EXECUTIVE SUMMARY The seemingly never-ending financial crisis of 2008 has brought home the imperative for countries,

organizations and even individuals to re-think their economic habits and behavior. The things that used to work before the crisis, and the things everyone used to get away with, are out. Before, the rising tide of the pre-crisis period had lifted most boats. Now, the current climate is proving ruthless towards those unable or unwilling to adapt to a much more demanding economic and policy landscape in which perceptions matter almost as much as reality, one that is forcing countries and companies alike to adapt their behavior to a brave new competitive context. At face value, countries wishing to deliver an increasing standard of living to their citizens have the same pathway to prosperity as ever: they need to shift their emphasis on utilizing knowledge and moving up the value chain. Simply put, they need to become more competitive players on the world economic stage. Upon closer inspection, however, this is a policy goal resting on a shaky ground, a foundation proving to be replete with waffle and lacking pragmatism. Needless to say, this makes for a difficult context in which this paper can set out to chart a path towards increasing the competitiveness of the Romanian economy. As a consequence, we find ourselves forced to approach the subject by tackling, in turn, the policy areas and sectors of the economy that we believe are the most relevant to the shape and strength of the Romanian economy in the years and decades to come. It is our hope that in so doing we will be able to produce a set of recommendations likely to yield concrete results. We have selected three economic sectors and three policy areas. Agriculture, energy and information technology and innovation are economic sectors that hold not only a special promise but link into long term development lines for Europe. The regulatory framework, education, workforce training and entrepreneurship, as well as European financing are the three comprehensive policy areas with significant impact on competitiveness covered by the Aspen Romania Task Force for Economic Competitiveness. Ours is not a hold all approach. Its diagnostic and recommendations create a framework for policymaking and strategic thinking. In this first volume we cover most of the areas with future meetings and reports to cover the remaining economic sector and policy area: IT and innovation and education, workforce strategies and entrepreneurship. Meetings and public sessions will be called for the remaining work and the three volumes will be followed by an integrated set of recommendations. To begin with, this inquiry will dwell on the current economic environment beyond Romanias borders, using a two-dimensional approach. First, we will take into account the sovereign-debt crisis and the lessons that need to be learnt from it, even as it is becoming painfully apparent that the end of this crisis is nowhere in sight. Second, we will examine the ways in which this crisisshaped environment is changing the structure of economic governance in the European Union, with the potential for unintended consequences for new member states of the EU such as Romania. In the subsequent section, the paper will consider the necessary courses of action required for Romania to enjoy a better functioning public sector in light of the shifting landscape in the EU and beyond, and keeping in mind its long-term policy objectives of converging with the rest of the Union and delivering an increased quality of life for Romanian citizens.
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Next, the paper will narrow its focus to key sectors, which we believe are both of utmost strategic importance for the Romanian economy and offer significant promise in terms of their contribution towards boosting its overall competitiveness. The sectors we target in this first volume are agriculture and energy. The inescapable reality of policymaking relates to its costs. In light of this, we will turn our attention in the sixth chapter of this paper to the financing opportunity being provided by EU structural funds, and the most effective ways this opportunity can be capitalized upon in order to enhance Romanias competitiveness. Last, but not least, the paper will examine the corporate sector and the strategies it has at its disposal in order to become more competitive. This will be achieved in the seventh chapter of this material. Finally, we recognize that a discussion on competitiveness would be incomplete without touching on the subject of education policy. However, we felt that the complexity of the topic, and the range and magnitude of the challenges Romania faces in this regard are such that they require a separate and dedicated examination at a later date and a separate set of recommendations. This body of work will only be completed when all these elements dovetail in an integrated vision. Other areas covered by Aspen Romania like its conversations on industrial policy; the work of its Technology, Information and Society Program; as well as regional and strategic perspectives will be considered.