3.3.3 South-Muntenia Region

Image 3.19:

Romania’s Development Region South-East – Sud-Est

Regiunea Sud-Muntenia - The Development Region South-Muntenia in Romania

Source: ro.wikipedia.org/wiki/Imagine:S_dr_ro.png

The Development Region South-Muntenia in Romania consists of seven counties (Argeș, Călărași, Dâmbovița, Giurgiu, Ialomița, Prahova, and Telorman) on 14.45 % on the total Romanian territory. The 3.34 million inhabitants, representing 15.41 % of the total population, contributed in 2005 about 12.60 % to the GDP of Romania (INS 2008; own calculations). Regional GDP per capita was about 3,680 € in 2006 and included a growth of 22 % from 2005. By 2010 the CNP estimates a further growth of up to 6,532.8 € (CNP 2008 a: 9). The development region South-Muntenia can be divided in two parts featuring a massively differing performance. First, the counties Călărași, Giurgiu, Ialomița and Teleorman are traditionally underdeveloped and depend heavily on agriculture. They build the second poorest part of Romania after certain areas of the North-East (cf. chapter 3.3.1). The restructuration and shut-down of many industrial activities after 1989 left South Muntenia with high rates of unemployment. Due to the ongoing unimportance of the coal mining sector over the next years the situation is likely to persist. Unemployment rates ranged 2005 from 5.0 % in Argeș to 12.1 % in Ialomița (INS 2007).

On the other hand, the counties Argeș, Dâmbovița and Prahova enjoy a dynamic and diversified industrial activity and are important contributors to regional GDP. Some of the industries introduced in the 1970s survived; such as the production and processing of oil and gas or the car and electrical industries. Overall, the industry contributes 29 % to regional GDP. According to NewsIn (2008: 84) 21 of the 30 top rated regional enterprises are from the counties Argeș (7) and Prahova (14).  The other counties contribute between one and three firms, Teleorman none.

Due to important Pan-European transportation links and natural resources like oil, gas, coal and mineral waters, the region attracted about 6.5 % (2.228 billion of Euros, 673 € per capita; cf. ADRC 2008) of total FDI-inflows to Romania. This is the fourth place after the Capital, South-East and the Center. Important investors are e.g. Renault and Samsung. Accordingly, exports are rising (from 2006 to 2007 by 27.8 %) and reach a share of 13.4 % of total Romanian exports. The region’s contribution to the Romanian trade deficit is low (5.75 %). Here again, a considerable part of the massive growing deposits in foreign currency of the population might stem from emigrants working abroad.

Academic Research paper and Study of the Economy of Romania and Romanian Business

The aggregate score for the public administration in the region South-Muntenia according to NewsIn 2008 was 14.5 points of 20 possible, thus reaching the fourth place of the ranking. Again, the authorities in the cities Pitești (county Argeș – 18 points) and Alexandria (county Teleorman – 17 points) performed rather well, while Târgoviște (county Dâmbovița – 8.5 points) decreased the aggregate score of the region. While the relatively bad score for Dâmbovița and the good one for Argeș might be in line with the notion of the importance of public administration for the Romanian business environment the result for Teleorman definitly is not.