Porter: The private sector must be the driver for change

The Government cannot provide sufficient welfare and it is unrealistic for a country to expect changes to come from the central authorities. This is the duty of private companies, believes professor Michael Porter, a leading authority on business strategy. “In Romania, people still believe the Government is the agent of change. The time has come for the private sector to lead Romania towards change. What is lacking is a common strategy and a consensus on the matter,” said Porter, before an audience comprising over 600 managers of top-ranking companies on the local market, at the “Strategy and Leadership” conference, organised by ZIARUL FINANCIAR and Interact. In Romania, the private sector contributes over 70% of the GDP and employs almost 4 million people, compared with 1.1 million people, who are state-employed. Although private companies have lately gained ground in the economy, their presence is not significant enough yet to be acknowledged at government level. The period of economic growth that Romania had experienced over the last few years was primarily attributed by the accession to the European Union, added the Harvard professor, leader of the Thinkers 50 ranking in 2005, which lists the most significant and influential thinkers from the business world.