DORU LIONACHESCU

 | 

CAPITAL PARTNERS SRL

  |  01.04.2013

Taking on an opportunity

In order to move forward in economy, a matter of efficiency consists of identifying those industries that really can stand for a growth potential, is the trust of Doru Lionachescu, Chairman, Capital Partners

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DORU LIONACHESCU

DORU LIONACHESCU

GENERAL MANAGER at CAPITAL PARTNERS SRL

SPOTTING THE RIGHT SENTIMENT

2013 – Quite an inert year in expectations, blaming also the neighboring European economic context. But not all the blame is outside. In order to predict, it matters one’s expectations. I do not understand the irrational optimism of various businessmen, launching in almost witty statements regarding the trend of this year in the Romanian economy. This is an outdone approach; maybe it was right for the 60’s but not now, when the realities are far more multifarious.

 

I don’t see why we should be so afraid of pessimism, because, in this context, it would rather mean to be realistic. For 2013, if I have to define my sentiment towards the economic environment in Romania, I would say that I am a moderate optimist. There are several grounds to sustain my feeling, and among them, I can list a few: a more business-orientated Governmental coalition, a better external perspective regarding the investment risk in the CEE region. There is quite a lot of money outside this country and Romania, as a small country, has the chances to trigger a large pool of investors. These investors may not be the largest, but a large volume of smaller investors with local affinities and even a similar culture may bring the growth that we are all looking for.

 

REFORMING FROM SCRATCH

The best lobby for investors is what a country really does for them and, before this, a planning strategy and prioritizing of investments should be defined. It is enough to only state that 52 percent of the local economy is still represented by state-owned companies. This is a scary volume for a country that aims at earning the trust of foreign private investors. The structural reforms should be the main priority of the governing authorities and maybe it is time to see some success-stories, after years of failures in this segment.

 

A matter of efficiency consists of identifying those industries that really can stand for a growth potential. It is really silly for a smart strategy to focus or allocate scarce resources in fields that add up to only 1 percent of GDP, like tourism. Imagine what double growth really mathematically means for the GDP. Instead, a smart move would be to shift the attention towards the industries that really generate profit, highly paid jobs and act as engines for the rest of the economy, such as energy or the automotive industry, which amounts to around 20 percent of Romania’s exports, to give just an example.

 

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