its South neighbours. Location and natural resources are favour-
able conditions for a high potential of development of the region.
The region could be affected by the development of transport infrastructure,
due to its geographical potential. That's why, the option for a future bridge over
Danube will have implications on the future development of the entire South
region.
For a long period, this region was a reservoir of labour force for other re-
gions (mostly Bucuresti and Banat areas). As an outcome of lasting long dis-
tance out-migration, the region has a high degree of population ageing, espe-
cially in its Southwest part and in isolated rural areas. A demographic revival of
the central part of the region started three decades ago with the occasion of the
beginning the exploitation of lignite and the construction of some of the great-
est hydro-energetic plants.
Considering the resources of the region, its economy might be characterised
by its rural trait in the most part of the territory, character on which the point-
like character of the processing industry in the big and medium-sized urban
centre is built. An important trait, on the whole region level is the energetic

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M. Pascariu
dominant of the economy, defined on the one hand by the exploitation of coal
and oil resources, and on the other hand, by the presence of the biggest hydro-
electrical plants in the country.
Complex and complicated problems could be the ones of reintegration in the
economic circuit of spaces. Again, the favourable geographical position, the
real possibilities of cross-border co-operation, and also the agricultural re-
sources this space has, can constitute advantages in economical revitalising,
overcoming the crisis period generated by restructuring of economic activities.
West Romanian Development Region
-
The west region of Romania, formed by the association of four counties: Arad,
Timis, Hunedoara and Caras-Severin, is based on cultural identity, with obvi-
ous influences from its German population and on complementary resources,
that represents a groundwork for co-operation. The region's geographical
position individualises it, and, moreover, provides opportunities for cross-
border co-operation, too.
The natural background is dominated by highlands and lowlands — with the
whole range of variegated and specific elements almost equally divided. There
are few hills, so that the mountain often edges the plain. The relatively sudden
transition from one natural unit to the other, usually divided by a large interme-
diary area, proves to be an asset for communication and co-operation of distinct
zones that have complementary resources.
The total population of the West Region numbers 2.2 million people. Den-
sities of about 67 inhabit. /km 2, place it far behind other macro-regions of Ro-
mania. Their entire counties lists below the national average value of 96 in-
habit. /km2 : Timi (81 inhabit. /km 2), Hunedoara (75 inhabit. /km 2), Arad (67
inhabit. /km2) and Cara-Severin (46 inhabitants/km 2). Looking at the geo-
graphical conditions of these counties, it seems unrealistic to judge them by the
population density criterion. Paradoxically, Hunedoara has a lower potential for
settlement development (over 80% mountains, 20% high mountain zone; 55%
woodland and alpine pasture land), yet it stays ahead of Arad county. The fact
is that Hunedoara has massive concentrations of population in depressions and
valley corridors, being one of the highest urbanised counties of Romania.
The main demographic indicators are notably influenced by the one-child
family pattern customary in Banat, which makes the overall natural increase
rate to be negative. However, demographic behaviour has been optimised by
the influx of a young labour force coming from other regions, especially from
the northeast, where the large-family pattern is the rule. Hunedoara county,
dominated by the mining sector, improved its natural demographic indicators in

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Regional Development in the Romanian Border Areas
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the way shown above and also by the great many newcomers from the coal
basin of Petrosani (the Jiu Valley), in particular.
The settlement system has 1,338 villages grouped into 269 communes, 36
towns of which only two have over 100,000 inhabitants, and notable density
disparities between the Banat proper and Hunedoara county attached to the
region. In Hunedoara, village density is 65/1,000 km 2 , while the other three
counties score nearly half that percentage (Cara-Severin — 34; Arad — 36;
Timm — 37). The same goes for the average number of villages/commune: from
8 in Hunedoara to 4.1 in Arad, and 4.2 in Timm and Cara-Severin each. Hence,
distinct problems of infrastructure and ways of access to it.
Settlements in the plain are usually large-sized, while in the mountains they
are small and medium-sized. These disparities are reinforced at county level.
With its 661 inhabitants/village Cara-Severin is transitional from Hunedoara
(309 inhabitants/village) to Arad and Timm counties (914 and 1,006 inhabi-
tants/village, respectively). Although the living standard in the region's coun-
tryside is fairly high, nevertheless depopulation is a reality. Before 1989, it was
the attraction of the city, after that date it was the mass migration of the Ger-
man people. However, a few plain villages, with a population of over 10,000
inhabitants (Pecica — 12,000; Santana — 13,000) are the largest in Romania.
The urban system has a fairly good structure at the upper ranks of the hier-
archy, but very disproportionate in the territory. Prominent is Timiwara city
with nearly 350,000 inhabitants, next in line standing Arad (approx. 200,000
inhabit) and Resica with a population of 100,000. Although there are lots of
towns (and their number seems to be sufficient) with a population of 20,000-
100,000 they are very unevenly spread. Out of the eleven towns in this group,
eight are in Hunedoara county only. Disproportion is particularly striking in
Arad county, where the 15/1 ratios between the capital and the second-ranking
town are suggestive.
Unlike Hunedoara, where small towns represent 38% of the total, this urban
category is very numerous in Arad (86%), Timi4 (715) and Cara-Severin even
(62%).
The economy is distinctively different, but complementary. The fact that
there is certain symmetry of dominant economies is due to a specialised indus-
try, based on almost similar subsoil resources. Looking at the similarity of the
economy of Caras-Severin and Hunedoara counties, on the one hand, and of
Arad and Tim4, on the other, the idea emerged of a joint co-operation in using
their complementary resources.
In Cara-Severin and Hunedoara there is coke, ferrous and non-ferrous ores,
so extractive and metallurgical industries developed in both counties. Despite a
two-hundred-year tradition, today they stand restructured. The large forest
stock, only partially put to use, is another important resource. Part of the wood

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is processed in the big manufacturing units of Caransebes, or in the small and
medium-large enterprises of either county. Some of it goes to the big processing
units in Arad and Timis. The very diverse mountainous landscapes, the host of
natural tourist sites, the opportunities for practising specific sports, and the
recreational advantages of a highland environment represent an important eco-
nomic asset that has good prospects of future development.
The economy of Arad and Timis counties is far more complex. There is a
wider range of processing industries, including also agricultural products. The
two prominent cities — Timisoara and Arad, have a wide-ranging industrial
profile (machine-building, light industry and chemical industries in the main).
Agriculture is an efficient sector with highly productive lands, and a lively
animal breeding sector. The related industries processing agricultural products
have good prospects for development. The two counties have a nation-wide
fame for swine herding in particular, with very high pork meat productions and
processing capacities.
Two transnational corridors represent major transportation network: the na-
tional highways (El 5A and E94), and two electric railways that link Romania
to Central and Western Europe. The traffic is highest through the Mures Corri-
dor, which is also a transcontinental transit route used especially by trailers
from Central and Western Europe heading to the SE of the Continent and the
Near East.
The environment is deteriorated in places by the high polluting industries.
Frequently located in depressions or valley corridors, they have detrimental
effects on the near-by human agglomerations. Highest pollution levels are reg-
istered in Petrosani Basin, where beside industrial activities there is much
household consumption of coal; in Hunedoara—Deva (from the siderurgical
works in Hunedoara, the thermos-electrical power station at Mintia); in the
depression of Resica (centre of the siderurgical industry). In addition, there is
surface pollution from chemical fertilisers and from the large animal farms
located in the Timis and in the Mures Plains.
In conclusion it can be said that the "West" Region is one of the best-devel-
oped territories in Romania. It is a fairly complex multicultural space that has
lots of varied natural resources and a favourable geographical position for
cross-border co-operation. There is a marked distinction between the lowland
and the highland counties, the former have a complex economic structure, with
concentrations of population in one large city, and a higher living standard. The
economy of the latter is focused on mining and metallurgy, on connected and
complementary branches.
The lowland countryside has been revitalised by a new Land Law that pro-
vides for the reinstatement of private property in agriculture. This helped farm-
ers increase their revenues, develop local services and intensify the vil-

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Regional Development in the Romanian Border Areas
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lage/town relationship. As the big urban industry in Timis and Arad counties
undergoes restructuring, the number of commuters dropped to 1/7, people are
returning to work in their places of origin, where the development of small and
medium-large manufacturers absorbed many of the lay-offs.
The restructuring of the mining and metallurgical sectors in Hunedoara and
Cara§-Severin counties has a significant impact on each settlement, because
there are very few chances for people to find a job at local level. Many re-
quested to be laid off and they would go back to where they had come from.
However, this drain of young labour force may create serious long-term devel-
opment problems to these counties.
The Regional Development Agency of West Romania Region was set-up in
Timi§ county, in Timi§oara. It is very important to mention that, for the mo-
ment, this is the single region having an experience related to the strategic de-
velopment. On the basis of each county development agency (ADAR-Arad,
ADETIM-Timi§, ADECS-Cara§ Severin and ADEH-Hunedoara), supported by
each County Council and North Rhein Westfallen Land, they issued a common
development strategy in 1998, elaborating objectives and priorities for the re-
gion and measures and actions according to these.
North West Development Region
-
The northwest region includes 6 counties from the northwestern part of Roma-
nia: Maramures, Salaj, Cluj, Bistrita-Nasaud, Bihor and Satu-Mare. These
Counties are interrelated from a viewpoint of natural resources and economic
activities. Hills and low mountains dominate the landscape of the northwest
Region; there are, as well, few plains.
The total area of the N-W Region are 34,000 km 2, being characterised by a
large variety of natural conditions. In the N-E (the North part of the Oriental
Carpathian Mountains) and the S-E (the North of the Apuseni Mountains) there
is a mountain area with mineral resources, forests and agriculture (in special
pastures, meadows and livestock). Between the two mountainous areas there is
an important hilly area, crossed by the Somes River and its affluent. In the
Western part there are the Somes and Cris plains, which are low plains with a
dominant agriculture profile.
The region is highly populated, owing to a special living potential; one im-
portant characteristic to be mentioned is the relative uniform diffusion of the
localities. From a demographic viewpoint the negative natural increase rate is
noticed (in Bihor and Cluj there are the lowest values: —3.5%0 and —3.2%). In
Maramures county and in Bistrita-Nasaud the situation is different: there are

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M. Pascariu
positive natural increase rates due to the fact that in these areas the dominant
family pattern is a family with many children.
The settlement system confines 1,500 villages, grouped in 386 communes
and 35 towns. Large rural areas (more than 7000 inhabitants) are located in
plains (Diosig, Secuieni and Maramurq county). The urban system is domi-
nated by Cluj-Napoca (330,000 inhabitants) followed by Oradea (2,230,00 in-
habitants). On the second level there are two towns with 150,000 inhabitants
(Baia Mare and Satu Mare).
The economy of the region is balanced, but there are some discrepancies
between the six counties. The Counties from the Southern and Western part of
the region (Cluj, Bihor and Satu Mare) are more industrialised. In these Coun-
ties manufacturing industry is more developed while in Maramurq mining
industry and metallurgy are the major industrial branches. In the Central and
Eastern part of the region agriculture is dominant as well as livestock, orchards
and nurseries. The tourist potential and landscape enhance the economic poten-
tial as well.
Environmental situation could be considered acceptable with some notable
exception. There are some polluted areas near Baia Mare and Zalau. In Baia
Mare pollution is due to the mining activities and non-ferrous processing ac-
tivities. Air and water pollution is important in this area.
Despite the major diversity of the counties from the North-west Region it is
worth noticing the divers co-operation possibilities, due to complementary re-
sources. The unity of this region is created by the powerful polarisation of the
city Cluj-Napoca.
The privatisation and restructuring of the of the hard industry, and in par-
ticular the mining industry are the key problems of the region. The future of the
industry and the prospects for SME's development, are supported by the variety
and richness of local resources.
The Regional Development Agency of North West Region was set-up in
Cluj-Napoca, Cluj county. The difficulty of this location of the North West
RDA is that Cluj county is a "central" county and does not have an external
frontier. However, the CBC issue is well and deep understood in terms of
strong local interests of the Hungarian population of Cluj county itself. They
are well known some important Romanian-Hungarian or Hungarian Institutions,
such as the Babq—Bolyai University, the Magyar Theatre, and a.s.o. There is,
as well, a strong interest of Hungarian businesses investments in the region, and
good perspective for the economic and cultural joint development.

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The Romanian—Hungarian border region
Since 1994, the Phare Programme has provided support to facilitate cross-
border co-operation (CBC) along the borders of Central and Eastern European
Countries with adjacent regions in the EU Member States. The continuation of
the Phare CBC Programme beyond 1994 to 1999 in order to coincide with the
Interreg IIA initiative has been supported by the countries of central and East-
ern Europe and by the European Commission, which regards cross-border co-
operation as an important tool for the pre-accession strategy of both Romania
and Hungary into the European Union. In addition, the European Council at its
Essen summit supported the continuation of the Phare CBC programme in De-
cember 1994.
The 1996 CBC programme includes an allocation to support activities,
which promote cross-border co-operation on the border between Hungary and
Romania. Projects selected for funding in the framework of the Romanian pro-
gramme include infrastructure projects as well as the preparation of a Regional
Development Strategy for the eligible border region, which consists of the four
counties of (from south to north) Timisoara, Arad, Bihor and Satu-Mare. The
Hungarian counterpart programme also includes, inter alia, the preparation of a
"Regional Development Concept" for the border counties concerned. These are
the counties of Bekes, Csongrad, Hajdtit-Bihar and Szabolcs-Szatmar-Bereg.
The Romanian counties on the border with Hungary, have been parts of dis-
tinct historic provinces:
— Banat (the Timis county and some areas of the Arad county);
— Crisana (some areas of the Arad county and the Bihor county;)
— Maramures (the Satu-Mare county).
For social, economic and other reasons, the cross-border region is a coherent
economic and geographic area. A considerable amount of inter-regional co-
operation between individual counties or groups of counties already exists,
although there is equally a strong element of competition.
Although the four counties belong to the more prosperous ones in Romania,
there are a number of issues, which affect economic development. In parts of
the border region (for example Timis county) agriculture retains an important
share of GDP and the production system is in need of modernisation. The pri-
vatisation process is underway and traditional industries are in need of restruc-
turing. Although small and medium sized enterprises are gradually emerging,
this process needs to be supported. Economic restructuring has led to a rise in
unemployment in all of the four counties which is comparatively low in Timis
(3.8%) but rising in the northern part of the border region, (e.g. 6.2% in Satu
Mare) which is generally less developed. The border region has relatively poor

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M. Pascariu
infrastructure and communications (e.g. rail and road network) but is well
placed within a broader European and central European context. Hungarian
minorities have a strong presence in the border region.
The regional study project comprises a systematic approach to the produc-
tion of a comprehensive strategy for the cross-border region. The importance of
the strategy should be seen in terms of both a process, which will enhance the
capacity of the region in terms of regional development, and a final output
comprising a document, which will identify priorities and measures for the
development of the border region.
The Regional Study will build the regional strategy on the basis of consoli-
dating strategies, which are to be developed for each of the Romanian counties.
The final document will provide a strategy for the development of the cross-
border region on both sides of the Romanian and Hungarian border.
All counties have developed cross-border activities with Hungarian partners
in different sectors. Examples are co-operation activities between businesses,
universities and other actors. The presence of Hungarian/Romanian minorities
on either side of the border has led to various cross-border activities in the cul-
tural sphere. In some cases this has led to the signing of co-operation protocols
between neighbouring counties, e.g. Arad, Timm and Bekes, Csongrad.
On the Hungarian side, the 1996 Act on Regional Development and Physical
Planning states the regional development is to be co-ordinated at the level of
the counties. The Act also introduces the concept of regions as a policy element
for planning and development purposes, and for the financial development of
projects that go beyond the concerns of one county. County Development
Councils have been set up in the four counties participating in the project and
were actively involved in programme preparation and project selection. County
Development Strategies in accordance with the Hungarian Regional Develop-
ment Concept have been developed in some of these counties. The Hungarian
counterpart project started this April.
Since the start of this process (considered as such and not a project having a
beginning and an end) a number of significant aspects could be underlined, in
order to identify the strategic priorities, the crucial objectives, the specific poli-
cies and the key actors and networks able to put in place a (functioning) system
of cross-border economic development in the region.
Local administration
As it is the case for most of Central and East European Countries, in Roma-
nia, as well, the decentralisation meant in most cases the transfer of responsi-
bilities toward the lower levels of the system. However, the legislative frame-
work is still incomplete and often the missing part is the democratic mechanism

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Regional Development in the Romanian Border Areas
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for the management of public affairs (based on the nearest territoriality concept
and the direct contact between the elected and the inhabitants).
As a general consequence, the major problem in the field is the establish-
ment of an adequate policy making capacity at local and regional level.
In Romania (in the border region too) there is present the lack of an efficient
management and the existence of pressures /tensions related to the reform (the
reform implementation process in a diffuse framework by an incomplete full-
fledge administration).
Raising awareness and dialogue
During the start of this Phare CBC Regional Study project (April 1998)
every of its work-phrases were pointed by often working meetings in each of
the four involved Romanian counties: Timm, Arad, Bihor and Satu Mare. These
meetings, including workshops and counties conferences among them, were
meant to bring together in broader forums or restraint working groups the key
actors (decision-makers, business-persons, specialists, managers, media, a.s.o.),
to discuss and share their views regarding the topic.
It was clear even from the very beginning that step-by-step, the issue was
understood, bringing to the crystallisation of some important priorities. How-
ever, another observation is that it is very difficult to enlarge a strategic per-
spective beyond the county territorial limits. If, the cross-border co-operation
with the Hungarian is welcome, the acceptance of a regional priority in the
three other counties is very difficult. The most successful aspect related to the
raising awareness and the dialogue is the real involvement and huge perspec-
tives opened by this diverse participation.
Tradition and modernity
Sixty-seventy years ago, a fair in the Romanian-Hungarian border region in
Timm county area, was naturally bringing together farmers and people from an
important neighbouring area having different ethnic background (Germans,
Hungarians, Romanians, Serbs, Croats). Administrative national borders have
not hampered this event.
For at least fifty years, this (and not only) kind of manifestations was for-
bidden. Today, the network of "links" should be rebuilt on the basis of this
common tradition and history. However, the new emerged idea of new possi-
bilities offered by the new age of Information and new technologies should be
implemented as well in order to attract investments and young well qualified
labour force in the region.
Projects, projects, projects
The CBC process is and will be supported by specific projects in the fields
and sectors identified by the strategy as priorities (e.g. infrastructure, environ-

Simona Pascariu : Regional Development in the Romanian Border Areas.
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M. Pascariu
ment, human resources...). In order to attract these funds for development, the
region will face a strong competition between Romania and Hungary, but
among the Romanian and Hungarian counties as well.
The crucial issues for proposal and selection of projects should take into
consideration some criterias such as:
—CBC impact/or mirrored effect;
—Facilities and local/regional support;
—Management at local/regional level;
—Costs;
—Number of people affected;
—Effectiveness and efficiency;
—Use of local/regional resources.
The Regional Study will propose a set of criteria (agreed with the Hungarian
partners), for the use of the projects included in the Small Projects Funds
(1999), having a lump sum of 500.000 EURO, and preparing the frame for all
the projects starting with 2000.
An important aspect is that a Joint Ro/Hu Committee will carry the selection
process up.
SME's and NGO's
It is obvious in the restructuring of the society (in itself) and the regional
economy that both SME's and NGO's represent key factors for the develop-
ment. The potential dynamism, flexibility and (a relative) independence of this
kind of organisation will facilitate the process of CBC and its quick spread and
better understanding in the region.
Another important element is represented by the diversity of sectors cov-
ered: from agriculture and tourism, to industry and culture.
Region/Sub-regions/counties?
As mentioned before, the four Romanian involved counties are parts of two
development regions:
—Arad and Tim4 in the West Development Region;
—Bihor and Satu Mare in the Northwest Development Region.
This situation faces the same image in the Hungarian part of the CBC Ro/Hu
region. It will be of crucial importance to identify specific priorities at these
different levels:
—Between 2 counties (one Romanian and one Hungarian);
—Between 2 sub-regions (2 Romanian and 2 Hungarian counties);

Simona Pascariu : Regional Development in the Romanian Border Areas.
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Regional Development in the Romanian Border Areas
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— Between the Romanian and the Hungarian border regions (4 counties
each);
— At all CBC region (8 counties).
I really think that a correct distribution and selection of these priori-
ties/levels will be one of the key success factors for the entire process of co-
operation and development.
EU interface
This issue should be seen in the following perspectives/activities:
— Providing technical assistance for the SWOT analyses, diagnoses and
elaboration of the joint CBC strategy;
Enabling and creating a frame for a dialogue between the interested ac-
tors;
— Getting involved in the co-operation process, as direct partner for both
Romanian and Hungarian local and regional authorities;
— Providing know-how, best practices and support to the regional benefici-
aries;
Generating a framework for debates for the target groups of the CBC pro-
cess and for the potential financing organisations;
Becoming actively involved as partners in the process.
Institutionalisation
One of the tasks of the Regional Study is the proposal of a joint Ro/Hu
structure able to carry out the CBC process in the region. Problems like differ-
ent legislation systems and financing can be overcome by setting-up — in an
inception phrase — an institution having as major task the management of a
common agreed problem. However, this issue should be discussed with Hun-
garian partners in detail and linked to existing CBC organisations in the region.
Synergy
Another crucial issue of the CBC process is the creation of synergy of ac-
tivities, projects and programmes included, in order to avoid overlapping. A
key issue is to co-ordinate CBC activities in the large frame of different organi-
sations and movements, regions and CBC institutions (e.g. Eurocarpathian Re-
gion Danube—Mures—Cris Euroregion, RO/HU CBC Region).
Partnership and priorities
In the end, the most important challenge is the capacity of building and the
creation of a real partnership in the Romanian—Hungarian region. More and

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M. Pascariu
more (and the potential and existing conflict area show this), the partnership is
the most important frame for every positive development.
The Ro/Hu region has an impressive potential: natural and human resources,
a strategic location, common traditions and history... Priorities for intervention
should be identified on the basis of partnership if we want for this potential to
be sustainable developed.
Some mistakes are inevitable. But, even so, a partnerial approach is the sin-
gle one to be realistically taken into consideration.
Conclusions
At this stage of the implementation of CBC Regional Study I think that the
most important challenge in the co-operation process is the border area(s) is
related to possible difficulties.
Finally no matter how promising the opportunities could be, it is realistic to
take into consideration major risks such as:
— The uncertainty of funding from central and regional local funds for pro-
grammes/projects;
— The involvement of towns with county rights in the implementation- as a
result of awkward legislation — may be insufficient;
— As a competition between counties and institutions may make the imple-
mentation of the reform and the CBC process harder tan expected;
— Undesirable political changes may end up again in difficulties;
— The group of counties will both be able to form regions (having a voice)
and operate with the necessary efficiency in the regional framework.
References
Aster Technical Assistance Team, Regional Development Institution Building Pro-
gramme (Phare, Romania), Basic Information notes, 1999.
Budisteanu, I.—Pascariu, S. 1998: Perspectives and strategies of Spatial Development
Policy in CADSES < Interreg 'IC — Vision Planet, Romania, National Contribution,
Report, 1998.
National Commission of Statistics: National Statistical Yearbook.
Pascariu, S. 1998: New Communication Challenges: Local and Regional Government
and EU. Paper.
Pascariu, S.: Management of Phare CBC Ro/HU Regional Study, 1998-1999.
Rambo! Consultancy Groups 1997: Profiles of the Romanian Development Regions.
Report.
Romania. Poverty and Social Policy, 1997: World Bank, Report No. 16462—RO.