Romania is still a highly-regulated economy
Romania is among the few states in this part of Europe that is not yet member of the Organization for Economic Cooperation and Development (OECD). Seen as the select club of industrialized states, OECD is yet to accept Romania as a full-fledged member. This could also be explained through the fact that our diplomacy did not know how to argue that Romania is, in many sectors of its economy, more advanced than some OECD states. The latest membership bid was made by Premier Victor Ponta in 2012, through a letter of intent filed to the Secretary General of OECD. There was no positive reaction. Paradoxically, Romania cooperates with OECD in numerous committees and commissions. Romania is represented at the meetings of 19 working structures of OECD. Experts from approximately 14 ministries and government agencies are taking part in these meetings. The Foreign Affairs Minister coordinates Romania’s relationship with OECD.
Why is Romania not admitted into OECD? A possible answer came on October 15 from an OECD official:
“Romana is still a highly-regulated economy and even if regulation in itself is not bad, more regulated economies tend to grow slower,” John Davies, Director of OECD’s Competition Division, stated while attending the launch of a joint project with the Romanian authorities.
“That doesn’t mean that regulation is bad, but it is an observable fact, based on OECD analyses, that regulated economies tend to grow slower. (…) The most recent data obtained by OECD show that Romania still remains a highly-regulated economy and has a high number of markets that are much more regulated than in the case of other OECD states. Romania is not fully outside the OECD standings from this point of view, but it is in the lower part of the standings,” Davies added.
We have to admit that the aforementioned reasoning is full of paradoxes.