World Bank warns against corruption

The foreign investors in Romania are more determined to fight against corruption than the Romanian authorities seem to be. Tired to keep waiting for corruption to be at least reduced if not eradicated, foreign investors have launched a genuine charge against the authorities, hoping to get the desired reaction.

Ambassadors, managers, officials from the foreign investors’ associations or international bodies have been trying to persuade the authorities that, unless a functional strategy is enforced in the fight against corruption, they may end up losing significant investments, but also the international support obtained after years of relentless lobbying.

Petty corruption is making the life of foreign investors impossible, Jean-Pierre Vigroux, president of the Foreign Investors Council said. “I am not afraid to say that corruption is everywhere in Romania. In fact, the European Commission’s country report on Romania mentions corruption as being widespread,” Vigroux added. So far, the Foreign Investors Council has refrained from making comments on the Romanian policies.

Corruption is generally deemed as the main problem faced by foreign investors in Romania, which was also confirmed by the World Bank officials.

“Inquired about the main obstacles faced when entering the market, foreign investors quoted political insecurity, macroeconomic instability, high taxes, big financing costs, corruption and anti-competition practices. In my opinion, the last three are the most important,” said Harry Broadman, the World Bank’s chief economist for Europe and Central Asia.

Broadman presented the preliminary results of a research conducted by the World Bank together with the European Bank for Reconstruction and Development (EBRD) in eight SE European countries – Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Macedonia, Moldova, Romania, and Serbia and Montenegro.

According to the research, all these economies are in for a long recession, together with a decline of the traditional industries, given the delayed restructuring and the loss of the traditional outlets.
miruna.lebedencu@zf.ro