A stable system attracts stable business. An unstable system breeds failed projects.
There’s nothing more appealing to foreign investors than a market with rich resources and low costs, like Romania. However, there’s nothing more repelling to them than an unstable political climate, where the key decision makers are replaced faster than any project can be finished. The current political climate of Romania is severely impacting on the desire of foreign investors to deploy money for investment.
As an example, during the past 4 years we have had 6 Ministers of Economy replaced. And the issue is not that we have only had the Ministers replaced, but along with them were also replaced: the Secretaries of State to whom the tasks by portfolio are delegated, Counsellors who advise the Ministers and senior management of State owned organisations and companies. The country lacks continuity in project concept, implementation and investor relations.
Large investments that require significant funds and that have greater positive impact on the economy take time to negotiate, approve and implement. The larger the project, the longer the time to realize and the greater the cost. If an investor has to renegotiate with the ultimate decision makers every six months, then projects don’t get realized, investors grow impatient and the opportunity is lost.
A change in perspective: treat a government like a company to attract good company
We, as a nation that need to improve minimum wages, infrastructure and long-term employment for our population, are required to understand that time is a great cost to an investor and that the public service should be treated like any other organisation.
The Head (The Minister) can be replaced as can a CEO of a company, but if you change a CEO, CFO, COO, Managing Director and General Manager of any organisation at one time, this is a recipe for disaster.
What can be done?
To ensure that projects get done and investments keep coming, senior positions in Ministries need to be streamlined and non-political. In order to get the best people for the job, you need the best people in their field. And compensate them accordingly, which is worth it for the long-term benefit of the country.
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