Romaniaaa‚¬a„¢s public sector is simply too costly within the Governmentaa‚¬a„¢s capacity to raise revenues, says WB

Newsroom 16/08/2010 | 15:03

When it comes to the quality and cost-effectiveness of public services delivered to the population, Romania lags behind other European countries, reads a World Bank (WB) press release. According to the same source, the country’s public sector “is simply too costly within the Government’s capacity to raise revenues which requires administration retrenchments to affordable levels”.

“The WB supports the reform of the administration because it’s important and urgent. It’s important not just to save money now, but to foster medium-term economic growth. It’s urgent because, with the crisis, the country cannot afford to keep wasting resources through inefficient and inequitable processes. Too often people do not realize how difficult some decisions are and this increases resistance to change. Therefore we will also work with the Government to find ways to explain the key reforms and build broad coalitions,” said François Rantrua, World Bank country manager for Romania.

Several ministries and the WB are undertaking a Functional Review program. Through this assessment program, the WB reviews the quality of the policy making and barriers to effective policy implementation, as well as the horizontal issues with cross-cutting impact on the overall performance of the public sector. This October the WB will conclude its assessment of the center of government, competition, pre-university education, transport, agriculture and rural development, and public finance sectors.

After the completion of the second phase (October 2010 – March 2011) which will include the analysis of a new set of sectors, the overall recommendations will be included in a Action Plan which will be prepared by the governemnt and will be endorsed by the European Commission.

Simona Bazavan

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