Professional Documents
Culture Documents
ANNALS
ECONOMIC SCIENCES
SERIES
Volume XV
Issue 1
Year 2015
ISSN-L 2393-3119
ISSN 2393-3127
OVIDIUS UNIVERSITY ANNALS
Volume XV
Issue 1
2015
EDITORIAL BOARD
EDITOR in CHIEF:
Elena Cerasela SPTARIU, Ovidius University of Constana, Romania;
SCIENTIFIC COMMITTEE:
Paolo ANDREI, Universit degli Studi di Parma, Italy;
Stefano AZZALI, Universit degli Studi di Parma, Italy;
Gustavo BARRESI, Universit degli Studi di Messina, Italy;
Grigore BELOSTECINIC, Academy of Economic Studies of Moldova, Chiinu,
Republic of Moldova;
Rose-Marie BORGES, Universit d'Auvergne, France;
Ionel BOSTAN, tefan cel Mare University of Suceava, Romania;
Ion BOTESCU, Ovidius University of Constana, Romania;
Nikoloz CHIKHLADZE, Kutaisi University of Georgia;
Elena CONDREA, Ovidius University of Constana, Romania;
Suleyman DEGIRMEN, Mersin University, Turkey;
Cosmin DOBRIN, Bucharest University of Economic Studies, Romania;
Marina GEDEVANISHVILI, Caucasus International University, Georgia;
Irina GOLUBKOVA, Odessa National Maritime University, Ukraine;
Kai HAVEKOST, Bremerhaven University, Germany;
Nicolae ISTUDOR, Bucharest University of Economic Studies, Romania;
Zaichko Sergiy IVANOVICH, Odessa National Maritime University, Ukraine;
Tamar KOBLIANIDZE, Caucasus International University, Georgia;
Oksana LAVRIKOVA, Kherson State University, Ukraine;
Vctor Ral LPEZ RUIZ, University of Castilla-La Mancha, Spain;
Roman MAMULADZE, Batumi State Maritime Academy, Georgia;
Giorgi MATIASHVILI, Guram Tavartkiladze Teaching University, Georgia;
Pasquale NOVAK, Universit degli Studi di Messina, Italy;
Snezhanka OVCHAVOVA, Varna Free University, Bulgaria;
Alexis PAPATHANASSIS, Bremerhaven University, Germany;
Domingo Nevado PEA, University of Castilla-La Mancha, Spain;
Ion POPA, Bucharest University of Economic Studies, Romania;
Veronica POPOVICI, Ovidius University of Constana, Romania;
Natalia REVUTSKA, Batumi State Maritime Academy, Georgia;
Angela ROMAN, Al.I. Cuza University of Iai, Romania;
Ahmet SENGONUL, Cumhuriyet niversitesi, Sivas, Turkey;
Maia UKLEBA, Guram Tavartkiladze Teaching University, Georgia;
Diane Paula Corina VANCEA, Ovidius University of Constana, Romania;
Simona UTUREANU, Ovidius University of Constana, Romania;
Rzvan ZAHARIA, Bucharest University of Economic Studies, Romania.
iv
EDITORIAL COMMITTEE:
Ionu ANTOHI, Ovidius University of Constana, Romania;
Nicoleta ASALO, Ovidius University of Constana, Romania;
Alexandra DNIL, Ovidius University of Constana, Romania;
Claudia DOBRE, Ovidius University of Constana, Romania;
Cristina DUHNEA, Ovidius University of Constana, Romania;
Cristina GEORGESCU, Ovidius University of Constana, Romania;
Gabriela GHEORGHIU, Ovidius University of Constana, Romania;
Silvia GHI-MITRESCU, Ovidius University of Constana, Romania;
Maria Gabriela HORGA, Ovidius University of Constana, Romania;
Margareta ILIE, Ovidius University of Constana, Romania;
Victor JEFLEA, Ovidius University of Constana, Romania;
Cristina LAZR, Ovidius University of Constana, Romania;
Angela Eliza MICU, Ovidius University of Constana, Romania;
Adina MOISE TITEI, Ovidius University of Constana, Romania;
Andreea-Daniela MORARU, Ovidius University of Constana, Romania;
Irena MUNTEANU, Ovidius University of Constana, Romania;
Dorinela NANCU, Ovidius University of Constana, Romania;
Oana NIU, Ovidius University of Constana, Romania;
Ctlin PLOAE, Ovidius University of Constana, Romania;
Norina POPOVICI, Ovidius University of Constana, Romania;
Costin Octavian ORICI, Ovidius University of Constana, Romania.
v
TABLE OF CONTENTS
Section I: International Affairs and European Integration
vi
6. Grecu Mihaela, - Youth Unemployment in European Union 86
Titan Emilia
7. Guu Ioana - Agreeing over TTIP: the Ninth Negotiation Round 91
8. Mihai Mihaela - NEETs Analysis in Romania 97
9. Pandele Adina - The Statute of Seafarers. European and International 103
Laura Regulations
10. Popescu Alina - Tertiary ESP Courses, Internationalization and the EU 108
Labour Market
11. Schipor Constantin - The European Social Models facing the economic crisis 114
12. Sticulescu Ana - Pink Collar Crime vs. White Collar Crime Overview on 118
Rodica, Neagu the Specific Features Related to the Antisocial Behavior of
Carmen Mariana Women
13. tefan Liviu, - Romanian Public External Audit Integration in the 123
Punic Mihai European Union Acquis
14. Voicule Alina - European Union Market and Attraction of Foreign Direct 129
Investment
8. Ilie Margareta, Ilie - A Short Analysis of the Romanians Main National 170
Constantin Accounts Tax, GDP, General, Central and Local
Government and Unemployment Rate Between 2005 and
2014
9. Levinska Tetyana - Prospects of Yacht Tourism Development in the Black 174
Sea Region of Ukraine
10. Mamuladze Roman, - The Role of the Caspian Region in World Energy 179
Revutska Nataliia Security and Diversification of Energy Supply
11. Miac Mirela Claudia - The Evolution Of Constanta Port Activities During The 183
Current Crisis Period
vii
12. Neagu Olimpia - The Regional Economic Convergence in Romania: An 189
Analysis Based on the Entropy Approach
13. Peresypkina Natalia - Main Directions of Strategic Development of the 195
Ukrainian Sector of Cruise Tourism
14. Sotnichenko - The Scheme of the Regulation and Financing of 199
Lyudmila Transport Infrastructure Projects of the Regions of
Ukraine
15. Trnovan Anabella- - Homophily in Social Networks, Bridging and Bonding 203
Maria Social Capital. Implications for Development
viii
17. Manea Marinela-Daniela - The Governances Impact on the Decline of the 290
Romanian Cooperative Sector
18. Mihu Marius Ioan - The Impact of Savings in Economic Growth. 295
Comparative Study between Japan and China
19. Mitra Mariana - Specific Features of Female Criminality 299
20. Mitra Mariana - Criminological Approaches on Tax Evasion 305
21. Moise-iei Adina - The Relationship between Intergenerational Justice 310
Index and Human Development Index
22. Moise-iei Adina - An Empirical Measure for Economic Justice 314
23. Nancu Dorinela - SMEs - The Main Promoters of the Knowledge 318
based Economy
24. Ndrag (Bala) Monica, - Mobile Youth Culture 322
Dan (Ndrag) Lavinia
25. Prvu Daniela - Participation of Romanian Social Enterprises in the 327
Public Procurement Market
26. Popa Florina - Aspects regarding the Importance of Development 332
Resources in the Economic Growth
27. Popovici Norina, Moraru - Level 5 in Education 337
Gheorghe , Moraru
Camelia
28. Popovici Veronica - An Overview of Millennials Coming of Age. The 341
Emergence of Generation Y and its Underlying and
Consequential Socio-Economic Aspects
29. Regneala Horatiu, Paicu - Financing Green Energy in Romania 347
(Coras) Eliza Laura
30. Rus Mihaela - Explanatory Models of Consumer Behaviour from 354
a Psychological Perspective
31. Rus Mihaela - Performance Management to Civil Servants 358
32. State Violeta, Tnase - The Impact of Legal Form on Tax Liability of 363
Loredana Cristina Economic Entities
33. Stoica Adrian - General Aspects of the Patrimonial Rights in the 368
New Civil Code
34. Stoica Adrian - The Assets under the New Civil Code 372
35. Stoica Carmen - Theoretical Analysis of The Development of Fiscal 379
Relations Management Through the Viewpoint of
Economic Theories
36. Stoica Carmen - Fiscal Management: Methods and Principles 385
37. tefan Cosmin-Alexandru, - Tomorrows Worker- a Short Portrait 391
Toma George-Sorin,
Marinescu Paul
38. Terchila Sorin - Tendecies in Communication Through Mass Media 395
and the Economic Implications Nationally and
Internationally
39. Toader Elena Alexandra - Application of the Analytic Network Process to 400
competency assessment process of IT professionals
ix
40. Ungureanu Emilia - Education Analysis in Romania - A Quantitative 406
Approach
41. Voicu-Dorobanu Roxana - A Model of Innovation and Sustainability: THE 410
Regional Business Ecosystem
42. Voicu-Dorobanu Roxana, - Turning Forests into Added Value: ROMANIA's 414
Ploae Ctlin Furniture Trade
43. Voicule Alina - Increasing Global Population An Actual Issue of 418
World Countries
x
17. Jugnaru Mariana, - Sustainable Development and its Influence on the 514
Jugnaru Ion-Dnu Change of Consumers Behaviour
18. Lzrescu Caius - Postal Services Marketing 519
19. Luca Florin-Alexandru, - The Management of Institutional Communication in 526
Filipeanu Dumitru, the Public vs. the Private Sector
Cananau Mihaela
20. Lupa-Ttaru Florin - Increasing the Efficiency of Chamber of Commerce 532
Rzvan, Mrscu-Klein and Industry from Brasov by Using Information
Vladimir Technologies
21. Malania Elisabed, - Prospects of Development of Dairy Products 536
Kochlamazashvili Lela, Market in Georgia
Kandashvili Teimuraz
22. Mateescu Mihaela, - Service Innovation and Markets. Direct and 540
Muscalu Mihai Sabin Reverse Implications
23. Mogos Radu Ioan - A Communication Platform Framework for E-Mail 546
Marketing Using Model Driven Architecture
24. Moraru Andreea-Daniela, - Consumption Expenditure in Romania between 552
Baca Eleonora Present Constraints and Past Habits
25. Munteanu Valentina - Social Entrepreneur and Skills Profile 556
26. Naghi Remus Ionu, Preda - Organizational Consequences of Internal Marketing 560
Gheorghe, Para Iulia
27. Nancu Dumitru - Supply Chain Management A Theoretical 566
Approach
28. Nancu Dumitru, Nancu - A Conceptual Model for the Analysis of Supply 571
Dorinela Chain Performance by Reducing Costs
29. Neacu Nicoleta Andreea, - Services Quality in Catering Industry Case Study: 577
Madar Anca Forest Restaurant - Sinaia
30. Nenciu Daniela - Simona, - Direct Research on Marketing concerning the 581
Constandache Mihaela, Accessibility Degree of Seventeen Makeup Cosmetic
Stanciu Anca - Cristina Products marketed by Company X, among Customers
31. Nicodim Liliana, Tanase - Efficient Management in the Educational Process 586
Gabriel-Iulian, Velica
Marian
32. Nicodim Liliana, Bucata - The New Organizational Culture 591
George, Tanase Gabriel-
Iulian
33. Petac Eugen, Duma Petru - Some Aspects of Intrusion Detection in IoE 595
34. Popa Adela Laura - Dilemmas on Student's Place in Defining the 600
Higher Education Institutions Marketing Strategy
35. Roca Remus, ipo-Gug - The University as a Generator of Entrepreneurial 605
Sebastian Education
36. Ruginosu Alexandra - Assessing Mentoring Activities in the Management 611
Teodora of Knowledge Based Organizations
37. Rusu Sergiu, Isac Florin- - Entrepreneurship and Small Business n Tourism 616
Lucian
38. Sarchizian Sergiu - Romanian Companies Restructuring During the 621
Crisis
xi
39. Tnase Mihaela - The Role of Transformational Leadership in 625
Knowledge-Based Organizations
40. Tnase Mihaela - Analysis of Leaders Characteristics on Perfomance 631
in the Knowledge-Based Organizations
41. Trac Elisabeta - Strategies for Sustainable Development and 637
Tourism in Central Dobrogea
42. Utureanu Simona, - Review on Lean Tools used in Manufacturing 642
Dragomir Cristina Process Improvement (I)
43. Zoltan Raluca, Vancea - Informal groups in global work environment: group 648
Romulus work or team work?
xii
16. Dicu Roxana Manuela, - Provisions and Contingencies: Considerations 733
Mardiros Daniela Neonila Regarding Recognition and Measurement
17. Dumitru Valentin - The Implementation and Employment of the 738
Florentin Information Technologies in the Romanian
Companies
18. Georgescu Cristina Elena, - The Provisions for the Risk of Loss in the Case of 743
Radu Riana Iren the Loans Granted by the European Banks
19. Ghi-Mitrescu Silvia, - IFRS 9s Impact on the Romanian Banking 748
Duhnea Cristina Systems Provisions
20. Grigore Marian - Connection between the Significance Threshold and 754
the Risk of Audit in Entities in the Constructions
Field
21. Grosu Maria, Mihalciuc - Comprehensive Income Reporting by Listed 758
Camelia Companies on the Bucharest Stock Exchange.
Econometric Study
22. Guni Claudia Nicoleta - Theoretical Fundaments and References on the 764
Elaboration and Presentation of the Financial
Situations
23. Gust Marius - Evolutions of the concentration degree in the 769
Romanian banking system
24. Ilie Margareta, Ilie - The Actuals of Crowdfunding 774
Constantin
25. Iuga Iulia Cristina - The Impact of the Exchange Rate Evolution on 779
Romanian Exports
26. Jinga Gabriel, Dumitru - Meeting Users Information Needs through 785
Mdlina Integrated Reporting
27. Lesconi-Frumuanu - The Perception of Professional Accountants on 791
Ntlia-Mihaela, Marin Management Accounting
Adreea-Mihaela
28. Lipar Daniel , Dnil - Harmonization of Monetary and Fiscal Policies. 797
Alexandra Mix or Separation? An Overview of Romanias
Economic Reality Between 2000 - 2013
29. Margaritti Doina, Sirma - How the Distribution System and the Granting of 803
Tomos Drug Discounts, is an Influencing Factor for a
Pharmaceutical Units Financial Performance
30. Maca Ema - The Continuity of Conservatism in the Standards 809
Developed by the IASB
31. Maca Ema - Accounting Conservatism - An Argument for 815
Sustainable Businesses
32. Mihlan Delia Corina, - Implications of Taxation on the Accounting of 821
Sliteanu (tefan) Results in NPOs
Simona Florina
33. Mocanu Florina, Istudor - The Analysis of the Correlation Between the 827
Ileana Iulia Sources of Funding, Performance and Risk Exposure
of a Company
34. Moraru Camelia, Popovici - A VAR Analysis of the Connection between 831
Norina, Ioni Roxana Taxation and Economic Growth. Case Study:
Romania
xiii
35. Munteanu Irena - Risk and Banking Performance: the Correlation 836
between Credit Risk Ratio and ROA in the Romanian
Banking System
36. Murgea Aurora - Capital Market and Happiness in United States 842
37. Nichita Ramona-Anca - Scrutinizing the Tax Compliance Puzzle via Tax 848
Literacy
38. Nicolae Traian Cristin - The Accounting for Revenues and Impact of Fair 852
Value
39. Nitu Oana, Nitu Claudiu - Fiscal Behavior Patterns 858
Valentin, Tileaga Cosmin
40. Nitu Oana, Nitu Claudiu - Health Insurance Related Leaves and Allowances: 862
Valentin, Tileaga Cosmin Romania vs Sweden
41. Ofileanu Dimi , Chiriac - Possibilities of Using Simple Random Survey in 866
Silviu Cornel Virgil Audit
42. Oros Olivera Ecaterina - Expected Credit Losses - IFRS 9 and Basel III 872
Moving towards Convergence?
43. Piciu Gabriela Cornelia - Implications of Bank Failures Case Study:Daiwa 877
Bank
44. Roman Angela, Bilan - Bank-specific and Macroeconomic Determinants of 881
Irina the Quality of Bank Loans Portfolio in Romania and
Bulgaria
45. Sahlian Daniela Nicoleta - Is Bancassurance Concept Profitable for the 887
Banking and Insurance Field in Romania?
46. Sliteanu (tefan) - The Importance of Managerial Accounting for 893
Simona - Florina, Enterprise Management
Mihlan Delia Corina
47. Trandafir Adina - Effects of Direct Taxation in Romania on the 897
Evolution of Business Environment
48. Trandafir Raluca-Andreea - Strategies for Improving the Economic and 903
Financial Performance of the Hotel Companies in the
Romanian Seaside Area
49. Untaru Mircea - Arguments for the Assessment of the Inventories at 907
Net Realisable Value
50. Vrzaru Anca Antoaneta - The Relationship Between Performance 913
Measurement Systems and Budgets
51. Vlad Costic - Cost Benefit Analysis, Modern Vision of the 918
Project Investment Approach
52. Matei (Titilin) Florentina - Socio-Economic Context for the Rural Tourism 924
Daniela Development in Gorj and Mehedini Counties
xiv
THE INTERNATIONAL CONGRESS:
ACCOUNTING CHALLENGES IN THE GLOBAL BUSINESS
ENVIRONMENT
Workshop: New trends in accounting and their implications for the global
business environment
1. Halep Maria - The IFRS9 Standard: Assessment of the Impacts on 930
the European Banking Industry
2. Irimescu Alina Mihaela, - Tip Taxation Necessity or Inconvenience? 936
Dumitru Graziella Corina
3. Manea Marinela-Daniela - Incursion in the Depreciation Testing of the Non- 940
Cash-Generating Assets Belonging to the Public
Sector
4. Ofileanu Dimi - Aspects Regarding the Application of Lean 946
Accounting in Taking the Managerial Decisions
xv
Section I
International Affairs and European Integration
***
Subsection 1
International Affairs
Ovidius University Annals, Economic Sciences Series
Volume XV, Issue 1 /2015
Been There, Done That, Bought It! - Economic and Cultural Impacts of Mass Media
on Consumption
Baca Eleonora
Ovidius University, Constanta
eleonorabaca@yahoo.com
Moraru Andreea-Daniela
Ovidius University, Constanta, Faculty of Economic Sciences
amoraru@univ-ovidius.ro
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attractive to viewers, and the rating grows consumes passionate consumers. Needs and
while the channel gains more money from desires can not simply be differentiated by
advertising companies. We should bear in their intensity or emotionality, the difference
mind that mass media displays not only resides in their basic perceived nature. Need
violence, but also nudity, sex, racism and has internal roots; desire is born externally.
behavior that are not proper and normal[3]. As Needs push, desires pull. A rational
a result consumers basic needs and desires explanation of behavior is offered for our
are skillfully exploited. In what follows we needs (I bought it because I need it); desires
shall try to have a close look at the intricate do not[6]. In our culture of plenty, in which
relationship between needs, desire and advertising, packaging, display, media
consumption. representations and conversations fuel our
possession fantasies, desire should rather be a
2. Who Needs A Streetcar Named Desire? matter of whether we really desired
something or we were actually pushed to it.
Etymologically, the Latin desiderium Desire is thus very much a social and
meant the grief for the absence or loss of a personal construction. Desire structures us, as
person or thing. The verb form, desiderare is much as we structure it- we are what we
to desire, to long for. This sense of longing desire. In 1956, Sartre stated that feeling an
was associated with the stars: a yearning for absence of being, we come to desire states of
the unreachable stars. Sidus means star and having and doing that we believe will
the verb desidiris refers to expecting from construct and manifest our being.
the stars. The verb consider is closely Desire, refers to a strong longing, to
allied to desire: con-siderare translates to something that is strongly wanted or, as a
look closely at something, to contemplate, verb, to the process of wanting something
and originally it meant to observe the stars. strongly. In descriptions of consumer
To enter the realm of desire cannot help but behavior, similar phenomena are often
lead us into a relationship to what is all at presented as needs or mere wants, and
once brilliant, attractive, and out of reach subsumed under psychological motivation
Desire introduces us to an impossible models, such as the motivational hierarchy of
situationimpossible of absolute Maslow (1954). In the investigation of
fulfillment[4]. consumer desires, consumer can take a
With that distance of the stars, appetite further step in this respect of finding a
(from appetere=to seek for, to strive after) or connection between feelings and personal
desire does not refer to physical fullness or experiences of the most passionate kind and
emptiness and thus satisfaction is not the the realm of consumption.
physical noticing of emptiness or fullness,
not having our so-called needs filled. 3. From (A Streetcar Named) Desire to
Simmels views are consistent with Jagers. Compulsive Buying
Simmel considers the distance between the
subject and object to represent desire. He Everything good is either forbidden or
says, we desire objects only if they are not fattening-this saying reveals the
immediately given to us for our use and fundamental link between desire, on the one
enjoyment; that is to the extent that they hand, and sex(ual transgression) and eating,
resist our desire [5]. on the other. These point to the strong
Needs are anticipated, controlled, denied, passionsdesiresand represent an
postponed, prioritized, planned for, attempt to compare feelings of consumer
addressed, satisfied, fulfilled, and assessed desire to yearning for other delicious and
logical instrumental processes. On the other arousing objects. Besides sex and eating, the
hand, desires are omnipotent; they represent other domains of passionate discourse
something we give in to; they can dominate commonly invoked by consumers in
our thoughts taking control of our feelings discussing their desires are addictive craving
and actions. Theres a battlecamp inside us, for drugs and transcendent religious passion
[7]
we tend to resist, and to struggle with, or in .
some cases we succumb, surrender, and Basic needs evolve or turn into desire of
indulge our desires. Desire, most often, different forms or degrees, these in turn
3
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Belascu Lucian
Lucian Blaga University of Sibiu, Romania
lucian.belascu@ulbsibiu.ro
Horobet Alexandra
Bucharest University of Economic Studies, Romania
alexandra.horobet@rei.ase.ro
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Figure 2. Risk management process as action has gathered support within a group,
outlined by ISO 31000 those that are not supportive tend to suppress
their objections and fall in line. The result of
these individual and organizational biases
may be an overlooking or misreading of
ambiguous threats to the organization, which
leads to an ineffective RM, as organizations
tolerate apparently minor breakdowns and do
not treat early warning signals as alerts to
about to happen dangers.
Stemming from these biases, Kaplan and
Mikes (2012) propose a new framework for
an effective RM system, based on three
categories of risk that companies face, each
Source: International Standards requiring a different RM approach [6]. Table
Organisation ISO 31000:2009 Risk 2 briefly presents these risks alongside with
Management Principles and guidelines the appropriate control model and role of RM
(2009) staff function. When organizations
understand that preventable risks can be more
3. Beyond the standards effective risk easily monitored and controlled through the
management strategies use of rules-based standards and controls, but
strategy and external risks require the
The new global landscape that emerged application of RM processes that encourage
after the recent financial and economic crisis managers to openly discuss risks and identify
is characterised by a risk architecture that cost-effective ways to reduce the likelihood
embodies higher variance in losses and gains of risk events or to mitigate their
than before and increasing interconnections consequences, the RM system is truly
between risks. In this framework, although adjusted to the organizations particularities
favourable for positive returns, contagion and objectives.
risks are higher than ever and management
teams are forced, if determined to survive 4. Conclusions
and grow, to challenge themselves towards
developing more robust scenarios based on Recognized RM standards offer a number
this new and in many instances less of benefits to organizations that adopt them,
understood reality. Moreover, organizations but it is important to understand that there is
need to prepare for non-preventable risks that no single standard that covers an entire field
arise externally to their strategy and and that organizations are expected to use
operations and that have the potential of whichever components of such standards in
putting the organization out of business. order to meet their objectives. At the same
It is well acknowledged now, as time, an effective RM systems should be
evidenced by many academic studies, that based a systematic thinking about the various
people tend to be overconfident about the and interconnected categories of risk
accuracy of their forecasts and assessment of companies face in such a way as to institute
risks and anchor their estimates to evidence the appropriate processes for each.
that is readily available, despite the perils of Standards adoption, which institute rules and
extrapolating history into the future. in compliance actions that mitigate some risks,
addition, we all suffer from confirmation cannot effectively support organizations RM
bias, which means that we are collecting without taking into account the
information that supports our beliefs and organizations strategy, objectives and risk
discard information that contradict them. At culture.
the organization level, groupthink also
introduces biases regarding risk assessment
this refers to the fact that once a course of
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5. References
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Botescu Ion
Ovidius University of Constanza
ion_botescu@yahoo.com
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result of these actions was seen in the shifting their production activities in new
substantial revenue growth of Colgate- markets.
Pamolive in India. The criteria which take into account the
There are developed countries such as increase in economic efficiency represent an
Switzerland, Sweden, etc, whose internal important factor in the starting or
markets are relatively limited. If companies continuation of the companys
such as Nestle, Ikea, etc., would have internationalization process.
focused mainly on the internal markets they The main objective of corporate managers
would not have the power and global is neither the improvement of the living
dimension that they have today. standard in the area where the activity is
In the same time we need to take into undertaken nor the ethical aspects of the
consideration that multinational companies activity, but the profit maximization.
hold the necessary resources in order to The increase in the number of consumers
increase demand and therefore grow the leads to the increase in the number of
market. The marketing department has products produced and sold. This fact
gained a special significance. The publicity determines the reduction of the fixed and unit
expenses involved in different markets production costs of the company. The
generate new wishes, therefore they generate increase in the level of profit per unit doubled
new sales opportunities for the companies by the increase of the number of units sold
products. The fact that each year there are determine the increase of the economic
created new ads for external markets means efficiency of multinational companies.
that they are generatig profit. It is not by The reduction of costs linked with
accident that many multinational companies logistics, cooperation generated by the
have higher marketing budgets than R&D relocation of the production activity to a new
budgets. Many times given the progress country as well as the closing of units with a
made in company communication new needs low profitability level represent elements
have been generated at a global level, even which lead to the maximization of profit of
though in certain areas the respective services multinational companies.
or products were not necessarily necessary The attempt to acquire strategic assets is
for the population. Although social and mainly determined by the wish of
economic life is globalized under many multinational companies to acquire advanced
aspects, it is necessary to differentiate technologies in a certain sector or their wish
between the different commercial policies of to position themselves on a certain market,
multinational companies depending on the such as the energy market.
geographic area in question. Some investors such as the Asian
The decision to enter a new market takes investors around the 2000s have acquired or
into account the existing competition level on started companies in sertain former socialist
that particular market. It is evident that the European countires, with the intent that after
existance of many important competitors joining the European Union they would
makes a market less attractive for a foreign become players in extended markets.
investors. The world economy is currently an According to UNCTAD statistics, in 2009
open field for competition, therefore the number of multinational companies was
multinational companies either become more of over 80000, with each of them having
competitive, succeeding in the global approximatively 10 subsidiaries abroad. We
economy, or become bankrupt, therefore can therefore speak of a global network
exiting the market. represented by the mother company and the
The political factors may determine the foreign subsidiaries.
attractivness of a market. The political and Before the start of the crisis, in 2008 the
legislative stability as well as perceived subsidiaries owned by multinational
corruption in many cases create a surcharge companies assured approximately 1/3 of the
which needs to be paid, the facilities awarded world exports. [4]
in some cases by the host countries represent Moreover, a large amount of the global
certain factors which can be taken into trade is undertaken inside the companiy
account by multinational companies when group which are connected via property. For
example a group formed by a mother
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company and its subsidiaries. The intra-group revenues. In this ranking we have taken into
exports have varied weights, most of the account based on the information for 2013
times being quite high related to the exports the first 100 places which are composed by
of goods manufactured in different countries. 63 countries and 37 multinational companies,
For example, in Japan this weight is 10%, Romania being found on the 54th position.
whereas in Sweden it has reached 51%.[5] The revenues of Wal-Mart Stores (469.1
Greenfield and M&A foreign investments billion dollars) have determined its placing
represent the main mechanisms which on the 17th position in the mixed ranking
multinational companies have used in their being followed by 180 countries. Moreover,
expansion in external markets. Wal-Mart Stores revenues are higher than
the GDPs of Austria (415.4 billion dollars) or
Figure no.1, The evolution of the attracted Denmark (330.2 billion dollars).
FDI in the world GDP Based on realized revenues Wal-Mart
40
Stores have kept their leadership position in
the 2014 as well. The first 5 positions based
35 34,1 on Fortune data are held by:Wal-Mart Stores
30 31,6
(revenues 476,2 billion dollars; profit 16,0
25 billion dollars), Exxon Mobil (revenues
22,8 407,6 billion dollars; profit 32,5 billion
20
dollars), Chevron (revenues 220,3 billion
15
dollars; profit 21,4 billion dollars), Berkshire
10 9,2 Hathaway (revenues 182,1 billion dollars;
5 5,7 profit 19,4 billion dollars), Apple (revenues
0 170,9 billion dollars; profit 37,0 billion
1980 1990 2000 2010 2013 dollars).[7] We can observe that all five
companies have their headquarters in the
United States, fact which demonstrates the
Source:www.unctad.org special economic power acquired by
American companies mainly due to their very
In the vast majority of cases the foreign large internal market.
direct investment flows are generated by
multinational companies. The intensification Table no 1. Top 10 multinational companies
of the role which multinational companies based on the transnational index
play in the economy of the different host Company Country TNI
countries is given by the evolution of the 1 Nestl SA Switzerland 97,1%
attracted FDI flow in the world GDP. At the 2 Anglo American United 95,9%
beggining of the globalization accentuation plc Kingdom
process, respectively the year 1980, this 3 Anheuser-Busch Belgium 93,3%
weight was of 34.1%, fact which shows the InBev NV
strenghtening of the dependency of the 4 British United 91,0%
economies of the host countries on the American Kingdom
foreign capital invested by multinational Tobacco PLC
companies. 5 Linde AGLinde Germany 91,0%
AG
In the last few decades multinational
6 Barrick Gold Canada 89,2%
companies have obtained a significant Corporation
economic power overcoming even many 7 SABMiller PLC United 89,1%
developing countries, thus the fear arises that Kingdom
some host countries which are less developed 8 ArcelorMittal Luxembourg 89,0%
are promoting their interests at the expense of 9 Vodafone Group United 88,9%
the local population.[6] Plc Kingdom
This trend also results from the ranking 1 WPP PLC United 87,8%
which is presented in this paper where the 0 Kingdom
main crireria is the economic power of Source: The world's top 100 non-financial
countries through the GDP and by TNCs, ranked by foreign assets, 2013 a
multinational companies through their
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The internationalization of the company, Taking into account the fact that
respectively its globalization level is multinational companies are becoming more
measured with the help of the transnational and more important as global agents an
index calculated based on the weight of improvement of their image among the
assets held abroad in total company assets, population is imposed, image which has
the weight of revenues obtained at the deteriorated in the last few years.In order to
foreign subsidiaries in total revenues and the improve this image a few actions can be
weigh of employees from the foreign undertaken: improving the ethic behavior,
subsidiaries in the total number of conducting CSR activities, imposing global
employees.[8] regulation refering to the threat of
From the table no. 1 we can conclude that monopolies and non-competitive behavior,
Nestle is the worlds most global company. punishing by law the bribe offered abroad,
Moreover we observe that from the first 10 the improvement of the WTO activity
companies none is American, all being refering to the abusive application of
European. protectionism.
The global force of multinational Regarded by some as a progress factor
companies results also from their high level and by other as non-coloniol exploitation
of competitiveness. The majority of R&D instruments in the contemporary period,
expenses at a global level are done by US, multinational companies are welcomed and
EU and Japan multinational companies. attracted by the majority of the worlds
The highest volume of R&D expenses countries. We could even go as far as saying
recorded in 2013 was Wolkswagen (9.5 that multinational companies represent the
billion dollars) followed by Samsung and necessary evil which characterizes the
Microsoft. economy of the last 30 years.
The internationalization of the activity of
multinational companies assumes the use of a 5. References:
global management system and the existance
of a global business infrastructure, the later [1] Andrew Jones, Globalizarea, Ed. CA
being able to considerably diminish cultural Pusblihing, p. 215-221
differences in the worlds different areas. [2] Grezegorz W. Kolodko, Incotro se indreapta
lumea. Economia politica a viitorului, Ed.
4.Conclusions Polirom, 2015, Bucuresti p. 90
[3] Liviu Voinea, Corporaiile tranaionale i
capitalismul global, Ed. Polirom, Iai 2007,
Undoubtebly, we can state that a signficant
p. 31,32
part of the world economic growth recorded [4] Dumitru Miron, Valentin Cojocaru, Comerul
in the past 30 years is due to multinational internaional, Ed. ASE, Bucureti, 2013, p.
companies. The technology transfer, large 134
scale production and low prices have made [5] Anghel Lucian, Mihaela Dinu, Globalizarea
products accessible to a large number of afacerilor, Ed. Triton, Bucureti, 2014, p.
citizens, the created jobs and higher salaries 111
in comparison to local companies are just a [6] Joseph Stiglitz, Mecanismele globalizrii,
few examples of tte ways through which Ed. Polirom, 2008, p.166
multinational companies have determined the [7] www.fortune.com
[8] www.unctad.org
economic development and improvement in
the life standard in many host countries
which are lagging behind economically.
In other words, multinational companies
are often associated with the exploitation of
natural resources, the polution of the
environment of poor countries, the financing
of political local campaigns in other to take
advantage of friendly legislation, of the
obstructing of the independancy and
souvereignity of the countries in which they
undertake their activity.
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Cznel Maria
Ovidius University of Constanta
The Faculty of Law and Administrative Sciences
maria.cazanel@gmail.com
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that they represent the same guarantee price beforehand, the buyer is entitled to
mechanism.[9] refuse to do so until the buyer has fulfilled
In this regard, a list has been compiled of the obligation of delivery under the contract.
the instances where the lien is nothing more The exception of a non-performed contract
than a simple application of the exception also applies to this case. It represents both a
non adimpleti contractus, in the legal ties means of dilatory defence and a means
resulting from synallagmatic contracts[10]: pressure to convince the seller to fulfil its
- The vendor who has not received obligations.[11]
the value of the price, is allowed to refuse to Another version of the exception of a non-
surrender the purchased item, under Art.1322 performed contract is the act of surrendering
and 1323 Civil Code 1865 (Art.1694 New the asset to the seller (laiss pour compte),
Civil Code), under the principle venditor, allowing the buyer to refuse taking the
quasi pignus, retenere potest sem quam merchandise whenever it deems it to be
vendidit; inconsistent with the provisions of the
- The buyer with a pact of contract, thus prompting the seller to make a
repurchase, as well as the buyer whose title new delivery. If this new delivery is within
was cancelled by effect of a rescissional the contractual clauses, it can no longer be
action, are allowed to retain the purchased refused by the buyer. In his turn, the seller
item until they have been fully reimbursed can assess whether the surrender was
for the purchase under Art.1377 Civil Code consistent with the contract, and whether it
1865 (Art.1758 New Civil Code); was abusively turned down by the buyer,
- The owner of a building, which has case in which the former is entitled to require
been expropriated for the public interest, has the rescission or the termination of contract,
the right to retain the property until he has due to the fault of the buyer.[12] Until a new
been reimbursed under Art. 481 Civil Code delivery from the seller, the effect is dilatory,
1865 (Art.562 New Civil Code); as with the exception of a non-performance
- The depositary, which has run contract.
expenses for the conservation and On the other hand, Romanian Case Law
maintenance of the stored object, has the was sometimes founded on the financial
right to retain the said object until payment connectedness thesis, and sometimes on the
for expenses or damage caused due to storage legal connectedness thesis. According to the
has been paid, under Art. 1618 and 1619 first thesis, lien is a genuine and imperfect
Civil Code 1865 (Art.2122 and Art.2123 guarantee right, whereby the holder of
New Civil Code); another persons debt has the obligation of
- The heir subject to the lien is handing it back, and has the right to refuse
entitled not to surrender the property to the doing so until its owner pays for the expenses
chart of heirs, until he/she is reimbursed the made for its preservation, maintenance or
expenses he has paid for it Art. 771 Civil improvements.[13] There being a financial
Code 1865 (Art.1154 New Civil Code); connection between the unpaid debt and the
- The owner of a lost or stolen litigious asset, the owner of the asset has the
movable asset, who bought it at the fair, has right of liens upon it, as guarantee for the
the right to refuse to surrender it to the payment of the debt and as a means of
rightful owner who claims it, provided the coercing the debtor to enforce the
later refunds the price the former had paid obligation.[14]
under Art.1910 Civil Code 1865 (Art.937 Case Law has also ruled that, under the
New Civil Code); second thesis, the legal connection upon
- The right of the hotel manager and which lien is based, is a form of expression
of the porter to retain the belongings of the of the exception of non-performance.[15]
traveller until the accommodation and the
according transport have been paid Art.1730 3. Conclusions
Civil Code 1865 (Art.2135 New Civil Code).
In addition, as is the case of a purchase Following this analysis, we believe that
agreement, wherein if the buyer does not the assimilation of the two terms: lien and the
fulfil its obligations of delivering the exception of a non-performed contract, is not
merchandise and, requests the payment of the justifiable; there being fundamental
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Ovidius University Annals, Economic Sciences Series
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differences between them that we shall list in [6] Vasilescu, P., Privire asupra naturii juridice a
a future article. Therefore, we consider that, dreptului de retenie n Studia Universitatis
in fact, retention, exercised on the basis of Babe-Bolyai Iurisprudentia nr.2/1993, p.88.
the exception of a non-performed contract, [7] Vasilescu, P., op.cit., p.88.
[8] Vidu, I.S., op.cit., p.116.
does not correspond to a genuine lien
[9] Vidu, I.S., op.cit., p.31.
because they are autonomous institutions. [10] Voicu, M., Dreptul de retenie, ed.Lumina
Therefore, the field of lien ends where Lex, Bucureti, 2001, p.80-81; Mihai, G.,
exceptio non adimpleti contractus Trandafirescu, B.C., Dreptul comerului
begins[16]; its existence being justified by international, ed.Muntenia, Constana, 2008,
the financial connection, not by the legal p.150.
connection, unless it be accidental (whenever [11] Chiric, D., Tratat de drept civil. Contracte
the possession of the thing and correlative speciale , vol.I, ed. C.H.Beck, Bucureti,
claim are occasioned by the same legal 2008, p.359; Braoveanu, F., Freedom of
relationship). movement of goods, persons, services and
capital, The International Conference
Present Issues Of Global Economy - 10th
4. References: Edition - MAY, 31st 2013 Constanta,
ROMANIA
[1] Pop, L., Popa, I.F., Vidu, I.S., Tratat [12] Collart Dutilleul, F., Delebecque, Ph.,
elementar de drept civil. Obligaiile conform Contrats civil et commerciaux, 7th edition,
noului Cod civil, ed.Universul Juridic, Prcis Dalloz, Paris, 2004, p.226; Puig, P.,
Bucureti, 2012, p.853; Vidu, I.S., Dreptul Contrats speciaux, Hyper Cours, Dalloz,
de retenie n raporturile juridice civile, Paris, 2005, pg.235 in Chiric, D., op. cit.,
ed.Universul Juridic, Bucureti, 2010, p.45- p.360;
46. [13] CA Braov, s.civ., dec.nr.282/9 martie 2001
[2] Art.2495 Para.1, from the New Civil Code, n Buletinul Jurisprudenei.
regulates that: the person obliged to hand [14] CSJ, s.civ., dec.nr.484/11 februarie 2003 n
over or return an asset is allowed to keep it as Pena, A., Garantarea obligaiilor. Culegere
long as the creditor fails to perform its duty, de practic judiciar, ed.C.H.Beck
sprung from the same legal relationship or, Bucureti, 2006, p.65-69.
where appropriate, as long as the lender does [15] CA Cluj, s.civ., dec.nr.571/9 martie 2000 n
not compensate him for the necessary and Buletinul Jurisprudenei.
useful expenses paid for that asset or for the [16] Cabrillac, M., Mouly, C., Droit de srets,
prejudices that the asset has caused. Litec, 1995, pg.459 n Malecki, C.,
[3] Pop, L., Tratat de drept civil. Obligaiile, L`exception d`inexcution, L.G.D.J., Paris,
vol. II, Contractul, Ed. Universul Juridic, p.141.
Bucureti, 2009, p.851 ; Vidu, I.S., op.cit.,
p.211-213, p.158-160, p.218-220.
[4] Pop, L., Tratat de drept civil.Obligaiile,
vol.I, Regimul juridic general sau fiina
obligaiilor civile, Ed. C.H.Beck, Bucureti,
2006, p.454; Sttescu, C., Brsan, C., Drept
civil. Teoria general a obligaiilor,
ed.Hamangiu, Bucureti, 2008, p.429; Turcu,
I., Pop, L., Contractele comerciale. Formare
i executare, vol.II, ed. Lumina Lex,
Bucureti, 1997, p.227; Motica, R.I., Lupan,
E., Teoria general a obligaiilor civile,
ed.Lumina Lex, Bucureti, 2005, p.370;
Zltescu,V.D.,Garaniile creditorului,
ed.Academiei, Bucureti, 1970, p.60.
[5] Zltescu,V.D, op.cit., p.59 ; Oprian, C.,
Sanciunile n dreptul civil roman n R.R.D.
nr.11/1982, p.15; Mihai, G., Arbitrajul
international i efectele hotrrilor arbitrale
strine Colecia Noul Cod de procedur
civil, Ed. Universul Juridic, Bucureti, 2013,
p.99.
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Draghici Vasile
OVIDIUS University of Constanta
draghici.vasile@gmail.com
Grigorut Cornel
OVIDIUS University of Constanta
cornel.grigorut@gmail.com
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committed in achieving its object of activity conditions, and thus this person may be
or interest or on its behalf and it is not in one responsible, irresponsible, adult, minor, etc.
of the situations provided by law, when it is In this context, virtually anyone can be in
exempted from criminal liability, and if it a situation that could be susceptible to the
committed the act with the guilty intention. migrant person, leading to the conclusion that
Based on these features of the active this act of trafficking in migrants does not
subject of the offense of trafficking in necessarily involve the existence of a
migrants, it can be concluded that this premise-situation.
offense can be committed in all forms of A) The objective side
criminal participation or incitement, a) The material element [3, pag.320]
complicity, authored, coauthored. According art.263, paragraph 1 of the
b) The passive subject Criminal Code, the material element of the
The offense of trafficking in migrants objective side of the offense of trafficking in
implies two passive subjects, i.e. a main migrants includes several alternative
passive subject, which is the state, and a normative ways, namely recruiting,
secondary passive subject, which is mentoring, guiding, transporting, transferring
represented by the migrant person. or harboring a person. In this regard, it is
The main passive subject is the Romanian necessary to provide the minimal
State as holder of social values, protected by explanations about the meaning of these
the incriminating rule of art.263 of the terms, which means, firstly, the active
Criminal Code, represented by the state subject's actions, circumscribed to the
authorities that contribute to the enforcement purpose of illegally crossing the Romanian
of the legal regime of the state borders of state border.
land, sea, river and air. The recruitment
The secondary passive subject, The meaning of this action relates to the
represented by the person who is trafficked, solicitation, promise, discovery of a person
has some particularities, meaning that it can and determining him/her to illegally cross the
be a foreign citizen or a stateless person who state border of Romania.
does not live in Romania; he/she cam be both It is clear that the attraction of a trafficked
a responsible or an irresponsible person. person in an action of recruitment can be
Moreover, depending on the concrete ways done by promises and through various forms
of committing the offense, as the legislator of pressure.
had intended to express in art.263 of the If there is such pressure, and if it takes the
Criminal Code, the secondary passive subject form of physical violence, moral violence,
can be both one person and a plurality of threats, constraints etc., in the sense of
individuals. These, in turn, depending on the criminal law, we have a series of offenses
concrete embodiment of the offense of between migrant trafficking offenses and
trafficking in migrants, can answer for the other offenses, respectively, beating or other
crime of illegally crossing the state border of violence, under art.193 of the Criminal Code,
Romania; to the extent they meet the threatening, under art.206 of the Criminal
requirements of the law on criminal liability. Code etc.
Mentoring
4. Content analysis With respect to mentoring, the legislator
intended to refer to the activity of guiding a
In the literature, there is an opinion that person in one direction, in order to advise
this presupposes the existence of a premise him/her to illegally cross the state border.
situation, i.e. of a person capable of being a Because this method can constitute the
migrant. [4, pag.395] offense of trafficking in migrants, it
We appreciate that it is difficult to necessarily requires the existence of the
identify such a situation, although it is not direct intention to guide and the commitment
excluded; in art. 263 of the Criminal Code, of guiding in order to provide information on
the legislator refers to the trafficking of any illegal border crossing.
person who might be in the situation of the Guidance
migrant status, without imposing special it refers to the activity to accompany, to
go along with the person or persons who are
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going to illegally cross the border, accurately Thus, the specialized legal practice
following a route or a direction. reveals that, during 2013-2014, an organized
In judicial practice, the perpetrator who criminal group organized an illegal transit of
carries out such an activity is called "guide". more migrants through Romania; these were
In this situation, it is also necessary to Syrian and Iranian citizens and Kurd
perform guidance activities with direct intent, nationals who headed towards destinations in
because the accompanying activity aims Western Europe; each migrant paid amounts
specifically at the illegal crossing of the state between 2500-3000 Euros, depending on the
border. route taken and on the risks. This network of
Transport organized crime included transporters,
It implies offering activities, making recruiters, hosts, accomplices, trafficking
available the necessary means for the routes and more means of transport. [5]
migrants' travel, and their actual movement b) The immediate result
from one location to another, including The crime of the trafficking in migrants
walking. The transportation vehicles are has immediate consequence, such as the state
diverse, and only the ability of carrying out of danger, which affects the inviolability of
such an activity is important and not the state border of Romania.
necessarily the conditions under which it are Thus, the act creates a state of uncertainty
conducted. Often, adjacent to the transport, about the legal regime of the entry in and exit
the migrants "benefit" of forged documents from Romania, and the ability of the
to facilitate illegal border crossing. Romanian authorities to control this regime is
Shelter questioned.
This action refers to the activity of c) The causal link
concealing the migrants, sheltering them in In the offense of trafficking in migrants,
protected and hidden locations, for the causal link is triggered "ex re".
concealing the illegal border crossing. There should be established a connection
In order to be considered criminal between the actions or activities representing
offenses, these activities should fulfill an the normative forms of committing the
essential requirement, i.e. committing them offense and the state of danger; this
in order to illegally cross the border of the connection results from the simple
Romanian state. The illegal crossing of the commission of one or more of the normative
Romanian state border involves either ways of the commission of the elements
entering or exiting the country through places listed in art.263 of the Criminal Code.
other than the state border, or crossing it B. The subjective side
clandestinely. According to art.8 of GEO no. a) the subjective element
105/2001 regarding the Romanian state The offense of trafficking in migrants is
border, the border crossing can be done committed with the direct intention qualified
legally by persons or by vehicles transporting by purpose.
goods through the border crossing points In the literature, there is also the opinion
open to international traffic, the small traffic that, if the act provided for in art. 263,
points or the other places of established paragraph 1 of the Criminal Code can
under the implementing rules. endanger the life, integrity and health of
In addition, art.11, paragraph 2 of GEO migrants or subject them to inhumane or
no.105/2001 stipulates that, at the state degrading treatment; we may speak of
border of Romania, there is organized and indirect intention. [3, pg.322]
executed a specific control by the border We appreciate that the offense of
police, which aims at verifying and trafficking in migrants, in all its forms, can
establishing the conditions provided by law be committed only with direct intent.
for the entry in and exit from Romania. Thus, in paragraph 1 of art.263 of the
Consequently, the entry in or the exit Criminal Code, the legislator meant that all
from Romania, by failing to fulfill the the activities of committing the offense, even
conditions provided by law or by avoiding by means that endanger the life, integrity of
the border police control, represents the migrants, circumscribe, necessarily, to the
unauthorized crossing of the state border of purpose of illegally crossing the Romanian
Romania. state border.
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both domestic, and foreign in quest of fresh - Agriculture and food industry (mainly
investment opportunities. ecological production);
At the same time, new investments made - Information technology IT (mostly
by means of the Fund would allow for the software);
introduction and use of new, environment- - Transports (especially development of
friendly technologies mainly in the infrastructure).
exploitation of metal and non-metal deposits, It ensues from the above that, at least in
thus contributing to the sustainable the first phase of its activity, RSWF would
development of the economy. prevalently have the characteristics of a
Finally, given the fact that any respectable development fund.
SWF has to be profitable, the Fund could The second general condition which is
make money from managing its own imperative, especially in Romanias case is
portfolio of assets. The gains obtained could the exclusion of any interference of a
be capitalised at the Funds level, thus political nature in the Funds activity. In
contributing to increasing its resources.. other words, once established as a public
institutional investor and agreed the main
4. Conditions for establishing the RSWF directions of action, RSWF would benefit of
full independence in deciding upon and using
Even if the state of the Romanian the most appropriate instruments for
economy is yet far from the desired one, the achieving their statutory objectives.
slight, but firm acceleration of the economic Specific conditions. In order to perform
growth is visible. In this context, growing and to successfully compete with its pairs,
investment needs are also evident. any SWF has to abide by certain specific
On the other hand, Romania is and will conditions. First and foremost, the legal
remain one of the richest European instrument whereby the Fund is established
countries in oil and gas, as well as in other must contain a minimal set of elements
valuable raw materials, already mentioned. which are of essence for all legal persons: the
These are only a few of the generic statute, the budget formation and the
elements which substantiate the opinions headquarters.
according to which the setting up of a SWF The most comprehensive and complex of
in Romania becomes possible, even all is the Funds statute. It has to contain
imperative. In order to avoid the negative clear, transparent provisions mainly
experience of the NFD, it is necessary, regarding the following particular aspects:
though, to to submit the new Fund to some - The type of SWF (inter-generational,
very clear terms and conditions. offensive, defensive, etc.);[7]
General conditions. The general - The government (or independent)
conditions define the global framework agency acting in the name and on behalf
within which it is advisable to establish and of the state by managing and exerting
run a SWF. As a matter of fact, this global control over the Funds activities (e.g.
framework also implicitly determines the ministries of finance or of economy,
type of th SWF to be set up. central bank, one of the already existing
The first condition of cardinal or a new, specially created government
importance is to have a clear medium- and agency);
long-run strategy stating the major objectives - Area of action (unrestricted, on both
for the development of the national economy, domestic and foreign markets, or limited
as well as the tactical levers for reaching to the domestic one);
those objectives. The strategy has to single - SWFs resources (initial endowment
out the priority sectors of activity, where from the state budget, bonds issues,
Romania enjoys competitive advantages [ ] retention quotas from the fees paid for
In this latter sense, a brief empirical analysis the exploitation of oil and gas deposits,
seems to indicate the following priority fields as well as of other non-renewable
of activity: natural resources, etc.);
- Energy (extraction and primary - Elements of the investment strategy to
transformation of resources, production be followed by the Fund (main fields,
and supply); ways and means of investment).
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Pledoarie-pentru-un-fond-suveran-rom226-
nesc.aspx Accessed on 04 February 2015.
[8] Blnculescu, I., Fondul Suveran de Investiii
al Romniei [Online] Available at :
http://blanculescu.ro/ionel-blanculescu-
fondul-suveran-de-investitii-al-romaniei-fsir-
0 Accessed on 04 March 2015.
[9] International Working Group on Sovereign
Wealth Funds, , Discussion of the GAPP
Santiago Principles, Oslo, octombrie 2013,
pp. 2-9
[10] Socol, A., Ce ar nsemna un Fond Suveran
de Investiii pentru Romnia?, in
Contributors.ro, 16 decembrie 2013.
Available at :
http://www.contributors.ro/dezbatere/ce-ar-
insemna-un-fond-suveran-de-investitii-
pentru-romania/ Accessed on 05 March
2015.
[11] Drniceanu, D. A., et al, op.cit
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Gheorghiu Gabriela
Ovidius University of Constanta, Faculty of Economic Sciences
gabrielag3110@yahoo.com
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activists embraced the goal of raising the consumers needs, especially in the context of
national living standard beyond the an ample process of non-regulation produced
subsistence level. As a matter of fact, unlike in all the fields of economic life, aspects
the actions undertaken by the activists on the which determined the proliferation of the
American continent or the European one, associations for the protection of the interests
Japanese consumers were not, until very late, of the consumers. In spite of that, the identity
the upholders of any form of governmental of Japanese consumers remains profoundly
privatization or scheme for the non- marked by the concern for the welfare of the
regulation of economic activity. On the nation in general, so that we often see them
contrary, cheap products were sacrificed for associated with the producers on purpose to
the sake of consumption safety, which, as develop the common political and economic
they appreciated, could be guaranteed only goals. Likewise, they continue to support the
by the property of the state on the national protectionism in the field of agriculture, but
basic services and the very strict supervision also to prefer, in general, the autochthon
of all the activities undertaken by private industrial products to the detriment of the
economic agents. foreign ones, for reasons related more to the
In exchange, the attention of consumerist economic nationalism than to the quality of
activists turned a lot on the safety of the the products.[4]
products commercialized within the market,
this also due to Japanese traditional values 3. Consumers movement in the socialist
and beliefs which, since time immemorial, economies
set a high value on the ritual of purity, strictly
abided in all the daily activities, from the A particular case we stop our attention
cleanliness of the house, to personal hygiene hereinafter points the consumer protection in
and the safety of the consumed food the former communist countries,
products. Thus, it is not surprising at all the characterized by a command economy, in
attitude of Japanese consumers of avoiding which the producers held a much more
imported products, especially food products, powerful position than the consumers, the
with a high apport of chemical substances latter being at the disposal of the former.
and synthetic additives, attitude which Ruled by a bureaucratic administration,
initiated numerous frictions at the level of the monopolistic command economy offered
international trade, especially in the context the consumers a stringent choice, limited
of the globalization process of the markets. only to the products and services realized by
At the commencement of the 1960s, in the autochthon producers and traders, despite
proportion as the process of economic the fact that these were expensive, of inferior
reconstruction finalized, entering an era of quality and difficult to purchase. In this
sustainable growth, and especially after 1968, context, the producers were deficient in the
along with the adoption of the Law for incentives for increasing and diversifying
consumer protection, the Japanese their own offer, but also for improving its
consumerist movement starts to go from quality or reducing its price. As a matter of
strength to strength, pleading more and more fact, by appealing to simple notions, as
fervent for the defense of citizens rights of marginal utility or marginal productiveness, a
the consumers. However, the lack of the constellation of economists proved that in
implication of the state in the cultivation of such an economic system the allotment of
the spirit of citizens-consumers is remarked, optimal resources or, in other words, the
their interests together with those of the economic efficiency is impossible.
producers being treated as components of a Examples of countries which were in such
relation with null sum, relation which, for the a situation abound, from those in Central and
sake of the general health of national Eastern Europe, the countries from the
economy, had to be balanced in favor of the Former Soviet Bloc, to China and Cuba.
producers. Among these, Yugoslavia distinguishes itself
The last decades of the 20th century were, by the most powerful tradition in the field of
however, marked by the increase of the consumer protection, the first occurrence to
importance of consumption in the Japanese this effect dating from the year 1957, along
society, more and more aware of the with the establishment of the Federal Bureau
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of Family and Households, later reorganized, 4. China and the consumer protection
in order to become, in 1969, Consumers
Association, an entity financed with public A particular example of socialist economy
money, having the mission of encouraging which proved a larger affinity toward the
the commercialization of superior quality problems of the consumers is represented by
products, at reasonable prices.[5] China. The process of market liberalization,
Likewise, the consumerist movement was started in the years 1978-1979, allowed the
more obvious within the more liberal or more transition of China from the absence of a
reformist regimes against the background consumption economy, strangled by the
of some decentralization experiments of the existence of a planned distribution system, to
economic activity and the increase of the the biggest consumption market in the world.
importations of consumer goods or The Chinese regime of consumer
equipment and technologies necessary for protection developed especially during the
their production, destined to satisfy the last two decades, on the basis of a cultural
internal demand and financed with money heritage the confucionist belief, which
accrued from Western European allowed the relatively easy introduction of
governments and banks. This is the case of pro-consumerist measures in the Chinese
Poland - where Consumers Federation, commercial culture. More exactly, from the
established in 1981, pursued a series of goals point of view of the Chinese culture, traders
adapted to the emergent speech at the global are considered as dishonest persons - given
level with regard to the rights of the the fact that one of the five basic norms of
consumers and their protection, but also of the Chinese popular belief - Confucianism, is
Hungary where the National Consumers honesty. As a matter of fact, regardless of
Council operated since, having similar goals. how rich they might have been, traders
These represented the first voluntary enjoyed the least respect in Chinese
organizations of the consumers in Central society, since ancient times, a status caused
and Eastern Europe. greatly by the general belief according to
However, after the fall of the communist which traders do not create a real value, but
regime, along with the transition from the they waste time by passing the production
centrally planned economy to the market realized by others from side to side. [7]
economy and the manifestation of the will of What is interesting is the fact that this
joining the European Union, these countries process took place in a socialist economy
went through an ample reforming process for where most of the enterprises were held or
the construction of a functional market controlled by the state, consumer protection
economy, which offers the consumers being framed by the communist government
extended possibilities of choice, but also and party as a promotion instrument of a
insures the observance of own interests by better living standard in favor of Chinese
the producers.[6] people, in order to assure an increased
The first tangible initiative in relation to efficiency of national enterprises, but also to
the establishment of a specific law destined provide superior quality products destined
to protect the consumers and an both for the internal market, and especially
administrative body entitled with for the external ones.
assignments in the field belonged to One of the main measures to which
Romania, of all the countries which came Chinese authorities appealed on purpose to
from the former communist bloc, by the protect the consumers consisted in the
adoption, in 1992, of the Consumer establishment, in 1984, of the Chinese
Protection Ordinance. This result was Consumers Association, with the statute of
remarkable, as a matter of fact, because it governmental agency which promotes
intervened in a country where, unlike the actively the rights of consumers at national
example of Poland or Hungary, besides the level.
protective statute, a mentality of active and Apart from these, consumers associations
aware consumer did not exist. were established in all the provinces and big
cities in China, financed from public money,
on purpose to counsel the consumers in
relation to different problems and to protect
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their rights when they are infringed. Their Bloc, Journal of World Business, Vol. 35,
role also extends on the assistance of No. 2, 2000, pg. 189-205;
governmental bodies in the promotion of [7] Tong, G., Chinese Consumer Protection
regulations regarding the quality of products Philosophy, Journal of Consumer Policy,
Vol. 14, No. 3, 1992, pg. 337-350;
and other measures designed to consumer
[8] Overby, A. B., Consumer Protection in China
protection.[8] After Accession to the WTO, Syracuse
Journal of International Law and Commerce,
5. Conclusions Vol. 33, No. 2, 2006, pg. 347;
[9] Gheorghiu, G., Consumer Protection
National policies designed to consumer Worthlessness or Necessity. Consumer
protection, which nevertheless evolved in a protection rationales, Ed. LAP Lambert
different way over time, from state to state, Academic Publishing, Saarbrucken, 2012.
under the influence of the internal pressures
of political, social and economic nature - are
more than ever subdued to the influence of
external pressures, as a consequence of the
process of economic globalization, becoming
more concessive or even more restrictive.
In the new context, geographical criteria
no longer represent an encumbrance in
exercising the consumption function, and the
national systems developed autonomously in
the field become incapable of solving the
possible transactional failures. Therefore, it is
imposed to identify some efficient modalities
and as simple as possible by which the
countries of the world could cooperate in
order to win the confidence of the consumer
and to assure his protection when he decides
to take action within the global market.
6. References
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Scutaru Liliana
tefan cel Mare University of Suceava
Faculty of Economics and Public Administration
lilianas@seap.usv.ro
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to have a greater degree of skilled labor and The four clusters of the automotive area in
patents, while even customers boost Romania have been established since 2011,
innovation potential. [6] although they were operational before its
official establishment and receiving the
2. The analysis of competitiveness of cluster status. The data currently available on
Romanian clusters in the automotive the activity and economic indicators of these
sector clusters are still restricted and can be traced
in Table no. 1:
The four clusters in Romania consist of 79 below the EU average and the export of auto
companies, representing, as can be seen from parts (increase of 5.7%), with unit values
Tables 1 and 2, a rate of only 8.65% of above the EU average. These figures confirm
companies that are operating in the the integration of Romanian automotive
automotive field. companies in the both European and
Romanian car exports in 2013 represented international value chain.
7.2% of total exports, with an increase of To analyze the competitiveness of
55.8% over the previous year, and of auto automotive Romanian clusters Romanian we
components of also 7.2%, with an increase of intend to determine which is the labor
18, 3% compared to 2012. [7] employed in these clusters in total civil
The automotive industry presents employment of Romania and which is its
comparative and competitive advantages both contribution to export in the automotive
in terms of exports of passenger cars, with a clusters in total Romanian exports:
growing share of 6.8% between 2008-2013,
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0.47%
12,27%
88,73%
Figure no. 2 shows the contribution to the The value of Romanian exports in 2013
total exports of automotive clusters Romania. amounted to 49.562 billion Euros, in which
Realizing an association between the results the most important weight is held by the
shown in the two graphs we can conclude group of machinery and transport equipment,
that 0.47% of the workforce in Romania with a percentage of 42.7%, exports on auto
made in 2012 over 12% of the country's total segment, meaning both cars, and auto parts.
exports worth 45 billion Euros, which shows In 2014, Romanian exports hit a record
that Romanian automotive clusters have a high of 52 billion Euros, of which about 24%
high degree of competitiveness. and 16.7 billion Euros, represents the
Due to limited sources of data on exports contribution to total Romanian exports of the
realized only by automotive clusters in the automotive industry, the industry with the
years 2013 and 2014 respectively, we present largest share in the country's exports. The
further the developments of the automotive contribution of the automotive industry in
sector exports (including exports of Romania's GDP in 2014 was 11%. Romania's
automotive clusters) of Romania reported to export structure is likened by specialists at
the country's total exports, knowing that the the moment with that of Germany, where
main motor vehicles and auto parts exporters vehicles and auto parts manufacturing is 30%
from Romania, Dacia and Ford plants are of exports, being also the industry with the
members of clusters in the field, which highest percentage of foreign sales of
means that most of the exports are made by products of the country with the largest
them in the field. Also, most of the leading economy in Europe.
foreign suppliers of automotive clusters are Realizing a further comparative analysis
members of the existing automotive clusters between the two countries in terms of the
in Romania. auto industry, in Romania, about 120,000
employees work directly in the automotive
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industry. If we include related industries, In conclusion, we can say that these data
statistics show that almost 200,000 Romanian provide competitiveness of the two countries
still receive salaries from the automotive in the world, even if we cannot achieve yet a
industry. For Germany the automotive comparison between them in terms of the
industry has an annual contribution to export level of technological development and
earnings of about 370 billion Euros, diversification of the economic sectors that
representing a fifth of total exports. support exports.
Regarding employment, about 900,000 Competitive structure of the main
Germans work directly in the automotive Romanian export products in 2014 is as
sector, plus another 4 million employees in follows:
upstream and downstream industries. [8]
It is noted that more than half of the main subsidiaries in South Africa, Brazil,
groups of products exported belong to the Colombia, Morocco, Iran and Russia.
automotive industry. The first place is held In conclusion, the analysis of automotive
by products and automotive parts of clusters in Romania and their exports, as well
suppliers, with nearly 4 billion Euros, as Romania's total exports, clearly shows that
followed by cars produced by Ford and Dacia the automotive industry is a very dynamic
companies with sales of 3 billion Euros. sector, which has become important since the
Third place is held by electric wiring for years of the financial crisis through a strategy
motor vehicles, with sales of 2.92 billion for penetrating markets through competitive
Euros. pricing, characterized by a continuous
Romanian automotive product markets increase in exports and diversification of
are diverse. Due to competitive prices, they markets on all continents.
were able to impose in a time of difficult
global economic conjuncture, when other 3. Conclusions
countries were hit hard by the financial crisis.
Thus, exports of cars and auto parts showed The automotive industry is considered a
continuous growth with the onset of the strategic sector of the EU economy, being the
global crisis in 2008. Dacia vehicles are sixth industry of Europe, intensely connected
exported to more than 90% of production, with many other industries and is one of the
being found today, as throughout Europe, in engines of the European economy,
countries like France, Germany, Spain, Italy, contributing to economic development.
the UK, and beyond its borders, in Egypt, This sector contributes to increased
Morocco, Algeria and Turkey. The markets European exports and provides about 12.7
targeted are Cyprus, Malta, Norway, Iceland, million jobs representing about 5.8% of EU
and Israel. On the auto parts, Dacia factories jobs.
supply parts for Renault multinational
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tefni uu
Rozalia Kicsi
tefan cel Mare University of Suceava, Romania
Faculty of Economics and Public Administration
stefanitas@seap.usv.ro
rozaliak@seap.usv.ro
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globally. [2] Porter lies at the basis of costs and the possibility to obtain cheaper
competitive advantage labor productivity; raw materials;
from this perspective, clusters support the Labor market externalities: industrial
creation and maintenance of competitive clusters favor the concentration of skilled
advantage by: [2] productivity improvements labor and the development of specific
of companies located in that area, by valuable skills for companies; also clusters
boosting innovation (which subsequently can improve the functioning of labor markets
induces productivity growth) and by by balancing supply and demand;
stimulating the creation of new business Knowledge externalities: clusters
(which will contribute to the development of facilitate the exchange of information /
the cluster). knowledge and seem to be a form of
Essentially, clusters are generated by cooperation very favorable for acquisition
vertical concentration of companies and and diffusion of knowledge.
institutions in the same field; thus, due to In the European Commission's
geographical proximity and intensification of Communication COM (2008) 652/2008
economic links between them, these "Towards world-class clusters in the
companies can better exploit economies of European Union-implementation of the
scale and can reduce production costs. strategy based on innovation" is underlined
Meanwhile, the clusters become the engine the importance of clusters, as the engine of
of innovation because companies that economic development, the European Union
cooperate and compete learn from each other Member States being encouraged to: [7]
and support the acquisition and transfer of - Integrate policy to support clusters in
knowledge. [3] National Reform Plans, taking into account
The importance of concentration of their European dimension, and to report on
activities (especially vertically) in a their progress;
particular geographical region was tackled - Support the integration of SMEs into
for the first time in economic theory by clusters, by implementing the relevant
Alfred Marshall; in his work Principles of recommendations from Small Business Act
Economics, he points out that industries for Europe (SBA);
concentrated in certain localities are usually - Ensure complementarities and
described, even if not very fair, as industries synergistic effects of various policy,
located. [4] This localization of the industry programs and initiatives to support the
(also described by the phrase "industrial development of clusters.
district"), according to Marshall prepares the Accession of Romania to the EU has
way for more modern developments of created a favorable development of clusters;
division of labor; among the advantages of Romanian law defines cluster as "... a group
the localization, he indicates inventions and of producers, users and / or beneficiaries, in
improving of production equipment, order to implement best practices in the
processes and business organization, European Union in order to increase
workforce qualification, creation and competitiveness of economic operators". [8]
transfer/multiplication of knowledge ("if one In practice in our country initially, popular
man starts a new idea, it is taken up by others was the model "triple helix" that brings
and combined with suggestions of their own; together in a cluster: [9]
and thus it becomes the source of further new - Enterprises - particularly SMEs
ideas ") etc. [5] (including start-ups and spin-offs) -
Agglomeration of industries generates a representing the business side of the cluster
series of externalities, initially identified by or the demand for innovation;
Marshall and rediscovered by K. Arrow and - Universities and research institutes,
P. Romer (MAR Externalities): [6] training centers - representing providers of
Input externalities, derived from innovative solutions applicable to the real
suppliers trend to locate near some needs of businesses in the cluster;
producers concentrated in a particular - Local, central, regional public
industry; consequently, manufacturers can authorities with skills in facilitating
enjoy specialized services, reduced transport innovative processes and harmonizing their
development etc.
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But experience has shown the need to such as financial services (London),
adapt the model, being gradually transformed petrochemicals (Antwerp), flowers
into a model "Four leaf clover" in which (Netherlands), bio-pharmaceutics (Denmark-
intervene catalyst organizations (consulting Sweden border region) etc. [11]
firms specializing in technology transfer and Regarding the attractiveness of these
innovation, technology transfer centers, etc.) forms of cooperation, data presented in Table
[10] 1 indicate that Italy, Poland and Spain
concentrate the largest share of the
3. A short perspective on European companies involved in clusters in the EU. In
clustering landscape Italy there are about 234 clusters; Italy is
known for traditional clusters in areas such as
Clusters have become important elements leather goods, jewellery and precious metals,
of the European economy; European Cluster textile, footwear and others, [12] etc. In
Observatory has identified over 2,000 Poland operate about 161 clusters in areas as
regional clusters which have significant diverse as education and knowledge creation,
differences in terms of level of development, textiles, processed food, furniture etc. [13] In
the partners involved, the degree of Spain there are about 151 clusters, most
specialization, etc. [11] The increased developing in areas such as maritime,
interest to support these forms of European farming and animal husbandry, agricultural
cooperation derives from relatively low products etc. [14]
performance in terms of innovation Romania records modest performances
compared with other developed countries (about 92 clusters in 2011); [15] of all firms
(USA, Japan etc.). Moreover, globalization involved in clusters in the EU, our country
and open markets facilitate the referral focuses only about 2.23%, but ahead of other
resource flows to the most attractive regions. European countries with higher levels of
Many European regions have developed development.
competitive advantages in specific activities
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Figure no.1. Evolution of the number of enterprises operating in clusters on the whole EU
Number of
enterprises
6650000
6601840
6600000
6550000
6500000
6471365 6436630
6450000
6410957
6431558
6400000
6350000
6300000
2007 2008 2009 2010 2011
Years
If we look at the profile of clusters in the France and Spain; Romania is among the 10
EU in terms of concentration of employment EU countries, but with relatively modest
(Table no. 2), we see that the largest share is performance.
held by clusters in Germany, UK, Italy,
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100
80
40
20
0
2007 2008 2009 2010 2011
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The Worlds Largest Oil and Gas Companies in the Period 2013-2014
Toma Sorin-George
Faculty of Administration and Business, University of Bucharest
tomagsorin62@yahoo.com
Marinescu Paul
Faculty of Administration and Business, University of Bucharest
paulmarinescu1@gmail.com
tefan Cosmin
CSOL-UB, University of Bucharest
cosmins.faa@gmail.com
Energy has always represented a highly 2. The evolution of the worlds largest oil
debated topic both in the academic and and gas companies in the period 2013-2014
business world. Oil and gas are not only
major constituents of the energy system, but The oil and gas industry has rapidly
also essential feedstock for many evolved worldwide in the recent years. The
manufacturing processes [1]. year 2014 has been a period of not only
Since the 19th century, the natural gas and great profitability for the global upstream
oil extraction has started in several countries industry but also a time of considerable
such as Russia, Romania, United States of volatility [5].
America (USA), and Canada. In the 21st The important changes in supply and
century, oil and gas supplies more than 50 % demand have continuously reshaped the oil
of global commercial energy consumption and gas market. In 2013, the top five
[2]. countries with the largest oil reserves in the
Oil and gas are at the forefront of the key world were Venezuela, Saudi Arabia,
ingredients of the modern economies. They Canada, Iran, and Iraq, and those with the
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4. References
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measures. Choosing the FDI recipient 4. The impact of foreign direct investment
country is based on several criteria, and the in host country
competition between government policies
can lead to more or less effective [3]. One of The main benefits of FDI are: the
these criteria relates to the policy of contribution of financial resources, the
promoting foreign trade and export support. transfer of management skills and know-how,
The requirement of prior existence of such implementing organizational techniques,
government policies affect the decision to modern technologies, funding local capacity
invest in FDI [4]. The quality of local for research and development and increase
infrastructure, mainly telecommunications foreign trade.
and transport [5] and the presence of a skilled Foreign direct investment influencing
workforce [6] influences the decision to foreign trade. As regards Romania, the link
invest of FDI. In general, the macroeconomic FDI - foreign trade is highlighted by:
policy of the state influencing the decision to promoting exports by FDI, improvement of
invest of FDI through public investment the system of prices and payment conditions
policies, which are of two kinds: general in export and import, facilitating access to
policy and specific policies. General policies new sources of raw materials, increasing the
refer to the environment in which it operates volume of currency benefits putting
FDI: industrial policy, infrastructure, foreign companies in contact with Romanian foreign
trade policy, exchange rate policy etc. market, to better adapt to the requirements of
General policies are the most effective tools Romanian exports on the world market
for attracting FDI. Depending on the impact (technical, quality, presentation and
of FDI on local firms can implement policies, packaging), avoiding intermediaries through
be supportive, be discouraged foreign direct direct sales, obtaining significant tax and
investment. If there is a reduced influence of customs facilities for products exported [9].
FDI on local firms, host state policy should Transnational activities generated by foreign
be towards education and managerial direct investment and exports are increasing
training. There is a wide range of specific the host country can support, in order to
economic policies to encourage FDI, but in ensure a production of purely internal market
general, businesses are investing in the host to an international market. Export growth
country where there is a priori a local offers many advantages: technology transfer
development factor. to local businesses, economies of scale that
To analyze the link between FDI host integrates national companies in the
country, economic literature brings a model production chain, increasing competitiveness
of internationalization of the company [7]. and a better understanding of the market
According to this model, as the development potential.
gap between the two economies called When a multinational company
"psychic distance" is greater, the less establishes a branch or acquire shares of
opportunity to invest in the economy of the foreign companies in the financial market, it
host country less developed. The need for aims to ensure the highest possible rate of
development of local economies requires profit. The advantage of investing firm is
new technologies to be imitated or given the technological parameters and
implemented in a sustained rhythm. The techniques used in the production and
speed of implementation of technologies is a distribution methods in the local market.
true barometer of the influence of foreign National companies can benefit from contact
direct investment. If foreign direct with FDI through vertical integration in the
investment quickly establish upstream and production chain or services as
downstream networks, technology transfer subcontractors. The technology transfers
takes place at the same pace. The fact that occur. This transfer takes place by local
psychic distance is directly related to the companies with the transition to a higher
potential development of local firms. Seems stages transnational technology company
more plausible than statements, that the rapid from research and development. The
deployment capability is the most important investing company always keeps its
factor of technology transfer [8]. competitive advantage over local firms. One
example of technology transfer is the German
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foreign direct investment in the auto industry to internationalize their businesses, increase
that have relocated oldest production lines in their productivity, created new exploit
China and keeping in the country the last economies of scale, acquire new production
production models. This practice of large methods and management techniques and
transnational companies is quite common in reduce the "technological distance".
emerging and developing economies due to
demand and the need for diversified outlets. 5. Foreign direct investment, host country
It identifies four ways for transfer of and psychic distance
technology to the host country: FDI imitation
production process, learning management The notion of psychic distance is
practices, the effect of competition and perceived as the difference between
increase exports of local firms. Mimicking development of host and investing countries
the production process is the classical but also as an opportunity to access new
mechanism of transferring new knowledge technologies. Higher psychic distance
and technologies. The literature is well generate in host country to hold human
known example of technology transfer capital, physical infrastructure and
"North-South", which is widely discussed by distribution networks to support investments.
many economists. The magnitude of transfer This affects not only the decision to invest of
of technology depends on the complexity of FDI, but also the type of technology
the production process. Imitation is not the transferred. Local firms can benefit for this
same with the replication (copying). Any development strategy. If psychic distance
improvement of technology through between FDI and domestic firms is not too
imitation, will have influence on the high, local firms can absorb know-how.
productivity of local firms. A new production Local firms using outdated production
technology can also occur due to human technologies and low-skilled workers will not
capital consists of foreign direct investment. be able to transfer technological know-how
Workers transferred to local firms become information, available only to companies that
direct agents of the transfer of technology or use superior technologies. Foreign firms have
management technique. This process can be specific facilities that allow them to use
considered as one of the most important superior technology, lower marginal cost
aspects of foreign direct investment compared to a local competitor and thus
relationship - development of local firms divert demand for products and services
[10]. Another effect of FDI on local firms is produced and offered to the market entry of
shaped by the key role played by competition the host country [12].
[11]. Following the move to channel demand,
In developed markets is generally carried foreign direct investment leads local firms to
out a fierce competition with local firms. reduce production and to change the cost
Even if local companies are still in the curve. A similar type of competition causes
production process and technology imitating influence of FDI on local firms in host
foreign competitors, they are forced to use countries where multinational companies are
existing technology more efficiently to mainly geared to export. Sometimes
reduce the productivity gap. In addition, competition with local firms is limited or
competition may increase the speed of nonexistent.
implementation of new technologies and Multinational companies retain their
marketing strategy and management. distinct advantages to local firms. The only
The growth and diversification of the way that local companies can improve their
country's exports is another factor receptor business is competitive pressure that forces
indirect interaction between FDI and local them to adopt more efficient production
firms. They learn how to export from techniques and higher wage levels. This
transnational companies. Exports generally competition may have adverse effects on
involves fixed costs, establishing distribution local firms in the short term, but in long term
networks and transport infrastructure it ensures technological development. Ireland
creation. Transnational companies are is one example, where competition in the
familiar with these strategies. Through labor market between multinationals and
imitation and copying, local firms can learn local firms in same economic sectors
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7. References
55
Section I
International Affairs and European Integration
***
Subsection 2
European Integration
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Botina Madalina
OVIDIUS University Constanta
madalinabotina@yahoo.com
Dobre Elena
OVIDIUS University Constanta
edobre2010@gmail.com
Munteanu Alexandra
Schoenherr Attorneys at Law
alexandra.munteanu@gmail.com
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7. References
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Caranica Cristina-Nicoleta
University of Economic Studies Bucharest
cristina.caranica@gmail.com
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introduced the system of MLG together with But, countries with weak organizations of
the principal of solidarity and partnership. the local governance and social partners are
The Central and Eastern European Countries depending of the central governance for
adopted the principle latter on when in the implementing the local projects, in such
period of transition to an open economy these cases the European Union regulation can
countries operated with it [3]. increase the openness to the policy making of
The original interest in partnership the regional actors and to collaborative
principle is attributed to the urban growth approach. [9]
coalitions in United States of America when The MLG concept has been questioned if
the local and regional business it is sufficiently equipped to respond to the
representatives were working in involving implication of a question such who control
private and public capital to ensure the the implementation of EU cohesion policy?
additional prosperity in that times associated So the theory of the principal agent was
with the expansion of the cities. [4] considered to apply to the cohesion policy
It is important to underline also the [10]. The interpretation of this theory has
importance for the European society to been an extension of the
understand and correctly use the concept of intergovernamentalist theory because the
partnership and cohesion policy in the states are creating institutions in order to
strategic management activities. In United have mediatory, regulatory levers and to use
Kingdom when especially the local it for members maximization of the benefits
authorities were weak (1980) some initiatives in European Union. In this theories the MLG
of promoting urban and rural regeneration is considered limited, it cannot explain why
were supported also through central the European Union institution cannot
government regeneration programmes with prevent the influence of national and
Structural Funds using the partnership subnational actors in the implementation
principle concept [5]. phase to the extent of impacting the policy
In implementing the MLG principle the structure as the partnership principle is
organization need to fully understand the requiring. It is considered that the agents
implication of the partnership concept and to laws is impacting the implementation of the
use it in accordance with the laws and projects more than the European Union laws
institution of each country where the partners foundation even if the repeated reforms of
are organised. The complexity of such the cohesion policy from 1988 were made for
partnerships can be considered a challenge in strengthen these regulations. On the other
a strategic management. hand the rules made by the European
The peak point as importance of using the Commission and the indicators established
MLG configuration is during the by it in analysing the effectiveness of the
implementation phase and an example of this cohesion policy are considered arguments
maximum appliance is in the cohesion against the both theories (MLG and principal
policy. The partnership principle is agent theory). The MLG is antagonist to the
completing the MLG configuration because state centric theory and is merging or
is participating to the linkage of the regional rejecting the intergovernamentalism and the
and local channels through neo-functionalism. The subnational actors
institutionalization. [6] tend to get more importance in the MLG
It is necessary to underline that the configuration.
analysis of the partnership principle in the Marks and Hooghe (2001) considered the
European Union context refers to the idea that cohesion policy was especially
European Union compliance at the configured for MLG to be more used in the
established rules and to the integration of the economic policy in the European Union, but
principle in the domestic approach to this can be reached only if the policy is used
regional development policy. Also the in the poorest regions from European Union.
compliance is easier to achieve in the However this idea was not supported but the
countries with tradition in cooperation and principle is appropriate. Also according to
social partnership such Ireland [7] and same authors the principle of partnership
Scotland. [8] incited on argues between different
national levels and the European
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Commission and was acting as mediator and the correlations between the components of
challenger during these periods. the relation. The correlation between the
The partnership principle is also favouring cohesion policy and the determinants of this
the cooperation and democracy and the policy were presented using graphics.
opportunities of citizens to participate to
governance, favouring the strength and 4. European Union regulations regarding
multilevel democracy. [11] the partnership principle
MLG is used to close some capacity gaps
in policy making such [12]: In order to increase the role of the
1) Information gap: different levels do not cohesion policy in the European Union
have the same quantity or quality of member states considered necessary to
information when designing, implementing increase the ownership vertically and
and delivering public policy; horizontally in all stages of the operational
2) Capacity gap: there is a lack of human, programmes.[13]
knowledge (skill-based and know-how) or In this way the Partnership Agreements
infrastructural resources available to carry and the Common Strategic Framework
out tasks, regardless of the level of becomes the base of the 2014-2020 period of
government; programming. A powerful change in the
3) Fiscal/ funding gap: when revenues are regulation was established through the article
not sufficient to finance the required 5 of EU Regulation no. 1303/2013 by which
expenditures, indicating a direct dependence the partnership principle was considered
on higher levels of government; compulsory during the implementation of the
4) Administrative gap: administrative operational programmes.
borders do not correspond to functional, But the decisive step towards partnership
economic and social areas, leading to a principle in European Union was made
fragmentation of public policies; and through the European Code of Conduct on
5) Policy gap: occurs when line ministries Partnership which presented in 2014 the main
take purely vertical approaches to cross- conditions that must be followed:
sectorial policies that require co-design or Partners selected should be
joint implementation at the local level. This representative of the relevant stakeholders;
leads to a lack of inter-sectorial co- Selection procedures should be
ordination, often seen in such areas as energy transparent and take into account the
and regional development. different institutional and legal frameworks
This factors contributed to the importance of the Member States;
of partnership principle in the cohesion Partners should be involved in the
policy, together with all the details presented, preparation and implementation of the
and determined the interest in regulating the Partnership Agreement and programmes; for
principle for the new period of using ESI
this purpose, it is necessary to establish
Funds 2014-2020.
minimum procedural requirements in order to
ensure timely, meaningful and transparent
3. Research Methodology
consultation (i.e. sufficient time for
The study focused on exploring the consultation, availability of documents, etc.);
cohesion policy and the point of intersection Partners should be represented within
with the principle of partnership. We wanted the monitoring committees of programmes,
to answer questions, such as: Is applicable throughout the whole cycle (i.e. preparation,
the principle of partnership in the cohesion implementation, monitoring and evaluation);
policy? If yes, what theories were developed Effective implementation of a
regarding this relation? What rules were partnership should be ensured by
adopted by European Union in order to strengthening the institutional capacity of
regulate this principle? relevant partners through capacity building
The analysis was conducted through the activities targeting social partners and
review of the data and documentation organisations representing civil society who
published by the European Union and the are involved in the programmes;
theories developed referring these topics and
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Exchange of experience and mutual deliver more tangible results, synergies and
learning should be facilitated, in particular simplification of processes.
through the establishment of a Community of
Practice on Partnership covering all the ESI 5. Conclusions
Funds;
The role of the partners in the The new policy considered in European
implementation of the Partnership Union is the employment policy as a modest
Agreement, as well as the performance and policy against the extensive and long term
effectiveness of the partnership during the recommendations. Also this policy is not
programming period should be subject to splitting between north-south countries or
assessment. west-eastern countries. [6]
Another step towards the partnership will This was almost proven during the reform
be made using the good practice examples in 2006 when the employment policy
presented by the European Community of captured more attention but the limit of this
Practice on Partnership that is designed to importance was the incorporation of it in the
facilitate exchange of experience, capacity cohesion policy.
building, as well as dissemination of relevant
outcomes according to the article 18 of the Figure 1: The EU budget allocation by
same Code of Conduct. In this Community policy for 2014-2020 period
the management authorities and partners
from European Union and from all types of
programmes of financing are invited to
participate.
The first comments regarding the good
practice of the application of the partnership
principle at country level and in the
implementation of the ESI Funds are
presented in the third part of the Code of
Conduct. The presented pillars on which the
principle is applied at the European Union
level are taking into consideration:
- Procedures used to identify transparently
the partners;
- Presentation of the relevant contribution
of the partners in all the stages of
implementation, the added value of the
partnership;
- The used rules in the monitoring area
and the structure of the partners
- The dissemination of the good practice
by the Commission.
Because of the importance of the good Source: The budget of the Cohesion
practice in this moment some of the analysis policy 2014-2020 (2015) retrieved from
are considering this topic relevant for http://www.fonduri-
increasing the application of this principle structurale.ro/detaliu.aspx?eID=10117&t=fs2
and to influence the absorption rate of each 014-2020
country for the new absorption period 2014-
2020.[13] The achievement of the cohesion policy
In the past, the governance of cohesion can be represented by the participation of the
policy was considered a particularly complex national and subnational agents to the
system, so any MLG requirement must development of their regions but the
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disperencies between the regions are can lead to the inefficiency of the cohesion
affecting this participation. policy even if some regions are registering
The single market and unique currencies important economic growth.
are supported by the cohesion policy, so such The partnership principle is assuring
an effort is headed also to diminish the along with the enlargement, concentration,
disperencies. additionality and solidarity the strength of the
European Union and the tools against the
Figure 2: The dependencies in the disparities.
cohesion policy One conclusion of the relevant literature
on partnership principle is that associations
are gaining the right of directly participate in
the process of writing and implementing the
agreement of each member state with the
European Union. This role must be assumed
by all the collectivity from which those
associations are born because the cities can
only be consulted through their organized
associations.
It is important to underline other leverage
that can be used in Europe 2020 governance
policy the Territorial Pacts represented by
political commitments or voluntary contracts.
These kinds of pacts are considered
important if it will bring added value in
implementing Operational Programmes and
not administrative burden for the
implementation of the Strategy Europe 2020.
This is important aspect because Europe
2020 governance policy can create synergies
with the cohesion policy. [13]
In this analysis it was necessary to
consider the fact that the compliance with the
MLG can be evaluated ex-post and can be
explained through the partnership principle
between the governance levels. So the
member states, management authorities and
other social partners can provide feedback
whatever the MLG functioned for absorption
of ESI Funds. The evaluation criteria need to
be established in the agreements between the
partners.
According to surveys in different member
Source: Author processing states the using of MLG seems to be
connected with the participatory democracy
The elements of the employment policy, principles. So in order to have a solid
incorporated into the cohesion policy can application of the partnership principle it is
become elements of the MLG using the necessary to apply it in a democratic
implementation of the essential principles of environment.
the cohesion policy. The partnership In order to quantify the real appliance of
principle can suffer when the legal these theories it is proposed to use indicators
obligations are not contained in the European especially when member states are
Union law for all the levels of partners and
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Catana Aida,
Economic Cybernetics and Statistics Doctoral School, Bucharest, Romania
apcatana@gmail.com
Titan Emilia
Economic Cybernetics and Statistics Doctoral School, Bucharest, Romania
emilia_titan@yahoo.com
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evolved, the strengthening of the multi-level the economic, social, sustainable and
governance system being essential for a real balanced territorial development of all the
functioning of the regional development Romanian regions, according to the specific
policy and the creation of a real effect of this needs and resources, ROP 2007-2013
policy. [2] Although it is invoked the benefited from a substantial allocation of
significant contribution of the structural and funds, which was later distributed
cohesion funds at regional level, the analyses differentially for each development region,
show the opposite, namely that the poor principle also applied for each key area of
countries have recovered the development intervention, depending on the degree of their
differences faster than the poor regions. development. Thus, the financial allocation
[3] Although there are opinions that state that for the ROP 2007 - 2013 is of 4,568,341,147
in recent years there was a "regionalization" Euro, out of which 3,726,021,762 Euro from
of the regional policy [4], in Romania the the European Regional Development Fund
way in which the management and control (ERDF), the rest representing national public
system deficiencies of the structural and funds and private funds.
cohesion funds have affected the possibilities Continuing addressing the set priorities at
of accessing funds or implementing projects the level of NDP 2007-2013 and National
derives from external causes of the local Strategic Reference Framework 2007-2013,
authorities, we can still talk about an indirect the Priority Axis (AP) 3 - Improvement of
regional policy. [5] Hence if at the EU level social infrastructure, the one which we refer
it was considered that one can observe a to in this paper, are aimed at creating the
process of economic convergence and in prerequisites for providing the population
Romania there were noticed increases of with essential services, contributing thus to
disparities according to different analyses. meeting the European objective of economic
[6],[7] Moreover, the continuing gap of and social cohesion by improving the
development between counties in Romania infrastructure of health, education, social and
[8] was announced in the works of several for public safety in emergency situations. The
Romanian researchers, by signalling the key areas of intervention (KAI) under this
ineffectiveness of the measures adopted, priority axis that we considered relevant in
given that the differences at level NUTS 3, our analysis are:
respectively the counties, are growing. [9] rehabilitation/modernization/development
However, the importance of education and and equipping of social services and
social services is recognized, along with the rehabilitation/modernization/development
field of health [10] thus justifying both the and equipping of pre-university, university
establishing of the major areas of educational infrastructure and continuous
intervention under Priority Axis 3 of the vocational training infrastructure. There were
Regional Operational Programme 2007- not included in the analysis KAI 3.1 that
2013. This may ensure the contribution to the monitored the rehabilitation / modernization /
development of human capital in the equipping of health services, the health care
European Union, the positive effects domain being in a process of reform that has
generated by these fields are highlighted also led to the closure of several hospitals which
for the previous programming periods. [11] was not analyzed because it was deeply
affected by the national approach, as well as
2.2. ERDF contribution to the KAI 3.3 on Improving the equipment of
improvement of regional educational and operational units for emergency interventions
social infrastructure that was intended for interventions at
regional level, our analysis aiming at the
The programme financed from Structural county level.
Fund (European Regional Development Fund The indicative financial allocation for
ERDF) which will address the regional Axis 3 "Improvement of social
development differences within Romania for infrastructure" is of 657, 53 million Euro, out
the 2007-2013 programming period is the of which 558, 90 million from ERDF and the
Regional Operational Programme (ROP) rest being national co-financing. Then there
2007-2013, with ERDF allocation of where funds (EUR 150 million co-financing
3,726,021,762 Euro. Aiming at supporting from the ERDF) reallocated to ROP 2007-
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2013 according to the Commission Decision all regions or the highest rate of infant
C (2013) / 9772 final of 12/19/2013 which mortality of all regions offered the size of the
supplemented the final allocation of DI 3.4, seriousness of the situation the RDP North -
the call launched in 2014. East 2007-2013, approved by the council of
the Regional Development on the 7th of
3. Regional perspectives and realities on March 2006, needs to address, in the North
ERDF projects on education and social West region the development level is
infrastructure diametrically opposed, the region occupies
the 5th place in the national hierarchy in
Cluj, Brasov, Vaslui and Giurgiu counties terms of the regions contribution to the
are part of the region North-West, Central, formation of the GDP, Cluj county having
North-East or South-Muntenia and these are the largest contribution to the regional
the counties that in 2007 had the highest or GDP. However, at the level of this region as
lowest development. The financial allocation well there are highlighted the constraints
for KAI 3.2 and 3.4 (Figure 1) was higher for made by the poor quality of the educational
the less developed regions (North-East and infrastructure, especially in rural areas [12] In
South-Muntenia) and lower for the most the Centre region, the third nationwide as
developed (North-West and Centre), thus GDP contribution , benefits from the existing
attempting the reduction of regional basic social and educational infrastructure in
disparities. cities, a good network of vocational training
and strong university centres (Brasov, Targu
Figure 1: Comparative situation of the Mures, Sibiu, Alba Iulia) but also a number
ROP 2007-201 allocation (ERDF and State of specific issues, such as: the educational
Budget) on KAI 3.2 and 3.4 for the four and health infrastructure is lacking in some
regions isolated mountain villages; the lack of
facilities in the education and health systems,
mainly in rural areas; limited access to
educational and health infrastructure in some
isolated areas [13] The low level of
development of the social infrastructure,
public services and utilities and education
and living conditions in the general context
of low GDP / capita at regional level are only
part of the problems mentioned at the level of
Source: ROP 2007-2013, Application the South-Muntenia region. [14]
Guidelines - data processed by the authors Regarding the regional development
directions, the objectives or measures
proposed, be it the most developed regions
3.1 Needs and solutions identified at
Centre or North-West or the less developed
regional and local level
ones, North East and South-Muntenia, we
At regional and local level in the planning find the development and modernization of
documents under the form of regional the educational, social and health
development plans (RDP) or of the infrastructure [15], or the development and
development strategies of the counties, rehabilitation of educational infrastructure,
adopted for the period 2007-2013 there have and improving the health and development of
been identified and presented both the the health infrastructure and social services
problems and the proposals for solutions [16], the rehabilitation and development of
coagulated as development directions in the educational, health and social
whose implementing a key role was played infrastructure [17], or the development and
by the EU funds, mainly the European modernization of public utilities, social
Regional Development Fund. If in the North- services and infrastructure including waste
East region the identified problems, namely management, and improvement of the access
the lower value of the regional GDP/capita of rural communities to education, training,
among all regions, the highest poverty rate of employment and counselling. [18] We note
however the fact that the administrative
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capacity increase is targeted in the RDP reflected in all the development strategies of
North-West and North-East, the proposed the counties.
measures relate to strengthening the Thus, within the Cluj County
administrative capacity for the elaboration of Development Strategy for 2007-2013,
public policies, or support the economic approved in September 2005 and updated in
growth and promote the good governance 2009, it was established the specific
through capacity building of public objective: improving the social, health and
administrations [19] in the first case and education infrastructure, at local and county
conducting training for individuals level. Also, in the strategy of Brasov County
responsible for identifying the external there was set the direction for development 6.
sources of financing and managing them Improve the quality of the human social
effectively by implementing projects. capital. [24]
[20] However, there are not provided support For Giurgiu County there were
modalities for the ATUs in their process of established Priority 1: Development of
preparation and accessing the available infrastructure including reducing disparities
funds, considering that the main problem is in terms of educational infrastructure, as well
lack of a clear budget at the level of the as Priority 3: Reducing disparities and
public administrations that would include the promoting social inclusion with the areas of
co- financing of their proposed projects. [21] intervention. [25]
At the level of Brasov County it was Also, Vaslui County provided the measure
found with respect to the field of education 1.4. Development of the educational, social
that the material basis is outdated, especially and health infrastructure under Priority axis
in rural areas and that there is a problem 1: Infrastructure and Environment. [26]
about the uncertain legal status of the
locations in which some education units 3.2 The completed projects and the limits
function and many losses of space as a result of the administrative capacity
of restitutions. In terms of social
infrastructure the main deficiency is the lack The applications for funding projects in
of access infrastructure for people with these areas were launched in early 2008 (RAI
disabilities. [22] 2008, p. 61, p.65) and from the beginning
For Giurgiu County, as it results from the the value of the submitted projects exceeded
Development Strategy for the period 2008- the allocation for each area, being of 125%
2013, from the social point of view it was for KAI 3.2 and respectively of 355% for
considered that there is an inequitable KAI 3.4. At the level of the 4 counties
distribution of health facilities and medical examined there were submitted several
personnel in rural areas. Also, the analysis projects, namely for KAI 3.2 Cluj submitted
performed in Giurgiu County as is included 2, Brasov 2, Vaslui 4 and Giugiu 6 and for
in the Strategy revealed the existence of some KAI 3.4 there were submitted 12 projects at
differences between the educational the level of Cluj County, Brasov 6, Vaslui 3
infrastructures in rural areas compared to the and Giurgiu 6 projects. The total amounts
one in urban areas. It is important that the requested in each county shows that the total
administration capacity of Giurgiu county values obtained are greater for Cluj and
municipalities was also analysed appreciating Brasov compared to Vaslui and Giurgiu.
that there is an inability of the local
administrations to access structural funds.
The existence of a large number of school
units that require major repairs and
consolidation, especially in rural areas, the
need for major investments in equipment for
school medical offices, laboratories, school
workshops; as well as the need to improve
children's access to the educational
infrastructure in rural areas were identified in
Vaslui County. [23] The development of the
educational and social infrastructure is
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Figure 2: Total values obtained for the Figure 3: Total income (VT) and own
four counties income (VP) of the counties
Source:
http://administratie.gisportal.ro/mdrap/ - data
processed by the authors Source: http://uat.mdrap.ro/ data
processed by the authors
The annual implementation reports
drafted along the time by the Managing Given the large differences in budgets
Authority for ROP 2007-2013 (AM POR) existing at local level during the 2007-2013
have presented the problems encountered, programming period, there is, naturally, a
these being the lack of accreditation difference in providing the financial
certificates for the newly developed social contribution needed, especially given the
services in the newly established centres or reimbursement system applied.
the ownership of the higher educational The introduction of the mechanism of the
institutions [27] or the risk that the inclusion payment requests made much easier the task
or demolition plans of certain educational of the local authorities. Although at the level
units developed by the Ministry of Education of the analysed counties deficiencies were
includes a series of units under evaluation or reported to the local authorities and it was
for which AMPOR signed financing proposed to develop their administrative
contracts [28], which is what has happened. capacity, however the level of the total
[29] income or own income was almost constant
The high level of the total value of the in favour of the more developed counties.
projects obtained by beneficiaries located in The high level of the own income could
Cluj County could be explained by financial explain the higher capacity to develop new
capacity of local authorities to support the applications in order to get EU funds. Related
projects and administrative capacity to to the total income (VP) a data analyzes
elaborate and implement the projects. If in shows that there are significat differences
2009, the main problems faced by the among counties (Fstat=44.823; p<0.01).
beneficiaries, refer to the human resources at
local level, respectively the insufficient Tabel 1: Total income comparative
personnel at the level of the local public analysis for the four counties
authorities, poorly financially motivated and ANOVA
Source of
the fluctuation of the trained staff in the Variation SS df MS F P-value F crit
Between
management of public funds [30] in 2012 it Groups 1.89E+17 3 6.28E+16 44.823 5.442E-10 3.0088
was found that the lack of financial flows, at Within
Groups 3.36E+16 24 1.40E+15
the level of the beneficiaries, necessary to Total 2.22E+17 27
effectively implement the projects financed Source: http://uat.mdrap.ro/ data
from EU funds, causes delays in the processed by the authors
implementation of the projects. [31]
Also there is no significant differencies
between Brasov and Vaslui counties on total
income average (t stat= 2.077, p=0.06) as is
proved by a comparative analysis. The
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Dobre Claudia
Universitatea Ovidius Constanta)
dobre_claudia@yahoo.com
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emphasis on "economics" and rely less on markets (banks and credit institutions, leasing
structural factors such as concentration levels companies, insurance companies, pension
and market shares. and health insurance companies, investment
EU merger control enforcement has companies). This differentiation concerns the
evolved gradually and in a consistent and basis, on which the market share is calculated
stable way. The assessment has been made where markets in financial sector are
on the basis of sound economics using solid analysed, as well as the calculation of the
tools for investigation. [3] turnover of the undertakings, operating in
these markets. The necessary data for the
4. Brief overview of the merger legislation calculation by the CPC of the market shares
and banking sector in Bulgaria and of credit institutions is taken from the
Romania statistics of Bulgarian National Bank. The
statistical data needed for the calculation of
The accession of Romania and Bulgaria to the turnover of the insurance companies,
the European Union implies the entering in investment companies, etc. is taken from the
the single European market and the Financial Supervision Commission. The
existence of the single banking license. In Methodology provides for two main indexes
this context, foreign banks can enter more to be used by the CPC to determine the level
easily the territory of a member country, of concentration in the relevant market in
which can determine the expansion of merger proceedings the Herfindahl index
competition in the local banking activity. The and the CR. The Methodology allows,
methods to enter the banking market can be however, using other indicators in addition to
diverse: open branches or subsidiaries; equity the CR and I, depending on the
investment in the local banks; mergers or characteristics of the relevant market.
acquisitions of local banks. In the period 2006 June 2008, the
The Law on Protection of Competition Commission on Protection of Competition
(LPC) is the main law in Bulgaria containing made an assessment and authorised without
provisions on the control of concentrations, conditions 7 concentrations in the banking
entrusting the Commission on Protection of sector: MKB Bank, Hungary, to acquire
Competition (CPC) with the power to make control over Unionbank Commercial Bank;
an assessment of planned concentrations of Eurobank EFG Holding, Luxembourg, to
economic activities and to decide on their acquire DZI bank; Piraeus Bank Bulgaria, to
authorisation. Taking into account the free acquire the retail banking business of ING
regime in Bulgaria for the banking activities Bank H.B.-Sofia city branch; Piraeus Bank
of EU credit and financial institutions, Bulgaria, to acquire control over the leasing
licensed in EU Member State, the CPC company Dirent Bulgaria; Setelem S.A.,
expects that the consolidation and France, to acquire control over Jett Finance
concentration processes in the banking International, Sofia consumer finance;
system in Bulgarian market will further KBC Bank H.B., Belgium to acquire sole
continue [4]. control over Economic and Investment bank
The main provisions on the methods used and Allied Irish Banks Public Limited
by the CPC to determine the market share of Company (AIB), Ireland, to acquire control
undertakings are part of the Methodology on over Bulgarian-American Credit Bank.
Investigation and Definition of the Market After the accession of Romania to the EU
Position of Undertakings in the Relevant and the liberalization of the service market,
Market. The Methodology is adopted with foreign institutions have expressed their
decision No 393/2009 of the Commission intention to have direct banking activities on
and it reflects the amendments, introduced in the Romanian territory. The Competition
the law. This new Methodology makes Council, as national competition authority,
differentiation when setting how the market enforces and ensures the application of the
shares are to be calculated by the CPC, national and Community rules on
depending on the markets, in which the competition.
undertakings operate - markets of the real Next we summarize the main
economy or financial sector markets, with concentration in banking operations in
further delineation for specific financial Romania. Millennium Bank started its
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activity on the Romanian market on October Above review of literature gives us the
11, 2007, by simultaneously opening 39 empirical substance to one of the theoretical
branches in Bucharest and in other eight advantages which is claimed for
cities of the country. Before 2007, there was concentration ratios as a measure of market
some foreign entrances in the Romanian structure. Since the importance of
banking system after the privatizations of concentration ratios arises from their ability
certain Romanian state banks, such as: Banca to capture structural features of a market,
Romn pentru Dezvoltare (BRDGSG) these are therefore often used in structural
bought by Socit Gnrale and Bancpost in models explaining competitive performance
1999, bought by a consortium formed by in the banking industry as the result of
General Electric Capital Corporation (35%) market structure. Concentration ratios are
and Banco Portugues de Investimento (10%); also able to reflect changes in concentration
Banca Agricol bought in 2001 by as a result of the banks entry into the market
Raiffeiesen Bank and Banca Comercial or its exit from it, or caused by a merger.
Romn whose privatization process last Concentration Ratio (CR3): Three-Bank
between 2003 and 2006, when Erste Bank concentration ratio equals to the sum of the
took the biggest bank of Romania. Also OTP assets, or deposits, of the largest three banks
Hungary overtook RoBank in 2004, the first in a given market divided by the total assets
acquisition of a bank with private capital in of that market, as in equation:
Romania. [5] CR3 = The Largest Three Banks' Assets /
In 2010, in Bulgaria there were 30 banks Market's Assets
and in Romania 32, which shows a
resemblance between the two countries on
the structure of the banking system.
Chart 2: Concentration Ratio (CR3) in Romanian and Bulgarian banking system
50
45
40
35
CR3 in Romania
30
banking system
25
20 CR3 in Bulgarian
15 banking system
10
5
0
2007 2008 2009 2010
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6. References
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Ghita Simona
Academy of Economic Studies in Bucharest - Department of Statistics and Econometrics
simona.ghita@csie.ase.ro
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explaining the phenomena and processes of framework model, developing a new model
sustainable development, by identifying the called DPSEEA (Driving Force - Pressure -
cause-effect relationships, the connections State - Exposure - Effect - Action), covering a
between them. They differ, however, from wider range of cause-effect relationships in
each other, by the way in which they health and environment domains [9].
highlight the main dimensions of sustainable
development, relationships, by the way in 2. Frameworks used in projecting
which they categorize and group the various indicators-systems of sustainable
subcomponents of sustainable development, development
by the emphasis they put on different
components of cause-effect chain. The development of a system of
OECD has taken over an adapted version indicators in sustainable development domain
of PSR framework, and applied it in the is achieved through its transposition to an
study of environmental issues. In 1989/1990 appropriate framework, so that data can be
the validity and efficiency of the PSR better organized, systematized, and the most
framework were reviewed by several OECD relevant information can be selected in order
countries [4], and the framework was further to quantify various sustainable development
used in structuring a system of environment aspects. Thus, the indicators obtained better
statistical indicators, both core-set and meet the established requirements and
sectoral indicators. In Carr et al. (2007) it objectives, in order to fully satisfy the needs
is mentioned that this frame tended to push of decision makers, policy makers and the
aside natural variability, as there was no public. Framework facilitates highlighting
place for it in the PSR classification and explaining the connections, the
schemes", because of the anthropocentric interactions between different sides of the
orientation of the model [5]. The United sustainable development.
Nations Commission on Sustainable Researchers have developed over time
Development has replaced the term more frameworks, based on different
"Pressure" with "Driving Forces", in order to principles and have been used them to
widen, to extend the meaning of the concept. support the construction of various statistical
The PSR model has become the DSR model indicators systems of sustainable
(Driving Force - State - Response). Bowen development. Further, the author presents
and Riley (2003) have shown that a several important frameworks:
disadvantage of the PSR and DSR models
was that they did not explain well enough the PSR framework (Pressure-State-Response)
determinants, the causes generating
environmental pressures and neither the The model was developed in the 70s by a
underlying reasons behind the company's Canadian statistician, in order to quantify and
response, as a reaction to the environmental analyze the interactions between the
changing conditions [6]. These problems pressures on the environment, environment
were solved by creating a new framework for status and how society reacts to these
structuring a statistical indicators system of pressures. This framework was adopted and
sustainable development: DPSIR (Driving used by the OECD Environment Directorate -
Force - Pressure - State - Impact - State of the Environment Division, which
Response), used by the European later reassessed and revalidated the
Environment Agency (1999) and framework, and used it in developing
EUROSTAT. Scheren et al. (2004) used this statistical indicators system for environment.
framework to investigate the environmental The PSR is a matrix in which the
pollution in Ebri Lagoon in Cote D'Ivoire [7]. indicators are organized into three categories:
Rekolainen et al. (2003) [8] have indicators that reflect environmental
launched some criticisms of DPSIR pressures (Pressure), indicators of
framework, referring to the fact that the environmental status (State) and the response
model does not take into account the high indicators that quantify the reactions of
dynamic developments in the studied society in order to restore the state of the
systems. As such, the World Health environment and to bring it within normal
Organization (WHO) amended DPSIR limits (Response). On the other hand,
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DPSEEA framework (Driving Force- with feedback role at all levels; it is a flexible
Pressure-State-Exposure-Effect-Action) and adaptable model for many areas; unlike
previous models, the DPSEEA focuses more
The DPSEEA framework was developed on the impact between human activities that
by the World Health Organization (WHO) by generate environmental pressures, detailing
adapting the DPSIR framework, in order to the manner in which the environment is
construct the statistical indicators system for exposed to human pressures and the effects
sustainable health and environment. The of this exposure.
model highlights a wide range of causal
relations in environment and health domains. 3. Comparisons between the four
World Health Organization and some of the frameworks
European countries have used this framework
to develop indicators of environmental None of the frameworks presented above
health. is perfect for developing a system of
statistical indicators of sustainable
Figure 2. Components of DPSEEA development, each has their own advantages
Framework. and disadvantages. All models are based on
cause-effect relationships, focusing more or
less on one side of this causality. All four
models generate information through the
indicators included in each framework. They
facilitate the integration -in a systemic
approach- of the causes of environmental
problems, of the impact on the environment,
of the environmental status, of the response
of various stakeholders to solve these
problems. Framework-systems enable the
communication of all information obtained to
decision-makers, using an organized
indicators-system and also help the
Source: adapted after Bushra Waheed, Faisal
formulation of economic and social policy
Khan and Brian Veitch, Sustainability, 2009.
measures, meant to adjust the encountered
problems.
As seen in the above figure, the
It is also possible, in some countries, a
specificity of this model comes from the fact
that policy makers, stakeholders (regardless combined usage of several frameworks,
they belong to the government, private obtaining a more complex hybrid model,
households or firms) may take some actions better focused on the specificity of
to adjust any problems at any level (Driving sustainable development problems of the
Force, Pressure, State, Exposure and Effect), various nations.
having a feed-back role. The model allows
the inclusion of indicators that reflect how Table 1. Comparisons between
the environment state is altered by pressure sustainability-indicators frameworks.
from human activities (Exposure) and the
effects of this exposure (Effect). In other
words, the model breaks down the "Impact"
category in two categories: "Exposure" and
"Effect", making it more explicit.
DPSEEA framework has the following Source: made by the author
advantages: it explains and covers a wide
range of causal relationships between 4. Conclusions and future work
monitored phenomena; allows a
multidisciplinary approach of causal The analysis performed shows that there
relationships, using the experience of is no perfect model-framework that can be
specialists in several fields; enables actions used in designing a system of statistical
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Grecu Mihaela
Bucharest University of Economic Studies, Department of Statistics and Econometrics
mihaela_grecu24@yahoo.com
Titan Emilia
Bucharest University of Economic Studies, Department of Statistics and Econometrics
emilia_titan@yahoo.com
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The indices included in the analysis are observe that for almost every country we
the youth unemployment rate for the young have the following relationship:
people aged 25-2 years, the inflation rate and unemployment rate for tertiary studies
the GDP per capita. We chose this age range graduates < unemployment rate for
due to the fact that the number of tertiary secondary studies graduates <
education graduates has an ascending trend. unemployment rate for primary studies
The last two indices included in the analysis graduates
were chosen due to their importance for the
development level. Figure 2. Unemployment rate for people
aged 25-29 years with primary studies
3. Results and discussion
Unemployment rate for people aged
25-29 years with primary studies
From the below picture we can observe
that the most affected countries by the youth 80,0
unemployment are Spain and Greece with an 60,0
increasing of 20.2 pp for Spain and 26.8 pp 40,0
for Greece. If we take a look at Romania we 20,0
can conclude that it is not affected by the 0,0
United
Latvia
Denmark
Germany
Greece
Spain
France
Romania
Slovenia
EU 28
Poland
Slovakia
Italy
Bulgaria
global economic crises (in 2014 the
unemployment rate was 10.5%, while in
2006 was 9.4%) and neither can be
considered a lucky country of the actual 2006 2014
context. Romania is the country with the
Source: http://ec.europa.eu/eurostat.com
lowest difference between the two years
included in this graph (the index increased
Figure 3. Unemployment rate for people
only with 1.1 pp). It seems that Germany and
aged 25-29 years with secundary studies
Poland are not affected at all by the actual
economic context for these countries the Unemployment rate for people aged
youth unemployment rate has a decreasing 25-29 years with secundary studies
trend. Germany is known as a powerful 60,0
country, but Poland can be considered a
surprise. 40,0
Figure 1. Unemployment rate for people 20,0
aged 25-29 years
0,0
United
Denmark
Germany
Italy
Latvia
Greece
Slovenia
Slovakia
Spain
Romania
EU 28
France
Poland
Bulgaria
Latvia
Slovenia
Slovakia
Greece
Romania
Spain
France
EU 28
Lithuania
Poland
Italy
Bulgaria
2006 2014
Source: http://ec.europa.eu/eurostat.com
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United
people, and also to make a ranking to see
Denmark
Germany
Latvia
Greece
Spain
Slovenia
Poland
Slovakia
Romania
EU 28
France
Italy
Bulgaria
Spain 6 14 7 9 7
Italy
Denmark
Germany
Latvia
Slovenia
Slovakia
Greece
Spain
France
Romania
EU 28
Lithuania
Poland
Bulgaria
France 1 9 4 5 34
Italy 4 13 6 8 6
Latvia 14 5 12 10 89
2007 2014 10
11
Source: http://ec.europa.eu/eurostat.com 12
Lithuani 15 6 11 11 13
The increasing values for the number of a 14
Poland 10 7 13 10 89
tertiary education graduates have a possible 10
negative aspect the decrease of the 11
credibility of the diploma. 12
According to the above graphic, we can Romania 15 4 14 11 13
conclude that almost in every country 14
Slovenia 9 12 8 10 89
included in the analysis, the number of 10
graduates is bigger in 2014 than in 2007. The 11
only country in which the number of 12
graduates is smaller in 2014 than in 2007 is Slovakia 8 11 10 10 89
10
Spain. If we take a closer look at Romania
11
we can see that the number of higher 12
education graduates increased with 5.2 pp, United 11 2 3 5 34
fact that strengthens the idea that the signal Kingdo
of the diploma is getting dilute. The future m
employers have to seek for alternative ways Source: http://ec.europa.eu/eurostat.com
to signal their productivity and their By using the rank sum method we do not
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obtain a very clear ranking due to the Considering that our main focus in this
equality of the R medium, a lot of countries paper is the unemployment phenomenon, we
have assigned the same rank. assigned the biggest factor to this index (0.6).
If we apply the second ranking method, The two other indexes have the same
we can conclude that the ranking is more importance, thats why we assigned them the
accurate, with different ranks for each same factors (0.2).
country. This second method of ranking has
also a disadvantage all the indexes included Table 3. The real rank method
in the analysis have the same importance, Countr Ri Ri Ri Med Ra
they receive the same weighting factor (1). y Infla Unemplo GD ium nk
tion yment P rank
Table 2. The relative distances method rate- rate 25- per
Country K K K K Ra 29 years- capi
Inflati Unemploy GDP medi nk ta+
on ment rate per um
EU 28 2.896 4.026 4.219 3.839 5
rate 25-29 capit
years a
EU 28 1.046 2.23 0.599 1.118 6 Bulgari 10.74
a 2 4.349 8 6.358 13
Bulgaria 1.236 2.36 0.127 0.719 15
Denma 1.651 2.372 1 1.953 2
Denmark 1.016 1.56 1 1.165 5 rk
Germa 1.222 1 2.829 1.410 1
Germany 1.005 1.00 0.772 0.919 10 ny
Greece 10.73
Greece 1.037 6.69 0.357 1.354 2 2.535 15 6.153 8 15
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5. References
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Gutu Ioana
Alexandru Ioan Cuza University, Iasi, Romania
gutu.ioana@yahoo.com
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protect the nationals, the environment and the EU and US share a long lasting trade
public services. relationship, due to which they reached to
adopt many common values, like promoting
4. The impact of TTIP over third countries human rights, adopting a transparent manner
economies of governing reflected in the markets
characteristics, which are well determined
Free trade between big economies has and enjoy a free and fair competition.
bigger effects than trade deals between Ultimately, the EU-US relationship values
smaller economies. [5] TTIP is designed to the protection of peoples rights at work and
benefit not only the parties EU and US, but also respect and obey the environmental
all the economies worldwide. Regarding the rules. These aspects stand on the base of
advantages, reaching on an agreement with TTIP that will moreover include areas
the US, TTIP would create jobs and boost regarding the global trade that are not
EUs influence in the global trade. covered by the World Trade Organization
The European Union and United States (WTO), such as competition policies, the
share the largest bilateral trade relationship in trade role in promoting sustainable
the world, meaning that they represent the development and free access to energy
top export markets one for another. Agreeing markets. TTIP also proposes the protection of
over TTIP would make especially for the people and planet by ensuring commitment to
smaller companies to be easier and cheaper international trade rules while taking into
to export in the US, import goods and consideration the protection of endangered
services and obtain investments from the US. species, the environment as a whole along
In March 2013, the European Commission with peoples health and the working
ran an independent study in order to outline conditions. TTIP proposes the idea of a rule
the benefits of the EU-US trade agreement, that would prevent weakening each sides
not only for the two trading economies, but standards in order to lower the costs of
on a global level. It concluded that TTIP production and delivery and to protect the
would generate growth by creating jobs and existing regulation and amend it by inserting
help the small EU companies to compete novelty and refining quality.
internationally and encourage them to Agreeing over TTIP rules and regulations,
innovate. would imply a better value of the products
Increasing the investment level, it would and services along with an increased variety
result into an automatically increase in the of choices on a smaller cost. These aspects
EU -US flexibility on the international would help companies to compete globally
markets. TTIP proposes stable and permanent while making their final products and deliver
rules regarding trade, granting the EU with the services in more favorable conditions.
the certainty towards US investors, altogether
resulting in an increase of certainty and 5. Concerns over TTIP agreement
diversity of energy sources in Europe. In this
respect, US investment in the EU would TTIP is addressed not only to people in
increase and offer a new infrastructure the the EU and US, but also to the ones across
European economy needs. the Globe. Considering this issue, there are
In regard with the global trade, TTIP concerns raised in regard with international
would encourage developing new regulations standards, public services or investors rights.
by working internationally with regulators, Companies making business in EU or US
achieve standards, update the existing have strict standards to meet in areas like
regulatory EU-US frame and assemble a new environmental protection, food safety or
set of high standards, creating a basis for the peoples working conditions. One of the
international regulators. Due to the fact that problems when exporting from one side of
EU-US trade accounts for about 40% of the the Atlantic to the other consists in standards
global trade, enabling the new approach that are the same both in EU and US, but the
consisting in rules and regulations, would rules that apply it are different. TTIP
determine states across the globe to adopt proposes the uniformisation of rules into this
similar behaviors. [6] area, so the costs of exports from EU to US
and vice versa to be cut and the trade activity
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encouraged. TTIP would protect the existing 6. The process of the 9th Negotiation
high standards by sheltering the EUs Round
regulators independence, endorsing the
precautionary principle and ensuring the During 20-24 April 2015, in New York,
national governments rights to pass new New York, EU and US negotiators joined
laws in the future in order to protect people. together in order to discuss about the ninth
TTIP would also rule in the area of public negotiations round of TTIP, not long after the
services, like hospitals and schools, by Congressional Trade legislation and the
ensuring that governments will still be able to Trans Pacific Partnership (TPP) debates took
run these services by using their own national place. Partly, there were discussed market
rules and customs. access issues surrounding tariffs and
Altogether, EU countries agreed over government procurement, but most of the
1400 agreements in order to encourage emphasis was on the regulatory cooperation
foreign investment. The preset rules grant and rules chapters on TTIP. [7]
overseas investors with certain rights, EU and US are still in disagreement over
through which may be named Investor State approaching regulatory text. EUs concerns
Dispute Settlement (ISDS) which deals with mostly regard with creating a mechanism for
unequal treatment as the nationals. In a engagement between governments
certain case, ISDS grants the investor with regulatory bodies while the interest of the US
the right to ask an international arbitrator that focuses more in establishing good
in the case of unfair behavior, makes the regulatory practices obligations. [8]
government to pay a compensation. On Market Access, the discussions have
TTIP aims to improve this system by continued on subjects like tariffs, agriculture,
defining unfair treatment more clearly and trade in goods and public procurement,
strengthen EU governments right to without covering the services area, for which
regulate. reason in the 10th negotiations round an
TTIP implies three main stages in exchange of revised offers will be presented.
negotiating, namely mandate, negotiation and In the tariffs negotiation area, a product
decision. The first step implies the review of the tariff offers was carried out,
negotiation of EU Governments with the granting both sides with the possibility of
European Commission that has the attribute explaining the rationale behind the treatment
of being the EUs civil service. This process of categories in the presented offers. The
implied guidelines given by each of 28 agriculture subject included discussions
Governments of the member states to start where issues like wine and spirits tariffs were
the negotiation in July 2013. The next step is touched. Trade in goods negotiation resulted
the longest in time, negotiation of trade deals in narrowing differences between parties
involving in certain cases, several years. In proposals including waiver of customs duties,
the case of EUs TTIP Team, negotiation remanufactured goods and import/export
involves meetings with the United States licensing. The Public Procurement area
Trade Representative team of negotiators, covered two days of technical discussions
swapping written proposals and drafting final where there were clarified the existing
results. The next step implies both EU market access commitments. The EU and the
governments and a Member of the European US are supposed to use a combination of a
Parliament (MEP) to take a final decision positive list approach, which the EU
that comes with a double democratic traditionally uses, combined with a negative-
guarantee. list approach mainly used by the US. [9]
The talks started in June 2013, continuing The Regulatory cluster covered all the
with nine negotiation rounds with the US horizontal aspects like sanitary and
counterparts and backed off with phytosanitary measures (SPS), technical
consultations and events designed for the barriers to trade (TBTs) and Regulatory
stakeholders and the public, that took place Coherence, and covering in depth all the nine
both in between and during negotiations. sectors provisioned by the regulatory pillar.
Following the temporal factor, in SPS area of
negotiations, the state of pending applications
was reviewed in addition to discussions
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meant to clear the meaning of the text with the Small and Medium Enterprises
proposals. (SMEs) topic, where the cooperation
On the Regulatory Coherence area, EU provisions are subject to final review. The
presented its revised text on regulatory US argued that GIs are a matter of
cooperation, insisting on clarification of intellectual property (IP), which means that
terminology and identifying priorities for any IP holder is supposed to pay for the
future cooperation. TBT area focused on enforcement of its rights. [11] The state-to-
eliminating duplicative testing for state Dispute Settlement chapter consisted in
manufacturers, supported by the US new constructive discussions, aiming to establish
proposal that pretends to be added to existing an effective mechanism meant to solve any
language. [10] EU and US continued the possible disputes that might disturb the
discussions on the four areas of Cars Parties workload on the interpretation and
negotiations, focusing on safety rules and implementation of TTIP.
mutual recognition. In the area of Chemicals, An Important element of TTIP would be
two pilot projects made progress, the the rules development, meant not only to
discussions mainly covering clarifications on govern the EU-US bilateral trade
both sides in respect with the future relationship, but to also contribute in
provisions. EU and US assessed the establishing global rules and standards
equivalence of the Good Manufacturing covering interest areas, and also followed by
Practices (GMP) system, process that will be the third countries.
continuously audited by representatives of The next round of negotiations should
the Member States during 2015. On Medical take place on mid-July in Brussels,
Devices area, EU presented its position continuing discussions on the reviewed
paper, and answered to clarifications needed proposals and covering negotiations over the
by the US representatives. The main EU three broad areas TTIP is supposed to cover
objective on Cosmetics area consists the after concluding.
safety assessment methods and the
authorization procedure in the US. 7. Concluding remarks
Discussions continued on the Textile safety
requirements, US showing a special interest The long expected TTIP is a promising
for non regulatory issues in this sector, such political undertaking, meant to benefit both
as tariffs and rules of origin. The Information EU and US, along with the third countries.
and Communication Technologies (ICT) This step is only going to succeed mainly if
covered different EU and US initiatives on negotiations in the areas of regulations and
the areas of encryption, e-labelling and e- standards will come to an end. In order not to
accessibility, but a final structure has not be change the actual course of international
agreed upon. In the Engineering negotiation trade and disadvantage as a consequence the
area, both parties representatives discussed third country producers, EU - US negotiated
possible areas of cooperation. As for the standards should also be open for them.
Pesticides, negotiations continued aiming to TTIP open regulatory regime could be
consolidate the basis of collaboration, but beneficial for the global trade, mainly due to
have not made considerable progress. the fact that it represents a major trade
Rules area of negotiation covered six agreement designed to integrate both sides of
subjects. On the Energy and Raw Materials, the Atlantic economies, as long as third
EU and US worked in making a list of parties.
possible areas to be covered in TTIP. Regional economic integration is
Customs and Trade Facilitation area, further supposed to increase the economic activity
progress was made related with the and trade between EU and US, by stimulating
consolidated text. Intellectual Property trade through mutual recognition of product
Rights (IPR) were touched trough two standards and regulations.
proposals submitted by the EU, followed by The potential effects of the
technical questions and updated on the abovementioned trade deal occur under the
corresponding legislative process. Both sides influence of three main characteristics the
had difficulties when discussing about enormous sizes of both involved economies,
Geographical Indicators (GIs), in opposition
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Mihai Mihaela
The Bucharest University of Economic Studies
mihaela2173@yahoo.com; mihaela.mihai@mk.ase.ro
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in Korea NEET is about people, age 15 to 34, the inclusion of a person in a category we can
who abandoned school, are unemployed, are consider NEET o composite marker which
not seeking a job, are not married and have captures in its essence the complexity of the
no family. [3] phenomenon.
Depending on the adopted definition, at Figure 1 - The heterogeneity of the NEET
european level, NEET includes youth age 15 population
to 24 or 15 to 29.
The lack of an international approved Source: Eurofound (2012)
definition and big disparity between
attributes makes comparison between
countries difficult worldwide or in UE. Conventionally
Because of this, in the last 10 years, unemployed
international organizations such as the
European Commission or OECD have started
to create and put in practice their own Voluntary
definition of NEET to better make Unavilable
NEETs
comparisons between countries.
According to Eurostat [4], the NEET NEETs
marker is about the 15 to 24 group age. For
analytic purposes is classified like this:
- based on sex and age group: 1 to 19
years, 15 to 17 years, 15 to 24, 15 to
29, 15 to 34, 18 to 24, 20 to 24, 20 to Opportunity-
Disengaged
seekers
34 and 25 to 29 years of age.
- based on labour market status:
unemployed or inactive;
- based on education level: at most the 3. NEET analysis in UE countries
lower secondary level or at least the least the
higher secondary level. In todays world is education still
Statistically speaking, the NEET marker important or not?
is about a very heterogeneous population. Starting with 2009 benefiting from a
The NEET population contains a variety of higher education is no longer a shield against
sub groups and not all the included people unemployment. Furthermore the level of
are vulnerable. According to literature five education in countries such as Italy, Greece,
specific subgroups stand out among the Romania but also Denmark or Finland, is no
NEET population: longer a guarantee that you will find
- the conventionally unemployed, the employment. The risk of unemployment is no
biggest subgroup; longer falling proportionally with the level of
- the unavailable, people with families, education.
who are sick or handicapped; More often than not, in the above
- the disengaged: people not seeking mentioned countries higher education or no
employment and not in school and who are education is same thing where the risk of
not constrained to do any of the above; unemployment among the young is
- the opportunity seekers: youth who are concerned.
looking for work or education but are being At a first glance the two notions are
exploited; similar but they are complementary to each
- the voluntary NEET: youth who travel, other, at european level NEET can be
are engaged in other activities such as art, considered another marker measuring the rate
music, learning. of unemployment.
The five categories identified include a The rate of unemployment is applicable
combination of vulnerable and non- to those with no jobs, who sought
vulnerable, very poor people and people who employment in the last months and are
choose not to work or educate themselves. capable of starting to work in two weeks time
Considering the social economic and It registers the percent of the population
individual factors involved which determine economically active who could not find
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work. Among the young people, the rate of in order to take care of their children.
unemployment can be erroneous considering Its important to emphasize that the
the people giving up their jobs to return to heterogeneity of the NEET population needs
school or those who decide not to seek to be considered when policies to re-engage
employment. Economically speaking, in both the NEET on the labour market or in
cases, these people become inactive which education.
makes them irrelevant in determining the rate The different needs and characteristics of
of unemployment. the different subgroups must be taken into
While the conventional unemployed are consideration and a one size fits all approach
prone to become a vulnerable group that must be avoided. Only an approach based on
suffers from a lack of available jobs, the needs of the various subgroups will be
opportunity seekers are less vulnerable as a able to successfully re-integrate NEET.
group and come from a more privileged According to Eurostat data from 2014, the
background they voluntarily decide to remain european NEET average rate for youths age
outside the labor market and the education 15 to 29, is 15,3% (Figure 2).
system in order to withstand opportunities.
30,0
24,0
25,0
21,8
20,7
25,0
19,9
19,5
18,2
18,1
20,0
16,4
15,5
20,0
15,3
15,2
14,6
14,1
13,8
13,5
13,4
13,0
12,9
12,5
12,1
15,0
11,8
15,0
9,3
8,7
10,0
7,8
7,3
7,2
10,0
6,5
5,0
5,0
0,0
0,0
Republic
Cyprus
Romania
France
Malta
Finland
Hungary
UE28
Latvia
Austria
Denmark
Greece
Spain
Italy
Croatia
Poland
Germany
Bulgaria
Ireland
Slovakia
Slovenia
Netherlands
Portugal
Belgium
Luxembourg
Estonia
Lithuania
Sweden
Kingdom
Greece
Slovakia
Spain
UE28
Latvia
France
Austria
Italy
Romania
Finland
Denmark
Hungary
Netherlands
Bulgaria
Croatia
Cyprus
Ireland
Poland
Belgium
Slovenia
Germany
Estonia
Luxembourg
Lithuania
Malta
Republic
Portugal
Sweden
Kingdom
Czech
United
Czech
United
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Figure 3 - Trends in NEET rates, by age and gender, 20062014
25,0
0,0
2006 2007 2008 2009 2010 2011 2012 2013 2014
25,0
19,9
19,6
19,5
19,3
18,9
20,0
16,5
15,7
14,8
13,2
15,0
10,0
5,0
0,0
2006 2007 2008 2009 2010 2011 2012 2013 2014
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30,0
24,6
24,1
24,0
23,4
23,2
23,2
23,1
22,9
22,1
22,0
25,0
19,9
19,6
19,6
19,5
19,3
19,0
18,9
18,9
17,6
17,5
17,3
17,0
17,0
16,8
16,6
16,5
16,5
20,0
16,2
15,7
14,8
14,8
13,9
13,8
13,3
13,2
11,6
15,0
10,9
10,4
10,4
10,3
10,1
9,9
9,9
9,7
9,0
10,0
5,0
0,0
2006 2007 2008 2009 2010 2011 2012 2013 2014
6. Conclusions
7. Acknowledgement
8. References
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Abstract
Traditionally, the organization of the
The maritime activity, an important facet maritime transport activity was based on the
of the global economy, should be governed distinction between the ship's master and the
by rules that ensure the safety of shipping other persons on board. In this respect,
and of the people on board vessels. In this Article 2 of the Convention no.22/ 1926 on
sense, the concerns of the international the employment of seamen, adopted in
organizations consist in developing rules that Geneva, at the Conference of the
ensure an appropriate training level to the International Labor Organization, provides
seafarers. In addition, they also aim at that the term seaman includes any person
standardizing the regulations applicable to engaged or employed in any capacity on
the seafarers working on vessels, regardless board any vessel, except the master.
of their flag. The distinction made by the uniform
legislation is justified in terms of the tasks
that the commander has on a vessel. The
master of the vessel includes every person
Keywords: transport, vessel, seafarer, flag, having command and charge of a vessel. The
labor master of the vessel is the person who
J.E.L. classification: K 10-General assumes the technical and commercial
voyage. The master is vested with authority
over the other people on board the vessel,
1. Introduction ensures discipline on board and has the
power to investigate any action that could
The protection of the persons who work endanger the safety of the maritime voyage.
on board vessels has imposed finding At the same time, the master of the vessel has
solutions in order to assure employment the competencies of a registrar. The
relationships within a uniform legal originality of the status of master imposed
framework. Compared with the persons who thus a differentiated regulation of the powers
work in other sectors of the world economy, that he/she is vested with (see, for example,
the personnel on board vessels assume other the provisions which highlight the role of the
obligations and responsibilities. For this vessel master, provided by art. 72-83 of G.O.
reason, it is often stated that these persons no.42/1997 on maritime transport and inland
obligations assumed under the contract of waterways, republished in the Official
employment exceed the limits of private law Gazette no. 210/2004, as amended).
[1]. The legal regime applicable to the The notion of seaman, as defined by the
persons on board vessels is circumscribed not Rome Convention, makes no distinction in
only in national regulations but also in the relation to the professional training or
uniform ones, permanently adapted to this qualification of the persons concerned. In this
activity, with significant importance to the sense, the term seaman includes any person
world economy. Furthermore, the on board of any vessel who, on the
competitiveness on the global market shipowners account, carries out any activity
requires the constant revision of the existing during the sea voyage. Nevertheless, a certain
legislation and its alignment with the distinction is needed between these persons,
international standards. in relation to the activity that each one
carries, according to the nature of the
2. The notion of seafarer
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functions carried on board. Thus, the notion place, the connection of the employment
of seaman or seafarer may designate both the relationship with the European Union, the
person exercising nautical functions, and the professional activity carried on a vessel
person performing other activities on board registered in a Member State, is very
of the vessel. Bypassing the traditional terms important.
of sailor or navigator, the provisions of the The international dimension of the issues
current legislation designate the persons on involved in the recruitment and remuneration
board of a vessel by the term crew, which of seafarers has always been at the center of
encompasses both the seamen and the the issues tackled by international
auxiliary staff (art. 53 of the G.O. no.42 / organizations. Meanwhile, their concerns
1997 on maritime transport and inland focused on the performance of safe sea
waterways interior). The category of transport, enabling the protection of human
Romanian crew includes those persons who, lives and of the environment. Thus, under the
depending on their professional training, can aegis of the International Maritime
exercise nautical functions on board of a Organization, in 1978, there was adopted the
vessel. International Convention on Standards of
Training, Certification and Watchkeeping for
3. The law applicable to seafarers Seafarers (ratified by Romania by Law
no.107/1992, published in the Official
The shipping activity is essentially Gazette no. 258/ 1992, hereinafter the STCW
international. The position of seafarer may be Convention). The adoption of the STCW
held by persons of any nationality, the Convention meant the development of
essential condition being related to their international uniform rules on the seafarers
professional competences (art. 52 of G.O. training level, so that the sea transport would
no.42/ 1997). be carried out safely and protect the
In accordance with the international environment [3]. At the same time, there was
private law, the law applicable to seafarers is sought the permanent adaptation of the
the law of the vessels flag, unless the parties professional level to the requirements of
have chosen another law (art.2621, let. b, the modern navigation techniques.
Civil Code). The law of the vessels flag By ratifying the STCW Convention, the
shall be applied as territorial law. A solution States have assumed the responsibility to
to the same effect is also found in the harmonize their national legislation with the
European legislation, which provides that a international standards on the seafarers
citizen of a EU Member State, who carries certification, education and training. In this
out activities as an employed on a vessel regard, it is noted that Romania has always
flying the flag of another Member State, is adapted its national legislation on the
subject to the law of that State (article 13, standards of seafarers training, concurrently
para. 2, let. c, the Regulation (EC) no. with the amendments to this Convention
1408/71 on the application of social security (amendments ratified by Romania by G.O.
schemes to employed persons, to self- no.122/2000, published in the Official
employed persons and to the members of Gazette no. 430/2000 and by the Order of the
their families moving within the Community, Ministry of Transport no. 49/2012 published
published in the Official Journal L149/1971/ in the Official Gazette no. 122/2012).
Official Journal L28/1997). In applying the Initially, the international patent and
provisions of art. 13, paragraph 2, letter c of certification standards of seafarers have been
the Regulation (EEC) no. 1408/71, under the transposed into the European law by the
jurisdiction of the European Court of Justice provisions of Directive 2001/25/EC
[2], it is noteworthy that the flag law applies (published in the Official Journal L136/2001,
when the vessel flying the Community flag now repealed), which provided that the
also operates outside the European Union. training of the seafarers from the Community
The fact that the person carries out his/her should at least correspond to the
activities on a vessel flying the flag of a requirements adopted internationally by the
Member State and operating outside EU STCW Convention. In other words, in order
territory does not influence the applicable to improve the shipping safety, it was
law. Regardless of the vessel's operating appreciated that the minimum level of
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training of the seafarers from the Member fragmentation of the legal rules applicable to
States should meet the international standards the employment of seafarers.
adopted by the STCW Convention [4]. Thus, Internally, in its original form, G.O.
by adopting the Directive 2001/25/EC, there no.42/1997 provided for the employment of
was ensured the implementation of the seafarers under the labor law, by an
European law provisions of the STCW individual employment contract. The
Convention. At the same time, the Directive situation has changed following the
has given expression to the principle of the ratification of the Maritime Labor uniform
free movement of persons and services regulations (by G.O. no.16/2000, published
through the mutual recognition of the in Official Gazette no.34/2000, Romania
certificates of professional competence ratified a number of international
awarded in the EU Member. conventions governing maritime labor).
The seafarers professional qualification Therefore, at present, the legal rules
and its recognition in the European governing the employment of seafarers have
legislation were independently regulated by multiple sources. In this regard, the
Directive 2005/36/EC (published in the provisions of the national law provide that
Official Journal L255/2005). However, the the seafarers employment relationships shall
provisions of Directive 2005/36/EC were not be determined in accordance with the
considered sufficient in order to guarantee an national legislation, with the agreements and
equal training level of the seafarers in conventions ratified by Romania and also
different EU countries. This situation, under the collective labor contracts and the
coupled with the need that the level of individual boarding contracts (art.69, G.O.
knowledge and skills in the maritime no.42/1997).
community space should be consistent with In order to ensure the uniformity of the
the international norms and standards laid provisions governing the work in this area of
down by the STCW Convention, as amended, special importance in the global economy,
led to the repeal of Directive 2001/25/EC and the International Labor Organization has
to the adoption of a new regulation. Directive proposed and developed a unique regulation
2008/106/EC (published in the Official of the labor relationships in the maritime
Journal L323/2008) was thus adopted; it field, i.e. the Maritime Labor Convention
states that the minimum level of training for (adopted in 2006, in force since 2013,
seafarers, citizens of a EU Member State, hereinafter the MLC Convention).
should rely on the training standards adopted The process initiated by the
at the international level by the STCW International Labor Organization in 2001
Convention. In addition, regarding the aimed at developing a single and coherent
recognition of the qualifications acquired in a instrument that ensures uniformity, and at
third state-party, Directive 2008/106/EC updating the rules and principles contained in
provides that this recognition is possible international labor regulations (see the
when the qualification was obtained in a Preamble of the MLC Convention). The
State Party to the STCW Convention, State MLC Convention is a true charter of the
which, under the assessment of the Maritime rights of the persons on board a maritime
Safety Committee of the International vessel, covering, in its five titles: the
Maritime Organization, complies with the minimum requirements for seafarers to work
provisions of the STCW Convention. on a ship (Title I of the MLC Convention);
conditions of employment (Title II of the
4. The recruitment and employment of MLC Convention); accommodation,
seafarers recreational facilities, food and catering
(Title III of the MLC Convention); health
Due to the developments in protection, medical care, welfare and social
international trade relations, in the field of security protection (Title IV of the MLC
maritime labor, the International Labor Convention); issues concerning the
Organization has developed a series of compliance and the enforcement of the
international conventions governing various provisions stipulated (Title V of the MLC
aspects regarding the work performed by Convention). Overall, this international legal
crews. This process resulted in the instrument guarantees decent working and
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living conditions on board vessels, regardless ratification of the MLC. In this regard, there
of their flag. was adopted the Directive 2009/13/EC
The need to unify the regulations (published in the Official Journal
concerning maritime labor was supported by L124/2009), which aligns the European
the European authorities [5]. Thus, a special legislation to the international standards
contribution in the drafting of the MLC required by the MLC Convention, by
Convention was brought by the European establishing common and fair conditions for
Commission, which had considered that the all vessels and their staff.
adoption of the minimum standards of
maritime labor would be likely to eliminate 5. Conclusion
the unfair competition in the recruitment and
employment of seafarers. By Council The MLC Convention entered into force
Decision no.2007/431/EC (published in the in 2013.
Official Journal L161/2007), the EU member Romania plays an important role among
states were authorized to ratify the MLC the states that promote the Romanian
Convention. In support of this decision, it seafarers on the international labor market.
was showed that the applicability of the Thus, according to the national legislation,
provisions of the MLC Convention would Romanian seafarers can also be employed on
help promote a decent standard of living and vessels flying the flag of other states. The
decent working conditions for seafarers. At employment may be done on their own or
the same time, it will ensure a fair through authorized legal persons (art. 68 of
competitive environment for all the operators G.O. no.42/1997). The training of Romanian
in the maritime sector (Preamble to Decision seafarers, conducted in accordance with the
2007/431/EC). international standards required by the
Under the provisions of art. 138, STCW Convention, ensures their access to
paragraph 2 of the Treaty establishing the the international market for maritime labor.
European Community, any Community Regarding the working and living conditions,
action in the field of social policy is subject the Romanian seafarers employed on vessels
to the consultation with the social partners, flying the flag of Member States that have
namely with the employers and trade unions ratified the MLC Convention are under the
in the field. Thus, the final decision on the protection of its provisions.
opportunity to align the European legislation The fact that Romania has not ratified the
in the field of maritime labor to the uniform MLC Convention yet could have some
standards established by the new provisions negative effects on the employment of
of the MLC Convention was taken after the seafarers on vessels flying the Romanian
European Commission had consulted the flag. These effects would be felt only if the
social partners (employers and trade unions living and working conditions provided by
in the field of maritime labor). The the Romanian law were not in accordance
discussions between the social partners on with the uniform standards imposed by the
the opportunity to align the European MLC Convention. However, in these
legislation with the requirements of the MLC conditions, the Romanian seafarers can rely
Convention ended with the adoption of the on the principle of priority of the provisions
Agreement concluded between the European of European law.
Community Shipowners Association (ECSA)
and the European Transport Workers' 6. References
Federation (ETF) for ensuring equal labor
conditions, in the maritime field, for [1] Rodiere R., Pontavice E., Droit maritime,
Community seafarers. DALLOZ, Paris, 1997;
In accordance with article 139 of the [2] Jurisprudena Curii de Justiie a Uniunii
Treaty establishing the European Europene. Regimul juridic al marinarilor.
Hotrre CJUE din 7 iunie 2012, in Revista
Community, the European Commission took
de Drept maritim 1/2013, Editura Universul
into consideration the agreement concluded Juridic, Bucureti, 2013, p.148;
by the social partners, and, consequently, [3] Bibicescu Ghe., Transportul de mrfuri pe
established the obligation of Member States mare n comerul internaional, Editura
to provide the conditions necessary for the Sport-Turism, Bucureti, 1983 ;
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Popescu Alina
Ovidius University of Constanta, Faculty of Letters
alinadpopescu@yahoo.com
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the fact that employability is a fundamental professional mobility on the global work
component of the widening participation market since insurance, accounting, and
agenda in tertiary education. Widening banking for example are part of the
participation has to include methods "enabling services" for which the
warranting that most students complete their multinational companies provide an
studies and have a successful transition to the infrastructure [7].
labor market (Croiser 2014, p.15). A problem which university language
The two concepts presented in the teachers often face is low student motivation
previous linesinternationalization and to learn foreign languages. Freshmen usually
employabilitylead us to the main topic of understand the need of learning a foreign
the present paper: the connection between language for prospective professional
tertiary ESP course and the EU Labor Market purposes, they are interested in sitting
is justified by the fact that, nowadays, a good international language exams and graduating
command of English and the ability to use it from the university with a certificate that is
represents a key competence, essential to recognized worldwide, or attending lectures,
increases the educational opportunities of trainings and workshops delivered in a
young people and the professional mobility foreign language. Yet, in the language
of adults. classroom most students seek an escape from
other more career-oriented subjects and wish
2. Tertiary language courses in Romania for more relaxing and fun activities. This can
lead to a conflict of interests between them
Romanian universities should understand and the school authorities. Designing an ideal
the need of foreign language instruction and university foreign language course creates
should offer their students specialist language many problems for course designers and
courses which correspond with the scope of educators, since such courses fall into a
their studies and in the long term give them separate category and are not identical with
an advantage over other university graduates standard ESP courses for adult professionals.
on the job market. First of all, at university, students usually
However, English language courses at do not participate in the selection of content
universities are very specific. On the one of the foreign language syllabus which they
hand, they fall into the category of English follow during the course. They take English
for Specific Purposes, but on the other hand for Specific Purposes courses from the very
the design process does not follow the classic beginning of their studies, though deep down
procedures recommended for ESP courses they feel the need for developing their
whose stages were listed by Hutchinson and General English skills. They are aware of
Waters [6]. their deficiencies and wishes, but it is not
Students who enroll at a university are often that course content is consulted with
not only unaware of their language needs, but them. From the students perspective
very often do not have a vision of what they studying ESP may seem boring and
would like to do in their future jobs, where unattractive, especially at the beginning of
they see themselves in 5 or 10 years time their studies when the course content is too
and what opportunities studying at a specialist and complicated.
university in the European Union member A strictly specialist language course does
state opens for them. Therefore, it seems not seem to be the best option for first year
necessary to shift the heaviest burden of students due to their lack of work experience
responsibility for structuring the language and often too low level of proficiency in
courses at universities onto the shoulders of English. Specialist business topics which are
the educators, but also to arouse in students discussed in Business English textbooks may
the interest in learning foreign languages, to prove too difficult and distant for students
make them aware of the opportunities for and therefore may demotivate them and
developing language skills at and outside reduce their enthusiasm for language
school for mobility purposes such as the learning. Much better results could probably
Erasmus programs we mentioned earlier. In be achieved by combining Special English
the long term, language skills will help future courses with General English at least in the
graduates with their career planning and first semester. During this time students
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would get a chance to settle down at can treat students as experts who can explain
university, level off deficiencies, and get a the intricacies of some specialist terms. The
better idea of university requirements. teachers will then fulfil the role of foreign
The role of the university language language experts, while the students will use
teacher should not be underestimated here. this language to deal with doubts concerning
Many experienced ESP teachers, who have the subject matter. Otherwise, the ELP course
taught different groups of learners at a range will evolve into Introduction to Business
of institutions, have never been trained at classes during which the teachers role will
business before the beginning of their be to teach Business in English and not
teaching careers and had to gain the English for Business.
knowledge of the subject matter themselves. The above element of the course design
For that reason they have a good process is especially important in the case of
understanding of the needs of students at English for Business Purposes (EBP)
initial stages of their business studies and courses. Offering the students a strictly EBP
eventually become successful course course from the very beginning seems
designers. They are also good advisors on problematic. Secondary school graduates
what teaching materials to select as they have who start studying business usually have a
an overview of various textbooks which are very limited knowledge of economic
currently available on the market and have an concepts. It would be extremely difficult to
idea which of them will work with pre- talk to them in a foreign language about
experienced students, with students who are macro-economy or marketing when they
shy, with students who like discussions or have not gone through these topics in their
with students who need more practice in native language yet. The situation may
writing or grammar. In the case of new dramatically change for the better after the
publications it is, however, advisable to pilot first few months of their Macro-economy
test materials before adopting them as course which is always offered at the
leading course books. beginning of economic studies. Therefore, it
is advisable for teachers to spend the first
2.1 Towards Content and Language semester of a university EBP course
Integrated Learning discussing general business topics related to
economy, e.g. employment, types of business
ESP courses at universities, by definition, organizations, ethics or finance, before
evolve towards not only language, but also exposing students to specialist business
content teaching. Therefore, the overall English. The early stage of an EBP course
studies curriculum which the students should also be devoted to communication and
participating in an English course have to writing skills, i.e. interpersonal skills, such
follow must form the basis of the ESP course conversation, discussion, presentation,
syllabus. Teachers responsible for course negotiation, persuasion or summarizing, or
design have to get acquainted with the details business writing, such as business letters,
of the curricula of the study programs which memos, CVs, which every student will need
students in the language groups in question in his/her professional career after
will pursue, information of this kind being graduation. At later stages of the course,
easily obtained from the university website specific business topics and the language of
where studies curricula are uploaded. business can be introduced, such as the
Combining the content of the foreign language of company, as at that time students
language course with the content the students will not only have sufficient communication
will study during classes and lectures in other skills, but will also have already earned their
subjects is vital. Students will be able to base credits for respective subjects in their native
on the knowledge they acquired earlier in the language. Therefore, course designers should
course of their studies and it will help avoid always keep in mind that ESP/EBP courses at
situations when they hear about some universities cannot function in isolation from
business or legal concepts for the first time the curricula of other subjects the students
during their English classes. It will help learn.
language teachers feel less intimidated, as
at later stages of the language course they 2.2 Study skills aspects in the ESP syllabus
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constraints such as the large size of groups, an opportunity by, for example, setting an
the small amount of time available, the lack examination center at a university, and
of appropriate teaching materials or the encouraging them to sit certificate
teachers lack of specialist training [10]. examinations will certainly benefit them not
Nation and Macalister postulate that during a only in the form of an international certificate
needs analysis the nature of the learners, the which can supplement their diplomas and
teachers and the teaching situation should be CVs, but also as a huge motivator to learn.
taken into consideration. Modern language materials can be of
A positive consequence of carrying out a great assistance. Nowadays universities can
needs analysis will be the fact of involving run foreign language classes with the use of
learners in the syllabus negotiation process materials accompanied by CD ROMs with
and letting them feel responsible for it interactive workbooks, listening materials in
Some aspects of the present needs mp3 format, vocabulary games and quizzes,
analysis which are significant in the case of films, etc. Students should be encouraged to
ESP courses at universities, such as the learn individually as they usually have access
identification of students likes and dislikes to computer laboratories where they can
concerning their present situation in the practice foreign languages on companion
classroom and the learning process itself, can websites designed specially to support the
be successfully researched during the course textbooks used in the classroom.
by means of short questionnaires carried out New technologies should not be ignored
at the end of the class with a few True / either. Most universities offer their teaching
False statements such as: I like working in staff and students the possibility to include
groups; I like role-plays/acting out elements of e-learning in the process of
scenes/simulations; learning grammar is teaching and learning. Such opportunities
easy; I have been active today, etc. Such cannot be wasted. E-learning components or
mini-questionnaires will provide the teacher blended course give the students a possibility
with immediate feedback and are probably to systematize their knowledge by, for
more reliable than the results on one big example, making notes from their classes in
questionnaire administered before the electronic form and uploading them to the
beginning of the course when the students online component of the course, expand their
may not be aware of what the activities they knowledge by offering them extra practice in
are asked about look like. the language studied during classes, and
allowing them to publish their own work,
3. Conclusions and recommendations such as presentations, online. By means of e-
learning teachers can recommend to their
To conclude, as has been postulated students successful websites on which they
earlier, ESP courses at universities should be can develop their knowledge of the language
synchronized with curricula of other subjects they study using the attractive form of games,
and should evolve into Business English quizzes, podcasts, films, online lectures,
courses as soon as students gain some Wiki, blogs, etc. Foreign language teachers
knowledge of business matters at lectures and can also motivate their students to tandem
classes in their native language. learning by pairing them with students from
A highly motivating factor may be an other countries interested in learning the
examination which all students are required same foreign language and encouraging them
to sit at the end of the ESP course. Students to exchange e-mails or chat on Internet
generally approve of the idea of graduating communicators or discussion forums.
from a university with an international Universities can also widen their offer of
certificate confirming their knowledge of lectures in foreign languages for their
professional English at a given level of students. Such courses would definitely
proficiency. In the case of business skills, attract many more foreigners to study in
there is one Business English certificates Romania, but could also give Romanian
which seems to be most popular at present: students extra opportunities of exposure to
BEC (Business English Certificate) offered foreign languages at the academic level at
by University of Cambridge ESOL their native universities. To sum up, language
Examinations. Providing students with such educators and foreign language course
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Schipor Constantin
University "Alexandru Ioan Cuza"
Doctoral School of Economics and Business Administration
constantin.schipor@ymail.com
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relatively homogeneous structure obtained decline in gross domestic product per capita,
through collective bargaining. with an average of 89%.
2. European social models and the Figure 1 The variation of GDP per
economic crisis capita of Mediterranean model
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be observed the Nordic model has the highest presents an overview of the hierarchy of
average of net income growth in the period models, namely the first position is occupied
2009 - 2013. The average value of the by the Scandinavian model, the second by the
indicator increased by 119.33% for the Anglo-Saxon model, the third of the
Nordic model, 112.08 for Anglo-Saxon Continental model and the last by
model, by 110.82% for the continental, and Mediterranean model.
respectively 106.41% for Mediterranean The information extracted from the
model. The Nordic states are undeniable analysis are useful because it indicates the
efficient, because they recorded the highest direction to be taken into account to optimize
values in all the variables analyzed. the "welfare state" of the other European
social models. In this regard should be
Figure 4 The relative evolution with fixed considered restructuring and efficiency of
base of net income education, improving workforce, labor
150 market and social protection development,
only for people who can not work, nominal
wage growth, and hence the real one. Only
this way can lead to a truly sustainable social
100
welfare state.
2009 2010 2011 2012 2013 The construction of a European social
economic model becomes impetuous
Scandinavian Anglo-saxon necessary because in recent years the middle
Continental Mediterranean class of society has eroded significantly.
Source: Eurostat Now, more than ever, the authorities need to
develop a viable strategy to contain structural
Scandinavian model proved its efficiency and functional elements of a European social
for many years before the outbreak of the economic model. Based on the 4 models
economic crisis. specialists must find socio-economic policy
mix that can build a strong and sustainable
Figure 5 Typology of European social economy. The foundation of such a model
should be composed of educational segment
models
and the specialization of the workforce. The
economy is governed by individuals, and if
they have a powerful foundation of
education, economic growth will be real and
enduring.
I conclude this paper by pointing out that
the Scandinavian model's success should be a
starting point for other models. The measures
Source: Andre Sapir (2006) must be adapted to the specific individual
character of each area separately, so that the
This suggests that both Nordic and Anglo- final results that are obtained must be at least
Saxon models are sustainable, while equal to those of the Nordic model.
Continental and Mediterranean models are
not and must be reformed in the direction of 5. References
greater efficiency by reducing disincentives
to work and to grow[3]. [1] Ebbinghaus, B., Does a European Social
Model Exist and Can It Survive?, In G.
4. Conclusions Huemer, M. Mesch, & F. Traxler (Eds.),
1999, pp. 1-26.
[2] Pardu, A., Pascal, C., Criza datoriilor
Given the analysis and results we can say
suverane cauze i consecine, Colecia de
that the first two models, namely the working papers ABC ul LUMII
Scandinavian and Anglo-Saxon are FINANCIARE, Bucharest, 2013, pp. 297.
sustainable and efficient, while continental [3] Sapir, A. Globalization and the Reform of
and Mediterranean model had low efficiency European Social Models, JCMS, 2006, pp.
and requires fundamental changes. The study 369390.
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have been opened. They use the same tactics Every society educates his own members,
as men. These are human characteristics not (either we are talking about girls or boys) in
male or female, they are not gender issues in its own spiritual rules to ensure proper
science. Women are making a lot of money functioning.
now and it will only increase as their It is not enough just to be part of a social
opportunity increases. They too will take organization, you must also be fully
advantage of the opportunity to go further cut integrated into the organization.
corners, make more money as it presents Numerous studies show that offenders
itself, legal and illegal. They are driven by were treated differently by their parents
the same factors and motivations as men." towards young non-offenders. Through
In order to have an overview of this topic, education, individual acquires the knowledge
below we review the main factors that can to adapt and integrate. All these aspects
influence antisocial behavior. together, sustain the idea that social learning
is related to and influences the criminal
3. Specific factors that influence the behavior of both genders.
manifestation of anti-social behavior
There are many factors that influence an
a. Moral development factor individual's destiny and various studies and
theoretical models indicate that one factor is
Theorists correlate cognitive impossible to determine the destiny of an
developmental stages (Piaget) with individual, so that it becomes criminal.
concomitant stages covering similar moral
development. For starters rules are set by the 4. Connotations of the term antisocial -
"strong" individuals near to the young qualitative study
individual. In the early stages of development
children constantly seeking to gain pleasure Antisocial behavior is described as a type
and at the same time trying to avoid of behavior that seriously deviate from the
punishment. At this stage of development norms of society and is a subset of negative
children take into account the needs of others behavior .
only to the extent that those needs helps them Given that each of these areas of
to meet their own needs. In the following manifestation of human behavior are
period, when the child begins to conform to described differently in everyday language,
social norms, it begins to show respect for the investigation of antisocial we try to
those rights and recommendations represent emphasize some definitions, obtained in the
"authority" in his life it seeks approval research process. In this respect we will
authority. As the child gets older and proceed to inventory and analyze a number
strengthened the moral judgment is of terms - behavioral descriptors - which
motivated by respect for legally established called / defined generally by a single word,
rules and by understanding that these rules specific behavioral manifestation .
are for all to benefit from them. Going Starting with the model provided by the
through these stages universal principles are William J. Goode and Paul K. Hatt (1952)
internalized in the same way even the [3], on the content determination of a notion,
individual is a girls or a boy. from sociological perspective, we performed
an analysis of the significance items for the
b. Social learning factor "antisocial" concept, in order to establish the
notion of generalization of the term.
A child learns how to behave according to Specifically to establish precursors or
the parents' reactions to the way he obeys to predetermined factors in the emergence of
norms. The system of rewards and penalties antisocial behavior we asked groups of
indicates, at the beginning of life, what is and subjects to provide concepts related to
what is not accepted as proper behavior. "antisocial" term and notion associated to
Permanent assignment of rewards and "women's antisocial behavior" .
penalties lead to internalize rules and Using the evocation technique, also
regulations. Using this system children begin known as free association technique, after the
to behave as moral and legal codes prescribe. experimental model for measuring ethical
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stereotypes [4], by extrapolating to the field frequencies procedure was used to determine
of Antisocial Behaviour , on the grounds that the number of occurrences of the term in the
the persons who are labeled as antisocial evocation and were taken into account,
represent a minority, subject to the potential according to the rules of content analysis,
social exclusion, the group of subjects was only terms with frequency > 5 results were
investigated by asking to write the word shown in Fig . 1
"antisocial" (constituting the inductor or
stimulus) and record the first five words Figura 1. Evoked notions for the term
(answers) that come to mind in connection "antisocial "
with this term, passing that way through the
first stage of content analysis by reviewing
stereotypes and connotations of the term
"antisocial". After recalling the terms,
subjects were asked to rank them, ordering
them according to their importance /
representativeness. The the value 1 of an
element represents the strongest association
between the word evoked the term
"antisocial" and the value 5 worst . The
semantic units thus obtained were entered
into a database and processed, after the
identical words, synonyms, or words of
similar semantic were eliminated, being
condensed by assimilation, in terms of a
higher level of generality. In the next stage,
the data were statistically processed and were
ranked by the criteria of the occurrence
frequency, trying to do a classification of
units of meaning, in order to determine
specific areas to contain.
In doing so, two groups of subjects were
included in the research, a total of 333
people, aged between 23 and 55 years,
mostly male, who work in a public institution
responsible for ensuring public order and
whose main professional goal, is the
prevention and punishment of deviations
from social norms . Subjects raised in total Source: data obtained from own research
1542 number of terms, associated to the
notion of " antisocial ". The second batch, consisting of 144
First batch of 189 people, was asked to subjects was required to evoke five terms that
write the term "antisocial" and the top 5 describe "anti-social behavior exhibited by
things that spring to mind on this notion. women" and also to prioritize the criterion
After completing this task, they were asked mentioned above.
to rank the resulting terms , depending on This group tasked with describing anti-
their representativeness for the subject of social behavior exhibited by women evoked
evocation, indicating to them that the value 1 640 words, the phrase "anti-social behavior
indicates the strongest association between exhibited by women", giving meaning and
the word evoked the notion of antisocial and direction to the evocation . The terms thus
5 the lowest. obtained were also subjected to frequency
There were collected 902 terms, analysis to notice the number of occurrences
associated to the word "antisocial", terms of terms associated to the notion.
which were placed separately in a database
and subjected to statistical calculation to Figura 2. Evoked notions for the phrase
analyze their characteristics. SPSS/ "anti-social behavior exhibited by women"
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Stefan Liviu
University of Economics Studies Bucharest
Stefan_2L@yahoo.com
Punic Mihai
University of Economics Studies Bucharest
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The need for new approaches and fmanciar impact findings , findings on
concepts assimilation of European the results of the assessment of
public external audit has led to a new management systems and internal
legislation which generally contains the controls of the audited entity and
basic elements of framing the Court of recommendations deficiencies found
Auditors in the category of supreme and improvement activities.
audit institutions , organized as " Court The Court provide better information
of Auditors driving whose principle is to Parliament and the deliberative
based on collegiality of the members authorities of the administrative-
appointed by Parliament. territorial units by sending the relevant
Assuming the Court of Auditors , the reports will be made public, and at the
supreme audit institution , the role that same time establishes the obligation of
lies in the accountability cycle the audited entity's management to take
contributes to sound financial action to recover damages found by the
management of public funds and public auditors Court, failure to do so
property , to provide Parliament constitutes an offense. Operation of the
respectively , deliberative public Court of Auditors Audit Authority for
authorities of territorial administrative the funds granted to Romania by the
units reports containing information on European Union and SAPARD
their use and management in programs 1SPA and for the funds to be
accordance with the principles of granted in the post -accession body
legality , regularity, economy , established to fulfill obligations
efficiency and effectiveness. assumed by Romania in the process of
Regulation distinctly Court of European integration.
Auditors independence in terms of The Treaty of Accession " Chapter 28
functional and organizational financial -Control " adopted by the
independence , independence of the Romanian Government meeting of 19
members and staff of the Court , the June 2003 , "The European Union calls
financial independence of the Court, to on Romania to follow closely all future
ascertain the formation , administration changes in the financial system in the
and use of financial resources of the European Union to adapt to it own
State and public sector and on the devices , whenever needed. It would be
management of public and private considered control modules set up by
patrimony of state and administrative- the United States in cooperation with
territorial units. the Commission under the Joint Audit
In accordance with the Declaration initiative . to improve national systems
of Lima and the European Guidelines for establishing and managing the
for the application of INTOSAI European Union's own resources".
standards and other relevant auditing ISSAI 100 established the
standards for the public sector fundamental principles of pubic
developed by IFAC and accepted for external audit provides fundamental
application in the European Union, the principles for public sector auditing in
main task of the Court of Auditors in general , and are defined and approved
the public audit public , is developing by ISSAIs.
standards , audit manuals and guides on ISSAI 300 - Fundamentals of
specific areas containing detailed performance audit is based and
procedures for evaluation of develops the fundamental principles of
management and internal control of the ISSAI 300 should be read and
audited entities . The auditors prepare understood in connection with the
audit reports containing mainly
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ISSAI 100, which also applies to the and regulations on measuring and
performance audit . monitoring development performance
indicators and examining the
6. Conclusion procedures used by auditees to
minimize the risks [6].
International and European The national approach.
approach . The Guidelines is presented In Romania , the Court of Acounts
in the INTOSAI [5 ] classification defines public external audit as specific
system as ISSAIs , starting with ISSAI audit work performed by the Court
1000 to ISSAI 2999. The three last which contain mainly , compliance
positions in the ISSAI number audit , financial audit and performance
Corresponding indicated the number of audit . In the Regulation on the
the ISA ( for example , the ISSAI 1800 organization of specific activities of the
ISA 800 and includes the practice Note Court of Auditors and the documents
for ISA 800). resulting from these activities is defined
ISSAI 1000 General INTOSAI as the financial audit work which seeks
Financial Audit Introduction to the to whether the financial statements are
main purpose is to Provide Guidelines complete, accurate and in compliance
INTOSAI members with a with laws and regulations in force ,
comprehensive set of guidelines for the providing in this opinion.
audit of financial statements of public External audit of the National Audit
sector intension. Standards , Regulations and audit
ISSAI 100 presents the definition of manuals specific activity is carried out
public sector auditing and provides the by the Court of Auditors External audit
essential concepts , elements and include: financial audit , performance
Principles That Apply to all public audit and compliance audit.
sector Audits . ISSAI 100 sets out the Harmonisation with the EU acquis
elements of public sector auditing as requires develop their own strategies
well as the Principles That Apply to and tracking the fulfilment of the
public sector auditing , both General objectives set out in their plans,
Principles related to the audit year , and organization of regular checks on the
the Principles related to the different economic and financial activity, as well
phases of the audit process. In this way as performance management and
provides the basis ISSAI 100 Also for research, in order to improve them, bin
the specific Principles and concepts organization marketing, in order to
contained in ISSAIs That is 200, 300 increase the degree of applicability of
and 400 on financial , performance and the research, the registration of
compliance auditing . INTOSAI research results in the special register of
international auditing standards evidence, preparation, approval and
stipulate that public audit includes implementation of accounting policies
examining legality, compliance , to ensure the efficient operation of an
economy, efficiency and effectiveness accounting system capable of
of the management of administrative preventing possible risks that may arise
activities of public entities , in in carrying out the work and to provide
accordance with good management timely, accurate information decision
principles and practices , and makers, development, approval and
addressing the weaknesses identified. implementation of a "quick finance", in
Efficient use of financial resources , which to present the types of supporting
human and otherwise, including documents for the grant of advances,
examination of information systems reimbursement, conditions that
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7. References
[1] ] www.rcc.ro
[2]http://www.eca.europa.eu/Lists/ECA
Documents/FCAM_2012/FCAM_2
012_R [3] Law no. 94/1992 on the
organization and functioning of the
Court of Auditors
[4] http://www.intosai.org/
[5]INTOSAI ISSAI 3000, Performance
Audit Guidlines Guidelines for
performance Audit (series 3000-
3999: ISSAI 3000; ISSAI 3100-
approved 2010); ISA, International
Auditing Practice Statement
[6]Performance Audit Manual Court of
Accounts - approved in 2013
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Voicule Alina
"Constantin Brncoveanu" University of Piteti
alinav06@yahoo.com
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132
Section I
International Affairs and European Integration
***
Subsection 3
Regional Development Strategies
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Babachenko Marina
Odessa National Maritime Academy, Ukraine
kaf_ec_onma@ukr.net
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In this situation, shipyards and the general is returned from the profits derived from the
state of the economy, foreign customers operation of the vessel.
began to show caution and distrust of the Nowadays the shipbuilding of Ukraine is
factories offering under the terms of the on the decline. Meanwhile this sector has a
contracts already overseas demand, so, the lot of unique factors, generated during the
payment of 10% of the value of the vessel time of USSR, owing to which regeneration
with safeguards after signing the contract and of industry could be expected.
90% - in the transmission of the finished Ship building yards use the advanced
vessel [1,11 p.]. engineering of hull construction and
The production of the capacity of the installation of ships machinery.
shipyards in Ukraine during this time was The modern docks, wharfs and deep
downloaded on the average by 25-30%. channels are equipped with the cranes of high
The current state of sea and river lifting capacity.
Ukrainian merchant fleet is characterized by This allows producing the ships of a wide
a number of negative trends: use, from cargo barges to the research
the reduction in the number of merchant vessels. Our shipyard teams are exceeding in
ships, including the national flag; technology performance (welding, painting)
the reduction of the foreign exchange and quality materials used for South-Eastern
earnings derived from the operation of the Asian colleagues, who are the leaders in this
fleet, and hence a reduction in tax sector of economic s..
deductions; The main stream of development in
the active aging fleet, which in turn Ukrainian shipbuilding is innovations:
leads to a limited number of measures of Ship wharf clustering;
native vessels to foreign ports. Marine cluster provides the coordination
The decline in the participation of the of marine transportation and industrial
Ukrainian fleet in the transportation of enterprises with local authorities, scientific
foreign trade cargoes, led to loss of profits, to and education institution of region. It was
strengthen of Ukraine's dependence on the significant to note that system of marine
global freight market and an increase in cluster usage could be an effective realization
imports of transport services. In Ukraine, instrument for deep transformation of marine
there is still no accepted practice, as in many economical system, laid in marine doctrine of
countries, the ship financing installments, Ukraine till 2035.
including the use of the system of the leasing. The methods and models of project
The reason for this is a risk, because of which management are effective instrument for
lending to the shipbuilding industry had not realization of cluster model management in
yet become widespread. The current marine complex of Ukraine. The value
procedure for the formation of insurance system for project organization, where
funds to cover potential losses as a result of marine clusters are part of it, consists of:
credit activity does not allow commercial competitiveness ensuring of marine transport
banks to form the necessary reserves. In enterprise; creation of clauses for scientific
accordance with the laws of reserves to cover results realization; expansion of job growth
possible losses for loans created from net and decreasing of social tension of
profit. And in most European and Asian population in region.
countries, which have developed However, for effective progress of
shipbuilding, the state assumes guarantees for economical cluster systems the access to
loans to commercial banks vessel reliable credit resources is needed. Under
construction or banks lend to the construction this context the mechanisms of financial
of new vessels under a pledge of property of leasing as more effective element of financial
the company that explores them, in the infrastructure could be used as well.
amount of up to 80% of their value on the Clustering improves labor grade of
world market at the rate of 8% loan with personnel, link between science and practice.
payment by installments for 8-10 years. Successful shipbuilding countries are
This allows the customer to pay only 20% sponsoring scientific achievements in this
of the cost of the vessel. The rest of the loan sector from 50% (S. Korea, Japan) up to
100%(China).
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This factor is playing the main role in It could be stated, that the situation on the
competitiveness, and is the basement of market of science-consuming industry, which
growing up of this sector of economic, the ship building applies to, is developing
quality of projects, decrease of cycle of ship toward to the paperless, electronic
building, causing the cost saving. technology: design, producing and operation.
The creation of clusters is not the end in The Information becomes the same resource
itself, but one of effective shape of as any other material actives (machinery,
motivation and mechanisms of equipment, buildings and constructions).
transformation to the way of innovation With the help of the information,
development. management is possible. Information
Implement of manufacturing becomes as a factor of production.
automation; The Ship building is unique sector of
Effectiveness of ship building business is industry. It combines in her final product the
identifying by level of scientific and achievements of miscellaneous sectors of
technical design in connection with complex industries (machinery, instrument-making
preproduction during the ship building of industry and metallurgy) and stimulating
new projects. their development as well.
The main effect from introduction of
automation systems consist in reducing of Conclusions
errors and inconsistence in project
documentation using the checked and The production of the capacity of the
upgraded data bases, reduction hard works shipyards in Ukraine during this time was
and terms of project works, improving the downloaded on the average by 25-30%.
work quality using the optimization, cost The current state of sea and river
reduction for technical preproduction using Ukrainian merchant fleet is characterized by
the complex solution and system concept. a number of negative trends:
The full-scale modernization can the reduction in the number of merchant
considerably improve work efficiency. ships;
For instance, upgrading the plant, the reduction of the foreign exchange;
reconstructing the business-project owing to the active aging fleet.
discrete work of project bureau and Regional authorities provide the growth of
engineering centre the term of tanker vessel employment and reduce social tension in the
build could be reduced for couple of month. region under the condition of effective
IT introduction; functioning of the maritime cluster system.
Corporative information system The essential factor is the real possibility of
development conception, providing activation of small and medium-sized
continuous information support of full life businesses, the implementation of socially
cycle of vessel during the designing, important regional programs.
building, operation and service maintenance, Currently, the world shipbuilding industry
the same as uniform method of information has a considerable fund of software that can
cooperation of owners, suppliers, shippers automate the processes of design and
and shore technicians in domestic ship management of production construction of
building will allow to reduce the costs in ship vessels projects of various classes and
building procedure. purposes.
At present, ship building corporations are The strategic aim of creating the
faced with expansion of cooperation either shipbuilding in Ukraine should be considered
inside of countries or on international scene. intensification of the investment multiplier
During the ship building procedure, shipyard on the basis of the shipbuilding industry
works close to a lot of organizations, for
instance, the owner of vessel, class society, References:
miscellaneous construction bureaus,
counteragents and big list of suppliers. The [1] The Law of Ukraine About the providing of
effective information interchange in such economical experiment in state support of
situation is needed. shipbuilding industry
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Cibotariu Irina-tefana,
Stefan cel Mare University, Suceava, Romania
Faculty of Economics and Public Administration
irinac@seap.usv.ro
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risks or situations that may lead to social 3. Financing through social assistance
exclusion[4]; programs
B. Development of legal framework for
achieving a national, sustainable and Currently, a consistent help in the
effective social quality service tailored to the reconstruction of forms of social support is
needs of different categories of persons in the European funding programs, which are
difficulty; aimed at social inclusion. Development of
C. Promoting public policies for social solutions for the socially excluded through
care of the elderly in the context of EU funds programs and internal may be
accelerated demographic aging process; largely an affirmative answer to the social
D. Institutional capacity development to assistance austerity budget. But often, the
ensure systematic monitoring, evaluation, lack of coherence, communication and
analysis and forecast of indicators of social transparency of European programs focused
assistance and social inclusion and in order to on inclusion, as well as those of local budgets
achieve the strategic planning and diminish obviously their role in the
determining the most effective policies and construction of a specialized, effectively
programs in the field; articulated support in the end. Fragmentation
E. Increase in the social assistance system of policies on endpoints and philosophy of
performance by promoting competence and these programs leads to minor results
quality personnel in the system. compared to the high costs invested in their
development. In addition, the lack of
The main[5] benefits for the period 2015- visibility marks a poor responsibility for
2017 : public funds and deepens corruption in the
State allowance for children system.
Allowances, incentives and support These[6] projects were taken over by
for raising children companies, more or less specialized in social
Rights for disabled persons assistance. Unfortunately, the program
The allowance for family support activities were conducted independently of
Aid for heating each other, with much overlap during the
Social benefits course, and the time for evaluation and
Minimum insertion income monitoring, left only in the closure was
Other social rights totally insufficient[6].
On the expenditure budget for the year There is also[4] the impression, quite
2015 were taken into account the increase in widespread, that Romania, as a whole, is far
the allowance for supporting low-income to use the opportunities it has, of
families by 42 lei per child, increasing the development through European structural
level of investment allowance under funds programs. In the process of accessing
Government Emergency Ordinance no.65 / European programs there are still held
2014 and the increase by 16% of monthly sensitive differences between socio-
allowance and supplementary budget for economic areas / sectors and geographic
people with disabilities[6]. regions of the country. Currently, Romania
Since 2016[6] , under the law of social does not benefit from a diagnostic analysis
assistance no.292 / 2011, will be established by geographic areas of social policies with
the minimum insertion income as the main clear priorities in social and human
form of intervention to prevent poverty, to development; there does not exist a social
guarantee a minimum income for each person map of the issues and directions for the social
in Romania. It will be addressed to low- shaping of communities by European
income families and will ensure, over time, programs. It lacks a global inventory of
achievement of the target proposed in the projects, programs, initiatives undertaken so
National Reform Program, based on the far and ongoing for the social construction of
European Strategy 2020 of poverty reduction Romanian communities and underdeveloped
according to the methodology used in the areas.
Member States of the European Union. These programs at the national level
should be complementary, convergent and to
mutually support each other in the process of
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Increasing individual and collective human cost of the crisis period so far. It will
security through continuous be necessary doubling its active social
community actions, especially in policies supported constantly by policy
communities of marginalized makers. In this regard, the sociological
regions, areas highly vulnerable in perspective and of social support, highlight
terms of social integration. on the one hand, the need for a coherent
Developing social support networks integrated strategy at national level, to
of structured type, centered on needs prevent and reduce disruptive social
to support individuals and groups in phenomena, but also continuous
need, in order to restore normal improvement of social frameworks of life.
integration capabilities in their own On the other hand, Romania needs now,
community. more than ever, the development of local,
Developing effective social services efficient, mechanisms of integration and
to prevent social exclusion and punctual rehabilitation of distressed and
marginalization especially focused common actions oriented towards growth of
on children and youth at risk. individual and collective wellbeing.
Along [10] with the standard public
community activities (housing utilities, good
roads, modern and friendly education 5. References
facilities, health and social security
institutions focused on solving problems, [1] Bistriceanu, Gh., Finanele publice ale
defending and protecting green spaces, Romniei, vol. I, vol. II, Editura Universul
Juridic, Bucureti, 2006;
eliminating pollution of any kind etc.) in
[2] Chirlean, D., Metodele aciunii bancare i
Romania are required those innovative gestiunea finanelor publice, Vol. II, Editura
sectoral programs, for social and human Univ. Al. I. Cuza, Iai, 2008, p.153-160;
changes and human in community in the long [3] http://ec.europa.eu/europe2020/index_ro.htm
run. The new philosophy[11], as mentioned [4] Cioponea, M.C., Finane publice i teorie
repeatedly underlying this option is to create fiscal, Editura Fundaiei Romnia de
a multiple active partnerships involving all mine, , Bucureti, 2007;
relevant actors in the community. Public [5] Drucker, P., Despre decizie i eficacitate,
county, district / local authorities will ghidul complet al lucrurilor bine fcute,
become democratic instrument built of Bucureti, Editura Meteor Press, 1967, 2007;
[6]http://discutii.mfinante.ro/static/10/Mfp/strateg
orchestrating joint efforts in various forms,
bug/STRATEGIA_2013_2015revizuita.pdf
by mobilizing all community actors for [7] Hoan, N., Economie i finane publice,
collective action[12]. Thus, the traditional Editura Polirom, Iai, 2000;
alienation of the civil society will be [8] Jackson, J., Politics and the budgetary
overcome, of the past. There are expectations process, Social Science Research, Volume I,
that can become, over time, reality. It is up to Issue 1, 1997, p.35-60;
our wisdom to competently manage our [9] Manolescu, Gh., Buget, abordare economic
resources and to empower local/ community i financiar, Editura Economic, Bucureti,
development programs to change our daily 1997;
lives. [10] Zamfir, Elena, Asistena social fa n fa
cu societatea riscurilor, din perspectiva
politicilor sociale europene, Revista
4. Conclusions Calitatea vieii, XXIII, nr. 2, 2012, p. 123
160;
Social policies of social assistance, as [11] tefur., G., Proces bugetar public, Editura
they have evolved to date and how they are Universitii Al. I. Cuza, Iai, 2007;
loomed in the future, although helped limit [12] Moteanu, T., Politici i tehnici bugetare,
explosive social phenomena, are far from Editura Universitar, Bucureti, 2004;
providing a satisfactory solution to the social
inclusion of disadvantaged / socially
marginalized individuals and groups.
The economic recovery, whose signs are
yet not visible obviously will not be likely to
absorb in a sufficient time huge social and
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Ciocoiu Cristina-Elena
Faculty of Agro-food and Environmental Economics, the Bucharest University of
Economic Studies, Romania
cris.ciocoiu@yahoo.com
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For this group, all the microenterprises Comparing the results for the two groups,
presented an increase in the net turnover, in terms of the number of staff, once again
most of them showing a significant increase group 1 had a better evolution than group 2,
of more than 100%. In terms of number of with 80% of the microenterprises from group
employees and gross profit, most of the 1 presenting a positive evolution, while only
microenterprises presented an increase. Also, 66% of the microenterprises from group 2
it is important to mention that, according to presented a similar increase. This evolution is
the data, 60% of these microenterprises no shown in Figure 2. It is important to point out
longer fulfilled the requirements of being a here that creating permanent job positions
microenterprise in 2013, the financial within the microenterprise was one of the
assistance received supporting their criteria used by the responsible authority
development. when selecting the project for granting the
A similar analysis was performed for the financial assistance.
group of microenterprises with more than one
project (group 2) and the results are Figure 2. Evolution of number of
presented in the following table. employees (%)
100
Table 2. Evolution for group 2
Net Employees Gross
turnover profit 50
80 66 Group 1
Increase > 2 2 1
100% Group 2
0
Increase < 0 0 1 -20 -34
100%
Decrease 1 1 1 -50
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100% for all the 3 parameters. The is important to mention that the small
microenterprise with 3 projects, all population used in this analysis, namely the
implemented under intervention 4.3 microenterprises from the County of Vaslui,
presented an increase of over 100% in the net is a factor that imposes certain limits to the
turnover and the number of jobs, but analysis. In order to reach more relevant
registered a decrease of the gross profit. The conclusions, it is necessary to perform a
microenterprise with two projects, one larger study covering the entire North-east
implemented under intervention 4.3 and one region of Romania, once the implementation
implemented under another operational of all projects belonging to the 2007-2013
programme, had a negative evolution in programmes is finalized.
terms of the net turnover and number of staff The analysis presented in this paper also
but a positive evolution regarding the gross allows some considerations regarding the
profit. information presented to the public by the
responsible authorities about the projects
4. Conclusions financed under the different operational
programmes. There are some minimum
For Romania, the year 2015 is the starting requirements in this field which are enforced
point for the implementation of the new by the European Union, such as publishing
operational programmes financed by the the list of the names of the beneficiaries of
European Union. Most of these programmes, EU funds, including the title of the project
defining the intervention areas for 2014-2020 and the public contribution to the project [8],
have already been approved and now the but these are not sufficient for performing
detailed implementation rules are being more detailed searches.
prepared. It is important that this process In the case of the authorities responsible
builds upon the experience gained during the of the Regional Operational Programme, they
implementation of the previous 2007-2013 offer a wide range of information about the
programmes. projects financed under this programme on
Within this framework, the empirical the website www.inforegio.ro. The
research performed in this paper focused on information provided is accessible in .xls and
analyzing if the microenterprises from the .pdf formats but also as a GIS map. There is
County of Vaslui that obtained financial no detailed information regarding the
assistance under intervention 4.3 and which payments.
also had other projects financed by the In addition, the North-East Regional
European Union, regardless of whether those Development Agency provides some
projects were financed by the Regional information about the projects implemented
Operational Programme or another 2007- in the region, under all operational
2013 programme (group 2), performed better, programmes. The information is updated
in terms of number of employees, net only up to September 2013 and is presented
turnover and gross profit, than the ones that as a .pdf file.
obtained financial assistance for one project Finally, the Ministry of European Funds,
(group 1). the structure responsible for the coordination
The results of the analysis showed that of the structures involved in the
such a hypothesis cannot be confirmed, implementation of the operational
group 1 presenting a better evolution in terms programmes, also provides information about
of the net turnover and number of staff than the contracted projects for all the
group 2. In the case of the gross profit, group programmes via the online search facility
2 registered a better evolution, but the from the www.fonduri-ue.ro, previously
difference was not significant in comparison mentioned in the paper. The tool does not
to group 1. A possible explanation of this allow downloading .xls files and during the
situation could be that due to the size of the research performed it was identified that one
enterprises, the constraints of implementing of the microenterprises was wrongfully
projects financed by the European Union presented under the North-East region.
could raise challenging difficulties for the In conclusion, there is room for improving
microenterprises, which increase with the the sources of information about the projects
number of the projects implemented. Also, it implemented in Romania in order to make
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5. References
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Frone Simona
Department of Sustainable Economic Development
Institute of National Economy at the Romanian Academy
frone.simona@gmail.com
Frone Dumitru Florin
Faculty of Management, Economic Engineering in Agriculture and Rural Development
University of Agricultural Sciences and Veterinary Medicine
ffrone@hotmail.com
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In practice, this requires that the stocks of consumes 16 tons of materials annually, of
all environmental assets from which the EU which 6 tons are wasted, with half going to
benefits or sources its global supplies are landfill. Trends show, however, that the era
secure and managed within their maximum of plentiful and cheap resources is over.
sustainable yields. The Resource-efficient Businesses are facing rising costs for
Europe flagship initiative under the Europe essential raw materials and minerals, their
2020 Strategy [1] promotes the integration of scarcity and price volatility are having a
resource efficiency in economic, energy, damaging effect on the economy.
transport, construction, agriculture, fisheries Sources of minerals, metals and energy,
and cohesion policies. as well as stocks of fish, timber, water, fertile
Higher and sustained improvements of soils, clean air, biomass, biodiversity are all
resource efficiency performance are within under pressure, as is the stability of the
reach and can bring major socio-economic climate system. Whilst demand for food, feed
and environmental benefits. This way all the and fibre may increase by 70% by 2050, 60%
strategies for sustainable development should of the worlds major ecosystems that help
be efficiently and effectively underpinned produce these resources have already been
[2]. degraded or are used unsustainably.
Therefore, one of the key objectives of the If we carry on using resources at the
National Strategy for Sustainable current rate, by 2050 we will need, on
Development of Romania is the eco-efficient aggregate, the equivalent of more than two
management of resource consumption to planets to sustain us, and the aspirations of
maximize outputs, by promoting a many for a better quality of life will not be
sustainable model of production and achieved [3].
consumption allowing for long-term Therefore, in order to prevent this
sustainable economic growth and unsustainable scenario, we shall need a new
convergence to the average performance of focus on resource efficiency and measure
EU states in resource productivity. progress towards a resource-efficient
The importance of the shift towards a economy more carefully and pro-actively.
resource-efficient and low-carbon economy Besides that, there may be many
in the EU and consequently, in Romania may economic, ecologic and social benefits of
be emphasized by highlighting its restructuring and turning the economy and
advantages, since this process of sustainable industry into a resource-efficient path, since
production and consumption is meant to this will bring increased competitiveness,
contribute to: new sources of growth and jobs through cost
o boosting economic performance while savings from improved efficiency,
reducing resource use; commercialization of innovations and better
o ensuring security of supply of essential management of resources over their whole
resources; life cycle.
o addressing climate change and limiting The principal objective of the roadmap is
the environmental impacts of resource namely improving economic performance
use; while reducing pressure on natural resources.
o creating new opportunities for economic In this context, there are a number of key
growth and greater innovation; productivity indicators, which show how
o increasing EU's competitiveness. society is doing in decoupling economic
A Roadmap to a Resource-efficient development from the use of natural
Europe [3] has defined medium and long resources.
term objectives and the means needed for These productivity indicators are defined
achieving them. The Roadmap should also be as the ratio of GDP to different types of
seen in the context of worldwide efforts to natural resources such as materials, water or
achieve a transition towards a green land, and the lead macro-indicator is
economy, while the main challenges and resource productivity, chosen to measure
actual resource and energy constraints are at the main objective of the roadmap.
present more and more significant. The lead macro-indicator (Resource
As stated in the Roadmap to a resource productivity, RP) has been chosen to
efficient Europe [3], in the EU each person
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measure the progress in the principal sustainable development, the green economy
objective of the Roadmap [3]. and the circular economy, as well as the
Resource productivity is defined as the policies and strategies dedicated to their
ratio of GDP to domestic material objectives.
consumption RP = GDP/DMC. Anyway, a higher RP ratio measured as a
Domestic material consumption measures ratio of GDP/DMC would indicate better
the total amount of material directly used by performance, with growth consuming
an economy, such as biomass products, metal relatively fewer resources.
ores, fossil fuels, non-metallic minerals, In the National Sustainable Development
petroleum resources etc. and is equal to Strategy Romania (NSDS) 2013-2020-2030
domestic material extraction plus imports was stated as an important Horizon 2013
minus exports. National Objective: to achieve eco-efficient
According to the OECD handbook on management of resource consumption and to
measuring material flows and resource maximize resource productivity by
productivity [4] the term resource promoting a pattern of consumption and
productivity may be analysed in a welfare production that makes sustainable economic
perspective and is understood to involve: growth possible and brings Romania
a quantitative dimension (e.g. the quantity gradually closer to the average performance
of output produced with a given input of of the other EU countries [6].
natural resources) and also Unfortunately, as previously pointed by
a qualitative dimension (e.g. the [7], the Romanian economys resource
environmental impacts per unit of output productivity was at the lowest level in EU-27
produced with a given natural resource in the period 2000-2007, far below the EU-27
input). average since, the predominant business foci
An important conceptual aspect is that were not resource efficiency or any other
resource productivity (RP) is no different sustainability concern, but more the relatively
from any other type of productivity (labour, low level of labour productivity and
infrastructure etc.) in that it would contribute benefiting from the predominance of labour-
to growth and jobs although a resource intensive industrial sectors, with competitive
productivity increase would also contribute advantages based on - even though increasing
to a better environment. - the second lowest labour costs in EU-27.
Resource productivity describes the For the EU, the evolution of RP (the
relation between economic outputs in resource-efficiency lead indicator) seems to
monetary terms (Y numerator) and a have been apparently good, in the last years.
physical indicator (M denominator) for Thus, in contrast to the decline in material
material or resource input. consumption, EU-28 GDP grew by 16%
The indicator RP is expressed at the level between 2000 and 2012.
of EU-28 in euro per kg and also as an index As a result, EU-28 resource productivity
based on the year 2000 (at Eurostat), while in (GDP/DMC) increased by 29%, from 1.34
the Romanian NIS System of Sustainable /kg of resources used in 2000 to 1.73 /kg in
Development Indicators, RP is expressed in 2012. However, despite recent improvements
Thousand lei/t, (2005 prices, see Table 1 and in resource productivity, the European
Figures 1 and 2a and 2b). consumption patterns remain resource
intensive by global standards [8].
3. Trends and issues of resource On the other hand, the latest Eurostat data
productivity in Romania show that Romania has a productivity of
resources equal to 33% of the European
We have previously analysed and average. The Romanian economy consumes
concluded in [5] that resource-efficiency, 59% more raw materials than in other
namely expressed by the resource European countries, and this, together with
productivity indicator enabling the the fact that labour productivity and capital
decoupling of resource use and are low in our country, puts us in the last
environmental impacts from economic position in the top of resource efficiency [9].
growth, underpins all the valuable ideal In order to check the validity of this status
concepts of economy and development: and the evolution of the resource-efficiency
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level in Romania, as expressed in the lead- EU countries, for the main indicators of
indicator Resource Productivity (RP), we sustainable development [5].
have made some own data-analysis and However, we may also distinguish here
computations. two important periods of time which may
have put their mark on the evolution of the
Table 1 Evolution and trends of the RP in resource productivity in Romania, due to
Romania, 2000-2012 some different features and trends.
(Thousand lei/t, 2005 prices)
Figure 2a Resource productivity evolution
2000 2001 2002 2003 2004 2005 2006 and trend in Romania, 2000-2006
RP 1,27 0,85 0,93 0,90 0,91 0,87 0,87 (Thousand lei/t, 2005 prices)
2007 2008 2009 2010 2011 2012 2013
RP 0,78 0,66 0,78 0,84 0,75 0,78 n/a
Source: NIS, System of Sustainable Development
Indicators, Objective no 4. Sustainable production and
consumption OP4_1 Resource productivity
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shall analyse in future research, become a 2014 and 2030, and in the meanwhile
sign of a smart, sounder and sustainable Resource Productivity will have improved by
economic recovery in Romania. around 15% by 2030 (by 7% by 2020) at a
trend rate of 0.9% per annum) [10].
Figure 2b Resource productivity evolution As we have pointed in this paper, in
and trend (forecast) in Romania, 2007-2012 Romania, the situation of the resource
(Thousand lei/t, 2005 prices) productivity indicator is more complicated
since here we must reverse the past (2000-
2012) downward trend of the RP.
In the NSDS of Romania, some
preliminary estimation indicated that the
application of adequate economic policy
instruments could result in a 3-4% annual
increase resource productivity during the
period 2008-2013.
Although this may have been an
optimistic scenario, not accounting for the
economic crisis of 2008-2011, our research
shows a trend of slight recovery and increase
Source: NIS, System of Sustainable Development of the RP in Romania after the economic
Indicators, see Table 1 downturn.
These outcomes call for further analyses
It remains to be proved whether this in order to see which are the latest positive
evolution and trend of the resource potential factors of resource productivity
productivity in Romania was a positive effect increase (such as economic restructuring,
of the economic crisis, in the rehabilitation of technological innovation etc.) that should be
economic structure for a smart recovery exploited in the national economy.
which may, if maintained and exploited in
the future, promote a model of sustainable 5. References
development through a decoupling of
economic growth from resource consumption [1] EC COM(2011) 21, Communication from the
in our country. Commission to the European Parliament, the
Council, the European Economic and Social
4. Conclusions Committee and the Committee of the
Regions, A resource-efficient Europe
Using resources more efficiently should Flagship initiative under the Europe 2020
help the European Union and the EU member Strategy;
states (including Romania) achieve many of [2] Frone S., Constantinescu A., 2014, Impact of
the strategic objectives of sustainable technological innovation on the pillars of
sustainable development, EPCE 2014,
development by increasing resource
Supplement of Quality-Access to Success
productivity. Journal Vol. 15, S1, March 2014, The journal
A resource efficient economic is published by the Romanian Society for
development is also the route to the future Quality Assurance;
green and circular economy in the European [3] EC COM(2011) 571 final, Communication
Union (and in Romania), since it allows the from the Commission to the European
economy to create more with less, delivering Parliament, the Council, the European
greater value with less input. This involves Economic and Social Committee and the
using resources in a sustainable way and Committee of the Regions, Roadmap to a
minimizing their impacts on the environment. Resource Efficient Europe {SEC(2011) 1067
final} {SEC(2011) 1068 final};
The projections of future trends (in the
[4] OECD, 2008: OECD handbook on measuring
business as usual scenario) suggest that material flows and resource productivity,
Resource Productivity will continue to OECD Paris, 2008
increase in the EU, but at a slower rate than [5] Frone S., Constantinescu A., 2015. Objectives
in the past. In a baseline projection, GDP is and trends of a resource-efficient economy in
forecast to increase by around 30% between European Union and in Romania,
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Geambazi Petris
Academy of Economic Studies - Bucharest
petrisgeambazi@yahoo.com
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years. The European Commission determined national and European. Starting from the
by ROP's Manual maintaining the objectives premises that needed to be identified by key
so that the more developed regions havent indicators in the previous chapter can say that
had supplementary funding, regardless the the most important variable is the volume of
identified needs. road transport of passengers (million
The case study was based on obtaining passenger - km), and is less influenced by
reliable models on the seven previously county roads (km). So at governmental level,
identified needs. As a dependent variable was the most important point of road transport
considered for each model the annual has been offering the public a civilized level
contracted value between 2007-2014. The of travel, placing less emphasis on freight
purpose of this model is to analyze this transport, which would also help to boost the
program prerequisites to achieve its goals at economy. The econometric model is a linear
all. However it should be noted that EVIEWS regression also with an accuracy level of
program was used to process the data 97.01% and a valuable Durbin Watson,
considered important for the econometric respectively 2.14. And if we can say that
study. identified this need was met first step of the
In 2007, virtually jam sensing what was to specific objectives of the Priority Axis no. 2
occur, both at the country level and at the EU also it is important the absorption rate.
level, it was created the non-rembursable In Romania, needs of health, social and
possibility of contracting such projects educational infrastructure have been
funded by the European Union, possibly included under Priority Axis no. 3, their
based on certain key indicators. direct beneficiaries coming from various
Analyzing the relationship between key areas of population. Analyzing the data of the
indicators, specific needs for urban three major areas of intervention have been
development and the annual contracted value obtained three linear regression models,
begining with 2008, it can be concluded that multifactorial, thus:
it was obtained a valid linear regression - Health. The model has a confidence
econometric model, with an accuracy of level of 71.57% and the key indicator - the
about 87%. Durbin Watson test value closed number of doctors per 1,000 inhabitants - is
to a value of 2 (1.89) demonstrates there is a the least influencing the contracted value, so
serial correlation of errors, Jarque-Bera value we can say that the focus is more on
indicating slight right asymmetry which may rehabilitation, modernization and equipping
represent an obstacle in achieving the desired hospitals /out patient hospitals than bringing
objectives. more specialists in areas where the increased
Moreover, we observed that the most number of residents requires. It is required
important independent variables to take into not to forget that the economic crisis has led
account were the length of urban roads to diminishing funds allocated to health
(thousand km) and total lenght modernized services, which were already extremely
municipal streets in city streets. It can be said limited in relation to the development of
that the objectives considered to achieve the Romania, depriving the poor of the
desired performance for this axis were as possibility of accessing medical services and
close to reality as possible, although the external migration of the medical
differences between the contracted values personal. The targets set in the country and
and the effective absorption differences may crisis in early 2009 were not harmonized so
appear to refute the obtained model. the access/contraction grants to eliminate
Road transport was always a topic of these negative effects, as demonstrated by the
national interest, there are no regional asymmetry coefficient Jarque-Bera date.
programs/ sectoral development that do not - Social services. One of the Romanian
include this need in its economic growth. The societys vulnerability is the low quality of
difficulties the sector faces always persist, social services infrastructure and the limited
Priority Axis no. 2 being a very good access of the population to such services. If
opportunity for Romania in improving its Romanian authorities found several key
quality by works to combat poor state of road indicators in determining the amounts to be
infrastructure, the low level of connection contracted (EU funds), of particular
between transport networks of regional, importance was the number of children in
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public and private care homes, trying and financial changes being affected during
virtually as high allocation to these areas of the crisis phenomenon. Government
interest. On the opposite side are social authorities have tried through structural funds
canteens, few in number, which by their to provide on the one hand the investments
modernization have no added value such as needed for rehabilitation and historic
the possibility of giving the nourishment preservation, rehabilitation and expansion of
needed by more people than the capacity they accommodation in order to attract tourists; on
have at the moment. Certainty level of the the other hand the organization of events,
model was 93.43%, a high for an estimation especially those with tradition. However, in
of such premises. this case the objectives have not been
- Education infrastructure. A linear harmonized at all the indicators taken into
regression model with an accuracy of 81.74% account. Tried getting a known econometric
has shown that the most important aspect model based on which it can make a
considered in determining/allocation for Area prediction about the new programming
of Intervention 3.4 was the percentage of period, who showed a higher accuracy is still
people 30-34 years old who graduated linear regression, with an accuracy of about
tertiary education including post-secondary 88%. Referring to the same pattern we found
and less important was the number of that the forecasts had as main variable the
teachers. Also, among the financial and expenses arising from personal and business
economic crisis it suffered underfunding trips of residents abroad in order to attract
education by the lower public spending. them and as less important variable the share
However, pressures on the labor market have of expenditure in GDP generated by
led to an increase of unemployment, the residents traveling. Also to be taken into
request for skilled labor, which implicitly led consideration that the outstanding amount is
to the need for high quality educational due to a high degree of media coverage and
services. So we can say in the shown the need of rehabilitation and preservation of
situation that the main objective was the monuments whose intervention was
rehabilitation, expansion and equipping of necessary regardless the origin of the funds.
educational structures of any kind they might Above econometric study was based on
be, education level knowledge and progress the identification of econometric models for
must not know age limit for anyone, each particular field using specialized
becoming performance for early career. It software Eviews, thus obtaining the
should not omit the fact that the coefficient following mathematical relationships set out
Durbin Watson is on the threshold of below:
significance, namely 1.60.
Priority Axis no. 4 had as prerequisites Econometric models relating to areas of
the developing of micros by building their interest / Regression models indicators
own working spaces, either through provision
identified
necessity
(y1)
nt
9,565*A2-2,604*A3-1,125*A4-
n
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A1- Green space / resident (sqm / D1- The share of public expenditure for
resident); A2- Length of urban streets social protection in GDP (%); D2- The
(thousand km); A3- The share of urban number of disabled people in Romania
modernized roads in urban streets total (thousands); D3- The number of
(%); A4- The number of companies institutionalized disabled persons
erased from urban (thousands); A5- (thousands); D4- The number of
Costs incurred by local government functional centers for disabled people
(billion); A6- Expenditures from local and under the coordination of
government in GDP (%); A7- Share government; D5- Number of children in
capital expenditures of local public and private investment
government in GDP (%) (thousands); D6- The number
y2=0,013-36,933*B1-13,806*B2+ placement centers for protection of
50,138*B3+ 6,172*B4-0,125*B5+ children in difficulty; D7- The average
0,243*B6-4,789*B7+0,889*B8 daily number of persons receiving
B1- Length of public roads (thousand services offered by social canteens
km); B2- Length of county roads (thousands); D8- The number of social
Road Transport (y2)
(thousand km); B3- Share of canteens; D9- The absolute poverty rate
modernized roads in the county roads (%)
total (%); B4-Share unmodernized y5=0,0312+7,993E1+48,877E2
roads in county roads total (%); B5- 1,554E3+54,715E4103,216E5
Investment in road infrastructure 5,374E6+4,931E73,285E8
transport (billion); B6-The share of E1- Public expenditures for education
road infrastructure investments in GDP in GDP; E2-Number of educational
Education al Infrastructure (y5)
(%); B7- The volume of road transport institutions (thousands); E3- The
of passengers (million passenger-km); number of school population (million)
B8-The volume of road freight E4-Rate of enrollment in education of
transport (billion tonne-km) the school population (%); E5-The
y3=0,0062,766C1+24,260*C2 number of teaching staff (thousand)
-13,173*C3-10,543*C4+ 5,584*C5 E6- Rates of quit early education and
C1- The share of health expenditure in training system; E7- The share of
Health (y3)
GDP (%); C2- The number of hospitals; people 30-34 years old who have
C3- The number of hospital beds per completed tertiary education including
1,000 residents; C4-The number of post-secondary education (%); E8-
specialized ambulatory and hospital; Adult participation to continuous
C5- The number of doctors per 1,000 professional training (%)
residents y6=0,029+3,747*F1+0,585*F2+
y4=-12,526*D1-72,352*D2-67,662*D3 0,395*F3-0,556*F4-7,004*F5-
Services
2,085*F6+0,808*F7+1,043*F8+3,674*
Social
+177,392*D4-14,309*D5-49,522*D6+
(y4)
3,139*D7+27,765*D8+9,849*D9 F9
F1- The number of active SMEs
Business Environment (y6)
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Ghita Simona
Academy of Economic Studies in Bucharest - Department of Statistics and Econometrics
simona.ghita@csie.ase.ro
Boboc Cristina
Academy of Economic Studies in Bucharest - Department of Statistics and Econometrics
cristina.boboc@csie.ase.ro
Manea Daniela
Academy of Economic Studies in Bucharest - Department of Statistics and Econometrics
daniela.todose@csie.ase.ro
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accessed the Internet daily and almost half of variables and some of very weakly correlated
the individuals aged 16-74 years had ordered variables. Between the participation in
goods or services over the Internet at least tourism activities (PART_TOURISM) and
once, for personal, private purposes. [3] the use of the Internet to purchase goods and
European online travel market has boomed services (INDIVID_ORD_INTERNET) - for
within the last 15 years. Thus, the volume of example - there is a quite strong correlation,
its value in the period 1998-2009 increased but not so strong to eliminate one of the two
from 218 to 254 billion, (1% average variables within analysis (Figure 1). [9]
increase per year ). The share of online sales
reached 25.7% (meaning Euro 65.2 billion), Figure 1. The correlation between the
increasing by over 25 times in the analyzed participation in tourism activities and the use
period (in relative expression) . [4] of the Internet to purchase goods and
Quality of tourism depends more and services
more on environmental quality, on ecological
space dimension where tourism activities are
being developed. In 2012, in EU-28
countries, Greenhouse gas emissions from
industry and households amounted 4.67
billion tones of CO2 equivalent (9.7% lower
compared to 2000 level). [5]
Environmental protection expenditures in
EU-28, made by specialized producers of
environmental protection services were 145
billion Euros in 2013, representing more than
half of all public expenditures. Public sector
spent 87.2 billion Euros for environmental
protection, while industry spent 51.6 billion
Euro. The highest increase - in the period Source: made by the authors, based on
2003-2013 - was recorded in environmental EUROSTAT data.
protection expenditure made by specialized
producers (over 40% increase), followed by The analysis was developed on seven
the public sector. [6] statistical variables: Participation in tourism
In the EU-28, municipal waste generated for personal purposes (as a percentage of
was 481 kg / capita, lower than 2010-level by total population; duration: 1 night or over)
23 kg / capita. Extreme values of the (PART_TOURISM); Greenhouse Gas
indicator were recorded in Denmark Emissions (CO2 equivalent Thousand
(maximum value: 747 kg per capita) and in Tones) (GHG_EMISSIONS); Environmental
Romania (Minimum value: 272 kg per protection expenditure in Europe - % of
capita). [7] GDP (ENV_PROT_EXP); Protected Areas
for biodiversity: Habitats Directive (Area
2. Data and methodology km2) (BIODIVERSITY); Treatment of waste
(Tones) (TREAT_WASTE); Individuals -
The data was provided by EUROSTAT internet use (% of all individuals)
database [8], characterizing 2013 and (INDIV_INT_USE); Individuals having
covering 26 European countries. Processing ordered/bought goods or services for private
was performed using SPSS Ver. 20 and use over the internet in the last three months
consisted of using the Principal Component (% of all individuals) (INDIVID_ORD_
Analysis. INTERNET);
Originally, there were considered a total In order to apply the principal
of 14 variables. The variables chosen defined components analysis method, the variables
three main pillars: pillar of tourism activity, were standardized, using correlation matrix
the environmental pillar and the information in analysis. All quantitative variables
society pillar. After analyzing the correlation included in the analysis are measured on the
matrix, there were, however, removed from ratio scale.
the analysis some of very highly correlated
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the volume and efficiency of tourism activity. Greenhouse gas emissions by industries and
Promoting sustainable tourism, increasing its households, Brussels, January 2015,
extent will enhance environmental protection available at
actions, to maintain a high environmental http://ec.europa.eu/eurostat/statistics-
explained/index.php/Greenhouse_gas_emissi
quality.
ons_by_industries_and_households
In the present work it has been
[6] *** EUROSTAT Statistics Explained.
accomplished a resizing process of Environmental protection expenditures,
sustainable tourism concept, in the context of Brussels, April 2015, available at
the information society and the globalization http://ec.europa.eu/eurostat/statistics-
process. There were identified three pillars, explained/index.php/Environmental_protecti
concerning the involvement, the participation on_expenditure
in sustainable tourism activities through the [7] *** EUROSTAT Statistics Explained.
IT technology: the pillar of tourism activity, Municipal Waste Statistics, March 2015,
the environmental pillar and the pillar of the available at
information society. Each pillar has been http://ec.europa.eu/eurostat/statistics-
characterized by means of statistical explained/index.php/Municipal_waste_statist
ics
variables considered to be important for the
[8] http://ec.europa.eu/eurostat/data/database
domain (in total seven variables). Using [9] Manea, D.I., Statistica: teorie si aplicatii,
principal components analysis, the number of ASE Publishing House, Bucharest, 2013.
variables has been reduced to three main
components: "Usage of IT technology for
tourism participation" component (e-
tourism), "Environmental pressures"
component and the Financial component of
environment protection. Together, the three
principal components explain 90.299% of the
variation in the initial set of data.
The result of the analysis will continue to
be used in future work, in order to develop an
aggregate index for measuring sustainable
tourism activity, in the context of modern
information and communication
technologies.
4. References
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Golubkova Irina
Professor of department Economic theory and
entrepreneurship in maritime transport
Odessa National Maritime Academy
golubamen@mail.ru
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require basis of long-term planning companies, taking into account the basic
principles of the carrying capacity of the fleet requirements of marine tourists.
and other resources. The choice of strategy of development of
Marketing techniques of the development the local subsystem of the cruise shipping
of the cruise market offers are constantly takes place in the following stages:
improving [6]. This is evidenced by the 1) Variants of competitive
construction of the American company strategies of the development:
Disney Cruise Lines ship 124 thousand. 2) assessment of dynamic and
Dwt and a length of 330 m. Technology with sustainable cruise shipping:
elements of fairy-tale entertainment, based on - strategy of effective
the principle of the creation of Disneyland operating;
are added to offers of a traditional holiday. - strategy of priority
The strategy and development projects of development;
leading cruise fleet operators basically take - strategy of diversification.
into account two patterns: 3) Functional strategies of
- Relative stability of functional-economic effective positioning:
situation in the segment of marine vacation; - Management of quality;
- The availability of sufficiently constant - Marketing;
supply and consumers in terms of the - Investment;
comparative decline on prices for cruises - Strategy of priorities.
with regard to their quality and scope of 4) Control of the competitive
services. adequacy;
In the structure of investment and 5) Reaction to external
innovation strategies, tasks of the economic situation;
development of passenger terminal of the 6) Anti-crisis technologies.
port are central in the the Black Sea region Cruise shipping actually implements the
in addition to the construction of a special change of priorities in the structure of goods
fleet. The problem is to find a leading and wealth, despite its positioning in the
investment until the moment of their full system of peculiar entertainment and use of
impact. The steady increase in the proportion free time of individual [7] . Therefore, two
of large ships is posing an alternative to underrated aspects, based on its development,
either to focus only on the basic ports should be considered:
(Odessa, Sochi), or search for outside First, the intensification of cash flows
investors to expand the number of host ports. based on an assessment of the individual
Under estimated information, since 2014 value of sea cruise on the part of citizens
more than half of travelers is expected to savers. This form of realization of the real
serve by marine megalinera. I is enough to flow of money in the current manufacturing
mention the size of such vessels: length 290 process reduces the imbalance between
m, draft of 12 meters - and is evident speculative capitalturning operations and
problem of hydraulic engineering for the cover of the costs in the functioning
Black Sea ports. economy segment. In some extent, this
Marine Industry of any country in the reduces the risk of financial crises, which are
conditions of normalized development based on the revaluation of corporate
provides a complex set of socio-economic securities.
results. Therefore full-scale sea states focus Character of the softer passage of phase
attention, if not in all areas of use of maritime of the crisis in the cruise segment confirms
complex, then on the most important forms the validity of the strategy adopted by
of effective extraction of sea rent. The leading shipping companies;
carriage of passengers on cruise modern Secondly, the maintenance of scientific
technologies in the local marine regions and technical, investment and innovation
refers to one of the principal activities. subsystems due to the construction and
Features of the zone of operator activity operation of modern passenger liners, forms
define development objectives of carrying the competitive position of the country's
capacity and planning of the functional productive capacity in the structure of
activities of the specialized shipping priority technologies.
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The assessment showed the trends in the investments is particularly important ( Ivst).
global cruise industry [1], a new socio-
economic sector practically formed, taking Rvm = [ Pcci Nci Cspt Fk hk pcr WcGc 1 + b]
into account the fundamental change in the
I vst 1 + d s Atx
t
interrelation of the costs of current and future
period. (1)
Along with marked, attention should be
noted on the development of the local cruise
segment until the arrival of the world's major - cruise rates by category of quality
brands of passenger companies to the region of offered services on board in accordance
on the basis of the following paradigm: with the category of the ship ( i );
Firstly, encouraging of invest activity of - planned (estimated) passenger
ship construction of adequate class on occupancy of the liner;
domestic shipbuilding base by national spt - the sum of expenditure on relevant
operators. This type of vessels are not new vessel calls at the port under the current
for the program of the shipbuilding industry, conditions (j );
and can be ensured by strategy of quality
and reliability, taking into account that - parameters of consumption (use) of
companies built more difficult navy fleet on resources (agents of production
scientific and technological level and on ( ) factors of production, that ensure
innovative technologies, before the actual the efficiency and safety of operation
collapse. Consequently, hull works and activity;
superstructure are not fundamentally new and
cabin interior equipment, using modern wood - the market price of the used
processing, reached by specialists of resources;
Zakarpattia region, can provide not only - the normative of forming of
quality, but also the relative savings working capital;
compared with passenger West shipyards
- resource group (or services), that
(Spain, Finland);
predetermining periodic updating of working
Secondly, the shipbuilding program for
capital;
the Black Sea shipbuilding complex may be
supported by the principle of cooperation, i.e. - the share of used funds,that
partial participation of interested countries of predetermine the adjustment of cash flow due
the Black Sea Economic Cooperation to their non-standard;
(BSEC). This condition will stimulate further
- the deposit rate in the settlement
improvement of technical and economic level
period;
of passenger terminals in foreign ports
(Novorossiysk, Sochi, Batumi, Anatolian - the number of periods of short-term
coast of Turkey). financial investments;
That is the basis for an adequate
- the value of tax deductions, taking
development of cruise Black Sea Range are
into account payments for the loan.
investment and innovation strategies, that
Solving of these problems predetermines
have such significantly features as risk and
variation of appearance of alternative
capital intensity. In this respect, innovations
strategic situations. Therefore, the model of
are considered in the form of the use of ideas
improving technical and economic level of
and projects, which ensuring the formation of
shipping companies, depending on the
effective results. Management of cash assets
segment of the two states, is reviewed. [8] In
of the cruise shipping company, that at the
a situation when the flow of cruise
disposal of the shipowner or operator, should
passengers exceeds the carrying capacity,
be attributed to the most important functions
which in the recent past is characteristic of
of working capital. This value determines the
the Dnieper cruises, formed two strategies.
level of the absolute company's solvency and
On the one hand - competitive development
nature of ensuring of continuous operating
based on the launching into exploitation new
cycle. The function of the formation of the
transportation capacity, and in case of its
investment potential in the form of short-term
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Ilie Margareta
Faculty of Economic Sciences, OVIDIUS University from Constanta, Romania
ilie.marga@gmail.com
Ilie Constantin
Faculty of Mechanical, Industrial and Maritime Engineering, OVIDIUS University from
Constanta, Romania
cosmyn2001@yahoo.com
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The main goal is to determine the Table 1. Main national accounts, General
unemployment evolution and the possible government, Central government, Local
influence of the other mentioned indices over government, Gross domestic product at
it. market prices evolutions from 2005 to 2014.
As many researchers tries to apply
eurox10000)
Year
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Levinska Tetyana
Lecture of department Economic theory and
entrepreneurship in maritime transport
Odessa National Maritime Academy
kaf_ec_onma@ukr.net
Key words: yacht tourism, yacht complex The purpose of the article is to analyse of
structure, yacht tourism companies and the yacht tourism network companies
marines. development in the Black Sea region of
J.E.L. classification: 0180 Ukraine and determine the the direction of
long-term development of the branch.
Yacht tourism today is a type of tourism Yacht tourism - one of the most
that is developing most dynamically. In many perspective types of cruise tourism, which is
countries its a prospering business that growing steadily and occupies a large share
includes hundreds of thousands of yachts, in the segment of this business sector. The
charter companies, shipyards, an extensive developed maritime countries develop not
network of yacht harbors in various regions only yachting, but also business because, it
of the World ocean. brings sufficient income, despite the high
The Black Sea coast of Ukraine, due to a costs. For example, revenue from the yacht
unique combination of climate and tourism in Turkey has increased over the last
geopolitical conditions, is the most 15 years by 70% and it is about a quarter of
perspective place in Ukraine for the profits from the country's tourist industry. In
organization and development of yacht Greece, the gains of yachting business left
tourism. In addition to recreational and behind the hotel business.
natural-climatic potential, the Black Sea By the way, according to the report of
region has strong employment potential that Camper & Nicholsons, which has positioned
based on large number of skilled itself on the world yachting market and
professionals in various sectors of the annually publishes a report about the state of
national economy. However, the existing the industry - SuperYaching Index, while
resource potential is almost never used, and searching for the sector, which could be
the condition of development of yacht compared with freight yacht market, find out
tourism not only behind the advanced that the industry of hotels or villas is closest
to it. Food, rooms, service, etc. Most
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superyacht, that are presented for chartering, by funds paid by tourists for services and
are more than five-star luxury hotels, but in purchases. It is obvious that the development
comparison - hotel business is more of yacht tourism will increase profits in other
appropriate to use. areas, not just in the maritime field. Apart
Usually hotels have three indicators that from port fees and charges for anchorage,
determine their profitability: the level of yachts tourists use the services of shops,
occupancy (OCC), the average daily rate cafes, travel agencies and more. In addition,
(ADR) for the room and the most important local experts are provided by work, in case of
- the income from the room (RevPar). The necessary minor repair of the yacht.
latter is calculated as the average revenue per However, a number of problems prevents
room for night. Hotel rooms usually are formation and operation of the yacht tourism
available for renting throughout the year. in the Black Sea:
Applying these figures to yachting, RevPar - There is no classification system of
becomes RevPaw income for available yachting ports, harbors and anchorages of
week, expressed, in this case, as revenue yacht clubs in Ukraine, there is no officially
divided by the number of weeks available for confirmed hardware requirements for
charter of weeks. This figure reflects how yachting ports, their functioning and control
yacht is successful. systems for the completeness and correctness
Of course there is a difference in price of of its basic functions. Historically yacht ports
weekly voyage for 12 guests in comparison in Ukraine were built and developed, mainly
to the cost of the hotel rooms, but taking into to preserve yachts, boats, motor boats, that
account that also all private boat spaces, belonging to the yacht club and private
including dining room, terrace, spa are rented owners, in summer and winter.
too, such rent of yacht are equivalent to - Small shipbuilding on the industrial
private use of luxurious hotel. Moreover, the basis did not get development in our country
presence of the crew and the captain of the according to a number of reasons and
yacht, that paid attention only to guests, features, and pleasure travel vehicles, that
increase comfort levels higher than even in was made in small series by individual
the best hotels [1]. companies, was not of high quality. The
Black Sea area is virtually unexplored overall economic situation in the country
district of navigation for yachtsmen. Is yacht affected to the manufacturers of yachts.
locations are not even established till the First, large obstacle for all the shipyards is
present time. But this moment does not mean the lack of working capital. Virtually any
lack of interest of potential yachting tourists shipyard is not able to build vessels turnkey
to this region. Instead, travelers can be at their own expense, to participate in major
attracted by small yachts saturation, while exhibitions and conduct advertisement
virtually all large centers of yacht tourism campaigns. Poor discipline in terms of
formed a significant shortage of anchorage orders, low labor productivity, financial
places in recent years. For example, in the problems, untimely payment of wages and
Mediterranean basin - more than 700 unstable financial position of Ukrainian
thousands yachts, and its number is shipyards caused a significant decrease in
continuously increasing, and therefore there capacity of enterprises [7].
are serious problems with their basing and The lack of purposeful public policy in
service. Totally there are about 1,5mln. the development of small shipbuilding, high
anchorages for yachts in Europe. cost of loans and virtually no banking
Building of network of yacht marinas, that schemes of financial provision for the
meet international standards, on the construction of vessels leads to dispersion of
Ukrainian coast, would provide favorable resources and reduce the efficiency of
conditions for the development of yacht enterprises of small shipbuilding. Secondly,
tourism and related services in the region. there are no qualified professionals in
The involvement of yachts from building of yachts.
Mediterranean basin and formation of - The desire of Ukraine to integrate into
positions in the market of yacht tourism the world economy and effective interaction
should be considered as aim. This will create with the global trading community cannot be
more jobs, replenish local and state budgets done without opening up its own market of
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goods and services. In present time market of "of the whole chain, existing along the coast.
sailing yachts is protected from access of Joint marketing is one of the basic principles
foreign producers by high taxes and customs of network and plays an important role in
duties. For example, the price of yachts, reducing the costs to promote each marina.
imported from Poland to Ukraine, is growing Information about the possibility of visiting
more than in a half. the entire network ports leads to attracting a
- It should be noted that one of the main large amount of tourists. Despite the poor
factors, that restrain the development of performance of recoupment of each port
yacht tourism in Ukraine, is the inadequacy individually, infrastructure has a significant
of national legislation, that regulate the enter impact on comprehensive economic
and sailing of yachts in Ukrainian waters. development of the region as a whole, so-
First of all, it concerns definitions. called "indirect effect", i.e. the main impact
Worldwide yacht is a vessel for walks. In of the ports is to increase revenues of
Ukraine, yachts have no separate category, enterprises of tourist sector.
they fall under the classification of "cargo- The second problem - the construction of
passenger" vessels. This leads to the fact that yachts, can be solved by national
the yacht, that crosses the border of Ukraine, shipbuilding base, which has long experience
is required the same documents and permits, of building ships. Development of small
as well as really big ship. Worldwide the shipbuilding would create conditions for the
yachts need a few documents for entering: birth of integral part of the infrastructure of
crew list, the ship's log and the log transit yacht service of domestic and guest(foreign)
document, in which customs, border guard motor and sailing yachts [6].
service put their mark. A brief analysis of the situation on the
- The lack of a systematic approach to the market of small shipbuilding production
management of yachting. Owners, skippers gives an opportunity to suggest, that the yield
of yachts, brokers are working, guided by of Ukrainian yacht-builders to foreign market
their own ideas, but not approved procedures. is the only way to develop the industry.
The main disadvantages of this are: lack of Among the factors, that contributing to
coordination in the planning and release of small Ukrainian shipyards on the
management of cruise yachts and lack of foreign market, are following: low cost of
complex use and protection of recreational labor, very high quality of work , reasonable
resources. price of products, shipbuilding popularity of
There are three crucial aspects in the Ukrainian products on potential markets [5].
development of yacht tourism in Ukraine. One of the main factors, that hindering
Firstly, there should be the possibility of the development of yachting is the lack of
creating conditions for a comfortable and state support in the industry. The effective
safe yachts anchorage. Secondly, the state mechanism makes the development of
formation and functioning of yachting are this type of tourism really possible. The
impossible without yachts. This point solution is seen in the development of
involves the development of small legislative legal acts, which would include:
shipbuilding. Third, a significant factor in the identification of tourist regions, zones and
development of yacht tourism is creation of centers on state level; to ensure the
legislative regulatory framework, that harmonious inclusion of tourism in the
governing the enter and navigation of yachts overall economic mechanism; security of
in Ukraine. tourist activity, including safety of sea travel;
Well-developed network of yacht clubs information provision of maritime tourism; to
are needed to become really attractive provide tax incentives to small shipbuilding
coastline for tourism and shipping. Due to the companies in the way of their development;
fact that the construction of marinas is creation favorable investment climate for
expensive, perhaps, it will be appropriate to tourist enterprises, making activities in areas
use the experience of Denmark, where the of yachting, and more.
port practiced joint marketing of the whole Because of named reasons, Ukraine
region, thus builds up a unified system of practically does not participate in this
yacht tourism, in which each port is not seen segment of maritime trade with significant
as a competitor but as a "supporting element monetary circulation.
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In this regard, the directions of swimming pools and fitness clubs, children's
perspective development of yachting towns, areas for picnics with barbecue and
facilities are following: others are provided. Residential objects of
- Placing of yachting complexes in the complex are presented by hotels (including
structure of the city and beyond its bounds, Floatel), motel, individual and apartment
considering the formation of a network; buildings of different heights. This complex
- Introduction of modern technologies in is the core of the resort and tourist area and
the construction of complexes, particularly in its social center [3].
organization of storage, maintenance and
repair of swimming facilities; 4. Conclusions
- Formation of architectural and planning
structure of yacht complexes to modern To encourage the development of yacht
standards of service vessels and their users; tourism its necessary to develop and
- System development of the regulatory implement economic, legal, political and
framework for the design and construction of institutional mechanisms.
modern yachting complexes [2]. Formation of political and legal
Two options for the structure of the yacht mechanisms to encourage the development of
industry can be offered for the Black Sea yacht tourism are outside the competence of
region of Ukraine. First variant provides the specific business entities that necessitates
integration of yacht complex to the structure the formation of a separate mechanism of
of a larger object: seaport, sports and yacht tourism network companies
entertainment center, park, residential area. development as part of the mechanism of
In the complex structure , the composition of state regulation and management at the yacht
objects, that service the ships, contains only tourism companies level.
places for mooring, sites for "dry" storage, Its necessary to take measures to reduce
workshop for small repairs of vessels . the level of political risks in business activity
Dispatching, hydrometeorological and rescue in yacht tourism at the governance level that
services, border and customs control, medical will promote a positive tourist image of
center, apartment complex of administration Ukraine.
and mess room are located in the area of Implementation of legal mechanism
receiving -administrative objects. Public methods involves the development of
catering companies are cupboards, dining, national legislative and regulatory base acc.
bars; retail and consumer services - kiosks to the Mediterranean countries experience
and pavilions for the sale of essential goods and would allow to solve the problems in this
and specialty goods of yachting, rental area for a civilized level.
facilities and swimming gear. Sports and Economical mechanism of yacht tourism
recreation, cultural and recreational services network companies development stimulation
and housing are provided to users of yacht provides, above all, the formation mechanism
complex in the object, with which the of state support for the development of yacht
complex associates. tourism enterprises which include a wide
The second option of architectural- range of economic instruments: partial
planning structure involves the most subsidy on loans to domestic banks for the
extensive list of objects of ships construction of yachts and marinas, providing
maintenance: compared with the first option, financial incentives, increased funding for
boathouses, including ship repair, for not science and technological development in
only current, but also overhaul are added. yacht tourism branch, financing programs of
Guests of yacht complex are provided by children's sailing and providing small
various social services. Catering are well tonnage shipbuilding enterprises with state
represented well - cafes, canteens, restaurants contracts, development of leasing yachts built
of different types. The complex also forms a by domestic shipyards, and so on.
network of trade, including shops, different Organizational management mechanism
profile trade (food, manufactured and designed to mobilize the ability to influence
specialized), pharmacies, kiosks press. the entire system of management
Various facilities for sports, recreation, mechanisms of a different nature on all
leisure, such as sports halls and playgrounds, aspects of the company and is consists of the
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5. References
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Mamuladze Roman,
Dean of Business and Management Faculty, BSMA (Georgia)
r.mamuladze@gmail.com
Revutska Nataliia,
Assistant Dean of Business and Management Faculty, BSMA (Georgia)
natali_ucela@ukr.net
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resources is significantly different at the reserves in the Caspian region, there are at
regional and international levels and till least two challenges appeared. The first one
nowadays there is no generally accepted is related to the dividing of the Caspian Sea
estimated value. into spheres of influence among the riparian
Thus, on the EIA's (the US Energy countries, and the second - with a choice of
Information Administration (EIA)) the best ways of hydrocarbons transportation
estimation in 2004, the Caspian Basin has from the Caspian region.
232 trillion cubic feet of natural gas [1]. The problem of Caspian Sea legal status is
However, according to the report, really quite complicated. Today, five
published in June 2010 the proven gas countries have access to the Caspian Sea and
reserves decreased compared with previous they cannot reach a common position on this
forecasts (Table. 1). [2] issue. If considering the Caspian Sea as the
Table 1. Evaluation of main Caspian sea, its area (similar to the North Sea) should
countries proved oil and gas reserves be divided in the sectors among the coastal
Country Proved oil Proved gas countries. If considering the Caspian Sea as a
reserves, reserves, closed lake reservoir, the use of the water
billion trillion area has to be shared, without any distinction.
barrels cubic feet Only gradually, after much debate, Caspian
Kazakhstan 30 2,40 counties agreed on the compromise principle:
Azerbaijan 7 2,0 "Water is common, and the bottom is
Turkmenistan 0,7 7,94 divided."
The main developer of gas reserves is This means that the water area of the
Turkmenistan. Azerbaijan, Kazakhstan, and Caspian Sea with its biological resources
Turkmenistan have already concluded must remain in the common ownership of the
numerous agreements with the large oil five countries - as a united and indivisible.
companies from the USA, the UK, Norway, Nowadays coastal countries opted for
Netherlands, Italy, Japan, Saudi Arabia, bilateral cooperation.
Oman and Russia to develop oil and gas Even more difficult is the problem of
areas of the Caspian Sea. transportation of oil and gas, the main part of
Only in Azerbaijan 33 oil companies from which production is intended to Europe. This
14 countries, including Russia are working complexity is primarily due to two main
on the implementation of 17 major oil and factors: geopolitical and economic.
gas projects. Several international oil and gas The essence of the geopolitical factor first
consortium also created in Turkmenistan. of all is in the peculiarities of the political
Azerbaijan. Azerbaijan, which has and geographical situation in the Caspian
historically been an oil producing country, region.
gradually acquired the function of a natural The peculiarities of transport and
gas producer. Natural gas mining is carried geographical situation of the Caspian region,
out mainly in the Shah-Deniz area, which which is thousands of kilometers away from
was discovered in 1999. Gas is supplied by the main oil and gas markets is the essence of
pipeline through Turkey to the South the economic factor. This means that the
Caucasus. system of oil and gas pipelines should ensure
Kazakhstan. Gas production in both maximum bandwidth and minimum
Kazakhstan is mainly carried out in the investment and suitable transit tariffs for
greatest Tengiz area. companies.
Turkmenistan. Today Turkmenistan has Today there are three major infrastructural
not only a huge land and sea resource base of objects operating on the European direction:
hydrocarbons, but also the possibility of its - Caspian pipeline;
use. Experts estimate the total hydrocarbon - South Caucasus Pipeline;
resources potential of the country up to 71.2 - Turkmenistan-China pipeline.
billion tons of oil equivalent, 18.2 billion Central pipeline system (Caspian
tons are in sea area. Currently, Turkmen gas pipeline). The system was developed in
is exported in three directions: in Russia, Iran 1960-1988, and is transporting natural gas
and China. from the Caspian Sea to the north of Russia,
Despite the active development of where joins with the Russian pipeline system.
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Also there is functioning Caspian gas For the delivery of Turkmen gas to the
pipeline from Turkmenistan, which pipeline "Nabucco" it is also necessary to
transports Turkmen and Uzbek gas. construct new pipeline. To do this, it is
South Caucasus Pipeline (SCP). This important to solve the problem of legal
pipeline delivers natural gas from the uncertainty of the Caspian Sea. It is expected
Caspian region to Georgia and Turkey. Start that the Convention on the legal status of the
of the pipeline operation began in 2007 and Caspian Sea, which is agreed at 80%, may be
has 180 billion cubic feet of natural gas signed in 2016 at the summit in Astana.
transportation capacity. The main advantages of Nabucco are as
Asia Export Markets (Turkmenistan- follows [3]:
China pipeline). reducing of Eastern European countries
Oil consumption in China has increased dependence from Russian gas;
significantly, so China began to invest in oil project is open for different competing
and gas resources in the Caspian Sea. gas transit suppliers, what will protect
Japan is also interested in the consumers from monopoly pricing;
transportation of Caspian oil and natural gas encourage the researches of new gas
to satisfy the growing needs of the economy. areas in the Caspian region.
Thus, Japanese banks are interested in the development of a trans-Caspian
financing the projects of pipelines pipeline that connects Turkmenistan,
development. One of them is the Caspian Uzbekistan and Kazakhstan as a supplier of
Pipeline Consortium, which could increase natural gas to European markets bypassing
the potential of oil on the world market. Russia;
India and Pakistan Economies are also reducing of political, economic and
characterized by increasing energy demand, environmental risks and threats.
so these countries are interested in
development of pipeline, which will connect 3. Conclusions
Turkmenistan and India. This will deliver gas
from Turkmenistan to the growing Asian The results of the research suggest that
market, and generally to diversify natural gas there is no common accepted estimation of
exports. the Caspian region energy potential both on
The implementation of Caspian international and national levels, due to
"Nabucco" project, which will increase the political and economic interests of regional
energy security of the region, is important to and external players.
diversify gas supplies to the Europe. It is One of the most important problems of
intended for the transportation of Central modern energy policy the EU is providing
Asian gas via Georgia and Turkey. alternative ways of energy supply. Caspian
"Nabucco" project was launched in 2002, but region with its proven reserves of energy
was postponed several times due to lack of resources is the most promising region for
sufficient capacity of gas supplies. In June the successful implementation of
2013 it was announced that the project was diversification policy in Europe.
closed and declared a priority in the In the conditions of considerable energy
development of the Adriatic pipeline. dependence on Russian energy sources the
Gas corridor from Azerbaijan to Europe EU is seeking to establish an independent
"Nabucco" was developed in parallel with the access to significant reserves of energy
"South Stream" project. Experts claimed that resources in Central Asia. According to
Azerbaijan does not have enough gas to estimates of the EU, the Caspian region can
provide the "Nabucco" project fully. provide 15% of the EU's gas demand until
However, in the current difficult political 2020. Direct access to the Central Asia gas
conditions between EU and Russia, experts reserves, which should provide a
have begun to find new opportunities to diversification of energy supply, has become
diversify gas supplies and Azerbaijan project one of the most important issues of European
received a second chance for implementation. energy policy.
It is planned to fill the pipeline, not only with Despite on the developing of the Caspian
Azerbaijani gas, but also to transport the gas energy resources transporting infrastructure,
from Turkmenistan. the functioning of oil and gas pipelines and
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4. References
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European inland waterway navigation; third quarter of 2008. This crisis affected the
Pan-European Corridor no. IV (road and activities unfolded in Constanta Port in 2009
rail) - connecting Western and Southern when the volume of traffic carried on
Europe - crossing Bucharest and linking decreased with 32,25% (with 20 million tons)
Constanta via road and rail; comparative with the volume of traffic
Pan-European Corridor no. IX - registered in 2008.
connecting Northern and Southern Regarding the structure of traffic realized
Europe - crossing Bucharest and linking in Constanta Port, only the volume of exports
Constanta via railway; increased slowly with 7,2% the rest of traffic
TRACECA - linking Europe to Caucasus elements decreased with more than 39%
and Central Asia and attempting to revive (imports decreased with 39,13%, the transit
the historical Silk Route, with decreased with 47,37% and the cabotage
Constanta as the entrance point to reduced the value with 50%). At the same
Europe. time the volume of traffic registered by type
The routes linking the port to the Central of ship decreased with 32%, in case of
Europe are part of the EUs priority maritime traffic, and with 33%, in case of
investment project in the Trans European river traffic.
Transport Network (TEN-T), ensuring the Since 2010, when had started the recovery
future development of its market position. of European economy with positive
The port of Constanta has a significant implication on the Romanian economy, the
road transport infrastructure in place, volume of traffic registered in Constanta Port
Constanta-Bucharest highway, together with increased from a year to year in period 2010
the bypass linking the port with the highway, 2014, except the year 2011 (only the
ensures easier and better accessibility to the raising of exports registered a positive path
national/European road network. between 2010 and 2014). (see Table 1., Table
The port offers direct access from every 2 and Figure 1)
terminal to the national and European railway Through the macroeconomics analysis
network, through its own 300 km long carried out by National Bank of Romania and
railway system. Improvement works on the presented in Financial Stability Report/ 2014
railway line between Constanta and result that:
Bucharest will ensure competitive transit In 2013, Romanias economy posted one
times, providing easier access to the Central of the fastest growth rates in the EU, i.e. 3.5
European markets. percent, above that reported in 2012 (+0.7
The Port of Constanta is connected by percent). The positive dynamics of economic
pipelines to the major Romanian refineries activity were mainly bolstered by industry
and to the European pipeline network. The (which benefitted from auspicious conditions
port offers proper conditions for serving the in terms of external demand) and agricultural
energy markets, providing energy supplies to production (due to favourable weather
the Central and Eastern European countries conditions). The projections for 2014 point to
[1]. moderate GDP dynamics, the convergence of
The article is organized as follows: income per capita in Romania towards the
section 2 presents an overview of activities euro area average being expected to continue
carried on by Constanta Port between 2008 at a pace similar to the average of the
and 2014 and section 3 shows the evolution countries in the region. [2]
of the revenues and investments of Constanta Between December 2008 and December
Port based on the main activities of 2014 the balance-of-payments current
Constanta Port. account posted deficits, those deficits were
between EUR 5.520 Million, in December
2. The main activities carried on by 2087 and EUR 268 million in December
Constanta Port in period 2008 to 2014 and 2014.
the economic factors that impacted the This diminishing of the deficit of account
activity current is due, in principal, to the climb-
down of the trade deficit (this deficit was of
Many countries experienced recession in EUR 4.221 million in December 2008, then it
2008 and Romania went into recession in the became EUR 2.065 million in December
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2009 and finally in December 2010 it was of early-2014 episode sparked debates over the
EUR 1.623 million EUR 1.196 million in economic and financial impact of the conflict
December 2014).[3] in Ukraine. The hike in energy prices entails
All the factors above influenced positively corrections across the economy, whereas the
the activity carried on by Constanta Port, portfolio rebalancing decisions may bring
respectively the exports and imports through about contagion on financial markets in
the potage and waterborne transport realized. Central and Eastern Europe. [2]
Due to the Ukrainian Crisis, a lot of
Table 1. The volume of traffic made transporters, included the passengers vessels,
between 2008 and 2014 in Constanta Port changed their maritime and river routes in
-mil tons- 2014 using more and more the Constanta
Year 2008 2009 2010 2011 2012 2013 2014 Port services in detriment of the Uckaina
Total, of 62 42 48 46 51 55 56 ports (especially the maritime ports such as:
which:
Exports 14 15 16 17 17 21 22 Odessa, Illicevsk, Belgorod-Dnistrovski,
Imports 23 14 15 15 15 14 16 Iujni, Kerci, Sevastopol, Feodosia, Ialta and
Transit 19 10 12 10 15 16 13 Evpatoria and Danube ports such as: Reni,
Cabotage 6 3 5 4 4 4 5 Ismail i Ust-Dunaiski). The increased traffic
Source:http://www.portofconstantza.com/ap of vessels is presented below in Table 3.,
mc/portal/static.do Table 4., Table 5 and Figure 2.
Table 2. The volume of traffic by type of Table 3. The evolution of ship calls by
ship made between 2008 and 2014 in type of ship in period 2008 -2014 through
Constanta Port Port of Constanta
-mil tons- -number-
Year 2008 2009 2010 2011 2012 2013 2014 Year 2008 2009 2010 2011 2012 2013 2014
Total, of 62 42 48 46 51 55 56 Maritim 5.950 5.023 5.202 4.872 5.057 4.833 4.771
which: e calls
Maritime 50 34 37 37 38 43 43 River 8.033 6.808 7.943 8.096 9.310 9.233 10.053
River 12 8 11 9 12 12 13 calls
Source:http://www.portofconstantza.com/ap Total 13.983 11.831 13.145 12.941 14.367 14.066 14.824
mc/portal/static.do Source:http://www.portofconstantza.com/ap
mc/portal/static.do
Figure 1 The evolution of the volume of
traffic made between 2008 and 2014 in Figure 2 The evolution of ship calls by type
Constanta Port of ship in period 2008 -2014 through Port of
80 Constanta
60 20000
40 15000
20 10000
5000
0
2008 2009 2010 2011 2012 2013 2014 0
2008 2009 2010 2011 2012 2013 2014
Total Maritime River
Total Maritime River
Source:http://www.portofconstantza.com/ap
mc/portal/static.do Source:http://www.portofconstantza.com/ap
mc/portal/static.do
Another factor that influenced the activity
of Constanta Port was the Ukrainian Crisis.
The intensification of political and Table 4. The evolution of maritime ship
military tensions associated with the conflict calls by type of ship in period 2008 -2014
in Ukraine caused financial market turmoil through Port of Constanta
all over the world. The crisis in Ukraine -number-
broke out at a time when European Year 2008 2009 2010 2011 2012 2013 2014
Cargo 2.881 2.748 3.145 2.879 2.692 2.525 2.146
economies were recovering from the losses Passenger 81 51 58 44 52 69 95
incurred during the recent recession. Hence,
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Portcontainer 1.201 694 523 577 651 579 578 Figure 3 The evolution of the revenue
Tank 957 724 647 632 673 636 719 achieved by Constanta Port during 2008 and
Bulk Carrier 415 386 419 401 439 533 558
Others
2014
415 420 411 339 550 492 675
Total 5.950 5.023 5.202 4.872 5.057 4.833 4.771 100
Source:http://www.portofconstantza.com/ap
mc/portal/static.do 50
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20 5. References
0 [1] http://www.portofconstantza.com,Port of
2008 2009 2010 2011 2012 2013 2014 Constantza Annual Report 2014, ISSN
Total 1582-0564;
Own sources [2] http:www.bnr.ro, Financial Stability Report
Budgetary allocations 2014, ISSN 1843-326X;
European Fund for Regional Development
[3] http://www.bnr.ro/Balanta-de-plati-BPM6 -
Source:http://www.portofconstantza.com/ap 11132.aspxi
mc/portal/static.do [4] http://www.portofconstantza.com, Port of
Constantza Annual Report 2013, ISSN
1582-0564
[5] http://www.portofconstantza.com, Port of
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Neagu Olimpia
"Vasile Goldi" Western University of Arad
olimpian2005@yahoo.com
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The concept of economic convergence is The entropy indexes we use imply that a
well studied in the economic literature. number of counties (j) varies between 1 and 8
Several authors [3],[4],[6],[8],[10] and the number of counties i within a region
[11],[13],[15],[16],[17],[18],[19] studied the varies between 1 and 7.
common trend of some indicators or indices We use these indexes [5] due to their
related to economic and social development special features of being aditively
or activities and reflecting disparity, decomposable both by population subgroup
discrepancy, inequality, imbalance, and by factors component.
polarisation, agglomeration, concentration or Thus, the general entropy index can be
dispersion on these activities and using decomposit into a "within" variance (Ec) and
adequate mathematical techniques. a "between" variance (Er):
[12] proposed a new concept of m
sensitive to changes in the lower tail of the where yi is the GDP per capita for the
distribution and for higher values, GE is
more sensitive to changes that affect upper region i and y is the national average of GDP
tail. The commonest values of used are 0, per capita and n is number of regions.
1 and 2.
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The same rationale is applied for a region Table 1 Shares of inter- and intra-regional
when we calculate Tci. inequalities, 2000-2011(part 2)
Share of 2006 2007 2008 2009 2010 2011
For analysing the regional economic Entropy
Index
performances, the regional GDP was used explained
by:
(per capita and total). Data were collected
Inter- 78,92 78,92 83,75 81,07 78,61 81,31
from EUROSTAT and NIS database for the regions % % % % %
period of 2000-2011. inequaliti
es
Intra- 21,08 21,08 16,25 18,93 21,39 18,69
regions % % % %
4. Main findings inequaliti
es
Source: author's computation based on Eurostat data
4.1. The evolution of regional convergence
based on entropy index
The inter-region component of the index
Figure 1 Entropy of regional GDP per capita clearly increases over time. In 2000, 78.03%
in Romania and its components of territorial disparities can be explained by
0,16 disparities among regions counties. By 2011,
0,14
territorial disparities among regions
0,12
accounted for 81.31% of disparities among
regions, suggesting a slight decrease of intra-
0,10
regions component (among counties).
0,08 But, in detail, (Figure 2) we notice that not
0,06 Er all regions are converging in same way to the
Ec
0,04
E national average. The region of Nord-Est is
taking distance from the national level and
0,02
national average of GDP per capita; the
0,00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 economic performance of this region is
Source: author's computation based on Eurostat data marked by a high share of unemployed
people, active population who emigrated for
We can notice from the Figure 1 that the working abroad and a major reduction of
total entropy index (expressed by the Theil industrial activities. According to
index of regional GDP per capita) increased EUROSTAT data, the GDP per capita in this
from a level of 0.09 in 2000 to 0.14 in 2011, region is the lowest of Romania (3600 Eur
highlighting a divergence process of per inhabitant in 2011). The region of
economic performance of Romanian regions. Bucureti-Ilfov is excluded in this figure due
The decomposition of the the entropy to its special dynamics, different from other
indexes in within regions and between regions.
regions shows that the source of the
disparities increase consists on the Figure 2 Trends in regional GDP per capita
differences (inequalities) between regions. and the national average
The entropy between regions contributes to
8000
the general entropy in a proportion of 73,78%
to 83.75% while the entropy within regions 7000
4000
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2500
80%
2000
70%
60% 1500
50% 1000
40%
500
30%
0
20%
00
01
02
03
04
05
06
07
08
09
10
11
20
20
20
20
20
20
20
20
20
20
20
20
10%
0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Standard deviation(without Bucuresti)
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The displayed data show an increase of [4]Bnabou, R., Inequality and Growth, In
11.86 percentage points of the coefficient of Bernanke, B. S. and Rotemberg, J. (ed),
variation in the case of including the region National Bureau of Economic Research
of Bucureti. If not, the increase is of 5.15 Macroeconomics Annual, MIT Press,
Cambridge, 11-74, 1996.
percentage points. A reason of this finding is
[5] Brlhart, M. &Traeger, R., An account of
that Bucureti region is very far and above of geographic concentration patterns in Europe,
the national and mathematical average of Research Paper, Leverhulme Centre for
GDP per capita. Research on Globalisation and Economic
The maximum of all variance indicators Policy 2003, pp.
was reached in 2008 followed by a sharp fall [6]De la Fuente A., Testing, not Modelling, the
in 2009 and rapid recovery period after that Impact of Cohesion Support: A Theoretical
and their values are higher when the Framework and some Preliminary Results for
Bucureti region is included in the analysis. the Spanish Regions, CESifo Working Paper
Series 2918, 2010, CESifo Group Munich.
[7]European Commission-DG regional, Social
5. Conclusions and policy implications
mobility and intra-regional income
distribution accross EU countries, N
The paper intended to document the 2008CE160AT054/2008CE16CAT017, Final
process of economic convergence of Report, July 2010.
Romanian regions by using the entropy (http://ec.europa.eu/regional_policy/sources/docg
indexes. The findings using the Theil Index ener/studies/pdf/sm_final_report_08072010.p
as particular case of generalised entropy df) accessed 29 of March 2015.
index show a divergence process experienced [8]Fingleton, B., Estimates of Time to
by the Romania regions over the years of Convergence: An Analysis of Regions of the
2000-2011. This conclusion was verified by European Union, International Regional
Science Review, 22 (1),1999, pp.5-34.
using other statistical measurements of
[9]Granger, C., Maasoumi, E. & Racine, J.C., A
regional disparities (standard deviation and dependence metric for possibly nonlinear
coefficient of variation). The economic processes, Journal of Time Series Analysis
divergence is higher when the region of 25, 2004, pp.649669.
Bucharest is included in the analysis. [10]Iancu A., Problema convergenei
The findings of the present study are in economice, in Probleme ale integrrii n
line with other studies on regional disparities UE, 2005, pp.5-60
in Romania [1], [2] emphasizing an increase (http://oeconomica.org.ro/files/pdf/93.pdf)
of regional disparities and a risk in attaining [11]Kowalski, A., Rossignoli, R.D., Curado,
the cohesion objective of the balance regional E.M.F. (eds), Concepts and recent advances
in Generalized Information Measures and
development.
Statistics, Bentham Science Publishers, 2013.
The disparities between regions have [12]Maasoumi, E., & Wang, L., Economic
grown more rapidly last years (after 2009) Reform, Growth and Convergence in China,
fact that suggests for politicians to take into Econometrics Journal, 2008, vol.11, issue 1,
consideration this reality in drawing 2008, pp.128-154.
appropriate policy measures aiming to reduce [13]Magrini, S., Regional (di)convergence, 2004
the regional imbalances. (http://www.econ.brown.edu/faculty/henderso
n/regionaldiconvergence2.pdf)
[14]Monfort, P., Convergence of EU regions.
6. References Measures and evolution, Working Papers,
No. 1, European Union, Regional Policy,
[1] Antonescu, D., "Identifying regional
2008.
economic disparities and convergence in
[15]Quah, D., Aggregate and Regional
Romania", Journal of Knowledge
Disaggregate Fluctuations, CEPR
Management, Economic and Information
Discussion Papers 1236, 1995.
Technology, Vol.II Issue 2, April 2012, pp.1-
[16]Ravallion, M., Inequality Convergence.
32.
Economics Letters, 80, 2003, pp.351-356.
[2]Antonescu, D., Measuring regional
[17]Sala-i-Martin, X.,Regional Cohesion:
convergence-an application to the European
Evidence and Theories of Regional Growth
Union and Romania, Revista Economic,
and Convergence, European Economic
Supplement No.1, 2012, pp.46-58.
Review, nr.40, 1996, p.1325-1352.
[3]Barro, R. J., & Sala-i-Martin, X., Economic
growth, London: The first MIT Press, 1995.
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Annex 1
Weights of regional GDP in the national GDP
(part 1)
Regions
(NUTS 2) 1995 1996 1997 1998 1999 2000 2001 2002 2003
NORD-
VEST 0,12 0,12 0,12 0,12 0,12 0,12 0,12 0,12 0,12
CENTRU 0,12 0,12 0,12 0,12 0,12 0,12 0,12 0,12 0,12
NORD-EST 0,14 0,14 0,13 0,13 0,12 0,12 0,12 0,12 0,12
SUD-EST 0,13 0,13 0,13 0,13 0,12 0,12 0,12 0,12 0,12
SUD-
MUNTENIA 0,15 0,15 0,14 0,13 0,13 0,12 0,12 0,12 0,12
BUCURESTI
- ILFOV 0,15 0,15 0,15 0,18 0,19 0,22 0,21 0,21 0,20
SUD-VEST
OLTENIA 0,09 0,09 0,10 0,09 0,09 0,09 0,09 0,08 0,09
VEST 0,09 0,09 0,10 0,10 0,10 0,09 0,10 0,10 0,10
Extra-regions 0,002 0,002 0,002 0,002 0,002 0,002 0,002 0,002 0,001
NORD-
VEST 0,12 0,12 0,12 0,12 0,11 0,12 0,11 0,11 0,11
CENTRU 0,12 0,11 0,12 0,12 0,11 0,11 0,11 0,11 0,11
NORD-EST 0,12 0,12 0,11 0,11 0,11 0,11 0,11 0,10 0,10
SUD-EST 0,12 0,11 0,11 0,11 0,11 0,10 0,11 0,11 0,11
SUD-
MUNTENIA 0,13 0,13 0,13 0,13 0,13 0,13 0,13 0,12 0,12
BUCURESTI
- ILFOV 0,20 0,23 0,23 0,23 0,25 0,25 0,26 0,27 0,27
SUD-VEST
OLTENIA 0,09 0,08 0,08 0,08 0,08 0,08 0,08 0,08 0,08
VEST 0,10 0,10 0,10 0,10 0,10 0,10 0,10 0,10 0,10
Extra-regions 0,001 0,001 0,001 0,001 0,001 0,001 0,001 0,001 0,001
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Peresypkina Natalia
Postgraduate and assistant of department Economic theory and
entrepreneurship in maritime transport
Odessa National Maritime Academy
nataly-onma@rambler.ru
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inconsistency with international standards on conditions for attracting foreign and private
cruise components; investment in the cruise sector;
- Political instability; 2. Creation of developed infrastructure
- The lack of legislative support for an (port, transport, tourism) by joining forces
enabling conditions of investment in the with the coastal resort complexes and
development of appropriate tourism transport organizations. The obligatory
infrastructure in the Black Sea cruise regions; conditions are: construction of new terminals
. The low level of budget financing, the at airports and marine terminals, or
lack of state support for the development of expansion of existing ones; new construction
the cruise industry; or reconstruction of old roads, which
- The factor of seasonality of the cruise facilitate access to attractions; the
business, establishment of ports of call of foreign ships
- Low level of advertising in the Western appropriate urban infrastructure in the ports
media, a large number of false negative of call of foreign cruise vessels: a sufficient
publicity that undermines the tourist image of number of tour buses and taxis; providing
the country. information signs for tourists.
- Lack of qualified professionals, that 3. The development of a system of
capable in the shortest possible time to statistical information about functioning and
ensure the reception of cruise tourists. development of the cruise market, that
- Lack of sufficient comfortable bus fleet provide an opportunity for the performance
for tourist transportation; of analysis of cruise tourism complex in
- The lack of tourist pictographs and whole and of individual companies in
international marking, audio guides in particular. This point involves the
museums, parking spaces on the tourist organization of statistical observation in
routes, near the main monuments of every port [6].
architecture and history. The interests of the Strategy of development of cruise
elderly tourists, wheelchair disables make up shipping in the Black Sea region should be
a large percentage of cruise ships travelers by directed to promotion of foreign companies
sea, according to research data, are not taking cruises, that belong to the category of mass
into account. market, low cost. This will increase the
- The complexity and duration of the incomes of seaports and companies, that
procedure of passport and customs control. providing services to tourists on the land. At
Extremely excessive port charges; the same time one of the conditions of
- Financing of cruise tourism is actually increasing demand on cruises from the
made out of the funds, that allocated by ports. population of post-Soviet countries is to
Improving the efficiency of the control the price of travel services (including
development of cruise tourism is possible by cruise, airfare, hotel reservations, etc.), that
the implementation of the following provided by domestic tour operators, which
provisions: often significantly overestimate the price of
1. Improvement of legislation in the field travel packages, including cruises [5].
of cruise shipping in according to The fact that interest to the Black Sea
international standards and rules of law, that region exist, and every year this interest had
involves the development of legislative and been increased ,the number of ship-calls to
normative-legal acts and instruments of state the port of Odessa during the years 2009-
influence, directed at stimulating of the 2013 indicates (Table 1).
development of the cruise industry, which
include: the removal of the visa regime for Table 1 Calls at the port of Odessa
cruise passengers; simplification of customs
procedures and border registration, that will Year Number of calls
favour for increasing the time of sightseeing; 2009 58
the application of flexible cumulative 2010 72
discount system of port dues for cruise ships, 2011 73
which taking into account the number of ship 2012 91
calls at Ukrainian ports; creation of favorable 2013 106
2014 32
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Sotnichenko L.L.
Odessa National Maritime Academy, Ukraine
ekonom@fmp.omma.edu.ua
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Other types of financing exist and are 2. Optimal risk sharing: PPPs transfers
implemented actively: certain risks in the life cycle to the private
- traditional providing of public services partner, thus creating incentives for better
(provision of government services, the quality and more cost-effective provision of
contract for the provision of services; services. For example, by transferring the
- public-private partnership (transfer of risks of construction, operation and
assets, projects "from scratch", concessions, maintenance to the private partner, strong
contracts for management and rental); incentives are created for the construction of
- privatization (redemption of the high-quality facility that is perfect for
company by management and employees, operations and does not prone to failures.
initial public offering, sale to a subsequent Similarly, tying payment to operational
receipt of rent, transfer of assets). readiness of the facility of infrastructure and
The decision about which models will be provision of service, the private partner is
used for specific projects will depend on economically motivated to provide
various factors such as validity (profitability), infrastructure facility to a term or provision
availability, principle of accounting for the of services of high quality.
debt and the interest of investors/creditors. 3. Additions budget / additional capital:
Although many countries are turning to with help of the transfer of responsibilities
PPPs in the hope of speed the development of for financing on the side representing the
infrastructure, PPPs is an extremely difficult private sector, PPPs provide, finally, the
policy tool that even developed countries are inflow of private capital to public
making efforts for effective implementation infrastructure or services.
of projects. Thus, it is essential that public Such mobilization of additional capital
authorities carry out a real estimation of their allows governments to increase the general
own institutional capacity, regulatory level of investment in development of
framework and other important factors of infrastructure.
success, particularly, political will and 4. Focus on customer service: taking into
deliberate strategy of industrial development. account the use of incentives based on results
It is unlikely that the PPPs will ever of activity, the PPPs has confirmed
completely replace the traditional model with reputation of improving the quality and level
the participation of the public sector in the of services. Private organizations that provide
provision of public services. PPPs is just one services, offer the knowledge and experience
tool among many that state authorities have of higher quality, and innovation in the
to build infrastructure and provide services. private sector increases the level of providing
In addition, the PPPs has shown its quality services. Besides, the state sector
potential to resolve issues related to the lack saving itself from the everyday provision of
of infrastructure, as well as to achieve high services, is able to act as a more effective
efficiency of expenditure of funds. Among regulator, focusing more on ensuring
some of the clear benefits of PPPs we can provision to the private operator the desired
note follows [6-10]: level of consumer services.
1. Accelerated implementation of 5. Increasing the level of efficiency and
infrastructure projects: due to the fact, that cost savings: the efficiency of the private
the payment is tied to the provision of sector in conjunction with the optimal
infrastructure or services, PPPs have a allocation of risks can provide significant
substantial list of achievements to complete cost savings in the provision of public
construction in time or ahead of schedule. infrastructure and services. The cost savings
Besides, taking into account that PPPs from PPPs is typically implemented in the
usually let you spread the cost of investments form of lower construction costs, reduced life
in infrastructure for the whole life of the cycle costs, improve efficiency, and lower
asset, the implementation of infrastructure costs of associated risks.
projects can continue without a significant 6. Additional income: innovation and
initial financial investment by the state. It motives of profit in the private sector can
enables citizens to benefit from the create incentives for the private partner to
investment much earlier than traditional develop new and creative sources of revenue
funding based on budget capacity. from public infrastructure. Such new sources
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of revenue can be shared with the state, organization and implementation of PPPs
which creates additional sources of revenue projects.
for other social priorities.
7. Accountability: PPPs services are 6. References:
provided in the framework of firm contracts
between state authorities and private partners. [1] Otchet o konkurentosposobnosty regionov
The state authority determines the level of Ukrainy. Retrieved from: www.feg.org.ua.
services, then checks and adjusts the quality [2] National Infrastructure Plan 2013. Retrieved
of services, using financial incentives to http://www.ice.org.uk/getattachment/
[3] National Infrastructure Plan 2010. Retrieved
improve targets or punishing for poor
from:
performance. http://www.infrastructure.govt.nz/plan/mar2
8. Private sector development / 010/nip-mar10.pdf.
investment opportunities: PPP provides [4] Transportation & Logistics 2030. Retrieved
stable long-term investment opportunities for from:
the private sector, and the possibility of http://www.pwc.com/en_gx/gx/transportatio
entering the sector of providing services that n-logistics/tl2030/emerging-
were monopolized by state authorities markets/pdf/tl2030_vol3_final.pdf.
previously. [5] Razvitie gosudarstvenno-chastnogo
partnerstva v stranax ES. [Development of
state-private partnership in the EU
5. Conclusions
countries]. Retrieved from:
http://www.ini21.ru/?id=1231.
PPPs enables the public sector to focus [6] Better Regulation of Public-Private
on strategic functions and results: by the Partnerships for Transport Infrastructure.
release of the public sector from direct Retrieved from:
provision of non-strategic services, the http://www.internationaltransportforum.org/
government can focus its minor resources on JTRC/DiscussionPapers/DP201306.pdf
their core tasks. [7] GCHP v Ukraine [State-private partnership
In spite of its potential, PPPs is not a in Ukraine]. Retrieved from:
panacea. Public-private partnerships have http://dspace.oneu.edu.ua/jspui/.
[8] GCHP. Obzor dlya Kaxahstana [State-
certain difficulties, which we must admit:
private partnership. The review for
they are difficult and relatively inflexible Kazakhstan]. Retrieved from: .
structures; support and implementation of the http://macro-
PPPs can be prolonged, and expensive, in project.net/cms/uploads/mep_ppp_brochure
this connection PPPs is not acceptable for _may2012_rus.pdf.
some projects; imposes additional [9] Maksimov, V.V. (2010). Gosudarstvenno-
responsibility on the public sector, which chastnoe partnerstvo v
should be ready to act as a competent side transportnoyinfrastrukture: kriterii ocenki
and controller; can lead to higher fees from koncessionnix konkursov [State-private
users after the abolition of explicit or implicit partnership in a transport infrastructure:
criteria of an estimation of concessionary
subsidies and disclosure of the real cost of
competitions]. Moscow: Alpina Pablisherz
services; does not provide absolute transfer [in Russian].
of risk, the public sector always retains [10] Investicii v razvitie transportnoy
certain risks; almost always involves infrastruktury. Dostyzhenie visokix
"contingent liabilities" for the public sector; rezultatov s menshimy zatratamy
not all projects are suitable for PPPs [6-9]. [Investments into development of a transport
Indeed, despite the fact that PPPs has infrastructure. Achievement of good results
significant benefits as security infrastructure, with smaller expenses] Retrieved from:
when it is improperly organized, PPPs can http://media.rspp.ru/document/1/b/e/be9521
cause significant problems. To avoid pitfalls a4b0bedae86fc3600443caee68.pdf.
in PPPs, the government should to apply
international best practices in the
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Trnovan Anabella-Maria
Post-Phd Fellow Romanian Academy, Iai Branch
anabella.tarnovan@gmail.com
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for socio-economic development. Since the societies. However, the review of studies
new pair of concepts has been also plagued concerned with the two concepts, clearly
with vagueness and ambiguities, I explore shows that scholars face difficulties
two different approaches of bridging and particularly in their efforts to measure and
bonding social capital in search for unified analyse the two types of social capital. As
understanding of the two concepts. Geys & Murdoch [14, p.122] put it the
empirical operationalization of bridging
2. Bridging - Bonding Social Capital versus bonding social capital is at best
underdeveloped. Furthermore, scholars
Political scientist Robert Putnam, also seem to have different understandings of the
known for his valuable contribution to social social capital bridging-bonding dimension.
capital theory, introduced the distinction While some scholars [15] interpret the two
between two forms of social capital - types of social capital based on spatial
bridging and bonding social capital [1]. proximity criterion and others [16], [17]
Putnams aim is to draw attention upon the emphasize the diversity (of resources)
diverse functions, outcomes and downsides present in social networks.
of different types of networks and These differences in research approaches
relationship patterns in society. To better makes the articulation of coherent
explain his understanding of bridging and conclusions and further research directions
bonding social capital, Putnam draws on quite problematic. Most importantly, in the
Mark Granovetters [11] strength of weak absence of relaible and consistent findings,
ties argument and on Xavier de Souza bridging and bonding social capital are of
Briggs perspective of social relationships little use for social actors involved in
[12]. Accordingly bonding social capital development programs.
refers to strong ties and is good for getting
by while bridging social capital is built 3. Homophily in Social Networks
across weak ties and is useful for getting
ahead [1]. In Putnams view, bonding social Lin suggests understanding social capital
holds communities together creates a sense of in an economic logic of investments and
belonging and cohesion, whereas bridging returns. In Lins view social capital
social capital refers to connecting resources represents thus the surplus value generated
and bridging diversity [1]. In other words, by the investment in social relationships and
bonding social capital appears to be more networks [8]. Relationships have an intrinsic
valuable from a community identity value, because of the different kinds of
perspective, whereas bridging social capital resources embedded in these networks which
is important for progress and growth. In this can be accessed and mobilized by social
light both types of capital are important for actors according to their needs, interests and
development. However, since bonding social purposes.
capital is constructed in homogeneous In the attempt to found a network theory
groups, it is rather limited from a resource of social capital consistent with this view,
perspective, because resources become Nan Lin [8], [9] proposes a different
redundant [11]; [13] More than that, strong perspective of the two types of social capital
ties and solid groups (could) foster in-group introduced by Robert Putnam. Lin [9] aims
identities and encourage hostility which in to formulate a more precise understanding of
turn blocks the access of new comers [1]. the value generated by different types of
This is why Putnam suggests that too much relationships and networks by linking
bonding might be detrimental: A society interaction patterns - resources and
that has only bonding social capital will look individual or collective goals. In so doing Lin
like Belfast or Bosnia segregated into argues that the utility of the resources which
mutually hostile camps [2, p. 3). actors can mobilize depends also on their
The bridging - bonding dimension of aims, which can be either expressive
social capital has been rapidly picked up by maintaining cohesion, solidarity or well-
scholars committed to understanding how being [9, p. 52] or instrumental gaining
social relationships and networks may yield wealth, power or reputation [9, p. 52].
benefits for individuals, communities and Further, drawing on Lazarsfelds and
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Mertons [18] homophily principle, while bonding social capital is rather useful
introduced by Lazarsfeld and Merton [18], for getting by. In this light, bridging social
Lin suggests understanding bridging and capital appears to be particularly valuable for
bonding social capital according to the economic development and performance. Yet
degree of similarity present in the network bonding social capital is also necessary to
which also reflects the diversity of resources. build trust and secure the solidarity of the
Lin explains this as follows: As the group or community.
relationships extend from the inner layer to Given the diverse potentials of the two
the outer layer, the intensity of relationships types of social capital, scholars found these
decreases, the network of network decreases, two concepts very useful for addressing
and, most critically, resources embedded several problems of socio-economic
among members become more diverse or development. Accordingly several studies
heterophilous [9, p. 61]. present evidence and discussions on bridging
Lins conceptualization of bridging and and bonding social capital and their
bonding social capital according to the implications for development. A detailed
homophily principle is useful for several discussion on all various challenges
reasons. First and perhaps most important, it associated with bridging and bonding social
provides a clear(er) framework of analysis capital exceeds the limits imposed by the
and measurements for bridging and bonding present paper. I will however attempt to
social capital. Secondly, it helps explain highlight some of the important arguments
partially the dynamics of social capital advanced by scholars with regard to
particularly of the resources embedded in development.
social relationships as a result of repeated Woolcock & Narayan argue that bridging
interaction. According to the homophily social capital is the particular type of capital
principle, the more individuals interact and needed for economic advancement, poverty
communicate with each other, the more reduction and empowerment of the poor [19].
similar they tend to become [9]. Therefore Poor communities are often rich in bonding
from this perspective, repeated interaction, social capital and do not manage to alleviate
leads as suggested by Burt [13] to redundant poverty because they lack the resources and
resources (the case of too much bonding access to power that is necessary to shift the
social capital). rules of the game in their favour [19, p.7].
Third, understanding bridging and Therefore bridging social capital is extremely
bonding social capital in terms of degrees of important for the poor to overcome their
diversity present in a group helps illustrate limits and to prevent them from remaining
how and why bridging and bonding are not trapped in their condition. While intra-
mutually exclusive. Since individuals may be community ties are important for
different in some characteristics and quite strengthening the communities, creating
similar in others, we cannot claim that a solidarity and loyalty and even granting
particular group or community has only access to resources, it is in fact the diversity
bonding or bridging social capital. This is in of such resources that increases welfare: as
fact consistent with Putnams view who the diversity of the social networks of the
argued, that bridging and bonding should be poor expands, so too does their welfare [19,
understood in terms of more or less and not p.9].
in terms of either-or [1, p. 23]. This why, Yet, several scholars - including
referring to bridging and bonding in terms of Woolcock and Narayan - draw on the
degrees of homophily/heterophily might example of the Grameen Bank mechanism to
facilitate both understanding and illustrate how social capital is relevant for
measurement of the two types of social poverty alleviation. Indeed, Grameen Bank,
capital. known worldwide as the most successful
microcredit program for the poor, is based at
4. Bridging and Bonding for Development its core on social capital [20]. First, since
loans are given to groups of people, receiving
As it has been suggested by Briggs [12] a loan from Grameen Bank requires the
and Putnam [1], [2] bridging social capital mobilization of bonding social capital as
appears to be important for getting ahead collaboration and trust. By contrast to a
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regular bank, Grameen Bank uses social perspective centred on trust [25]. In his view
collateral to ensure the repayment of loans bonding social capital is more likely to
[20]. As Hossain argues, the closeness of ties generate particularized trust while the
in Bangladesh villages exerts a pressure over bridging type is important for enhancing the
the members of the groups because wrong- generalized trust in a society. Also,
doing of one person can badly affect the generalized trust and bridging social capital
reputation of that person in the society [20, appear to reinforce each other: But the more
p.18]. In this case bonding social capital is demanding forms, those that really tie us to
essential for getting a loan from the bank. people unlike ourselves, both depend upon
Secondly, the Grameen Bank mechanism generalized trust and reinforce it [25,
forces poor people to interact on weekly p.105]. According to Uslaner the
basis with the employers of the Bank, moralistic trust is vital for the health of
allowing them to acquire bridging social societies because not only it promotes
capital. In this process, borrowers come to be tolerance and fosters altruistic behaviour but
exposed to different information about is equally valuable for corruption and
education, sanitation, health etc. which criminality reduction [26].
enables them to change and improve their On the other hand several studies show
life-standard [20]. In other words, that bonding social capital is also critical for
relationships with the people unlike them developing sustainable and prosper
and the presence of heterophily in their communities [27], [28]. Strong ties drive
networks, has an empowering role in poor civic engagement and help individuals act
peoples lives, beyond the economic collectively and pursue common goals, which
empowerment. Evidence shows for instance in turn is beneficial particularly for deprived
that participation in the Grameen Bank loan groups in order to raise awareness of their
mechanism increased contraception use and problems and also to create pressure for
decreased domestic violence against women institutions and governments in charge with
[20], [21], [22]. Thus, in this case both the design of public policy.
bridging and bonding social capital play an
important role in economic advancement. 5. Conclusions
Similar arguments hold true in the case of
entrepreneurship, including entrepreneurship The present article has been an attempt to
of the poor. Any entrepreneur interested in highlight some of the implications of
starting his/her own business may rely on bridging and bonding social capital for socio-
strong ties family and close friends in the economic development. I have tried to
start-up phase. Levitte [23] underlines the capture the relevance of these two types of
role of bonding social capital both as support social capital for the welfare of individuals
group and as marketing tool - through and communities while simultaneously
word of mouth. However, the growth of the underlining some of the tensions present in
business comes with particular needs and studies interested in better understanding
challenges in different stages of how the bridging bonding differentiation
development. This is where bridging social benefits socio-economic theory and practice.
capital becomes necessary and valuable. The Perhaps the most important conclusion up to
link to diverse networks, professional this point is that even if bridging social
associations and groups can open access to capital has been often privileged by scholars,
new useful information, diverse connections evidence shows that bonding social capital is
with different expertise which are extremely equally important for sustainable
valuable for business development. The development. Furthermore, the utility of the
bridging/bonding distinction explains why (potential) benefits derived from weak or
for instance professional networking is strong ties may vary according to situational
valuable for entrepreneurs. In fact, Naphiet & and contextual factors. Therefore further
Ghoshal [24] argue that the ability of firms to theoretical and empirical effort is required to
mobilize social capital explains the uncover the bridging/bonding dynamics in
performance differences between firms. specific cases and at different analytical
Uslaner brings in the forefront the role of levels. A context sensitive, in-depth
bridging and bonding social capital from a understanding of network benefits will help
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make bridging and bonding social capital Ties: A Network Theory Revised,
better serviceable for development theory Sociological Theory, 1983, Vol. 1, pp. 201-
and practice. 223
[12] Briggs, de Souza X., Social Capital and the
Cities: Advice to Change Agents, paper
6. Acknowledgement presented at the International Workshop on
Community Building The Rockefeller
Foundation, Bellagio, Italy October, 1997
This paper is supported by the Sectoral [13] Burt, R.S., Structural Holes. The Social
Operational Programme Human Resources Structure of Competition, Harvard University
Development (SOP HRD), financed from the Press, Cambridge, England, 1992
European Social Fund and by the Romanian [14] Geys, B., Mudoch, Z., Measuring the
Government under the contract number Bridging versus the Bonding nature of
POSDRU/159/1.5/13367 Social Networks: A Proposal for Integrating
Existing Measures, Sociology,
7. References SagePublications, Vol. 4 (3), 2010, pp. 523-
540
[1] Putnam, R., Bowling Alone. The Collapse [15] Raiser, M., Social Capital and Economic
and revival of American Community Simon Performance in Transition Economies. In,
& Schuster Paperbacks, Rockefeller Centre, D. Castiglione, J.W. van Deth & G. Wolleb
New York, 2001 (Eds.), Social Capital Handbook, Oxford
[2] Putnam, R.D., Feldstein L, Cohen D. Better University Press, New York, USA, 2008
Together: Restoring the American pp.491-520
Community. New York: Simon & Schuster; [16] Szreter, S., Woolcock, M., Health by
2003. association? Social Capital, Social Theory,
[3] Narayan, D., Bonds and Bridges: Social and the political economy of public health,
Capital and Poverty, Working Paper Poverty International Journal of Epidemiology, Vol.
Group Prem., Poverty Reduction and 33, No 4, 2004.
Economic Management Network, Poverty [17] Rothstein, B., Stolle D. Political institutions
Division, July, World Bank, 1999 and generalized trust, Castiglione, D., van
[4] Ahn T.K., Ostrom, E., Social capital and Deth, J. W., Wolleb, G. (eds.) The Handbook
collective action. In Castiglione, D., van of Social Capital, New York: Oxford
Deth, J. W., Wolleb, G. (eds.) The Handbook University Press, 2008, pp.273-303
of Social Capital, New York: Oxford [18] Lazarsfeld, P., Merton, K. R., Friendship as
University Press, 2008, pp. 70-101 a Social Process: A Substantive Analysis. In
[5] Solow, R. Notes on Social Capital and Morroe, Berger, Abel, Theodore & Page,
Economic Performance. In Dasgupta, P., Charles, Page (eds.), Freedom and Control in
Serageldin, I. (eds.) Social Capital. A Modern Society, New York, 1954, pp.18-66
Multifaceted Perspective. Washington DC: [19] Woolcock, M., Narayan D., Social Capital;
The World Bank, 2000, pp. 6-13. Implications for Development Theory,
[6] Fukuyama, F., Social Capital and Civil Research and Policy, The World Bank
Society, International Monetary Fund Research Observer, August, Vol. 15, No.2,
Working Paper, April, 2000 2000, pp.225-249
[7] Coleman J. S., Social Capital in the Creation [20] Hossain, D.M., Social Capital and
of Human Capital, The American Journal of Microfincance: The Case of Grameen Bank,
Sociology, Vol. 94, 1998, pp.95-120 Bangladsh, Middle East Journal of
[8] Lin, N., Social Capital. A Theory of Social Business, Vol. 8 Iss. 4, October, 2013, pp.
Structure and Action, Cambridge University 12-20
Press, Cambridge. United Kingdom, 2004 [21] Hashemi, S. M., Schuler, R., Riley, A.P.,
[9] Lin, N., A Network Theory of Social Rural Credit Programs and Womens
Capital. In, D. Castiglione, J.W. van Deth Empowerment in Bagladesh, World
& G. Wolleb (Eds.), Social Capital Development, Vol. 24, No. 4, 1996, pp.635-
Handbook, Oxford University Press, New 653
York, USA, 2008 [22] Rouf, K. A., Grameen Bank and its Sister
[10] Krishna, A. Social capital and economic Organizations Grameen Check and
development. In Castiglione, D., van Deth, Grameen Krishi (Agricultural) Foundation
J. W., Wolleb, G. (eds.) The Handbook of not only providing credit: They Guide the
Social Capital, New York: Oxford University Landless Families in Bangladesh for Their
Press, 2008, pp. 438-467. Development, Global Journal of
[11] Granovetter, M., The Strength of Weak Management and Business Research, Vol IV,
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Section II
Business Economy and Administration
***
Subsection 1
Economic and Social Studies
Ovidius University Annals, Economic Sciences Series
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Bnrescu Adrian
Postdoctoral researcher at the Institute of National Economy, Romanian Academy
rescuadrian@yahoo.com
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developing plans and establishing appropriate qualified personnel that applies the standards
methods and tools for transition from of information analysis within the process of
disparate applications to a single platform. analysis.
Information integration should be seen as an Auditors and fraud investigators must be
ongoing and long-term strategic investment, conversant with the key conditions for
because its benefits are not revealed detecting fraud. There are five such
immediately but in time [2]. conditions: determine the organizations risk
The current technological development of fraud by studying its operational and
shows that the use of data analysis processes control environments to identify risk
is not to an option for the current business categories and exposures; assess the risks and
environment, but an objective necessity, so exposures; examine the risks and exposures
that the application of analytical methods and from the fraudsters perspective, to determine
techniques will be a requirement for survival what he or she can control or manipulate to
of economic entities, a means of risk control make the fraud possible; understand the
management. symptoms of fraud and data sources that may
contain those symptoms; be alert to the
2. Choice of field-specific analytical occurrence of symptoms and know how to
solution look for those symptoms in the data. [3]
Carrying out a risk analysis program
In order to implement this approach, it would allow determination of those areas
should be considered that the analysis of data which are more exposed to fraud. By
and information is predetermined by the applying filters, can be detected significant
types of decisions that happen in an risk fields for fraud (hot spot), by taking into
organization: strategic (top level account indicators as: risk nature , the degree
management processes and their impact on of exposure to risk, the predominance of a
the organization's resources and the socio- particular type of activity, the probability of
economic context of the conduct of occurrence of risk, risk impact, risk
commercial activity. Ex: changes of responsiveness of control structures etc.
legislation, investment in certain resources, As a result of conducting a risk analysis,
professional training, retraining/changes of through a scoring system, is set a certain
internal working procedures, changing the level of exposure to the risk of fraud,
ways of collecting information, entries on according to some general indicators of risk.
new market etc.) and operational (at the The system should facilitate the analysis of
level of executive management and their fields risk, possible risk scenarios and
impact on work processes at the executive assumptions of risk, by analyzing internal
level: e.g.: decision of notifying the and external data. Later recommendations
competent structures for suspected fraud, can be made on the extension or reduction of
assessing referrals/complaints of fraud, risk fields, scenarios or assumptions.
claims decisions etc.) In order to manage risk issues we
For each type of decision from different recommend a system with the following
institutional levels, data and information features and technical specifications: (i) high
analysis provides information products for storage capacity of historical data and its
their substantiation. Information products are validation (those related to operational risk,
the result of methodological approach of to the risk fields, to various events relevant
information analyst (embodied in the for the field of risk analysis etc.); (ii)
evaluation report, the analysis report) that possibilities for manually or automatically
marks the completion of the analytical introduce data; (iii) the possibility of creating
approach of the information within the lists of risks; (iv) updating of risk indicators;
framework of intelligence-led management (v) creating and modifying rules of risk
(decision-based substantiation of analysis; (vi) scoring system adapted to
information). institutional needs; (vii) ability for real-time
Information products are: strategic monitoring of risk fields; (viii) possibility for
assessments, tactical evaluations, target sorting, filtering, query, selecting data; (ix) to
profiles and problem profiles. Obtaining incorporate various data visualization tools,
informational products is carried out by facilitating decision making process; (x) have
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advanced editing tools; (xi) to facilitate display of entities and relations; to allow
analyses of scenarios; (xii) to include a flag users to easily discover connections, patterns,
system for the level of risk; (xiii) analysis of and typologies of data from multiple and
the evolution of risk indicators; (xiv) different sources; to make possible to choose
generate reports that will be automatically a predefined import/export design to create
sent to authorized structures; (xv) premises to an association between entities, as well as
create risk profiles; (xvi) possibility of saving the created import specifications; to
generating reports according to some allow a predefined import arrangement to
templates; (xvii) statistical analysis capacity. automatically create entities, relationships
Although there no are solutions covering and attributes; to permit the examination and
the entire range of situations generated by interpretation of data, eliminating duplicates,
forms of manifestation of fraud, any minimal merging the attributes; to display the data in a
(basic) package, for the construction of a visual form that exhibit a certain sequence of
system for prevention and detection of fraud events; make it possible to automatically
should include: the text conversion software; arrange in chronological order of events
series like Microsoft Office or equivalent; associated with other entities; to prepare
add-ins for that series, allowing the statistical reports, graphs and diagrams
increasing capabilities of analytic utilities; necessary to the operations based on
other tools for cleaning, combination or information analysis; to allow multiple
processing of rough data. The most important methods of visual representation of
tool in detecting fraud is data analysis information through charts: geospatial,
software. It is recommended to use a data association, temporal, statistical etc;
analysis software to allow the import of customize diagrams, charts created by adding
various types of files (e.g., Dbase, Microsoft entries defining: author, category, comments,
Access, Microsoft Excel, Adobe pdf, Odbc, references, keywords etc; ability to save
text delimited, xml etc.). Import interface diagrams in .pdf or .jpg; to support large
must be friendly, must contain elements of numbers of concurrent users running a
selection/customization of import as intuitive variety of applications that operate with the
as possible, in order to facilitate the relevant same data; allow visual query of a database
activity. without requiring knowledge of query
According to the investigation that I languages; allow the identification of key
conducted on the analytical products market entities which control the network
(Actimize, Activedata, Bankware.Net, Clari5 information, entities best placed within the
Efm, Esurksha, Fair Issac Falcon Fraud network and that have the best visibility over
Manager, Firststrike Fraud Detection, Fraud the network activity, the most active entities
Analyst, Fraud Barrier, Fraud Risk or the most important ones.
Manager, Fraudguard, Fraudnet, IBM I2, At the same time, it is recommended that
Minfraud, Oracle Bharosa, Palantir, Patriot the analytical software to allow carrying out
Officer, Sas Financial Management, Sentinel specific tests to identify the pattern of fraud.
Visualizer, SPSS etc.), I've found that Another aspect to be taken into account in
manufacturers tend to offer high-performance the construction of a system for the
products. One of the main advantages that prevention and detection of fraud is
offer a data analysis software is that it is introducing tools for predictive analysis.
accessible inclusive to non users/experts in These would enable analysis and running of
programming or economic statistics. At the large amounts of data, in order to achieve an
same time, for more experienced analysts are appraisal regarding the development of a
included advanced tools with high potentially fraudulent behavior.
sophisticated features. In table no. 1 are presented in comparison,
Data analysis software, in order to be an synthetic, the capabilites and specifications
effective tool, should include a number of of the analytic system for detecting fraud and
functionalities and to facilitate the carrying also of the predictive analytics system.
out of various activities, like: to permit
comparative analysis of available data; data
viewing in various forms; dynamically
applying algorithms for sorting, filtering,
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Table 1. Comparative analysis company [5], it was found that entities use
Fraud analytics Predictive analytics also data analysis investigative technologies,
(modeling) beyond the traditional tools of calculation
Uses historical data to Uses historical data to and operation of data bases. Therefor it was
detect fraud that has predict future generally observed the following advantages:
already occurred outcomes improved results and recoveries, 11% more
Linear process; the Nonlinear process; than others; earlier detection of misconduct,
steps are performed in steps can be skipped, 15% more than others; more cost-effective
order, and typically and the process is results, 14% more than others; higher
the process is not reiterative visibility to the board, 12% more than others.
repeated
A hypothesis is Models are defined 3. Practical aspects regarding
formed at the and created based on implementation of a data analysis solution
beginning of the fraud the particular business
engagement process
When defining, identifying, creating,
Analysis stage may Process is repeated if
implementing and operating the anti-fraud
continue longer than new data or different
expected if additional variables are
solution, with data analysis capabilities, we
hypotheses are formed discovered recommend taking the following steps and
Hypothesis is tested Models are tested to conducting the following activities:
and amended as determine success; analytical product/products
necessary modifications are identification - from a functional
made as necessary perspective, the defining criterion in
Fraud analysis is used Predictive modeling is choosing such a product is the number of
to locate fraud and can used to complement problems that can solve, and the capability
provide a model for the fraud analysis by of the system to meet the requirements of
future detection creating a process to the user. On the other hand, these needs are
show red flags influenced by financial and human
Data quality is Data quality is constraints, as well as by the risks involved
important to the important to the in the implementation of the analytical
analyst's ability to success of the model solution. In order to avoid the purchase of
discover the fraud an inappropriate analytical product, it is
Uses all available data Uses a sample of the recommended the testing of IT solutions,
available data within the testing period (the manufacturer
Constructs data Constructs data to fill offers the advantage of a free application for
(mean, median, mode) in missing variables a specified period of time e.g. 15, 30 days)
for statistical analysis and the identification of products based on
purposes the experience of other similar companies or
Fraud analysis is Models are repetitive organizations;
performed as needed, and cyclical in nature;
setting, as detailed as possible, of
not on a regular they are always in
the costs of the products and of
recurring basis, and process
ends with a final implementation and post implementation -
conclusion technical support, warranty, spare parts,
Looks for anomalies Looks for anomalies consumables, subscription (it offers to the
in the data in the data clients access to the latest updates of a
Outcome cannot be Outcome or final goal product with no additional costs, these
predicted and is must be specifically updates include any major changes made to
known only after the defined the product's architecture, as well as the
dissemination stage specific features of certain updates thereof);
Source: Spann D. D., 2014 [4] identify the working team to use the
antifraud system, establishing the criteria for
An argument in favor of introducing data the selection, the way and duration of
analysis software is that it ensures an training on how to use the integrated
increase in the profitability of the investment solution;
in investigative data analyses. As a result of creating working procedures;
an opinion poll conducted by an audit setting realistic implementation
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period in order to avoid exceeding the due the establishment of the team
date of execution; members and support staff;
the involvement of decision-making create working assumptions
representatives in the project and the (represents a very important stage, and
establishment of the clear mandate of each selecting the correct working paths will
member of the team. Avoiding the allow a moderate consumption of resources,
appointment of exclusive responsibility of time and energy);
implementing the task by a single entity carrying out the activities of the
(office, service, department etc.); proper data analysis (using the methods and
integrated solution provider should techniques of analysis):
prove that he supplied similar products formatting data, their
before and to present, if necessary, any processing for analysis;
evidence to prove the execution of the a homogenization of data of
service in good condition. the same type, their classification and
In the process of testing the analytical clusterization;
solutions you should consider a number of verification of data sets from
issues with regard to: the degree of databases in terms of their integrity and
compatibility with databases and technical completeness. Empty or unnatural records
solutions that already exist; the ability of negatively influence the whole process of
software to import data (most products analysis and, by default, the analytical
include a "wizard", which assists the user, finished product;
suggesting the steps and at the same time data import in the analysis
creating prerequisites for correctly placing software;
data); effective means of detecting an alleged set of specific attributes for
fraud scenario etc. each entity, and the links between them;
The application of analytical technique running various tests to look
involves the use of analytical tools and for symptoms, signs of fraud;
processes. Starting with the graphical running of multiple
representation of the analytic process (Figure sequences to identify issues of interest;
1), the system to be implemented should a preliminary data will be
facilitate the following activities: compared with other bits of data;
planning activities related to a data compare process
analyzing process: plays an important role in the process of
defining the problem to be analysing the data;
solved, the investigational area which shall identify, as appropriate, of a
be subject to analysis (although it seems a representative set of comparable items. The
logical step, we point out that most of the usefulness of this measure is to use positive
times the effects of fraud are not always and negative experience gained before by
visible); teams of analysts;
acceptance of analysis a re-evaluation of the results;
theme, following the discussions with the an export of this data in a
applicant and/or recipient of the analysis; specific format.
a negotiation of the reference development of an analytical product
terms ; (creating the fraud profile (will be taken into
development of the data consideration both the person and the
collection plan (identifying and determining current operating mode);
the sources of obtaining the necessary data the assessment of the analytical
for the analysis: public records (judgments, product;
records of mortgages, tax/criminal records), decide how to use the analytic
telematics, internet, open sources, social product (beneficiaries proposals );
environments, talks with customers, public disseminating the analytical product
infrastructure, internal sources etc.); for the beneficiaries
establishing the methodology results, operating modes, the entities
of investigation, of methods, techniques and involved in illicit activities may be archived
tools of work; and used later in the analysis, as elements of
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Belascu Lucian
Lucian Blaga University of Sibiu, Romania
lucian.belascu@ulbsibiu.ro
2. Sustainable development
1. Introduction
Sustainable development supposes
Acknowledging global problems (extreme economic growth (not zero or negative
poverty, environment degradation and growth) consistent with the demands of
climate change, uncontrolled urbanization, ecological balance (not simply with
licit and illicit migration, terrorism, economic preserving nature) and the entire human
and financial crisis, etc.), and the necessity of development, which means that all aspects
controlling them in order to find a solution regarding progress by man and for man
(to ensure survival in a world which does not (culture, science, civilization, equality and
only resume to macroeconomic indicators, equity between men, ethnicities, and nations)
but is primarily a social environment whose are taken into account [2]. From this point
general dynamic balance is at risk) has led to of view, sustainable development appears as
increasing concerns regarding sustainable a complementary process to the one made by
development (as a concept which, based on the transition to human economy which, in
the idea of equality of rights between future turn is a perspective born from the necessity
and present generations, has started to slowly of finding a profitable solution for men to the
replace the concept of economic economic, ecologic, financial, technical and
development). Rethinking the human-nature security problems of some entities caught in
rapports by shifting from the enemy status, the irreversible network of interdependence
for a non-declared war, to an ally status, [3].
within the so-called natural organization in By making the human being - in all its
which the economic process appears as a dimensions - a priority, the defining elements
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of sustainable development are given by: (i) ways of action, efficiency and effectiveness
general and universal compatibility between criteria are necessary on an economic and
the natural environment and the one created social, equity, feasibility, acceptance and
by man; (ii) maintaining equal rights of institutional compatibility level. At any level
generations; (iii) interpreting the present by of sustainable development, there should
thinking of the future and of maximizing the exist a strategic plan, with clear objectives,
profit in line with ecological security; (iv) the estimation criteria and measurement
compatibility of national development indicators, sustaining mechanisms (legal,
strategies with those of protecting the economic, and cultural) with the ecologic
ecologic environment; (v) assuring the process management, on each life cycle, as
general wellbeing by going from quantitative with the mandatory ecologic audit or with
aspects of growth to qualitative ones; (vi) developing new clean technologies for
redefining economic and social objectives, achieving zero defects, etc.
within which the ecological capital, the The new paradigm of sustainable
technical capital, the human capital are going development has changed the way companies
to find their place; (vii) subordination of do business, and this change means:
economic development objectives to the Instead of thinking that sustainable
recovery of man, understood as the most development means only costs and
complex creation. difficulty, companies understand that this
Sustainable development represents, concept means using resources efficiently
according to the Brundtlant Report, that and can generate opportunities;
type of development which satisfies present Passing from methods of fighting
needs without endangering the possibility for pollution based on treating its effects to
future generations to satisfy their own needs using more effective and less polluting
[4]. The main instruments and objectives of technologies on the entire production
sustainable development are improving the process and, moreover, trying to integrate
quality of life and spreading global progress. sustainable development in business
From a company point of view, the aim development;
regarding sustainable development is Passing from a linear approach,
achieved if it aims for a triple performance: concentrated on production, to a
economic, social and ecologic [5]. comprehensive, systematic approach,
In order to find the type of economic which include the production processes
growth, the control of pollution, creating a and their consequences;
legislative and institutionalized framework Passing from the perception that
adapted to them and efficient and new environment and social problems are the
systems: educational (able to anticipate and responsibility of technical departments
to deepen knowledge), economic instruments and experts, to the fact that there are, in
(which are able to prevent, to protect and to fact, the responsibility of the entire
assure rare resources), specific indicators company;
(after which we can estimate the quality of Exaggerated confidentiality and secrecy
peoples life and development), the strategy have been replaced with a politic based on
of sustainable development needs a series of opening and transparence;
short term and medium term strategies, The lobby politics with limited
which can be extended on the long term in perspectives have been replaced with
20-25 years; because of this, regional, open discussions with interested partners.
international and global politics are needed, In this era, which is characterized through
at a company and country level, with open geographical markets, and through a
objectives which are compatible in time and high mobility of companies, era of know-
space, based on some criteria which come how and of technology, a strategic direction
from improving peoples life. For grounding of the companys management can represent
these policies is essential that at each level the necessity that the success of the
functions some ways of regulation, with an companys strategic management should be
economic, legal, substitutional and measured in a dynamic perspective, using the
informational character, which can ensure evaluation of its social balance [6], of
planned objectives. In order to assess the
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contributing to achieving and number of line, the author expresses the idea that
social and economic objectives, not only business does not have just one objective,
through productivity, economic efficiency, added value, but it has to assume other
wanting the maximize the economic value of ecologic and social responsibilities, thus
the company. Thus, seeing sustainable tomorrows operation accountancy will
development more as an opportunity than a include, besides normal financial calculations
burden has proved to be a source of strictly economic of efficiency, a balance of
competitive advantage [7]. the activities effects on the environment and
This major objective is necessarily a balance of the consequences of these
compatible with taking into account the activities on the social context. The author
interests and the expectations of different devotes one chapter in his paper to the seven
categories of stakeholders, in a framework dimensions referring to the creation of
that maintains the priority of the economic strategies of those companies that have
role of the company, as this in not just a adopted or are going to adopt sustainable
holistic concept, but a system created to development (necessary to their own
make economic value; it actually represents survival): markets, values, transparence,
an important investment, explained by the technological cycles, partnerships, and time
trust given by customers, by capital suppliers, and corporation management.
by the engagement and the attachment of the This type of approach has been adopted
staff and by respecting the obligations of the by big global companies that show their
juridical, social and political environment in engagement to sustainable development and
which it operates. adopt reporting principles which are based on
the triple bottom line concept. Thus,
3. Translating the concept of sustainable companies reports contain information on
development from a macroeconomic to a their performance in all three areas of
microeconomic level interest, becoming an integrating part of
guiding principles strategies and
Applying the concept of sustainable implemented operations. The triple bottom
development to a company level takes into line concept has rapidly become one of the
account corporate responsibility resulting most famous concepts applied by companies
from companies necessity to adapt in order in order to do what is right; thus, there
to survive in a context radically changed by have been created consultancy firms offering
globalization and a higher civic activism. accountant services that respect the triple
This approach has been adopted by big bottom line principle; companies in the
companies which show their engagement to Fortune top 500 which are proud of including
sustainable development and adopt the 3BL approach in their annual reports;
reporting principles based on the triple various non-governmental organizations that
bottom line. encourage companies to adopt the 3BL. But
The concept of the triple bottom line there also are some authors who insist that
(3BL) has been introduced and sustained by the 3BL concept should be abandoned,
Elkington [8]. The cannibals whom the because it leads to reality distortion, being a
author refers to in the title of the paper are controversial principle that leads to only one
the companies which operate in continuous dimension of performance, the economical
evolution capitalist economies, where it is one; it simply shows the social and
natural for companies to devour its ecological impact of the business, without
competitors, while the fork offered to these being a measurement of performance, but a
cannibals to pass to a new phase of secondary concern of seeking economic
civilization is represented by sustainable performance.
business. By using the fork, everyone wins: In 2003, Stephen Young, Global
business, stakeholders, shareholders, society Executive Director of the Caux Round Table
and the environment. Thus, the author takes organization (an international network that
into account companies necessity to adapt in reunites mainly business leaders that promote
order to survive in a context which is being moral capitalism), publishes the paper
modified by globalization and a more intense Moral Capitalism. Reconciling private
civic activism. Through the triple bottom interest with the public good [9]. The author
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Bucaciuc Anamaria
University Stefan cel Mare of Suceava, Romania
bucaciuc_ana@yahoo.com
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Also, the regulations existing do not lead to and volunteer work which reduces even more
the desired quality level. the production costs.
In this context, a main contribution which On another bases, social enterprises can
can be brought by social enterprises is the create jobs when they are partly of fully
distribution of the income to levels closer to financed by public funds, which happens
the ones expected by the community. This when the activity of the organization has a
can be made through the nature of private high level of redistributive effect [6].
ownership and management of social
enterprises, which contributes to the 4. Social enterprises helping the social
modification of the distribution of resources cohesion and creation of social capital
and income. Also, they influence the
redistributive public policies, by addressing Social exclusion has become a bigger
services to groups of vulnerable persons who problem with time in the todays society. The
are not recognized by the public policies. factors of the social phenomenon are more
Beside the redistributive function, these complex than unemployment, poverty and
organizations are forced to innovate in the social exclusion, which mean that cash
field of services they provide [6]. benefits and standardized services are no
Another influence of social enterprises longer sufficient.
over the welfare system is the improvement Social enterprises however manage to
of the quality of services, through contribute to the improvement of community
privatization policies. The success of this wellbeing and social integration through their
process consists of the development of a work with specific vulnerable groups,
competitive environment and contractual integrating them into the labor market,
relations based on trust. Social enterprises, enhancing user protection for the
being closer to the aims of the public disadvantaged persons, improving service
authorities, facilitate the negotiation process supply and involving users in the
and not least, they contribute to the cost organization [6].
reduction for production, not being focused
on profits, being innovative and combining 5. Social enterprises as a local
the customer satisfaction with the worker development tool
guarantees [6].
Social enterprises tend to be small sized,
3. Social enterprises as a tool for the locally based organizations. They need to be
employment creation continuously linked with the local
community where they operate, this being a
Social enterprises play an important role condition for their development and
in the creation of jobs in the labor market, efficiency mainly because they facilitate the
though the work integration social enterprises creation and exploitation of the social capital,
which by their nature integrate in the labor they try to find the optimal combination of
market persons which normally do not have resources and they facilitate the
possibilities to be employed in traditional understanding of social needs.
enterprises or by developing a sector of Social enterprises mobilize the resources
service providers which has a high of small communities [7] and contribute to
employment potential. the local development by creating new jobs
A mean for this to happen is the for the community they serve. This
development of alternative policies which contribution would increase in time when
would change the composition of public there organizations would expand their field
expenditure from offering cash benefits to the of activity from social services to others, like
provision of services or founding services. cultural services, environment, transportation
Maybe a more important measure would and so on [6].
be the encouragement of private demand Also form the local development
growth and of the supply. These can be made perspective, social economy organizations
by social enterprises because they are granted for their economic and social
involved in low profitability productions, and nature, can offer a more clear perspective on
because they can benefit also from donations the way local communities progress their
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9. Acknowledgements
10. References
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2. Translation issues
1. Introdution
A definition of the term translation
It is well-known that, since ancient times, involves taking into consideration two main
language barriers can pose a great obstacle to approaches, i.e. translation as a product and
the process of efficient communication. One translation as a process. Thus, translation can
of the biggest challenges faced by translators be defined as the action of converting the
is represented by the constant development of information or the meaning of a source text,
terms and concepts, which should be and the production of the equivalent target
communicated accurately into the target text that communicates the same information
languages. The high level of precision that is or message in another language [2].
necessary in the translation of specialized Etymologically, translate means to
texts, such as technical texts, is what carry across a message or a text. It has also
distinguishes it from the translations in other been defined as a process of communication
fields of knowledge. that involves a sender and a receiver. Like
The main aim of this paper is to provide any other forms of communication, the
information for a better understanding of sender sends a message that is coded in a
technical translation, which, many times, has certain way. This code is received and
been referred to as including medicine or analyzed or decoded by the receiver [3]. The
even law translations [1]. We have decided to communication is mediated through a third
tackle the terminology used in the industry of figure, i.e. the translator, who decodes from
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the field of technical translations and that glossaries, parallel texts and even visual
technical refers to technological texts. Just dictionaries in order to render the precise
because there is a specialized terminology, information in the target language, i.e.
does not make something technical, stated Romanian.
the above-mentioned author [10]. Her In what concerns the terms used in
arguments are based on the example of general language, we have had to operate
religion, which has a very specific several selections according to the context.
terminology and style, but it is never For instance, the term design, a very
regarded as technical. common neologism used in Romanian
language, can pose linguistic difficulties if it
5. Translation analysis. Case study appears within the same phrase. Bearing in
mind that a translation must comply with the
This analysis deals with the difficulties in grammatical norms of the TL and that it
translating a technical text from English into involves avoiding repetition, there were
Romanian language. The source we have instances in which we have used the term
used for our analysis is a textbook, i.e. Wind design but also proiectare. For example,
Energy Explained: Theory, Design and the phrase these will be influenced by the
Application, which is aimed at engineering turbine design and must be considered during
students and, as the authors state in its the design process has been given the
preface, the book is also intended to be used following translation: acestea vor fi
by anyone with a good background in math influenate de ctre designul turbinei i
and physics [11]. trebuie luate n considerare n timpul
The corpus we have selected for our procesului de proiectare.
analysis acquires the features of technical In some instances, we have applied
writing: formal and object-centred language modulation, as a translation technique,
(use of passive voice), well-structured changing the grammatical category. Thus,
organization of the text which enables the the impetus is also there to keep... has
logical flow of the information; short and become este necesar s se menin....
comprehensive sentences, especially when There has been a change at the semantic level
describing processes and operations; too since in dictionaries, the meaning of
specialized terminology: wide range of impetus is a moving force, a stimulus, an
technical terms. impulse. Another example where we applied
The main difficulty encountered in the principle of modulation is the constraint
technical translation is represented by the of minimizing cost of energy has far-reaching
specialized terminology. During the implications, translated as a ine costul de
translation process, we have had to deal with energie minim reprezint o constrngere cu
terms from various fields, such as implicaii vaste.
engineering, mechanics, physics, architecture We have dealt with English terms, such as
or constructions. Therefore, a number of couple and torgue, both translated in
terms have been selected and analyzed in Romanian with cuplu but designating
order to motivate the translating choices: different concepts within the same field of
airfoil, azimuthal position, backlash, bearing, mechanics. According to technical
blade, caliper, cantilever, chord, fatigue, dictionaries, in mechanics, a couple is a
hinge, hub, load, moment, pitch, skin, wake, system of forces with a resultant moment.
tower, etc. The resultant moment of a couple is called
As already mentioned, the most torgue. In physics, torgue is a moment of
challenging part of the translation was force (momentul forei, in Romanian).
definitely the terminology. We have had to Another example is speed and velocity,
deal with high specialized terms but also with both having the same meaning in general
semi-specialized ones. The text combines language but not in physics, where velocity
terms from a wide range of domains, such as is speed but with a direction vector
constructions, architecture, physics, associated.
maritime, aviation, etc. and we have had to We have tried to comply with the norms
research on each terms meaning in every of technical translation and technical writing,
domain, to study dictionary entries, focusing on accuracy, on rendering precise
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information and striving for the economy of [8] Pitar, M., Manual de Terminologie i
words because a technical translator has to Terminografie, Ed. Mirton, Timioara, 2009.
account for every word, every figure, every [9] Idem.
letter, every punctuation mark [12]. [10] Byrne, J., Scientific and Technical
Translation Explained: A Nuts and Bolts
Guide for Beginners, Saint Jerome
6. Conclusion Publishing, UK, Manchester, 2012.
[11] Manwell, F. J., McGowan, J. J., and Rogers,
This paper has attempted to raise L. A., Wind Energy Explained: Theory,
awareness of the difficulties a translator has Design and Application, 2nd ed., John Wiley
to operate with, regarding the technical field & Sons, US, 2010.
generally, and mechanical engineering, [12] Newmark, P., op.cit.
particularly. For this purpose we have
selected our corpus from an engineering
textbook Wind Energy Explained: Theory,
Design and Application, written by James
Manwell, Jon McGowan, both professors of
Mechanical Engineering at the University of
Massachusetts, and Anthony Rogers, a
former research engineer in Renewable
Energy.
The conclusion we have reached is that,
when translating a specialized text (such as
from the field of economics, law, medicine,
mechanical engineering etc.), the translator
should have a broad knowledge of the
subject-matter of the text translated.
Moreover, he/she should have a sense of
discrimination, be able to choose the most
suitable equivalent term from the literature of
the field or from dictionaries and the ability
to use target language with clarity,
consciousness and precision. The research we
have carried out has proved that each
translation is exceptional and should be
treated as a unique piece of linguistic art.
7. References
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Cznel Maria
Ovidius University of Constanta
The Faculty of Law and Administrative Sciences
maria.cazanel@gmail.com
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must be dismissed from the start. The recurrent indivisible, meaning it covers the entire asset
does not posses a certain claim in which regards until the full debt has been paid in full, and is
the building in question at the trial, because also opposable erga omnes. On the other hand
there is no written document to prove the the exception of non-performance is either
existence of the claim or a court order to force divisible or indivisible (similarly to
the defendant to pay its debt for the performance, which is of two types from a
improvements made to the building. [4] political point of view: divided and non-divided)
- The right to lien must be invoked and only applies to the Contracting Parties,
before the current and exclusive owner of the according to the principle of the relativity of the
asset, in the sense that the debtor of the sums to contract.
be paid to the holder and the rightful owner, has The holder of the lien has the right to retain
to be one and the same person. the asset erga omnes until the full payment of
In this regard, according to legal practice, the the debt. As an imperfect lawful right, the lien
owner of the asset cannot invoke the right of can be, therefore, opposed to both the debtor and
lien: In order for the request of lien to be the persons who act as assignees with a
allowed, the holder must be, partly, holder of an universal title thereof (unsecured creditors of the
asset which he does not own, and, partly, debtor).Binding also operates for preferential
creditor of the rightful owner of the asset. The creditors and the mortgagees of the debtor,
request made by the owner is inadmissible.[5] however, following the retention of the asset by
- Fact which transforms the lien into a the holder, as well as for the subsequent
tangible property, movable or subacquirer of theasset retained by the holder.
immovable. Moreover, the right to refuse the delivery of
According to the Case Law, incorporeal the asset is considered to be indivisible
movables are not to be retained (goodwills), no because the lien can apply to the entire asset
rare assets of a strict personal use.[6] until the debt has been paid in full. The creditor
- The respective asset has to be is allowed to retain the entire asset, until the
retained by the holder. full payment, even if the debtor has paid
In the Case Law, the Court of Appeal in Iasi, partially. In the event there is more than one
Civil Division, under verdict no. 683/2000 debtor, the fact that a part of them has paid their
considered that lien is acknowledged for the debt in full, does not stop the creditor from
creditor whose certain, liquid and exigible debt refusing to deliver the entire asset, even if is
regards the restitution of a movable and indivisible.
immovable asset, regardless of the value of the The indivisible character, which applies to
debt andof the asset, by the time the debtor- other real guarantees (pledge, special movable
owner of the asset- has paid the sums spent for privileges), in the case of the lien, it is justified
the conservation, maintenance or improvement through its nature. Being a means of constrain
of said asset.[7] meant to determine the debtor to pay its debt in
Contrary to that, the Court of Appeal in full, the right of lien excludes the establishment
Bucharest, 3rdDivision, verdict no.263/1983 of a ratio between the guaranteed claim and the
provided the following: the claim made by a retained asset. From this point of view, there is
constructor is not guaranteed by the lien of the an important difference compared to the
construction, this is due to the fact that the right exceptio non adimpleti contractus, which cannot
to retain the asset until the debtor has fulfilled its be used unless the unfulfilled obligation is
obligation is an exception to the common rule, sufficiently important.
and, thus, to the strictest of interpretations. The French Jurisprudence states that the right
Should the opposite theory be approved, the of lien can be enforced upon the totality of the
constructor would be allowed to indemnify the assets retained, the low amount of the claim
debt himself, via an exceptional and arbitrary being irrelevant. Moreover, this traced the limits
manner, without legal intervention.[8] of lien; in order to prevent abuse of rights and
2) Another distinction between the two inequality.[9]
institutions lies in the fact that the right of lien is
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On the other hand, the right of lien is In order to claim the right of lien, an essential
opposable to erga omnes, respectively: the condition must be met; there must be a
owner of the asset, its unsecured creditors, correlation between the debt to be paid to the
preferential creditors or mortgagees subsequent holder of the asset and the retained asset, there
to retention, tertiary purchasers of the asset, must therefore be a debitum cum re junctum
whose ownership title is subsequent to (objective or financial connexion). Thus,
possession of the asset by the holder, as well as exercising the right of lien is justifiable,
by other tertiary personae, foreign to the legal provided there is a constant and significant
contract which originated it. Moreover, it is connection between the claim and the retained
opposable to the subacquiring owner, as stated asset.
in legal practice.[10] On the other hand, the exception of a non-
In what concerns the exception of non- performed contract is the outcome of the
performance, it implies that the one who relationship of obligation. Therefore, two
enforces it is debtor of a payable obligation and obligations will have to be executed precisely, at
that he has no other reason for refusing to the same time, if the guarantee has not set a
execute their obligations than the refusal of the deadline for the debtor for the performance of
other party to perform its correlative the services, due to the fact that, at the moment
obligation.[11] of the conclusion of the contract, each Party
All this considered, there is also an desires to secure the commitment of the other
inconvenience consisting in the possibility of the and, especially, achieving the correlative
abusive use of the exception of non- obligation. To sum up, the notion of cause
performance, by the Party invoking it, whenever suffers a transformation at the moment of the
it refuses to fulfil its obligations, or whenever it execution of the contract. Therefore, if one of
opposes, in bad faith, this exception to the the Parties does not accomplish its incumbent,
contractual partner for even the minimum of the obligation that the other has remains
non-performance. In these situations it is causeless, which justifies the refusal to perform
necessary to exercise judicial review in relation it; reciprocity and interdependency of
to raising the exception, which results in obligations, the fact that each of them is the
sanctioning the Party exercising this right legal cause of the other, involves the
abusively. simultaneous execution thereof, thus, the
Moreover, the exception of non-performance possibility to plead the right of the exception of
implies, similarly to the rescission of the a non-performed contract, in case it is not
contract, a certain seriousness of the generating fulfilled, since it represents the provisions of the
factor of the non-performance, attributable to the contract. In case a Party were to be forced to
other contractual partner, while the holder of the fulfil its obligations before the other, this would
lien can refuse the restitution of the asset, represent a breach of contract. Therefore, the
regardless of the amount of the unpaid debt the temporary suspension of performance of the
debtor owes. contract is precisely the approach needed to
3) The right of lien is exercised in virtue of obtain its fulfilment under the conditions
the objective correlation between the asset and designed by the two parts upon signing.
the claim of the creditor, whereas, the exception Legal practice has decreed that in a
of a non-performed contract requires a synallagmatic contract, a party is forbidden to
volitional, intelligential between mutual make a request without offering to fulfil its own
obligations, arising from the same legal obligation; otherwise its request would be
relationship; being founded upon the theory of rejected through exceptio non adimpleti
the cause (in the sense that, every mutual contractus. The exception involves the
obligation is the legal cause of the other, simultaneity of mutual obligations, good faith
according to the reciprocity and interdependency from the one invoking it and the adequacy of the
of the obligations of the synallagmatic seriousness of its non-performance.[13]
contracts).[12] Therefore, the exception of non-performance is a
specific penalty of the fact that the Party,
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pretending to fulfil its obligation, does not Motica, R.I., Lupan, E., Teoria general a
choose to perform its duties under the contract obligaiilor civile, ed.Lumina Lex, Bucureti,
which it signed. 2005, p.369;
All this considered, the institution has proven [3] Com.14 juin 1988, Bull.IV, p.138 n Turcu, I.,
Pop, L., op.cit., p.226.
that the lien and the exception of non-
[4] CCJ, s.civ., dec.nr.5275/2004 n Pena, A.,
performance can coexist and not be mistaken for Garantarea obligaiilor. Culegere de practic
one another in the contracts between the same judiciar, ed.C.H.Beck Bucureti, 2006, p.47-
people.[14] The exception of non-performance 48.
has a tendency to suspend the performance of [5] CA Iai, sect.civ., dec.1381/2000 n Pena, A.,
the contract drawn by the creditor, before op.cit., p.70.
fulfilling his obligation. Therefore, the exception [6] Civ.9 oct 1985, G.P.1988, n Turcu, I., Pop, L.,
of non-performance implies the existence of the op.cit., p.227.
contract between the creditor and debtor, [7] Pena, A., op.cit., p.72, Jurc, C., Trandafirescu,
whereas the lien has a different origin and can be B.C., Cznel, M., Iordache, F., Naum, M.,
Curs de drept civil. Drepturile reale. Teoria
fulfilled outside of a contract between the Parts
general a obligaiilor, ed.Bren, Bucureti,
involved.[15] 2005, p.155.
[8] Pena, A., op.cit., p.81-84, Mihai, G., Arbitrajul
3. Conclusions comercial ntre libertatea convenional i
constrngerile ordinii publice n Curierul
As follow-up to this analysis, we must judiciar nr.10, serie nou, ed.C.H.Beck,
conclude that, in spite of the similarities between Bucureti, 2010, p.35.
these two judicial institutions (their [9] Voicu, M., Dreptul de retenie, ed.Lumina Lex,
functionality, the fact that both of them represent Bucureti, 2001, p.121;
[10] CSJ, sect.civ., dec. nr.1648/1990 n Pop, L.,
a guaranty of the fulfilment of their obligations),
op.cit., p.454.
they are in fact dissimilar and have their own [11] Deleanu, I., op.cit., p.342.
sets of rules of application, as a result of the [12] Kocsis, J., Excepia de neexecutare, sanciune a
basic distinctions, presented previously. nendeplinirii obligaiilor civile contractuale n
Therefore, in what regards those synallagmatic Dreptul nr.4/1999, p.8; Trandafirescu, B.C.,
contracts, there is merely an apparent overlap Dreptul comerului international, ed. Muntenia,
between these notions, giving rise to the Constana, 2008, p.75.
obligation of handing the asset in question over. [13] Curtea de Arbitraj Comercial Internaional
We have shown that the legal institution CCIR, sentina nr.117/2 iulie 1999 n Revista de
assimilates the exception of a non-performed drept comercial nr.6/2000, p.163.
[14] Sttescu, C., Brsan, C., Drept civil. Teoria
contract for the effects it produces.
general a obligaiilor, ed.Hamangiu, Bucureti,
Similarly, though under a different form, the 2008, p.80; Voicu, M., op.cit., p.81.
main effect lien has consists in enabling the [15] Pop, L., Tratat de drept civil.Obligaiile, vol.I,
guarantee, possessing the asset, to refuse its Regimul juridic general sau fiina obligaiilor
restitution until the debt has been paid in full, civile, Ed. C.H.Beck, Bucureti, 2006, p.455;
whereas, the main effect of the exception of a Kocsis, J., op.cit., p.7-8; Vidu, I.S., Dreptul de
non-performed contract is the suspension of the retenie n raporturile juridice civile,
performance of the services by the excipiens. ed.Universul Juridic, Bucureti, 2010, p.44.
4. References:
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Chiriac Irina
Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business
Administration
irinaochiriac@yahoo.com
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5 The impact of cultural differences and acculturation 2010 USA Cultural diferences
factors on post-acquisition conflict
Source: own processing using scientific databases Science Direct; SpringerLink; Wiley Online
Library; ProQuest Central; Oxford Jornals Collection; Cambridge Journal Online; Emerald
Publishing Group; Sage; Thompson ISI Web of Science; Scopus)
Most articles were main themes of merger Source: own processing with SPSS.18.0)
research: mergers and acquisitions in general Figure. 2. Classification of countries
(causes of failure of the merger, the impact of according to their interest in the issue of
the merger on employees, the impact of the merger of companies
merger on innovation, reasons to merge,
competition policy etc. (Figure 1.).
Fig.1.Main themes of research
merger companies
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required of them and opportunities for performance improvements over the years to
personal development (career, compensation companies involved in the merger process,
and benefits). namely:
In a McKinsey report there is the Leaders entities in many cases resorting
statement: "Too much attention is paid to to mergers and acquisitions of other reasons
legal and financial aspects of the merger or dect those related to value creation;
acquisition". But executives who passed Lack of collaboration between academic
routed through a merger recognizes that the researchers and practitioners involved in
key to maximizing the value of a company is merger and acquisition transactions and thus,
the human factor. Mergers fail because: lack insufficient exploitation of research results in
of communication, lack of a refresher course, practice;
losing key employees, the loss of major Research in the field of mergers and
customers, the cultural differences. acquisitions fail to address all aspects
According to the authors Kay Shelton, implication that these types of transactions.
problem employees are the major cause The conclusions of the study are based on
leading to failure of the merger. an analysis of top research (Articles analyzed
the impact factor H> 10). If they extend the
Table 2. Percentage of respondents who analysis and studies with lower impact factor,
believe that the problem is critical employees we will probably reach different conclusions.
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Chiriac Irina
Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business
Administration
irinaochiriac@yahoo.com
Georgescu Iuliana Eugenia
Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business
Administration
iuliag@uaic.ro
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N = + 1 * GDP + 2 * Smi + 3 * G + 4
Table. 1. The variables used in the
econometric model * D + 5 * I + 6 * R+ 7 * Dm + 8 *
Nr. Variables Economic Statistic Ggz + 9 * Gen +
Crt. expression vexpression
1 N Number of mergers Dependent The methodological approach was used
variable multiple regression model using SPSS 19.0
Variable
resultant
statistical tool
quantitative Size
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Pearso N 1.000 0.104 0.584 0.127 0.849 -0.047 - 0.124 -0.476 -0.368
C 0.523
GDP 0.104 1.000 0.444 0.023 0.537 0.435 - 1.000 0.084 0.159
0.500
Smi 0.584 0.444 1.000 -0.500 0.621 -0.471 0.621 0.227 0.393 0.480
G 0.127 0.023 -0.500 1.000 0.227 0.825 0.011 0.107 0.008 0.107
D 0.849 0.537 0.621 0.227 1.000 0.266 0.008 0.460 0.011 0.282
I -0.047 0.435 -0.471 0.825 0.266 1.000 0.107 0.165 0.127 0.023
R -0.523 0.227 0.435 0.107 0.312 -0.500 1.000 0.008 0.849 0.537
Dm 0.124 0.825 0.023 0.282 0.068 0.480 0.393 1.000 0.227 0.393
Ggz -0.476 0.266 0.621 0.159 0.825 0.621 0.227 0.825 1.000 0.008
Gen -0.368 -0.473 -0.500 0.312 0.011 0.107 0.435 -0.471 0.825 1.000
Sig. (1- N . 0.413 0.084 0.393 0.008 0.460 0.023 -0.500 1.000 0.227
tailed) GDP 0.413 . 0.159 0.480 0.107 0.165 0.537 0.621 0.227 1.000
Smi 0.084 0.159 . 0.126 0.068 0.143 0.435 -0.471 0.825 0.266
G 0.393 0.480 0.126 . 0.312 0.011 0.227 0.435 0.107 0.312
D 0.008 0.107 0.068 0.312 . 0.282 0.825 0.023 0.282 0.068
I 0.460 0.165 0.143 0.011 0.282 . 0.266 0.621 0.159 0.825
R 0.430 -0.523 0.124 -0.476 -0.368 0.430 - 0.266 0.621 0.159
Dm 0.267 -0.500 1.000 0.084 0.159 0.476 0.267 - 0.393 0.008
Ggz 0.412 0.621 0.227 0.393 0.480 0.537 0.621 0.412 - 0.126
Gen 0.370 0.011 0.107 0.008 0.107 0.435 - 0.370 -
0.471
N N 7 7 7 7 7 7 7 7 7 7
GDP 7 7 7 7 7 7 7 7 7 7
Smi 7 7 7 7 7 7 7 7 7 7
G 7 7 7 7 7 7 7 7 7 7
D 7 7 7 7 7 7 7 7 7 7
I 7 7 7 7 7 7 7 7 7 7
R 7 7 7 7 7 7 7 7 7 7
Dm 7 7 7 7 7 7 7 7 7 7
Ggz 7 7 7 7 7 7 7 7 7 7
Gen 7 7 7 7 7 7 7 7 7 7
Source: own processing using SPSS 19.0 statistical software.
the influence of the independent variables.
From Table. 3 it is noted that 95% of the The difference is attributable to other
variation in the number may be explained by temporary factors
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Abstract is an indicator
that shows the relative position of the world
In conducting this article we considered regarding the ability of each to create and
that the XXI century is considered the exploit knowledge; more precisely, this
century knowledge economy, because indicator is calculated by the World Bank
knowledge has become a vital asset for based on three distinct pillars, namely:
countries, companies and individuals. a) "education" pillar, given by average
Therefore, the knowledge economy is a years of schooling of citizens, registration in
concept that refers to the use of knowledge to secondary and tertiary education;
produce benefits, ie added value [1]. Thus, b) "innovation" pillar, which is
the benefit of the exploitation of knowledge determined mainly by the number of patents
(this resource materializes into inventions / issued annually, the number of journals /
innovations on new products / services magazines etc.
performed by firms) differentiates the c) "ICT" pillar, which is given by the
countries regarding growth potential and degree of endowment with phones,
global competitive position. Thus, we computers and Internet access for citizens
analyzed two global indices with great and employees of various organizations.
interest to explain how to obtain competitive
advantage and create national prosperity reflects a country's ability to create and
nationally and in terms of business exploit knowledge for economic growth;
organizations. This indicator includes KI (education,
innovation and ICT- Information and
Key words: Knowledge Index, Knowledge Communication Technology) and, in
Economy Index, "education" pillar, addition, includes an assessment of
"innovation" pillar "ICT" pillar called the government policies aimed to establish the
indicator of "economic liberalization". rule of law and the liberalization of economic
JEL: A10, F00, I21, O30. life for citizens and business organizations
(the fourth Pillar win be called the indicator
"economic liberalization" - IER).
1. Introduction
2. The opportunities of the knowledge
The consequences of having a volume / economy
stock of knowledge (understanding that such
stock is held by citizens and well qualified For now, referring to KEI and KI we
employees) by a country are found thus in believe that it is sufficient to point out that in
economic and social development, in the the global charts there are countries like
efficient production of goods and services, in Sweden, Finland, Denmark, Netherlands,
their marketing at small prices and offering Norway, New Zealand, Canada, etc.;
them to a large number of people [2]. I Romania ranks 44 (at the time of 2012) of the
mention that, recently, globally there are total of about 145 countries included in the
calculated two indices - KEI and KI - which ranking; other countries with emerging
allow understanding the detention of the economies are situated on modest positions
competitive advantage and national than Romania (Russia, Brazil, Mexico,
prosperity (http://web.worldbank.org): Thailand etc.) (http://web.worldbank.org). In
other words, we notice that certain centers of
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economic power that exists and manifests Education quality indicators etc.). This is
themselves globally (North America, some natural as we can discuss about a relative
Asian countries, etc.) have by default a positioning of the world for each of the four
favorable position in the rating given by pillars on which it is calculated the KEI index
synthetic indicators such as KEI and KI. (economic liberalization, innovation etc.).
KEI index provides relevant information To identify the impact of individual items
regarding the challenges and opportunities of (so-called pillars of the knowledge economy)
the knowledge economy; In other words, on which it is based the knowledge economy
governments will be better able, we believe, we will analyze the dynamics of key indexes
to devise appropriate macro strategies on for the pillars of the knowledge economy.
education, scientific research and stimulate Therefore the assessment of positions of
entrepreneurship [3]. Therefore, identifying various countries on the development of the
the strengths and weaknesses of each country knowledge economy will be based on Table
globally, helps to identify economic/policy 1. The table contains the top classification of
solutions necessary to implement the 10 countries of the world based on score
development programs at national and of aggregated index KEI (Knowledge
regional level. On the other hand, it is noted Economy Index) index EIR (The "economic
that the relative positioning of a country on liberalization" index), Education index,
the index KEI will be clearly correlated with Innovation index, and ICT index
other indicators / indices established for the (Information and Communications
major countries of the world (eg global Technology).
competitiveness index, innovation index,
Country Rank KEI Rank IER Rank Innovation Rank Education Rank ICT
index index index index
Sweden 1 9,43 4 9,58 2 9,74 6 8,92 2 9,49
Finland 2 9,33 2 9,65 3 9,66 11 8,77 6 9,22
Denmark 3 9,16 3 9,63 5 9,49 15 8,63 13 8,88
Netherlands 4 9,11 19 8,79 7 9,46 12 8,75 5 9,45
Norway 5 9,11 8 9,47 17 9,01 3 9,43 17 8,53
New 6 8,97 14 9,09 22 8,66 1 9,81 23 8,3
Zealand
Canada 7 8,92 7 9,52 10 9,32 16 8,61 24 8,23
Germany 8 8,9 13 9,1 12 9,11 23 8,2 8 9,17
Australia 9 8,88 29 8,56 19 8,92 2 9,71 22 8,32
Switzerland 10 8,87 6 9,54 1 9,86 41 6,9 7 9,2
Source: http://siteresources.worldbank.org/INTUNIKAM/Resources/2012.pdf p.3
According to the value held by the This was recorded due to lower gross rate in
aggregate index KEI it results that Sweden secondary education from 152% in 2000 to
(Table no. 1) [4] retains leadership (KEI 103% in 2012; the enrollment rate in tertiary
index with a value of 9.43) as the most education has increased over time, but not as
advanced knowledge economy in the world, fast as in other countries so that the score fell
and innovation pillar and ICT a pillar rank it from 9.72 in 2000 to 8.72 in the most recent
second in the world with a value of 9.49, period.
respectively 9.74. This position of innovation The data recorded in Table 1 shows that
pillar is due to increased payments of the Nordic countries are the best performer in
dividends and receipts, of articles of science terms KEI indicator (occupying the first 5
and technology and patents; Sweden's places in the world rankings); all four KEI
competitiveness in the ICT pillar is largely pillars (knowledge economy) are well
reflected in the increase in Internet users. In developed and balanced; Sweden, Finland,
this context we note that pillar of education Denmark and Norway are characterized by
dropped from 3rd in 2000 to 6th in 2012. their particularly strong performance in the
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IER pillar; education index value ranks them developed country of the Nordic countries in
among the top 15 countries. Performance the fields of innovation and the Information
over the last 12 years highlight the fact that Technology and Communications.
Finland has recorded an increase of the KEI A general representation of the top 10 -
indicator due to improvement of IER indices that affect the world's economies -
indicator, education index and index of ICT; highlights the fact that each member pillar of
They recorded the strongest performance in Knowledge Economy Index has a world
innovation and IER, for which it is found in ranking of countries based on the value that
the top 3 countries. Denmark has shown these measures in those areas. They are
impressive improvement in IER manifested therefore recorded performance of the pillars
by its positioning on 3rd place in 2012 (from KEI following the development of
8th in 2000); ICT pillar lost 10 positions innovation, raising the level of education,
reaching to 13th place in 2012. Norway is improvements to the Information Technology
characterized by increase of the KEI index - and Communications and not least of
reaching the 5th position as a result of involvement in boosting the economy (Table
progress in the IER pillar; It is the least no. 2).
Owning certain incentives that can lead to ranks 9 in the innovation pillar - a situation
achieving performance in the economies of due to the large number of patent registration
the world provides the opportunity to identify / 1000 people.
the contribution and involvement of each The presence of different variables in the
indicator. We find, therefore, that for knowledge economy highlights position of
countries such as Singapore, Hong Kong different countries in the education pillar
(China) and Canada regulation of tariff and ranking. Thus, we see that the gross
non-tariff barriers places the three countries enrollment rate of young people in the
on the 1st, 5th (Hong Kong won 11 places in secondary sector (133%) and the average of
the period 2000-2012) and 7th in the IER years of schooling (12.7 years) placed New
(The "economic liberalization" indicator). Zealand and Australia on positions 1 and 2,
Assessment of countries classified in the while variable: the gross enrollment rate of
second pillar - Innovation - is realized by young people in the tertiary sector positioned
analyzing the number of articles published in Greece on the 5th place in the ranking of
journals of science and technology / 1,000 Education Index. We note also that Iceland
people, the number of patents granted by the recorded a growth rate of enrollment of
USPTO by increasing fees, etc. The results young people in the tertiary sector (from 45%
positioned Switzerland on the first place in to 74%) which led to placing it in 7th place in
terms of Innovation Index while Singapore the standings Education Index. 6th position
has progressed which resulted in its in the Education Index ranking is occupied
positioning on the 4th; Canada ranks 10 (due by Sweden, the country that registered a
to the decrease in the number of articles decrease in the gross enrollment rate of
published and granted patents), and Taiwan young people in secondary education (from
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152% in 2000 to 103% in 2012) and an by Britain since it experienced rapid growth
increase in average years of tuition and in the number of internet users / 1,000
enrollment rates in higher education. inhabitants and an increase in the number of
The value of the fourth pillar of KEI computers / 1,000 people. On 3rd is
component - information and Luxembourg due to fast growth in the
communications technology (ICT) is given number of telephones (fixed and mobile) /
by the variables: the number of telephones 1,000 people and the increasing number of
(fixed and mobile) / 1000 inhabitants, the internet users / 1,000 inhabitants, while
number of computers / 1,000 inhabitants and Germany is ranked 8th in the standings Index
the number of Internet users / 1,000. The ICT due to increased ICT in all three
result of these assessments is found in the variables. 9 and 10 positions are held by
ranking held by ICT index and its Taiwan and Hong Kong as a result of the
contribution to the creation, exchange and increasing number of computers / 1,000.
processing of information in a knowledge The analysis presented brings to the
economy. Thus, we see that on the 1st place is forefront the study of the existing situation in
situated Bahrain in the ICT index ranking the knowledge economy index and the value
(increased from position 40 in 2000 to held by each of the four pillars of KEI index.
position 1 in 2012), due to the increasing Indicator assessment identified variables
number of internet users / 1,000 inhabitants decreases and increases of the four pillars
(from 60 in 2000 to 820 in 2012), the which imposed finding solutions / strategies
increase of the number of telephones (fixed to improving their values. This can be
and mobile) / 1,000 inhabitants (from 580 in achieved as a result of recording significant
2000 to 2290 to 2012) and the increase in the progress in education, innovation,
number of computers / 1000 people (from information and communication technology
150 in 2000 to 750 in 2012). 4th place is held (Table no. 3).
Country/ KEI KEI KEI IER IER Innovati Innovati Education 2012 ICT 2012
Economies change of 2012 change of 2012 on on change of educatio change ICT
position Rank position Rank change position n of position
of position position
position
Saudi +26 50 5,96 +17 60 0 84 +30 58 +45 21
Arabia
Oman +18 47 6,14 -9 44 +26 57 +15 74 +19 55
Macedonia +16 57 5,65 +34 59 +10 69 -12 78 +17 48
Azerbaijan +15 79 4,56 +24 103 +14 89 +8 53 +26 78
Albania +14 82 4,53 +50 71 +8 101 -16 83 +37 72
Algeria +14 96 1,79 +23 115 +6 99 +21 71 +21 89
Rwanda +14 127 1,83 +45 95 +10 134 +2 137 +3 143
Belarus +11 59 5,59 +21 114 +5 60 -1 33 +20 47
Romania +9 44 6,82 +20 40 +10 53 +19 29 +5 59
Russian +9 55 5,78 +15 117 +11 40 -17 44 +19 44
Federation
Source: KAM 2012. Reconstructed from the KAMs KEI and KI indexes mode
www.worldbank.org/kam p.7
The data table no. 3 shows that, most phones, the number of internet users, the
progress are recorded by Saudi Arabia, the number of computers has led to a substantial
country whose KEI index climbed 26 strengthening of ICT pillar.
positions to 50th position in 2012 with a With significant improvements in
value of 5.96. Significant improvements innovation, education and ICT, Oman is
occurred in education pillar (from position 88 ranked 47 in the KEI ranking (from position
in 2000 to position 58 in 2012) due to the 65 in 2000 to position 47 in 2012). Progress
increasing value of gross enrollment rates of in innovation pillar were due to rapid growth
young people in the secondary sector; in the number of patents registered;
increasing the number of fixed and mobile increasing the number of phones, the number
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of computer and internet users have also led the KEI and / or some of the four pillars
to a climb of 19 places in the ICT pillar (from (examples are countries in table no. 3);
position 72 in 2000 to position 55 in 2012). meanwhile, other countries have experienced
We note that most of the winners are a deterioration in their relative positioning on
mainly middle-income countries; Azerbaijan the KEI and / or certain components on
climbed 15 places in KEI and 26 places in education, innovation etc. (In this last
ICT pillar; Macedonia climbed 16 positions category are included countries such as
in KEI and 34 positions in the IER; Albania Argentina, South Africa, Jordan, etc.).
has risen 14 positions in KEI; Belarus In terms of economies / countries that are
jumped 11 places in KEI; Romania and the within the area of "middle" of the league on
Russian Federation have made some KEI (from position 55 to position 95,
remarkable changes in 3rd and 4th pillars of according to table no. 4), we find that in such
the knowledge economy index. situations are recorded changes in increase /
Thus, we can conclude by saying that the decrease in the value of some of the pillars
relative positioning of the main countries of that give the contents of this indicator, as
the world on KEI and on each of the four appropriate. For example, between such
"pillars" that underlie the calculation of this country is Russia, which has improved the
indicator is somewhat fluctuating from one ICT pillar positioning (from position 63 in
year to another. Depending on 2000 to position 44 in 2012), but also
macroeconomic strategies and how registered a worsening education pillar due to
companies and individuals react to certain depreciation of the quality of the countrys
government policies, some countries have education system.
managed to improve their relative position on
Table no. 4. KEI index: the median ranking; economies with modest incomes per inhabitant
Country/ KEI KEI IER IER Innovation Innovat Education Education ICT position ICT
Economies position indexes position indexes position ion position indexes indexes
indexes
Brazil 60 5,58 82 4,17 51 6,31 61 5,61 58 6,24
Russia 55 5,78 117 2,23 40 6,93 44 6,79 44 7,16
India 110 3,06 99 3,57 76 4,5 111 2,26 122 1
China 84 4,37 97 3,79 54 5,99 95 3,93 94 3,79
Tunisia 80 4,56 96 3,81 70 4,97 89 4,55 79 4,89
Ukraine 56 5,73 93 3,95 59 5,76 21 8,26 77 4,96
Source: http://siteresources.worldbank.org/INTUNIKAM/Resources/2012.pdf p.9
Regarding other countries, such as India, (roughly between 7000-8000 USD per capita
China or Ukraine, that are still in the middle to 10,000-12,000 USD per capita) the
of the ranking KEI, we find that their relative situation on the KEI rating is one specific to
positioning tends to improve over the last the middle area of the ranking; in such
decade (e.g., India has improved its position countries economic liberalization, education
in terms of innovation from 96th place in and innovation recorded modest positioning
2000 to 76 in 2012); however, the overall compared with developed countries of the
situation of countries in this category remains world.
fluctuating and dependent on macroeconomic
strategies developed by governments, the 3. Conclusions
corporate sector performance and quality of
capital in these countries. In other words, we In conclusion we can talk also of a certain
notice that there is some correlation (partial) partial correlation between the structure of
between socio-economic situation of the national economies (for countries like India,
main countries of the world, such as China, China, Russia to Western countries) and the
India or Russia, and the rating based on KEI. position held by such countries in the KEI
For the purposes cited we conclude that in ranking. More specifically, we can infer that
countries where GDP per capita is relatively there is some partial correlation between a
modest and fluctuating over the years country's economic structure and its relative
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Colomeischi Tudor
Stefan cel Mare University, Faculty of Economics and Public Administration, Suceava, Romania
tudorcolomeischi@yahoo.ro
Iancu Eugenia
Stefan cel Mare University, Faculty of Economics and Public Administration, Suceava, Romania
eiancu@seap.usv.ro, eiancu56@yahoo.it
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contribution due under Law 19/2000. At the account where the contributions and transfers
same time the basis for calculation, of availabilities together with related
withholding and payment of contribution are accessories are transferred [3]. The
similar to those applicable to contributions to participant is the owner of the personal asset
social insurance system [1]. in his account, which cannot be subject to
The participant who was seconded to enforcement action or transaction, subject to
another country is entitled to continued cancellation acts. Also, under the same
payment of contributions to the pension fund penalty, it cannot be assigned or pledged.
in Romania, throughout the deployment. In Cash contributions and transfer money to
the situation of continued contribution a pension fund are converted into fund units
payment to a pension fund of an EU Member within two business days from the date of
State or belonging to EEA (European their receipt.
Economic Area), the posted worker in The personal asset of each participant is
Romania and his employer, where the sum accruing to it, equal to the number of
appropriate, will be exempted from units held by the participant multiplied by the
contributing to a pension fund in Romania. daily value of a fund unit.
At the time of commencement of The net asset value and the value of the
collection, the amount of contribution was fund unit of a pension fund is calculated by
2% of the base. Within 8 years after both the pension society and by the
collection, the contribution rate would be depositary every working day and it is
increased to 6%, with an increase of 0.5 notified to the Private Pension System
percentage points per year starting on 1st of Supervisory Commission (PPSSC) in the
January each year. But because of the same day [4]. If there are differences between
economic crisis of 2008, the government their calculations, the correct values are
decided to freeze contribution rate for agreed by the pension institution and
mandatory private pensions to the level of depositary under the regulations of PPSSC.
2% for 2009, annual increases of 0.5% The net asset value and the value of the
following to be applied from 1st of January fund unit of a private pension fund are
2010. Thus, currently is in effect a share of subject to annual audit by a financial auditor
contribution of 5% from 1st of January 2015. (member of the Chamber of Auditors of
The payment of contributions to pension Romania or established in a Member State of
funds is performed by collecting institution, the EU or EEA belonging to professional
taking into account the information provided activities in Romania in the context of the
by the contribution payer. If the pension provision of services) approved by the
society company has not received pension PPSSC, which may not be a person affiliated
contributions within the statutory period, it to the pension company or the depositary.
shall immediately notify the National House The pension society which received
of Public Pensions (NHPP) [2]. In case of not pension contributions for at least 24 months
paying in due time the contribution to the calculates on the last business day of each
pension fund, there must be paid interest and quarter, the rate of return on the pension fund
penalties by the person responsible for delay for the last 24 months, and communicates it
in the amount equal to the fixed budget for in the same day to PPSSC. Average weighted
non-payment of budgetary obligations and rate of return of all funds are calculated and
the collection institution proceeds to applying published quarterly by PPSSC.
the methods of enforcement and fighting of PPSSC warns quarterly the pension
receivables, according to the law regarding company if the rate of return on pension fund
collection of receivables. Interest and is less than the minimum rate of return of all
penalties related, go to the participant's pension funds.
individual account and on them management
fee is not due. 4. The evolution of contributions paid to Pillar
II
3. Participants accounts
In 2008, the first contributions were paid
Each participant in a privately managed into the system since May, with the
mandatory pension fund has an individual
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Figure no. 1 Evolution of the total monthly contributions paid to Pillar II (million lei)
In the process of collecting contributions, growth was in the first quarter of 2010,
National House of Public Pensions (NHPP) 26.25%, from 107.15 million lei to 135.28
transfers the amounts related to the million lei.
contributions of participants in pension fund There were only six quarters in which the
accounts opened at banks storage, based on total contribution decreased: in the first
monthly returns submitted by employers [2], quarter of 2009, the third quarter of 2009, in
the National Agency for Fiscal the fourth quarter of 2009, the third quarter
Administration (NAFA) follows employers of 2010 from 137.77 million lei to 131.83
to pay contributions [5] and the Private million lei (-4.31%), when we recorded the
Pension System Supervisory Commission largest decrease, in the fourth quarter of 2011
(PPSSC) oversee the fulfillment of and first quarter of 2013.
obligations of all operators involved in the Annually there have been increases in
system to protect the interests of participants total monthly contributions, the most
[5]. important being of 82,220,000 lei,
In Figure 1 we plotted the evolution of representing 37.82% and was recorded in
total monthly contributions paid to Pillar II 2011 from 132.39 million lei to 173.53
in May 2008 - March 2015. million lei. The only year when the monthly
Overall, total monthly contribution contributions dropped was 2009, with a
followed an upward trend, increasing in the decrease of -3.15%, from 110.64 million lei
analyzed period by 335.67% from 88.19 to 107.15 million lei.
million lei in 2008 to 384,220,000 lei in Total annual receipts of contributions to
March 2015. The largest relative quarterly the Pillar II are given in Table 1.
Table no. 1 Total annual receipts from contributions and the annual average of monthly earnings
at Pillar II (million lei)
It is noted that from year to year there which is explained both by increasing the
were paid more contributions to Pillar II, number of taxpayers and by the annual
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increase by 0.5% of contribution share from 266.67%, from 27.6 lei / participant to 101.2
2% in 2009. The total annual revenues of lei / participant.
pension funds increased the most with There were nine quarters in which the
61.18% in 2009 compared to 2008 (from 822 total contribution declined. In the third
million lei to 1324.9 million lei) [6]. quarter of 2010 we recorded the highest
Annual average of monthly revenue quarterly decrease of -2.07 lei / participant,
followed the same upward trend, with the from 40.55 lei / participant to 38.48 lei /
largest relative increase, of 26.53% (from participant (-5.1%). In most quarters the
164.7 million lei to 208.4 million lei), average monthly contribution per participant
recorded in 2012 compared to 2011. increased with a relative maximum increase
We should mention that during the entire of 27.6% in the first quarter of 2010, from
period it was recorded an average of total 31.59 lei / participant to 40.31 lei /
monthly revenue to Pillar II of 199.01 million participant.
lei. The annual evolution of average monthly
A similar evolution to that of the total contribution followed the evolution of total
monthly contribution shown in Figure 2 is monthly contribution, with a year of decline,
the one of the average monthly 2009 when it fell by -1.89% from 32.2 lei /
contribution per participant. Thus, participant to 31.59 lei / participant in the
between 31 May 2008 and 31 March 2015 others three years recording increases. The
monthly contribution per participant maximum annual increase was also in 2013,
increased by 73.6 lei / participant and namely 32.47%, from 60.85 lei / participant
to 80.61 lei / participant.
Figure no. 2 Evolution of the average monthly contributions per participant to Pillar II
(lei)
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Figure no. 3 The evolution of the value of total assets of Pillar II (million) lei
The constant increase in the value of total First, there can be observed extremely
assets and of the net ones was determined, small differences between the value of total
especially in the early years, by the increase assets and net assets, so that we will refer
in the number of participants, namely the only to the evolution of the net asset value
total transfers. The results of their investment [1]. These differences represent fees incurred
influenced to a small extent the evolution of by pension funds, their level being provided
net assets. [6] in the prospectus established by the pension
administrator.
Figure no. 4 The evolution of net asset value at Pillar II (million lei)
Net assets had, especially at the Obviously the highest relative annual
beginning, a steep rise from 31 May 2008 - growth occurred in 2008, of 862.29% from
March 31, 2015, increasing the total to more 86.45 million lei to 831.9 million lei, after
than 235 times from 86.45 million lei to which growth slowed from year to year until
20,323.12 million lei. 2014, when there was a relative increase of
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37.96% from 13,557.55 million to 18,704.32 compared to 2008 (from 822 million lei to
million lei. 1324.9 million lei).
If we consider the quarterly increases, the The annual average of monthly revenue
quarter with the largest relative increase was followed the same upward trend, with the
of course the third quarter of 2008, with an largest relative increase, of 26.53% (from
increase of 166.31% (from 187.12 million lei 164.7 million lei to 208.4 million lei),
to 498.31 million lei). The smallest quarterly recorded in 2012 compared to 2011.
increase of just 6.27% was recorded in the The average monthly contribution per
fourth quarter of 2013 (from 12758.1 million participant rose between 31 May 2008 and
lei to 13,557.55 million). 31 March 2015 with 73.6 lei / participant and
The structure of investment portfolios and 266.67%, from 27.6 lei / participant to 101.2
their diversification, which reflects risk lei / participant. The maximum annual
diversification, plays an important role in growth was in 2013, namely 32.47%, from
ensuring income adequacy of private 60.85 lei / participant to 80.61 lei /
pensions. participant.
The international financial crisis that It is expected that the proceeds from Pillar
began to manifest mainly in the second half II to grow in the future, if it will be
of 2008, influenced to a certain extent the maintained the same trend of evolution of the
private pensions in Romania, but not in the number of participants and given that each
proportion of other countries with more year the share of contributions transferred to
developed private pension systems (in the private sector will increase by 0.5% per
Romania pension funds were only in the year until it reaches 6%.
early months of operation) [7]. Moreover, the The constant increase in the value of total
private pension system in Romania focuses assets and of the net ones was determined,
on the safety of the participants, and the most especially in the early years, by the increase
important security features of the system in the number of participants, namely the
derive from the protection that the law gives total transfers. The results of their investment
the participant. Through the organization of influenced to a small extent the evolution of
the system by separating pension fund assets net assets.
from those of administrators, participants' They were recorded extremely small
contributions are put to shelter from the differences between the value of total assets
difficulties that, private pension fund and net assets. These differences represent
managers or their shareholders can fees incurred by pension funds, their level
encounter. being provided in the prospectus established
by the pension administrator.
6. Conclusions The highest relative annual growth in net
asset value was produced in 2008, of
Overall, the total monthly contribution to 862.29% from 86.45 million lei to 831.9
Pillar II pension funds had an upward trend, million lei, after which growth slowed from
increasing in the period analyzed by 335.67% year to year until 2014 when there was a
from 88.19 million lei in 2008 to relative increase of 37.96% from 13,557.55
384,220,000 lei in March 2015. million to 18,704.32 million lei.
Annually, there have been increases in These positive developments of the
total monthly contributions, the most indicators analyzed indicate that pension
important being of 82,220,000 lei, funds had a successful start in Romania. We
representing 37.82% and was recorded in reach the same conclusion if we take into
2011 from 132.39 million lei to 173.53 account the number of participants in Pillar II
million lei. system, which reached 4,156,316 people,
The same upward trend was followed by after completing the random distribution
total annual revenues of Pillar II, which is process (for people who have not joined a
explained both by increasing the number of private pension fund, although they had this
taxpayers and by the annual increase by 0.5% obligation, or who signed the acts of
in the contribution rate starting from 2% in accession for more funds), reaching in 31
2009. Annual total receipts of pension funds March 2015 the figure of 6,374,770 people.
increased the most with 61.18% in 2009 Approximately 34% of the 4.16 million
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7. References
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Cosma Emil
"Ovidius" University of Constanta, Faculty of Economic Sciences
ecosma@univ-ovidius.ro
Abstract
Example [5]
ActiveX controls can be placed in Word
documents, Excel spreadsheets or One will create a calculation function (the
PowerPoint slides. These controls are average of two grades), which also displays
selected from the Toolbox and they allow the grades.
user interaction. A control has adjustable
attributes (properties) and it detects events (it 1. Activate VBA.
is alive). Controls are associated with 2. Edit Function procedure (the menu
code sequences, in the form of certain editor: Insert Module):
procedures, called event procedures.
Function Grade(n1 As Single, n2 As Single)
Key words: macro, event, control, module. Average = (n1 + n2) / 2
Select Case Average
J.E.L. classification: C88. Case Is < 5
Grade = Average & " Fail"
Case Is <= 7
1. Introduction Grade = Average & " Close Fail"
Case Is <= 8
Grade = Average & " Good"
Microsoft Excel is a spreadsheet Case Is < 10
application that allows the user to employ Grade = Average & " Very Good"
advanced calculation means. Microsoft Case 10
Visual Basic for Applications (VBA) is used Grade = Average & " Excellent"
Case Else
to improve its default calculation functions. Grade = Average & " Error"
When Microsoft Excel is being configured, End Select
VBA is automatically getting installed, too. End Function
This allows you to write code through which
spreadsheets actions can be automatically 3. Since the function will show up in the
effectuated. Therefore, to employ VBA, you list of features, check and see if you
must launch the Excel editing environment can find the newly defined function in
and, if you want to write code, you must the list of Excel functions - button.
open Microsoft Visual Basic[1].
4. Enter two grades and calculate their
2. User Functions average, employing the Grade
function (the writing can also be
If the user wants to employ functions that textual):
are not defined in Excel, he could define
them as modules (Function procedures).
They can be inserted in the VBA editor,
using the menu or the Toolbar [2]:
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Example 2 [5]
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5. References
You can delete an item from the list (for
instance, Camera, which appears twice), [1] MSDN, Working with Macros and
using the RemoveItem function. Expressions in Excel 2010
[2] MSDN, Excel 2013
[3] Chip Kompakt, Office 2013, Chip
One will introduce another Publisher, 2013
button: [4] Microsoft, Excel Blog
[5] Cosma E., Programare VBA (Office 2013),
http://stec.univ-ovidius.ro/ studenti/ cursuri
4. Conclusions
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Cosma Emil
"Ovidius" University of Constanta, Faculty of Economic Sciences
ecosma@univ-ovidius.ro
Abstract
2.1 Label
Form Controls are used to employ the
data from cells without necessarily using The Label Control displays descriptive
VBA code. texts (titles, short explanations and so on).
One can also run the macros associated This control is also useful when it comes to
with controls. Therefore, one can attach an describing other controls, like ListBox,
existent macro to a control, one can write or Scrollbar, SpinButton and so on.
register a new macro, and then, when a user
clicks the control, the macro starts running. Example [2]
Key words: macro, event, control, form. 1. Insert a label and right-click on it, in
J.E.L. classification: C88. order to edit the text (Edit Text
option):
1. Introduction
2. Form Controls
Sub Label1_Click()
Range("D2") = "Yes"
End Sub
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Example [4]
Sub Button1_Click()
Range("B1") = Range("A1") * 0.24
End Sub
Sub Button2_Click()
Range("B1") = ""
End Sub
2.3 ListBox
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Example [4]
2.5 GroupBox
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2.8 ScrollBar
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Example [4]
1. Insert a SpinButton:
3. Conclusions
4. References
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The international migration existed in all considering the effects of excess, and
ages, being a result of a set of complex focusing only on reducing the population
objective and subjective factors which have a gap. [8]
direct impact on the globalization process.
Commerce, migration as well as the 2.1. Thomas Robert Malthuss views on
mixing and growth of populations, not only migration
opened the eyes of people but also unlocked
their tongues. Its not only about the fact that Thomas Robert Malthus created the first
the traders, while travelling, came to learn acknowledged theory, The Population
foreign languages, but also about the fact that Theory. The reason that made Thomas
this new knowledge made them think about Robert Malthus research such a sensitive
the meaning of words, and, as a consequence, issue for that period was studying the
develop new opinions about the most basic progress of the society in those times.
issues of life. [3] Therefore, Thomas Robert Malthus
Closely connected to the development of reaches the conclusion that there is a
trade between countries, in time, people connection between freedom and the lack of
moved between different regions of the same responsibility breeding: wherever there is
country and between the main countries of life, the breeding of the species prevails, and
the Middle Ages Europe. the resulted excess is afterwards removed
A significant grow in population allows because of the lack of space or food. [9]
continuation of the manufacturing industry, In his theory, Thomas Robert Malthus
commerce and export. An increase in starts from the idea that the population grows
population leads to an increase of commerce. faster than the goods necessary for living,
The traders philosophy believes that noting that the population doubles every 25
emigration is nor beneficial for economic years, while the resources grow at a constant
growth, because a decrease in labor force rate. [10]
determined an increase in its cost, therefore According to Thomas Malthus this leads
and increase in salaries and in the prices of to a huge discrepancy between the booming
the manufactured products.[4] growth of the population and the possibility
For Adam Smith, the labor is not as it had to provide resources that would be required
been believed for a long time, the purpose of for generating economic growth in those
peoples actions, but the means, more times. All these discrepancies lead to a
precisely, one of the most common ones. gloomy future for man and mankind, and
Adam Smith evaluates that the richness or eventually the mankind will be faced with
poverty of a nation not by considering the famine, filth, poverty, diseases, wars, and
amount of labor, but the effects of this labor. eventually death. The starting idea of his
[5] study was the constant connection between
Regarding the salary, Adam Smith the number of people and the available
launches a theory of population: population resources for each nation, connection
increase is directly connected to the financial resulting from the natural flow of things.
means, even in the civilized countries. The Although Thomas Robert Malthuss
lack of financial means affects in an obvious theory was repeatedly contradicted, and still
way the lower levels of the population, and is even today, the socio-economic reality
trying to limit the increase means using proves it right eventually, as far as the
methods which contradict the moral [6] discrepancy between population and
According to Smith, the labor resources is concerned, for each individual
productivity is higher and the nation is richer nation.
when more people work and when the Thomas Robert Malthus raises an alarm,
number of the people that only consume is emphasizing the strict connection between
lower. The subsequent richness is the effect the population and the resources necessary
of cooperation, of a good management of the for living, which proves that, many times,
economic activity, by labor division. [7] poverty is the reason behind the decision of
Middle East scholars insisted in their leaving a region of even a country.
writings about population on the advantages The theory of the value of work was taken
of a numerous population, without by Karl Marks from the classics, more
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precisely from David Ricardo, under the approach will make the individual the central
pretext of creatively improving it. According point of the research
to this theory, the value of the goods is The very existence of the individuals
determined by the quantity of work necessary depends in great part on identifying the
for producing them, measured by the number targets, achieving the goals or using labor
of hours a worker with medium-level skills force from an inferior social class. For
and craft needs [11] Hayek, every society has certain groups that
In the middle ages, immediately after the have ascending or descending paths, and
discovery of the Americas, this New world which, depending on their goals and their
became immediately the territory the behavior patterns, manage to achieve their
Europeans wanted the most, for its riches, main targets, becoming an example for the
being seen as a mythical promised land for others (sometimes even a model to
many people and countries of the world. follow)[14]
One of the most important events after the According to Friedrich Hayek, the
Napoleonian wars are the population increase of population in the second part of
movements, that, in the last two decades of the 20th century was cause, in great part, by
the 19th century, become more and more an increase in the number of workers
focused on America. employed in the large industrial cities.
The migrations phenomenon raises a According to the author, the development of
series of mysteries as far as the emigration the big cities and the migration of the
and immigration numbers are concerned. population was caused mainly and
Never the less, one thing is certain: the undoubtly by the technological changes,
migrations phenomenon in Europe was from favoring the establishing of big enterprises
East to West and from South to North. At the and the emerging of a new, important class
beginning of the 19th century, most of the the clerks, without possessions, employed by
migrants came from Great Britain and big enterprises. [15]
Ireland, and at the beginning of the 20th The modernization of the traditional
century, from Italy and South Eastern economic systems in the countries of origin
Europe. can only be achieved by attracting them in
The already global migration flows of the the global circuit of economy and global
end of 19th and beginning of 20th century labor force market, and for this, international
from Europe to the New World were later migration represents one of the main forms
replaced by flows from Latin America, of attracting cheap labor force, qualified of
Caribbean and Pacific Asia to North America not.
and from Pacific Asia to Australia. The intensification of the relations
The most important feature of migration between the developed countries and the ones
is the diversity, a no homogeneous number of undergoing development, through
migrants coming from most of the European globalization (commerce, communications,
countries. This diversity was given by the infrastructure, science, culture, internet, and
different social classes, had different trades, environment) is a decisive factor in the
some of those becoming pioneers in the decision process of the foreign migrant.
places where they settled. [12] During the last decades, the contemporary
Marxism connects the migration with the capitalism has been dominated by speeches
overproduction crisis and with the role of the on freedom of individuals, privatization of
external markets in the development of the the companies, the benefits of globalization,
capitalistic economies. Migration to colonies etc, all claiming the decrease of the economic
represents a form of decreasing the asymmetries and social inequalities. The term
overproduction crisis. Karl Marx has a globalization often used in speeches to
similar approach to Adam Smiths as far as refer to a complex process of economic,
migrating to colonies is concerned.[13] political and society restructuring still
Over centuries, a new theory is remains an abstract concept, used vaguely
developed, being considered the starting and arbitrary. [16]
point for classical liberalism. Its initiator was The political and economic changes that
Friedrich August von Hayek, and his have taken place in the recent years took by
surprise the various countries of the world.
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Today, the nations are more or less involved Regarding the internal migration, rural-
in the migrations process and are forced to urban, the costs and sacrifices of moving are
take restrictive measures regarding the social not very high, considering that both places
policy for regulating illegal migration. share the same language, culture, religion,
customs. International migration involves a
3. Migration, an ongoing reality for all the series of major changes in the life of the
countries migrant, removing him from the family, a
new location, a new language, a new culture,
The big migrations waves specific for the civilization, the migrant being forced to
20th and 21st centuries have given the integrate in a new foreign environment. [18]
possibility for the countries of the world to The intercultural relations occurring
re-analyze the international migrations flow during the migrations phenomenon in the
from the political, social and economic European Union have been researched by
perspective, with deep impact on the national (Tare., Chong Ju Choi ) in terms of
and global labor force market. difference between the benefits of economic
For more than 50 years, migrants have convergence towards the problems of social
been seen as an important economic force for mobility in economic convergence in the
all the countries, sometimes even as a life European Union, especially regarding the
boat in a new stage of reconstruction of the labor force. Economic convergences versus
entire world. mobility analysis applies to any region going
International migration is caused by the through fast globalization, the best example
geographic and regional discrepancies being the gradual accession to the European
resulted from the comparison between labor Union of the various states. The authors
force demand and supply on the secondary analyze this phenomenon from two
and primary sectors of the labor force market. perspectives: methodological and economic
The geographic differences between the convergence. [19]
various regions of the same country are The theoretical approach of migration,
mainly caused by the labor force demand and shared by both sociology and psychology,
supply. Labor force comes mostly from the believes that the main macroeconomic
origin and destination countries, labor force imbalances may have a decisive influence on
market being the mechanism that generates choosing and finding a job. All these
the migrations movements. imbalances on the labor force market come to
Labor force represents a flow to the influence the ability to find a new job and the
country rich in capital but at the same time labor productivity in the origin country of the
poor in terms of labor force and income per emigrant, which in time can become more
capita and more serious, and in the end becoming a
Specialty literature is very familiar with part of his personality.
the North African and Turkish migration, The concept of labor mobility and
initiated by the Western European developed frequent changes of jobs, more often in the
countries in the 1960s, as part of bilateral USA than in Europe, reveal the existence of
programs for recruiting labor force. two identities and approaches of external
Another example of migrations migration.
phenomenon is the one between Mexico and In most European countries, regardless
USA, as well as the European developments the economic prosperity or recession , the
(migration between North and South and the migrant workers were used to long term
other way around) after the Second World employment, building social and community
War. There are several differences between networks, contributing to developing their
Europe and America. USA were at the own identities.
beginning a country of immigrants from all It is very important to mention that
over the world which brought with them a regardless the country of destination chosen;
new modern technology, and in time the there are several costs and benefits at
problem of resource preservation became a individual level, at local, regional, national
very acute one, unlike Europe, where the and international level. In this category fall
evolution was a gradual one [17] the migrants with high professional
qualification, which provide for the country
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of destination an important brain gain, and [2] Platon (1999), Legile, Editura IRI,
for the country of origin, a significant loss of Bucureti,p.157.
qualified labor force, brain loss. [3] Friedrih A. Hayek (2000, Infatuarea fatal.
Erorile socialismului. Editura Antet, p.171;
p.140
4. Conclusion
[4], [13] Rusu, Valeriu (2003),Migraia forei de
munc n Europa, Editura Arvin,
The labor force migration represents a Bucureti,pp.13 -14.
complex and dynamic process, being based [5] Smith, Adam (1962), Avuia naiunilor.
on a series of internal and external factors Cercetare asupra naturii i cauzelor ei, vol I,
that in time and space generate, for both Editura Academiei RPR, Bucureti, p.87
origin and destination countries, economic [6], [7] Rogojanu, Angela (2009), Stpnii ideilor
and social costs, political challenges but also economice. Epoca modern din secolul al
several benefits that must be managed on a XVIII-lea pn la mijlocul secolului al XIX-
social, community and individual scale, with lea, Volumul II, Editura Economic,
Bucureti, p.88.
a significant impact on the global labor force
[8] Gonnard, R (1930), Histoires des doctrines
market. conomiques, Libraire Valois, Paris, p.40
The end of the 20th century and especially [9] Malthus, Thomas, Robert (1992), Eseu asupra
the beginning of the 21st century remain principiului populaiei, Editura tiinific,
under the strong influence of certain Bucureti, p.17
demographic, economic, technological, [10] Burloiu, Petre (2009), Managementul
socio-political, educational, cultural, mondial al resurselor umane. O provocare,
religious factors, leading in time to Editura ASE, Bucureti, p.26.
deepening the economic social and politic [11] Rogojanu, Angela (2009), Stpnii ideilor
lags between countries and regions, economice.Secolul alXIX-lea, Prima
parte,Volumul III, Editura Economic,
generating new characteristics of migration
Bucureti, p.74
processes. [20] [12] Baines, Dudley (1995), New studies n
For sure, analyzing the history of the Economic and Social History. Emigration
migrations phenomenon throughout history from Europe 1815 -1930, Cambridge
(since antiquity, Middle Ages, Renaissance, University Press Edition, pp.5-7.
contemporary age) one cannot identify a [14], [15] Hayek. A. Friedrich (1997), Constituia
standard similar behavioral pattern for the libertii, Institutul European Iai, Capitolul
migrations phenomenon for each country and II. Virtuiile creatoare ale unei civilizaii
adapted to each economic situation. libere, p.58
Regardless the age and the gender of the [16] Castles, Stephen; Wise Delgado, Raul
(2007),Migration and Development:
migrant, in this period as well as until 500
Perspectives from the South. International
years ago, the main factors influencing the Organization for Migration (IOM), p.4.
migrating decision are economic, financial [17] Hayek. A. Friedrich (1997), Constituia
and social, both in the origin and destination libertii,Institutul European Iai, Capitolul
countries. XXIII. Agricultur i resurse naturale, p.375
The situation of the migrant at the [18] CRISTIAN, Elena, Raluca; Moise, Elena;
decision moment becomes in time a rather Drzan, Mihaela (2013),A Contemporary
unclear one, from all points of view Approach On Migration, Romanian
(economic, financial, social and Economic and Business Review (REBE),
psychological) and by the nature and size of Vol.8, Special Issue 3.1, p.16.
[19] Tare.J.Eldomiat,Chong Ju Choi, Philip
the phenomenon, the migrant may face one
Cheng (2007), Intercultural relations n the
of the most important and significant European Union: Economic convergences
experiences of his and his familys life. versus mobility, The Social Science Journal
44, pp.167 171.
5. References [20] Vasile, Valentina; Zaman, Gheorghe (2006),
Migraia forei de munc i dezvoltarea
[1] Rogojanu, Angela (2009), Stpnii ideilor durabil a Romniei. Abordri teoretico
economice. n Antichitate i n Evul Mediu, metodologice. Sistem de indicatori i modele
Volumul I, Editura Economic, Bucureti, de analiz, Editura Expert, Bucureti, p.18.
p.62.
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Innsbruck in Austria report that Over and of the blood: ischemia = an insufficient
above the standard procedures and resources supply of blood to an organ, usually due to a
commonly used for settling terminological blocked artery;
problems or questions of register-appropriate -itis - a suffix used in pathological terms
language, we rely heavily on cross- that denotes inflammation of an organ:
referencing in our computer-held domain- endocarditis = when the endocardium
specific text corpora with the help of becomes damaged, bacteria from the blood
concordancing software. Essentially, this stream can become lodged on the heart
involves the use of electronic texts which valves or heart lining; the resulting infection
make it possible to instantly check the is known as endocarditis.
occurrence, frequency and context of any -osis a suffix occurring in nouns that
given word or string of words in any corpus denote conditions and especially disorders or
available. For example, the specific word abnormal states: diagnosis = the process of
resolution belongs to many science fields, determining a diseased condition.
being translated according to them. Thus, in Once we split the whole term into its
medicine terminology, resolution is described components, we can readily grasp de
as the subsiding or termination of an meaning.
abnormal condition, such as a fever or an Thirdly, there specialized language is
inflammation, while physics and chemistry crowded with synonymic terms whose
give another definition to the same corpus: meanings are slightly different. Therefore,
the act or process of separating or reducing translators often have to do enough macro-
something into its constituent parts. With editing in order to ensure that the text is
contextual register, we can achieve a more cohesive and that its content, organization
accurate translation that would allow us to and flow of information correspond to the
facilitate the use of professional readers' ability to understand the translated
communication. texts.
Secondly, the specialized medical From the linguistic point of view, there
terminology is constantly developping, new are two types of grammatical issues faced
concepts and terms are added to the during translation, i.e. morphological and
literature, whether originating from Latin, syntactical ones. On the one hand,
Greek or other languages. Therefore, we tend morphology deals with aspects such as
to approach the specialized terminology compounding, inflexion, derivation; on the
problem by subdividing such term into other hand, syntax is concerned with the
prefixes, suffixes and roots, by analyzing arrangement of words and with their
them and thus becoming familiar with their interconnections within sentences. Thus, the
meanings. Some example from the common syntactic structure of both the source and the
Greek and Latin are as follows: target language triggers different means of
Prefixes: organizing the messages in the target
anti- meaning against, in opposition language, engendering a wide range of
to: anticoagulation = the prevention of translation difficulties.
coagulation, anti-inflammatory = a medicine Furthermore, it is noteworthy that the
intended to reduce inflammation; linguistic choices are of two kinds, i.e.
ante- meaning before, previous to, in grammatical and lexical. In translation, it is
front of: anteflexion = a bending forward of extremely important to make the distinction
an organ; between them and to keep in mind that
dys- meaning painful, abnormal: lexical choices are optional to a certain
dysplasia = abnormality of development; extent, while the grammatical ones are
hyper- meaning above normal: mandatory. Another important difference,
hypertension = high blood pressure; acknowledged by all linguists alike, resides
hypo- meaning below normal: in the fact that grammatical structures are
hypokinesis = diminished or abnormally slow quite rigid, while the lexical ones are more or
movement; less flexible, depending on the context. This
Suffixes: is due to the fact that new words, terms and
-emia being a combining form occurring concepts can be easily introduced into a
in compound words that denote a condition language, in quite short time period; on the
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other hand, altering grammar structures or in the souce language, the correct
systems would be more difficult and it would arrangement of semantic items, and even the
also need more time. Moreover, the information provided by the sentence.
modifications in grammar systems are less Therefore, a translator should take into
visible, while the lexical ones can be account the possibility of performing such
recorded in dictionaries, for example. The alterations and choose the best option
differences in the grammatical systems of the regarding the use of the passive voice or its
two languages (i.e. source and target ones) replacement with an active or reflexive
trigger a series of modifications in the construction, taking also into account its
content of the translated information. These stylistic value in the source and the target
modifications can be performed by adding languages. In this respect, Munday asserts
the information needed or even by removing that the translator should have in mind,
the irrelevant elements in the target language. during translation, the function(s) of the
In this regard, Baker argues that a passive and similar structures in each
translation which repeatedly indicates language. [...] It is always the function of a
information that is normally left unspecified category rather than the form it takes that is
in the target language is bound to sound of paramount importance in translation [11].
unnatural [9]. In his turn, Newmark states that the
Another significant difference between medical translator has much more freedom
the source and the target language, as far the with grammar than with lexis [12]. The
grammatical structures are concerned, is that accuracy of a translated medical article
of tenses. The Romanian authors often use requires the compliance with the standards
the past tense in their medical research and norms of the target language regarding
articles. These temporal structures are not issues such as terminology, compound
always connected to time markers in the words, syntax, word order [13]. In the
Romanian language; thus, translators may translation of scientific texts, in general, and
face several difficulties in choosing the of medical articles, in particular, the
appropriate tense when translating the text in translator should comply with the rules
the English language. governing these texts in the target language,
Another translation issue is represented by in order to appropriately convey the meaning
the passive voice, due to the differences of the message from the source language text.
between the source and the target languages According to Pilegaard [14], on the
and to the existence (or non-existence) of pragmatic level, firstly, any translator is
similar structures. In this regard, the judged by his ability to produce clear,
scientific articles using passive structures comprehensible translations and should take
often use this form without the agent (or the an active role in trying to ensure that the text
so-called logical subject). This raises a series is clear and readable. In their effort to be
of issues if there is no corresponding scientifically accurate, translators often make
transitive verb in the target language, able to convoluted and almost incomprehensible
render a similar construction. In this regard, sentences [15]. One of the pragmatic
in the English language, the author uses the strategies is explicitness change, because in
passive voice in order to give the impression explicitness change strategy some
of objectivity [10], while a Romanian author information of the source text maybe added
of a medical article uses a reflexive structure or deleted to make the text more or less
(such as se observ, se constat, se explicit, as we can see: a clinical reality is
nregistreaz, se remarc etc). translating as s devin realitate or shape
However, it is noteworthy that this forme caracteristice. Another pragmatic
triggers several risks regarding the accuracy skill is interpersonal change strategy which
of the meaning that is to be rendered in the is used to affect the whole style of the text to
target language because a translation make it more or less informed, technical (e.g.
rendering a passive structure from the Doppler color for Doppler color flow
(Romanian or English) source language with imaging).
an active consruction in the target language From the extra-linguistic perspective, any
or the other way around can modify the translation domesticates foreign texts,
emphasis or even the meaning of the message inscribing them with linguistic and cultural
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values that are intelligible to specific fields regarding social conditions and
domestic constituencies [16]. The lifestyle. All these issues can be part of the
translation process begins with the decision doctor-patient dialogue and can play a
to translate a foreign (specialized) text; it significant role in diagnosing the patients
continues with the performance of the condition and in establishing ones aetiology.
translation by the translator and ends with the In such cases, the treatment of such issues
publication and/ or the dissemination of the depends, to a great extent, on the translators
translation. Critics state that the translations skills, on his/her extralinguistic knowledge in
of specialized articles, such as medical ones, the two cultures (i.e. the source and the targer
are extremely useful as they contribute to the ones). All these culture specific issues
dissemination of scientific knowledge; on the depend on the context and, therefore, their
other hand, they also agree that the translation methodology cannot be
translations of literary texts may represent a generalized.
threat to a nations cultural identity by
constructing representations of foreign 4. Conclusion
cultures [17].
There are also other extralinguistic isues If technology did not progress at the same
that trigger the complexity of the translation pace as it does nowadays, medical translation
of specialized scientific articles. For instance, would be quite uncomplicated as the basic
a translator may also comply with strict terminology were largely similar worldwide
terms, stress, the variety of the scientific [20]. Nevertheless, the situation has changed
topics, the translators lack of experience in due to the technological and scientific
the field, his/her insufficient extralinguistic breakthroughs brought by the twentieth
knowledge and even the limitations regarding century. These unprecedented discoveries are
space (for example, a limited number of unlikely to come to an end soon taking into
words). account the fact that a greater and greater
The translators extralinguistic knowledge number of professionals involve themselves
also plays an important role in inferential in scientific research activities.
strategies, which are frequently used in the It is obvious that, before performing the
understanding of a text in the source translation, the translator should decide on
language [18]. Besides the appropiate use of the aim of the source text and of the target
the translation methodology, the text, in order to select the appropriate
extralinguistic knowledge should be translation strategies [21]. Definitely, the text
accompanied by linguistic skills, which in the in the target language should be as clear as
translation of specialized scientific texts possible, unambiguous and objective, in
might seem to play a less important role; this order to acurately render the information
entails the fact that a professional in the provided by the source text.
specialized field is able to do a better Another significant issue regarding
translation than a translator who does not translation is related to whether the translator
have the scientific knowledge in the should also correct the inaccuracies of the
respective field [19]. Thus, the accuracy of a source text. A poorly written source text may
translation is influenced to a great extent by mislead the translator. Although the
the translators extralinguistic knowledge. correction of the mistakes in the source text
Consequently, culture specific items, such does not fall into the translators task, the
as words, concepts, should be explained for a ambiguities or obscurities have to be rectified
better understanding of the text. Moreover, in order to maintain factual accuracy [22]. In
the omission of cultural items in a translation this regard, Gouadec underlines that
might engender a standardized, general text mediocre translation is a sign of lack of
in the target language. In this case, however, concern and professionalism on the part of
such stylistic deterioration is less important the person disseminating it, even though that
in scientific texts. person may be in no way responsible for the
It is well-known that the extralinguistic quality of the translation itself [23].
cultural issues in the translation of medical
scientific articles may be triggered by the
differences between Romanian and English
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5. References 1990
[23] Gouadec, D. op. cit.
[1] Rey, A. Essays on Terminology, John
Benjamins Publishing, Amsterdam &
Philadelphia, 1995.
[2] Cabr, M. T., Terminology: Theory, Methods,
and Applications Volume 1, John Benjamins
Publishing, US, 1999.
[3] Wster, E. La thorie gnrale de la
terminologie dun domaine interdisciplinaire
impliquant la linguistique, la logique,
l'ontologie, l'informatique et les sciences des
objets. Essai de dfinition de la terminologie.
Actes du colloque international de
terminologie, L'diteur officiel du Qubec,
Quebec, 1976.
[4] Idem.
[5] Cabr, M., T., op. cit.
[6] Galbeaza (Buzarna-Tihenea) Alina, Special
Issues of Jurilinguistic Translation. Case
Study: The Criminal Code, in Ovidius
University Annals, Economic Sciences Series,
Vol. XIII, Issue 2, Ovidius University Press,
Constanta, 2013.
[7] Fischbach, H., Translation and Medicine,
John Benjamins Publishing, US, 1998.
[8] Idem.
[9] Baker, C., Attitudes and language,
Multilingual Matters, Clevedon, 1992.
[10] Idem.
[11] Idem.
[12] Newmark, P., A Textbook of Translation,
Prentice Hall, London, 1988.
[13] Idem.
[14] Pilegaard M., Text Typology and
Translation, in Translation of Medical
Research, ed. Anna Trosborg, John
Benjamins Publishing, US, 1997.
[15] Chesher, T., G. How to Keep Healthy in 17
Languages: Translating and Interpreting in
New South Wales Health Care Delivery,
Australian Review of Applied Linguistics,
AUS, 1988.
[16] Venuti, L., The Scandals of Translation:
Towards an Ethics of Difference, Routledge,
US, 1998.
[17] Idem.
[18] Grego, K., Specialized translation.
Theoretical Issues, Operational Perspectives
Volume 4, Polimetrica, US, 2010.
[19] Gouadec, D., Translation as a Profession,
US/NL: Amsterdam/Philadelphia: John
Benjamins Publishing Company, 2007.
[20] Munday, J. Introducing Translation Studies:
Theories and Applications, Routledge, US,
2001.
[21] Sandor, H., Higgins, I. Thinking Translation,
Routledge, US, 2002.
[22] Sager, C. J., Practical Course in Terminology
Processing, John Benjamins Publishing, US,
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Iftene Cristi*
Ovidius University of Constanta, Law and Administrative Science Faculty
cristiiftene@univ-ovidius.ro)
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sense for the overseas lands (New Also we could observe that there is a
Caledonia, French Polynesia) art. 74 and strong correlation between the degree of
the second meaning for the local authorities autonomy and responsibility of the
(art 72). The European Charter of local institutions. This relationship suggests an
autonomy includes the second sense. This effort in achieving a balance between the
self-government has a political dimension but benefits of autonomy and creating some
is the result of the elections and does not instruments that compensate the lack of a
derive from the local authorities status. centralized social control.
In certain European countries, the notion
of autonomy is mentioned in the There are many types of autonomies that
fundamental law Italy-article 5, article 140 are rooted in traditions, customs and norms
Spain, Portugal, Romania, 6 article 120, which would not fit into the rigid standards
Greece article 102.2), sometimes the term established by Hannum [7]. Thus, one can
administrative autonomy being used. In observe that there is a weak and strong form
other countries the term corresponds to the of the legislative autonomy, encountered at
literal German term Selbstverwaltung (self- opposite ends of the spectrum. Although
management), defined as the right to govern most autonomies do not fall clearly within
under self-responsibility all the local interests this classification (only a few autonomous
of the authorities, which corresponds to the communities can satisfy the conditions laid
concept of libre administration of the down by Hannum's definitions), we can still
French Constitution (art. 72) and the English accept that they are identifiable as being
term self-government. weaker or stronger. Therefore, a legislative
Well, this notion of self-government autonomy existing in a district or insular
administration (libre administration in geographical area, deeply rooted, with an
French) can be found in the Constitution of independent legislation and with different
Russia of 1993 (mestnoe samoupravlenie), competences, with its own legal system and
Ukrainian Constitution of 1996 (mitzeve the ability to tax and spend, would be
samovriaduvania) or the Polish Constitution considered a strong legislative autonomy.
of 1997 (samorzad terytorialny). In Latin The status of the Faroe Islands is closest to
America, the term autonomy is usually this. An autonomy that lacks these features,
preferred in both unitary States (Colombia- but with a distinct space and legislation,
287) as well as in federal States (Argentina would be considered a fairly weak legislative
art 123 ensures municipal autonomy). In autonomy. In contrast with strong
Asia, the countries of former British colonies autonomies, Nunavut and the Azores
have retained the concept of local represent weak autonomies. It is important to
government and local self-government note that the highest power of a genuine
including and restoring traditional local autonomy is represented by its adaptability.
methods of organization (not just Australia As Suksi affirms [8]: the content of the
and New Zealand but also in India, Pakistan autonomy will vary according to individual
or Malaysia). There are, however, countries needs.
that refer to the term local autonomy such Thus, the main discussion for autonomies
as Japan, Indonesia, Republic of Korean or is represented by the aim or aggregate
the Philippines. number of research upon which the entity
was granted; the depth of its control.
2. Methodology The existence of various forms of
autonomy allows us a classification
The assumptions from which we started depending on the beneficiaries of the
within this study are that autonomy based on autonomy or its purpose.
a budgetary independence is much more Personal autonomy offers a guarantee of
profitable compared to that which is based on the rights and freedoms of a individual and
the authoritarian, centralized financial rules. not necessarily membership qualities,
This indicates that there is a higher belonging to a cultural group. A separate
inclination towards creating institutions that administrative structure and a well-defined
are financially independent and who have a territory are missing.
legal basis support of autonomous bodies. Public administration is organized and
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describing the basic characteristics meet by means that they are not under the
an entity that seeks to be autonomous Governments or any ministers jurisdiction.
/independent. Thus, we can appreciate that Of course, they must perform the ordinances
these items shall be entered in the following and decisions of the Government. On the
directions: other hand, those authorities are not under the
Autonomous administrative authorities control the President of Romania, because
shall be established by organic law. the rules of the Constitution do not allow the
Encountered in the basic law, this principle creation of administrative bodies that are
should always be respected when we speak subordinated to it. At least in theory,
about the establishment, organization and autonomous administrative authorities are
functioning of an independent administrative removed from the sphere of influence of the
authorities, having absolute character. But in Government, but it is not always like so. In
practice, this constitutional principle was the case of the Supreme Council of Defense
very often violated. Some autonomous of the country, the autonomy of the
administrative authorities were established by administrative body is at least questionable as
organic law, but their status was modified by long as eight out of twelve members are part
an Emergency Ordinance (Court of Auditors, of the Executive. The autonomy of the
the Supreme Council of the Country Economic and Social Council is also relative,
Defence, The Public Service Radio and since the tripartite nature of this institution, in
Television, the Council for Competition, The which 15 members are appointed by the
National Commission of Insurance, The Government, by employers ' representative
National Agency of Integrity), others have associations at national level and by the
been established directly by the Emergency representative trade union associations at the
Ordinance (The Council of the National national level, being clear that the
Security Archives Studying, The Supervision Government can influence the decisions of
Commission for Private Pension System, The the Council by rallying with one of the points
Romanian Authority for Quality Assurance of view related to a specific concern, more
in Higher Education), and others by ordinary exactly: employer or trade union. The same
law (National Agency for Press Release situation is meeting in the case of the
AGERPRESS). Without doubt, if all of these National Council for Vocational Training of
normative acts violating constitutional Adults.
provisions (emergency Ordinances and An administrative authority is a collegial
ordinary laws) adopted in the field of decision-making (for example the Supreme
autonomous administrative authorities should Council of Country Defense, the National
be subject to appeal to the Constitutional Council of the Audio-Visual, the
Court would block the activity of certain Competition Council, the Court of Auditors),
essential entities for Romanian democracy. however, it is not excluded the existence of
An administrative authority will be part of single authorities (such as the Ombudsman).
central public administration specialty as An autonomous administrative authority
characterized by constitutional provisions. As has the power of decision, which manifests
ministries and other central organs itself by issuing individual administrative
subordinate to the Government, an authority and sometimes even normative. In
autonomous administrative authority pursue principle, the legality of such acts can be
an executive activity, i.e. organizes and runs controlled directly, by means of
into concrete laws, ensuring the proper administrative Judicature. These measures
functioning of public services established for may be called judgments, orders, decisions,
this purpose. The fact that some central regulations, ordinances, guidelines,
administrative authorities function near the statements, opinions, etc.
parliament (for example the Legislative The members of the central autonomous
Council) or that they present progress reports administrative authorities, and, sometimes,
before the Parliament, do not influence their their directors are appointed directly by the
legal nature, being part of the category of decision of one or of both houses of
specialized central administrative bodies. Parliament, either on a proposal from a
Autonomous administrative authorities permanent Committee of the Chamber of
have a high degree of independence, which deputies or the Senate, or on a proposal from
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the President or Prime Minister of Romania, credit officers although in practice there are
or by other methods. exceptions such as NATB. These institutions
An autonomous administrative authority should have a clear mandate to pursue their
depends on in one form or another on the mission in an independent way without the
Parliament (or at least on one of the Chamber intervention of other entities in its activities.
of the Parliament). Their dependency towards A wealthy budget should exist for them, on
Parliament is manifested differently. Thus, the long term, so as not to be afraid that their
relative to other central autonomous resources can be cut, if their work is too
administrative authorities, the Legislative critical or unpopular.
Council is in relationship of dependency The Heads of these institutions are often
because, according to art. 79 of the assimilated by senior public servants or
Constitution, it is the specialized body of the officials (have the rank of Minister, Secretary
Parliament. This criterion poses a certain of State, under-Secretary of State). This
degree of relativity whereas, on the one hand, status ensures an extended authority of the
not all autonomous administrative authorities institution.
shall be kept by law to submit progress The running costs of the autonomous
reports before the Parliament, and on the authority shall be borne by the States
other hand, the effects of the control budget. However, there may be entities that
exercised by the Parliament are not the same provide their own financing activities (as is
for all of these administrative organs. the case the National Bank of Romania or
However, there are autonomous insurance supervisory Commission). We
administrative authorities who do not report appreciate that a basic feature of these
to Parliament. It is the case of NATB which, entities should be represented by the financial
under the law shall submit quarterly and stability, precisely to ensure their
annual reports to the ministries (MMFPS and independence. This can only be guaranteed
Department of Education). Most cases do not by the amounts coming from the states
deal with direct and concrete measures if the budget. However, in times of economic crisis
Parliament decides that the work presented in the existence of additional sources of funding
the report is defective. Only in the case of can only be beneficial.
public service television and radio, the
Romanian Society of radio broadcasting and 4. References
the Romanian Society of Television, is set
out clearly that the rejection by Parliament of [1] Jellinek Georg, Allgemeine Staatslehre, Bad
the annual report draws on the dismissal, by Homburg, Germany, Herman Getner Verlag,
law, of the Board of Directors. At the same 1928/1960, p.493
time can be identified two situations: reports [2] Laband Paul, Das Staatsrecht des Deutschen
Reiches, vol.1, Tubingen, Germania, Mohr,
submitted, the reports presented and
1911
discussed and respectively debated reports, [3] Duguit Leon, Traite de droit constitutionnel,
without being subject to a vote. Also, vol.2, Paris, Fontemoing Boccard, 1921,
sometimes in the law of the organization is p.478
stated a fixed date (15 April of the following [4] Berthlemy Henry, Traite elementaire de droit
year, as in the case of CNCD) or an interval administratif, Paris, Rousseau, 1926, pp.174-
(in the first half of the next year), or no date 176
is specified until which the report should be [5] Hauriou Maurice, Precis de droit administratif
submitted. At the same time, it can be noted et de droit public, Paris, Siery, 1927, pp.345-
that if reports are to be presented to the 346
[6] Oberreuter Heinrich, Autonomie, in
parliament, these can be sent either to one of
Staatslexikon, vol.1, Freiburg, Basel, Verlag
the chambers, or to specialized commissions. Herder, 1985, pp.490-491
Moreover, it would be useful to be provided [7] Hannum H., Documents on Autonomy and
in the organizational law some key elements Minority Rights, Dordrecht, Martinus
that contain the annual report. (Achieved Nijhoff, 1993
objectives, the way of managing the allocated [8] Suksi Markku, Autonomy: Applications and
resources, targets achieved in the following Implications, The Institute of Human Rights,
year, etc.) Kluwer Law International, 1998;
The heads of these institutions are main [9] Hannum Hurst, Autonomy, Sovereignity and
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Iftene Cristi*
Ovidius University of Constanta, Law and Administrative Science Faculty
cristiiftene@univ-ovidius.ro)
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one public institution the doctrine considers drafted documents setting out standards for
that the way the relationship is conducted is effective work of the public administration
an indicator that measures the performance and civil servants.
management of that institution and thus the At international level, good management
evolution of society as a whole. is mentioned from the first half of the
twentieth century, when some of the
Good local management is reflected in the problems the educational system in the
quality of services. United States were presented by Charles H.
In order to achieve this required mainly Judd as forms of obstruction of good
by two factors: an adequate legislative administration, which was associated with
framework coupled with a strategy at the efficient work of schools.
national and local level of the authorities. According to the Charter of fundamental
From a legal perspective we note that the rights in Part II of the Treaty establishing a
legislature sought to explicitly regulate what Constitution for Europe, Art. II-101, the right
are the duties of local authorities by special to good administration reads:
laws and which are the areas where it can 1) Everyone has the right to benefit, in
provide public services. terms of its problems handled impartially,
We note that although the principle of fairly and within a reasonable time by the
decentralization makes local citizens to freely institutions, bodies, offices and agencies.
choose the authorities, how to exercise the 2) This right includes:
powers of those authorities is regulated by 1. The right of every person to be heard
the state. before any individual measure which could
Analysis highlights that legislation local be prejudiced;
government has an obligation to conduct 2. The right of every person to have
business based on the principle of good access to her file respecting the legitimate
administration in the administration of public interests of confidentiality and of
affairs. professional and business secrecy;
Analyzing the citizen-government 3. obligations of the administration to give
relationship professor Ioan Alexandru [1] reasons.
remark addiction, quite often, that it is 3) Everyone has the right to compensation
against public authorities of executive power for damage caused by EU institutions or by
holders called to ensure and organize the its servants in the performance of their duties,
implementation and compliance of law. The in accordance with the general principles
author characterizes the relationship as common to the laws of the Member States.
"inequality" and observed that this 4) Every person may write to the Union
dependence appears questionable when institutions in one of the languages of the
expressed in relations with the public Constitution and must have an answer in the
administration taken as a provider of same language.
services.
If administration theorists and The principle of good administration in
practitioners have long discussed the need to the legal rules in Romania
ensure the delivery of services to citizens by No doubt we could find a first response in
local authorities in recent times there is an relation to the priority of our law. In this case
increasingly interest on the quality of service it would be the direct application of
delivery. Community rules. Any Romanian citizen
could invoke so before the administrative
2. Administration of good administration. authorities, but also of the court, the right to
National and European regulatory good administration.
framework A more detailed answer, however, needs
to consider all the regulations that govern
Although public administration in relations between citizens and authorities,
Member States of the European Union and including the Constitution. In legal texts
Council of Europe is regulated and governed concerning this area have identified those
by the principles declared by national rules expressing - in one form or another,
governments internationally have been more or less exactly - the principle of good
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As Plato said to govern is to practice the administrative institutions and a good public
art of leadership, or art means in this context, service management, all built around the
processes, techniques, tools, methods, general interest.
political, sociological, economic, Good administration means good
administrative and, primarily, legal, resorting leadership, good management of financial
to any government. That is why we could and material resources of the community in
define good governance as the effective question made by the mayor and local
management of public affairs by generating a councils democratically elected by universal,
set of rules in order to promote and equal, direct and free vote.
strengthen society's values sought by Power finds its legitimacy in the public
individuals and groups. administration law. That is why we see that
A democratic state is created by its contemporary society sometimes requires a
citizens. For the Council of Europe, the term new balance between government
"democratic" emphasizes the concepts of domination and democratic principles. Public
participation, democracy or participatory administration must return to its core joints -
citizenship and seem to be increasingly to serve the citizens interests and not
recognized as being vital for the future. exacerbate its dominant character.
Reducing obstacles to participation, in Government activity takes place in a certain
particular socio-economic obstacles, is an order and procedural forms of strictly defined
integral part of any strategy aimed at legal normativity.
strengthening citizenship in a democratic
society. The exercise of democracy entails Among the many roles taken by the
both rights and obligations on both the part of administrative procedures we consider that
the governed and the governors. two are of major importance: one is to assist
institutions in administrative tasks within
Good local administration their jurisdiction. A second role is to is to
One of the realities of today is that many ensure that the person affected by decisions
European citizens lose confidence in the and actions of administrative institutions are
central or local public authorities. No doubt treated fairly.
the extent, dynamics and the causes vary In most cases the administrative decisions
from country to country, depending on taken in the first instance fail to be appealed,
specific situations. Thus we see a and remains definitive. The mechanisms of
phenomenon where public opinion opposes control, even when they are easily accessible
increasingly more rigid acceptance of local prove ineffective to remedy the mistakes and
governance practices, which are often abuses committed in the first instance. For
associated with power systems. this reason the existence of rules and legal
In addition, voters are faced with institutions which enshrines the duties of
suspicion, fierce criticism from the media, public administration must be accompanied
with the tightening of procedures and by an indication of the concrete forms in
vigilance courts, elected representatives often which these tasks shall be fulfilled, forms
decide not to run in elections because they specified by procedural rules.
are very tired and not motivated. Good governance is not possible without
No doubt there are many ways to address democracy and public participation, and the
these different phenomena, but the first step first sign of democratization should be
to restore citizen confidence in the entering into normality, which means law
institutions. This must be a return to the enforcement first, then depoliticizing
standards impeccable morally from the administration and removing administrative
representatives and elected officials. The centralism.
adoption of clear rules, transparent and
effective sanctions is the only way to Changes produced after 1989 in Romania
eradicate behavior that is condemned to the and the countries of Central and Eastern
public, is considered unacceptable moral Europe have affected the social and political
reasons. life and prompted a rethinking of the role and
One cannot conceive of a modern state function of public administration. There have
without a well-articulated system of been major changes in the Romanian society
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3. Conclusion
4. References
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Koblianidze Tamar
CIU
tamar.koblianidze@ciu.edu.ge
Toria Mamuka
CIU
mamukatoria@bk.ru
Veshaguri Maia
CIU
maiaveshaguri@gmail.com
Abstract
Table 1. Dynamics of economically
Solution of the population employment active population in Georgia ( thousand
problems is one of the priorities of economic persons)
policy of the country. Besides, it is necessary
to form such a model of employment, which 1990 1996 2000 2005 2010 2013
will adequately reflect the processes going on Econo 2763.3 2085.2 2049.2 2023.9 1944.9 2003.9
mically
in social and labor relations of the society. active
The article highlights the trends of populati
employment developed in recent decades in on, total
Georgia and explains the reasons of their Employ 276 203 1837.2 1744.6 1628.1 1712.
development. ed 3.3 6.0 1
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that the index of employed population decreased in the field of material production,
decrease was especially high in 19901996, especially in industry, where in 19902014
when it decreased by 26.2 %. their number decreased 5.2 times. Also, it
Such a change in the number of employed should be noted that out of the population
population was conditioned, first of all, by employed in 2014 in industry 8.2% falls on
the fact that after collapse of the Soviet public sector and 91.8 % on private sector. In
Union Georgia declared independence that private sector 60.7 % falls on local natural or
was naturally followed by rupture of the legal entities, while 39.3 % on foreign natural
existed economic relations and it took too or legal entities.
long to establish alternative economic and Although during the period under study
commercial relations. The situation was the number of employed population in
especially grave in the industries of material Georgia significantly decreased in whole
production, which were very well integrated economy and industry, in 20062013 a kind
in the economics of the Soviet Union, but of movement was observed in industry,
could not manage efficiently and timely to which was reflected on the number of
adapt to new reality. As a result, the number employed population. During that period the
of hired labor force seriously decreased number of population employed in industry
mainly caused by the changes in property increased from 90.3 thousand to 112.7, i.e., it
relations. In particular, in 19901996 years increased by 24.8 %.
the number of population employed in public
sector decreased 3.3 times. And the tendency 3. Dynamics of economically active
of decrease of population employed in public population in Georgia According to cities
sector continued until the end of the period and village
under study.[3]
Generally, it should be noted that in the It should be noted that the main part of
period under study the number of employed the industrial potential of the country is in
in public sector and the hired labor force Tbilisi involving 45.7 % of population
permanently decreased. Nongovernmental employed in production, 13.8 % in Quemo
sector is characterized by quite different Kartli region and 13.5 % in Imereti region. It
tendency of dynamics in employed and self- should be noted that Tbilisis share among
employed population. In spite of that, the those employed in production increased from
present level of development of private sector 40.2 to 45.7% in 20062013, in Quemo
cannot satisfy the job demand, due to which a Kartli from 11.6 to 13.8 %, while in Imereti,
significant part of labor force seek the living on the contrary, the share of that region
on foreign labor markets [2]. As the statistics decreased from 16 % to 13.5 %. Also, in the
show, in 2013 there were 1022.3 thousand of total amount of population employed in
population outside labor force in Georgia. production the share of Adjara, Kakheti,
Those people are neither in the category of Samegrelo-Zemo Svaneti and other regions
employed nor in the category of unemployed decreased indicating unequal development of
population - supposedly, they work either in industry in the regions that has negative
shadow economy or live abroad. This influence on efficient use of the industrial
argument can be supported by the fact that potential of the country.
according to the statistical data of the
population census of 2014, population of Table 2. Dynamics of economically
5456.1 thousand living in the country in active population in Georgia
19902014 decreased to 3729.6 thousand, According to cities and village,
i.e., it decreased by 31.7 %. Evidently, such a ( thousand persons)
scale of population decrease was not the 2000 2005 2010 2013
result of the tendency of natural growth of city/ city/ city/ city/
population, rather it was the result of the villag villa villag village
tendency of emigration especially labor e ge e
emigration, which had a great influence on 910.1 839. 847.8 848.5/
that. economic /1139 6/11 /1097 1155.4
During the period under study the number ally active .1 84.3 .1
population
of employed population significantly
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6. References
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capital gathered by the cooperative during its We take a 2nd degree cooperative society
activity, minus the divisible part and it cannot with 7 associates that has three buildings
(art. 6, letter J from Law nr. 1/2005 regarding which, by the General Assemblys decision
the organization and functioning of the (5 votes to 2) has alienated them. The
cooperative republished in the Official General Assemblys decision was published
Monitor, 1st Part, nr. 368/20.05) be the object in the Official Monitor, the obtained profit
of distribution or acquisition between the was directed towards dividends distribution,
cooperatives members. Through the paying at the same time the fiscal debts. The
obligatory indivisible reserve one stops the current cooperative legislation was followed
decapitalisation and it is thus ensured a cash and, although the action is completely
source for the cooperative. Both management unethical, since the divisible reserve does not
and its members must treat the indivisible ensure the associates remuneration, they
reserve as a mode to guarantee working have built a method to get rich without a
places for more generations and not from the proper reason.
perspective of a property that must be Under these circumstance, the dimension
privatized by the current cooperative group. of the indivisible reserve which will be taken
Since the indivisible reserve cannot be over by a cooperative society of 1st degree is
transferred outside the cooperative movement not relevant, since the 2nd degree entity was
(art. 87, paragraph (2) Chapter X Acquittal intentionally decapitalized by its own
of the cooperative society from Law nr. associates.
1/2005 regarding the organization and Hypothesis no. 2
functioning of the cooperative republished in For a 2nd degree cooperative society with
the Official Monitor, 1st Part, nr. 368/20.05), 5 associates which has three commercial
in the case of a consumer cooperative spaces it is decided through the General
societys dissolution, the indivisible part is Assemblys decision the sale of the
mandatorily donated to another cooperative. respective assets. Having evaluation reports
This has a great significance during tight which willingly under-evaluate the assets,
financial times or when the elder workers three of the associates become the new
retire and no new members to replace them owners. Under these circumstance, the entity
can be found. Likewise, during the economic is decapitalized and robbed and thus it wont
growth, the indivisible reserve does not allow have the appeal to merge with another 1st
the alienation of the cooperatives patrimony degree entity.
by the private investors, possibly attracted by The following pertinent question arises:
the fields appeal. could the weak governance be one of the
In Romania, the years after 1989, main factors of the Romanian cooperative
especially between 1990 and 2000, led to sectors decline?
activity decreases, both through the Law 1/2005 had negative effects on the
disappearance of sale markets (controlled cooperative sector through destroying the
before by the state), as well as the control system and through the possibility of
disappearance of some economic transaction alienating the patrimony to the members.
partners (especially big enterprises). Activity Even before this law in the cooperative
decrease was also followed by the almost system there was a control system for the
quasi-general tendency of the cooperatives to cooperatives activity that was rigorous
value their goods through sale, to the short enough, in a hierarchical organization that is
term benefit of their members. Moreover, very strict. In the old legislative formula the
there were identified a series of activity 1st degree cooperatives were
developments at the border between legal and controlled by the 2nd degree ones, whereas,
crime, which led to the decapitalisation of the according to Law 1/2005, the 1st degree and
cooperatives in the interest of some small 2nd degree cooperatives are associated at a
groups of persons. In the following we will county level. Through this unity, the county
present two scenarios inspired by the union which is a 2nd degree cooperative
autochthonous cooperative environment: has no right to supervise and control, since
each cooperative is independent. Canceling
Hypothesis no. 1 control allowed the discretionary action of
some of the administrators of consumer
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found in China since the days of gross value of final output of goods and
youth; services during a period of time by
Undeveloped insurance markets - businesses operating within national borders.
both social and private insurances are In economic literature there are numerous
not very developed in China approaches to the classification and ordering
(especially in rural areas) which leads of economic growth factors.
people to save for precaution; They were developed both by the
Liquidity constraints - the fact that possibilities for quantifying the direct and
there was not a very developed indirect contribution in prioritization of
market credit for individuals, it action by economic policy, but also basing on
allowed young people to borrow their appearance in the issue of economic
heavily to pay for education, buy dynamics.
assets or other expensive stuff, being This study aims to identify through a
forced to save first in order be able to simple linear model the impact of savings on
purchase the desired stuff.; Chinese and Japanese economic growth. The
Historical experiences - the decision data sample includes annual values of saving
to save or not is based on a historical during 1980-2014.
component i.e. the degree of poverty NB: it was considered a lag of five years
in a country that experienced some so that savings can be found in economic
period before and from this point of growth.
view China has suffered in the The simple linear model explains the
twentieth century; behaviour of a dependent variable Y in terms
Transition factors - the transition from of a single explanatory variable marked with:
a planned economy into a market Y=c+X1+
economy represented a superior The variable residue , includes the
motivation for people to save for effect of other explanatory variables,
being able to buy the assets, for unspecified in the linear equation, errors
example in privatization processes. regarding the indication of the model form
Demographics - China is the country (the model can be nonlinear) and other errors
that registered a significant baby such as measurement errors.
boom, and starting with this Empirical results:
generation reaching employment age Simple linear model that explains
there was also an increasing rate of economic growth behaviour based on saving
economies in China. One-child policy is relatively well specified and has equation:
has had a significant impact because For China: Economic growth=
China still has low old-age c+0.803*Savings
dependency ratio; For Japan: Economic growth =
High Savings Returns - the fact that c+0.601*Savings
there is a high demand from
investment companies and the foreign 4. Conclusions
capital was not very present made the
yields for savings to be raised; Primarily, the results of applied
econometric model can be interpreted so:
3. Empirical analysis investigation of the In the case of China, a direct
impact of savings on Chinese economic relationship exists between economic
growth, respectively Japanese growth and saving: a variation of 1%
of savings will determine on average,
Economic growth represents the increase a variation of 0.0803% economic
of macroeconomic indicators (calculated on growth, the other factors assumed to
the total economy or per capita) over a period be constant;
of time, usually one year. World economic In the case of Japan, a direct
development history shows that at all times relationship exists between economic
the welfare of the people was given by the growth and saving: a variation of 1%
gross domestic product, which represents the of savings will determine on average,
a variation of 0.0601% economic
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growth, the other factors assumed to [4] Hayashi, F., Takatoshi, I., & Slemrod, J.
be constant. (1989). Housing Finance Imperfections and
Secondly, the significant saving rates Private Saving: A Comparative Simulation
represented a cause of surpluses recorded by Analysis of the U.S. and Japan . NBER
Working Paper, 215-238, pp. 228.
both countries because saving reduces
[5] Schwab, L., & Thiercelin, P (1991).
consumption and investment generates a Leconomie du Japon. Paris: Nathan, pp. 107.
production increase. Thus, Japan, a country [6] Modigliani, F., & Ando, A. (1963). The life
almost entirely dependent on raw materials, cycle hypothesis of saving: Aggregate
managed to maintain a surplus trade balance implications and tests. American Economic
after the second oil shock for three decades Review, 55-84.
until the nuclear Fukushima disaster and in [7] Kikutani, T., & Toshiaki, T. (1991). The
the case of China, trade surplus increased Taxation of Income from Capital in Japan:
sharply in recent years beyond 2014 an Historical Perspectives and Policy
amount to 315 billion. Simulations. NBER Series Studies in Income
and Wealth, 267-293, pp. 291.
Thirdly, these significant rates of savings
[8] Horioka, Y. C. (2009). Do bequests increase
were the ones who supported the two or decrease wealth inequalities? Economics
countries in the first part of economic Letters, 23-25.
advance. In China's case with their help it [9] Harbaugh, R. (2004). Indiana University -
managed transition from one low income Kelley School of Business. Retrieved 03 12,
economy, planned, toward an economy 2015, from Indiana University - Kelley
market-based with middle income. The School of Business:
economies have played an important role in http://kelley.iu.edu/riharbau/harbaugh-
the first part of reforms allowing higher chuxu.pdf, pp.3-8;
investment rates when foreign capital was
very difficult to attract. Acknowledgment
Fourthly, saving rates allow both This work was supported by the strategic
countries to benefit from significant liquidity grant POSDRU/159/1.5/S/140863, Project ID
and as Japan in the late 80s gave the 140863 (2014), co-financed by the European
impression that it will acquire the entire Social Fund within the Sectorial Operational
world, we believe that this will be the trend Program Human Resources Development
and China will comply in the near future. 2007 2013.
Fifthly, an interesting aspect to note is
linked to the fact that at least theoretically
savings would be greater in the case of high-
income countries and less significant in the
case of countries where incomes are low, but
it was not the case of the analyzed countries,
both Japan since the 60s, 70s and 80s, 90s
China, representing exceptions.
5. References:
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Mitra Mariana
Ovidius University of Constanta, The Faculty of Law and Administrative Sciences
mariana_mitra@yahoo.com
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Smart [4], P. Carlen and A. Worrall [5] led to lower normative status, which entails the
the identification of the following features: change of laws. This tradition also continued
- the crimes committed by women were in the dawn of modernity, after the
explained as being influenced by biological Revolution of 1848, i.e. in 1866, in the
rather than by social or economic factors; context of the Romanian Civil Code of
- the representation of the reasons and Napoleonic influence. This Code
circumstances of the crime were not wrong incapacitated women economically and
or distorted; socially and made them universally unfit. In
- the sexual deviance (which can take a line with minors and idiots, any act
wide range, from broken hymen to concluded by a woman needed her husband's
"immorality" or prostitution) were included consent or the approval of the judiciary; the
in the criminal act. woman could not depend on her own income,
In this early stage of criminological she would lose her nationality if she married
research, scientists have launched hypotheses a foreigner, she could not become guardian,
and theories related to the "separate spheres" she had to remain at the domicile established
[6], which were found in laws, legal practices by her husband.
and research. The separate spheres include a According to Frida Adler, the abolition of
set of ideas about the place of men and the restrictions on female behavior enables
women in the existing social order, in the them to behave like men, including being
first quarter of the nineteenth century, both in violent, greedy and prone to committing
Europe and in other capitalist countries crimes. Adler has been criticized for the
undergoing industrialization. The ideology of mistake of mentioning the relationship
"separate spheres" placed men in the public between women emancipation and the
sphere (paid work, politics) and women in increase in the number of women offenders.
the private sphere (household, family). Adler assumed that low-income women seek
The division into "public sphere"/private to obtain, in some way, equality with their
dichotomy and man/woman also had male partners, and the offense became, thus,
repercussions in the legal area, without being a desirable occupation.
taken aback by the fact that the US law since Rita Simon had a point of view closer to
the mid nineteenth century gave the man a reality, interpreting the statistical data more
boundless power: "The Husband and the wife accurately. Because she did not find changes
are one person. This person is the Husband". in the number of women arrested for
Regarding Romanian feminism, committing violent crimes, she concluded
"historical documents testify that the legal that the increasing number of the women
status of women was humiliating, under arrested for crimes against property
human dignity. According to the tradition, as (especially theft, embezzlement and fraud)
far as marriage is concerned, the man was the [8] can be explained by the increasing
master. Vasile Lupu and Matei Basarabs opportunities to commit crimes, opportunities
Code of Laws provide that "the man was which women have at work (or in the public
allowed to seize and beat his wife if she did sphere). Moreover, Simon questioned
something wrong, but not too violently" [7]. whether the ideology of the equality between
Initially, women have accepted this men and women could lead to a greater
division of separate spheres, because, being interest from the police and the courts to treat
the "moral guardian" of the house, they could women like men equally.
influence and control the actions of men, in The criticisms brought to Rita Simon
general, and of their husbands, in particular. concluded that the opportunities generated by
They have become the moral guardians of the new jobs, for some women, without
their spouses, which can be seen from their increasing their economic level, will increase
philanthropic actions (American Army the number of crimes committed by them.
Salvation). In turn, the man played the role of The debate on women empowerment [9] and
father, husband and paid employee, which crime have not been fruitful, but persisted
granted him the status of creator and formal over time, and the questions raised are
arbitrator of morality and culture. important for criminology.
The opportunity of the Romanian feminist The period of 1975-1985 was
movement is primarily given by the female characterized by the development of
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Mitra Mariana
Ovidius University of Constanta, The Faculty of Law and Administrative Sciences
mariana_mitra@yahoo.com
Abstract evasion.
From a sociological perspective, tax
The emergence of tax evasion is linked to evasion is a complex phenomenon that
the very genesis of society, because evasion includes unethical and illegal actions of
is a social phenomenon that was born and natural or legal persons, in order to achieve
then evolved along with social evolution. As material benefits. Tax evasion is a social
a negative feature of any human society, tax phenomenon whose proliferation decreases
evasion and its forms of expression are found the overall level of the living standard since
in every society and in every form of power the resources of this phenomenon should be
organization. The existence of tax evasion is reflected in public funds or in the income that
an undeniable phenomenon and its negative supplies the States general budget. From a
consequences are strongly evident; therefore, strictly sociological perspective, tax evasion
it must be prevented and countered by can be defined as all those individual or
effective measures that respond to the collective practices, whereby pecuniary
complex nature of the phenomenon. benefits are unlawfully obtained, contrary to
the tax rules laid down by the society, to the
Keywords: crime, tax evasion, tax, taxpayer detriment of the general social interest.
J.E.L. classification: K3 In political-administrative terms, tax
evasion within the Romanian society is
generated by the fact that the legislation
1. Introdution adopted in order to prevent and combat this
phenomenon have not complied with the
Tax evasion includes all tax evasion facts rules on legislative techniques and lacked
and their forms of expression, existing at a transparency regarding the organization and
time, within a society. The effectiveness of functioning of public institutions. The rigid
countermeasures involves a thorough bureaucracy of the fiscal system favors and
knowledge of the concrete forms of this generates tax evasion because the taxpayer
phenomenon. If tax evasion is not known in seeks a prompt and reasonable resolution of
all its facets, prevention, and especially the his/her fiscal problems.
fight against this phenomenon, cannot be In economic terms, the proliferation of tax
achieved effectively. evasion is caused by everyone's aspiration to
In recent times, especially in the context improve his or her living standards. Thus, the
of the financial crisis, tax evasion plays a taxpayer examines the legal options, but also
special role in modern political states. In our the illicit ones, in order to secure a higher
country, tax evasion took a special scale, standard of living.
especially in the years following the From a cultural standpoint, there are cases
Revolution of December 1989, and it where some states consider that tax evasion
negatively affected the evolution of the is not an offense and, therefore, they do not
society as a whole and, in particular, the sanction it as such; however, there are also
economic environment. states which consider tax evasion as a serious
Practice has proved that tax evasion is deviation from the rules of ethics and social
achieved by increasingly ingenious methods, conduct. The cultural concepts regarding the
used by the taxpayers who seek to punishment of tax evasion differ from one
circumvent tax obligations. These practices state to another.
led the Romanian state to give priority to the In criminological terms, tax evasion
measures for combating and preventing tax involves a behavior deviant from the social
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and fiscal standards. From a criminological in order to remove it from the licit financial
perspective, tax evasion is a broader concept circuit [4].
as it includes any behavior affecting law and The major causes of the underground
morality. economy and, implicitly, of tax evasion, are
From the legal perspective, tax evasion is divided into the following categories:
determined primarily by the lack of - the increasing fiscal pressure by the
legislative stability, due to the relatively government (according to Swiss bankers, tax
frequent changes to the legislation on havens would not exist if states would not
preventing and combating tax evasion. increase taxes);
Tax evasion is one of the phenomena - the excessive regulations applied by the
analyzed both by practitioners and by authorities in trading, fiscal, banking,
theorists. However, in spite of everything that financial fields, resulting in the amplification
is written about the causes, methods, extent, of prohibitions, triggering, thus, the
control or penalties related to tax evasion, the emergence of new opportunities for fraud and
words designating this phenomenon are evasion;
unclear, and its area is uncertain" [1]. In - drug prohibition, the prohibition of the
order to understand the meaning of this sale of weapons, usury;
notion, it is necessary to know the correlation - corruption, which manifests itself in all
between tax fraud and tax evasion. economies and which consists in giving
In the literature, it is stated that: "when money in order to obtain public contracts in
talking about fraud, we discuss as much the field of customs, building and planning
about legal or legitimate fraud, about illegal permits, investment licenses, etc.[5].
fraud, international evasion, legal evasion, The criminological concepts regarding the
illegal evasion, tax havens or shelters. We causes leading to the emergence and
discuss about the abuse of the right to escape development of economic and financial
taxes, the freedom of choosing the path of the crime should be included in the analysis of
least taxed or tax understatement, the legal the causes of the underground economy
fraud or the underground economy" [2]. simply because this phenomenon (i.e.
On the other hand, tax evasion is defined economic and financial crime) is the "core of
as all legal and illegal methods by which the underground economy" [6]. In this
those interested circumvent, in whole or in context, there are two main causes of the
part, their wealth, from the requirements set emergence and development of the
by fiscal laws [3]. underground economy and, consequently, of
Thus, the legal tax evasion is considering, the emergence and development of fiscal
in principle, the interpretation and evasion [7]: too high taxation levels and
speculation of several incomplete legal excessive and bureaucratic rigidity of the
provisions; in its turn, the illegal tax evasion regulations and controls at the level of public
consists in the concealment, reduction, administration representatives.
withdrawal of the taxable amount or in the Excessive taxation, coupled with the
use of other means to circumvent legal absence of policies to encourage investments
provisions in order to avoid the payments due can lead to the emergence of some practices
to the state, by the taxpayer. The main causes that bypass the budgetary obligations, as
of the escalating tax evasion are the defense reactions against an unfriendly
excessive tax liabilities and the taxpayers political and economic environment.
fiscal educational gaps.
In Romania, the underground economy is 2. The forms of tax evasion
strong because it is determined by the
phenomenon of crime in the economic and We can talk about tax evasion at national
financial dimension (dirty money), a and international levels.
phenomenon characterized by a very high Tax evasion at national level. As regards
level of "financial engineering" made in the the national tax evasion, the Romanian
area of privatization, investment, financial- doctrine distinguishes between lawful or
banking institutions and the use of public legal tax evasion and unlawful or illegal tax
funds. Thus, effective tools are triggered for evasion. This distinction has emerged since
the conversion and diversion of capital flows the early twentieth century, and tax evasion
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in the interwar period was defined as a set of implies the violation of tax laws, in order to
"licit and illicit" methods [8]. avoid the payment of the tax obligations due
Legal evasion was defined as "the to the consolidated state budget. "The illegal
taxpayer's action to circumvent the law, using tax evasion is the only form of proper tax
a combination unforeseen by the legislator evasion, because only it violates the
and, therefore, tolerated by lost of sight" [9]. provisions of the tax law" [12].
In another definition, the lawful tax evasion Law 241/2005 criminalizes both proper
was considered "the way in which the tax evasion offenses (art. 9, letter a to g) and
taxpayer seeks to place himself/herself in a criminal offenses related to tax evasion (art. 3
more favorable position, in order to benefit, 8).
to a greater extent, from the advantages of Tax evasion at international level. The
the tax regulations in force" [10]. international economic situation sees the
Specifically, the taxpayer complies with international tax evasion as a consequence of
the statutory tax provisions but takes the excessive taxation at the national level
advantage of some incomplete provisions and and of the double taxation arising from the
thus obtains a tax regime favorable to autonomy of national tax regulations. The
him/her. The consequence of these legal national context causes the taxpayer "either
shortcomings and of the taxpayer's practice is to identify the most favorable tax regimes
the avoidance of the payment of tax that allow hiding the taxable items or to seek
obligations to the general consolidated solutions in order to avoid two distinct taxes
budget. Tax avoidance can occur by three in areas better protected in terms of taxation"
ways [11]: [13].
- exploiting tax legislation gaps; International tax evasion is achieved in
- the taxpayer's restraint from exercising most cases through tax havens that are "true
taxable activities; territorial enclaves benefiting from customs
- situations where the law itself provides extraterritoriality and coming out of the
the tax evasion framework by creating a scope of national laws" [14].
favor tax system. In the literature, it is stated that
In case of legal tax evasion, the taxpayer international tax evasion is achieved by two
acts with the intent to circumvent the law in means [15]:
tax matters, but his/her actions are reflected - abstinence, embodied in the taxpayer's
in the intelligent exploitation of fiscal inaction, nationally, through high tax
contradictory, ambiguous, inconsistent laws, burden. Thus, the taxpayer avoids producing,
in his/her favor, with the result of avoiding investing in his country, aiming to protect
the payment of tax obligations. The his/her business by transferring it in low tax
inconsistency, ambiguity and contradictions areas.
in the wording of the law on tax matters are - concealment of taxable items, by hiding
speculated to the detriment of the public the income or the assets that the taxpayer had
interest, due to the legislator's poor training, accumulated outside the national tax system,
or due to his/her own "interests". The providing the IRS with incorrect information
analysis of the national tax legislation reveals about them.
the following methods of legal tax evasion:
- purchasing goods wherefore the state 3. Effects of tax evasion
provides facilities, by investing a part of the
profit in order to avoid the payment of the A. The effects of tax evasion on state
income tax, although the goods do not have revenues. The direct and immediate
the utility pursued by the legislator; consequence of tax evasion on the formation
- using sponsorship and/ or donations to of state revenues is reflected in their
avoid the taxation of some part of the mitigation.
income; Together with the decrease in state
- increasing the deductible expenses by revenues, we also discover the existence of a
using 2% of the income as protocol reduced state budget that is unable to meet
expenditures, although this percentage is not the demands for state financial funds
economically justified. necessary to the State in order fulfill its basic
Regarding the illegal tax evasion, this functions. Given the sometimes acute lack of
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financial funds, the state took immediate investments in production and in the
measures consisting in the increase of the tax operations that trigger taxes results in the
rates on the existing taxes and in the increase in the tax burden and, therefore, in
application of new taxes. the fiscal risk incurred by any taxpayer. In
The increase in taxes triggers the increase these circumstances, the taxpayer will seek to
in fiscal pressure and the increase in the reduce this risk by any means and, therefore,
resistance to taxation, which is reflected in to reduce the tendency to make great
increased tax evasion. It is thus produced a productive and risky investments.
vicious circle where the increasing tax When this way of lowering the taxes to be
evasion leads to a sharp decrease of state paid is not possible, the taxpayer resorts to
revenues. The influence of tax evasion on the concealment of a taxable part of his/her
state revenues occurs in two ways: income or assets. The development of the
- directly, by stealing a portion of the underground economy includes the increase
revenues due to the state budget, under in the tax evasion share.
current tax laws; C. The social effects of tax evasion.
- indirectly, through executive measures Social inequity is the essential social effect of
taken in order to increase taxes and to tax evasion. Social inequity can also be
increase, implicitly, the tax burden. determined by the state policy focused more
Therefore, the essential components of a on granting incentives to foreign investors at
balanced state budget are the payment of the the expense of local investors, given that,
taxes and duties established by tax laws and internationally, the policy for protecting local
the dates on which they are paid. investors is promoted. Social inequity can
B. The economic effects of tax evasion. generate, in turn, a dramatic decrease in the
The economic effects of tax evasion should taxpayers' trust in government and politics.
be viewed in direct connection with the tax D. The political effects of tax evasion.
evasion influence on the reduction of state The political effects of tax evasion are
budget revenues. The economic effects of tax manifested by the citizen's (as taxpayer)
evasion can be divided into two categories: increasing mistrust in politicians and,
- effects on the taxpayer who complies especially, in those who are in power and
with tax laws; who, during their rule, promoted policies that
- effects on the taxpayer who violates tax have generated social inequity and unequal
laws. economic conditions for different categories
The increase in taxes and duties, i.e. the of taxpayers.
increase in taxation, triggers a corresponding
decrease in the taxpayers' (legal or natural 4. Conclusion
persons) revenues, for their own
consumption. Specifically, after paying taxes It is undeniable that tax evasion is part of
and duties, the taxpayers' income is greatly the market economy, and that its eradication
diminished and this does not provide them is practically impossible. The negative effects
the opportunity to reinvest and to increase of this phenomenon have repercussions on
their capital. national and international economy, as well
However, the state should give as on the society as a whole.
consistency to the measures taken in order to The procedures that the taxpayer
subsidize and support those who need them. identifies, in order to circumvent tax laws,
Given that tax evasion is growing and the are the result of numerous tax obligations
state budget revenues decrease, the state is required under the law. This is because the
unable to meet its obligations triggered by taxation measures set by the state affect one
social programs and social support. of the most important interests of taxpayers,
Due to the non-receipt of such subsidies, namely the monetary interest. In this context,
many taxpayers are in the position of the state and the taxpayer should be regarded
diminishing or even ceasing their activity, as two players who have common goals. The
assuming a fiscal risk in their business taxpayers purpose is to ensure financial
processes. The economic consequence stability and to earn consistent income,
resides in the production of serious economic whereas the state's purpose is to ensure a
imbalances. Any increase in the volume of balanced budget by obtaining amounts of
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down all accumulated capital and wealth, but child poverty, debt per child and the elderly-
that we pass along resources to future bias indicator of social spending (EBiSS).
generations. [5] The last dimension, (EBiSS), is rooted in
It is worth mentioning the fact that in accelerated population aging especially for
order to reduce social injustice all the OECD countries, as a result of longer life
countries need to continue to invest more in spans and lower fertility rates. So, the
education, training, trade-adjustment electorate became older and it is possible that
assistance, health care, community the policy maker favours this category to get
development and tax policy. The role of the as many votes, at the expense of assuring the
state in promoting development has increased intergenerational justice.
in the last decades, and there is a need to In terms of the environmental dimension
reflect on how this role can be effectively of IJI the ecological footprint was used,
articulated. [1] which compares human demands from nature
The intergenerational justice and its with the biosphere's ability to regenerate
effects are a matter, especially for aging resources and provide services. It is measured
societies. Often, the policy makers put the in global hectares and it captures in a
interests of older generations against those of single figure the general state of human
younger generations, as long as the first dependency on nature, or alternatively, the
category brings votes. In this context it is pressure put by human societies on their
absolutely necessary to remove existing natural environment. For the OECD countries
imbalances and their associated needs if we in the study, in the year 2008, we notice that
want to reach a higher degree of human the biggest environmental pressure was
development. recorded for Denmark, following by United
States and Belgium. By contrast, the
2. Measuring the intergenerational justice countries with the lowest values of the
indicator are Hungary, Poland, Israel,
As indicator which measures the Portugal, Japan and New Zealand. Only
intergenerational justice we chose a synthetic seven of 29 OECD nations had an ecological
index, named Intergenerational Justice Index surplus in 2008, which is given by the
(IJI), developed in a study about biocapacity of a country to exceed its
intergenerational justice in aging society [8]. ecological footprint. It is about the countries
The IJI take into discussion two major with a large land mass and with a low
aspects of intergenerational justice. First, it is population density, like Canada or Australia.
about the outcomes that the older people The other countries recorded a net deficit
leave legacies to the younger. This is how the because the ecological footprint exceeds the
discrimination appears. Second, the IJI tries biocapacity.
to capture the possibilities by which the For the social dimension of IJI the
policy makers are biased toward older indicator named child poverty was used, this
generation. because child poverty can create a legacy
In this study, presented by Pieter with problems for decades into poor
Vanhuysse, the intergenerational justice is childrens future. For 2011, it was found that
measured for 29 OECD countries and it is in United States more than 21 per cent of
viewed from multiple perspectives, taking children lived in poverty, followed by
into consideration important environmental, Southern European countries such as
economic-fiscal and social aspects of this Portugal, Spain and Italy, as well as Israel
highly complex subject. We cannot talk and Canada. The countries under study with
about the problem of intergenerational justice the lowest values for child poverty were the
outside the framework provided by Nordic countries and Slovenia.
sustainability. So, it is obvious, that all the The economic dimension is highlighted
aspects measured and included in IJI are by public debt rates per child, an indicator
derived from a set of clearly identifiable that recorded permanent increases in recent
indicators addressing the three core decades. It is interesting to note that variance
principles of sustainability. in debt per child within the OECD is very
The four IJI dimensions included in the large. For example, the off-the-scale outlier is
composite index are ecological footprint, Japan, where each person aged below 15
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faced an outstanding amount of government tend to increase or decrease together, i.e. the
debt of $794,000 in 2011. Estonia is at the extent to which one variable tends to increase
opposite side, because it currently saddles its as the other increases. A value of zero
youngest generation with a government debt indicates no such tendency.
less than $6,500 per child. Other examples The equation is:
are Italy and Greece which occupied the next
two ranks with around $310,000 to $300,000
in debt per child, after Japan. where di = the difference between the
To calculate the IJI, the values for ranks of corresponding values Xi and Yi and n
were normalized. We specify that X is is the number of observations.
the dimension for each country i, is the For effect size, Cohens standard will be
maximum performance in the entire OECD used to evaluate the correlation coefficient to
sample, is the actual performance of determine the strength of the relationship, or
country and the formula for normalizing can the effect size, where coefficients between
be expressed as: 0.10 and 0.29 represent a small association;
coefficients between 0.30 and 0.49 represent
a medium association; and coefficients above
0.50 represent a large associate or
The numerator is given by the difference relationship.
between the maximum sample value and the
value achieved by the country under Figure 1 Scatter for IJI and HDI (2011)
consideration and the denominator is given
by the difference between the maximum
value and the minimum value in the sample
country set. This implies that a better relative
performance is associated with a higher
value, with each value varying between 0
and 1. After normalization, the indicator was
aggregated following researcher-imposed
weights: 0.2 for child poverty, 0.2 for net
ecological surplus, 0.2 for debt per child and
0.4 for EBiSS.
The results show us that the most
So, we put in correlation the
intergenerationally just countries are, in
intergenerational justice index (IJI) and
order, Estonia, South Korea and New
human development index (HDI), for a
Zealand, followed by Norway, Israel, and
sample to 29 OECD countries, using
Sweden. The five least intergenerationally
nonparametric correlation. For HDI we used
just countries are Japan, the United States,
the values for 2011, because most indicators
Poland, Greece and Italy.
which composed IJI have as reference also
the year 2011. The value for is 0.195977,
3. The nonparametric correlation between
IJI and HDI which indicates us a weak correlation
between variables.
Spearmans Rank correlation coefficient
is used to identify and test the strength of a Figure2 Descriptive statistics for HDI
8
relationship between two sets of data. It is Series: IDU
7 Sample 1 29
assumed that the variables under 6
Observations 29
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5. References
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The research theme brings into attention We are taking into discussion the issues of
some fundamental aspects such as the economic justice and human development in
economic justice in relationship with human a world that is marked, on the one hand, by
development and sustainability. In this enormous inequalities in contemporary living
approach we take into consideration a way to conditions, and on the other, by real threats to
identify and develop a composite indicator the prospects of human life in the future.
for measuring the level of economic justice. The economic justice, defined as the
We will also highlight the recorded gaps for existence of opportunities for meaningful
the countries in this domain. Simultaneously, work and employment and the dispensation
we debate the fairness of some actions that of fair rewards for the productive activities of
promote human development and reduce the individuals. These are generally treated as an
inequality in the areas as income, wealth aspect of social justice. To acknowledge the
distribution and consumption. necessity of viewing economic justice as an
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element of social justice is, again, to approach differently the two above
investigate for a social perspective on human mentioned concepts. They consider that the
affairs. "distributive justice" represents only the
The social and economic justice is economic dimension of social justice and it is
researched by many authors. Among them is not the pure social justice. Therefore, they
Rawls with his noteworthy book A Theory argue that the problem of justice or injustice
of Justice. The author requires the reader to is also considering other social goods than
envision a society of free citizens holding the economic goods.
equal basic rights, which cooperate within an When we bring into question the problem
egalitarian economic system. Starting from of economic justice, we must take into
these, he debated the justice as fairness and consideration the different aggregation
he submitted two main criteria for fairness: levels. When we refer to persons, reasons,
the first criterion is equal basic rights and circumstances or goods, we talk about
liberties and the second is a principle of microjustice. At the macrojustice level, for
economic justice which involves fair equality example, are applied general rules to the
of opportunities and the mutual economic allocation of the bulk of goods and resources.
benefits of all groups. Known as the It is useful to take into consideration the
difference principle, the last principle is the domain of "mezojustice", which refers to
most controversial problem and in the goods that are specific, but important and can
authors view, this means to assume a concern everybody, such as education and
continuing conscientious efforts achieving health. Therefore, macrojustice is essentially
fair equality of opportunity, it requires concerned with the allocation of the value of
mutual benefit, in the prospects of the various productive capacities. In these conditions,
income groups. [7] people can have equal, full social liberty that
Rawls first principle of justice covers implies free and unfettered labour and
liberty, and he argues that, once a certain earning. When the macroeconomic justice is
level of material well-being is secured, it done, what remains raises issues of
should always take priority over the second microjustice.[3]
principle regarding distributive justice. So, The problem of economic and social
liberty is more important than the distribution justice is also revealed to the whole world
of social and economic inequalities. through The Earth Charter, which is an
Also, the distribution of property is international declaration of fundamental
brought into attention by Nozick. He values and principles considered useful by its
considers that the property rights are supporters for building a just, sustainable,
important because they derive from self- and peaceful global society in the 21st
ownership. A person has a right to what they century. It includes interdependent principles
produce, because they own their labour, for a sustainable way of life as a common
which they invest in creating the product. standard by which the conduct of all
The philosopher argues that justice involves individuals, organizations, businesses,
three ideas. First is the justice in acquisition, governments, and transnational institutions is
which refers to how you first acquire to be guided and assessed. One of the four
property rights over something that has not broad commitments refers to social and
previously been owned. The second is justice economic justice. For this the principles
in transfer, which is about how you acquire invoke the poverty eradication as an ethical,
property rights over something that has been social, and environmental imperative; the
transferred. The last one is the rectification of ensuring that the economic activities and
injustice, which debates the issue of restoring institutions at all levels promote human
something to its rightful owner, in case of development in an equitable and sustainable
injustice in either acquisition or transfer. [6] manner; affirming gender equality and equity
[4] as prerequisites to sustainable development
Consequently, the recent political and ensure universal access to education,
philosophers, such as John Rawls, Robert health care, and economic opportunity in
Nozick or Amartya Sen treat the terms of addition to upholding the right of all, without
"social justice" and "distributive justice" as discrimination, to a natural and social
synonyms. Contrary, other philosophers environment supportive of human dignity,
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bodily health, and spiritual well-being, with into account that the extreme values or
special attention to the rights of indigenous outliers could distort the transformed
peoples and minorities. [9] indicator.
The equation is:
3. Developing a composite indicator
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5. References
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Nancu Dorinela
Ovidius University of Constanta
cusudorinela@yahoo.com
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SMEs act more effectively at the local level 3. The knowledge of the notions regarding
than larger firms within and outside of the the knowledge-based economy and
village. organization within SMEs
2. Manufacture of products and services
for differentiated demand - relatively small The White Chart of SMEs in Romania
size of the SMEs is a key factor of their 2014, presents an interesting study on the
specialization. The SMEs, due to their size knowledge of the notions regarding the
and their relatively limited productive knowledge-based economy and organization
potential, cant make a wide range of within SMEs. The study showed that in 2013,
products or services, being obliged to 26.13% of the entrepreneurs know these
concentrate its activities in the production of concepts, and 73.87% do not know yet these
homogenous goods or services in a narrow notions. Compared with 2012, this indicator
nomenclature. shows a positive trend, increasing by 6.25 pp.
3. The activities are based on the [4]
central role of the entrepreneur - one of the The study analyzes the knowledge of the
most important features of SMEs is notions regarding the knowledge-based
centralizing the decision to the owner. In case economy and organization within SMEs by:
of a small business, character, skills, SMEs age (under 5 years old, 5-10 years,
competencies, attitudes and behaviors of 10-15 years, 15 years);
entrepreneurs exerts a much stronger regional affiliation of SMEs (northeast,
influence, even decisive, on the business. southeast, south, southwest, northwest,
4. Overlapping frequently the center, Bucharest-Ilfov);
entrepreneur, owner and manager role - in SMEs size (micro, small, medium
small and medium enterprises, often the enterprises);
entrepreneur is in fact the owner and the legal form of organization (SA, SRL,
manager in charge. other legal forms);
5. The exercise of participatory branch in which SMEs operates
entrepreneurship. (industry, construction, trade, tourism,
6. Calling for cooperation strategies transportation, services);
with other companies.
level of training of entrepreneurs
7. Involving in subcontracting
(primary, secondary and high studies).
processes of products and services.
Table no.1 shows the centralization of the
8. The flexibility of the SMEs,
results of the survey conducted by the
especially of the small firms. The flexibility
National Council of Private Small and
of SMEs lies in their ability to seize the
Medium Enterprises in Romania, and
opportunities offered by the market and adapt
presented in the White Paper of SMEs in
quickly to changes.
Romania in 2014, Bucharest, July 2014, pp.
In practice, there are a variety of types of
170-173.
SMEs, generated by many factors involved in
The table outlines the profile of the
the survival of SMEs. Two known specialists
entrepreneur who knows the concepts of the
- Birley and Westhead - have listed eight
knowledge-based economy and organization.
criteria according to which SMEs are
It has higher education, a seniority on the
classified, namely:[3]
market between 10-15 years or over more
firm age; than 15 years, comes mainly from the south
type of property; and southwest region, falls into the category
type of management; of medium-sized stock company, and
organizational structure; operates in the services, construction and
overall production; trade sector.
industry the company belongs;
location of the company;
profile of product / market
relationship.
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Tab. no. 1 - The knowledge of the notions regarding the knowledge-based economy and
organization within SMEs
Most poorly informed on the concepts of The last part of the table highlights the
the knowledge-based economy and correlation between knowing the concepts of
organization are entrepreneur with primary knowledge based economy and knowledge-
studies, with a seniority on the market with based organization and the performance of
under 10 years, coming from the center of the SMEs between 2013 and 2012. As can be
country and falls into the category of micro seen from the above table, those who are
limited liability company and operates in familiar with these concepts, said they had
sectors such as transportation. increased their performance in 2013
compared to 2012.
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4. Conclusions
5. References
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years, young people were key participants in generation around the world through two
movements that overthrew dictatorships in interconnected processes. As technology
Tunisia and Egypt, protesting against increases the autonomy of young people as
austerity measures and corruption in Greece independent entities that communicate
and Spain and defending public education in various messages, at the same time, it
Canada and Chile. Young people around the strengthens the relationship of dependency
world took part in the Occupy movement to between young people and traditional social
draw attention to the increasing financial institutions, especially the family, in the form
inequality [7]. of financial support and parents supervision.
Young activists without a residence visa Young people equipped with mobile phones
(for example, Jorge Gutierrez, Nancy Meza in different societies face the same central
and many other activists of the United We question: how to use this new opportunity for
Dream and Dreamactivist.org organizations ) independence in actual conditions imposed
organized demonstrations and meetings on them, especially by the family and at
which in 2012 forced the Obama school.
administration to announce a temporary We can say that young people are and will
cessation of deportation of young people be the promotion engine of new media
without a residence visa. These are just a few technologies and social online activism. They
recent examples [8]. are educated in a society that enables them to
The young innovate the media practices in fully appreciate the power granted by quick
social movements. Costanza-Chok [9] access to information from various sources,
provides further examples of conclusive in different forms [12]. They create a general
cases of social movements where young moral and civil sense and involve
people had a huge contribution, such as the themselves, even through a simple comment,
use by high school and secondary school that can generate a chain reaction of other
students of the social network MySpace and comments.
SMS, as well as leaflets and films in order to
circulate information about the protests 3. Activism
against the immigration law proposed by the
American Congressman Jim Sesenbrenner in Activism, social change and the practice
2006. In 2007, young people used blogs and of democracy are strongly interconnected.
social networks to organize protests against This is the fruit of activists and social
discrimination in Jena 6 case (in Jena town, movements that push society forward, report
Louisiana, 6 African-American boys were problems, failures and inequities and harness
accused of assaulting a white teenager, but everybodys ideas for a better world.
the charges were exaggerated precisely Effective activism articulates its message in
because the city's population is such a way that ordinary people can identify
predominantly white). themselves with the message and the purpose
Another example is from 2010, when the of companies and encourages activities and
organization DREAMs activists broadcast actions designed to influence decision-
live on Ustream the meetings in the office of making processes.
Senator McCain to draw attention to the need In an interview for Go Free magazine,
for a reform of immigration policies. And a Adi Dohotaru, member of the Social Action
more recent example is the use of Facebook Group (GAS) and the organization Civic
and Twitter in 2012 to circulate information Organizations Working Group (gLOC)
about justice for Trayvon Martin, a young answers the question what it means to be an
African-American killed by a neighborhood activist in Romania, as follows:
guard. Young people use every new tool I understand activism as a form of
offered by the media for their own objectives, intensity. It is the effort, vitality and energy
including for social movements [10]. we need in order to express truths, causes or
According to Castles [11] we have a problems. In this sense, anyone can become
young generation with a much better defined an activist. For example, I am a historian and
sense of curiosity, with a need for much more journalist. It is not a formula restricted to the
information than their predecessors. The use NGO sector or to the informal and
of mobile phones transforms the younger spontaneous movements that begin to form in
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Romania. Then, my activism is a strong was successfully applied only for short
expression of a more democratic citizenship, periods throughout history, political
of a more inclusive and equalizing society. mechanisms deciding that the representative
[...] In short, beyond differences, the activist democracy approach is more effective, but
that I am considering sums up the now it no longer meets the needs and
intellectuals critical function and the demands of the society that wants a larger
representative role of the politician, and larger involvement in decision making
becoming a synthesis of all these. mechanisms.
Therefore, activism or being an activist Citizen participation, as described by Igor
should have three basic components: a Koryakov and Timothy D. Sisk [15] "has
critical attitude, a representative role and to many functions in developing a strong
have a certain power to attract attention to a system of local self-governance, as it is a
certain problem. This is where Social central way to build awareness of the
Networking Websites step in, with their importance of the local structures and a
ability to convey the message with the speed means of understanding the concerns and
of pressing a button. desires of the community".
According to Joyce [13] digital activism Thus, participatory democracy and this
includes all online tools, along with the awareness of the political, cultural, or social
increasing use of mobile- based technologies. context are part of a mechanism in which
It has the enormous potential to expand the they complement and determine each other.
capabilities of activists and social Participatory democracy cannot exist without
movements, but this does not separate it from a group, without a well-established collective
non-traditional digital forms. The purpose of identity able to express its views in cases of
social movement and activism has not major importance for the interests of the
changed, but only the tools and tactics by group.
which it is expressed. Eventually, the final An example of defending a groups
result, i.e. the activism itself, is important, interests and use of a strong collective voice
not the chosen tools, technologies or is the approval for Barrancones thermal
infrastructures. power plant construction, in Chile during the
Aidan Ricketts [14] reinforces this idea: summer of 2010. The power plant was to be
"While it can be very satisfying to generate a located 25 kilometers from Punta de Choros,
lot of activity in the digital world, the where there is a nature reserve which hosts
important test of effectiveness is how well about 80% of the Humboldt penguins in the
such activity translates to change in the real world. The project was approved by a
world". Therefore, activism becomes all the striking majority. However, the approval of
activities and actions that occur in the the project led to street protests that
process called democracy. The link between culminated with a 2,000 protesters march to
new trends of reorganization of the way the presidential palace. They asked President
society understands democracy and the new Sebastian Piera to obey the government
hybrid activism - a combination of online and program which specified that no thermal
offline - goes beyond the mere success or power plant would be built to endanger the
failure of a street movement. environment. Two days after the protests, the
President publicly announced that the plant
4. Participatory democracy would not be built near Punta de Choros [16].
This is a concrete example of collective will,
In the context of the very controversial solidarity and involvement of individuals in
globalization, the continuous expansion of solving a problem of national, even
new communication technologies, and the international interest.
amazing speed with which information In his book, Le nouvel esprit de la
travels around the world, a neglected idea is dmocratie. Actualit de la dmocratie
rising again. The story of participatory participative, L. Blondiaux points out that
democracy is an old one, from the Iraqi code citizen participation takes place at least on
of laws called the Haudenosaunee, to the five levels of activity: information,
participatory democracy of the 7-8 centuries consultation, consensus, decision-making and
BC in ancient Greece. However, the model self-governance. The same five key levels
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[6] Costanza-Chok, S., Youth and Social [22] Statistic Brain.com, Statistici de utilizare a
Movements: Key Lessons for Allies, 2012.. Twitter.
[7] Couts, A., The new era of hashtag activism http://www.statisticbrain.com/twitter-
in The Kernel Online Issue. statistics/ 25.02.2015.
http://kernelmag.dailydot.com/issue- [23] Idem
sections/features-issue- [24] Poster, M., Cyberdemocracy: the Internet
sections/11390/hashtag-activism-real/. 18 and the public sphere in Virtual Politics, ed.
January 2015, accessed on 05.03.2015. David Holmes, Thousand Oaks, Calif. Sage,
[8] Costanza-Chok, S., op. cit. 1997.
[9] Idem
[10] Couts, A, op. cit.
[11] Castells, M., The rise of the network
society, Blackwell Publishers, Cambridge,
1996.
[12] Kaiter, O., Competena intercultural,
Bazele comunicrii interculturale. Teorie i
practic, Editura Faber, Veliko Turnovo,
Bulgaria, 2012, pp. 125 138.
[13] JOYCE, M., Digital activism decoded: the
new mechanics of change, International
Debate Education Association, New York,
2010.
[14] Ricketts, A., The Activists Handbook: A
step-by-step guide to participatory
democracy, Zed Books Ltd., New York,
2012.
[15] Koryakov, I. and SISK, T., Democracy at
local level: A guide for South Caucasus,
International Institute for Democracy and
Electoral Assistance, 2003.
[16] Carcamo, P. F., Cortes, M, Ortega I., Squeo,
F.A., Gaymer, C. Crnica de un conflicto
anunciado: Tres centrales termoelctricas a
carbn en un hotspot de biodiversidad de
importancia mundial, [online], Rev. Chil.
Hist. Nat., vol. 84 (2), 2011, pp. 171-180,
accessed on 20.02.2015
http://www.scielo.cl/scielo.php?pid=S071607
8X2011000200003&script=sci_arttext.
[17] Blondiaux, L., Le nouvel esprit de la
dmocratie. Actualit de la dmocratie
participative, ditions du Seuil et La
Rpublique des Ides, Paris, 2008.
[18] Polletta, F., Jasper, J.M., Collective Identity
and Social Movements, Annual Review of
Sociology Vol. 27, 2001, pp. 283-305.
[19] Taylor, V., Whittier, N., The New Feminist
Movement in Feminist Frontiers:
Rethinking Sex, Gender and Society, ed.
Richardson, L. and Taylor, V., McGraw-Hill,
New York, 1992.
[20] Go free magazine februarie 2012
http://www.gofree.ro/2012/02/06/despre-
miscarile-sociale-nesupunere-civica-si-
activism-social/
[21] Radsch, C.C., "Unveiling the
Revolutionaries: Cyberactivism and the Role
of Women in the Arab Uprisings", James A.
Baker III Institute for Public Policy, Rice
University. 2012.
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Prvu Daniela
University of Piteti/The Bucharest University of Economic Studies
ddanapirvu@yahoo.com
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and [7] applauded the provisions of Directive Figure 1. The evolution of public
2004/18/EC of the European Parliament and contracts awarded to social enterprises in
of the Council of 31 March 2004 on Romania during 2008-2014 (number)
the coordination of procedures for 100
the award of public works contracts, public
supply contracts and public service contracts.
50
According to the regulation, Member States
could reserve the the rightto participate in
the award of a public contract to sheltered 0
workshops or they could provide for such 2008 2009 2010 2011 2012 2013 2014
contracts to be performed in the context of Public contracts
sheltered employment programmes where Public service contracts
Public supply contracts
most of the employees concerned are persons
with disabilities who, by reason of the nature Source: author's calculations
or the seriousness of their disabilities, cannot
carry on occupations under normal Public service contracts awarded to social
conditions [8]. On 26 February, 2014 enterprises in Romania have the largest share
Directive 2014/24/EU of the European (over 85%), both in terms of number and
Parliament and of the Council on public value (Figure 2). In terms of numbers, public
procurement and repealing Directive supply contracts awarded to social
2004/18/EC was published in the Official enterprises in Romania remained relatively
Journal of the European Union. The new stable over the analised period.
legislative package on public procurement
represents a step forward due to the fact that Figure 2. The evolution of public
it allows contracting authorities to reflect on contracts awarded to social enterprises in
the social considerations in evaluating bids Romania during 2008-2014 (value)
[9]. 6000000
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0 2000
Cooperative
2008 2009 2010 2011 2012 2013 2014
1500 societies
Public contracts
Contracting authorities
1000 Associations
Social enterprises winning public contracts
Source: author's calculations 500
0 Fundations
A contracting authority awards averaged
2008
2009
2010
2011
2012
2013
2014
1.7 public contracts to social enterprises and
a social enterprise wins, on average, 1.5
public contracts.
Most public contracts were awarded to the Source: author's calculations
associations, but the difference from the
public contracts awarded to the foundations Public tendering procedure used in all
is very low (Figure 4). 49% of public contracts awarded to social enterprises was
contracts were awarded to the associations offer request. In each of the seven years of
and 48% of public contracts were awarded to analysis, the most economically
the foundations. Cooperative societies have a advantageous tender was the most widely
poor representation to the Romania's public used criterion (Figure 6).
procurement market.
Figure 6. The evolution of public
Figure 4. The evolution of public contracts awarded to social enterprises, by
contracts awarded to social enterprises, by the award criteria
the manner of organizing (number) 80
35 60
30 Cooperative 40
25 societies
20
20
Associations 0
15
2008 2009 2010 2011 2012 2013 2014
10
5 Fundations Lowest price criteria
0
2011
2008
2009
2010
2012
2013
2014
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st Ilfov Centre
12% 20%
Source: author's calculations
South
Public institutions awarded public 10% North
contracts to social enterprises representing South East
82% of total. Central authorities have the East 5%
lowest representation within the contracting 32%
authorities awarding public contracts to Source: author's calculations
social enterprises.
Southeast and Central regions hold the
4. The territorial distribution of public most important positions in the regional
contracts awarded to social enterprises in distribution of public contracts awarded to
Romania social enterprises in Romania during 2008-
2014.
The territorial distribution of public
procurement contracts awarded to social 5. Conclusions
enterprises indicate (Figure 8) that there are
19 counties with a very low representation There is some correlation between
(less than 1% of total). Romanian public procurement market
development and the evolution of public
Figure 8. Frequency of Romanian social contracts awarded to Romanian social
enterprises participation in the public enterprises, in terms of number and value of
procurement market public contracts [10]. The public
procurement market in Romania decreased
during 2008-2014. The steepest decline was
recorded in the 2012-2013 period [11].
Associations and foundations are the most
represented social enterprises in the public
procurement market in Romania. The main
consequence of this situation is a very large
share held by public service contracts in the
total number of public contracts awarded to
social enterprises.
Public institutions are contracting
high frequency low frequency
authorities with the greatest involvement in
medium frequency very low frequency
the award of public contracts social
enterprises in Romania, but the situation may
Contracting authorities in the Bucharest- be the result of advanced position that such
Ilfov awarded public contracts to social organizations hold public procurement
enterprises representing 11% of total. market in Romania.
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Most public contracts performed by social [3] Phillips, S., Hebb, T., "Financing the third
enterprises were awarded by contracting sector: Introduction", Policy and Society, no.
authorities in Western and Southeastern 29, 2010, pp. 181-187.
Romania. [4] McCrudden, C., "Using public procurement to
achieve social outcomes", Natural Resources
The Romanian social enterprises
Forum, no. 28, 2004, pp. 257-267.
participation to the public procurement [5]. Schulten, T., Alsos, K., Burgess, P., Pedersen,
market is very low. Romanian social K., "Pay and other social clauses in European
enterprises receive public financial support public procurement. An overview on
(particularly through the European Social regulation and practices with a focus on
Fund), but this one measure can not be Denmark, Germany, Norway, Switzerland
sufficient. The support granted by public and the United Kingdom", Study on behalf of
authorities through facilitating social the European Federation of Public Service
entreprises participation in public Unions (EPSU), Dsseldorf, December 2012,
procurement market is a form of positive http://www.boeckler.de/pdf/wsi_schulten_pa
y_and_other_social_causes.pdf
discrimination and a tool through which
[6] Bovis, C., EU Public Procurement Law, The
social enterprises can better deal with the Second Edition, Edward Elgar Publishing
competitive challenges of the contemporary House 2012, United Kingdom
economy. [7] Hebly, J., European Public Procurement:
The idea to develop a strategy for creating Legislative History of the Utilities: Directive
a favorable environment for the development 2004/17/EC, Kluwer Law International
of social economy (found in press releases of Publishing House, Netherlands, 2008
enterprise social networks in Romania) is [8] Directive 2004/18/EC of the European
important both to clearly define the concept Parliament and of the Council of 31 March
and to create an institutional framework 2004 on the coordination of procedures for
the award of public works contracts, public
necessary for the development of social
supply contracts and public service contracts.
enterprises and the attraction of European [9] Directive 2014/24/EU of the European
funds. Such a strategy should target, among Parliament and of the Council on public
other things, including social criteria in procurement and repealing Directive
public procurement procedures and 2004/18/EC
expanding facilities for social enterprises [10] Pirvu, D., "Supporting tools for social
access to public procurement market in enterprises existent at European level",
Romania. Annals of the Constantin Brncui
University of Trgu Jiu, Economy Series,
Acknowledgements Issue 1, volume I, 2015, p. 209
[11] Pirvu, D., "Features of the public
procurement market in Romania", 2nd
This paper was co-financed from the GLOBAL CONFERENCE on BUSINESS,
European Social Fund, through the Sectorial ECONOMICS, MANAGEMENT and
Operational Programme Human Resources TOURISM, 30-31 October 2014, Prague,
Development 2007-2013, project number Czech Republic
POSDRU/159/1.5/S/138907 "Excellence in
scientific interdisciplinary research, doctoral
and postdoctoral, in the economic, social and
medical fields -EXCELIS", coordinator The
Bucharest University of Economic Studies.
6. References
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Popa Florina
Institute of National Economy-Romanian Academy
florinapopa2007@gmail.com
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produced". The benefit obtained from the available economic resources, but also on
use of the resource may consist of the competence, qualification, skill and
breaking a deadlock or in obtaining and prudence of people who produce these
strengthening an advanced welfare, as goods, respectively, on the human
well as in the good working of a system. resources.[1] These are the labour reserve
[12] of which the company dispose of, it is the
The DEXONLINE Dictionary defines the creative, active element of the economy,
resources as being: "a reserve or a source by branches of acitvity, up to the level of
of means susceptible to be harnessed in a organizations, causing the efficacy of the
given circumstance" [8] other (natural, material etc..) resources
use.
3.2. Categories of resources, implications The human resources should be
in the economic and social activity distinguished both as primary resources
(labour resources) and derived resources (the
In the area of resources coverage there are education stock, Research, Development and
found the following categories: [2] Innovation), whereat it shall be added the
a) Originary or primary resources which information resources The human resources
include: condition the volume and variety of human
Natural resources having the greatest activities - a result of the quality of
importance to satisfy the human needs; workforce, based on the experience and
Human resources (the demographic information gathered; their effect on the
potential) of a particular economic natural resources led to their separation from
importance by the action carried out on the natural environment,enabling their draw
the natural resource. and use in the production of goods. [2]
b) Derived resources - the result of the The information, based on the education
primary resources use. system, should be transferred in the areas of
Natural resources. The natural science, tehonology, human culture, giving
environment is the framework of human an image to the quality of human resources
existence and the source of the economic and the possibility of its qualification.
resources and of the society progress. In It is needed to underline the distinction
general, by natural resource, it should be between the concept of human resources
meant "a substance, a nature, an object, the human potential at society level and that
present in nature, which in the most cases, of staff, whose comrehension area is
is put to the purpose of the use aimed to restricted to the working apt population being
meet the needs (energy, food, recreation), on the staff, so, the effectively employed
of the individuals, animals or population. [3]
vegetables.[14] Signifying one of the elements of
The natural resources are appreciated as economic growth, the human resources
such, valuable, in as far as they remain in the belong to both demographic sphere (number,
natural shape, unchanged, the only primary the structure of the workforce), and the
activities that are carried out on them, being economic one, adapting and developing
the uncreative activities, the extraction and adequate to the demands of the two areas.
purification. [16] [15]
The significance of the concept has a Thus, "the human resources function is
complex character, in this category, there are understood as defining a better possible
included the natural elements, indispensable arrangement between employees (of an
to human existence and economy organization) and resources (human)" [13].
development; their preservation implies Derived resources - economic resources -
leading the technical progress towards a are the result of the use, of the two
sustainable use, expressed both through a categories that make up the primary
rational exploitation and by an improvement resources (natural and human), giving
of the activity of their management. [5] weight to the efficiency of their use.
Human Resources. The quality and The natural resources, which are drawn in
quantity of goods needful to meet the the economic cycle, by the action of the
human needs, do not only depends on the human resources, enable the creation and
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Level 5 in Education
Popovici Norina
Ovidius University, Faculty of Economic Sciences, Constanta
norinapopovici@yahoo.com
Moraru Gheorghe
Mircea cel Batran National College
gheorghe.moraru@yahoo.com
Moraru Camelia
Academy of Economic Studies, Bucharest
cami.moraru@yahoo.com
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unnecessary new principles for the tasks that can be transferred to the experts in
development of individuals. In this respect, various other fields, as they should deal only
we propose the approach of a new and with students and with their evolution for a
revolutionary system. precarious labor market, with many problems
In this paper, we will analyze the to solve. "Good is the enemy of great."[2].
academic system and we will propose Level 5 teachers, regardless of the
solutions inspired by Jim Collins's structure circumstances where the education activities
from "Business Excellence"; this structure are carried out, are able to achieve excellence
arose from the research made over five years, in teaching, guidance and education, being
by a team of professionals, on large largely driven by the passion of getting
companies. We carefully analyzed the involved in education.
sources of all problems, especially the But where are these level 5 teachers? Is
economic ones, which brought us where we the Romanian educational system able to
are, as a developing country; when identify them and place them at the helm of
examining each problem, we inevitably change?
reached the same answer, i.e. education. "The If the system were managed by inside
correct education is the basis for prosperity, experts who could regard the education as it
jobs and economic growth for all."[1]. should, i.e. as an industry that can "produce"
people able to develop and apply the
Fig. 1 Concept of Excellence - ideology that can save the whole country
processing based on Jim Collins's scheme from its terrible calamity, then level 5
teachers could be identified easily, placed in
the right places and have the perception
necessary to implement their passion and
flair.
Concisely, a level 5 teacher should first be
passionate, responsive to the students'
different needs; he/she should be rigorous
and not a dictator; he/she should be patient,
friendly and, not least, he/she should
demonstrate an unwavering will.
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taken into account for the examination. individually, but by comparison, promoting a
Another major problem is that students are win-lose mentality.
no longer interested in courses; they are We should start from the idea of synergy
interested in graduating, being happy to get a in higher education and try to find a third
simple 5. way, which, however, requires giving up to
The competition, which supposedly our own perception of reality and not
stimulates the students' creativity and interest drawing the curtain immediately after the
in novelty, no longer exists; therefore, show but staying there to see the reactions of
mediocrity is gaining ground at the expense all the participants to show, as these reactions
of excellence and the education system is can greatly assist teachers in their fierce
sinking even more into a dense and cold fog fighting for accepting the reality.
[3]. Education is encased by a rigid
Yet, despite reality, level 5 students are management system, and, from now on,
everywhere around us, only that they are teachers should achieve excellence through
inhibited and "buried" by the trends which do the customization of each student, by a
not allow them to express their true values, as disciplined thinking from both perspectives,
they might be out of the social pattern created by satisfying both the curriculum and the
by the media. student's need to adapt both his/her own
emotional and intellectual intelligence, by
2.3. First "who" and then "what"? stimulating their creativity and by helping
them identify their own hedgehog concepts.
So far, we have emphasized that the "The hedgehog concept"[2], as J. Collins
priority in achieving excellence lies in the presents it, consists of the answers to the
answer to the question "who?"[2]. questions:
If we find level 5 teachers, we make a What are you deeply passionate
team and place on them on the right "bus" about?
seats, we can easily find answers to the What can you be the best at?
question "what?". What sets your engine in motion
Things would flow by themselves and (both as a teacher and as a student)?
excellence would be achieved; it is true that it
will take time, but what is more beautiful Fig. 3 "The hedgehog concept"
than to be part of an important thing, to know
you have brought your contribution to the
change that brought prosperity? maybe you
will not rejoice now because the fantastic
results will not appear overnight, but, in your
soul, you will feel some day that only the
passion, the discipline and the dedication
were the flywheel which set the change in
motion [4].
3. Disciplined thought
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5. Conclusions
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Popovici Veronica
Ovidius University of Constanta
verovnp@yahoo.com
Muhcina Silvia
Ovidius University of Constanta
muhcina@gmail.com
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after the burst of the tech-bubble could be generations, with it being a homogenous
considered in itself a sub-trend within a factor throughout gender, income, education
mega-trend and a definite game changer from etc. and therefore suggesting that
all points of view. Social media became a generational segmentation is extremely
huge part of our lives with the rise of IT useful [3].
giants like Facebook or Google, triggering an Thus we receive an important clue about
immense increase in the ease and agility with Millennials relating with brands and using
which we create and distribute all kinds of them in order to communicate on their
digital content. This particular aspect created personal image. They will tend to look for
fruitful opportunities for Millennials to strong and clear brands that will carry a
become true pioneers in both production and perception among their peers [2]. In
consumption of technology. addition to this, given their predilection for
The fact that they were brought up during instant gratification mentioned earlier, it is
the ascending years of this major societal likely they will choose brands that achieve
shift makes Millenials intrinsically their specifically intended goals in a straight-
connected with digital media. Being highly forward manner.
influenced by the standardization of mobile Last but not least, research shows us the
technologies that allow people to be online Millennial consumer values opinions of peers
whenever and wherever, Millenials are or friends over those of experts or corporate
generally more active at integrating channel induced ones. The use of mobile
technologies into their daily lives than devices for consulting consumer reviews
previous generations [7] and rely on social while documenting for a purchase decision is
networks as a vital part of their interactions thus common practice for them [1]. Along
[5]. the same lines, they also consider word-of-
mouth to be more important than advertising
4. Marketing to Millennials [9] and look into forums and consumer
reviews when shopping, for opinions from
Beyond social communications, people they perceive to be similar to them.
Millennials also welcome the benefits Taking all this into consideration, it seems
brought forward by social networks from a that marketing for Millennials is almost
consumer perspective. They use their indissociable from digital marketing, which
mobile device and traditional internet means implies a shift in paradigm and channel mix
to connect to retailers or brands, not being in order to effectively engage with consumers
afraid to acknowledge these technologies as from this generation.
marketing channels [7]. If marketers want to successfully target
As previously mentioned, Millennials are Millennials, they will have to rethink where
savvy when it comes to technology, sensitive and how this should be done. The biggest
to the ecological trend, generally objective, difference is seen in transitioning from print
enjoying social interactions and well and TV to the internet and social media as
integrated in a highly accentuated the main communication channels. In order
consumerist trend. These characteristics for companies to actively engage with GenY
already cast some light on how they behave consumers, they will have to join them in
as consumers, but what really defines them their territory the digital arena [3]. This
from this point of view is the tendency to means investing in the graphic aspect of a
satisfy their need for status through certain companys online presence at all levels in
brands they choose to associate themselves order to capture a Millennials attention,
with, as well as that of leveraging on online developing a personal touch [3] that will
collective intelligence when taking make it easier for them to relate to the
purchasing decisions. company and maybe most importantly
The first tendency is defined by Eastman nurture and invest in their community of
as status - the tendency to purchase goods already loyal consumers, encourage them to
and services for the status or social prestige generate pertinent and genuine content and
value that they confer on their owners. He thus set the base for attracting new Millennial
further on demonstrated status consumption customers via what truly speaks to them.
to be greater for Millennials than previous
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milestones like marriage and children. They Instead, theyre turning to a new set of
do want to find a partner at some point, but services that provide access to products
they tend to take this big step later in life without the burdens of ownership, giving rise
(around the age of 30 nowadays, compared to to what's being called a "sharing economy."
23 in the 1970s, according to this body of This challenges traditional business models
research). across the map, causing imminent
This trend is consistent with that of restructuring of common fields but not only.
leaving the nest later than previous One great example of this is crowd
generations have and putting off more and funding an online phenomenon enabling
more the idea of buying their own entrepreneurs to raise capital from different
house.There are some underlying factors to sources, normal people included, rather than
this: first of all, due to Millennials specific relying on traditional sources like banks or
generational traits, there is a stronger venture capitalists to start and grow their
relationship between them and their parents, businesses [4].And such examples can be
who tend to be more involved in their seen in all sorts of other fields, like Airbnb
childrens lives than in the case of other for travel and accommodation, BlaBlaCar or
generations. Moreover, we are barely Uber for transportation and the list could go
recovering from a major economic recession. on and on.
Therefore, people valuing closeness to their Last but not least, wellness is a daily,
families will be even more likely to continue active pursuit for Millennials. Surveys
living with them even after reaching concluded they commit to more exercise,
adulthood, particularly if they continue to take smarter decisions regarding what they
rely on the family members for housing and eat and smoke less than their parents or
other financial support during their higher grandparents. This is an aspect of their lives
education years. where they are willing to spend significant
Taking again the example of the US, we amounts of money for compelling brands that
believe this trend is an obvious one, as the satisfy their needs precisely. With all the
chart below shows it: online data, apps and users review available
Figure 3:Share of 18 to 34 Year-Olds online, they are able to find all the
Living with Parents information they need to either track their
training sessions online, find the best places
for healthy food or simply get educated about
their improved lifestyle aspirations.
All of these aspects seem to fall along the
general lines of quality of life being the focus
of this generation: beyond valuing staying
close to family and friends, Millennials want
to have free time for recreation to cherish
with them, while works falls on a secondary
step in their hierarchy of priorities. Their
professional activities should nevertheless be
encompassed in creative jobs, through which
they can have a positive social impact on
their communities, as well as on society as a
whole [14].
7. Conclusions
Source: 15 Economic Facts about With the Millennial generation and its
Millennials, Oct 2014 [13] unique set of characteristics and attitudes
reaching their prime working and spending
And the discrepancies go beyond where years, it is expected that they will have a
they choose to live: Millennials have also significant impact on the global economy as
been reluctant to acquiring items such as a whole, through the emerging trends they
cars, music and luxury goods in general. seem to impose.
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Regneal Horaiu,
Paicu (Cora) Eliza Laura
Bucharest University of Economic Studies, Bucharest, Romania
regnealahoratiu@gmail.com
eliza.paicu@yahoo.com
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There are three main ways to finance An energy mortgage is a mortgage that
energy efficiency projects: Self-financing, credits a home's energy efficiency in the
Loans, Third-party financing. home loan. For an energy efficient home, for
Rezessy and Bertoldi [4], in their report example, it could mean giving the home
on financing energy efficiency, Report buyer the ability to buy a higher quality home
prepared by the Joint Research Centre of the because of the lower monthly costs of heating
European Commission, provide a and cooling the home. For homes in which
comprehensive overview on the financing the energy efficiency can be improved, this
instruments available. We hereby cover the concept allows the money saved in monthly
main instruments presented in the study. utility bills to finance energy improvements.
Through a loan, the borrower initially Integrating loan payments with energy
borrows the amount needed (the principal) to bills and allowing utilities to cut off energy
finance the project, and is obligated to pay supply to defaulting customers has the
back the loan (along with the cost for potential to both lower collection costs and
borrowing the money the interest) in enhance credit quality of the financing
regular instalments.. scheme, thereby lowering financing costs.
Third-party financing is provided by an Other ssupplementary finance mechanisms
entity other than the two main parties in a include public finance mechanisms, policies
contract; in this case, anyone other than the and programs.
building owner or construction contractor. Grant programs (investment grants or
Debt financing refers to the acquisition of interest rate subsidies) are often provided by
funds by borrowing: a lender provides capital governments to support the upfront cost of
to borrower for a defined purpose over a energy efficiency projects that may entail too
fixed period of time. Debt options include high investment costs and long amortisation
corporate or project loans under recourse or periods.
limited recourse structures, leasing Soft loans are commonly used for energy
arrangements and full or limited guarantees. efficiency measures. Loan conditions
Equity financing refers to the acquisition include: extended payback periods, low or
of funds by issuing shares of common or zero interest rates, short-term interest deferral
preferred stock in anticipation of income periods, and/or inclusion of payback grace
from dividends and capital gain as the value periods.
of stock rises. Private equity is essential for Revolving funds offer loans that can be
growing businesses that want to expand their repaid with the extra cash available due to
activities, as well as for large-scale project energy savings. The repaid loans are used to
developers. finance new EE projects.
Subordinated debt financing, sometimes Taxation can be a powerful tool to
called Mezzanine Financing, is capital that stimulate energy efficiency by giving
sits midway between senior debt and equity incentives to invest in such projects through
and has features of both kinds of financing. tax exemptions and through incentive
Subordination refers to the order or priority regimes related to e.g. capital gain tax,
of repayments: subordinated debt is property tax, VAT and accelerated or free
structured so that it is repaid from project depreciation. [4]
revenues after all operating costs and senior
debt service has been paid. Subordinated debt 4.3. Financing green energy in
financing is generally made available directly Romania
from insurance companies, subordinated debt
funds, or finance companies. In Romania, the most common financial
Vendor financing helps the manufacturer products used are commercial loans, soft
sell its product by facilitating financing of a loans and grants/investment subsidies. The
customers purchase. Vendor financing majority of EE projects financed are in DH
occurs when a financier provides a vendor and CHP, as well as industry, street lighting
with capital to enable them to offer "point of and private residential buildings.
sale" financing for their equipment. Leasing The most popular financing program in
is the most common form of vendor Romania is EU EBRD Romania SME
financing. Sustainable Energy Finance
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tough eligibility criteria required by the banks to access loans - high financial ratings
Eligibility collateralization - oversized guarantees requested
lack of interest from the bank side to finance activities without a strong history
high costs in accesing a bank loan
beaurocracy - high volume of paperwork needed to prove strong economic status - time cost
Cost
long payback time - time cost
lack of state budget - lack of funds to be allocated to energy efficiency development
reluctancy of banks in financing start-ups
the public and private sector lacks staff in energy efficiency field
Awareness
lack of banks knowledge on EE projects, considered high risk
lack of communication between project developers and financing actors
Source: the authors.
There are three major types of barriers banks, cost barriers and lack of awareness on
that we were able to break down the experts energy efficiency field.
opinions into eligibility criteria required by
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Our experts showed there are few environment have been partially eliminated
financial institutions capable of providing through the Law 121/2014, which mentions
medium term financing solutions. Moreover, the utter necessity of removal of all barriers
they are highly reluctant in granting loans to to promoting energy efficiency.
green project due to their little experience on Our final scope of the study was to
financing this industry and lack of awareness identify practical innovative financing
or knowledge in the purposes of such solutions suggested by the experts in energy
initiatives. The high risk perceived by banks efficiency field.
is reflected in high administrative costs of the From our research conducted on the
loans offered or inaccessible eligibility experts group interviewed, innovative
criteria, requesting a high financial status of scheme to finance energy efficiency should
the company assessed or of oversized have the goal of risk reduction and financing
collaterals. the stability of the project itself. The majority
However, one big obstacle is that of opinions revolved around the necessity of
economic and legislative instability, on top of defining new financing products and
a not motivating institutional background, assessment tools, adapted for the benefit of
makes new investments risky. the stakeholders, given the current limitation
Still, the experts highlighted during the of the existing instruments available and low
interviews that a part of the legislative accessibility rate (Figure 5)
burdens and barriers related to the legislative
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Acknowledgement
This work was cofinanced from the European
Social Fund through Sectoral Operational
Programme Human Resources Development
2007-2013, project number
POSDRU/159/1.5/S/142115 Performance and
excellence in doctoral and postdoctoral research
in Romanian economics science domain.
7. References
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Rus Mihaela
Faculty of Law and Administrative Science,
Ovidius University, Constanta
psiholog_m@yahoo.com
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units as research entity for multiple aspects consumers think (perception), I feel
of consumer behaviour. (impression) and what they do (conduct);
Consumer behaviour determines
2.6 The Hobbesian Model exchanges between human beings, such trade
can take place only when the transaction,
Hobbesian model of consumer behaviour, both operators (seller and buyer) satisfy their
also called factors of organization, highlights mutual interests
a different perspective on the "black box",
the behavioural mechanisms and processes. 4. References
English philosopher Thomas Hobbes
developed this model. The Hobbesian raises [1] Blithe, Jim, Consumer behaviour,Editura
the issue of consumer behaviour related Teora, Bucureti,1998, pag.124
people representing organizations. This [2] McNEAL, James, Consumer Behaviour an
pattern of behaviour puts attention on goods Integrative Approach, Texas A & M
and services for institutionalized collective University, 1982 Little, Brown and Company
(Inc) pag.83-85.
entity. In this type of question consumers
[3] Rus, Mihaela, Organizational Psychology ,
purchasing decisions are made on goods or Ed. University Press, 2010
services, the specificity of such decisions [4] Catinoiu, J, .; Teodorescu , N. , Consumer
being marked by the type of organization. Behaviour / Theory and Practice, Editura
Such decisions are taken under certain Economic, Bucureti ,1997, pag.148.
conditions by persons specifically [5] Neagu, V ; tefnescu, V ; Teodorescu, N.
designated, and in others the collective Models of investigating consumer behaviour,
management of various organs[7]. Editura Oficiul de informare documentar
Practical applications of this model are pentru comer, Bucureti, 1984,pag.126.
important, given the very broad market they [6]Mihu, I ; Pop, M. , Consumer and supply
management,Editura Dacia , Cluj-Napoca
represent. The complexity of this type of
,1996 , pag.14.
consumer behaviour study is enhanced by the [7] Rus, Mihaela, Rus, Saturation cognitive
wide range of products and services specific schemes in managerial decision published in
organizations. modern research in psychology: Research
Hobbesian model proposes two different Quantitative & Qualitative Research, Coord.
views: Marius Milcu, ISBN 978-973-749-594-
predominance of rational reasons related to 5,p.106-114,Vol2,EdituraUniversitara,
the interests of the organization; Bucuresti, 2008
preponderance of personal reasons.
The truth is somewhere in between: as
attached as an individual in the
organization part in decision-making on
purchase of goods and services that are
reflected in its competence and training, its
aspirations, its value judgments etc.
3.Conclusions
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Rus Mihaela
Faculty of Law and Administrative Science,
Ovidius University, Constanta
psiholog_m@yahoo.com
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the civil servants and the general rules that recognition of the achievements of the
apply to them are set out in EU legislation. public information by management and civil
Organize and conduct an evaluation involves servants establishing a performance
much more than observing from outside and management system understandable and
making an independent assessment of the useful
program in question. One of the most achieving the objectives set
complex issues facing professional evaluators recognition of the achievements of the
refer to establish how they will perform the public information by management and civil
work and how they will identify and servants
formulate conclusions and recommendations
of the evaluation. The methodology chosen 2.2.Impact assessment using performance
for the evaluation of the program is of vital management systems level civil servant.
importance in ensuring the transparency of
the exercise. The nature of work (which It should be made based on the degree of:
involves an assessment or judgment of the Impact assessment using performance
merits of an intervention) may result in management systems level civil servant .It
public managers to look for justifications, are should be made based on the degree of:
less enthusiastic about the evaluation work. It Individual development plans Performance
is therefore vitally important that evaluators achievement of individual performance
can show that they adopted a thorough and plans
credible methodological approach in the align individual performance plans with
assessment. Evaluation activity is closely organizational goals
linked to the monitoring process, since data developing a performance-oriented
obtained from this process is one of the organizational culture
sources of information used in the evaluation. In this respect we have examples: were
The evaluation examines however many observed increases in yield due to the
more aspects than on the extent to which technical performance of civil servants
financial and physical progress made at some equipment purchased and their effective joint
point in implementing the program are on also observed an improvement in their
schedule. physical condition, thanks to the set of
For evaluation work to meet the goals ergonomic furniture.
pursued by the complex process at EU level Customer performance module has been
of 5 criteria were used in any evaluation successfully implemented and is used by
exercise. These are: relevance, efficiency, most civil servants being reduced search time
effectiveness, impact, sustainability. [3] on different units of information related to
Assessment exercises not necessarily citizens. Decreased the chances of error and
examine all five evaluation criteria. The consolidated data were essential for
multi-annual programming and monitoring improving public service.
system allowed the development of an
"evaluation cycle" aimed at programming 3. Simulation using performance
exercise. Consequently, the five evaluation management systems level civil servant
criteria are not necessarily considered in any
assessment, but are adapted to the time at To understand the concepts of systems
which intervenes evaluation stage of program thinking in organizational context of public
implementation and evaluation objectives. [4] administration, simulation is a unique
experience of understanding of resource
2.1.Impact assessment using performance flows and the importance of coordination of
management systems across the transpromovare internally. Shadowing is how
organization and public department. best to facilitate the performance process.
This simulation aimed at: Integrating
It should be made based on the degree of: strategy and performance management in a
establishing a performance management process based on adding value;
system understandable and useful Manage performance by improving the
achieving the objectives set processes of accumulation of knowledge in
administration;
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5.1. Maintaining motivation for public linked with the organization or management,
activities civil servants will feel the lack of confidence
when it occurs; his cognitive resources will
In addition to the intrinsic motivation of focus on issues nonproductive, or other self-
any professional activity an official must centered attitudes and behaviors secure.
have a minimum stay of extrinsic motivation Obviously, the presence of trust in the
for the work they submit. The transaction manager does not guarantee performance, it
must be fair and effort rewarded accordingly. still remains dependent on a number of other
This is more of an expectation, a kind of factors: knowledge, skills, abilities,
psychological contract, and not initialed an organizational support, motivation etc. [7]
agreement in writing, because no official Among the attitudes and behaviors secure,
relationship with the organization that the most important public officials are in the
controls are. When a public official working direction of her self that focuses on proactive
more, it depends on the capacity performance information and documentation close to
evaluation system to capture this additional endorse his performance alongside other
effort. influential people in the organization. Often
If the system fails to capture additional it is a losing strategy, which has only a kind
contributions, civil servant is not material of placebo effect, but it is a strategy that
reward for his work. This could decrease the takes seriously diminish the yield
level of confidence in those responsible, performance of public activities. An attitude
within the organization, this refuge of the of concern diminishes concentration, since a
evaluation system. Conversely, when system civil servant spends more time and energy
performance evaluation seems appropriate to worrying about what his manager could do
reflect officials published, confidence in against its interests, so that civil servants will
those responsible for the performance have fewer cognitive resources to file efforts
evaluation system will increase. Further, if, towards performance. There are a number of
while properly assessed civil servant receives theories empirically supported, cognitive
a reward merit and the extent of its psychology about the human capacity to
assessment, frustration will quickly turn into process information: people have limitations
motivation and will, consequently, decrease in terms of "cognitive resources and attention
professional effort as a result of cognitive resources". Any intense and persistent mental
dissonance felt. [4] concern is able to distract the public from
official work performance.
5.2. Psychological comfort and attention
focused on work 6. Conclusions
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motivation and control officials published the International Conference The Economies of
conduct of administrative processes . [8] Balkan and Eastern Europe Countries in the
It requires a process of development and changed World EBEEC 2012 Sofia, Bulgaria
management performance management, ,May 11-13, 2012, http://ebeec.teikav.edu.gr/
[8] Macarie, F. C., Management of organizations,
which should give civil servants the
Editura Eikon, 2012;
opportunity to perform at optimum level and
to encourage understanding of
responsibilities associated with ongoing
communication channels occupied by each
officer, assuming priorities and correlating
factors of implementation in practice ,
performance management strategy. This
involves adopting a management style that
encourages communication between officials
and management, feed-back frequently in
both directions and foster teamwork,
something that will eventually bring a
positive image of public administration
organizations by promoting performance, so
high quality public services for the
community.
Any public is included in a specific
environment, influencing and conditional
actions and decisions leading factors.
Depending on external factors, the
management of the institution decides on
short and medium term priorities and takes
into account both the risks and associated
mitigation measures such as the opportunities
here emphasize the need to improve civil
servants acid, which can promote positive
activities of the institution, into a well
defined time horizon, of course, all this is
directed towards providing quality services
that are correlated with the general public
interest.
7. References
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State Violeta
Valahia University of Targoviste
viostate@yahoo.com
Tnase Loredana Cristina
Valahia University of Targoviste
loredanatanase80@yahoo.com
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* Persons "opts for bookkeeping based owed on "annual net income determined in
double entry accounting rules organize and real system based on accounting data" and
lead their own accounts under the accounting will draw on the income statement of
regulations in force, for economic operators, Romania (code 200) obtained from
to specific trial balance without preparing independent activities, rental and leasing,
annual financial statements."[2] agricultural, forestry and fishery.
As I stated earlier, based on data reflected
in accounting and taking account of existing 3. The dependency relationship between
tax regulations, it shall calculate the tax the nature and amount tax liabilities and
liability of economic entities and legal form of business organization -
subsequently in preparing of tax declarations comparative study
for each type of obligation.
Although not obliged to prepare financial Regardless of organizational form, both
reporting documents, individual businesses / companies and individuals that carry out
family will determine the amount of taxes income generating activities have an
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obligation to lead and organize financial expenses incurred in order to achieve revenue
accounting, providing "chronological and of a fiscal year (not adequately their
systematic registration, processing, publish registration accounting), minus the non-
and maintain information on financial taxable income and plus deductible expenses
position , financial performance and other ".
information regarding the activity performed Taxable profit= Income- Expenditure
both for their domestic needs and in relations paid to achieve revenue- Non-taxable
with current and potential investors, financial income+ Non-deductible expenses
and trade creditors, customers, public Both categories of taxable income and not
institutions and other users. "[3] deductible expenses are full or limited
Among the users of the accounting deductibility expressly provided in in the tax
information provided is included the state to law. Important to note is that taxable income
which economic entities have a number of is calculated and highlights quarterly,
tax obligations, resulting in taxes, social cumulative from the beginning of the year.
contributions constitute income to the state So the tax due for the current quarter is
budget, local budgets and other budgets and determined based on the relationship:[5]
national funds. The legal framework of all Profit tax on taxable profit calculated -
these tax obligations and the taxpayers who cumulatively from the beginning
owed is provided by Law 571/2003 on the Cumulative taxable profit for the tax
Fiscal Code, updated where, for tax purposes, until the end of the previous quarter =
any other laws prevail even in the event of Tax owed for the current quarter
"conflicts "between them. For our study Microenterprise tax revenue is calculated
comparative we retained the tax analysis, by applying the quota of 3% on taxable base
enterprises' income tax - subject of study is represented by the revenues from any source
the Limited Liability Company or in terms of the applying legislation. Tax
microenterprise and income tax from calculation and settlement is done quarterly.
independent activities - subject of study in Revenue tax from independent activities is
this case is individual enterprise. determined by applying the tax rate of 16%
Microenterprise is a Romanian legal entity on taxable income, taxable period is
which is not conducting the business in represented by the fiscal year. Taxable
banking, insurance and reinsurance, capital income represents net income determined in
market or gambling and which meets the annual real system based on accounting data
following conditions at 31 December of the "as the difference between gross income and
previous fiscal year: deductible expenses incurred in order to
"- Derives income, other than consultancy achieve revenue" except as provided by the
and management in over 80% of total Tax Code. Note that gross income is the
revenue; amounts collected and the equivalent in lei of
- Achieved revenues of less than the RON income in kind of activity and other revenue,
equivalent of EUR 65,000; while deductible expenses must be included
- Its share capital is held by persons other in the expenditure of the financial year in
than the state and local authorities; which they were paid. Non-cash expenses by
- Is not in dissolution with liquidation, nature which do not imply cash flow, and
registered in the commercial register or the depreciation expenses are also deductible
courts, according to the law."[4] expenses to the extent that fulfill the
Follows from the above that a limited condition to be related incomes obtained.
liability company may be: For example we consider the service of an
- Taxpayer, payer of income tax; economic entity whose main activity is the
- Taxpayer, payer of revenue tax of transport of goods by road. Revenues,
microenterprises according to the law. expenses, receipts and payments made by the
Individual enterprise is, in our case, the entity during a financial year are shown in
taxpayer payer tax on income from the table below:
independent activities. Income taxes are
calculated by applying 16% tax on profits,
which in turn "is calculated as the difference
between income from any source and the
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Table no. 2. Statement of income, expenses, receipts and payments of a financial year
Element Revenue Expenses, excluding Receipts Payment
(lei) depreciation costs income s charges
Period (lei) (lei) (lei)
Quarterly Cumulative Quarterly Cumulative
Quarter I 26460,50 26460,50 15645,08 15645,08 - 24766,97
*
1) Fiscal result quarter I = 26460,50 - (15645,08 Calculated tax quarter III: 16% x 5358,63 =
+ 239,25) = 10576,17 lei 857,00 lei ;
Tax due quarter I = 16% x 10576,17 = 1692 Tax registered quarter II : - 1692,00 lei
lei Tax due quarter II: - 835,00 lei ; diminishing
2) 3% x 26460,50 = 794,00 lei of the tax claim on the state
3) Fiscal cumulative result quarter II = 73310,54 6) 3% x 65125,63 = 1954,00lei
- (82024,13 + 239,25 x 4 months) = - 7) Fiscal cumulative result quarter IV =
9670,59 lei 212510,76 - (178809,75 + 239,25 x 10
Calculated tax quarter II: 0 lei ; months) = 31308,51 lei
Tax registered and paid quarter I : 1692,00 Calculated tax quarter IV: 16% x 31308,51 =
lei 5009,00 lei ;
Tax due quarter II: - 1692,00 lei ; tax Tax registered quarter III : - 835,00 lei
claim on the state Tax due quarter IV: 4174,00 lei
4) 3% x 46850,04 = 1406,00 lei 8) 3% x 74074,59 = 2222,00 lei
5) Fiscal cumulative result quarter III = 9) Annual net income = 166250,76 -
138436,17 - (131402,79 + 239,25 x 7 192761,86 + 14354,85 - 239,25 x 10 months
months) = 5358,63 lei = - 14548,75 lei
Tax due: 0 lei
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Stoica Adrian
Ovidius University, Constanta, Romania
stoica-constantin@xnet.ro
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The right of preference consists in the The accessory real rights (guarantees,
holders possibility to exercise prevalently privileges) are those rights that depend on the
his/her right on the same assets, in relation to existence of other rights; for example, the
the holders of other rights. For example, if a right to mortgage. They are accessories to the
right of claim is accompanied and secured by rights of claim.
a mortgage right, the holder of the mortgage If the main real rights regard the
right (the mortgagee) has the opportunity to materiality itself of the article, being at the
prevalently exercise his/her right of claim, service of the right holder, the accessory real
from the mortgaged property price, in rights regard the monetary value of the
relation to the other creditors of the same article, this value being set aside in the
debtor. interests of the right holder.
According to traditional views, real rights In their turn, the main real rights are
are limited, being expressly regulated by law, divided into the right to property (public or
while the rights of claim are virtually private) and real rights deriving from or
unlimited because they arise from any valid corresponding to the right to property.
legal document, from lawful or unlawful From didactic reasons, we can only recall
legal acts (i.e. from human actions committed that the right to property is divided into the
without the intent to produce legal effects, right to public property, which belongs
effects that are produced, however, under the only to the state or to administrative-
law: overpayments, unjust enrichment, the territorial units, and the right to private
destruction of assets that attracts torts, etc.). property, which belongs to natural and legal
persons of a particular type, and the right to
2. Real rights. Definition and classification private property of the state, administrative -
territorial units (county, city, town, village),
Real rights (jus in re) are those and of other legal persons established by
subjective patrimonial rights under which the state and local authorities, such as
holder may exercise the attributes conferred autonomous administrations or national
by law, directly, on the assets to which they companies. The real rights derived from the
relate, without needing other people's property right may be, in turn, derived from
concurrence. the right to private property or corresponding
It should be emphasized that real right to the right to public property.
represents a relationship between people on The real rights corresponding to the right
one article and not a relationship between a to public property, under the regulations in
person and an article. The real right requires force, are:
a legal relationship regarding an article, a) the right of administration (art. 867-
between the active and the passive subject, 870, the New Civil Code);
the latter including all the indeterminate b) concession rights (art. 871-873, the
persons who have the negative obligation of New Civil Code);
not prejudicing the holders exercise of the c) the right to use free of charge (art.
real right. Within this relation, the contact 874-875, the New Civil Code).
between the person and the article is These real rights are established through
immediate, under state warranty and control: an administrative action, within certain legal
the article is subdued or subject to the person, power relationships, and they represent ways
it is obliged to comply. However, this is only of exercising the right to public property.
apparent, as an article cannot be the passive Therefore, they do not dismantle public
subject of a right. property, not being opposable to the owner
The doctrinarian classification of real through administrative appeal; however,
rights consists of main real rights and through civil appeal, they are opposable erga
accessory real rights (privileges, real and omnes. As we have already mentioned, in
personal guarantees). practice, they can be also assimilated to the
The main real rights are those rights that procedures for the exercise of public
have an existence independent of the other property.
rights; therefore, they do not depend on other In contrast, the real rights derived from
rights such as, the property, the use, the the right to private property (also called
usufruct, etc. dismemberments of the property right) are
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opposable erga omnes, including to the The surety is not presumed, it must be
owner. The dismemberments lack some of expressly assumed under a written document,
the property attributes, their holder detaining authentic or under private signature, under
the possession, use, or material or (partially) the penalty of nullity, wherefore it is
legal disposal, while the owner will always considered a personal guarantee.
have the legal disposal of the asset. The d) The autonomous guarantees are
dismemberments of the right to property are: commitments whereby the issuer, as
a) the right of superficies (art. 693-702, guarantor, undertakes, at the request of a
the New Civil Code); person, to support the latter in front of a
b) the right of usufruct (art. 703-748, the creditor, the execution of an obligation to do
New Civil Code); or not do something. This type of guarantees
c) the right to use and the habitation can also be assimilated to personal
right (art. 749-754, the New Civil Code); guarantees.
d) the right to servitude (art. 755- 772, e) The retention right is that accessory
the New Civil Code). real right (or imperfect real guarantee) that
Returning to the accessory real rights (of gives the opportunity to the creditor, who is,
guarantee or privilege), as already at the same time, debtor of the obligation to
mentioned, they have no independent return or deliver the article of another party,
existence, as they always depend on the to retain that article and to refuse to return it
existence of other rights. These accessory until his debtor, creditor of the property,
real rights are referred to and regulated by the executes the obligation arising in connection
New Civil Code as guarantees or privileges with the expenses incurred in its
and they can also be divided into: real preservation, maintenance or improvement.
guarantees (mortgage, pledge, lien), Therefore, the lien falls into the category of
privileges and personal guarantees (surety, imperfect real guarantees. It is considered a
autonomous guarantees).[2] real but imperfect guarantee because it does
a) The right of mortgage is an accessory not confer the prerogative of the right to
real right on movable or immovable, tangible pursue or of the right of preference, but the
or intangible, determined or determinable prerogative of the right to participate, in the
assets or body of assets, which grants its event of the foreclosure of the asset upon
holder, called mortgagee, the opportunity to which it is exercised, to the distribution of
pursue it in anyone's hand and to prevalently the assets price, as provided by law [art.
be paid its price. Being established on certain 2498, par. (2), the New Civil Code].
assets, this right of mortgage represents f) The lien is an accessory real right
indirectly a real guarantee to its holder (the constituted in favor of a creditor on movable
mortgagee); tangible assets or negotiable securities issued
b) The privileges are accessory real rights in a materialized form, belonging to the
belonging to creditors who, by virtue of their debtor or to a third party, in order to ensure
claims, have the opportunity to be paid, in the execution of the debtors obligation. It
priority, from the value of the debtors can imply the debtors dispossession of the
determined movable and immovable assets, pledged asset or, in the case of registered or
even before subsequent pledgees or bearer securities, it can entail their remission;
mortgagees (e.g. trial expenses incurred in regarding security notes, it may imply their
the common interest of creditors, burial endorsement, for warranty purposes. The lien
expenses in relation to the condition and also implies the attributes of pursuance and
status of the deceased, the expenses for the preference and it recognizes to its same
conservation of the article, the rest of the holder a real guarantee over the assets that
sellers price on the sold immovable asset, fall under its object.
etc.).
c) The suretyship is a contract whereby 3. The rights of claim. Definition
one party (fidejussor) binds to the other
party, which holds, in another relation, the The rights of claim (or personal rights)
status of creditor, to perform, free of charge are defined as those subjective patrimonial
or in return for payment, the debtors rights under which the active subject, called
obligation if the latter does not perform it. creditor, may require the passive subject,
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called debtor, to give, do or not do persons- i.e. erga omnes. Thus, the obligation
something. of the undetermined passive subject resides
The rights of claim are also called in not doing anything likely to impede the
personal rights, as opposed to the real ones, exercise by the active subject of his/her right,
because they are opposable only to certain which entails a general negative
persons (debtors). obligation.[4]
According to the legal doctrine, these In terms of their legal effects, real rights
rights are made up of two elements: an are accompanied by the right to pursue and
interpersonal relationship between the by the right of preference, belonging only to
creditor and the debtor; an economic element, the holder.
which consists of the creditors right on the In contrast with the real right, the right of
debtors patrimony; this right is called claim is a relative right because it involves
general or shared guarantee [3] determining, from the very outset, both the
Regarding the legal relationships active subject (the creditor) and the passive
engendered by the rights of claim, they are subject (the debtor) the only obliged party
called relationships and obligations, as an but also the only party whom this right is
obligation (to give, do, or not do) will always opposable. Regarding the obligation
correspond to the right of claim. Therefore, enforceable against the debtor, it may be both
the right of claim can appear as a legal power positive (to do) and negative (not do
that allows the creditor to ask the debtor to something).
fulfill a certain performance. In other words,
the unsecured creditor has the right to a 5. References
general or shared guarantee (general pledge)
on the debtor's patrimony, i.e. the right to [1] O. Ungureanu, C. Munteanu, Tratat de Drept
pursue and sell assets through forced civil. Bunurile. Drepturile reale principale,
execution, at a public auction, and to meet Editura Hamangiu, Bucureti, 2008, pp. 36-
his/her claim from the price obtained. From 42;
[2] Noul Cod civil din Romnia, a fost adoptat
this perspective, the right of claim appears as
prin Legea nr. 287/2009, publicat n
a right to a share or fraction of the patrimony. Monitorul Oficial al Romniei, Partea I, nr.
If the price resulting from the enforcement 511 din 24 iulie 2009, modificat i
procedure of the debtor's patrimony does not republicat i a fost pus n aplicare prin Legea
compensate all the unsecured creditors, they nr. 71/2011, publicat n Monitorul Oficial al
will be paid proportionally to the nominal Romniei, Partea I, nr. 409 din 10 iunie 2011,
amount of the claim held. modificat i republicat;
According to the New Civil Code, the [3] O. Ungureanu, C. Munteanu, op.cit. p. 36;
right of claim may be transferred to another [4] L. Pop, I.F. Popa, S. I. Vidu, Tratat elementar
person, in compliance with the requirements de drept civil. Obligaiile, Editura Universul
Juridic, Bucureti, 2012.
imposed by law.
4. Conclusions
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Stoica Adrian
Ovidius University of Constanta, Romania
stoica-constantin@xnet.ro
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On the other hand, regarding intangible does not consider immovable [article 539,
assets, the distinction is artificial; they are paragraph (1), the New Civil Code]. In a
immovable or movable, according the object concise definition, we can illustrate the
to which they apply (generally, we can notion of movable assets as those assets
exemplify the rights on the assets and the characterized by their own mobility or by a
rights of claim, and, in particular, the borrowed mobility. This category of assets
usufruct of immovable or movable articles, could include a different area, namely land
easements, actions that tend to claim an vehicles, animals, vessels, aircraft, clothing,
immovable or movable asset, etc.). The food, diamonds, gold bars, etc.
category of intangible assets also includes the The category of tangible assets includes
movable assets, under the law (parts of the immovable assets by the destination (the
interest, rents, etc.). materials used instead of the old ones, in a
A) Tangible assets (res corporales). building). These movable assets used instead
Tangible assets as those assets which have a of the old ones will become immovable at the
material existence, perceived by human time when they acquire this destination (e.g.
senses, i.e. which can be seen, touched and tiles, sinks, pipes, etc.).
possessed. From a legal perspective, the
notion of tangible assets can be perceived B) Intangible assets (res incorporales).
regardless of their state, i.e. solid, gaseous or Intangible assets are those assets that do not
liquid. have a material existence (body, substance),
Consequently, tangible assets may be lacking the tangible matter. These assets are
movable or immovable. The nature of the not imaginary, as they will always represent
immovable asset cannot be disputed e.g. the an economic value in a persons assets. In
land. An immovable asset may be a portion essence, only the rights can be intangible
of land or a permanent article embedded in assets because they are intangible. However,
the ground, such as a building or most rights are related to tangible assets; in
construction, a platform and other equipment this case, we might say that they are tangible
for the exploitation of the submarine assets. The provisions of article 542 of the
resources located on the continental shelf, New Civil Code state, quite abstractly, in
springs and streams - they are immovable by paragraph (1) that "(...) the real rights on
their nature. The plantations attached by immovable assets are also subject to the
roots (ready to be cut down), rooted trees rules relating to these immovable assets"
(about to be cut down), preserve, in principle, and, further, paragraph (2) states that "the
their immovable nature but only as long as other patrimonial rights are subject, within
the separation has not occurred (article 537, the limits prescribed by law, to the rules
the New Civil Code). In addition, immovable related to movable assets". The doctrine also
assets are those materials provisionally illustrates that there are rights that do not
separated from a building, to be employed concern tangible articles. These are called
again, as long as they are kept in the same absolutely intangible assets.[2]
form, and the integral parts of an immovable In these circumstances, we believe it
asset that are temporarily detached from it, if useful to distinguish between the rights on
intended for be reintegrated. Nevertheless, tangible assets (a) and absolutely intangible
even at this moment, in some respects, the assets (b).
code treats them as mobile by anticipation a) The rights on tangible assets.
(article 540, the New Civil Code), given their Depending on the object to which they apply,
future separation. Indeed, the sale of crops they may be movable or immovable. It is true
separated from their roots, the trees that are that the provisions of the New Civil Code do
cut down, the materials derived from not directly use this expression but article
demolition - all designed as a sale of future 542 is called "Rules applicable to the rights
goods - will obey the rules for the sale of on assets" These rules are important to real
movable assets, which are simpler and easier rights, rights of claim and legal actions.
to apply than the rules on the sale of The real right. It can be viewed
immovable assets. separately from the asset to which it applies
In contrast, the movable asset, by its in order to be considered itself an asset, only
nature, is defined as any asset that the law regarding the dismemberments of the
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property right (e.g., the right to collect, which a person requires the court, against
during ones lifespan, the revenue resulted others, the observance of his/her right to an
from a usufruct is considered an asset). As asset, is itself an asset (e.g. the action for
far as it concerns the property right, this legal recovery)[3]. To some extent, this action
exercise is not valid because the property could replace the asset from the owners
right is a main real right and it absorbs all the patrimony, if the court recognizes
utilities of the article and merges with it. The definitively the right to property over that
property right is the only real right that asset. It will be immovable if the claimed
identifies itself with its object. Therefore, a asset is immovable; it will be movable if the
person who has a right to habitation on a claimed asset is movable. The same
building will not say my building but the discussion is available if the actions object is
building on which I have a right to represented by the return of a sum of
habitation. Consequently, in this way, we money[4]. This will always have a movable
can distinguish between the intangible right nature.
and the building, the latter being the material However, in all cases and regardless of
subject of the former. the subject to which it relates (movable or
If the real right is applied only to an immovable), a legal action must be
immovable asset, it will be an immovable definitively admitted by the courts because,
asset (by the object to which it applies), and with it, the persons right will be recognized
if the real right is applied on a movable asset, and valued. This recognition is a recovery of
similarly, it will be a movable asset. the right, but it cannot occur if the legal
The right to claim. If the creditor action is dismissed by the court.
requires his/her debtor a certain asset, this b) Absolutely intangible assets (purely
right represents an asset. If its object is intangible assets). A part of the internal
immovable, the right of claim will have an doctrine highlights the existence of these
immovable nature (these are rare cases assets[5]. The absolutely intangible assets
because the buyer becomes the owner are those assets which are totally detached
immediately). Per a contrario, the claims from any material support, with no material
will have a movable nature if their object is existence of the object to which they refer. In
movable. In this category, we include the these circumstances, we cannot discuss about
claims that tend to achieve the transfer of the a movable or immovable object. However, as
property of a movable asset in nature. we will see, they will always be mobile
The scope of application of the rights of because they represent the expression of
claim is almost infinite because articles are values or claims (bonds, shares, parties of
convertible into cash. From a didactical interest, rents, etc.).
perspective, we could give some examples, These assets are movable assets as
namely: the claims of service (they may be determined by law. For example, regarding
obligations to do or not do something, with a the company contract, article 1.894 of the
movable nature because, in case of non- New Civil Code governs the formation of the
execution, they may turn into money registered capital. Thus, the subscribed
obligations); the inhabitants right to lease registered capital is divided into equal parts,
(despite appearances, it has a movable nature called parts of interest, which are
because it establishes a number of obligations proportionally distributed to the associates,
on those who rent); the rest of the price for according to their contributions, unless
the sale of an immovable asset (although the otherwise provided by law or by contract.
object of sale was an immovable asset, the These are the rights of private nature, i.e. the
remaining value is a movable claim); etc. associates claims against the legal person.
The legal action. In the context of our For example, the right to a fraction of the
topic, the legal action may be regarded as regular benefits or upon dissolution, the right
legal or procedural means that a person has to a fraction of the shareable asset; although
on hand in order to defend his/her rights in there are immovable assets within the asset,
court. the parties of interest will not be considered
Actions are classified according to the immovable but movable for the purpose of
rights that aim to defend but also to capitalize their transmission, under the limits and
them. In this regard, the legal action through
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conditions provided by law (article 1901, the those assets which the law does not
New Civil Code). consider immovable;
Another example of absolutely intangible the electromagnetic waves or those
movable assets may be represented by the assimilated to them, produced under the law;
right to a certain amount of money, payable any energy produced, under the law, by
monthly or yearly, either until the death of any person and put into his/her service,
the creditor (annuity) or indefinitely regardless of the movable or immovable
(perpetual annuity). For example, in the case nature of its source.
of an annuity, an aged owner, instead of Equally, according to article 540 of the
selling his/her asset for a price paid of a New Civil Code, movables assets by
sudden, he alienates it for an annuity, paid anticipation are:
monthly, yearly or indeterminately. the riches (of every kind) of soil and
subsoil;
3. The main division of assets: movable the fruit that are still unpicked;
and immovable assets In addition, movable assets by
anticipation become those plantations and
This is the fundamental division known buildings incorporated in the soil, when, by
both by the old civil regulations and by the the will of the parties, are viewed in their
New Civil Code. individual nature, for the purpose of their
According to article 536 of the New Civil detachment.
Code, assets are movable or immovable; this
can lead us to the conclusion that between 4. The secondary division of assets, under
them there is no intermediate category. In the New Civil Code
these circumstances, we can distinguish
primarily between immovable assets and If, mainly, the assets are movable or
movable assets. immovable, the following provisions of the
According to article 537 of the New Civil New Civil Code regulate some special assets
Code, immovable assets are: (this could be considered as a secondary
land; distinction or classification). In these
springs and streams; circumstances, we can distinguish between
plantations with roots attached; fungible and non-fungible assets (article 543,
constructions and any works fixed on the New Civil Code); consumable and non-
land, with a permanent nature; consumable assets (article 544, the New
platforms and other facilities used in Civil Code); divisible and indivisible assets
order to exploit the submarine resources (article 545, the New Civil Code); primary
located on the continental shelf and and secondary (accessory) assets (article
everything that, naturally or artificially, is 546, the New Civil Code).
embedded with this permanent nature. A) Fungible and non-fungible assets.
Regarding these assets, article 538 of the Definition.
New Civil Code determines certain situations Fungible assets are those articles that can
where certain assets remain or become be replaced by others in the performance of
immovable. Thus, immovable assets remain: an obligation. This type of assets can replace
the materials provisionally separated others in the performance of an obligation
from an immovable asset, which are going to (food, money, cigarettes, etc.).
be employed again, as long as they are kept Non-fungible assets are things that cannot
under the same shape; be replaced with each other in order to free
the integral parts of an immovable asset, the debtor. In other words, non-fungible
which are temporarily detached from this assets are those assets viewed individually
asset, if intended to be reintegrated. and which cannot be replaced with each other
Immovable assets become those materials (a collection painting, a racehorse, an old
intended to be used instead of the old ones, gold coin etc.). However, paragraph (3) of
once having acquired this destination. article 543 of the New Civil Code states that
Under article 539 of the New Civil Code, "Through a legal act, a fungible asset, by its
movable assets are: nature, can be considered as non-fungible".
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This distinction also raises a practical destination of the primary asset and of the
special interest. First, we can take as an secondary asset. However, the termination of
example the case where a person has the right the status of secondary asset cannot be
to use temporarily an article, with the invoked against a third party who had
obligation to return it (loan, usufruct, etc.). previously acquired rights related to the
The assets that are non-consumable at their primary asset. If a secondary asset is
first use must be returned at the end of their temporarily separated from the primary asset,
loan or usufruct. This is not the same with the former is not removed this status.
consumable assets. In this case, the refund There are situations when two assets,
may be made by equivalent; therefore, it will which are distinct in material terms, may
be enough to return the assets similar in complement each other, to some extent. In
quality, quantity and value. In fact, as far as it this case, the one who complements the other
concerns consumable assets, the loan and the is seen as an accessory, as a secondary
usufruct actually recognize a property right asset, and the other is considered as a
because hereby it is impossible to use such primary asset. Such examples are the frame
assets without property prerogatives (e.g., the for a painting, the keys for a lock, the bridle
right to destroy). for a horse, the spare wheel for a car, etc. The
C) Divisible and indivisible assets. secondary asset is not always indispensable
Definition. to the primary asset but it brings it an
Divisible assets are those assets that can additional utility. There may be situations
be divided without changing their where it is difficult to determine which is the
destination. primary asset and which is the secondary
Indivisible assets are assets that cannot be asset. In this case, we need to consider a
divided without changing their destination. functional criterion: the secondary asset is in
However, paragraph (3) of article 545 of service of the primary asset and not vice
the New Civil Code establishes that, by a versa.
legal act, an asset, which is divisible by its The ratio between the primary asset and
nature, can be considered indivisible. the secondary asset results, in many texts of
The criterion of this classification is the the New Civil Code, from the expression
extent to which the assets can be divided into accesorium sequitur principale (the
fragments without thereby changing their secondary asset follows the primary assets
economic destination. For example, a parcel fate). This expression has two consequences:
of land is, basically, a divisible asset; the if two complementary assets, belonging
same is a ton of wheat or a piece of cloth. to two different owners, reunite materially,
Money is treated as divisible assets. and the primary owner also acquires the
Nevertheless, for example, there are assets property of the secondary asset; this mode of
that cannot be divided without changing their acquiring property is called accession;
previous economic destination (a coat, a through it, the secondary asset is transmitted
machine, livestock, etc.). the legal condition of the primary asset;
The importance of this classification is if in a contract or in a will it is presumed
manifested especially in the matter of that the primary asset was disposed of, then,
partition. except for a clause to the contrary, it is
D) Primary assets and secondary presumed that the secondary asset was also
(accessory) assets. Definition. disposed of.
Primary assets are those assets that have
an independent existence and can be used 5. Conclusions
independently.
Secondary assets are those assets whose This study reveals that the New Civil
existence is linked to a primary asset and Code does not modify the regulation of
which are used in the employment of the assets, compared to the old civil regulations.
primary asset. Moreover, it should be noted that, firstly, the
The provisions of article 546 of the New new civil rules come with a concise
Civil Code evoke this kind of assets but also definition of the notion of assets (article 535)
some legal situations. Thus, only the owner and, secondly, they make a clear distinction
of both assets can determine the common
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6. References:
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Stoica Carmen
Free International University from Moldova
carmen.stoica35@yahoo.com
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SPHERE DISTRIBUTION
SPHERE REDISTRIBUTION
Primary
Taxes distribution Primary distribution
Taxes
of income BUDGET of income
The philosophical sense of the term tax, the efforts of producing important social
according to the author, lies in the fact that needs explains the initial cause of the
the tax intermediates the collectivization existence of tax as necessary and useful
process of part of the individual income social phenomenon.[2]
(wealth) needed for the development of From the understanding of the
society. The tax itself embodies the need to philosophical sense of the tax as a process of
join efforts (property, estate) of the vital insurance of the society derived the
individuals for the carrying out of work and economic essence of taxation.
expenses necessary for the society. The economic essence of the tax is
The tax is levied to cover social needs, determined by the entire system of trade
which are situated on a separate position relations (production, distribution, exchange
from the individual needs of the specific and consumption). Therefore, the tax must
taxpayer. exist in order to stimulate, forecasting the
At all stages of existence, human society direction of production relations and not
was forced to join forces to oppose the forces hinder their development.
of nature, external factors, for common The evolution of fiscal relations has its
urbanization, for the maintenance of those beginnings in ancient times, they were
who are unfit for work and for ensuring many formed and determined by the types of
other necessary public needs. connections such as goodwill, their payment
Hence the social meaning of the tax, would often bear a sacral character of
which consists in deriving individual, family religious obligation (offerings, gifts); master-
and group needs at a higher level - subject relationships (family or with power
socialization of needs. The need to strengthen right - tribute, contribution, etc.).
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regulation by law. It attributes the state J.S. Mill examines the economic role of
important functions of ensuring the complete the state and he assigns it the functions which
use of the workforce, as well as increasing its are indispensable to the economic and social
quality, suggesting providing the vagabonds progress. The state must undertake the
and homeless persons with jobs from the expenses for creating infrastructure,
public resource account, implicating them in development of science, etc.
the constructions of roads, building bridges J.S. Mill gives great prominence to the
and dams, and ore exploitation. system of state social insurance and taxation.
According to his opinions on the role of J.C. Sismondi considers that the state must
the state in the economy, V Petii in Treatise fulfil four functions:
on taxes regulates the expenses of the state ensuring and maintenance of public order,
with a special destination, as follows: justice, ensuring the rights regarding the
military expenses person and the personal goods;
maintenance of leaders public works, with the purpose of using
expenses for the church good roads, large boulevards, healthy
expenses for schools and universities; water;
education state education, due to which the children
maintenance of the (orphaned) children will receive education, and the adults will
and the disabled develop a religious sense;
expenses for roads, navigable rivers, national protection, which ensures the
aqueducts, bridges, ports and other participation to the benefits provided by
facilities required for the use of the the public order.
community.
A. Smith understood the purposes and 3. Economic theories
tasks of the state the same as the physiocrats:
the state must be involved as little as possible The main economic theories (classical,
in the activities of private persons, because it Keynesian, neoclassical, theory of economy
is not able to change the natural laws on of supply and monetarist) in their judgments
which this activity is based. According to A. about tax and fiscal policy, also arise from
Smith, the state and its followers are the level of development of market relations
unsuitable for achieving economic functions. and from the role played by the state: either
In his opinion, the freedom of economic as a subject of regulation, referee - ensuring
activity is a prerequisite for its success. compliance with "the rules of the game", or
Contrary to the mercantilists A. Smith owner-participant in the process of
believes that the genuine responsibilities of reproduction.[5]
the state must be the protection of peace, The Keynesian theory includes elements
persons and property, making an exception of analysis of the general functioning of the
only for those cases in which the activity of economy and fundaments the main
the state is more rational than the private: macroeconomic directions of the regulation
public expenses for building railroads, by the state. J.M. Keynes (1883 1946)
expenses for schools, religious institutions considered that progressive tax system
and public constructions. [4] stimulates risk taking in capital investments.
From the standpoint of J. B. Say, the best One of the important conditions of his theory
of all financial plans - to spend less, and the is that economic growth depends on financial
best of taxes - the lowest tax. I. Kant accumulation that is sufficient only in terms
formulated the idea of the supreme value and of total employment.[6]
as a deduction about the self-evaluation of According to Keynes, the state uses taxes
human personality. This science of human as a fixed stabilizer of the economy, which
personality autonomy is inconsistent with must be actively manipulated, this direction
state regulation and tutelage, from which was the most important point in the
ensues the requirement of giving the formation of the fiscal economic policy
personality freedom of action, as long as it implemented in the developed countries in
does not harm the interests of other the middle of the 20th century. The
personalities. importance of the fiscal potential within this
direction is justified in terms of redistribution
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of the resources in the economy. For the But during the decline of production,
successful development of the economy, the costs on the consumer market are reduced
fiscal potential of the population must be more slowly than revenue growth, thus
transformed in state investment potential. At causing a greater demand for products,
the same time, there must be accomplished therefore the collections of consumption tax
the state regulation of investments (Alvin are quite high compared to the income tax.
Hansen, Seymour Harris), which will ensure At the same time, the fiscal system cannot
the avoidance of the cyclical character of the fulfil the regulation function. But N. Kaldor
development of the economy. believes that the consumption progressive tax
The English government applied J.M. rate introduced with the application of
Keynes theory in practice, but subsequently privileges and discounts for all types of
rejected it, for the following reasons:[6] goods (for example, daily use products) is
First, when inflation began to be chronic fairer than fixed sales tax on sales for the
in nature due to changes in production people with low income. In addition, when
conditions; compared to the income tax, this tax does not
Secondly, due to the development of apply to accumulation necessary for future
economic integration there has been an investment and stimulates growth.[5]
increase in each country's dependence on In the neoclassical theory preference is
foreign markets. Stimulating the demand given to the credit monetary policy of the
by the state often had a negative impact central bank, but also regardless of fiscal
on foreign investments. policy. The neoclassicists presume that this
Thus, in exchange for the Keynesian will create an effective mechanism of income
conception of effective demand, there was redistribution that ensures full employment
implemented the neoclassical theory of the and stable growth of the national wealth. In
effective supply. the neoclassical theory there can be noted
The neoclassical theory is based on the two directions: the theory of the economy of
advantage of free competition, on the the supply and monetarist.
stability of economic and production The theory of the economy of the supply
processes. The difference between the involves reducing corporate taxes and
Keynesian and the neoclassical theory is the granting tax exemptions, because, according
difference of approach relative to the to advocates of this approach, high taxes
methods of state regulation. hinder the initiative of entrepreneurs and
J. Mid, which elaborated the neoclassical impede the policy of investment, renovation
model, attributed to the state only the indirect and expansion of production.
role in the regulation of economic processes, Another aspect of the theory the
considering it as a destabilizing factor with mandatory reduction of state expenses.
an unlimited growth of expenses. The general legislation of forming the
In the neo-Keynesian theory, fiscal level of tax rates implies: large taxation base
problems have an important role. Therefore, allows for relatively low tax rates and vice
the English economists I. Fisher and N. versa, the narrow taxation base of some types
Kaldor considered sharing objects of taxation of taxes mandatorily implies high rates. It is
in relation to consumer, taxing in this case also obvious that the high and low rates of
the final cost of the product consumed and taxes have different influence on the
accumulated deposits, and being limited only economic processes and on the business
to the deposit interest rate. Hence, the idea of activity of entrepreneurs, causing different
tax on consumption, which became also the reactions relative to the investment processes.
way to stimulate the savings, and means to If the taxes do not meet these
combat inflation. The money previously requirements, the violation of tax limits is
intended for the purchase of consumer goods, obvious. Professor A. Laffer elaborated the
could now be oriented either towards parable of the quantitative dependence
investment or towards accumulation, which between the progressive taxation and the
could turn into capital investments with the budget income, and concluded that the
same budget policy. Autochthonous reduction of taxes acts favourably on the
accumulations are already an economic investment activity of the private sector.
growth factor in the future.
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The marginal rate for budget collection is Implementing the rough policy of the
considered by A. Laffer to be 30%, in the regulation of the money circuit with the
limits of which it is augmented the sum of purpose of the destruction of inflation, the
budget income. But in the case of budget English government was not successful,
collection of 40-50% of the income, when the because it did not take into consideration
taxation rate reaches the forbidden zone, other factors that act on inflation, besides
the accumulations of the population are money mass. All the measures that were
reduced, which entails the lack of cointerest implemented did not have anything to do
in investing in one branch or another of the with the income policies, because the general
fiscal revenue. Some aspects of this theory belief was the liberalization of the market.
were used by the USA government within the
fiscal reformation from the 20 60s of the 4. Conclusion
20th century, subsequently, with the noting of
the new amendments in the 80s.[3] Under the conditions of present realities
The neoliberal conception of state of the market, taxation is the main economic
regulation of the economy is developed on form that connects the entrepreneur to the
the basis of a sequence of theories known in state. The contemporary state is the greatest
the present, among which special attention is owner, it performs the regulation of the
paid to the social market economy theory. public production, redistributes the largest
The fiscal potential was examined as the total rate of the national income of the country. At
of resources for the implementation on a the same time, there must be a change in the
large scale of the social policy. Its value theoretical considerations about the state,
should be increased at the expense of about its main purposes of its functioning, its
reducing tax exemptions and tax rates forms of existence and its methods of
increase, primarily taxes, the source of which management of society. The state, being the
is capital (W. Eucken, A. Muller-Armack, L. greatest owner and engendering market
Erhard). (merchandise) relations, has to invest the
According to monetarist theory, taxes are fiscal policy with a merchandise character, if
one of the tools of actioning upon the volume not equivalent, at least partially refundable.
of monetary mass. The tax potential realized The services of the state are different from
as fiscal income to the budget allows the the traditional services performed on a classic
withdrawal of the exceeding monetary mass exchange base (merchandise money), by
from the economy. The monetarist theory the specificity of the realization, consumption
elaborated by the American economist, and latent character of the results of the
professor at the Chicago University, M. activity in the process of their performance.
Fridman, adept of the idea of freedom of the
market, suggests limiting the role of the state 5. References
only to the activity that only the state can
regulate: the regulation of the circulating [1] Fisher I. The Purchasing Power of Money, s
finances. In addition, the tax reduction rate is Determination and Relation to Credit,
emphasized. At the same time, according to Interest and Crises.
the monetarist theory, one of the basic means http://oll.libertyfund.org/?option=com_static
xt&staticfile=show.php%3Ftitle=1165#toc_l
for regulation of the economy is the change
[2] Hayek F. The Pure Theory of Capital.
of monetary mass and of the bank interest 1983.408 p.
rates. Due to the fact that, each year, the state [3] Hayek F. On Neutral Money and the cycle.
increases its income, which entail In: Money, Capital and Fluctuations, cap. 7,
supplementary inflation, it cannot be p. 159162,
considered a factor in the creation of the [4] Hutt W. The Keynesian Episode: A
wealth of the society, the regulation of the Reassessment. In: Liberty Press,
production volumes etc. But it can support Indianapolis, Ind., 1979, 449 p.
the regulation of the monetary mass, through [5] Sennholz Hans F. Money and Freedom,
the withdrawal of the exceeding finances, if Libertarian Press, Spring Mills, Penn, 1985
[6] Rothbard M. Man, Economy, and State,
not by means of credits, then by means of
http://mises.org/Books/mespm.pdf.
taxation.
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Stoica Carmen
Free International University from Moldova
carmen.stoica35@yahoo.com
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legal acts in the conduct of business by objects, which implies the impossibility of
the tax authorities; influencing the activity of the subjects
the principle of tax administration by tested objects tax administration.
running special subjects authorized for Compliance with that principle is ensured
such purposes (officials of the tax due to the lack of organizational
authorities) subordination direct administration
the principle of achieving fiscal control as objects to subjects.
basic functional element of fiscal The principle of generality, which
administration, as strictly defined by law; requires that the tax administration is
the principle of exercising control over all subject to all taxpayers without exception.
taxpayers; The principle of accountability, which
continuity of fiscal management; provides material liability and
the principle of fiscal secrecy by the tax administrative organs of both tax
service officials; administration and taxpayers as non tax
the principle of liability for offenses legislation, normative-legal acts,
committed both by taxpayers, as well as regulations and rules.
by the tax authorities; The principle of cost-effectiveness and
principle prevails targeted measures to efficiency of tax administration. The most
prevent infringements and sanctions; common method of determining the
the principle of completeness, objectivity outcome of state organizations is to assess
multilateralism and administrative the volume of work completed.
activities; Effectiveness evaluation is performed by
the principle of fiscal management under comparing the result to costs or resources
control while achieving state and public consumed. Regarding taxation in Romania,
(state - control of the tax service on the the result of its activity is reflected in the
subordinate structures public - public income tax mobilized. In addition, the results
organizations control person of the legal of the work are illustrated also by the number
system). of offenses speaks tax, the number of
Given the above, can be formulated statements presented to the tax authorities
general principles of tax administration, and other indicators. The outcome of the tax
which is the first group in the classification authorities is related not only to the total tax
presented by the author. According to the revenue, but also the prevention of tax
author, the most important are: offenses, increase fiscal discipline (also
The principle of mutual connection and expressed by quantitative indicators).
interdependence of the fundamental The principle of centralization, which
elements of tax administration, including requires strict management of tax revenue
tax planning, tax legislation and tax audit. is based on the specific structure of the
If is an incorrect operation of one of these county. Developing regional and local
components is rational activity disturbs finances should not lead to full
the whole system of tax administration. decentralization of the management of
The principle of unity, which assumes tax revenue as this may violate the unity
unique approach to fiscal management of of tax space of the country.
all subjects of tax law enforcement. The principle of division between law
Respecting this principle contribute to the permits tax administration. The stability
completeness and the total tax laws while of the functional structure of the tax
improving collaboration management authorities allow the strengthening of a
level and clarity of the respective organs. circle of rights and obligations in terms of
Breach of subjects lead to the application their scope of competence of each
by the tax administration by the laws administrative links. Because the list of
arbitrarily, which is reflected negatively administrative functions to the status of
on the quality of tax administration and administrative linker is concrete, solving
reduce tax perceptibility. the tax administration by official person
The principle of neutrality and of the subject in questions in its sole
independence in relation to management discretion is not allowed. This principle
addresses the problem of correspondence
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The "fiscal computer" method (based on According to article 97, the tax audit may
applying the model of typical taxpayer apply the following audit procedures:
and model of aggregation) unannounced control, which consists in
Time series forecasting of tax revenues checking facts and documents mainly as a
under their own dynamics - is performed result of a complaint about the existence
with the application : sliding weighted of violations of tax law without
average method (Weighted Moving previously notifying the taxpayer;
Average Method) , double exponential cross-checking, which involves checking
attenuation method ; Holt-Winters documents and taxable operations of the
method; auto regression and sliding taxpayer, in relation to those held by
average models (all these methods have a others; cross-checking can be
single variable); unannounced.
The prediction of multiple variables Evidence plays the main functional
models usage (perform to improve the element of fiscal administration geared to
quality of the examined indicator providing information to all levels of
forecasting). management with reliable information for
Regarding the state tax legislation, in recording and analyzing. In the records of tax
world practice are applied the following revenue is performed the analysis which is
methods : one of the evidence methods
Changing the content and structure of the (documentation, grouping and generalization,
tax system; analysis). There are various methods of
Replacement of a method or form of analysis of tax revenues, which in general are
taxation with others; two large groups.
Change and differentiation of tax rates; 1. Quantitative analysis , which includes:
Changing the tax exemptions and Method of comparing (confrontation)
reductions, reorienting them on directions (assessment of de facto tax revenues and
objects and taxpayers fees compared);
Total or partial exemption from taxes; Structural study (after the budget system
Deferment or cancellation of the debt; levels after types and groups of tax , on
Changing the tax sphere from spreading. branches and types of economic activity,
Fiscal control methods (methods and on subjects);
procedures for verifying the legality of Use of integral indicators (for their
economic transaction, the correctness of their calculation justification of the listed
reflection in documents) apply closely to indicators);
their concrete form (are set out in the Tax Factor analysis(analysis of income change
Code article 97). The classification of the volumes compared with the reference
mentioned methods can be made after certain periods after concrete factors);
signs : the degree of uniformity of the applied Group (various organizations of different
procedures, the necessary amount of work, signs).
the requirement of controllers qualification, 2. Quality analysis , which involves the
after automation possibilities. Based on the application of :
above, there are emphasized the following Expert evaluation method;
methods: Monitoring method;
the random control, that is the activity of Indirect method of potential tax
selective verification of documents and assessments.
significant operations in which are Studying individuals methods, there is a
reflected the calculation, recording and need to appoint their own tax administration
payment of tax obligations owed to the methods (as analogy with the principles -
general consolidated budget; general methods).
electronic control, which is the activity of Administrative forcing taxation methods
accounting and its sources verification, imposed as penalties to the taxpayers:
processed electronically, by using fines, asset seizure, suspension of
methods of analysis evaluation and testing operations on accounts , etc. because the
assisted by specialized tools. taxpayers have to pay tax obligations, and
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4. Conclusion
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tefan Cosmin-Alexandru
Centre for Organizational Strategies and Leadership (CSOL-UB), University of Bucharest
cosmins.faa@gmail.com
Toma George-Sorin
Faculty for Business and Administration, University of Bucharest
tomagsorin62@yahoo.com
Marinescu Paul
Faculty for Business and Administration, University of Bucharest
paulmarinescu1@gmail.com
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level, the level of society, of the way people The millennials form a new workforce
live, communicate and interact, for brings with it a new attitude about work, new
convenience we will this level tomorrows expectations, a different set of values, and
world; the second level is focusing on the different approaches to how work should be
way organizations are changing, we will call done.. Not only proficient with new
this tomorrows workplace; finally the technologies but also (generally) not willing
third level is the employee, and the way he or to accept a certain way of doing things at
she will be working, we will call this level face value, the integration of this generation
tomorrows worker. in business and society in general is certain to
This article is meant as a start for further cause a number of transformations.
research in the way work and worker will
look like in the future based on changes that Mobility
are happening at different levels of society
and how this changes are likely to effect the With the ascent of new technologies and
economies of tomorrow and, therefore it is tools the traditional ideas of offices,
not meant to offer conclusive answers. corporate headquarters and a nine to five
office day might soon become anachronistic.
2. Tomorrows world The possibility of working from anywhere,
anytime coupled with the rise of virtual
In his book The Future of Work Jacob teams will definitely pose a major change.
Morgan [2] identifies five trends of Whether it is for the better or for the worst it
evolution at a general level that will have an remains to be decided.
important impact on the future. Based on this
model we will discuss the implication that Globalization
each of them is likely to have on the
world: The continuous integration of national
economies in one global economy, with
Behaviors supply chains spanning continents and teams
working together from different ends of
The impact that social media and the Earth, the world is becoming smaller
collaborative tools have had on the way everyday and the choices people are able to
people create, access and share information make about where to work, travel and even
can hardly be overstated. Today every where to live are increasing everyday.
organization, every product and every
initiative is open to scrutiny and criticism by 3. Tomorrows workplace
both clients and employees. While this offers
huge rewards for companies that capitalize There seems to be a general consensus
on this shift in behaviors it also means that that the way the classical organization is
poor products, services or workplaces are designed needs a major overhaul if it is to
quickly penalized. survive and thrive in the new environment of
this century. Different schools of thought are
Technologies focusing on different aspects that should, in
their view, be changed and are drawing
The time it takes for new technologies to inspiration from those atypical structures that
mature and start producing changes becomes are appearing.
shorter and shorter. The impact that The fact that power, or control, lies at
innovations like cloud technologies, big data the core of bureaucratic and hierarchical
or the internet of things will have on peoples organizations[4] is criticized by those that
lives is not entirely clear but what is evident are fascinated by the success of businesses
is that it will be significant. It is therefore that are perceived to by more democratic,
highly unlikely that businesses who want to like Google or Gore. The classical idea that
stay relevant will be able to ignore them. rational decision making and logical
thinking are encouraged, and emotions are to
The millennial workforce be avoided [5] is found to by over simplistic
by theorists and practitioners alike when
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Although the view of the way people will The standard communication mediums
work in the future is generally optimistic, one like email, text massaging and phone calls is
of the things that has become evident is that quickly becoming outdated, different
the chances of having a steady job for a long collaborative platforms allow for much more
period of time (the kind of job people complex interactions and ways of
become pensioners from) with stable job transmitting information (ex: podcast,
requirements is a thing of the past, it is movies, recommendations) which will make
certain that the employees of tomorrow will email look as outdated as classic mail seem
have to deal with an increased level of now.
uncertainty and risk. [10].
With the ever increasing importance of Can become a leader
the quality of the workforce organizations are
quickly becoming employee focused [11], With the increase in projects in which
rather than customer focused people participate voluntarily at work, being
Jacob Morgan [2] proposed a model able to come up with a good idea and being
which features seven key points that will able to sale it to your colleagues is often al
define the worker of tomorrow. that is needed to become a project leader, this
is already happening in companies like
Has a flexible work environment Google and Gore, so the classic model in
which the company decides who is the
The idea of having to go to the office for a manager and who are the underlings might
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6. References
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Terchil Sorin
Faculty of Economics, Lucian Blaga University of Sibiu, Romania
sorin.terchila@ulbsibiu.ro
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a)In the next period (2015-2017), budgets in communication through the media, and
invested in communication campaigns economic overtones nationally and
nationwide will record an increase over the internationally.
period 2012-2014. At the same time it is aimed at presenting
b)Public institutions in Romania will develop some comparisons between: classic mass
effective communication strategies through media channels (TV, radio, printed media)
media. versus digital, online and mobile media.
c)The main traditional media channels will At the end of the interview, after the 8
not decrease, but rather develope based on an questions that follow the goals stated before,
ascending direction of online and mobile I have asked two more questions, whose
communication segment. main objective is to acknowledge the age and
The topic of the interview is: Directions in the actual residence of targeted subjects. I
communication through mass media, and have chosen a structured interview in order to
economic overtones nationally and globally. keep the same number of questions and the
The main purpose of the research is to same disposal for all the respondents,
present the respondents reactions on both likewise for the profound approach on the
directions in communication through the topic of the research.
media, and economic overtones nationally I will interpret and analyse the answers for
and internationally. each question in the interview guide.
The interview was addressed to 2.1. In your view, how do you think the
individuals residing in major cities of budgets invested in communication
Romania, but also to several people living in campaigns will change nationwide, during
the United States of America, and in 2015-2017?
countries of the European Union, such as After addressing the first question in the
Germany, France, Italy and Austria, aged interview guide, these percentages arise, in
over 20 years, with university education, terms of amending budgets invested in
working in public or privately-owned communication campaigns:
companies, who have visited a large number - about 80% of the respondents believe
of countries, worldwide. Undoubtedly, this that budgets for the period 2015-2017 will
category consists of people who are very increase on a small scale as compared with
often informed by the media and have a 2012-2014.
permanent contact with media organizations - about 10% of the respondents believe
in each country. Furthemore, these people that budgets for the period 2015-2017 will
have very clear terms of comparison increase to a great extent as compared with
regarding mass media activity at European 2012-2014.
level. The interview was applied to 20 - about 5% of the respondents believe that
people. budgets for the period 2015-2017 will stay
Average duration of the interview was 25 abreast of the period 2012-2014.
minutes, including detailed answers to all - about 5% of the respondents believe that
questions. budgets for the period 2015-2017 will
The interviews took place between 25th decrease on a small scale as compared with
February 2015 - 8th March 2015. 2012-2014.
After summarization, interpretation and 2.2. Which of the following types of media
analysis of the answers, I'll answer the two channels do you think will score the
research questions stated: biggest changes worldwide, during 2015-
-Whereto are global media organizations 2020?
heading, and what are the expectations from After addressing the second question in
the audience? the interview guide, these percentages arise,
-To what extent will communication in terms of evolution of media organizations
strategies optimize in the public sector, in worldwide, by category:
Romania? - about 75% of the respondents believe
The structure of the interview is as that online segment will score the biggest
follows: 8 open-ended and closed-ended changes over the next five years, globally.
questions whose main objective is to measure
the respondents reactions on both directions
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- about 10% of the respondents believe -The online has the highest rate of
that radio will score the biggest changes over growth worldwide, and I believe that this will
the next five years, globally. continue.
- about 10% of the respondents believe 2.4. On what type of programs broadcast
printed media will score the biggest changes through the media do you think will be
over the next five years, globally. laid more emphasis during 2015-2017,
- about 5% of the respondents consider globally?
that television will score the biggest changes After addressing the fourth question in the
over the next five years, globally. interview guide, these percentages arise, in
2.3. Please explain your opinion about the terms of trends of media programs
media channels category that will score the worldwide, over the next three years:
largest changes worldwide, over the next - 60% of the respondents consider that
five years. during 2015-2017, the emphasise will lay
I will present the main opinions and more on economic, social and political news,
arguments of the respondents on the worldwide.
evolution of media organizations worldwide, - About 25% of the respondents consider
by category: that during 2015-2017, the emphasise will
- "I think the online tends to grow more lay more on gossip and TV shows,
and more, trying to cover a larger number of worldwide.
branches. - About 15% of the respondents consider
-There is a trend in using massivelly the that during 2015-2017, the emphasise will
online channel, and it will probably increase lay more on entertainment shows, worldwide.
in the next years, I hope that radio and print 2.5. To what extent do you do you think
media wont fall. that most public institutions in Romania
- The ONLINE segment is the one that will develop effective communication
will score the biggest changes, since strategies through the media?
investments in this field are enormous at After addressing of the fifth questions in
present, worldwide. Also, the interest of the the interview guide these percentages arise,
population increases continuously and thus in terms of confidence in the development of
will increase the online audience. effective communication strategies in the
- The technology is developing quickly public sector in Romania:
and online media keeps up, and the society - about 75% of the respondents have little
adapts very fast. confidence regarding the development of
- The online will be the first source of effective communication strategies in the
information, which would lead to a public sector in Romania.
customization of the online in order to meet - about 25% of the respondents have great
every individuals needs. confidence regarding the development of
- I believe that television, radio and effective communication strategies in the
online platforms will record positive changes, public sector in Romania.
and printed media will record negative 2.6. To what extent do you think that the
changes globally. mobile communications segment will
- Printed media will disappear to a great develop, worldwide?
extent, probably it will move online. Question number 6 brings in the the
- Market penetration with devices that evolution of a mass media category,
allow internet access - smartphons, tablets especially in terms of its impact on the
etc.-is becoming larger and larger, leading to economy and society, worldwide. The results
a taking over of the information by the online are as follows:
channel. - about 90% of the respondents believe
- I think in future the emphasise will be that mobile communications segment will
laid on online media, counting that lately grow hugely in the coming period, and the
information travels much faster online, costs impact will be proportional as concerns the
are lower and perceptiveness, especially of economy and society.
young people, is very high. (A clinching - about 10% of the respondents believe
example could be the campaign of President that mobile communications segment will not
Klaus Johannis in 2014).
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score high growth in the coming period, I will present the opinions and arguments
worldwide. of the respondents as regards both the public
2.7. Do you think that in the near future expectations and demands, seen as general
the main traditional media channels will audience. The main responses of the
go out of use? (television, radio, respondents were:
newspapers) Please explain your answer. - "To communicate only relevant and
I will present the opinions and arguments useful information for the population, and to
of the respondents on the eventuality for consider a permanent internal development.
traditional media channels to be closed or - Better information in a short time, if
directed towards the online or mobile possible even in real time.
environment.The main responses of the - I wish they would no longer lay as
respondents were: much emphasis on gossip shows, but
-Printed media will die out, if we emphasise those that deliver educational
consider the current trend. I dont think that information, good and objective news and
television and radio will go out of use, but high-class entertainment.
they will probably be associated with the - To provide information that is accurate,
online and accessed from mobile devices. complete and timely.
-Printed media reduces the activity in - To participate actively in refuting
favour of the online and mobile segment. corruption infractions, tax evasion and
- They will not go out of use but they money laundering.
will lose ground, and the audience will be - To improve the way communicating
shared with online platforms. information and their quality as well.
- I do not think they will go out of use, - During 2015-2020 I want a smaller
but I believe that online media will become involvement, or none at all, of politics in
leader of information. mass media, and these, whether radio,
- I do not think they will go out of use, television, print media or online, to be able to
they are the basis for development of other work real, and to deliver professional and
media channels. impartial information to citizens.
- No. There are still traditional media - To be objective and impartial in
channels and an audience that has a fancy for political terms.
them. - Not to bring to the fore only negative
- In the near future traditional channels aspects of the economy and society.
will not die out because the man got used to - Economic news of social interest,
them, they are at hand especially for people national security, and things like that.
who do not have internet access, smartphone, - More quality information, editorial
PC or they simply dont know how tu use independence, less gossip and handling.
these means. - To promote less gossip shows and
- No. There will always be a target news.
audience for any media channel. -To provide accurate information,
- No, the romanian society is not ready uninfluenced politically or built to achieve
yet. certain political goals."
- No, at present they are the main 2.9. How old are you?
channels of communication, the Internet is Questions were addressed to people aged
expanding but there are still quite a few over 20 years, as follows:
people who do not use the internet. - 60% of the respondents aged 20 to 30
- No, because they are the main sources years.
of information and can not be replaced. - 40% of the respondents aged between 31
- In the near future I do not think they to 40 years.
will die out, but the audience will decrease a 2.10. Where do you live at present?
lot favourable to the online. The questions were addressed to people
- No, but they will decrease as a living in the United States of America and in
percentage ." Europe - mainly Romania ( Bucharest, Sibiu,
2.8. What are your expectations from Brasov, Cluj-Napoca), Germany, Franta,
media organizations in Romania during Italia and Austria.
2015-2020? Please explain your answer.
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3. Results and conclusions use, but I believe that online media will
become leader of information; I do not think
Most interviewees consider that the they will go out of use, they are the basis for
budgets for the period 2015-2017 will development of other media channels.
increase remotely as compared to 2012-2014. The main expectations and demands of
Most interviewees believe that the online the public, seen as general audience, relating
segment will score the biggest changes to mass media organizations were : To
worldwide over the next five years, stating participate actively in refuting corruption
the next main arguments: The online segment infractions, tax evasion and money
is the one that will score the biggest changes, laundering; During 2015-2020 I want a
since investments in this field are enormous smaller involvement, even none at all, of
at present, worldwide; Also, the interest of politics in mass media, and these, whether
the population increases continuously and radio, television, print media or online, to be
thus will increase the online audience; The able to work real, and to deliver professional
technology is developing quickly and online and impartial information to citizens;
media keeps up, and the society adapts very Economic news of social interest, national
fast; The online will be the first source of security, and things like that; To be objective
information, which would lead to a and impartial, in political terms; Not to bring
customization of the online in order to meet to the fore only negative aspects of the
every individuals needs. economy and society.
Most interviewees consider that during
2015-2017, the emphasise will lay more on Acknowledgment
economic, social and political news,
worldwide. This work was supported by the strategic
Most interviewees have little confidence grant POSDRU/159/1.5/S/133255, Project ID
regarding the development of effective 133255 (2014), co-financed by the European
communication strategies in the public sector Social Fund within the Sectorial Operational
in Romania. Program Human Resources Development
Most interviewees consider that mobile 2007 2013.
communications segment will grow hugely in
the coming period, and the impact will be 4. References
proportional as concerns the economy and
society. The main opinions and arguments of [1] Mucic,D. Creativitate i industrii culturale n
the respondents on the eventuality for Secolul 21. Cultura i mass-media, editat de
traditional media channels to be closed or Uniunea Scriitorilor din Romnia i Fundaia
directed towards the online or mobile Cultural Secolul XXI, Bucuresti, 2006
[2] Mucic,D., Despre televiziune, diversitate
environment were: Printed media will die
cultural i comerul cu servicii audiovizuale
out, if we consider the current trend. I dont n Televiziunea Art sau Politic? Volum
think that television and radio will go out of ngrijit de Dana Duma i Geo Saizescu,
use, but they will probably be associated with Editura Victor, Bucuresti, 2005
the online and accessed from mobile devices; [3] Halimi,S., Noii cini de paz, traducere din
Printed media reduces the activity in favour limba francez de Felicia Dumas, Editura
of the online and mobile segment; They will Meridiane, Bucureti, 1999
not go out of use but they will lose ground,
and the audience will be shared with online
platforms; I do not think they will go out of
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In the methodical category, priority has between the results obtained using AHP
the competence knowledge of applied PM method, especially for the results of
methods (0.34%), followed by the technical teamwork competency: ANP 0.23%, AHP
analysis of information. As we can observe, 0.15%, creativity: ANP 0.21%, AHP-
there are some differences between the 0.17% and motivation: ANP - 0.14%, AHP -
results obtained using AHP method. The 0.2%.
significant difference is in case of two In the strategic-organizational category,
competency item: the priority has the respect of work methods
Technical analysis of the information: and procedures (0.57%). There are
ANP method 0.29%, AHP method 18% significantly differences between the results
and for obtained using AHP method, especially for
Automating and optimizing work the results of permanent organization
processes: ANP method 0.16%, AHP competency: ANP 28%, AHP 21% and
method 0.27%. In the personal-social for respect of work, method and procedures
category, the priority is given by the competency: ANP 0.57%, AHP 0.49%.
teamwork competency (0.23%), followed by The results obtained using both methods:
the creativity competency (0.21%). There are ANP and AHP are described in Table 3.
significantly differences
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Ungureanu Emilia
University of Pitesti
emiliaungureanu@yahoo.com
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less scholars in all the study levels. after they finish the studies. This situation
highlights that after 1990 there were none or
Figure 2. % School population in Total very limited studies about the demands on
Population in Romania in the period 2001- the labor market- creating a big disconnect
2013 between the skills gained in university and
what is required at work.
Moreover, companies are looking for
already trained persons to cut the
education/R&D costs (vicious circle),
therefore lots of young people remain
unemployed or are working in different other
fields.
Source: www.insse.ro Another cause is given by the increased
share of scholars that are not graduating high
Next, we will analyze the scholar school and therefore they cant go to
population in Romania on education level, university. Another obstacle is the scholar tax
and in figure 3 we can observe that the which is high compared with the average
biggest category is the primary school and income in Romania (sometimes being even
shows a negative trend from 2001 to 2011 prohibitive for some potential students).
and stabilizing until 2013. On the other side, According to National Association of
the secondary school has an oscillating trend. Students in Romania, almost 40% of students
If until 2007 the trend is positive, in the that were supposed to finish the university in
period 2007-2011 is declining and in 2011- 2013 at 20 public universities abandoned
2013 is more stable. their studies.
The number of population registered in In this context, Romania is between the
the vocational school slight increases until last countries in Europe: has with 15% less
2005 and then sharply declines until 2011. university graduates compared with EU
Moreover, post-secondary school population average and 200.000 childrens without
decreases until 2006, and sharply increasing access to any form of education. This fact is
until 2013. maintained because of the very low shares of
The last category, higher education, has a budget redirected to education and produces
positive trend until 2007. From 2007 to 2013 big imbalances in both social sphere, but also
the number of students decreased year after in the economic one and slows down the
year. catch-up process to developed countries [2].
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Source: www.insse.ro
Source: www.insse.ro
For improving the situation we need to
During the 13 analyzed years, the absolute reduce to minimum the abandon rate and to
decrease was approx. 53.000 school staff increase the quality and relevance of public
members. On educational level, the biggest educational system.
decreases were in the primary school. Also, Considering the private system, the school
the vocational school staff decreased population had an oscillating trend, the peak
significantly, as a consequence to the being in the year 2008, after having a
decision that the high-schools took over the considerable decrease to 152.000 scholars.
places for Arts and Vocational Schools. The Split by category, the highest number of
decrease of schools staff has been sharper in scholars is encountered in universities, even
the rural area, by comparison with the urban if currently the number is declining. The
one. primary school level is in a continuous
Excepting the staff from secondary ascension, while the secondary school level
schools, in all others the number has has been developing until 2010, the number
decreased in the analyzed period in the rural being reduced to half in the period 2010-
area. Even so, for this indicator, Romania is 2012. [4]
very close to the Europe average. The private vocational schools are less
The number of scholars per one teacher and less used. One of the causes for the
was relatively constant for the secondary reduction is that the fees and tuitions are not
education. In the rural area, on the primary subsidized by government, and on the other
school level we continue to have the lowest side, not all the institutions are accredited.
ratio scholars/teachers: 10 scholars to 1 Even if the number of registered scholars
teacher, favorable situation for the time declined at some levels of education, this
allocated to each scholar, but unfavorable type of institutions had initial advantages, as
considering the expenses. better professional perspectives- bigger
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Voicu-Dorobantu Roxana
Bucharest University of Economic Studies
rovodo@gmail.com
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space where economic and social interactions practices, producers, researchers and
take place and are embedded into policy makers (the environment
geographical space. according to Marshall)
So knowledge capital is not something
abstract that can flow easily across the 3. Innovation in a regional business
whole globe over the internet from a person ecosystem
to another, or from a firm to another, or from
a region to another, etc., but it develops and In order to conceive and develop a better
accumulates through slow individual and regional policy it will be useful to harmonize
collective learning processes, and grows the territorial capital theory with the smart
through information, interaction and local specialization approach.
knowledge. Further, the knowledge The strategy of intelligent specialization,
generation is first of all a local process, as it was recently synthetically presented in
rooted in the historical development of the [27], [28] is part of the New Industrial
area, accumulated over time through Policy, which aims tro project and make
experience, local culture in local labour compatible two critical, and somewhow
market and local context, and therefore conflicting, prerequisites: identifying
difficult to transfer to somewhere else. As priorities in a vertical logic and keeping
information, data and knowledge of a person market forces at work in order to emphasize
are embodied and interwoven into a brain the domains and areas where priorities should
and/or body, also the data, information and be selected from.
knowledge of a human space (locality) are As a new and innovative concept of
embodied and interwoven into a territory innovation policy, intelligent specialization
and/or a geography. emphasizes a prioritization principle in a
The concept of territorial capital was veritical logic (which should favour certain
proposed first of all by OECD in its technologies, domains, companies) and
Territorial Outlook (OECD, 2001), and develops an identification method of areas
subsequently used by DG Regio of the intended for the innovation policy
Commission of the European Union: Each intervention.
Region has a specific territorial capital that Usually an innovation regional strategy is
is distinct from that of other areas and still projected in terms of horizontal and
generates a higher return for specific kinds of politically neutral measures (according to
investments than for others, since these are neocclassical economic theories). Normally it
better suited to the area and use its assets and aims to improve the general framework of
potential more effectively. Territorial conditions and facilities (good universities,
development policies (policies with a human capital, intellectual rights property,
territorial approach to development) should research and ITC infrastructure, competition,
first and foremost help areas to develop their openess and so on). In contrast with the the
territorial capital current, still dominant economic neoclassical
The elements of territorial capital as approach, intelligent specialization refers to
proposed by OECD (2001) Territorial vertical and non-neutral intervention logic,
Outlook are: i.e. an identification and selection process of
the areas geographical location, size, intervention desirable areas, which involve
factor of production endowment, choices of technologies, domains,
climate subsystems, even companies which could be
the areas traditions, natural favoured within the regional policy.
resources According to [27], [28]],
quality of life or the agglomeration specifications (objectives, processes,
economies, business incubators and approaches, etc.) of the intelligent innovation
industrial districts or other business policy are:
networks Non-neutral policy
untraded interdependencies such as - Keeping market forces in function
understandings, customs and (entrepreneurial discovery)
informal rules, social capital - Interactive porcesses between the
combination of institutions, rules, political and private sector
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Voicu-Dorobantu Roxana
Ploae Catalin
Bucharest University of Economic Studies, Ovidius University of Constanta
rovodo@gmail.com, catalinploae@gmail.com
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Voicule Alina
"Constantin Brncoveanu" University of Piteti
alinav06@yahoo.com
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Developed countries already have aged better birth control policies. The highest
populations as a result of low fertility with exposure will be in the countries of Africa
longer life expectancy. The trend in these and Asia secondly, among which only China
countries is to increase life expectancy and has taken steps to limit the birth rate. And it
the aging of the world population. In the year has worked: by 2100, the UN estimate a
2010, 7.6% of the world population was over decline in Chinas population by about 30%,
65 years of age, and in 2100, the percentage down to below one billion inhabitants,
of third age people will reach 22%. compared to 1.3 billion today.
The number of people aged 65 and over The United States has a growing
will double as a proportion of the global population due to massive immigration and
population to 16% in 2050. By then, there the fertility of Hispanic immigrants. The UN
will be more older people than children (aged report has suggested that by 2100, the United
014 years) in the population for the first States will reach a population of 478 million,
time in human history[7]. 167 million more than today.
Furthermore, the lack of womens power
Figure 2. as compared to men is a factor influencing
population growth in Africa. Only a quarter
of the female population of East Africa, 10%
in the Western one and about 7% of the
population in Central Africa have access to
contraception, compared to 75% of the US
female population.
3. Conclusions
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4. References
421
Section II
Business Economy and Administration
***
Subsection 2
Marketing Management
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Fig. no. 2 Top of Central and Eastern Europe Analysing the Creative Intangible Assets
countries after GII value in 2012 in 2012 year, we notice Slovenia leads in
Central and Eastern Europe, followed by
Bulgaria and Serbia the third position.
Romania is situated before the last position,
being surpassed by Poland, followed by
Greece.
6d
Sp = 1- --------- = 0,06; d = rx - ry =430
n(n-1)
4. Conclusions:
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5. References:
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Abstract
In our view, these goods, during
The work is a study aimed at defining and production processes, do not maintain any
understanding the concept of corporate physical form, or a numeric value. The
management. In recent years, corporations undertakings patrimony is subject to the
in Central and Eastern Europe had to adapt "attack" of the scientific-technical progress,
to a very harsh competition, while facing of the supply and demand in domestic and
various problems in the ownership and foreign markets. Bohatere V. [18, p.64] lists
management structures of corporations. [1], the farmland evaluation stages. In this case,
[2], [3] The entrepreneur is "the engine" of the author is right. The agricultural lands are
economic growth [14, p.23]. The a heritage of both the businesses and of the
professional level of an imaginary nation as a whole. They cannot be evaluated
entrepreneur was determined by schools, by by methods similar to the assessment of
the prestigious universities: Winchester lathes. Agricultural lands have certain
school; schools in Paris, Chartres, Orleans, qualitative characteristics, called evaluation
Tours, Loan, Reims, Liege; schools in Kln, marks [20, p.68]. The quality classes, grades
Germany, England York and Canterbury, of creditworthiness, agricultural land ratings
Oxford.[27], [24] The entrepreneurial evolve under the impact of technologies. [19,
thinking and spirit have become objects of p. 92], [1], [6]
study in various universities.[24], [15], In
our opinion, the treatments listed have 2. The relationship between the company
"something" in common: they are related to and the business environment.
findings and not to something constructive.
According to [19, p.104], [4] [5], "the Businesses in Romania were engaged in
essential characteristic of tangible assets is economic competition with economies of EU
that they participate in several production member countries. These, in turn, have an
cycles, wear out over time and gradually impact (not always positive) on the operation
transmit their value on other goods without viability of national enterprises. [7]
losing the physical form". The potential success of the enterprise is
determined by the entrepreneur, who is the
Keywords: communication, business, force "motor" of the enterprise he/she must
promotion, company, client. possess certain professional, psychological,
JEL Classification: H83 analytic qualities; he/she should have the
possibility of calculating, forecasting
economic indicators. The works (enterprises)
1. Introduction to be executed by the company, under the
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impact of demand, of the scientific and as the merge of the company with other
technical progress, evolve, change over time. companies; geographic expansion
[8] The employees level of creativity in the opportunities arise; there are new
enterprise is largely determined by the competitors, new rules, demands of
managers skill to form an appropriate team, producers, traders; the staff motivation
responsible for creating a system of system (at the level of their enterprise)
incentives for the qualitative execution of requires company managers to align the
works. The managers selection of a team system of labor motivation to the EU system
depends on the level of training of the (in the case of remuneration below the EU
specialists in the profile, in the institutions of countries, the company may incur a shortage
education, training, internship opportunities of staff; if he/she needs to attract workforce
of potential employees in other industrial, from the EU, the manager supports a staff
technologically performant countries. [22] remuneration higher than the EU). In this
The economic problems of the enterprises case, the explanation is one: companies that
in Romania can and must be solved by complement each other submit joint effort,
equipping practitioners with the theoretical organize joint teams of collective
foundations of management theory. [9], [10], intelligence in order to generate new ideas,
[11] solutions and proposals.
The entrepreneur is obliged by the Romanian businesses are usually
competition on the market to display original preoccupied to solve their economic
optimism in decision-making processes; be problems in order to obtain maximum
innovative in problem situations; possess profits. Social, ecological issues remain in
knowledge of decision-making in uncertain the shadows. In those circumstances,
situations; not be outdated by scientific and scientific investigations are necessary in
technical progress; possess entrepreneurial order to drive the productive potential of the
thinking and spirit; have knowledge acquired enterprises for solving problems related to
in prestigious schools and universities; education, health and rational use of natural
systemically update his/her managerial resources. The operation of the company in
methods; be a good analyst in the theory of the EU can and must rely on the social policy
economic growth. In his/her activities, the promoted by the government. The social
entrepreneur uses formalized exposures. policy of the company, in our view, should
[12], [13] be based on three pillars: the system of
The impairing activities of the enterprises values; governmental power system;
in Romania are generated by the economics productive system and the distribution of
of the past. The study examined the goods. The values, including the cultural and
functioning of the enterprise in the scientific ones, influence the power
conditions of globalization; in this context, production and distribution of goods. The
we should listed and analyze the factors system of values, in a country, is developed
positively and negatively impacting on the or underdeveloped, depending on the level of
company's future operation; highlight the their assessments.
importance of the professional quality of the For Romania, there are required studies,
company manager and of its employees; investigations about the role of the
analyze the flexibility of the geographic innovation in the economic activities of the
location of the company, and the final enterprise. And here, the managers
product structure. [12], [13]. innovations help his/her, in improving the
The managers of the companies in operation of every element in the system,
Romania shall be initiated into economic improving internal and external connections,
behavior in the most difficult situations. The improving the structure of final products.
EU flows of goods, capital, labor are free, [12], It is necessary to highlight the role of
and create both unfavorable and favorable technological innovations. New technologies
conditions for enterprise; the manager, can hinder the domestic and foreign
depending on his/her training skills, can organizational schemes. The implemented
collaborate with new businesses partners; innovation activities change, in some way,
opportunities arise in certain situations, such all the system elements and connections;
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some items may disappear from the system, management models, for the potential
others may occur. Technological innovations development of the company. [15], [16] The
can significantly alter the structure of final methodological basis used during research,
products; you can create services without analyzes, elaborations, conclusions,
precedent, eliminate some products and proposals and achievement of results focuses
services. When missing, innovations on economic and mathematical methods; the
contribute to the prosperity of some criteria of Wald, Hurvicz, Savage; the
companies and to the bankruptcy of others. maximum verossimility, Bayes, Laplace;
[17], economists classical and contemporary
In the economic competition between works: Cantillon R., Felton A., Krugman P.,
Romania and the EU member countries, all Lucas R., McCollum J., Reinhart C., Say
business activities are focused on reducing J.B., Sahimi M., Schumpeter J., Soros G.
all costs. The EU creates conditions for the This scientific research was made on the
free movement of labor, capital and basis of concepts, principles of market
technologies. In those circumstances, the economy under Romania's EU accession, as
Romanian economy has a particular topical reflected in the work of Romanian
management of the company, in the economists, including Brbulescu C., Bnacu
determination of the optimal period of C., Ioni I., Malia M., Svoiu G., Zaharia
renovation of the productive equipment. S.E. and others. A special emphasis was
They can be replaced by other relatively placed on the work of cyber methods
efficient but much obsolete imported (Systemic), on the economic-mathematical
equipment, by mainly new machinery, but model; we also found useful the works of
which require considerable expenditure. [18] several economists work from the Republic
However, the entrepreneur is the "engine" of Moldova, including: Blanovschi A.,
of economic growth. The professional level Burlacu N., Catan P., Cotelnic A., Onofrei
of an imaginary entrepreneur was determined A., Parmacli D., Timofti E., Stratan A.,
by prestigious schools and universities: avga L., urcanu P. and others.
Winchester school; schools in Paris, The complex systems of the economic-
Chartres, Orleans, Tours, Loan, Reims, financial and organizational interrelations
Liege; schools in Kln, Germany, England "communicate" with the business
York and Canterbury, Oxford. [27], [24] The environment and with the performance
entrepreneurial thinking and spirit have shares. [25], [26]
become objects of study in various This maintains the performance levels
universities. [14], [15], [19] In our opinion, required by the specific manifestation of
the treatments listed have "something" in entrepreneurship, which take into account
common: they are related to findings and not the company's communication policy and the
to something constructive. business opportunities in the economic field.
The scientific and technical progress, the The corporate communication or what we
new forms of work organization, the quality call the organizational communication can be
of work, the impact of globalization on the regarded as follows:
productive activities of enterprises require as a process, it is the transfer of ideas and
the need to argue scientifically the uncertain information and it is achieved through a
economic future conduct of the undertaking. succession of phenomena that occur between
[14] This paper comes with new approaches transmitter and receiver;
and methods to address the problem, as a symbolic, graphic whole, it is the
complements the already achieved results, verbal and the broadcast item and it plays a
and is able to serve as reference for the crucial role in getting a new image of the
enterprises in Romania, intellectually company, and a new identity and marketing
engaged in the economic competition with of its products;
the EU countries. as a feed-back, where the receiver
The degree of the research topic is exercise influence on the transmitter, and
determined by focusing on doctrine, vice versa; [20]
concepts, principles, developed to date by The productive potential of the enterprise
scholars specializing in developing strategic can be determined only in a conditioning
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way. The potential of the enterprise depends success of the company's operation depends
on a number of exogenous and endogenous on its ability to incur certain expenditures for
factors, including the professional qualities scientific research organization,
of the entrepreneur. [24] implementation and innovation, financial and
material maintenance of experimental
3. The business activities of enterprises in structures. [26], [27]
Romania: problems, reflections Never had the fate of the economic
recovery and development, both in Romania
Romania's post-accession to the EU is a and in Europe, depend so much, like the
time to be tested by the level of efficiency of present, on the development of the SME
economic activities and labor productivity. sector. In the current context, SMEs are the
By maintaining the traditional forms of labor most dynamic factors in the economic
organization, of investment, of the final development and social inclusion, through
product structure, we risk turning the country their competitiveness and innovation
into a colony, into an exporter of raw potential and the ability to create and
materials and work in the EU. The same, maintain jobs within the society.
based on our own investigations, we can The radiography of SMEs, made on 1
state the same for Moldova: exports and January 2012, analyzed in the context of the
investments influence very little the non-financial economy of Romania, leads to
economic growth. This is due to the reduced a first important note: in demographic terms,
performance of Moldovan exports and the economically active SMEs had a slight
especially of the noncompetitive product recovery from the previous year, as regards
structure. Half of our exports of food the total number of units. [25]
production are ensured, without noticing any A detailed analysis reveals positive
evident trends in other specialization developments in both size class structures
branches. The cause of this trend is and in the distribution per sectors and in
represented by the poor productive potential most sub-sectors of the manufacturing
of agriculture and domestic industry. [13, industry. Taken together, these findings
p.20] indicate the sustainability of Romanian
Romanias accession to the EU is the SMEs and their latent potential in the face of
country's engagement in economic competitive pressures, on a common internal
competition with professional economic market and under general economic crisis
partners. Romania's economy, under the new conditions. One significant aspect in
conditions, in our view, has become more assessing the potential economic viability is
vulnerable. [27], The priorities created by the the correlation between turnover, number of
EU in solving problems are not always employees and labor productivity. [11,
achieved. Consequently, the standard of p.110]
living, the quality of life bears a high
probability of reduction. In economic 4. Organizational communication and the
competition of the EU countries, Romania business environment.
should exceed the level of efficiency, labor
productivity, innovation, and organization Organizational communication is required
etc. of the most developed countries in to develop new images about the product
Europe. [21], [23] This is impossible. The company. The communication between the
successes and the failures of the company and the business environment
undertakings in Romania, are, to a large involves the availability of the risk capital
extent, determined by the managerial skill, and of the technical skills of the workforce
the quality of work, the staff employed, the and also the accessibility of bidders, and the
structure of production, the final product, the availability of customers and markets. The
originality of products, the economic communication policy of the company
activities, the number of employees, the involves combining internal organizational
structure of labor occupation, the turnover of communication with external organizational
enterprises and of the local units, the gross communication. In a general sense, the
and net investments of enterprises etc. The "economic potential" can be defined as the
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The company can run continuously one the quality of markets; price levels in final
and the same work. In this case, its products, raw materials; market demand; the
productive potential enterprise corresponds economic, political and social-economic
to the entrepreneurship, i.e. to the work partners; the performance level of the
performed by the company. The modification productive technologies used in the
of the work done by the company may enterprise; the level on similar businesses;
increase or reduce the business potential. productive technological developments, the
This statement can be interpreted for final product structure; the availability of the
commercial enterprises. The company data (indicators) on the domestic and foreign
specializing in the marketing of certain economic markets; the level of creativity of
products creates its respective infrastructure company employees. [21]
(warehouses, refrigerators, stores, staff, etc). The company can run continuously one
The factors that have an impact on the and the same work. In this case, the
productive potential of the company can be enterprise corresponds to the productive
grouped into: factors that can be influenced potential of entrepreneurship, i.e. the work
by the company management, called performed by the company. Changing the
endogenous factors (en); factors that are work done by the company may increase or
generated from the outside, called external reduce the business potential.
factors (ex.). Listing all the endogenous and The potential of the enterprise depends on
exogenous factors, influencing the the specific works carried out by
productive potential of the company, is entrepreneurs; on the professional skills of
problematic. In our opinion, endogenous the staff and of the team of employees; on
factors are: possible contractors (en1); those the fairness of the issues raised by the
forms of entrepreneurship organization manager; on the scientific-practical potential
(en2); the methods of calculating of the entrepreneur. The potential success of
endogenous indicators, forecasting the enterprise is determined by the
endogenous factors (en3); possible structures entrepreneur. He/she is the company's force
of final products (en4); the quality and or "engine" and must possess certain
originality of the final products (en5). professional analytic qualities; he/she should
exogenous factors are: the level of creativity have the possibility of calculating,
of employees (ex1); the performance of forecasting the economic indicators. [26],
productive technologies generated by [27]
scientific and technical progress (ex2); the The works (within an enterprise) is to be
improvement of the level of internal and executed by the company, under the impact
external markets (the market is perfect when of demand and of the scientific and technical
all participants have reliable information progress, evolve changes. The employees
about supply, demand, price, quality, level of creativity in the enterprise is largely
performance) and the existence of determined by the manager's skill in forming
monopolists and monopsonists (ex3); an appropriate team, responsible for creating
internal and external market demand to the a system of incentives for the qualitative
company's final products (ex4); economic execution of works. The manager's selection
policies in the country (ex5); economic of the team depends on the level of training
policies in the countries of the economic of the specialists in the respective profile, in
partners (ex6); developments in raw material education and training institutions, internship
prices, needed by the company (ex7). opportunities granted to potential employees,
in other industrial and technologically
5. Conclusion performant countries.
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Antohi Ionut
Ovidius University of Constanta, Faculty of Economic Sciences
ionut.antohi@univ-ovidius.ro
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100%
80% 61%
60% 25%
40% 11%
20% 3% Source: www.eurofound.europa.eu [10]
0%
The analysis of the results regarding these
practices in our country case, reveals the
possibility of a lower impact on the
companys level of performance, due to the
Source: www.eurofound.europa.eu [10] fact that companies with a limited allowance
of this kind of practices are prevalent. We
There are numerous Romanian companies can assume quite a negative influence over
that enable their staff to beneficiate of both the organizations performance.
types of training. This leads to the conclusion Another set o practices concerns the
that such an approach has also a positive variable pay schemes used by the companies.
impact on the companys performances. They can determine a positive influence over
It should be noted that a large percentage the results of the organization.
(25%) of the companies are allowing their Companies participating in the survey
personnel tom participate only in on-the-job were separated into three categories:
training programs. This could lead to a future category A-companies that used none or
research theme regarding the influence over limited variable pay schemes;
the quality of training in the case of each type category B -companies that used a
of program. medium percentage of such schemes.
Working time flexibility practices refer to Most of those formulas are performance-
the possibility that the staff establish a related pay schemes. In the same time the
flexible working program, accumulation of formulas of pay based on group
overtime and use part-time working performance and profit-sharing are less
formulas. Considering these issues, the used;
companies that have participated to the category C-a low percentage of
survey, could be separated into three groups: companies provide different variable pay
group A-companies that have a limited schemes on a large scale.
allowance of working time flexibility The situation of the Romanian companies
practices; that use such formulas is presented in the
group B -companies that enable such figure below.
practices in a selective manner. For
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Asalo Nicoleta
Ovidius University of Constanta
nasalos20@gmail.com
Vasile Iulian
ULIM Chiinu
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- in essence, regarding the competitive over the new segments of the global market;
companies, the potential competitive the world needs global financial rules in
advantages have become effective; when order to regulate and supervise the markets,
numerous competitive national companies while trade protectionism threatens to narrow
operate within an industry or within a the markets. This new global landscape will
relevant market, it is considered that that test not only the Europe 2020 strategy, but
country is internationally competitive; also the economic progress in various
- a plurality of economic, social, political Member States and, ultimately, the very
factors, which contribute to the welfare of a European social model and the quality of life.
country; [2] While many countries are struggling to
-a superfluous trade balance and economic recover themselves after one of the most
growth; [3] serious economic and financial crises, in
- a high living standard, a low involuntary 2010, the EC presented a draft of an EU
unemployment level and a superfluous trade economic strategy for the next 10 years, in
balance (European Commission, 1998); order to replace the current Lisbon Agenda.
- the ability to sell, the ability to attract, the
ability to adapt and the ability to win; [4] 3. European vision of competitiveness in
- a superfluous trade balance; global economic crisis context
- the evolution of prices, of unit labor costs,
high rates of economic growth, success in Highlighting the fundamental
social and environmental protection; [5,6] vulnerabilities, the global economic crisis has
- the sum of performance at the imposed something new, proper to the times
microeconomic level; and to the challenges of new global
- meaningless word in the national economy competitors led by China and India;
.[7] therefore, the EU proposes a new strategic
A country is successful in foreign markets goal, an additional increase of
either by being aggressive and/or by competitiveness by 2% in the next decade.
increasing its attractiveness to foreign The draft agenda Europe 2020
investment (World Competitiveness envisages 3 major growth formulas:
Yearbook, 1998). The competition ensures 1. Smart economic growth
the availability of quality products and (strengthening of knowledge, innovation,
services for the final consumer, a higher education and digital society);
degree of innovation, lower prices. [8] 2. Sustainable economic growth
In the global competition for markets, the (increased production efficiency and
chances of economic success of a country or competitiveness);
of a region are based on the offer 3. Inclusive economic growth
specialization and on focusing the (increased participation in labor markets,
development efforts to key fields where there acquisition of new professional skills and
already exists competitive advantages, poverty reduction).
resources and skills. [9] Each of these formulas will be supported
The European Union is undergoing one of on pillars that will quantify the extent to
the most challenging times since its creation, which the objectives will be achieved. Thus,
with multiple challenges for policy makers. for:
The European context is different from that - Smart Europe: the pillars are
of 10 years ago. Excessive budget deficits, medium enterprises, the digital agenda, the
with an average well above the EU maximum innovation level and the education and
level, required by the Maastricht criteria, training level;
reduce the governments margin of maneuver - Sustainable Europe: the central
in the next decade. Unemployment increased, pillar is the environmental sustainability;
the population is growing old, the Union is - Inclusive Europe: the pillars are the
increasingly dependent on energy imports, labor market including employment rates and
the immigration challenges the domestic the social inclusion [10].
labor market, the natural resources become Intelligent Europe aims to measure the
less accessible; some emerging economies, extent to which European countries develop
which are more and more competitive, take themselves due to the economies based on
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knowledge and innovation. This is comprised Education and training. Qualitative higher
of four pillars that capture different aspects education and training is crucial for the
of Europe's ability to develop smart savings: economies that want to move the value chain
the enterprise environment, the digital beyond simple production processes. This
agenda, innovative Europe and education and pillar measures the employment rates in
training. secondary and tertiary sectors and the quality
A prerequisite to improving the economic of the education provided. The training level
growth prospects and the employment in the of the staff is also considered due to the
EU is the overall improvement of the importance of the level of continuous training
enterprise environment. and the workplace which is neglected in
Another key objective is to promote many economies in order to ensure the
entrepreneurship and facilitate business constant upgrading of workers skills.
creation by improving the business Inclusive Europe captures the extent to
environment for start-up businesses. This can which each member of the Union can
be achieved by reducing administrative contribute and benefit from the growth and
barriers, reducing distortionary or development of Europe. This is surprised by
burdensome taxes, and by the access to two pillars, one for measuring the labor
capital for new and growing firms. The EU market and the working conditions and the
has made a major leap in this area, making it second for measuring social inclusion.
possible to start a business within one week The labor market and occupation indicate
in most EU countries, and facilitating the the ability of an economy to mobilize all
process through a single window. However, human resources in order to contribute to the
the enterprises environment varies widely in growth of the company. Labor markets must,
member countries and much remains to be therefore, have the flexibility to change
done in this area. workers from an economic activity to another
The Digital Agenda. This dimension one, quickly and at low costs.
measures the extent to which an economy Efficient labor markets must also ensure a
will harness the information and clear relationship between the workers
communication technologies (ICT), in order incentives and their efforts to promote
to share knowledge and enhance the meritocracy at the workplace.
productivity of its industries. The countries Social Inclusion aims at determining the
with companies that aggressively integrate extent to which all members of the society
these new technologies into their production have the opportunity to benefit from their
processes tend to establish productivity country's economic growth.
increases, which are more visible than others. Through a single pillar, sustainable
This dimension of Europe 2020 provides an Europe measures the possibility of the natural
excellent opportunity for the exchange of environment to contribute to the overall
information and experience between stronger national competitiveness and preservation of
or weaker actors on the market. a pollution free environment.
Innovative Europe. Innovation is critical, Environmental sustainability. A high
especially for those countries that are very quality environment, which is also well
close to the border with the technology, as managed physically, is important to
with most EU economies. The companies competitiveness through a variety of
from these countries should design and channels. The efficient use of energy and of
develop cutting-edge products and processes other resources reduces costs and boosts
in order to maintain a competitive advantage. directly the productivity by virtue of a better
This progress requires an environment that is use of inputs. Moreover, a high quality
conducive to the innovative activity, natural environment supports a healthy
supported by public and private sectors. workforce, preventing disease and the loss of
Basically, it involves investment in research productivity of the human capital, issues that
and development (R&D), especially by the can be incurred by pollution and by
private sector; the presence of scientific environmental degradation. The
research institutions of high quality; environmental degradation can directly
extensive collaboration in research between reduce the productivity of sectors such as
universities and industry agriculture, which, in turn, decreases the
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production and the potential for countries to innovation and less on the existence of
meet the food needs of the population. natural resources; this is the essence of the
Being also found in the old Lisbon concept of competitive advantage and a
Strategy, these three forms of growth will nation holds a competitive advantage if
have, this time, less ambitious and more companies operating in that territory have
realistic objectives, which are five in number, this advantage.
setting the minimum thresholds that the states The European Union is currently
should achieve by 2020: experiencing one of the worst periods of its
1. 75 % of the population aged 20-64 establishment due to rising unemployment,
should be employed. dependency on energy imports, immigration,
2. The "20/20/20" climate/energy labor market, inaccessibility of natural
targets should be met (including an increase resources, phenomena which will affect and
to 30% of emissions reduction if the even affect several member states; Project
conditions are right). Europe 2020 - Building a more competitive
3. 3% of the EU's GDP should be Europe provides a new strategic goal - an
invested in R&D. additional increase competitiveness by 2% in
4. The share of early school leavers the next decade with three formulas for
should be under 10% and at least 40% of the growth: smart, sustainable and inclusive
younger generation should have a tertiary growth, formulas which be supported by the
degree. pillars that will quantify if the proposed
5. 20 million less people should be at objectives will be achieved.
risk of poverty. These formulas growth, although included
In 2011, the Member States registered in the old Lisbon Strategy will have lower
highly varied rhythms regarding the seven targets but more realistic 2020: occupancy
pillars and distinctive competitive min. 75%, reduction in carbon dioxide
performance was identified from country to emissions, energy consumption by 20%
country. compared to 1990; R & D investments min.
Thus, the analysis made by the World 3%, 40% of young people have higher
Economic Forum pillars that support Smart education alongside the prevention of early
Europe divided the 27 EU countries into four school leavers below 10% and the number of
categories, according to scores recorded on people at risk of poverty to fall by 20 million.
the four pillars:
1. Northern European countries 5. References
(Sweden, Norway, Finland) occupy the top
three places in the Smart Europe (SMART) [1] Porter, M.E., 1998 b. Clusters and the New
category, recording, on the four pillars, the Economics of Competition, Harvard
highest growth rates. Business Review, Boston
2. Western European countries (the [2] Lopez-Claros, A., Porter,M., Xavier, S.M.,
Netherlands, Austria, Germany, UK, Schwab, K., 2007. Global Competitiveness
Report 2007-2008, www.weforum.org
Luxembourg, Belgium, France, Estonia and
[3] OECD, 1992. Technology and the Economy:
Ireland). The Key Relationships, Organization for
3. Southern and Eastern European Economic Co-operation and Development,
countries (Slovenia, Portugal, Spain, Czech Paris
Republic, Cyprus, Malta, Latvia, Lithuania, [4] Stockholm Trabold, H., 1995. Die
Italy, Slovakia, Poland and Hungary). internationale Wettbewerbsfhigkeit einer
4. Southeast European countries Voppswirtschaft, Deutsches Institut fr
(Greece, Romania, Bulgaria). Wirtschaftsforschung. Vierteljahrshefte zur
Wirtschaftsforschung 2/1995
4. Conclusions (Schwerpunktheft Internationale
Wettbewerbsfhigkeit), Dunker & Humbolt,
Berlin
The success and specialization of national [5] Aiginger, K., 1998. A Framework for
economies now depend on the competitive Evaluating the Dynamic Competitiveness of
national and international market companies, Countries, Structural Change and Economic
their profile, assimilation of technical Dynamics, no. 9
progress, access to new technologies,
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Strategy: Between Misuse and Abuse of the Label and the Concept
Bcanu Bogdan
Transilvania University of Braov
b.bacanu@unitbv.ro
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rather plain reasoning, which was attractively discount was announced, which represented a
associated with facts, names and situations reduction in the prices, nowadays one says
known from the economy placed in the low-price strategy.
limelight. The named works, propelled The tendency characterized by the
towards the center of the public interest by reduction and the vulgarization of the entity,
enthusiastic reviews and opinions, have and also of the process segment to which
constituted the background of the inflationist strategy is afforded seems to resiliently
phenomenon related to the strategic continue, in spite of each and any kind of
vocabulary. In this manner a mania logic. One can easily infer that a consequence
associated to the concept has developed. of this excess could be that each person
The most significant example of this type involved or responsible with this kind of
of promotion is the work of Michael Porter. strategy begins to consider himself the
Porter (1980) [4] develops a launching general/strategist of his organization, a fact
platform for several collocations such as that obviously bears on the normal hierarchic
competitive advantage or generic relation.
strategies, which will generate an important The inflation in the utilization of the
number of discussions evolving around the strategic attribute becomes more
pros and cons of this matter. interesting as the word is usually used as an
One shouldnt leave out the prominent adjective. The number of elements labeled as
role of the economic press in the strategic has exponentially developed as
amplification of the inflation involving the the amenity of the term has improved (due to
word strategy and the connected terminology. a simple definition!) and as the consideration
Rumelt (2011) [2] argues that the word for those involved in the so-called strategic
strategy is used so often, that it has become activities has increased.
a verbal tic. For certain management concepts, for
The inflation is however supported by the instance decision, position, objective or plan,
adjective strategic. The last three decades the association of the strategic attribute
denote an expansion both of elements to could by motivated at first, even if after a
which the attribute strategic is associated, more thorough content analysis this label
and also of the list of activities and processes proves to be merely abusive.
which are strategic or are emphatically
labeled as strategies. 4. About the definition
At the level of current organization
management, one can ascertain that the Colin Gray, an expert on strategy, argues
strategy refers to any structure or process that the concepts strategy and strategic
oriented segments of the organization. This are sometimes questioned and, in most of the
type of reference obviously belongs to this cases are used in a wrong manner [6]. In
inflationist tendency. At first the functions of other words and using a close-up view, the
the organization were brought to discussion problems related to the inappropriate
and thus production, human resources, utilization of the terms belonging to the
financial and marketing strategies appeared. strategy family are enhanced by those
Then the reduction of the entity considered generated by the concept definition. The
by the strategy has become more and more confusion created is maintained by the
prominent. From human resources strategies inappropriate use of the word, in order to
the focus moved to wage strategies, then to create chaos at the level of defining the
recompense strategies, to strategies for bonus connected concepts.
providing on the credit cards, according to The theoreticians underline the
the imagination of various authors. The well- eclecticism reflected by the definitions. It
known marketing textbook of Kotler (1997) becomes obvious that maintaining this
[5] offers the topic related directory almost situation is profitable for a certain category
two pages of terms of the type strategy of theoreticians.
of. The studies that disclose the chaotic state
For instance the collocation plan of is of facts prove to be lucrative for theoreticians
no longer used and instead strategies of and they support the divergent tendencies of
is taken into account. If some time ago a the field. It becomes easily predictable that
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coexisting definitions is deemed as viable, he starts by pointing out that strategy does
the named author, in a mere contradiction not represent organizational effectiveness.
with Mintzberg, considers that definitions Even if he uses a series of modern
show significant differences related to ingredients such as synergy, constant
organization definition, manager involvement development, and so on, in the manner of his
and the manner of developing strategy. works relying on discrete examples from the
On the same line of a thorough discussion American economy or referred to it, he
of the concept, Hafsi and Toulouse (1996) doesnt acquire the expected clarification or
[15] afford a hundred of pages to the decantation of the topic.
discussion of various aspects associated to The problem of strategy definition is
strategy definition in a synthesis of 600 pages addressed in an entire work by Whittington
dedicated to organization strategy. (1993) [17]. His manner of solving the
After 1990, one can distinguish the problem resembles to severing the Gordian
emergence of a group of theoreticians among knot, as this problem relates to several
which are those already mentioned, who question marks concerning the opportunity of
assume the idea of a set of definitions related the named definition. The covert conclusion
to strategy. The consequences involved in the of the author is that even if one can discuss
dispersion of discussion on pragmatic the matters of strategy and strategic
solutions for this issue are easy to find. management, a definition of strategy doesnt
There are also authors who promote a become necessary.
position able to integrate these approaches. Allaire and Frirotu (1998) [18] avoid
For instance, the authors of the bestselling stating a working definition of strategy, as
strategic management course in Europe, some of the named authors do, but however
namely Johnson, Wittightton and Scholes they generate a set of connected definitions.
(2011) [9] provide an integrative definition of They are then used in a coherent manner with
strategy: is the direction and scope of an reference to an organization belonging to
organization over the long term, which company type, assuming that the
achieves advantage in a changing maximization of its economic value is taken
environment through its configuration of into account.
resources and competences with the aim of On the other hand, as in real life, the over-
fulfilling stakeholder expectations and also regulation of a phenomenon can per a
an approach which follows Mintzbergs contrario bring chaos as an unwanted effect
pattern. against which initial rule had been created
The integrative definition states (the [19], same applies when it comes to mere
italics mark the authors original underlining) defining a concept that is applicable into
that many ways by too many users.
In parallel, in the form of an appendix, Finally, the list of definitions can be
made formal under the title Commentary: expanded by a significant number of other
The Strategy Lenses the authors assume that examples. The associated explanations, as the
strategy can be seen according to the reasoning able to be built on their basis, may
lenses used in the approach. They argue be added to the existing ones, a fact that
that strategy may be discussed in a different implicitly proves that both the dispersion
manner, by using one of the following phenomenon and the chaos effect remain
lenses: design lens, expertise lens, or real.
idea lens, as discourse lens appear in a
special position, similar to Mintzbergs 5. Conclusions
pattern.
The fact that strategy definition represents This study points out an obvious negative
an obvious weak point of current theory state of facts associated to the strategy
involving strategic management is concept, which was translated from the
highlighted by many authors, those who original military field into the firm
distinguished themselves by laconic or management field or, in a more exact
ambiguous definitions included, such as manner, into the field of economic behavior
Porter. Porter (1996) [16] explains what involving a certain segment of organizations,
strategy represents on dozens of pages, and namely the firms. There still are utilization
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problems in what this word is concerned, and Pearson Prentice Hall, Upper Saddle River,
also related to the concept. NJ, 1996
This state of facts is characterized by the [11] Carpenter, M.A., Sanders, W.G., Strategic
excessive and useless utilization of the Management: A Dynamic Perspective
Pearson Prentice Hall, Upper Saddle River,
strategy label and of the strategic
NJ, 2007
attribute in an increasing number of [12] Wheelen, T.L., Hunger, J.D., Strategic
situations and for an expanding amount of Management and Business Policy (12th ed),
elements associated to the company. The Pearson Prentice Hall, Upper Saddle River,
reactions against this tendency are made NJ, 2012
available in explicit manner by certain [13] Mintzberg, H., Five Ps for Strategy,
authors, as others covertly attempt a California Management Review, vol. 30,
narrowing of this phenomenon, as the tide no.1, pp.11-24, 1987
created by the indiscriminate use of the terms [14] Dufour, Y., Le concept de strategie:
seems unstoppable. variation sur une thme de Mintzberg, in
Hafsi, T. and Toulouse, J-M. (eds.) La
Even if the area of strategic management
strategie des organisations: une synthese,
seems to refine by time, the definition of the Les Editions Transcontinental, Montreal,
basic concept seems to stray from this overall 1999
direction. Not only that a certain convergence [15] Hafsi, T. and Toulouse, J-M. (eds.) La
point of definitions is far from being made strategie des organisations: une synthese,
available, but also the number of definitions Les Editions Transcontinental, Montreal,
deemed by their own authors as being only 1999
operational is in expansion. [16] Porter, M.E., What Is Strategy?, Harvard
Turning this concept to its source, as Business Review, vol.74, no.6, pp. 61-78,
utilization and definition are concerned, 1996
[17] Whittington, R., What Is Strategy And
seems to move further away as each new
Does It Matter?, International Thompson,
textbook or article related to strategic London, 1993
management is issued. [18] Allaire, Y., Frirotu, M., Management
strategic, Editura Economic, Bucureti,
6. References 1998
[19] Drumea, C., Rules on business ethics. Sox
[1] Chandler, A. D., Strategy and Structure, MIT standard, The Amfiteatru Economic Journal,
Press, Cambridge, MA, 1962 vol. 10, no.23, pp. 155-160, 2008.
[2] Rumelt, R. P., Good Strategy, Bad Strategy.
The Difference and Why It Matters, Crown
Publishing Co., New York, NY, 2011
[3] Ansoff, H.I., Corporate Strategy, McGraw-
Hill, New York, NY, 1965
[4] Porter, M.E., Competitive Advantage:
Creating and Sustaining Superior
Performance, Free Press, New York, NY,
1985
[5] Kotler, P., Managementul marketingului,
Teora, Bucureti, 1997
[6] Gray, C., Modern Strategy, Oxford: Oxford
University Press, 1999
[7] von Neumann, J., Morgenstern, O., Theory of
Games and Economic Behavior, Princeton
University Press, Princeton, NJ, 1944
[8] Mintzberg, H., Tracking Strategies: Towards
a General Theory, Oxford: Oxford
University Press, 2007
[9] Johnson, G., Whittington, R., Scholes, K..
Exploring Strategy, (9th ed), Financial
Times Prentice Hall, Harlow, 2011
[10] Barney, J.B, Hesterley, W.S., Strategic
Management and Competitive Advantage,
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# of
3-
Scoring If item is not applicable to the
Proble
Green Yellow Red 5 ms 4 2 1 0
Legend area, score N/A and do not
>=70% 50%-69% <=49% include in the final total Score
1 2 3 4 5
Category Item N/A
Distinguish between what is needed and not needed
Are unneeded equipment, tools, furniture, etc. present in
x
SORT the area?
Are any Red Tagged items more than 3 weeks old? x
Are personal belongings properly stored? x
A place for everything and everything in its place
Are aisle/walk ways and workstations clearly marked and
x
identified?
SET-IN-
Are jigs, fixtures, tools, equipment, & inventory properly
ORDER x
identified and in their correct locations?
Are items put away after use? x
Are there max. and min. indicators for supplies? x
Cleaning and looking for ways to keep the workplace clean/organized
Are cleaning materials easily accessible? x
Are equipment and work station kept clean and free of oil,
x
SHINE grease and debris?
Are designated walkways/stairs free of dirt, oil, grease and
x
dust?
Are lines, labels and signs clean and unbroken? x
Maintain and monitor the first three categories
Are display boards used, organized, current and tidy? x
STANDA Are employees dressed appropriately and prepared? x
RDIZE Have specific cleaning tasks been assigned? x
Are trash bins and scrap/recycle containers emptied on a
x
regular basis?
Stick to the rules
Is the 5S program discussed at Key Indicator/Crew
x
SUSTAIN Meetings?
Are the tools in place to sustain the 5S program? x
Overall, is the area maintaining 5S rules and disciplines? x
TOTAL 55
% SCORE 61%
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Table 2. 5S Audit
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5. Reference
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Boldureanu Gabriela
Department for Interdisciplinary Research in Social Sciences and Humanities
Alexandru Ioan Cuza University of Iasi
gabrivaleanu@yahoo.com
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The globalization and the world crisis of the Trade Register during 2008-2014 had a
recent years have favored a series of oscillating evolution with a slight recovery in
structural changes deeply felt in the field of 2011. From a peak of 144239 registrations in
creating new businesses in Romania, so that 2008, amid the global financial crisis that
the total number of start-ups registered in the also impacted our country, the number of
Trade Register from 2008-2014 had start-ups has declined significantly in 2009 to
fluctuated with a slight recovery in the year 111832. After the year 2011 the newly
2011. After 2011 the new start-ups created businesses experienced a downward
experienced a downward trend. trend reaching in 2014 a total of 101627 of
newly established companies.
3. Material and methods The suspensions of activity are shown in
the following table:
This study is the result of a process of
critical, interpretative and comparative Table 2. Dynamics of suspensions of
investigation of studies developed at national activity during 2008-2014
level concerning the researched topic. In this No. Year Suspensions
analysis statistical, domestic and international 1 2008 12019
databases were utilized. 2 2009 134441
3 2010 66428
4. Results and discussions 4 2011 21221
5 2012 24078
In national statistics, the new businesses 6 2013 22079
are usually treated as SMEs while in other 7 2014 15788
cases a newly created business can originate Source: The National Trade Register
in an existing business which went through a Office
restructuring or privatization (National
Institute of Statistics, the Statistical Business The activity of the companies was
Register). There is also the term "new seriously affected by the economic crisis so
creation" and concerns the inclusion of the that in 2009 a large number of companies
company in the Statistical business register or (134441) were forced to suspend their
the registration at the National Trade Register activity. Thereafter, the trend was decreasing
Office [10]. reaching in 2014 a total number of 15788
The statistical data from the Trade companies.
Register concerning the registration of
individuals and businesses as well as Table 3. Dynamics of company dissolution
suspension, dissolution and canceling from during 2008-2014
the Trade Register mirrors the demographics No. Year Dissolution
of businesses in Romania. 1 2008 3762
Thus, in terms of registration dynamics
2 2009 30105
during 2008-2014 the situation is as follows:
3 2010 7508
4 2011 11660
Table 1. Dynamics of business
registration during 2008-2014 5 2012 22500
No. Year Registrations 6 2013 23208
1 2008 144239 7 2014 18336
2 2009 111832 Source: The National Trade Register
Office
3 2010 119048
4 2011 132069
The number of businesses that have
5 2012 125603
interrupted their activity during 2008-2014
6 2013 124816 reaches in 2009 a maximum of 30105 until
7 2014 101627 their number decreased in 2014 until it
Source: The National Trade Register reached the figure 18336.
Office After the dissolution stage, the erasing
marks the cessation of use of the full capacity
The total number of start-ups registered in
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By regions, the distribution is relatively which SME`s actives are: wholesale and
equal, a higher percentage of micro retail trade; production; construction;
enterprises has Western region and the professional activities, scientific and
smaller businesses are more numerous in the technical services; hotel and catering sector,
North Eastern region. the activity fields related to newly created
Another aspect analyzed was the businesses at national and regional profile are
distribution companies on fields and by described in the following table:
region.
If the five sectors at European level in
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2011 10.4 9.0 14.6 12.2 6.0 10.8 13.5 9.9 5.9
2008 4.8 5.4 5.6 3.8 4.3 5.5 4.5 6.6 3.3
Hotels and 2009 6.8 8.2 5.1 5.7 9.8 10.7 5.8 8.7 4.4
restaurants 2010 6.9 7.2 5.2 5.3 4.0 6.1 11.3 8.8 6.4
2011 6.7 5.8 6.4 4.3 7.5 7.8 7.9 8.0 6.1
2008 10.1 8.1 7.2 15.5 5.5 13.2 3.9 10.0 19.1
Other 2009 11.7 11.3 10.7 11.2 3.8 6.7 15.3 17.4 12.0
services 2010 12.3 3.4 14.2 4.1 10.7 11.8 13.9 21.8 15.1
2011 11.3 19.2 10.1 4.4 8.8 24.0 10.3 7.8 6.3
Source: New businesses and entrepreneurs profiles, INS, Bucharest, 2013, p. 28
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Butnaru Iulia
Academy of Economics Studies, Bucharest
iuliacsc@yahoo.com
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have the right to look over the analysis commitments. The deal between Lafarge and
performed by the EC representatives and to Holcim is accepted by the EC only if in the
request an audience. This phase lasts 90 days, markets where their operations are significant
however the deadline can be extended if the Lafarge and Holcim take the commitment to
information requested by EC representatives sell the division that can reduce their market
is not made available. quota on the respective market. As a result in
The figure below illustrates the number of 7 European countries ( UK, Germany,
merger operations that were brought in front Romania, Slovakia, France, Czech Republic
of the European Commission for the and Spain) Lafarge and Holcim were obliged
approval, as well as the number of cases to restructured their business before the
rejected under each Phase. effective merger.
For example in Romania, Lafarge must
Figura1: The total number of large sell the cement plants from Medgidia and
mergers subject to EC approval during the Hoghiz, a grinding station at Targu Jiu, the
period 1990 30 April 2015 SICIM terminal and terminals in Cluj and
Glina [3].
Besides the impact of the merger and
acquisition on competition and consumers,
these reorganisation forms are also on the
agenda of the tax authorities as these may
erode the taxable base.
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when the RTA are liable to reclassify a Under the Romanian tax legislation,
transaction into an artificial transaction. currently tax losses of the absorbed entity can
In practice, the RTA may challenge the be taken over by the absorbing entity,
economic substance of the transactions if proportionally with the part of the assets and
insufficient arguments are brought by the liabilities transferred according to the merger
merging companies. In the near future, the project. In order to benefit from the recovery
author expects that the RTA to focus more on of the tax losses, both companies involved in
mergers and acquisitions, as these represent a the merging process must have a detailed
good tool for tax planning. record of the tax losses. Same provision is
The lack of the experience of the tax applicable to the cross-border reorganization,
inspectors and the confuse legislation may involving one or more Romanian companies.
raise significant problems to the bona fide The advantage of taking over the tax
taxpayers. In order to defend the business losses further to a reorganization process
restructuring in the front of the RTA, the encourages the implementation of such
merging companies need to gather sufficient operations. However, as mentioned above,
documentation that can substantiate the the OECD encourages tax authorities to
economic benefits that can be derived from introduce restrictions on the use of certain
the envisaged merger. The documentation losses in the context of reorganizations in
prepared need to reflect the specific order to prevent the aggressive tax planning.
circumstances that governs the envisaged In this context, we will see, whether this
merger. measure undertaken by the RTA in order to
stimulate the business environment in
Distribution of titles Romania will be applicable in the near future.
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8. References
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CRM implementation is not an easy duty. A main component of any CRM strategy
Starting in the mid-1990s and heavily entails the facilitation of two-way interaction
promoted during the late 1990s, the term between individual customers and the
CRM still means different things to organization (external communications)
different people [1]. Winer [2] builds on this about every aspect of the relationship,
notion that CRM is ill defined. He states, enabling the organization to adjust its
CRM means different things to different strategy, including product design, customer
people. For some, CRM means direct e- service and channel preferences.
mails. For others, it is mass customization or CRM applications can use more
developing products that fit individual advantages of technology; CRM application
customer's needs. For IT consultants, CRM provider can use technology to gathering
translates into complicated technical jargon data, producing knowledge to predicting the
related to terms such as OLAP (on-line behavior of customers and patterns of trade.
analytical processing) and CICs (customer Central foundation to CRM applications are
interaction centers). Data warehouses, enterprise resource
Lovelock and Wirtz [3] define CRM as planning (ERP) systems and the Internet. [4]
the overall process of building and According to some specialists [5], the
maintaining positive and profitable customer technological factors of CRM can be
relationship trough creating values and described as follows:
satisfaction for customers Data warehouse technology: a warehouse
Reinartz, Krafft, and Hoyer (2004) define of data. This tool can transform
CRM as, A systematic process to manage customers` related data into customer
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intelligence for finding the way customers mining is the process of finding
act and behave. [6] correlations or patterns among dozens of
Enterprise resource planning (ERP) fields in large relational databases.
systems: ERP systems are used to save Data mining helps CRM to find the
time, resources and represents a strong behavior of customers and patterns of
base while CRM tries to connect front buying, finding the market segmentation
and back office applications to maintain and finding potential customers.
the customer relationship and making Therefore organizations can predict
loyal customers. An ERP system covers customers` needs and increase customers`
different departments of a business: satisfaction. Result is trust to organization
production department, financial and making loyal customers.[10]
department, acquisition department, Computer Telephony Integration (CTI):
logistics department, sales department, Nowadays the customers are cooperating
etc. and integrates them with suppliers with the companies. CTI is a technology
and customers, reducing the risks of that mixes telephone systems with
operational errors. [7] computer technology in order to respond
Internet: The development of Internet and quickly to customers.
communication standards offer special Knowledge management: It is important
opportunities to connect the company to know the past to predict the future
with its customers and create stronger thats why information like historical
relationships in order to gain customers sales and revenue reports are very
trust and make them loyal. The CRM important. [11].
developed a lot due to the internet, and According to Gubser (2001), some of the
responding to customer needs and interactive technologies that provide
problems in real time created advanced interactive customer communications and
customer service. [7] that include:
Telecommunications and media Intelligent email: Email remains an
technologies: CRM is using social media important method of customer contact for
to serve customers better, build support, more than 70% of online businesses [12].
enhance the customer experience, help The development this technology implies
customers in their chosen channels and automatic generated e-mails response type.
cooperate with customers. [8] This is based on searching the answers in a
Data analysis technologies: There are predefined data base according to the demand
different types of data analysis techniques written by the applicant. This represents a
in CRM; two main of them are: a) OLAP: personalization and a development of the
Online Analytical Processing collects a answers to predefined questions -frequently
group of data bases that are related with asked questions (FAQs). The customer
each other in one or more dimensions, receives quickly its answer, with or without
like location. For instance, the customers knowing that the answer was actually
can earn a more detailed view of the data generated by a computer program. Reducing
by their level of access to database [9]. b) the answer time, increase customer
Data mining: by using different ways, satisfaction and subsequent loyalty and
data mining can extract information from retention rates. This technology can be
customers` data. Data mining (sometimes developed by integrating voice messages in
called data or knowledge discovery) is the the e-mail, creating connections between call
process of analyzing data from different center and email.
perspectives and summarizing it into Collaborative chat: The organization
useful information - information that can comes closer to customers by using chat
be used to increase revenue, cuts costs, or programs directly on their websites. This tool
both. Data mining software is one of a allows customers to receive the answers to
number of analytical tools for analyzing their questions in real. Live collaborative
data. It allows users to analyze data from chat function satisfies better the needs of
many different dimensions or angles, their customers or potential customers. A
categorize it, and summarize the Customer Service Representative (CSR)
relationships identified. Technically, data gives all the information needed and of
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course the CSR has access to all the Social media is not anymore a simple two
customers history with the organization way relationship but one based on
(when talking about past-clients) and they collaborative relationships. The social
will be able to interact with the customer in a feedback sites can begin polling customers,
more meaningful way [12]. finding out about their likes and dislikes,
VoIP: VoIP is a technology whereby an their wants and needs.
organizations Local Area Network (LAN) or The significant use of social media is a
Wide Area Network (WAN) can be used to response to consumers` pervasive use of a
transfer both data and voice. An organization social media in their daily lives. Facebook,
no longer needs to pay a telephony company Twitter, Youtube, Instagram, Pinterset,
or use physical phones in order to Snapchat are just some of the social media
communicate to the customers, but also with millions of daily users. Beyond these
inside the organization. There are specific social networks, other social media include
programs as Skype, Ymessenger, MSN that sites, such as Amazon, TripAdvisor, the
are used to communicate. Not to forget that entire Google network, allowing peer-to-peer
VoIP can be used on smartphones by interaction. [13]
downloading a specific program, people The benefit: Social information and
connect worldwide without any costs. engagement can produce vital customer
Internet made it possible. Another strong insights and create a long-term relationship
reason that without Internet we were not with your customers that can then be used to
talking about customer relationship improve the customer experience and
management. ultimately benefit an organization's bottom
Gubser also talks about telephony: line.
Computer telephony integration (CTI). We The latest trend in CRM is to try to take
believe that customers need quick answers advantage of social media, whose relational
and information, that`s why on some properties and characteristics are particularly
websites, customers can write down their suited to customer interactions. [14]
phone number and they will be reached by a
CSR. The customer can be redirected to a 3. Role of CRM solution
specialist that gives specific information and
catches the client, growing the profitability A CRM solution has the role to organize
of the organization. and automatize the business processes of an
Moreover, the social media should not be organization, especially the sales, marketing,
forgotten in the process of CRM - In today's customer service and technical support
social media driven world, it is essential to divisions. A CRM system generates a
have a CRM system that includes your social complete customer relationship management
media interactions with customers. But "it's that offers complete, centralized, up to date
not enough to merely collect and monitor and easy to access information about
[this information]," says Sid Banerjee, CEO customers, helping in taking the best strategic
of Clarabridge, a provider of customer decisions in sales and marketing. A CRM
experience management solutions. system exceeds the role of a simple software
"Businesses need to intelligently listen to implemented in an organization because it`s
their customers and... actively engage with more than an operational system, it`s a
[them] over Facebook, Twitter and other strategic one. An important matter in
social outlets," he argues. implementing such a system is the
Truly successful CRM depends on assimilation instalment and its proper usage
developing a deep understanding of what the within the organization. This is what offers
customers want. The use of social media is the success of a CRM project. A CRM
the way to do this. Companies need to know automatize some processes, change that way
what customers are talking about and be part of work of people in the organization and
of that conversation. Organizations should standardize the best practices in the field.
listen, learn and engage with customers and
try to deliver what they want and what they
need.
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4. The benefits of implementing a CRM the customer. There are some suppliers
system that offer operational CRM solutions that
allow implementing traditional strategies
We believe that the key benefits of CRM of CRM. These typical strategies are
are: supported by solutions based on how to
Obtaining a 360 degree perspective of the make services, sales, marketing
customer, allowing personalization of department, more efficient, growing
services, product range, communication organization profitability and its clients
channels, etc.; also.
Improving service quality by increasing
efficiency and process automation 5. Mistakes when implementing CRM
improvement and level of customer
satisfaction through better service, Companies make an intelligent
personalized offers and communications investment with CRM, which is why they
activities; want to be sure they will derive maximum
Increase customer loyalty through value from their investment. With this in
effective cross-selling activities ( cross- mind, the question is why the same mistakes
selling ) and up-selling activities( up- are continually made when companies
selling ); purchase and implement CRM. Even
Reduce costs by increasing operational organizations with prior CRM experience are
efficiency and process automation; repeating the same mistakes before finally
Increased brand value through a better getting what they need. Some of the most
buying experience. common CRM mistakes, and how to avoid
Increased business profitability them, are highlighted below.
Moreover, other benefits of the CRM are:
quick access to information facilitates Putting the IT Department In Charge of
responses to customer requirements: The Implementation - When an
Prevention in duplication and filtering organization is implementing any type of
them to remove erroneous data; software project, especially one that is
highly reliant on user input like a CRM
Extracting the data in a simple way, its
system, it is the individuals who will be
control and navigation through the
using the software who need to lead or at
database, CRM systems offers a customer
least have input. At the same time the IT
transparency, an analysis of profitability
department should offer support as
and retention models;
needed. When the people who are
By integrating advanced data and the data
supposed to be using the software are put
analysis tools provide standardized
in charge, it helps to ensure they will use
quality reports to the organization;
it instead of finding reasons against
Facilitates calculating the present value adoption. Additionally, if we put the IT
and the future estimated value of each department in charge of our CRM system,
client. they will probably run it based on what
The use of integrated data solutions can they want, rather than the actual business
generate a significant return on needs. [15]
investment (ROI). The advantages are:
better cross-selling and up-selling (facility Failing To Consider The End User - In
to improve modeling and to create a better
order to achieve success with the CRM
sight of their clients), improving the skills
system, it is essential that organization
to maintain customers (avoiding the
gets its end users involved prior to even
attrition of customers), improving the
looking at the options that are available.
technique of attracting new customers.
Explain to your end users how this new
The competitive advantage of CRM
platform will benefit them. This
CRM is defined as a strategy to manage
discussion needs to focus on the CRM
the relationship with customers and the
solution as a tool to improve the entire
interaction with them in the most
organization and achieve various
profitable way for both the company and
organizational goals, such as enhancing
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revenue, reducing company costs, saving CRM. Each organization should clearly
time, improving sales metrics define what it tries to accomplish when
and automating processes. implementing a CRM solution. There are
Focusing on Price as Opposed to Value - questions that should be answered: do we
While the price is definitely an important want growing our net profit? Do we want to
factor, when looking for CRM software, improve the clients` retention rate? Reducing
there are some companies that may think costs achieving new customers? Enhance the
about it too much. If we do not want to prediction rate? Improve the responding
take a decision based on price: we should time? Each company should know what their
find something that will fit the needs of goals are and prioritize their objectives in
the organization, that is simple to use and order to find the best solution.
that the IT will be able to provide support Aligning the business objectives with the
for. IT operations the responsibility when
Failing To Integrate the CRM System implementing a CRM solution comes both to
With Other Critical Systems - In order to technicians and business sponsors.
optimize the CRM investment, it is crucial Moreover the final users should be
to integrate it with the other systems. For involved in the project from the beginning. In
example, when the organization integrates case of involving the final user at the end of
it with the email and ERP system, it can the project, there are some risks of
help increase your revenue significantly implementing an incomplete solution , a less
compared to companies that do not do productive one or less efficient.
execute this significant action item. There should be a proper training for the
Not Determining a Path To Success - If users of CRM solution. The final users
the CRM solution is implemented without should understand how the CRM technology
any solid goals it can fail. It is important works and how the new processes help them
to have metrics and goals for each of the achieve their goals, being more effective on
business areas that are going to be long term.
impacted by the new system. When you Once the solution has been implemented,
know what the most common mistakes organization should measure and monitor the
are, you will have a much better chance of efficiency of the solution in order to improve
avoiding them. This is essential for any it continuously. Organizations should make a
company that wants to get the highest comparison between processes from the
return on investment as soon as possible. beginning and identify performance rates and
Ignoring social media solution as a CRM the correlate the way CRM influences these
tool - Customer relationship management rates.
is a continually evolving domain that has
been particularly affected by social media, 7. Conclusion
which have revolutionized the way
businesses and consumers interact. The discovery of the Internet has been an
important factor in the development of these
6. Making CRM successful huge databases because it allows external
data storage. Companies were facing a
The CRM I more than a measuring difficulty in storing large amounts of
clients` satisfaction system, it is more than information, and CRM came to their aid,
developing a new website or a call center. based on the new possibilities that the
Being focused on clients, CRM represents a Internet was offering.
new business model that has a major effect New CRM technologies bring cost savings
on human resources, processes and and faster customer service when applying them
technology. correctly. Organizations should be very careful
There are certain factors that we should when implementing a CRM system and take a
consider when implementing a CRM look on the mistakes that they are facing, in
solution: order to make CRM successful.
Establish measurable business objectives:
it is very important to define specific benefits
that are expected to be delivered by the
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Chikhladze Niko
Kutaisi University, Kutaisi, Georgia
chixi@mail.ru;
Valishvili Tea
Akaki Tsereteli State University, Kutaisi, Georgia
valishvilitea@gmail.com
1. Introduction
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Tourism plays an important role in the lost its importance in the history of Georgia.
development of work places and in the Nowadays Kutaisi is still the important
increase of employment opportunities; cultural-educational center of the country.
Tourism will support the equality of The city of Kutaisi is reasonably close to the
regional development and increase economic eastern coast of the Black Sea. It is also near
growth in the regions; important ports of Georgia such as Poti and
Tourism will support the development Batumi. Both of these areas have a direct rail
of other branches of economics (tourism and road access to the city of Kutaisi. The
related branches) and will encourage their distance between Kutaisi and Batumi by rail
development. is 139 km. and the distance between Kutaisi
There is a growing tendency to increase and Poti by rail is 103 km. The distance from
the number of foreign tourists visiting Kutaisi to the capital of Georgia Tbilisi is
Georgia. In the modern world the tourism 221 km. and the distance from Kutaisi to the
development strategies are as the followings: nearest airport Kopitnari is just 20 km.
Support and promotion of foreign Kutaisi is the second large city of Georgia
tourism according to its size and number of
Development of domestic tourism population. Its situated in the center of
Preparation and in-service trainings for Imereti on the both banks of the river Rioni.
qualified personnel City of Kutaisi is located in the center of the
State regulations of tourism highways as one can go to Sukhumi, Poti,
Batumi and Samachablo through Kutaisi. The
Improvement of the legal framework
city is connected to the main railway line of
and its harmonization with EU legislation
Caucasus line through its railway. Kutaisi
Popularization of regional tourist
Rail Terminal has direct connection
resources of Georgia
with Tbilisi (Central). Line is served
Promotion of tourism through public by Georgian Railways
relations and etc. The territory of Kutaisi and its
surrounding area, just like the rest of
3. Tourism potential of Kutaisi and its Georgia, is presented with the historical and
surrounding area cultural monuments of ancient, late and early
Christian periods. Each of them is an endless
One of the most beautiful cities of source for the groups of tourists and experts.
Georgia Kutaisi is located in equally Only in Imereti, there are more than 500
beautiful part of Georgia Imereti. The city historical monuments.
of Kutaisi as a settlement grew up in the Among the tourist priorities of Kutaisi
place where the river Rioni broadens its and its surrounding area are resorts and
narrow banks. Kutaisi is listed among the recreation zones. The beautiful scenery and
ancient cities of the world. According to the curative mineral waters of the region make
old Greek mythology and history Kutaisi the balneological resorts attractive for
belonged to so called Minos Age (XVII- visitors.
XV B.C). A famous Greek epic Unlike industrial field, there is a rapid
poem Argonautica which is no less than development in trade and service businesses
3300 years old tells us a story about Jason in Kutaisi. There are up to thousand
and the Argonauts and their journey functioning trade and consumer services.
to Colchis, where the whole story is There are both retail and wholesale, as well
developed around the Hegemon city of as several agricultural markets. In recent
Kutaisi and the author Apollonius period, several large modern shopping
Rhodius considered Kutaisi their final centres have been constructed. There are up
destination as well as the residence of to twenty restaurants, the same number of
King Aetes. private hotels and dozens of cafes and bars.
In ancient and feudal times Kutaisi Kutaisi has a great perspective of tourism
intensively kept the position of the first city development. It is rich in mineral waters,
in West Georgia (Colchis, Egrisi, Lazeti). In historical and cultural monuments. Kutaisi is
spite the fact that Kutaisi lost its status of even considered a centre of tourism
being the first city of the country it has never development in Imereti. There are
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exploratory and adventurous types of tourism programmes concerning this field not only in
in the region. This is possible due to Imereti but also in Racha-Lachkhumi,
mountains and forests, which occupy 250 Svaneti, Samegrelo to provide information
000 hectares. The following kinds of tourism about their rich traditions and folklore.
are developed in Imereti: ecotourism, rafting Today, there are 134 hotels in Kutaisi and
on the river Rioni, mountaineering, riding, its surrounding area, housing more than 3
spaleotourism. 315 guests, which is not enough considering
The historical part of Kutaisi has been the number of visitors. As for the main
rehabilitated and other infrastructural projects resorts of the region, Tskaltubo and Sairme,
have been carried out, which was of great Tskaltubo, with its improved infrastructure,
importance for the development of tourism. It which should develop to become the main
is important that the rehabilitation and balneological resort in the region, has 9
restoration of the historical image of the hotels for 495 visitors, while in Sairme, there
district was based on the materials found in are 7 hotels for 1000 guests.
archives. The Bagrati Cathedral, which is Despite undergoing events, there is a
included in the list of UNESCO World number of problems in the research
heritage sites, has been restored, and the conducted in Kutaisi and its surrounding
Gelati Monastery, which is also included in area. According to the results, we carried out
the list, is currently undergoing restoration SWOT analysis, which is presented in Table
works. 1.
It is also very important to mention tourist Table 1. SWOT analys
complexes of the Sataplia State Reserve Strengths
located near Kutaisi and Tskaltubo caster The citys geopolitical and geo-economic
cave (Kumistavi, Prometheus). position, proximity to seaports; the well-
In April 5, 2011, a tourism information developed transport communications (motor
centre was established within the joint project roads, railway, air transport) and well-
of tourism national administration and organized infrastructure; the existence of a
Kutaisi City Hall. Its mission is to support solid and rational basis for city promotion as
the development of tourism in Imereti region, a touristic center of the country; favorable
to act as a link between tourists and tourist climatic conditions; the existence of
service, to provide tourists with full numerous and various historical monument
information about accommodation, food, and cultural heritage; low-crime rates;
transport, historical monuments, national staying in the area with rich and various
parks and other tourist attracions. natural resources; resorts (balneological and
Among the tourist priorities of Kutaisi healing waters; museums; landscape
and its surrounding area are preserve protected areas; literature, folklore,
territories, national parks and resort zones. traditions; Imeretian cuisine; ecologically
Among these, we should mention Sataplia clean agricultural products; archaeological
reserve, Borjobi-Kharagauli national park monuments; architectural structures; karst
with total size of 75 000 hectares. Today, caves, canyons, ravines; investments growth
there are 53 resort and leisure places in this dynamics; a cheap and skilled labor force;
area. The most remarkable among these are the existence of free economic zone; the
Sulori, Kvereti, Satsire, Zvare, Amagleba, as well-developed network of banking and
well as balneological resorts Tskaltubo, microfinance organizations, hotels and
Nunisi, Sairme. restaurants; monitoring of atmospheric air
There are also exploratory and pollution; the well-developed network of
adventurous types of tourism due to regional televisions, radio and mass media;
mountainous and forest massives, which participation in the international tourist
occupy 250 000 hectares of Imereti. Rural exhibitions and fairs.
tourism acquired a new character. This Weaknesses
business aroused interest among more than Lack of popularity of domestic tourism
200 agricultural farms in Imereti. Hunting among the population; low public awareness
tourism also has great perspectives. Georgian of the regional tourism potential;
traditions, wine and cuisine are of particular disorganized infrastructure in tourist zones;
importance. There are special service tourist routes and renewal of service forms
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on these routes (bicycle, horse riding, picnic the near future; the current process of
territories); lack of activities aimed at arranging the existing landfills and
attracting foreign tourists, and, therefore, construction of new ones; waste separation
improper awareness of international tourism experience; recognizing the tourism as one of
potential; technical infrastructure inadequate the most priorities; development of long-term
to modern requirements of tourism; low and long-term development strategies for
competitiveness of domestic tourist products; tourism; studies of tourism potential and
a weak advertising support of products; target objects; improvement of infrastructure;
illegal landfills, inexistence of waste organizing the meetings, discussions and
separation and recycling, as well as lack of debates and prioritization of problems with
industrial and harmful waste neutralization participation of policy-makers and experts;
systems; inexistence of infrastructure recognizing new tourist destinations as a
required for agro-tourism availability; a weak touristic attraction; classification of the
monitoring system of environmental objects of cultural heritage; attracting the
pollution degree; undeveloped tourist investments for reconstruction and renewal
resources; language barrier; vulnerability of tourism infrastructure; mobilizing and
degree of the historical-architectural and involving the local population in tourism
cultural monuments; low level of services; infrastructure development; diversifying the
lack of professional personnel; inexistence of tourism product and improvement of
tourism development strategy; inexistence of services; training and retraining of
visitors registration; inexistence of statistical professional personnel; accounting of
data on revenues from tourists in the region; statistical information on tourist flows and
lack of lodging capacities; inadequate use of creation of database; promotion of cultural
tourism potential; lack of services people values existing in tourism among the local
with restricted abilities; infrastructural population; providing the free Internet
inadequacy of tourism potential; small services in the citys recreation areas;
number of tour operators and travel agencies; construction of new landfill and waste
lack of infrastructure development required recycling enterprise; supporting the
for different types of tourism; rehabilitation conduction of various types and scales sports
of historical and cultural heritage and site competitions, folklore festivals and other
improvements; fostering the creation of events during the different memorable days
regional network of the well-equipped of municipalities; fostering the organization
camping sites; the absence of branding of cultural, adventure, medical, religious,
strategy for the city. rural, eco, sports and other fields of tourism,
Opportunities creation of tourist routes; development of
Increasing interest of investors toward the local network for production and selling of
city; increasing involvement of international domestic traditional products and souvenirs;
financial organizations in solving the citys fostering the implementation of energy-
problems; transit tourism development efficiency projects and development of
potential; the possibility of developing the energy management.
specialized tourism market; rehabilitation and Threats
development of cultural heritage; the Incomplete technical infrastructure of
opportunities for close business relationships tourism modern requirements; inefficient
with twinned regions and cities (Newport, communication and information system in
Poznan, Ashkelon, Gyanja, Lvov, Donetsk, tourism sector; competition from
Zaporozhye, etc.) in the fields of business, international tours to domestic tourism
education and tourism; existence of the product; inexistence of modern technologies
appropriate conditions for city brand for controlling the operation of transport
formation; reconstruction of David the system; inadequate monitoring of chemical
Builder International Airport creates composition of waters in the rivers;
favorable conditions for touristic center contamination of rivers with sewage waters,
formation; tendency of maximal domestic and agricultural-industrial waste;
approximation of educational system to the natural disaster; insufficient investments for
European level; increasing tourist flows; reconstruction of tourism infrastructure; lack
establishing the travel information agency in professional personnel with good command
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of foreign language; lack of coordination tourism can develop into one of the most
between the state and private sectors; important centres.
insufficient knowledge of tourism market for
regulation of demand and supply; supply of 5. References
unvaried products; weak management;
negative international views on safety of [1] UNWTO World Tourism Barometer.
travels to Georgia. (December, 2013)
[2] Review of Georgian tourism statistics, 2013
4. Conclusions [3] www.gnta.ge
[4] www.georgia.travel
[5] http://stats.georgia.travel/Default.aspx
Our analysis showed that the number of
tourist firms which successfully work on
receiving tourists is very small. There are
the following preventing causes which are
to be taken into consideration:
National heritage tourism tours, as a rule,
include only one particular site. No one tries
to make any changes and introduce
innovative methods. A lot of impressive sites
are ignored by tourist firms and, therefore,
remain unknown for tourists.
The state is reluctant to make
recommendations for tour operators, to make
a list of monuments and provide them with
relevant information. There is no connection
between the state and private sectors.
Some streets and squares are named and
numbered (marked). There are no regulating
norms (instructions, rules) set by either state
or local self-government. Sometimes, there
are no signs with names on most streets and
squares, or the signs are put up according to
the owners wish, or, in some cases, the
names are only in Georgian, which is quite
uncomfortable for tourists.
Tour operators dont do their professional
work to create new tourism routs, as this kind
of job is not quite profitable for them.
Tourism advertisements are ineffective,
no one cares about the quality of presentation
and souvenirs. No one conducts a research to
find out what is in demand and whether it is
provided to the society.
The museums found in municipalities and
villages in surrounding area are not included
in cultural heritage tourism, there is no
programme or plan to use them.
Based on the above-given information, we
can conclude that geographical location,
natural and historical-architectural
monuments, folklore and hospitality
traditions of Kutaisi are a firm basis of its
tourism potential and, in the conditions of
relevant support and sensible policy, Kutaisi
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optimization of the information flows from the role of the feedback, starting from the
an organization or of the one destined to the next hypotheses of research: I the managers
external environment represent one of the have real preoccupations (with the help of the
constant concern of the actual management. informational technologies) for the
So, it is necessary the construction of an organization an perfection of the
integrated informational system which communication process; II the
responds to the organizations needs through organizations benefit of well thought
total capitalization of the obtained programs/ informational systems which must
information. generate a right feedback;
The information is the main pylon of the The quantitative empirical research has
managerial activity. In the decisional been made through polls and the collection
conception, the feedback is assimilated with instrument of the data was represented by a
the delivery of the evaluation or corrective questioner with closed questions. The
information needed to the adaptation and questions had been made so they can focus
selection processes, to the definition of some on the general problem regarding the
efficient strategies and is controlled the feedback and its role and customization in
intensity of the inter or intra organizational the sanitary units as regarding units. The
flows. The main consequence of the send research unit is established as being the
information by feedback represents in the person, manager an employee, no matter of
inducted influence over the motivation and the gender. The answers quantified by
consistence of the decision makers. Starting percent and at the extra request they have
from the actual concept according to whom been classified in values from 1 to 4, using
the technology is the new manager - Lynda the semantic differential, the four steps
Gratton, 2011, considers the feedback as a option.
part of the management informational The collecting period was between
systems which sustains, helps, hurries and 2015.03.02 and 2015.05.01.
gives consistence to the decision. Through The questions from the questionnaire have
the technology you can monitor better the been grouped on two levels, one gathering
performance, can give reports in real time general considerations about the feedback (1-
and consecrate to a certain type of receiver/ 5), the other about the role of the
beneficiary. Therefor the feedback makes the informational systems in making a feedback
informational system become responsible of (6-11). Ive chosen this way because we
producing and orientating some useful considered it was necessary to highlight and
information, with efficiency, at managerial the general knowledge of the respondents
level. regarding the feedback, the confusions these
make and the influence of these unclear in
The research methodology the specific answers. The questions were:
1. What is the feedback? How often
The purpose of this research is to analyze each person from the organization
of some general and particular issues of the should receive feedback? And also
feedback, as a binder of managerial leant of who should offer it?
the managerial communication and vector of 2. How do you consider the feedback
the informational streams improvement in should be given between
developing the capacities of the managerial departments? And inside them?
informational systems. The review took in 3. Do you know the difference between
consideration the managers activity and the feedback and critics?
role of the informational system in generating 4. Do you think there must be followed
a feedback of whose results are to be felt in some models to offer feedback?
the efficiency of the work and the facility and 5. Do you think that the positive
correctness of the taken decisions. The study feedback is preferred to the detriment
had as objectives: of the constructive one or vice versa?
- The review of the managerial 6. The technical support in the
communication through the feedback; institution you work in can satisfy
- the review of the informations the demands of the informational
flow inside the organization by recognizing systems work for an efficient
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The received answers show that a big part the results it was observed that a big number
of the respondents (47.81%) realize that the of respondents (51.02%) considered that the
intra and interdepartmental relations are positive feedback should be used in detriment
conditioned by the feedback, that, in these of the constructive one. The respondents
conditions, it must be respected the reporting mainly to this kind of feedback is
informational systems linearity, and the seen as the respondents need to permanently
relations to be bilateral. A percent of 13.54% be recognized their merits, without
succeeded to identify and the diagonal considering that this thing may destabilize
communication in the case or using the the system by one way developing, by
management through projects with stagnation and collateral effects. The
advantages in the time and cost economy by constructive feedback is seen as a critique not
using some informal feedback relations. as a correction measure of some deficiencies.
There still is a significant percent of A small percent (16.21%) represented
respondents (31.44%) that do not identify the mainly by the managers, consider that the
feedback in the interdepartmental constructive management is more efficient,
communication process, although they preferable to the positive one, but they admit
consider that it should be given bilaterally. that its use is at least sensible at
An insignificant percent (0.86%) refuse to communication level. A percent of 32.67%
offer feedback, intra and interdepartmental, did not make the difference between the two
arguing that they deliver their tasks and that types of feedback.
is what is should be known.
Question 5
Question 3 As a last question form the general issue
It has been chosen a question that can rose by the feedback, we chose to find out the
highlight the respondents capacity of subjects opinion about the use of some
making the difference between the feedback models for the efficiency of feedback
and the criticism. More than half of the sending. A high percent among the
respondents (55.21%) didnt knew to respondents (64.23%) considered that this
difference the feedback from the criticism. problem of establishing the feedbacks
This ignorance decreases the power of the circuit and flow depends on the managerial
feedback that comes from its capacity to decision and in consequence of some patterns
recover, to maintain a good status or to (fixed, meaning well implemented in the
change an action, a behavior. The feedback organizational process) developed by those.
allows the receipt of a constructive answer A percentage of 17.77% identified the
and it refers to the action itself, that is way it informational systems as support for
different in the criticism fundamental way. feedbacks transmission optimization on all
Even the negative feedback regards an the known directions, without making a clear
action, not a behavior or a fact. difference of the types of systems that should
There was and a percent of 17.37% that be inserted. A percentage of only 16.3%, but
knew the fundamental difference between significant among the ones with leading
these two concepts but, surprisingly, the functions, understood that the informational
majority of those werent among the ones systems are the main ways of transmission
with leading functions. and optimization of the feedback, but
The analysis of this answer takes us in the identified the management informational
same zone of promiscuous, both of the systems as the pawns of a constructive
employees and of the managers, which do not harmony development between the
understand the importance of the managerial decision and the theoretical,
communication in the efficiency of the efficient models of feedback.
information flows and of the decisions and of
the consequences of this decision. b. Specific issues
Question 4 Question 6
By this question we tried to find the A first question from the category of the
respondents position regarding the positive strict ones regarding the units where they
and constructive feedback. After analyzing work challenges the subjects to identify the
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technical support from the their institution in the obtained feedback. On both limited
and to highlight if this satisfies the demands positions management and execution is
of the informational systems functionality, expected from the middle managers to work
for an efficient feedback. Their attention was without precise directions, to have o very
attracted that it was about the complete good understanding of the processes and to
informatics systems, independent from the communicate efficiently, giving a value pulse
management. to the information flow and to the received
The majority of the respondents (73.1%) answer.
consider that the technical support is old, A percentage of 32.31% sustain that there
inefficient and is not present at all the levels. is a poor communication between the
The cause is the poor financial, without executional and the executive parts,
accent on this kind of projects, a low training communication that exists thanks to the use
of the ones that use it and an unequal of these systems that are not inserted al all
insertion, at decisional levels. the levels in all the departments. This
A percentage of 12.8% consider that the absence must be replaced with the direct,
technical support is enough, that it satisfies personal communication of the feedback,
the primary needs of the users and that this decisions and of the results.
can assure a minimal flow of data and o
correct distribution of the feedback. A Question 9
percentage of 9% consider that the technical The next questions regarded and the MIS
support exists, that it is efficient, but the analysis in the evidence of an information
funds allocation should be made in the flow accelerated by the feedback.
upgrade domain of the used soft. This question brings in discussion the
feedback as a main characteristic of an ideal
Question 7 MIS model to highlight the understanding of
The respondents were asked to identify the feedbacks importance as a component of
the optimal informational route, so that the MIS in the decisions elaboration and
received feedback should have a low implementation.
alteration grade. As the human part is the one A percentage of 37.86% considered that
that can produce instabilities in the system, a MIS must have the feedback as component of
percentage of 81.39% considered that the the structure and to analyze and offer
informational route depends on the integrated and efficient solutions. They
complexity and the accuracy of the consider that the management informational
informational systems presented in institution systems would be incomplete without this
and of the implementation at inter characteristic, sustaining their development
institutional level of similar systems or of on this segment. A percentage of 32.7%
some complementary ones. A very small considers that the feedback, in its complexity,
percentage, of 9.6%, considers that the cant totally depend of the informational
received feedback, especially the informal systems, even if these are totally dedicated to
one, must not circulate through the the management, considering that the
informational systems that are without life personal and emotional involvement of the
because it remains there. Is about the manager cannot be replaced by some
feedback perception, different from person to patterns, even if they are ideal, in sending the
person, but whose consequences are felt in information and valorization of the feedback.
the groups harmony. A percentage of 7.23% considers that MIS
are inefficient and the feedback must exist
Question 8 more on personal plan. These answers
Regarding the best way of sending the indicate a superficial understanding of the
information regarding the hierarchy, feedback phenomena, considering that this
confidentiality, time, cost, distance, existing represents just a remark on personal plan,
preceding, a percentage of 36.95% sustains excluding it as a part of their personal
that the efficient informatics systems are the activity.
ones that optimize these requests, but most of
them highlight and the middle-managers
role in the vertical communication, implicit
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Question 10
A percentage of 41.7% considers that the The respondents were asked to evaluate
implementation of MIS brought positive and the role of the informational systems in
changes, per total, in the institutions where feedback spread in the order of importance,
they work, influencing the managers from 1 to 4, meaning from least important to
communication with the subordinated very important.
structures and the implementation of some According to our respondents
interference decisions with systems with appreciations 54.74% consider as important
some institutions. These consider that MIS the informational system in the spread of the
led to a more realistic perception, more feedback as being efficient, 21.38% classify
correct about the systems problems and of it as less important, 11.94% as least
the personnel and of the given feedback. important and 3.77% as very important. A
A percentage of 30.35% considers that the percentage of 8.17% did not answer to this
received feedback is not a consequence of the study
MISs implementation, but more a
transformation of the manager towards the 100
professionalism, that everything depends on 90
87
the person and not on the system. 80
70
Question 11 60
54.74
As a last question we wanted to know if 50
the feedback is seen as a reference point in 40
34
30
the development by the specialist of some
20 19 21.38
strategies and some new types of MIS. A big 11.94 13
10 8.17
part of the respondents (68.91%) considers 6
3.77
0 0.119 0.213 0.547 0.037 0.081
that the feedback is not a reference point in 1 2 3 4 5
the development of some managerial absolut frequence 19 34 87 6 13
strategies and new MIS, being entrusted that relative frequence 0.119 0.213 0.547 0.037 0.081
the decision makers will apply the optimal % 11.94 21.38 54.74 3.77 8.17
models of data flows implementation and of
the feedback, just for the grounding of some
decisions that help the institutional Conclusions
development, the medical acts
professionalization, the professional The comportment and the performances
development and the assurance of a sure and of a person can vary regarding of each
attractive working climate. A percentage of assessors statute. In actual organizational
26.4% is not expected that the new MIS context the focus is on communication, team
development to change the old conceptions work performance, but all these are
of the managers and their way of conditioned by the propagation quality and
communicating. time of the information. The behaviors and
situations evaluation, independent of the
Note Absolut Relative
results and the person itself, opens the way to
Answer attributed frequency frequency % understanding the profound causes of the
performance, actions and of the own
least experiences and expectation reflected in the
1 19 0,119 11,94
important case of managers by correct evaluation, and
less
2 34 0,213 21,38
in the case of the employees by stimulation.
important The development of the informational
important 3 87 0,547 54,74 technologies and the way they are used by all
the members of an organization require
very
4 6 0,037 3,77 permanent communication of the
important
expectations and so it is generated, voluntary
without or not, the feedback. The feedback through
- 13 0,081 8,17
answer its effects helps at the right position of each
159 1 100
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References
i
This work was supported by the project Excellence
academic routes in doctoral and postdoctoral research -
READ co-funded from the European Social Fund
through the Development of Human Resources
Operational Programme 2007-2013, contract no.
POSDRU/159/1.5/S/137926.
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natural resources and the release of huge analysis will be on the natural environment.
amounts of pollutants into the atmosphere.
The serious consequences of these activities According to Klassen and McLaughlin,
began to appear in scientific reports and environmental management includes all
gradually became part wide open public efforts to minimize the negative impact of the
debate [1]. company's products on the environment
The current concern, social and throughout its life cycle and that leads to
institutional to the environmental degradation maximizing the welfare of a community.
has led to pressure on economic entities to Given this new context, enterprise
adopt a much more respectful of their natural economy became interested in recent years,
environment. Companies have been forced the relationship between the environment and
by circumstances to invest in important the company, proposing a new approach to
budget "environmental protection" to fulfill various business theories in order to
government regulations. incorporate ecological variable. Under this
Only very recently, companies have new approach, the fact remains that the
realized that a successful business does not company acts as agent in charge of producing
necessarily have a negative impact on the goods and services required quality of human
environment and society. Long-term life. But it is also true that quality of life can
profitability rose thanks to environmental and not be achieved without preserving the
social practices such as eliminating pollution environment in which man develops as
and positive relations with the community. quality of life and environmental quality are
Although achieving sustainable two sides of the same coin.
development, involving the whole of society, To understand the relationship between
economic entities play a fundamental role in the firm and the environment must be
achieving it. [2] Not surprisingly, the accepted that the company is an open system,
production processes of economic entities are as determined by systems theory. However,
responsible, together with population growth traditional interpretations of the theory of the
and behavioral habits of citizens, to be the firm as a system, has led to some partial view
main cause of the rupture balance of of the effects that the company generates its
ecosystems. environment. Economic entity is an open
The actions directed towards achieving system, it is made up of a set of
sustainable results requires a comprehensive interdependent. This is an open system
and long-term thinking, such as: maintaining because he was in continuous relationship
constant awareness of people's needs now with its surroundings, being influenced by
and in the future; personal and business them, but in turn influences. However, the
development strategies in actions aware and effects that they generate economic entity in
not directed to the "use" of existing its environment, not just economic and social
environmental nature reserves, natural capital character, also of the environment, not just
on which life itself depends. positive also negative. Generate goods and
Sustainable business strategies and services, employees, dividends also consume
perceived to be characterized as a continuous scarce natural resources and generate
and systematic effort in seeking solutions, pollution and waste. It is therefore necessary
socially and environmentally responsible, that enterprise economy to define a broader
economically feasible in the long term [3]. perspective of the economic entity, as an
For example, reducing the effective use of open system, taking into account that the
energy and raw materials, not only brings company contributes to environmental
financial benefits, but at the same time damage for three reasons:
increase welfare such practices, in terms of - Entries consumption, as part of its
environmentally and socially. limited natural resources at a rate that
Sustainability is an issue widely debated exceeds their rate of regeneration;
companies and analyzing all aspects is much - Generate, as part of its output,
broader and over the scope of this report. emissions and waste contaminants to a level
Even if economic, social and environmental higher than the rates of assimilation of nature
impacts are interrelated, the main focus of the itself;
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Constandache Mihaela
Dimitrie Cantemir Christian University of Bucharest, Faculty of Tourism and
Commercial Management Constanta
mihaela_constandache@yahoo.com
Nenciu Daniela Simona
Dimitrie Cantemir Christian University, Faculty of Touristic
and Commercial Management Constanta
nenciu75@yahoo.com
Condrea Elena
OvidiusUniversity of Constanta, Faculty of Economic Sciences
elenacondrea2003@yahoo.com
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method taken from Ctoiu, I., et. al, 2002 method. Weighted arithmetic mean (Map) of
To this end was chosen two expectations obtained from the analysis is
questionnaires, one for identifying 6,024, and the weighted arithmetic mean of
expectations customers on the quality of perceptions is 5,027, indicating a favorable
food, and second, to identify the degree of image of the establishment of nutrition
perception of quality of food analyzed. Items among consumers. Quality of food services
included in the two surveys to assess provided in the organization will be the
expectations and service food quality (table difference between perceptions and
no. 2) were evaluated on a scale from 1 to 7. expectant, as expressed through Perceptions
Index Quality Service (PIQS).
Table 2. Items analyzed in the evaluation
expectations / perceptions about the quality
of food service
Item Item Item Item
No. No. Table 3. Media of expectations and
I1 Training of staff I10 Rapidity in serving
perceptions on each item analyzed
I2 Provided courtesy I11 Promoting the attractiveness and efficiency
Item Media of Media of perceptions
of supply of dishes and drinks
expectations
I3 Ease of communication with staff I12 Aesthetics of meals and beverages offered
I1 5,607 4,760
I4 Advice, where requested I13 Quality of meals and beverages
I2 5,933 4,640
I5 Provide individualized attention I14 Building menus depending on culinary and
I3 5,620 5,133
gastronomic peculiarities of other nations
I4 5,787 4,720
I6 The frequency of errors of ethics and / or I15 Organization and equipment serving dinners
technical services I5 5,813 4,980
I7 Modern equipment and furniture I16 Organization of room service I6 6,033 4,433
I8 Ensuring hygiene personnel serving the area I17 Confidence conveyed by the quality of I7 6,033 5,133
and items of inventory customer services I8 6,813 5,420
I9 Environmental conditions provided I18 The price / quality ratio of the services I9 5,787 5,253
offered I10 6,293 4,647
I11 5,813 4,400
I12 6,160 5,233
Source: Data processing based on Servqual I13 6,020 5,949
instrument taken from Moldoveanu, G. and I14 5,867 5,533
Dobrin, C., 2006 I15 5,607 5,200
I16 6,160 4,960
Both questionnaires were applied on a I17 6,713 5,113
I18 6,367 4,987
sample consisting of 187 persons. 40% of the
Map 6,024 5,027
respondents to the questionnaires used are
female, while 60% are male. Analyzing the
Source: Data processing based on evaluation
age structure of people respondent, found of Customer Reviews
that 30% of respondents are between 18 and
25 years, 36% have had between 26 and 40 Graphic representation of the image
years, 14% were between 41 and 50 years, analysis unit of food among tourists is shown
and the difference of 20 % are past 50 years. in Figure 1.
Structure of the citizenship of people The largest discrepancies between
respondent is 58% Romanian and 42% perceptions and expectations were recorded
foreigners. in terms of rapidity in serving, customers
The method used was the statistical trust in quality of transmission services
survey and the instrument chosen was terms, the frequency of errors of ethics and /
represented by the written, semi-structured or technical services, promoting the
questionnaire, filled in by the respondent. [4] attractiveness and efficiency of supply of
meals and drinks, and ensure hygienic level
4. Analysis and interpretation of results in the unit, which indicates once again, if
necessary, the very high expectations of
Results obtained under these same customers for these items. The smaller
respondents two questionnaires (table no. 3) discrepancies between perceptions and
were analyzed by semantic differential expectations were recorded in the quality of
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preparations and beverages offered the ability future activities of the organization.
of building menus depending on culinary and Assessment made by the customer is final
gastronomic peculiarities of other people and and absolute measure of quality of service.
environmental conditions provided by the Customer feedback can be immediate or
unit of food services. delayed and retroactive.
Efficiency and quality of the default
Figure 1. Media of expectations and actions are directed by customers, depend on
perceptions on each item analyzed tourism to a large extent the qualities of staff
is in contact with it. However, account must
be taken that, to facilitate a quality service,
7
performance, and the secondary must have
6 some characteristics that satisfy consumer
5 needs and expectations.
Therefore, you will need as employees,
4
i.e. those whose jobs are in a position of the
3 organization in contact with the beneficiaries
2 directly and permanently to hold some
personal characteristics, abilities and skills
1
measured, so as to satisfy the needs and
0 expectations of its citizens. All constituents
Tra
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Dinu Gabriel
Faculty of Economic Sciences / Department of Economic Sciences, Eftimie Murgu
University, Resita, Romania,
g.dinu@uem.ro
Dinu Loredana
Faculty of Economic Sciences / Department of Economic Sciences, Eftimie Murgu
University, Resita, Romania,
l.dinu@uem.ro
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pictures of the products while their brains related what consumer buy, but also with
were scanned by the MRI scanner. what they buy it. It depends on those factors
This brain scan reveals areas of brain which inclined the behavior of user or buyer.
activation sequence, these methods in market Culture, family and brand image these all
research are studying sensory feedback, factors influenced the buying behavior.
cognitive and emotional stimuli of consumers The repetition of advertisement and
to products or services. The human brain is economic factor like per capital income also
often viewed as a "black box", which is change the consumer behavior about to
something mysterious. choice the product. [5]
Since the Bright House Institute created Because the consumers behavior is
and supported neuromarketing with its manifested on the market, it becomes a major
contrary opinions, another entity, the study of marketing.
American Association Commercial Alert had We have studied the way in which the
been formed to oppose the scientific advertising influences consumer's behavior.
approach. [2] The shape of how the study was done was
A good example of companies who have build by the survey conducted on a
learned about images of the brain and were representative sample for the population of
really eager to use them in order to get results Resita.
for their sales department is Daimler The research was done on a representative
Chrysler, who was trying to highlight types sample of 366 people (quantitative research)
of car design among young people at Ulm in the population of Resita.
University. As a form of research we used the survey:
In United States the popularity of this individual structured, based on a
instrument has made it to be used even in the questionnaire consisting of 10 questions, all
field of political marketing. In the first closed. The questionnaire contains 7
election campaign after the attacks on questions of content and 3 of identifications
September, 11, 2011, professor Marco the interviewed person.
Jacobin, of California University, Los The most important objectives in this
Angeles, has made several studies on the research are :
political issue regarding election loyalty - how advertising influences the purchase
against George Bush Jr., John Kerry and decision of the subjects
Ralph Nader, after that they used -what the consumer thinks about advertising
neuromarketing techniques. [3] -trying to highlight the most important
However, a difference appears because techniques in order to promote
after 2002, these market research methods -many ways for a company in order to
were developed in Europe, especially become known
Germany and France, the first attempts were Knowing the fact that the goal of research
related to when a customer comes in contact is studying how advertising affects consumer
with a new advertisement. European people behavior was considered appropriate as a
use electroencephalogram a cheaper form of research survey on a representative
neurological tool, because the research by sample population of Resita.
MRI is very expensive. [4] To question number 1, on the total
We can say that Romania, our country, is sample, most of the subjects (23,40%) stated
ready for such market instrument only at a that the endogenous factors, as well as the
theoretical level, becoming a subject far too needs and motivations of most influence
distant from the realities we are living . purchasing behaviour of the consumer
(11,30% men and 12,10%women). The idea
3. Method and results that influence of attitudes and behaviour of
consumers preferences is the largest
Knowledge and explaining consumer percentage of 22,10% (10,17% men and
behavior and purchasing has become an women 11,93%). Those who consider that
urgent necessity, ignoring how the culture and social class as strongly
manifestation of it, causing serious problems. influencing consumer behavior are in
Each and every product delivers the different percentage of 21,56% (10,23%men and
meaning to each user. User behavior is not 11,33% women) , and 18,98% (8,90% men
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and 10,08% women) argue that exogenous The next place is occupied of the second
factors, such as reference groups and family variant of answer in percentage of 21,22%
influence consumer behaviour, whereas only (10% men and women 11,11%) of those who
13,96% (6,76% men and 7,20% women) that were surveyed they are satisfied with the
self-image has positive impact on consumer acquired information to purchase products,
behaviour. 17,29% are very satisfied with the
23,40% 22,10% information obtained (6,66% men 10,63%
21,56%
18,98% women) 15,07% of those who were surveyed
(9,87% for men and women as 5.20%) are
13,96%
dissatisfied.
39,83%
32,93%
30,58% 29,87%
14,83%
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a) 30,87% e) 29,13%
b) 27,31%
c) 41,82% At this question, number 7, the response b
(multiple times) establish among
At question number 6, on total sample respondents, regardless of gender, age or
23,84% of persons interviewed (16,52% men occupation. Interesting is that all The age
and women 23,84%) believes that the current categories bought products that were
advertising differentiates the classical by promoted at least once.(Under 20 years
costs. Time is another option of response to 20%,between 20-29 years 26.56% , between
our question, 20,51% (10,87% female and 30-39years 25.86%, between 40-49 years
male 9,64%). 27,53% , between 50-59 years 21.21%, over
28,66% of persons who were interviewed, 60 years 30.87%),but 40% of those who were
13,67% of men believes that interactivity is interviewed, with age between 30-39 bought
the most solid criterion in differentiating the several times promoted products.
two things, women representing 14.98%
30,60%
from the total. Globalization, another 25,90%
23,50%
characteristic of the current advertising has 20,00%
been chosen as variant of answer to your
question in a percentage of 11,34%
(5,04%men 6,30% women), smaller than
other variants of answer, the answer most Buying promoted products
often encountered was the availability,
a) 25,90%
29,13% (13.00% men and 16,13% women),
b) 30,60%
as the one who makes the difference clear
between the current and the classic c) 23,50%
advertising. d) 20,00%
4. Conclusions
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5. References
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Drumea Cristina
Transilvania Univesity of Brasov
cristinadrumea@yahoo.fr
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relationship with its employees, in a structure In our opinion, it takes more than that in
that points eight chronological steps from the order to effectively save on the personnel
pre-recruitment phase, that becomes more expenditure, although we acknowledge the
important in terms costs of the personnel steps of the hiring process and we agree that
attraction, to the post-separation phase, once keeping a time frame on the employment
the contractual relationship has ended, with cycle per employee or at least an average per
more or less elements of separation costs and, department can be useful for the
more significantly, bearing opportunity costs organizations personnel strategies in the
for both the former employer and employee. long range.
(Fig 1). We also have the same opinion on the
The ELC model reveals itself to be an existence of the life-cycles per employees
interesting HR tool, as it gives the and on the fact that maintaining a close look
organization a unified approach to address on the evolution of the personnel can help
the requirements and prospects of employees preventing early separation or loss of
per stage of the contractual relationship: pre- motivation and performance, conducting
recruitment, recruitment, installation, training eventually to separation.
period (increasing costs for the employer), Keeping an employee satisfied has its
settling in (followed by increase in obvious advantages in terms of work
productivity), development (maximizing ambiance, commitment to the organizations
productivity), re-shifting in the employee goals, implication in attaining objectives and
life/expectations (decrease in productivity) general loyalty to the values of the company.
and eventually separation. It can, on the other hand, bring self-
contention and overstated security of the
Figure 1. Phases of the ELC diagram workplace, which would affect the
competitiveness of the personnel not only on
the labour market at large, but also in the
organizations that keep them. There is
nothing wrong with having a happy
employee, it is an ideal situation, but the
organization works towards performance and
profitability like a reunion of interests, often
in competition and certainly in progress. In
other words, we believe that competition at
any level is good; moreover, it is a necessary
ingredient to success. Competition and
competitiveness can confer to the labour
Source: Retensa Employee Retention factor of the organization the status of a key
Solutions [11] advantage in the business environment.
Employee turnover can fluctuate per
The difference in approach and managing sector, industry and location of the business
we analyse. For example, industries like the
the employee in relation with the duration of
their stay in the organization is obvious. As food services or, at the other pole, the IT
industry can both experience higher turnover,
much as the contractual relationship between
up to 130%. The pressure of employee
employer and employee extends and more of
the eight steps of the model are taken, the turnover varies also with the size of the
organization, being more important in the
cycle is completed, so the supervision of the
employee life in the organization becomes case of smaller businesses than in the larger
organizations.
more significant in terms of costs.
In order to be able to take effective
The ELC model advises that by applying
actions to reduce its turnover, the employer
this diagram, the management is provided
should first have an objective insight of the
with a useful mechanism enabling the
organization to quantify its HR effectiveness costs induced to the organization might by
the loss of its staffing at one point in time or
at large and handle its staffing costs in order
on a yearly basis. In terms of the flow
to increase the performance of the personnel.
between staff in and staff out, it is difficult to
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find the right equilibrium that allows good More complex indicators should include
trends of high productivity from the characteristics such as seniority and
personnel that is experienced enough as it has experience in their composition of aggregate
been enrolled for a longer period of time but figures.
remains motivated and the newly recruited As opposed to the turnover rates, we
that bring motivation, fresh ideas, but lack calculate a stability index (Sindex) that shows
experience and need up-to-speed training to the way retention policies are put in place to
reach performance. These aspects can and keep experienced employees on board. A
will affect one of the significant competitive related rate is used:
advantages of the business on a mid and long L*
term range. Sindex 100
What is then the turnover and how do we Sp
calculate it? A general approach would be to Where L* = Number of employees that leave
simply track over the the company with more than one year of
A very useful method of calculating the service
cost of the staff turnover has been developed Sp = Total number of staff in post in
by the renowned PricewaterhouseCoopers the previous year.
Saratoga Institute. This calculation uses Stability rates and indexes (over longer series
mainly the cost of hiring and training new of time for the same organization or on cross
staff, which is as an objective approach and sectorial analysis) are useful for
states that: benchmarking purposes and for observing the
Total employee turnover cost = Costs of general dynamics of an industry in terms of
hiring new employees + Costs of training its capacity to attract and retain professionals.
new employees
We would add to this empirical relation 3. Components of the costs when hiring
the cost (in weeks/months of activity) of new employees
creation of the required synergies between
the new staff and the existing team; in other The cost inflicted to the company when
words, this would be the cost (in terms of hiring new employees generally includes the
energy and time) to transform the new comer following factors plus a margin of 10 to 15%
into a team player, which is less easier to for incidentals such as background or
detect, formalize and control. security screening, when needed.
Most organizations will track their Advertising the vacancy on specialized
turnover rates (T) on a monthly or yearly platforms, newspapers, recruitment
basis, using the ratio: channels;
L Selection of candidates after receiving
T 100 applications;
E HR unit time and induced costs of
Where L = Total number of staff out over
interviewing processes if selection is
an established period of time
made thru internal department;
E = Average of the total number of
new employees over the same period. Cost of tasks covering during the period
The result obtained includes employees when the position is vacant;
that left the organization, for whatever Initial training onsite to get the new staff
reasons, including dismissals, redundancy or up-to-speed;
retirement. Aside the turnover figure that Relocation pay and Travel expenses,
might show when studied in trends early when applicable;
signs of future misperformance in the Pre-employment charges such as
organization due to a bad work environment, Assignment grants, when applicable.
we think it is useful to calculate a separate To the above mentioned costs, the
figure for the voluntary turnover, as this employer needs to add on some inherent
would clearer point out the areas where the expenses related to the training factor for the
work environment is affecting the new employees:
employment dynamics. Training equipment and other resources
Technology
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Time for trainers and/or costs if employed and 25.3 million were unemployed
outsourced. (in search of work and available to work).
Many of these costs consist of The EU zone employment rate for those aged
management or administrative staff time 2064 recorded a net decline of 1.9
(viewed as opportunity costs) but direct costs percentage points during the period 2008
can also be substantial when advertising, 2014.
recruitment agencies, head hunters or While the EU target of employment rate is
assessment centres are used in the of 75% by 2020 for employable persons
recruitment process. between 20 and 64 years old, as set up by the
Europe 2020 strategy and European efforts
4. Employment and turnover levels into increasing this indicator are put in place,
European statistics the actual rate in EU-27 was 70.3 % in 2008;
as for the effects of the crisis, it is suggested
A study on the recruitment, retention and that crisis induced a fall of the employment
turnover survey [9] initialized in 2007, so rate (for age 2064 tranche of active
early crisis, reported an overall employee population) down to 68.3 % by 2013.
turnover rate for the United Kingdom of The data on employment provide an
3.9% with average job occupancy remaining interesting picture of the dynamics of the
rather constant from 2001 to 2007. On a employment in the European labour market
report from 2013, both voluntary and during the last 5 years. The decreasing
involuntary staff turnover got a peak in 1998 figures of the (legal) employment, following
at 4.5%, followed by a progressive decrease a period (2004-2007) of increasing trends
in 1998 until 2007 and a sharp plunge in that showed at the time a good rhythm of the
2008 and 2009, at 2.8% .This trend is almost market, whiteness that crisis took a toll on
entirely due to the falling of the voluntary the labour market good indicators. This
turnover (1.4% in 2009 from 2.2% in 2008). induced of course a higher preoccupation of
[12] the policymaker on creating new lines of
At the European Union level, according to development for the excedentary workforce.
provisional national accounts estimates The interesting tendency is that the variations
published by Eurostat [10] we find that in of the employment rate, its increase or
EU27 at the beginning of the economic and decreasing rhythms can translate an
financial crisis in 2008 there were 16.7 increasing overall turnover, either way. In the
million unemployed persons, while in 2012 absence of the specific data of the
the figure went up by a sharp 51,5%, to 25.3 employment turnover at the European level,
million. The unemployment rate in the we can only comment to date on the
EU27 is calculated at 10.5 % in 2012, up by evolution on the employment in general.
3.5 p.p. than the one recorded in 2008. As a recent propensity though, on a UK
Aside from that, another interesting trend survey from 2013 [12] for the English labour
concerns the long-term or structural market, we find that while voluntary turnover
unemployment, namely the rate of persons rates have decreased recently as a result of
who remain unemployed for 12 months or less favourable economic circumstances, the
more. This percentage is useful to be reverse side appears to be that redundancy-
calculated, as consequently the longer people related turnover has become more common.
remain unemployed, the less attractive they Turnover levels can vary quite drastically
become for employees, so higher is their risk with professions and industries. The highest
of remaining even longer outside of levels are typically found in retailing, tourism
employment area. In 2012, the long-term and leisure, call centers and among other
unemployment rate (for persons aged 1574) lower paid private sector services groups.
was 4.7 % in the EU27, with identical long- In the same Megatrends report published
term unemployment rates for men and in 2013, we find that the two major causes
women. that induced the employee turnover and have
The EU27s active population is at a determined trends in the workforce
movement on recent decades are
rough 242.2 million persons aged 1574 in
deindustrialization and demographic change
2012, among which 216.9 million were
[12] and the same are likely to continue to
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influence this phenomenon. Key findings employers in seek of the best arrangement for
include: their careers, as the less marketable seem to
The average amount of time people spend look for steadier contracts that avoid them
with an employer, named average job the effort of changing their workplace and
tenure kept on a steady pace over three adapt to new conditions.
decades, between 1970 and 2000.
However, the average job tenure appears 5. Reducing employee turnover
to have slightly increased after 2008,
along with falling job turnover. There are some important questions for
Challenging economic and financial the manager to answer in order to establish
circumstances are likely to be the main the correct bases for reduction of the
reason why turnover has fallen since employee turnover in the organization. Do
2008. However, this does not explain we hire the right age/motivation type?
why job turnover was already falling in Matching the organizations profile with the
the pre-recession period. target hiring group is crucial for the
The evidence suggests that changes dynamics of the future relationship with new
within the workplace over the last 10 to employees. If the organization cannot offer,
15 years may also explain falling job due to situational sector reasons or self-
turnover. These include changes that took established boundaries, a career advancement
place in retreat financial arrangements to the personnel, then it should definitely
and general terms, which put a pressure avoid hiring for example young career
on the cost of job exit for some oriented staff and should orient more towards
employees. Employment legislation new employees who are more settled and less
rules such as the National Minimum concerned with advancement. Caldwell [3]
Wage instrument have also played in our points out twelve policy goals of HR
opinion a major role. management which include managing people
Population ageing appears to have a as assets while aligning HRM policies with
negative impact on turnover overall. the corporate strategy.
Organizations have to face also the But finally does the employer understand
challenge on how to motivate and keep the its personnels motivation? Probably less
long term employees updates with current than expected and less motivated the
business practice; the longer the length of the employer becomes to make efforts for staff
contract gets and job stability increases, the that would embrace new challenges to the
more long termers may become self-content slightest increase in overall work
and not sufficiently interested in new ways of environment perspectives. Retaining staff
thinking and effort prone actions. requires for the organization to learn and
As stated before, the turnover levels differ detect what is important to the employees.
quite considerably from an industry to We talk about the classic external motivators
another. According to the cited study, the as recognition and rewards, as well as the
highest levels of turnover (22.6%) are found internal ones like enthusiasm and common
in private sector organizations. goal, adequate structure and sense of
According to the same study, the public belonging to the team. This is at least what
sector has in the United Kingdom, an average the theoretical concepts praise. But are those
turnover rate of 13.7%. ones the real motivators for the employee not
Turnover levels also fluctuate from region to seek a job outside his company, towards a
to region. The highest rates are found in the competitor or even outside his country? It is
regions where unemployment is lowest. It is difficult to detect the right path and to draw
also interesting to see that almost 25% of the the perfect line between concepts. Is it
employees in the United Kingdom have been important to reduce turnover and its
in their current jobs for five years associated costs? Obviously it is, but at what
continuously. It is no doubt a tendency price for the organization and which is the
towards stability, but not to be taken as perfect balance between retaining the good
entirely favourable, as the most marketable employees long enough for them to enable
people still tend to fluctuate between organizational performance versus indulging
auto-sufficiency and lethargy in learning and
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adapting for the employees that may extend look inward. High turnover can be a signal
inadequately their stay on board in absence for a problematic business, as well as low
of better offers and in presence of too turnover can be a negative, by the luck of
insuring contractual relationships with their attraction of the organization for potential
employers. employees.
Bottom line, the employee turnover costs and Less straitened attitude of employees
related seem to have a significant impact on towards changing mentalities and embrace
the productivity, performance and the culture new challenges might certainly encourage
of the organization, fact stated as well by turnover which is not a desirable effect, but
various authors [2] and surveys initiators. overall it could strengthen the capacity to
adapt and to increase the general
6. Conclusion employability of staff.
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growth. There was a substantial increase in another country, migrants often take a step
the share of firms reporting that finding down in their careers, switch sectors or
workers with adequate skills was a major or accept jobs that make little use of previously
very severe constraint to their business from acquired skills. For example, typical cases
the mid to late 2000s The result of the survey are nurses who work in old-age homes or
conducted by national institution and not skilled mechanics who become unskilled
only, turned out that more than four out of 10 laborers in the construction sector in Western
firms in Romania reported skills as a major Europe; a statistics offered at European level
or very severe constraint. The increase was showed up that about 35 percent of former
stronger after the country became integrated agricultural workers move into construction,
to the EU markets and began experiencing 15 percent into manufacturing and 14 percent
rapid emigration. to domestic work. In other sectors, workers
In terms of concerns about an over- are better able to put the skills learned at
supply or over-qualification of university home to use: in construction, for example, a
graduates Romania seem misplaced. There is sector that absorbs over a quarter of all
little evidence that an overexpansion of migrants from Romania, more than two
tertiary is driving down returns to college thirds of workers remain in the sector after
overall. Although the lack of required labor migration. Yet, migration does pay off as
force micro data for the early 2000s prevents they still earned higher incomes abroad.
an assessment of trends, compared to other On a background of an aged population,
ECA countries, Romania (72%) is closed to authorities should be more involved in
the Lithuania , Latvia and Poland average finding solution for bringing home the
and Turkey which is registering the highest migrants. But given the prospects for these
level (98%).The average earnings premium trends continuing, Romania can benefit from
for tertiary education at the end of this policies strengthening the links between the
decade was generally as high as in other Diaspora and the local economy and creating
well-performing EU10 economies. It is not incentives for migrants to return and invest
clear, however, to what extent the high productively at home. For instance, by
tertiary returns partly obtain from the slack creating incentives for transmitting
caused in the labor market by the sizeable remittances towards productive investments
emigration of Romanians, many of whom are and facilitating ( it is well known that around
increasingly well-educated. Also, the crisis 2012 , Romanian had the highest level of
may have affected the returns, although this remittance in Europe), the encouragement of
depends on how it has impacted employment those workers who want to, for example,
opportunities and earnings of the college- making it easier to maintain social benefits,
educated relative to those of high school buy property and start a small business(
graduates. family one ) or a SMEs basing the
A answer to the question who are the experience gained abroad.
Romanians from diasporas? can be offered
below. So a part of them (the ones skilled and 3. Conclusions:
educated) went to different host countries
mainly in Northern Europe and the non- It is quiet difficult to make
European Anglophone world, often found a recommendations and concluding remarks to
job in the formal service sector, including a country situation in which the central
banking and finance, and were able to authority isnt concerned about migration of
advance their careers upon migration. It is all categories , but especially of young people
also well known that in terms of adaptability and doesnt make a priority from it.
and productivity Romanians are very good Some proposal and conclusion can be:
and very fast in achieving new abilities. - making economical reforms in order
Despite downward professional mobility, to create the proper climate and
most Romanian emigrants do better in labor environment for business with high
markets abroad. A possible explanation can potential to thrive and create jobs;
be the financial benefit (wages and the social - encourage youth and older workers
system) offered by the job in the host who have accumulated the skills and
country. When starting employment in know-how in their occupations and
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4. Acknoledgment
5. References
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Juganaru Mariana
OvidiusUniversity of Constanta, Faculty of Economic Sciences
juganaru.mariana@yahoo.com
Juganaru Ion-Danut
OvidiusUniversity of Constanta, Faculty of Economic Sciences
juganarudan@yahoo.com
Abstract 1. Introduction
The current state of humanity is the result Nowadays consumer has become a smart
of our behaviour and interests, and in this client that buys the product with
context, marketing draws attention to the responsibility for the future, which means
change of consumers and producers that he choose between all the alternatives
mentality and behaviour, in order to assure offered, a good product at a fair price, of a
sustainable development. It is obvious that, quality that makes it lasts longer, he informs
currently, the consumer shows a high himself about the products origin, growing
requirement in terms of choice and conditions, processing, storage and
consumption of products/services and packaging management, he moves from
becomes more responsible to the short-term shopping to long term shopping.
consequences that its consumer behaviour [1]. It can be said that, a characteristic which
can have on the future of humanity. is manifested more and more obviously in the
Sustainable development admits that human current behaviour of consumption is the
activities are dependent on the natural responsibility under different aspects. On one
environment and tries to outline a hand, the consumer shows responsibility
conceptual-theoretical and legal-operational when he buys with carefulness for the future,
stable framework for decisions making which paying attention to the criteria of choice of
concerns the human-environment report, products/services that comply with the
whether it is about the environment that principles of sustainable development. In this
surrounds us, or the economic or socia context, we can talk about the consumers
environment. orientation towards the quality (of
Our study aims to capture the points of goods/services) which lasts longer and
convergence of studying consumers respects the natural environment. A product
behaviuor with the principles of sustainable that ensures sustainable development does
development, in order to allow the not necessarily have to be perceived as being
understanding and anticipating of both the more expensive. Even if such a product
trends in the evolution of production and would have a higher price, it has the
consumption, and the marketing practices advantage that lasts longer and offers the
adopted by companies and expected by the consumer, ultimately, the posibility of saving
consumers. money, another dimension of satisfaction
gained in agreement with affirming his
Key words: consumers behaviour, values in a new purchasing model. [1] On the
sustainable development, current marketing other hand, the responsibility of nowadays
J.E.L. classification: M31, L1, D70, Q56, consumer aims the influence exerted by him
F63 on the development and the promotion of
sustainable products. Taking into
consideration these trends, companies are
becoming more concerned in shaping a
sustainable development strategy, able to
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satisfy the current and future needs/desires of within generations, ensuring security and
customers, by offering goods obtained in increasing the quality of life of citizens as a
conditions of compatibility with the natural precondition for the preservation of
environment. The increase of social individual well-being". [2] After a few years,
responsability is reflected in the growth of the EU Council adopted on June 9, 2006, the
the economic performance of the conducted renewed Sustainable Development Strategy
business, in a new positioning of the for an extended Europe. In this document,
company on the market and in the increase of designed in a unified and coherent vision, it
customers loyalty. is specified as a general objective, the
"continuous improvement of the quality of
2. Theoretical approaches of the main life for the present and future generations
aspects which characterize sustainable through the creation of sustainable
development communities, able to manage and use
resources efficiently and to exploit the
From the late 80s, in literature and in potential of ecological and social innovation
everyday language, there is the tendency to of the economy, in order to ensure
use the concepts of sustainable or durable wellbeing, environment and social cohesion
development. Though, the notion of durable protection".[2, p. 11]
development was outlined several years ago. It can be said that human development
[1] It seems that the global ecological crisis (regarded as a biological, social and rational
from 1929-1933 was the moment of being) is conditioned by the environment he
emergence for sustainable development, lives in and with which he forms a particular
which was designed precisely as a solution to type of ecosystem [4] In the same time, in
the problems related to improper exploitation Brundtland Report - "Our common future, a
of resources and degradation of the natural key document of sustainable development, it
environment. [2] In the context in which, on is insisted on the urgency to take into account
one hand, we do not have a common point of the ecosystem of our planet. In ecology, the
view of experts regarding the content of the ecosystem means the assembly formed by all
two concepts [3], and on the other hand the living things together with the
taking into consideration the existence of the environment, but also the network of
tendency to use more often, in studies, interdependencies between its elements,
documents and strategies, the concept of which allows life conservation and
durable development, we will use in this development. Thus, we conclude that the
paper, the two concepts, as being whole development of human being, must be
interchangeable. conducted by respecting the natural
The importance of sustainable ecological balance of the planet. [1] Also,
development can be explained by a few when we analyze the human behaviour and
directions of action, which this concept we choose the marketing strategy of the
proposed: harmonizing the three basic company, it is important to keep in mind the
elements of modern life - economic interaction of the factors which determine the
development, social development and consumers behaviour with the natural
protection of natural environment at local, environment.
national, regional and global levels; shaping
a new model of economic and social-cultural 3. The current stage of marketing and
progress; determining changes of mentality, sustainable development
behaviour and structures, which shall be able
to provide efficient and viable development. The theoretical and practical stage of
[1] On what is concerning sustainable current marketing has, for certain, the mark
development, we recall that at the of the technological progress, which
Gothenburg European Council, from June manifested in the last century. [5] It is the
2001, it was adopted the European Strategy one who brought new production
for Sustainable Development (SDD). One of technologies (some of which are less cautious
the general objectives of SSD refers to to the natural environment), fast
"creating a society of social inclusion by diversification and renewal of products, a
taking into account solidarity between and pronounced segmentation of the market, the
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reduction of product life cycle, new can be said, that, today, also the consumers
directions for action from organizations, as make marketing within social media
well as changes in consumers behaviour. platforms, when expressing their opinions
Currently, in marketing, the consumer is and influencing /advising other consumers
studied as a complex human being, with about different offers.[5]
mind, heart and soul energy, who is seeking Taking into consideration these
to obtain from the products/services, that he challenges, for many companies, adopting
chooses carefully, functional and emotional the strategy of sustainable development
satisfaction and, above all, spiritual becomes a requirement for facing a changing
fulfillment. and more difficult business environment, but
Referring to the current stage of this strategy can bring them a real
development - Marketing 3.0, Professor competitive advantage. A US study,
Kotler brings into question the concept of conducted in 2008, including 1254 leading
"creative society", which is based on managers from around the world,
technology, while about creative people, he demonstrates that there is an explicit
thinks that they have a very important role connection between performing the activity
throughout the entire modern society. Thus, following the principles of sustainable
creative people are considered "innovators" development and the results obtained. [5]
because they create and use new The companies which were concerned
technologies, which enable them to become about reducing the negative effects of their
"nodal centres" and, further, they managed to activities on the social and natural
connect the consumers between each other, environment, recorded increases of their
to influence the whole society through their profits and of the share price on the stock,
attitudes and their life style. Other experts see two - three times higher than the companies
the concept of creativity the main element of which were not interested in sustenability.
human civilization development and consider The positive effects of the sutainable activity
creative people to be able to concern are also manifested by customer growth,
themselves about their own improvement, but improving shareholder value and attracting
also to shape the world they live in. [5] reliable employees. The interest of investors
The changes do not stop there. Consumers is more and more directed by the indices that
are becoming more involved and try to show track sustainable practices. Sustainable
their creativity, to express themselves and to indices express the economic, environmental
collaborate. New concepts in marketing have and social impact that a company has on
emerged, thus, the consumer becoming society. The management of the company
"cocreator", "prosumer" or "consumer- must use the strategy of sustainable
actor". [5] development as a source of competitive
If we only refer to what meant the advantage, on long term, which is able to
information technology after 2000: the assure the differentiation from its
increase of the endowment degree with competitors. [5]
personal computers, mobile phones and
internet connection, we can notice a number 4. Changing consumers behaviour
of changes that have occured at the level of
consumers behaviour, too. This new wave Experts from various fields are interested
in technology gave the consumers new in being acquainted with consumers
possibilities of expression, and moreover, to behaviour. There were developed, in
discuss between them. Networks of social different moments, several theories and
dialogue or social media platforms were models which tried to explain what was
created, which rapidly expanded worldwide. going on, especially at the level of specific
Consumers started to influence each other psychological processes of the human being.
more and more, while the influence which Among the best known in the literature, we
companies have, through advertising on the remember: the marschallian model, the
consumer, is decreasing. The development pavlovian model, the freudian model, the
of social media platforms reflects the veblenian model, the hobbesian model. We
tendency of moving consumer confidence, can say about these models that they were
from companies towards other consumers. It created independently, their authors framing
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the consumer behaviour only in the context become aware of the consequences that his
of a science. Specific to marketing specialists future buying and/or consuming acts could
is the concern to approach these theories and have. It is considered that the process of
models not individualy, but in an integrated information/learning manifest during the
manner, making even some adaptations of entire life of the consumer and marketing
them, and, on this basis, they have created contributes significantly in this direction. As
modern and advanced analytical models of main categories of marketing activities which
consumer behaviour. [6] The large number of support the process of information/learning,
concerns of specialists from various scientific we can remember: communication/promotion
fields to figure out the mechanisms of both by classical techniques, and by modern
consumer behaviour could explain the lack of techniques (Internet, social networks),
a universal accepted definition. [7] We retain influencing/changing behaviour with the help
the opinion that for marketing as a science, of other categories of participants in the
the consumer behavior is represented by "all market activity (counselors, prescribers,
the acts of decision taken at individual or opinion leaders), making the customers loyal,
group level, directly linked to obtaining and which determines repeated
using goods and services, in order to satisfy acquisitions/consumptions, but also the
current and future needs, including decision- development of some logical reasoning. It
making processes that precede and determine can be observed that the process of
these acts" [6, p. 154] Most of the times, information/learning is the component that
marketing research regarding consumer influences all the other processes of
behaviour seek to find explanations/answers consumers behaviour. [6] In these
to the following issues: why consumer conditions, marketing has a great
choose a product/service /a place/a time or a responsibility in terms of information
brand/a company; from where, how much delivery and the way consumers process it.
and how often he buys; who informs and [8]
influences him in making purchasing The learning process shows changes
decisions; which are the reactions after taking place regarding consumers behaviour,
consumption, but also many other issues that as a result of the experience gained from his
the consumer does not want or can not actions. Learning theory specialists say, that
express them. The shaping and action of utmost, humans behaviour (implicitly the
consumers behaviour is the result of the consumers behaviour) forms itself by
synergetic effect of the action of two major learning and not instinctively [9] In turn,
categories of factors: endogenous (related to learning is often an unconscious process of
the human psyche) and exogenous (those accumulation of knowledge and skills
who act outside the human being). In this development, gained through experience
context, for the consumers behaviour [10]. For the marketing activity, learning has
research, in marketing, the focus is on the a well defined importance and is used as a
interdependence of perception, information, technique of influencing and changing
attitude, motivation and actual behaviour consumers behavior. It can be said that
processes. Each one of these has a well someone has learned something if, as a
defined importance, but for the topic result, a change of behaviour occurs.
developed in this article, we consider it "Learning is defined as the sum of behavioral
appropriate to present, in particular, the changes that occur in time, as a result of
information/learning process. In the current conditioning with the help of an external
stage of marketing development (3.0) it is stimulus" [10, p. 70] On what is concerning
recognized that we address to a more the study of the learning process, it is
educated, more informed, more demanding considered that there are two approaches: one
consumer, who is more connected with his based on the stimulus-response relationship,
peers and more involved to collaborate with which involves the classical and the active
organizations to create value through conditioning, while the second refers to the
cocreation of products and services. [5] The theories of knowledge, and in this case, the
process of information/learning includes all conscious thinking holds the important role.
the elements which helps the consumer to The classical theory of learning belongs to
know better the products/services and to the Russian researcher Ivan Pavlov. The
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classical conditioning he demonstrated in the marketing actions are oriented, on one hand,
case of a dogs behaviour is also valid in the towards knowledge, anticipation and
case of people and is intensively used by influence of consumers behaviour and, on
marketing practices. [10] Thus, repeated the other hand, towards developing offers of
dissemination of advertising spots determines products/services that ensure sustainable
the consumer to associate, for example, a development. In this context, it becomes
certain song with a product/brand and to increasingly important the concern of
react. In the case of active conditioning, it is companies to combine properly
taken into consideration an active behaviour promotion/communication techniques, in
of the consumer, meaning that through order to inform/teach the customers and to
repeated actions, he is trying to achieve either improve economic and social performance.
a desired effect or to avoid an unpleasant
situation, so he is able to influence the 6. References
answer. Active conditioning can be used in
the purpose of making consumers loyal. Both [1] Baddache, F., Le developpement durable au
the classical conditioning theory and the quotidien, Editions Eyrolles, Paris, 2006
active conditioning theory believe that the [2] Ministry of Environment, Waters and Forests.
National Strategy for Sustainable
learning process is made automatically. In
Development at the horizon 2013-2020-2030.
contrast, the cognitive learning theory Available at
accepts that learning is a complex and <http://www.mmediu.ro/beta/wp-
conscious process. For marketing, this theory content/uploads/2012/06/2012-06-
draws the attention that it is important to 12_dezvoltare_durabila_snddfinalromana200
know not only "what" the consumer learns, 8.pdf> [PDF] [Accessed February 20, 2015]
but more importantly, "how" he learns. [3] Jugnaru, I. D., Politici i strategii n turismul
Knowing the mechanism of cognitive mondial, Editura Expert, Bucureti, 2007
learning is useful in anticipating [4] Mihu, A., Antropologia cultural, Editura
reactions/answers/changes in the consumers Dacia, Cluj-Napoca, 2002
[5] Kotler, Ph., Kartajaya, H. and Setiawan, I.,
behaviour. [10]
Marketing 3.0: de la produs la consumator i
la spiritul uman, Editura Publica, Bucureti,
5. Conclusions 2010
[6] Teodorescu, N., Comportamentul
It is obvious that the current structure of consumatorului, n Marketing. Dicionar
the market conjuncture causes changes in the explicativ, Editura Economica, Bucureti,
consumers behaviour. In the marketing 2003
research are addressed in a systematic [7] Jugnaru, M., Teorie i practic n cercetarea
manner, issues related to the knowledge of de marketing, Editura Expert, Bucuresti, 1998
the factors that determine consumers [8] Datculescu, P., Cercetarea de marketing,
Editura Brandbuilders Grup, Bucureti, 2006
behaviour, viewed individually but also in
[9] Kotler, Ph. and Armstrong, G., Principiile
groups, in an interdependence with the offer marketingului, Editura Teora, Bucureti, 2008
(current and future) of products and services. [10] Blythe, J., Comportamentul consumatorului,
The settlement on the principles of Editura Teora, Bucureti, 1998
sustainable development of the production
and the consumption acts as a mandatory
requirement for all categories of participants
in the market activity. Marketing specialists
have realized that they can not conduct
profitable activities anymore, unless they
offer value to the customer and come up with
solutions to societys problems. Sustainable
activity must become a component of
competitiveness and a positioning strategy of
the company.
Consumers behaviour, resulting from the
interdependent action of a large number of
factors is in a permanent change. Companies
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Lzrescu Caius
Vasile Goldi West University Arad, Romania
caius.lazarescu@yahoo.com
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4. Target group in marketing strategy migration of staff, and banking operations for
countries with bank post. Development on
corporate strategy - economic financial transactions is a goal of the highest
development of industry and services and had international for to ensure the transfer of
great influence on postal services, the money from citizens working abroad and
emergence and rapid growth and their families.
diversification of commercial mail, Providing people with money transfer
messaging and money transfers. services can only be achieved by the national
Development of commercial postal service provider as it serves the entire
correspondence and private correspondence national territory.
led to the development of postal equipment Services are the most preferred financial
industry: machinery stamped mailing transfers of population and can be achieved
machines (mechanically stamped) letters, with the lowest expenses if a general
letter sorting machines and complex financial strategy that includes a strategy of
machines that perform several operations multiple cash to the central post office.
printed: printed, inserted into envelopes, The rural population largely benefit from
letters sorted on localities and distribution the services provided by banks in the nearest
distances. With such facilities the marketing town.
people can offer: A post office treasury strategy must
a full service package of operations include the operations of financial receipts
given the fact that the sender is required to from the public in order to provide the
prepare correspondence were a package. necessary cash, otherwise these services can
Example if the electricity supplier is the be provided with high costs.
largest supplier of utilities, it is obliged to Trade strategies by mail is a new global
prepare correspondence: strategy which seeks the elimination of
printing bills put them in an envelope disparities between urban and rural areas and
and submit them to the postal unit is obliged addresses the interests of producers of goods
to take to put mechanical stamps to sort and that can penetrate the rural areas where there
distribute. If an inherently separate are shops and interests of rural population
preparations of irregularities and requires which may have access to desired goods.
more time. For such a negotiation marketing For the development of trade may be
people must consider: marketing supplies: provided by post service packages complex
paper and envelopes, the labor of preparing comprising several benefits: Example the
the sender and postage. post can provide for a supplier of goods by
a package containing: presentation and registered mail distribution catalogs, leaflets
distribution of electricity bills and collecting or any material advertising the sale of a
their commission. product, the same service can receive public
individuals - in policies do not receive goods orders from the specific formulation.
marketing strategies for individuals, this Through messengers service distributes
being considered as a drawback in times of the product requested, and the population
crisis as large consumers of postal services through service delivery mandates levied the
except utilities were affected by the crisis, a equivalent property. These new service type
phenomenon that has been passed to service is coming and in support of the urban
providers postage too. population in small towns or big cities.
The economic crisis has drawn two clear Presentation of postal services has been a
directions for the universal service provider, subject of study for all countries because the
mandatory strategy for individuals not only presentation schedules were downtime or
as a backup strategy but as a strategy aligned poor load. On the other hand, the volume of
fore and UPU strategy aimed at developing items submitted to a 8-hour period was
financial services and trade via email. limited to these.
The strategies should include individuals Technical solution was the installation of
insured packages or package service vending machines (office move) to the post
operations. office to carry out operations presentation 24
Financial strategies aimed at both hours 24. These cutting-edge technologies
financial transactions are multiplied due to met and provided that access to information
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24 hours in 24 this was much time provided economic purposes or in the courier system.
by the letters street mailboxes and public Recorded correspondence in the period
telephones. 2012-2013 by number of 522.927.587 pieces
New technologies have enabled (fig. 3) references representing a 68,09%) of
customers to buy stamps -and the street the total postal traffic (564.258.934 pieces)
jukeboxes for franking letters and modern and 92,68% of the internal postal traffic
electronic letters can foe stamped and can (reference 530.106.224).
execute operations. Romanian mail recorded the highest
Liberalization of services, emergence of traffic in delivery letters.
new postal operators particularly those In this situation it appears clear that
specializing requires universal service Romanian Mail is the market leader, but this
providers to retain services in this area and position is not a conjectural due to marketing
therefore this category of customer portfolio strategies.
such items are the highest costs and to The requirement to ensure access to
mitigate them by increasing the number of communication is only universal service
references mandatory task for managers on provider who is authorized and entitled to
facilities and services for marketers to make collect the difference in costs between the
these attractive. income received and expenses incurred.
This obligation should be approachable
5. Postal services in marketing strategy price charged in our country such a rate is
1leu/letter of first stage of gravity, their
Postal services have evolved and distribution costs being very high especially
diversified in their entire society, stemming in rural areas.
from the status of monopoly services are self- The financing of the universal service is
funded postal tariffs are maintained governed by the international forums and is
unchanged for years without having to set only for the designated providers of
register losses since the economy was stable private providers are not interested in that
and there was no competition. class because they can't charge the cost
Case study according to (ANCOM) difference.
National Regulatory Agency for In this volume of shipments are included
Communications and data collected from and the particular ones that fall within the
a post office in pursuit of a case study on the scope of universal service and are not
important services offered to the public: highlighted nor pieces or social
registered mail, messengers, express mail and environments, urban and rural areas where
financial services. the costs are very high.
mailing-service study on the The absence of this evidence clearly
correspondence is divided into two areas: shows that are not highlighted by the
private correspondence that provides Romanian Post C.N. F.S.U. no records are
communication and commercial not set any cost benefit to claim the
correspondence. difference in costs in order to eliminate
Private correspondence is an essential losses.
element of human communication, every
country has the obligation to ensure access to
the communication and the government must
ensure that the supplier's facilities for the
purpose of alleviating the costs.
In Romania the Universal Service
Provider - the national company Romanian
Mail - mail provider is simple, even if
working under the status of the economic
function of channel of communication should
be maintained with the obligation to ensure
access to information at affordable prices.
Commercial mail is both mail businesses
and private correspondence sent for
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Figure 3. The evolution of mail letters during Figure 4. The evolution of mail messengers
the period 2012-2013 during the period 2012-2013
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specific policies and by marketing to market delivery (COD); Western Union cash
development from urban to rural areas. collection: utilities; Telecom, credit rates,
various.
Figure 5. Development of the express
services during the period 2012-2013 6. Study Case
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Luca Florin-Alexandru
Technical University Gheorghe Asachi of Iasi, Economics&Marketing
afluca@ymail.com
Filipeanu Dumitru
Technical University Gheorghe Asachi of Iasi, Economics&Marketing
filipeanu@hotmail.com
Cnnu Mihaela
Technical University Gheorghe Asachi of Iasi, Economics&Marketing
mihaela_cananau@yahoo.com
Abstract 1. Introduction
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The internal communication within the the information differs from the sender to the
organization, particularly when the message receiver [5].
is sent vertically, top-down, is carefully However, no organization can function
analysed by the receptors, regardless of its independently, even if fixed internal rules are
forms of presentation [3,20]. established in order to pursue a productive
The employees perceive communication and efficient activity [16,19].
as signals, which can be sent verbally, in On the other hand, there is a global
meetings, conferences, presentations, or context to which every state or private
nonverbally, transposed by means of facial institution must adhere in order to make their
mimicry or gestures, as well as in written products known [17].
form: directives, orders, decisions [1,7,17]. Market research is virtually one of the
Therefore, the accuracy of the content of most effective instruments for an
the message and of the channel through organization to realistically promote its own
which it is sent is of particular importance products [11].
[11]. This objective is part of the strategic
An unclear, ambiguous message can external communication, which is absolutely
create frustration, dissatisfaction, a generally indispensable to any institution which sets
tense atmosphere which, understandably, out to operate and develop following modern
cannot entail efficiency at the workplace performance standards [19].
[10]. On the other hand, in a society
This is very important to realize, and to undergoing constant change, both internal
abide by, given that, even in the case of and external communication techniques
performant communication, problems of ought to be reconsidered in order to ensure
message perception can occur due to the the consistency of the major objectives of the
level of training of the employee, to his/her organization, so as to clearly identify the
level of culture, character and behavior [20]. aims and needs of the organization they are
Organizational experience has shown that representing [3,8].
there are people, not necessarily few, who, One thing is clear: communication must
before focusing on understanding the not be perceived as an end in itself. Its
message, they either question its importance existence cannot be perceived as self-
or its good faith. Those who "know it all" subsisting, excluding a general policy the
also belong to the category of reception orientation of which is leading towards the
errors [8.16]. achievement of the desiderata of the
They are those who either take words out organization [5,15].
of someone elses mouth, with phrases such It is perhaps for this reason that the
as "I knew that", or jump to hasty institution in itself and the communication
conclusions before the message has been established must be accepted as absolutely
communicated in its entirety. Others hold on necessary instruments, intertwining and
to a specific issue, unable or effectively complementing each other, being two
refusing to listen until the end [12,14]. different entities at the same time [14].
These are some of the most frequent This is also the reason why, as it was
communication errors which we encounter demonstrated by numerous studies,
within various public or private institutions. organizations must be intercommunicable
[4] and the communication must be organized
Even if such communication errors are [20].
more visible in state institutions, they also
exist in the private sector, only that in this 4. Results
context, of a restricted competitive system,
employees control their reactions better, Commencing at the individual level and
especially in bottom-up communication, moving onto the organizational level, each of
when the message is sent to the leadership these two entities have established,
[13,15]. throughout their existence, two types of
Taking these matters into account, it is communication: internal and external
safe to state that the quality and content of communication. The research carried out
shows that most of the formal channels of
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internal communication in private institutions One of the facts revealed by this research
were deliberately created, through a formal is that this type of communication does not
system of responsibilities, so as to establish function according to the role assigned to it
and respect the hierarchical structure of the and it is often the case that the relationship
respective institution. between departments is artificial, simulated.
This type of formal communication is On the other hand, even in such situations,
designed to send information both vertically, the respective departments do not act
from the management to subordinates and the independently; their work is most often
other way around, from subordinates to the mediated by the managers of the institution
management, as well as horizontally, and the considerations of the employees
between employees and departments with the working in these departments are constantly
same rank. overlooked.
In the case of state institutions, the Another item that has been monitored in
communication on the horizontal level is this study regarded the manner in which
either absent altogether or it is too slow and informal communication takes place in the
often ineffective. This is explained by the institutions concerned. Usually, informal
fact that in some state institutions, horizontal communication is spontaneous, created
communication is exclusively limited to outside the official channels of information
informal channels, with no feedback, which transmission. It is present in absolutely every
can decrease the accuracy of the messages organization and functions on a permanent
sent. basis; it is the kind of information along the
The vertical communication, from lines of "rumors", "gossip", "have you
management to subordinates, typical of most heard?"
of the organizations targeted in this study, It cannot be eliminated but it can be
was confined to sending precise directives countered by a strong and sound formal
and orders for each individual or department. communication. If the informed employee
Only in some of the private organizations gives correct feedback of the information
studied it was habitual to have periodic received, the employee lacking the
communication in which the staff presented, information provided by means of the official
either directly or through individuals channels of communication will make his/her
professionally authorized to do so, the own unfounded assumptions, based solely
company policy and the short-, medium- and his/her personal wishes and needs.
long-term aims and strategies. On the other hand, the informal contacts
On the other hand, in order to have a are the ones that improve the contact between
feedback regarding the top-down employees. Despite the fact that this mode of
information, it is necessary to also establish a communication is unprofessional, amazingly,
bottom-up communication, from the it reduces tension within the organization,
employees to the management of the giving a sense of a very large family.
institution. In this way, the effect of the The ability of a good leader to use both
communications sent to employees, the channels of communication with maximum
extent to which they have understood the efficiency, both in terms of rigor of the
messages sent, can be best perceived, which formal and the flexibility of the informal one,
can have a double effect: either the intervenes in this case.
employees have a sense of the fact that they Usually, every manager, whether of
matter within the respective organization, or public or private institutions, must have a
protests or smoldering discontent, most often communication plan containing a series of
due to lack of information, can be nipped in well defined steps at all times.
the bud. The organization plans must take into
On a different level of communication, account both the human component who is
even though it apparently does not have the in charge of what the work stages and the
same impact in the organization, horizontal time frame in which they will take place, the
formal communication is extremely funds allotted, the potential problems that
important due to the relationships that it might be encountered.
establishes between departments, especially These stages can be set by all the teams
if these are independent of one another. involved in development, in all directions of
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software that ansure the information used at Chamber of Commerc and Industry re
processing. Microsoft Windows and Slackware Linux.
Having an activity oriented to offering Application programs used by the
specific services, the content of information information system of Chamber of
basis of Chamber of Commerce and Industry Commerce and Industry are of two types:
from Brasov may be grouped as following: local programs of equipments and network
for the supply activity, for supplying programs of the servers. Local programs are
services, for marketing, for accounting, for Internet Explorer, Google Chrome, Microsoft
research and development. Office and Mozzila Thunderbird, graphic
The main services offered by the programs like CorelDraw X3, Abode
Chamber of Commerce and Industry from Photoshop C7, Adobe InDesign C7. Network
Brasov are: assistance and consulting in programs are WinMentor and Legis.
economic field, professional formation, A part of network programs are spcific
commercial arbitration, general economic applications for the activity of Chamber of
information and other intermediary services. Commerce and Industry of Brasov, used
All of these are reflected in the components within a single interface, Intranet portal.
of the information system. The portal was creted, partly from the
The information system is composed by: necesity of many applications needed to be
information databases, hardware component, used simultaneosly by many people an
software component, methodological and because of the necesity to a better
scientifically basis, human resources and management of information at every decision
organizational framework. level, the necesity to adapt the software to the
chamges in information technology.
Figure 2. The general structure of The logical scheme from the point of view
information network of Chamber of of data basis uses, of the relaions between
Commerce and Industry from Brasov them is presented in figure number 3.
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Malania Elisabed
Professor of Caucasus International University
emalania@gmail.com
Kochlamazashvili Lela
Professor of Georgian Technical University
Business Engineering Faculty
Bemo_1954@mail.ru
Kandashvili Teimuraz
Professor of Georgian Technical University
Business Engineering Faculty
temurkandashvili@yahoo.com
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Production of dairy foods is one of the According to their origin, milk products
essential components of food industry. are divided into two groups: cultured milk
People consume different dairy products on a and dry milk products. Yogurt is a condensed
daily basis: butter, cheese, cottage cheese, cultured milk product distinguishing itself
milk, etc. Since consumption of these with high content of dry, non-fat substances
products is necessary for health, the demand of milk. Kefir is renowned for its best
on them is growing increasingly everywhere absorption quality for a human body, higher
worldwide. Dairy farming has shifted from than milk, since cultured milk products, due
small dairy farms in villages to large-scale to their taste and smell better stimulate the
dairy husbandry and become an important secretory function of the gastrointestinal
industry in the entire field of agriculture. tract.
Dairy factories of today are equipped with Cream, for its high content of fat, belongs
the state-of-the-art technical devices to the calorie-rich products. Sour milk or
producing a rich assortment of milk products matsoni is a Georgian national cultured milk
and are striving for meeting the growing product, which actively participates in
consumer demand to the maximum of it. digestion of food, vitamin synthesis and
Dairy market of Georgia is one of the extraction of various toxins from the body.
largest in the country. Milk is the product Cottage cheese and products of curds are
which, due to its nourishing value, is capable products received in the result of condensing
of replacing any food product, although it pasteurized milk and removing serum from
cannot be replaced by any other product. It it. Easily consumable proteins, fats, minerals
provides all the necessary for the human and other biologically active mixtures
body substances that are represented in their contained in curds and curd products give
best proportions and in the easily consumable them high nourishing value.
form. One of the most popular milk products is
The history of milk consumption dates cheese, which is the serum-deprived outcome
back in the times B.C. Many a centuries ago of sedimentation after fermentation of the
Egyptians, Romans and Greeks put it to their special ingredients through condensation.
service both as a food product and as a The sediment is collected together into a ball-
medicine. To different sorts of milk like mass which hardens after chilling. The
Hippocrates attributed different curing sorts that are most popular in Georgia are
abilities; For instance, the goat and horse sulguni cheese, Imeretian cheese, guda
milk was prescribed for tuberculosis cure, the cheese, melted cheese, factory-produced
cows milk to cure anemia and other cheese and more.
diseases. The great Arabian scientist Dry milk products are produced in the
Avicenna, living around a thousand years ago condensed or dry form. Dry milk products
considered milk to be the best product for are milk powder, dry cream and condensed
elderly people. The outstanding doctor of the milk.
20th century M. Botkin saw milk the best cure
for the heart and kidney diseases. It has been 4. Manufacture of dairy products in
established that milk positively influences the Georgia
nervous system.
The cows milk contains up to a hundred Due to the severe competition prevailing
essential components that are necessary for in the business of dairy industry, small and
normal human development. Proteins, fats, medium businesses are under high pressure.
sugars, vitamins, minerals, ferments and Some factories, depending on largeness and
other substances are the main ingredients of scales of the firm, are not able to ensure
milk. profit gaining in the main segment. The
In these days it is possible to produce attitude in which an enterprise aims at
more than 20 sorts of drinking milk. The creating a brand of its own and strengthening
sorts differ with their content of fat and the its positions in the premium segment setting
thermal treatment endurance. The types of long-term prospects for these, provide better
milk are: drinking milk, boiled milk, protein chances for gaining profit. Success of a brand
milk, sterilized milk, vitamin-enriched milk. is tightly connected to the position it holds in
the market. Although it should also be
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mentioned that the market cannot boast of located in Tbilisi, is provided with modern
sufficient number of brands, notwithstanding European technologies and equipped with the
the afore-said. state-of-the-art machinery and devices.
As we have mentioned it above, most of The first stage of production was marked
the milk products produced in Georgia are with the Soplis Nobati brand products,
made of imported milk powder. Production such as pasteurized milk, sour milk, kefir and
of natural milk requires considerably higher sour cream, curds and yogurts. Soplis Nobati
expenses and therefore, producers choose to presents its products to consumers in
use cheap milk powder. In the country where innovative packing making both consumption
food control has to rely on a good will, the and keeping of them simpler and easier.
consumers were supplied goods made of milk The milk appearing in the Georgian
powder, often sold for the natural product. markets during the summer period is awaited
Since 2010 all producers were both by the dairy companies and individual
obligated to write using large font made of enterprisers with equal impatience. Using this
natural milk or made using milk powder milk, they make cheese without any
on the cream, curds, sour milk or matsoni, procession and pasteurization and this cheese
butter, cheese, yogurt and other products is later sold in the same local markets.
made of milk. This is the requirement of the Demand for milk here is high throughout the
Law on Consumer Rights, the relevant year, although Georgian cattle breeding is not
change to which became effective as of developed sufficiently to meet such demand.
January 1st, 2010. The writing reading the
mentioned, needs to be provided in easily 5. The research of dairy products market
visible and readable manner.1 in Georgia
At present there are up to 15 companies
working for the dairy market and all of them The relevant survey has revealed it that
are involved in high competition. Companies these products are subject to seasonal
Eco-Food and Sante are deemed to be the changes. Depending on the natural and
leaders of the market. According to them, weather conditions, the high milking season
they share approximately 45-45% of the lasts from May to August, going on a slow
market, whereas the remaining 10% is left for decline afterwards and over the December
Sando, Kobuleti Dairy Factory, Wimm-Bill- April period is decreased to 40%.During the
Dann and other companies. The company low season farmers use the milk for their own
Sando, on the other hand, claims that it holds needs and home milk sells for the maximum
about 10-15% of the market. The great price in this period.
majority of the companies make their Factory-produced milk does not depend
products almost completely of milk powder on the seasons and its cost as well as the
imported from foreign countries, mainly from volume is stable throughout the year. It
Belorussia and Ukraine. This is both cheap should be mentioned that the milk factories
and technologically much more convenient themselves encounter problems in buying
for the companies. Now the companies were milk which practically cannot be obtained
faced with the choice they had to make: buy from December to March. The amount of the
natural milk from local farmers and provide milk bought over the months of May June
the labels on the products that would be is maximal, but from August to November
profitable for them or make their products the amount gets decreased twice. The milk
using the cheap imported milk powder and factories suffer a harsh deficit of milk and
have the labels on their products promising substitute it with imported milk powder.
no success to them. The surveys conducted by us (100 persons
From November, 2009 affiliated to surveyed) have demonstrated that 86%of
Russian Wimm-Bill-Danncompany in those surveyed were dairy product
Georgia Wimm-Bill-Dann Georgia started consumers, while 14%did not use them in
dairy production.2The industry which is their diet at all. Sante and Eco-Food with the
corresponding 43%and 14%respectively are
1
www.ambebi.ge the mostly bought brands out of the local
industries. Since dairy products are daily
2
ww.economy.ge consumables, the area and conditions of the
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Mateescu Mihaela
CEIS, Romanian Academy
mateescuadina@yahoo.com
Muscalu Sabin Mihai
CEIS, Romanian Academy
msmuscalu@yahoo.com
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to the technical elements of the offer, the the accessibility to the new products or
mechanical characteristics (e.g. a physical services, in particular in terms of costs.
pleasant environment) and the human Continuously Creating Innovation
characteristics (that is the behavior and look Adaptive Strategies. The strategic innovation
employees). The particularities converge in is creating growth strategies, new product
creating a complex customer experience in categories, services or business models to
terms of the quality and value of the offer. change the game business and to generate
The management experience provided by the significant new values for the customers. The
client is relevant to the creative market companies must trust the employees, to
innovations, but not in the case of the stimulate and to transform them into adaptive
inseparable services. innovators to identify and to accomplish a
Investment in the employee performance. continuous flow of innovation.
It has been observed that the efforts of the
employees in the services has a significant 4. Role of the market in the service
impact on the customer satisfaction. The innovations
success of the service innovators occurs
when investing in continuous training of the The market is the environment where
employees in terms of education and training each company makes its own experiments
in the field. with the new products.
Continuous improvement of the The processes occurring in the market are
operations of service innovators. The services competition and trade. The market regulation
are operations consisting in accumulating of is made by the legal framework, the formal
hard work and capital, regardless of the type rules of exchange, the informal rules and the
of benefit and the degree of separability of routines [21].
the service. It is difficult to catch the service The market establishes the rules and the
innovators continually improving the competition environment and influences the
operations. behavior of firms and the consumers in the
Build Strong Brands. A strong brand is innovation process.
important for the service innovations The market evolution can be disrupted by
especially for innovation by applying flexible both the endogenous factors determined by
solutions. In the case of new services, the the players and the market exchanges and the
customers are faced with an increased risk exogenous factors resulted from the market
because they must assess an unknown core regulation and the competition.
benefit. The provision of the reliable basic The main players of the market are the
services and the finding of the ways to producers, the intermediates, and the
connect emotionally with customers help to consumers of goods and the institutionalized
build strong brands. actors (the institutionalized organizations, the
It is necessary an incentive to innovation. public sector and the government having the
All types of innovation requiring a resources role in the market regulation through the
incentive can have new ideas and lead the legislation).
transformation of ideas into a reality of the Sometimes the radical service innovation
market. requires the establishment of new institutions
Provision of clear solutions at customers or market element which, of course, will also
request. The innovations can create new benefit other companies [22].
markets if they offer clear solutions to the The main incentive of the service
important problems of the customers (e.g. innovation is the market with all knowledge
saving time and effort) and if they can flows resulted by conecting the players
persuade the customers to try the products or belonging to the structure of this market.
the services and then to repeat the action The market orientation of the service
giving a favorable verdict. firms often affects the innovation, the market
Creating conditions to increase the company and the financial performance.
customer accessibility to the new services. A customer orientation of the service firm
The creating of the new markets requires the often leads to incremental innovations, while
clients desire to modify their behavior and a competitor orientation of this firm may lead
to more radical innovations.
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interactions
Product / Service
6. Implement 1.4 Test Data 4.Receive Information
(Criterias) 3.Send to Client Category
Send Product / Service Criteria
Tests Samples to be FulFilled
1.Choose Category
1.5 Test Scenarios 5.Send to the MRK Platform Offer - to be
Client Agent MRK Platform
Offer Customized by the Agent
Source: [17] Client
customized by user
6.Receive the Client
8.Receive the Customized Offer
Customized Offer 2.Select Product /
4. Modeling a Marketing Communication Customized Offer - to be sent to a
Group of Clients
7.Send to the Client Servicefor the Offer
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It will have a certain period of time. If the 2.1 Define architecture in general, most
client doesnt send his preferences about the of the modern business - oriented software
product, the MPA will send a new message system are built on three layer, respectively
to the client, considering the client for the technological layer, application layer and
next round. business layer. The technological layer will
assure the needed infrastructure that will
Figure 3. Use case diagram with details support all the application and business
for obtaining process of a customized offer process. For the proposed marketing
for a group of clients. communication platform, the technological
uc Use Case Model
architecture is shown in Figure 5. It was
Obtaining the Best Offer for a Client Group
modeled by using Archimate modeling
Establish a
Connection
language and comprises an infrastructure
Selecting hte
component that has a system software
Product / Service
Send the Criteria for the installed and also the marketing platform. A
Product / Service to the
Client component is also installed, component that
Client Agent
Receivce
will be useful for the multi-agent system. In
Criteria
Fulfill the Criteria MRK Platform Agent
general, such component is a multi-agent
plug-in or platform that offers several
Sent to the MRK
Platform Agent
facilities for the agent like sending messages,
protocols, communication and negotiation
Receive the
Time Restriction
Customized Offer
from the Client
strategies, etc. The platform administrator
Create Client's Notification
Profile Group of a Product / must to deal with two interfaces (the main
Service
Create Customized Availability one and a specific one for obtaining clients
Offers for Groups
profile and customized offers). The client has
Send Customized to use an interface for subscribe tie
Offer to a Group of
Clients via Email preferences about the desired product /
service. After he finishes fulfilling the form,
he sends it to the MPA. Based on all fulfilled
Figure 4. Activity diagram showing the forms from all the clients, MPA build
steps need to create a customized offer personalized offers. The restrictions for the
class Data Model
platform are working internet connection and
Start the client presence in front of the computer
datastore
Send Notification
to Client Figure 5. Deployment architecture
diagram
Send Product / Service deployment Deployment Model
Criteria to Client
User - Agent
Client Fulfills the Criteria Interface
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the relation between interfaces. All the such as agent-based technology in these
classes are Clustering Application, Agent platforms increase the competitive advantage
Client, Criteria, Agent Client Form, Agent of companies that use them.
Supplier Form, Existing Client Form, Main The proposed platform is characterized in
Frame, Criteria Reader, Agent Supplier, that it achieves marketing activities using a
Offer Reader, Algorithm Runner, and Client technology based on multi-agent system and
Criteria Reader. cluster data analysis. The main advantage of
In the main interface there are two the proposed platform is that it uses a
options: to open a specific interface managed minimum of resources (due to the technology
by the MPA (1) and another one that will used), in order to achieve the main goal,
represent the user interface (2). Using the namely to obtain customized offers that can
interface (1), there is the possibility to view be sent via email to the customer or potential
the data clients that have already send their client. Based on these offers, the clients
preferences, according to the clustering response tends to be a positive one. The
algorithm to set a parameter that represents platform is modeled using Model Driven
the division number of the clients, to Architecture, a quite new approach in
compute the personalized offers based on the software development. Several important
clients profile, to send these offer to the aspects were depicted in several digrams..
clients via email. In the second interface (2) As future work, it will be considered to
the client has the possibility to fulfill his combine several data mining algorithms in
preferences and to send them to the MPA. order to improve clients profile and offers
After that, he will receive an email with an details. Also, a device-type based approach
offer that will be very close to his demands. for creating customized offers will be taken
into consideration.
Figure 6. Interfaces diagram offered by
the MRK communication platform 6. Acknowledgment
custom User Interface Model
7. References
3) PSM phase Implement code and [1] http://heidicohen.com /marketing -definition/,
Implement Tests artifacts were not yet accessed 2015
obtained, the paper being a work in progress. [2] http://www.research.att.com/export/sites/ att_
labs/library/documents/licensing_data_sheets
5. Conclusion and future work /marketing_comm_platform_orig.pdf,
accessed 2015
The paper proposes architecture platform [3] Maghami, G., Sukthankar, G., Identifying
Influential Agents for Advertising in Multi-
based email marketing year on the modern
agent Markets, Proceedings of AAMAS, 2012
communication technology, namely the [4] Petric, A., A Multi-Agent System for Content
multi-agent technology based. The main Trading in Electronic Telecom Markets
advantage of such a platform is lying in the Using Multi-Attribute Auctions, Proceedings
fact that email marketing is a tool of AAMAS, 2012
increasingly used, bringing huge profits to [5] Kazienko, P., Multi-agent System for Web
the companies. Also, investments in these Advertising, Springer Publishing House,
platforms tend to grow from year to year 2005
according to statistics, due to their [6] Arumugam, G., Joshva Devadas, T.,Object
effectiveness. Using modern technologies Oriented Intelligent Multi-Agent System Data
Cleaning Architecture To Clean Email Data,
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Moraru Andreea-Daniela
Ovidius University of Constanta
Faculty of Economic Sciences
amoraru@univ-ovidius.ro
Baca Eleonora
Ovidius University of Constanta
eleonorabaca@yahoo.com
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particularly relevant for our present showing a constant ascendant tendency in the
endeavour. In the original paper from 1978, period between 1990 and 2008.
Hall added explicative variables to the 2009 was actually the first year in which
consumption equation compared to its past the effects of the global economic crisis
value and concluded that no other became apparent, with the main indicators
information beside present consumption registering significant decreases. In 2009, the
helps in predicting future consumption [5]. households actual individual final
consumption dropped by 5.43% and the gross
2. A General Framework for the Evolution disposable income dropped by 2.39%. In
of Consumption in Romania 2010, both indicators recorded growth,
slightly surpassing the levels recorded in
Following the dismissal of the communist 2008, while 2011 recorded further growth,
party in Romania in 1989, the country started showing a positive evolution.
a long and burdensome road of transition to
the market economy. The slow rhythm of the 3. The Methodology of Research
reforms initiated by the political forces in the
1990s many times doubled by the The Objective and the Hypotheses of the
inconsistency of public policies had negative Research
effects on the Romanian economy.
Only after 1999, recorded the Romanian We took into account the notion already
economy promising results. In 2000 there present in the economic theory that
was recorded a growth of 1.6 percent in sometimes past economic events have a
GDP, after 3 years of consecutive decrease. lasting impact and therefore influence the
Also the inflation rate, the budget deficit and current economic equilibrium. We presumed
the unemployment rate showed positive then that although the economic crisis
evolutions [6]. The priorities of the economic determined a decrease in disposable income
policies following the year 2000 aimed at the consumption might not follow the exact
achieving the objectives imposed by the EU same pattern. Our purpose was to determine
accession. The sound economic evolution how strong is the dependence between
during the period between 2000 and 2006 led consumption and previous income level and
to the EU accession on January 1st, 2007. wealth in the case of Romania. We examined,
Starting with the second half of 2007 the in other words, the possibility that
world economy has been reshaped by the consumption might not be strictly determined
global crisis. Among the emergent countries by current economic conditions, but also by
with high external deficits, Romania was previous ones.
obviously affected, the crisis effects, being In our empirical study we collected annual
visible starting with 2009. In 2007, Romania data for households actual individual final
started the process of reaching the nominal consumption, households disposable income
convergence criteria for adopting the euro, and wealth approximated in this study by the
and the positive economic developments in monetary aggregate M1, for the period
all European economies and Romania in the between 1990 and 2011. We formulated
period between 2000 and 2006 created several hypotheses in order to determine
optimism about Romanias ability to enter whether consumption is influenced by both
ERM II in 2012 and maintain the long term current and past economic factors, and
exchange rate stability followed by meeting subsequently developed single and multiple
all criteria of nominal convergence. factor econometric models to test these
However, the endeavours made in this hypotheses.
direction were hindered by the significantly
different economic, regional and global The data
geopolitical conditions, and reaching this
goal will involve greater efforts [7]. The modelled variable in our study was
As far as consumption is concerned, its the households actual individual final
evolution in Romania is in concordance to consumption which according to the
the general economic situation of the country, methodology of the National Institute for
Statistics, consists of households expenditure
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on purchasing goods and services in order to final consumption and gross saving. The time
directly meet the individual needs of resident series in millions of lei in 1990 prices was
households members, government stationarized by calculating the first
expenditure for individual consumption difference.
(education, health, social security, welfare, In order to approximate wealth the
culture, sport, recreation, collection of monetary aggregate M1 in millions of lei
households refuse) and final consumption (year 1990 prices) was used. The sources for
expenditure of non-profit institutions serving the data were the monthly and annual reports
households for individual consumption issued by the National Bank of Romania
(religious organizations, trade unions, between 1998 and 2011. The time series in
political parties, unions, foundations, cultural millions of lei in year 1990 prices was
and sport associations) [8]. The time series in stationarized by calculating the first
millions of lei in year 1990 prices was difference.
stationarized by calculating the first The processing of the data was conducted
difference. using E-views Enterprise Edition 7.0.
The first independent variable used in the In order to summarize the set of
research was the gross disposable income (Y), observations a summary statistics was
which is the balancing item of the income conducted and the results are presented in
account and measures the part of the created table 1.
value at the nation's disposal intended for
The variables of interest are correlated income (0.97) and with M1 (0.68), while
with one another. In table 2 there is presented income is positively correlated with M1
a pair-wise correlation matrix showing that (0.75).
consumption is positively correlated with
4. The Results of the Empirical Research with a1 significant at 1%. The strong
correlation between variables is indicated by
The first hypothesis tested was the most an adjusted R-squared of 0.7064.
simple, that is, consumption is a linear The next two hypotheses were built by
function of disposable income: using the present levels of income and wealth
represented by M1 and their present and past
, levels, respectively.
The equation for the second
and the equation fit the data well, as one may hypothesis may be written as follows:
have easily assumed.
The results are: ,
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6. References
.
[1] Duesenberry, J.S., 1948. Income -
Consumption Relations and Their
The results are the following: Implications, in Lloyd Metzler et al., Income,
Employment and Public Policy, New York:
WW Norton.
[2] Modigliani, F., 1949. Fluctuations in the
with all coefficients significant, a1 at 1%, Saving-Income Ratio: A Problem in
Economic Forecasting.Studies in Income and
at 5%, a3 and a4 at 10%, and a0 at 5%, thus
Wealth (Conference on Research in Income
confirming our hypothesis. and Wealth). New York: National Bureau of
The obtained results show that Economic Research, 11, pp.371-438.
consumption in Romania depends first and [3] Brown, T.M., 1952. Habit Persistence and
foremost on the present income, and Lags in Consumer Behaviour.
secondarily on present wealth represented by Econometrica.20 (3), pp.355-371. INSSE,
the monetary aggregate M1. Also significant Statistical Yearbook. Bucharest, years 1990-
were found both the influences of previous 2011.
income and previous wealth on present [4] Georgescu-Roegen, N., 1950. The Theory of
consumption. Choice and the Constancy of Economic
Laws.The Quarterly Journal of Economics. 64 (1),
pp. 125-138.
5. Conclusions [5] Jessua, C., Labrouse, C., Vitry, D., Gaumont,
D., 2006, Dictionar de stiinteeconomice.Arc
One may easily notice the transformations Publishing House.
occurred in consumer behaviour; they are [6] National Bank of Romania (2000).Annual
obvious and undeniable natural consequences Report.Available from
of an unfriendly economic environment, http://www.bnro.ro/Regular-publications-
dominated by uncertainty. The international 2504.aspx.
studies conducted in this field have revealed [7] Duhnea C., Ghita-Mitrescu S., Vancea
that the crisis has determined the emergence D.P.C., 2012. Euro-Adoption The Illusion
of the Monetary Integration of Romania. CES
of a new type of consumer, more attentive,
Working Papers.2, pp.152-163. INNSE, 20
more rational, and less prone to impulse [8] Monthly Statical Bulletin. [online] Available
behaviour; a consumer looking for substance, at:
for meaning and purpose and determined to http://www.insse.ro/cms/rw/pages/buletinelun
change their buying ways. However it is are.ro.do,arhiva_buletine2012/bsl_2.pdf.
rather improbable for consumers to abandon
their consumption habits once confronted
with budgetary restrictions. It is only natural
to assume they would try to stick to their old
consumption patterns and to maintain their
consumption levels.
This paper attempted to formulate a series
of hypotheses in order to test whether
consumption in Romania is solely dependent
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Munteanu Valentina
Andrei Saguna University, Constanta, Faculty of Economic Sciences
valentinamunteanu@yahoo.co.uk
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supposes on their behalf the existence of a with a low income or the fight against
superior energy. Many entrepreneurs take poverty in the developing countries. These
care of the quantity of energy monitoring entrepreneurial leaders are to be found in all
carefully what they eat or drink, they do a lot types of organizations innovative non-profit
of exercises and they know when to draw organizations, companies with a social target
back to relax. (aim) like banks working to develop the
Creativity and innovative spirit. For a community and mixed organizations, a
long time creativity was regarded as combination of non-profit organizations and
something genetic, something that you are lucrative ones.
born with and you cannot acquire it. One of -They have a precise mission: the main
the most famous theories of the late 20th criteria of successive social entrepreneurs is
century says that creativity can be learned. to create social value, not wealth. Although
Independence: There are two things that the creation of wealth can be part of the
make entrepreneurs to be very independent process, it is not an aim in itself. The
people who want to do things in their way. promotion of a social change is the real
The frustration in front of the bureaucratic objective (goal).
system and the desire to make 'a difference'. -They have a strategic thinking like the
However, entrepreneurs do not take all ordinary entrepreneurs, the social
decisions, they want the public authority to entrepreneurs see and act according to some
take the most important ones. observations the others are missing:
Team work: The desire of independence opportunities to make the system better, they
and autonomy do not stop the entrepreneur to create solutions and find new ways which
want the team work. In fact, while the generate social value. Like the best business
entrepreneur knows clearly where his firm is entrepreneurs, the social entrepreneurs are
(or where he would like to be) the staff is tireless ad focused on pursuing a social
busy with the daily activities of the firm. vision
Managerial abilities: A successful -They are generators of resources
entrepreneur also needs this kind of because the social entrepreneurs operate in a
knowledge to make his business to be social context rather than in the world of
efficient. The entrepreneur is a lead actor and business, they have limited access to capital
a symbol for the market economy. Their roles and to the traditional system of the market
and their contribution became greater. support. Consequently social entrepreneurs
In the modern sense of the market must be very skillful in gathering political,
economy, an entrepreneur is an economic financial and human resources.
agent who adopts an active and innovative -They are result oriented: social
behavior, who deliberately accepts financial entrepreneurs start from the idea to make
risks to develop new projects. Today there is results measurable. These results change the
a read recognition of this sector, mostly due existing realities, open new roads towards the
to entrepreneurs' contribution to the evolution marginalized and the disadvantaged and
of the entrepreneurial sector and due to the starts the potency of the society to generate
influence they have on the macroeconomic social changes.
indicators. We are talking today both about a A social entrepreneur is someone who
competitive entrepreneurial spirit and a social recognizes a social problem and uses
one. entrepreneurial principles to create, organize
A social entrepreneur is a pragmatic and monitor an entity which can make a
visionary who makes sustainable social social change. While the business
changes, systemic and on a large scale entrepreneurs usually measure performance
through a new invention, a more rigorous use in terms of profit and added value, the social
of technologies and strategies already known, entrepreneurs measure the success through
or through the combination of those their impact on the society. Although the
mentioned above. social entrepreneurs often work through non-
Entrepreneurs' characteristics profit organizations and groups of citizens,
- Social entrepreneurs: - are ambitious: many of them work in the governmental and
they confront major social problems, such as private sectors. Social entrepreneurs are
the raise of university taxes for the students people who offer innovative solutions to the
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definitions of internal marketing. There is, of inter-functional conflicts ([7], [8]) through
however, a wide variety of viewpoints communication (for example, by
through which it has been tried to explain as disseminating information and through
exactly as possible the content of this debate).
concept. For example, Taylor and Cosenza Piercy and Morgan [9] consider internal
[2] define internal marketing as a strategy marketing as a course of action that reduces
through which philosophy and marketing tension and inter-departmental or inter-
principles are applied in relation to functional conflicts, and helps to overcome
employees, who have the task of serving the resistance to change. Understanding, privacy,
external clients. Internal marketing may also trust and commitment are, according to
be defined as a process of initiating, Ahmed and Rafiq [10] hey-elements of
maintaining and developing of the internal marketing. Trust, for example, is
relationship between employees, managers important in relationships between
and the organization, with the aim of creating colleagues, as it creates an environment in
superior value for its clients. [3] which conflicts and disagreements can be
Approaching the subject of internal solved in a constructive manner [11].
marketing objectives, Stauss and Schulze [4]
conclude that the objective of internal 2.3. Internal marketing and personnel
marketing is to have motivated and customer- fluctuation
oriented staff. The sub-objectives related to
this main objective are: (1) collecting Personnel fluctuation is an abnormal
information about the employees (for phenomenon which refers to the employees
example about the relevance of the abandment of the company, without the
interactions with the customer); (2) creating a companys management approval, or by
framework for the acceptance of customer termination of employment as a result of
orientation; (3) training the employees to breaking the contract of employments rules
manage customer interaction situations and and regulations.
(4) creating an organizational environment The benefits of internal marketing come
that supports customer-oriented attitudes and from four main sources, one of them being
behaviours. the reduction of personnel fluctuation. Thus,
the reduction of the employees turnover rate
2.2. Internal marketing and organizational will lead in its turn to a drop in recruiting and
conflicts training costs, as well as to a reduction in the
stress level for existing employees.
According to Fril [5], organizational Furthermore, Heskett et al. [12]
conflict is a form of manifestation of the emphasized that a low employees turnover
conflict caused by factors having the origin rate is related to the increase on clients
in the relationships established between satisfaction.
individuals during the work process. Souchon and Lings [13] found that the
Organizational conflict is an objective reality, adoption of internal marketing practices had
as an organization is made up of groups of a positive impact on employees retention
working people with different personalities, while Chang and Chang [14], in a study
mentalities, education, systems of values, and conducted in the hospitality sector in Taiwan,
behaviours. Therefore maintaining a perfect proved that the employees turnover rate has
harmony within the organization is rather an a significant negative correlation with
illusion. internal marketing practices.
The effects of internal marketing on
organizational conflicts have been recognized 2.4. Internal marketing and organizations
from the earliest stages of evolution of this performance
concept. Thus, Flipo [6] considers that
internal marketing may be used to overcome Organizations performance has been
inter-organizational conflicts and to promote conceptualized in three dimensions: financial
an efficient internal communication. Internal performance, business performance and
marketing has the potential of reducing organizational effectiveness.
isolation between departments and intensity Some authors have concluded that internal
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marketing helps to achieve business the company. We have used Beckers [18]
performance through internal customer four items, which were measured by using a
satisfaction. Barnes, Fox and Morris [15] seven-point Likert scale (codified from 7
underlined that the influence of internal Total agreement to 1 Total disagreement).
marketing on organizations performance is The perceived level of organizational
reflected by the fact that internal marketing performance was measured using a scale
role is to ensure that all employees have the taken from Santos et al. [19]. Respondents
necessary skills, abilities, tools, and were asked to evaluate 12 performance
motivation, in order to deliver the promised elements of the firm, compared to the main
value by the company to its customers. A competitors. For the 12 indicators we have
study conducted by Ahmed, Rafiq and Saad used a seven-point evaluative scale (from -3
[1] on a sample of service providers much lower level than the competitors to
companies from Malaysia, confirmed the +3 much higher level than the competitors.
existence of an indirect effect of internal
marketing on organizational performance, 3.3. Sampling and data collection
while market orientation has been identified
as being a mediating variable. The sampling method used within the
present research is convenience sampling
3. Research methodology (non-probabilistic sampling method). The
questionnaire was administrated in person,
3.1. Research hypothesis throughout the interview operators. The
declaring units are represented by people in
Based on the literature review we have the management of the companies.
formulated five hypothesis of research: The reference units are represented by the
H1: Internal marketing has a direct and selected companies from the sample
positive influence on organizational (medium-sized and large companies, i.e. with
performance. more than 50 employees). The sample size is
H2: Internal marketing has a direct and of 83 companies.
positive influence on the intensity of work In order to analyse the sample structure
conflicts. we have used the variables: companys sector
H3: Internal marketing has a direct and of activity, turnover in 2014, and number of
positive influence on personnel fluctuation. employees on 31.12.2014. Out of the
H4: Intensity of work conflicts has a direct samplings total, 53% of the companies are in
and negative influence on the organizational the sector of production and 47% in the
performance. sector of services. From the point of view of
H5: Personnel fluctuation has a direct and the turnover in 2014, 41% of the companies
negative influence on the organizational selected have a turnover between 10,000,001
performance. and 50,000,000 Euro, 39.8% of them have a
turnover between 2,000,000 and 10,000,000
3.2. Measure scales development Euro, and 18.1% have a turnover higher than
50,000,000 Euro. For 1.2% of the companies
In order to measure the perceived level of selected, the turnover is lower than 2,000,000
internal marketing, we used the 15 items Euro. From the point of view of the number
scale developed by Foreman and Money of employees on 31.12.2014, 59% of the
[16]. Each item was measured using a seven- companies have between 50 and 249
point Likert scale (codified from 7 Total employees, 24.1% have a number of
agreement to 1 Total disagreement). employees between 250 and 1,000, and
For the construct Intensity of work 16.9% have more than 1,000 employees.
conflicts we have used the 20 items scale of
Bhat et al. [17]. In order to measure these 3.4. Data analysis plan
items we have used a four-point evaluative
scale (4 Almost always, 3 Often, 2 For the data analysis we have used the
Sometimes, 1 Almost never). SPSS, version 17. The main objective of the
Personnel fluctuation was measured data analysis is given by the testing of the
through the employees intention of leaving formulated research hypothesis. The process
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of data analysis has undergone the following factor analysis for the constructs Personnel
steps: analysis of the reliability of the scales fluctuation and Organizational
used to measure the four constructs; performance, we have reached the
determining the factor loading and testing the conclusion that no factor loading has a value
research hypothesis. lower than 0.5. Thus, all items are kept in the
analysis.
4. Research results
Table 2 Testing the research hypothesis
The scales used to measure the perceived Hypothe
p Result
levels of the four constructs obtained a sis
Cronbach - alpha coefficients of 0.930, H1 0.492 0.000 Accepted
0.915, 0.942 and 0.898 (see Table 1). These H2 -0.216 0.004 Accepted
scales have a level of the coefficient higher H3 -0.425 0.073 Rejected
than 0.7, which indicates that the scales are H4 -0.300 0.150 Rejected
reliable [20]. H5 -0.189 0.005 Accepted
Source: own research
Table 1 Reliability of the measuring scales
alpha - Hypothesis H1 is accepted (p=0.000),
Construct
Cronbach internal marketing has a direct and positive
Internal marketing 0.930 influence on organizational performance.
Intensity of work conflicts 0.915 Hypothesis H2 is accepted (p=0.004),
Organizations performance 0.942 noticing that internal marketing influences in
Personnel fluctuation 0.898 a favourable manner the intensity of work
Source: own research conflicts (= - 0.216). Research hypothesis
H3 and H4 are rejected, the level of
For the four constructs, the values of the significance being of 0.073 and 0.150
KMO indicator are of 0.898, 0.853, 0.892 (>0.05). Internal marketing does not have a
and 0.853 (>0.7), at a level of significance significant influence on personnel
p=0.000 of the Bartlett test. Hence, between fluctuation, and the intensity of work
the variables of each construct there are conflicts does not have a significant influence
significant inter-correlations, which may be on the organizational performance. Personnel
studied through the factorial analysis. fluctuation influences in a negative way
After the confirmatory factor analysis, organizational performance (p=0.005, = -
conducted for the construct Internal 0.189), thus accepting hypothesis H5.
marketing, the item referring to the
remuneration of the employees efforts who Table 3 Coefficients of correlation and
deliver excellent services, has been determination in the case of accepted
eliminated as its factor loading is lower than hypothesis
0.5. This item is not strongly correlated with Hypothesis R R2
the extracted factor, the factor loading being H1 0.378 0.143
of 0.486. H2 0.310 0.096
For the construct Intensity of work H5 0.310 0.096
conflicts, we noticed that the item referring Source: own research
to the system of performance evaluation,
which is seen by many as a deliberate effort In the case of the three accepted research
of compensating promotion amongst hypothesis we can observe the existence of
employees (0.496), as well as the item low intensity relationships (R values of
referring to open and effective 0.378, 0.310 and 0,310). After analysing the
communication among the employees of an values of the coefficient of determination, we
organization cannot be generalized (0.489), can conclude that 14.3% of the organisations
have a factor loading lower than 0.5. performance variation is explained by
Consequently, the two items have been internal marketing, 9.6% of the work
eliminated from the following statistic conflicts variation is explained by internal
analysis. marketing, and 9.6% of the organisations
After we conducted the confirmatory
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Ovidius University of Constanta
nancu_dumitru@yahoo.com
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humanitys evolution. Although logistics the final customer, for satisfying markets
concept was used since the Antiquity by the demands with a minimum cost and a
Greek philosophers, it appeared particularly minimum capital [3].
in the military field. Its first definition was Mid-90s brings to the fore the concept of
given by the General Henri Jomini in the year Supply Chain under the influence of software
1837 within his book entitled A Summary producers offering tools for a more
of Wars Art. According to this definition, coordinated and integrated management of
logistics involves the means and actions the supply chain as a consequence of the
allowing the application of strategic plans; development of TIC and Internet. The Supply
strategy is the one deciding the battle place Chain aims to increase the global
while logistics transports the troops and the performance and to place systematically the
military resources. customer in the middle of the device, as a
In the economic sense, the terms of very important engine [3]
logistics has appeared in studies since the However a definition reflecting the
XIXth century where it talked about the modern integrated elements of logistics
infrastructures needed by the economic concept was porposed by the Council of
evolution. However, the modern concept is Logistics Management (CLM). Under this
due to the knowledge-based economy when definition, logistics is a component of SCM
we are witnessing an explosion of technology and it represents the process of planning,
and information systems. A definition given implementing and controlling the flows of
by The National Council of the Physical materials, goods, services and related
Distribution Management (NCPDM) in 1963, information, from the point of origin to the
includes in logistics, the movement of raw point of consumption, in accordance with
materials from the supplier up to their customers requirements.
entrance in the manufacturing process. The In the Romanian economic literature,
logistics activities are: goods transportation, logistics is defined as the science finding
warehousing, handling, security packaging optimal solutions for the localization and
and inventory control, choose of factories placement of activities, for the acquisition
and warehouses, the achieving of orders and process, for transportation and goods
commands, market forecasts and the service distribution, for the organization of material
offered to customers [1]. and information flows in order to get the best
At the beginning, physical distribution return.
and logistics were considered synonymous. For a good, being the subject of an
But over the years, it has been observed that acceptable cost offer, it is necessary that the
logistics is much more complex than logistic infrastructures of the vendor,
distribution. The first theoretical approach of producer or supplier be connected and belong
physical distribution belongs to Peter to a supply chain whose main goal concerns
Drucker who considered it as another way of the consumer satisfaction. In this sense,
naming a business process. Looking deeper, logistics proves besides the operational
Philip Kotler includes within physical function, a tactic/strategic function which
distribution the planification, implementation aims to define the necessary means for
and the control of physical material flows achieving the companys objectives.
from their point of origin to their point of In the context of the global economy, at
exploitation in order to satisfy customers the level of logistics, we should take care of
requirements and to achieve profit. following aspects: the multiplication of the
actors involved in the supply chain; the
3. Logistics and supply chain management. competition; the speed and the flexibility as
Literature review fundamental criteria of the supply chain
effectiveness etc. [3]
European Logistics Asociation (ELA) If the period 1970-1980 was influenced
gives its own definition of logistics activity: by the upsurge of the knowledge-based
The process of organizing, planning, economy, the following years announced a
controlling and achieving the flows of goods radical change. This is the moment when
from the acquisition and development phases companies use new management methods
up to those of production and distribution to like JUST-IN-TIME in order to improve their
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efficiency. These methods allow the the distributors or the transporters, because
limitation of stocks according to a precise they are all members of the supply chain.
organization of the acquisition process Therefore, we could appreciate that
[4],[5]. In such a context, enterprises realize nowadays logistics is involved in almost all
the importance of creating strategic phases of goods life cycle. The activity of
relationships between customers and logistics specialists concerns the process of
suppliers, this being a premise of SCM making decisions regarding all the resources
performance. used in a complex universe full of
Later on, specialists in the field identified constraints. These resources reffers to:
concepts like: Materials Management and human, physical, geographical ones etc. The
DRP (Distribution Resource Planning), as a responsible with logistics problems tries to
supplementary step in defining the function simplify as much as possible, but also to
of transportation and that of physical improve the acquisition, production and
distribution at the level of the supply chain. distribution processes in order to reduce costs
Global logistics includes all the internal or but even the delivery times for the customer.
external activities of a company that are The supply chain is now considered as a
supposed to bring added value to the goods main process with a strategic role for the
and services offered to the customers [6]. company. The development of mondial
The integrated logistics aims to add the changes and of electronic commerce are
distribution function to that of acquisition, examples of innovations arising among
thus appearing the concept of Supply Chain logistics services [10].
Management [7]. Therefore, logistics plays a crucial role
From the literature in the field, we found for the competitiveness and performance of
out that SCM has his roots on Materials different sectors. Logistics enables
Management and on Physical Distribution companies of all sizes to be better integrated
[8]. The supply chain optimization started into global networks generating economic
with an adequate management of costs. added value.
In Tans opinion the researchers have A series of studies which analyse the
tried to fix the structure of SCM by starting overall performance of supply chain increase
with two main axes: a part designed to their interest in the existence and nature of
acquisition and another for the transportation the interractions realized between partners.
and logistics. The integration of those two Fynes et al. focused on the relations of
parties seemed difficult at the beginning, but confiance, commitment, adaptability and
they had a common purpose, that of communication characterizing the parteners
satisfying the consumer.[7] of a supply chain. They propose seven axes
There are a lot of definitions concerning of performance: customers-partners-staff-
the supply chain. Our analysis helped us to sustainable development-shareholders-
understand that is difficult to find a universal internal processes-information system. [11]
definition for this concept. Other authors such as Chan and Tseng et
Christopher considered that the supply al. consider that we should not reduce the
chain could be seen as a network of performances analysis to one area, but rather
companies that participate, upstream and to structure our analysis criteria by taking
downstream, in different processes and into account the financial aspects in order to
activities creating added value by the means achieve the supply chain performance by
of goods and services offered to the final reducing costs. [12], [13].
customer. [9] During our research we assumed that the
La Londe and Masters (1994) believe that supply chain performance is an objective that
the supply chain represents a group of must be accomplished.
companies that are transmitting materials We agree with Jarillo who believes that
from the ones to anothers. As a general rule, the supply chain does respond to a strategic
there are a set of independent actors involved logic. The members of a supply chain, as
in the production of a good and its partners, realize a profitable long-term
transportation to the final user. We should arrangement that enables companies to get a
take into consideration the raw material competitive advantage. The enterprises,
producers, the contractors, the wholesalers, apparently independent, are actually
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interconnected and they become dependent cost reduction and also the survival of
on the behavior of the other partners within companies in a competitive environment.
the supply chain. [14]
5. References
4. Conclusions
[1] Putz, E. and Bzoi, G., Managementul
The creation of partnerships at the level of lanului logistic, 2010, available online
supply chain by reducing costs and by at:http://ro.scribd.com/doc/63878263/Manag
increasing its performance and effectiveness. ementul-Lantului-Logistic-I
Presently, by increasing flexibility and [2] Nohra-China, C., Grands comptes: des
agility, companies could influence the strong systmes logistiques en attente
dharmonisation, Le journal de la
differentiation from their competitors. By the
logistique, 2006. available online at:
means of outsourcing, enterprises are able to <http://www.logistique-1.com>
focus their efforts on the key areas of [3] Vasiliu, C. ,.The Development of Logistic
competence but also to improve their Strategies Theoretical and Empirical
competitive position. Researches in Urban Management, Year 3,
The Supply Chain Management aims at No 7, ISSN: 1842-5712, 2008 available
adapting to a changing market in which online at: http://um.ase.ro/no7/5.pdf
companies strategies are developing [4] Frein, Y., Gestion des flux dans un contexte
continuously and where there are new de production/livraison synchrone-cas de
technologies that could not meet the current lindustrie automobile, Ecole dt
chain configuration. dautomatique Gestion de la Chane
Logistique. Session 24, Septembre 2003,
We could appreciate that logistics
Grenoble, Fr.
comprises a set of activities having as [5] Monateri, J.C., Relations synchrones entre
purpose the conception, physical realization, entreprises (DO/F): Innovation
organization and optimization of all organisationnelle et logistique dans la chane
techological flows from the inside and/or de valeur. Ecole dt dautomatique
outside of a system so that a demand would Gestion de la Chane Logistique. Session 24,
be accomplished as soon as possible with the Septembre 2003, Grenoble, Fr.
lowest costs [6] Courty, P., Les enjeux industriels et les
The economic crisis has opened new nouvelles problmatiques scientifiques De
perspectives on the importance of supply la logistique la logistique globale. Ecole
chain efficient management. The negative dt dautomatique Gestion de la Chane
consequences of this crisis have determined Logistique. Session 24, Septembre 2003,
Grenoble, Fr.
us to study deeper the supply chain strategic [7] Tan, K.C., A framework of supply chain
role in companies competitivity. In this management literature. European Journal of
respect, we proposed this conceptual model Purchasing and Supply Management, vol. 7,
for the analysis of the supply chain hoping pp. 39-48, 2001
that our researchs results would open the [8] Ganeshan, R. et al.,. A Taxonomic Review of
way for future studies in the operational field. Supply Chain Management Research.
The supply chains performance and Quantitative Models for Supply Chain
also the companys one, depend on every Management. Kluwer Academic Publishers,
Boston, pp. 841-880, 1998.
function of the logistics regarded as an [9] Christopher, M.L., Logistics and Supply
integrated system. Under the Chain Management, Pitman Publishing,
circumstances of an increased dynamism London, 1992.
and complexity at the structural and [10] Industry Canada, Global Business Strategy
functional levels of companies in the and Innovation: A Canadian Logistics
context of the knowledge-based Perspective. 2011. available online
at::http://www.ic.gc.ca/eic/site/dsiblogi.nsf/fr
economy, our research proposes to a/pj00530.html .
highlight some important issues. [11] Fynes, B., Voss, C. and De Burca, S., The
The economic specialists and the impact of supply chain relationship quality
managers should increase their on quality performance. International
preoccupations to find new economic Journal Production Economics, vol. 96, pp.
339-354., 2004.
levers in order to assure the supply chain
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Nancu Dumitru
Nancu Dorinela
Ovidius University of Constanta
nancu_dumitru@yahoo.com
cusudorinela@yahoo.com
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highlighting the relations between the weaknesses and strenghts, but also the
logistics functions and their importance localisation of these points at the level of
in creating the competitve advantage for supply chain components [1]. In this
the companies. respect, Putz and Bzoi believes that a
The four hypothesis to be considered correct identification of the supply chain
during our research are: vulnerabilities is related to the existence
H1: The systemic approach of the and exploitation of the information
supply chain allows the identification of available at the appropriate time and
weaknesses at the level of logistics place, in the optimal quantity and
functions and their correction in order to structure. Therefore, a separate approach
increase the chains efficiency and to of logistics functions enabled us to
reduce costs. identify the way by which every function
H2: The global organization of influences the supply chain effectiveness
logistics and the centralization of its and how it could reduce the chains cost.
functions determine an effective Production: Managing the production
coordination of logistics operations with process is a very old topic that interested
the companys strategy. The succes of the theorists and practitioners (like
enterprises strategies depends on the Taylor, Fayol, Ford etc.) from ancient
management of supply chain. times. Starting from their work, several
H3: Piloting the operational activity methods concerning the production
becomes a potential optimization vector management have been established like
of supply chain, especially for the fact as: MRP (Material Requirement
that this activity could be controlled Planning), MRP II (Manufacturing
inside the company. Resource Planning), ERP (Enterprise
H4: Creating partnerships in the Resources Planning). A very important
supply chain could be seen as a premise issue for the management is represented
of costs reduction and of achieving the by the production organization: the
competitive advantage. management is the one deciding whether
As a research method we used the the company produces on command or it
inductive analysis based on causal prefers a stock production or a flow
explanation. We started by analysing the production. When it is difficult to predict
logistics functions and we continued our the potential demand, the company will
research approach by showing the way by produce on customers order. However,
which they influence the supply chains when the management is able to
effectiveness. Therefore we considered anticipate customers needs, the
appropriate to analyse logistics as a enterprise will choose the stock
system because of the complexity of its production [2]. JUST-IN TIME
functions and of the interractions created production occurs when it is about a
among them. stable demand of goods. This type of
production aims to reduce manufacturing
3. Causal links between the logistics costs and times and to improve goods
functions quality [3]. The management has to take
the best decisions concerning the
Performance appraisal is a matter of organization of the manufacturing
logistics rather than explicity studied in process in order to reduce its costs, with a
the economic literature. What is missing direct influence on storage and inventory
from the vision of different authors costs and with an indirect influence on
concerning the supply chain performance, customers satisfaction.
is precisely the systemic approach Warehousing and stocks: Each
allowing not only the identification of company sets its own accounting criteria
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6. References
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method chosen was the non-random one. It group of customers which resulted in a
was started from the premise that: sample of 282 customers that belong to the
- the number of customers who accessed five groups.
cosmetic products sold in specialized stores
in the period 1st to 10th March was of 1.160 ; Table no.1. Criteria for completing the
- among these, only 46% of them bought final sample
cosmetics SEVENTEEN, belonging to
company X ; Segment of clients Percentage Number Sample
of total of 75 %
It results that the number of customers customers customers
who bought SEVENTEEN products was: segment
1.160 x 46 % = 533 customers Customers who 24% 90 68
purchase mainly
Of these, only 72.5% have purchased in skin makeup
the last months more than five cosmetic products
products from Makeup range belonging to Customers who 34% 128 96
purchase mainly
different lines; makeup products
70,5% x 533 = 376 customers who bought for lips
Customers who 12 % 45 34
more than five cosmetic products from the purchase mainly
SEVENTEEN range, belonging to different makeup products
lines, in the last months. for the eyes
Customers who 11% 41 31
Customers were grouped according to the purchase mainly
share of each customer segment, in the total products for the
of customers who purchased SEVENTEEN nails
Customers who 19% 72 53
makeup (Figure 1). purchase
accessories mainly
Figure no.1. Structure of respondents used for applying
makeup
according to the most likelz purchased TOTAL 100% 376 282
products belonging to Makeup cosmetics Source: Data processing based on
range of product lines sampling method taken from Ctoiu, I. et. al,
2002
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The value obtained ranged between a less hydrates the skin. Also, this foundation does
favourable and favourable with a greater not contain oils, it is dermatologically tested,
tendency towards a second assessment. Most provides SPF 20 protection and contains no
customers interviewed stated that they have parabens.
often bought Seventeen makeup and they Analysis of significant attributes that
appreciate the quality of these products. clients want to find in lip products.
Prices charged reflect the quality of We have applied the method of rank ordering
Seventeen products. Differential semantic [1] to calculate the weighted average for each
was used to produce a result by calculating factor. For each rank, a score was given, as
the average assessment, to each answer follows: rank I - 3 points, rank II - 2 points,
corresponding a number of the 1 to 5 scale, ranking rank III - 1 point.
from very unfavourable to very favourable For color persistence
relative to the sample number (25 x 1 + 50 x (149 x 3 + 75 x 2 + 76 x 1) : 282 = 2,38
2 + 44 x 3 + 85 x 4 + 78 x 5) : 282 = 3,50 For transfer resistance:
The value obtained ranged between a less (52 x 3 + 139 x 2 + 83 x 1) : 282 = 1,83
favourable and favourable. Most customers For softness sensation:
interviewed stated that Seventeen makeup (81 x 3 + 68 x 2 + 123 x 1) : 282 = 1,20
cosmetics are available in terms of price. The atribute which clients give the
Seventeen makeup products have an greatest importance when speaking of
original design that can not be easily Seventeen makeup products for lips is the
confused. Differential semantic was used to persistence of color, followed by transfer
produce a result by calculating the average resistance (it does not remain on the glass,
assessment, to each answer corresponding a napkin, etc.) and then the feeling of softness.
number of the 1 to 5 scale, from very Customer perception towards the makeup
unfavourable to very favourable relative to products of company X, in terms of diversity
the sample number. of supply in terms of color palette and in
(9 x 1 + 41x 2 + 38 x 3 + 106 x 4 + 88 x 5) : terms of price.
282 = 3,79 In order to identify what is the perception
The value obtained ranged between a less of the company's X products to customers, in
favorable appreciation and a favourable one terms of diversity of supply, in terms of
with a greater tendency towards a second colour palette and in terms of price, a
assessment. Most customers interviewed question was used for whose interpretation
stated that Seventeen cosmetic products are Likert scale [1] was applied. Thus, for
easily identifiable due to their original positive statements, each gradation was given
design. a numerical value as follows: + 2 + 1, to
Following the analysis of customers indifference corresponds value 0, and
responses, the main characteristics sought in negative statements are attached to one of the
case they wish to purchase makeup products following values: -1 , -2
for the skin are: providing natural coverage, For statement no. 1:
as indicated by 42% of respondents, followed [2 x 28 + 1x 164 + 0 x 56 + (-1) x 26 + (-2) x
by offering brightness (30% of respondents), 8] : 282 = 0,63
providing solar protection (indicated by For statement no. 2:
18.50% of respondents) and skin hydration [2 x 37 + 1 x 171 + 0 x 49 + (-1) x 12 + (-2)
capacity (indicated by 9.50%). x 13] : 282 = 0,61
Almost half of the respondents said that For statement no. 3:
they are choosing WONDERLIGHT [2 x 13 + 1 x 149 + 0 x 69 + (-1) x 37 + (-2)
SERUM MAKE UP SPF 20 foundation. It is x 14] : 282 = 0,39
a liquid foundation that provides natural For average level = ( 0,63 + 0,61 + 0,39 ) : 3
coverage and brightness combined with all = 0,54
the qualities of skin care serum. According to available data, it appears
The basic ingredients of this product are: that the company's offer is diversified,
china flower providing brightness and cosmetic products are found in a wide range
alabaster aspect, a combination of peptide of colours and cosmetics prices are not high,
Matrixyl 3000 ADIBOFILL'IN - wrinkle being available to most clients. Also, the
protection, Aquaxyl that retains moisture and price of the products reflects their quality.
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6. Conclusions
7. References
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Nicodim Liliana
Faculty of Economics, "Ovidius" University, Constanta, Romania
nicodimlili@yahoo.com
Tnase Gabriel-Iulian
Valahia University of Trgovite
tenessist@yahoo.com
Velica Marian
Valahia University of Trgovite
velicamarian@yahoo.com
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global, optimal, strategic analysis of the The management of the system and of the
activity in education, the assembly of educational institutions comprises: the clear
principles and functions, of norms and formulation of purposes, the outline of the
methods of leadership which ensure the institutional network, the elaboration of
accomplishment of the objectives of the teaching content, the assurance of the
education system (in general or at the level of legislative-normative framework, the initial
component elements). The educational and ongoing formation of the leading and
management has clear, hierarchical didactics staff, the use of some evaluation
objectives, principles for effectiveness and techniques which can calibrate ongoing the
quality, specific functions, strategic elements, system and the learning process and which
the use of creativity in situation resolution, could this way optimize the results.
interdisciplinary and systemic approach, Accomplishing an efficient management
fundamental research. The difference can be negatively influenced by the following
compared to the general management is the obstacles: barriers and contortions at the
specific reference to the educational communicative level, tense organizational
purposes, to the content, to the involved climate, unforeseen problematic situations.
human resources, to the activities centered on These barriers can be produce objectively,
informing, communication and participation but they can also appear due to some
through educational strategies, stimulating managerial mistakes: delay of problem
the transformation at the level of solving, the partial problem solving, the
personalities, both for the students and for the involvement of the manager simultaneously
teaching-staff. The major difference at the in solving multiple problems, the belief that
level of this concept is that between the he/she knows everything very well, the lack
educational management at the macro- of failure responsibility assumption and the
structural level (at the level of the education tendency of blaming others, as well as
system, found in the national, European, wasting the time of the followers.
global educational politics eg. The
Minister, the inspectorates etc.), at the 3. Conclusions
intermediary level (at the level of the
institution and we take into consideration the The manager sums up the conditions of a
educational management of the education profession because this position requires
unit, school headmaster) and at the micro- training, it aims at accomplishing some
structural level (at the level of the classroom objectives by collective continual
and we have in view the educational manager participation, requiring a complex of
of the classroom, the teacher). The distinction theoretical and practical knowledge, of
between the three approaches is capacities and competencies.
accomplished not only based on name, The manager profession has two
authority, formal elements, but also having in meanings: a large one, of activity through
mind the specialty formation, experience (not which one earns his existence, an occupation;
necessarily evaluated by working years) that a narrow one, to define the preparation of the
are materialized in knowledge, competencies, specialty personnel. The managerial
attitudes and values which determine the preparation ensures a high level of
manifestation of a responsible, efficient, professionalization as rational, creative
authentic behavior in relation with the educator in the conception, accomplishment
students, as well as the teachers. The three and optimization of the educational activity.
approaches of the educational management To be an efficient manager in education
are un-differentiated treated from the sole through the teaching-learning of his/her
reason that they cant be separated, at least subject the teacher has to have a broad
for now in the Romanian educational system concept on education and training, on
(in Canada, USA, etc. the school units are led interdisciplinary approach, a clear
by management specialists, not necessarily comprehension of the managerial position
teachers. This condition - that the school and of the derived parts, of the application
headmaster has to be also a teacher is for the varied educational situations. The
stipulated in all the European legislations). teacher-manager can become this way a
professional in education, its leadership
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being an intrinsic attribution, a fundamental [4] Prelucrare, Anca Trc, The educational
condition[6]. management, module 7, Bucureti
In this way is this profession [5] Steliana Toma, The teacher decision factor,
differentiated from other domains where the Ed. Tehnic, Bucureti.
[6] Vasile V. Popescu, The science of education
manager profession is complementary for a
leadership, Ed. Didactic i Pedagogic,
specialist, because the included managerial Bucureti, p. 55
professionalization of the educator is also [7] Ion Petrescu, Management, Ed. Tipocard
manifested as a high level of conception, Braovia, Braov, p. 15
beside the proper formation of capacities and [8] Popescu, Vasile V., The science of education
pedagogical competencies, of specialty [7]. leadership, Ed. Didactic i Pedagogic,
The effective educational management is Bucureti.
accomplished by optimal use if the resources, .
by the capacity of motivating the staff, of
directing it to the objectives and of
organizing it according to the aptitudes of
good communication both horizontally as
vertically, current evaluation, objectives and
incentives for the entire staff, rational
collaboration with the partners, fair
attribution delegation to the followers, use of
some modern leadership techniques [8].
The educational manager has to have
nowadays, beside the professional and
managerial competencies, the capacity to
understand the educational politics at the
macro-social level, the harmonization
tendencies of the Romanian education with
the European one.
The system for managerial training for the
teaching-staff has to be permanently
improved and brought to the current needs
for the accomplishment of the educational
managers assignments having as purpose the
achievement of an educational product
appropriate for the quality standards, capable
of integrating and adapting to the demands of
the beneficiaries.
4. References
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Nicodim Liliana
Faculty of Economics, "Ovidius" University, Constanta, Romania
nicodimlili@yahoo.com
Buca George
Ph. D. student Lucian Blaga University, Sibiu, Romania
george.bucata@yahoo.ro
Tnase Gabriel-Iulian
Valahia University of Trgovite
tenessist@yahoo.com
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transmitted very quickly to the people around main motivation of volunteers everywhere,
, leading in turn to the market and building a but depending on the magnitude of the
positive image of the company to potential project and the possibilities of the
employees; organization, they can also benefit from
A company's culture can approach certain privileges. Perhaps the most effective
people. - a strong organizational culture form of motivation is the recognition of the
brings people together. When team members work and efforts of volunteers.
have an opportunity to communicate and get An important place in the list of methods
to know each other better, they will form for customer loyalty of volunteers is the
new connections. These connections will concern for the development of their personal
lead to new ideas and wise decisions, and professional life. The specific needs of
especially in difficult situations when the volunteers and their involvement in programs
formal relationship is falling apart and that respond to these needs and provide
conflicts may break out more easily; rewarding both professionally and
The culture of an organization can personally, matters a lot for those working in
change the perspective of the word "work". - the voluntary scheme. If for some, work in an
Many people have a negative image of the NPO is only the first stage of professional
word "work". Work means effort, rigid development, others work in a nonprofit
program, a "stone mill". When creating an organization to have full time job later in
attractive organizational culture, people's their life.
perspective about "going to work" will
change. 6. Conclusion
Any of the above reasons is enough to
cause you to focus more on corporate culture. Organizational culture constitutes another
However, the most important is that, in important element, and which has a direct
addition to the development of the people in influence on the economic outcomes of an
the team, organizational culture develops the organization. It can be located on a level
company itself. Along with strengthening the between individual attitudes and intermediate
common vision and values to the team mentality being influenced by both,
members, business profitability will increase manifesting itself within a smaller teams, as
significantly. is the case of professional organizations. In
this context, we can make a distinction
5. The new organizational culture: between culture, seen as a very broad
motivating the volunteers concept (mentality of being part of it), and
organizational culture. Culture is the set of
Organizational culture is a complex values that determine the behavior and
mechanism to which always counts the attitudes of acceptable or not members of a
human resource. The internal culture is one society. Organizational culture is the set of
that holds an organization, representing the traditions, concepts, procedures, values and
most powerful force for cohesion, allowing attitudes that create the context of activity
its members to have a common vision on within organizations.
events and giving them the stability to which
the organization needs to survive in a world 7. References
that constantly changes. An organization is
more than just a collection of buildings and [1] Kotter, J. P., & Heskett, J. L.
strategic analyses, it is represented primarily (1992). Corporate culture and performance.
by the people of the inside, they are the real New York: Free Press.
engine. [2] Glisson, C. (2007). Assessing and Changing
Without a doubt, the techniques of Organizational Culture and Climate for
Effective Services. Research on Social
motivating the volunteers in nonprofit
Work Practice, 17, 736-747
organizations differ from those used in [3] Brewer, W. F., & Lambert, B. L. (1993). The
companies. One becomes a volunteer in the theory ladenness of observation: Evidence
first place to support a cause, to get involved from cognitive psychology. Proceedings of
in community life. The desire to help is the
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Eugen Petac
Faculty of Mathematics and Computer Science
Ovidius University of Constana, Romania
epetac@univ-ovidius.ro
Petru Duma
Faculty of Electronics, Telecommunications and Information Technology
Technical University Gh. Asachiof Iai, Romania
pduma@etti.tuiasi.ro
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networks and services that are connected. Information security is a broad concept
The evolution of the Internet has been that refers to the insurer of the integrity, of
through four distinct phases, each the confidentiality and availability of
characterized by a rapid growth of information, regardless of its form.
increasingly large business and, generally, of Authentication, authorization and non-
establishment: connectivity, network repudiation are closely related to the IoE
economy, collaborative experience, Internet entities (people, processes, things) that are
of Everything (IoE). Services like the e-mail, using this information.
web browsing, search content etc, are In the security sense it is discussed
specific to the connectivity phase. E- attacks, mechanisms and services [10], [11].
commerce and supply chain digitization of Any action that compromises the security of
the economy are characteristics of the second information represents a security attack. This
phase, the network economy, which has action can be passive (a release of message
begun in the late 1990s. The collaborative contents or traffic analysis) or active
experience with social media services, video, (Masquerade, Replay, Modification of
mobility and cloud computing completely message contents, Denial of Service - DoS,
transformed the world, starting with the year Distributed Denial of Service - DDoS). A
2000. This is the IoE's stage of evolution of security mechanism is designed to detect,
the Internet that connects people, processes, prevent, or recover from a security attack.
data and things. According to some studies Encipherment, digital signature, access
[5],[7], it is expected that the number of control, data integrity, authentication
connected devices and objects will exceed 50 exchange, traffic padding, routing control,
billion by 2020. By 2022 the IoE can notarization are some of the main security
increase company profits by over 20%. Until mechanisms that provide adequate security.
2018 data traffic in mobile networks will Security service enhances the security of data
grow 11-fold to 190 exabytes an annual processing systems and information transfers.
volume of 190 exabytes [8]. In the context to A security service makes use of one or more
the increasing number of mobile connections security mechanisms. The main security
to the Internet, mobile devices, but also to the services are: data confidentiality (connection,
number of connections and Machine-to- connectionless, selective field, traffic flow),
Machine (M2M), they will exceed the 10 authentication (peer entity, data origin), data
billion by 2018 [8]. Cloud services are key to integrity, non-repudiation (with proof of
the IoE deployments. It is expected a origin/ delivery), access control, availability.
significant increase in data traffic in the An intrusion is defined as a set of
cloud, from 3.1 zettabytes in 2013 to 8.6 unauthorized activities attempting to
zettabytes 2018 [7], [8]. IoE becomes a compromise integrity (the attacker can
network of networks where billion modify the system state and alter the data
connections create unprecedented without proper authorization from the
opportunities, but also new information owner), confidentiality (the attacker gains
security risks. Information to anyone, at any access to confidential and otherwise
time and can be accessed from anywhere is inaccessible data) or availability (the system
what the people wanted all the time from the is either shut down by the attacker or a
Internet. Software vulnerabilities, erroneous resource made unavailable to general users).
configuration, negligence regarding the One can reach the critical situation in which
handling of data are some of the causes that the attacker gains full control of the system
led to the problem of the Internet regulation. and can alter the access privileges of the
Four phases are defined [9] for the Internet system, with a potential risk of
regulation: open Internet, from the networks compromising overall system resources.
birth through about 2000; access denied, Intrusion Detection corresponds to a set of
through about 2005; access controlled, techniques and methods used to detect
through about (2010); and access contested, suspicious activities at both the host (Host
the actual phase. Based Intrusion Detection - HIDS) and/or the
network level (Network Based Intrusion
3. Security Approaches Detection - NIDS). It is very important the
analysis of the suspicious activities in order
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the attempt to clarify the basic concepts: the empty receptacle, but teaching is a two-way
value, the client and the important learning process in which the student and the
stakeholders, the appropriate marketing teacher help each other to learn by sharing
philosophy for HEIs. their insights and difficulties with each other.
According to a definition offered by the Considering that teaching is a tool meant to
American Marketing Association (2008) [9], manage the interactions between the student
an essential part of the marketing concept is and the university, Tat et al. [11] also say that
the creation of value dedicated to customers. teaching can play a central role to ensure the
Placing this in the context of HEIs marketing quality of academic processes, but also can
strategy, we consider important to be a source of competitive advantage.
understand: Based on the above definition, the
What is the specific form of the value experience of learning highlights the active
offered by higher education institutions? role of the student within the process of value
and creation and makes us consider that an
Who is the client of higher education approach specific to relationship marketing is
services and which are the stakeholders? more appropriate for the higher education
services than the one specific to the
3. How do we define value in the context of transactional marketing.
higher education marketing? The vision specific to relationship
marketing comes with a new paradigm of the
The development of effective marketing marketing thinking, a shift in hegemony
strategies for any organization, including from the 4Ps to relationships, networks and
HEIs, is based on a deep understanding of the interaction [12]. The idea is clearly described
concept of value. The topic of value in Figure 1. Moreover, the relationship
creation in the educational marketing context marketing vision emphasizes the involvement
was not a much discussed one, at least so far. of the customer as an active participant and,
As any abstract concept, value in marketing thus, a co-producer in the creation of the
is a very provocative concept regarding its offer [13].
conceptualization and measurement [10]. It is
not easy to define such a concept as value Figure 1. A shift in hegemony: from the
and probably it is more difficult to marketing mix to relationships, networks and
understand and define it for a domain like interaction
educational marketing because of its
sensitivity and importance for society. Even Relationships Networks Product Price
so, when referring to value in the context of
marketing for educational services, it would
Marketing Relationship
be useful to have the answer to the question: Mix - 4Ps Marketing -
What is the concrete form of value created * Product 30Rs
* Price * Relationships
by the higher education institutions? Maybe, * Promotion * Networks
to some extent, it can be defined as the * Place * Interaction
experience of learning. Or maybe the
experience of learning is just the core of the
Interaction Place Promotion
value offered by the higher education
institutions.
Source: based on Gummesson, E. - Total
According to Sakthivel and Raju cited by
Relationship Marketing, 3rd ed.,
Snchez-Fernndez et al. [23] for education
Butterworth-Heinemann Elsevier Ltd.,
to be excellent, the perceived value should
Oxford, p. 325
have great impact both on students
knowledge, but also on their personal
The relationship marketing approach for
development.
higher education services is also suggested
In order to underline the essence of this
by other scholars [20], [23], [24].
idea, we present the definition Ho [11] offers
for the teaching activity saying that teaching
is not the art of filling the mind of students
with knowledge in the way one would fill an
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4. Who are the stakeholders and who is the education marketing, at the mid-80s when it
client of educational services? appeared in the interests of specialists,
emerged as an offshoot of health care
The development of marketing strategies marketing [8]. Just like in health care
by universities should be based on the services, where only lately the trend has
knowledge of customer expectations and the emerged (at least in literature and probably
degree of satisfaction in terms of less in practice) to overlap in meaning, the
performance offered by them [8] and, for this concepts of patient and client [17], [18], [19],
it is essential to identify all the categories of in the context of higher education institutions
stakeholders involved in the smooth running there is also reluctance to overlap the
of these institutions. Kotler and Fox [8] concepts of student and client. In the research
identify in 1995 16 categories of they conducted, research which involved the
stakeholders: current students, prospective analysis of the literature that tries to highlight
students, faculties, parents of students, how the student is viewed in the context of
university employees, graduates, suppliers, the activity of higher education institutions,
competitors, government organizations, Tat et al. [11] conclude that there are some
business environment, media, foundations, metaphors that describe the student, of which
board of directors, accreditation bodies, local three are the ones that appear most
community and general public. We consider frequently: the student as product, the
that the identification of the categories of student as client, the student as employee,
stakeholders in the activity of higher and the authors also suggest a fourth
education institutions is an important part of metaphor: the student - as partner. The
their marketing strategy because each authors mentioned above also identify a
category has its own expectations regarding number of voices who do not approve the
the educational process. More recently, idea of considering the student as the
Mainardes, Alves and Raposo [14], in a large customer of educational services [11],
study aimed at identifying and prioritizing holding that such an approach can be a
the stakeholders of universities conclude that dangerous one that could harm the image of
they can be classified according to several higher education. The basic argument of the
criteria as follows: internal or external, latter category of authors is that education
individual or collective, academic or non- services cannot be reduced to a simple
academic. According to their study, a list of transaction, the student being expected to be
21 stakeholders resulted and the main an active partner in the development of the
stakeholders proved to be the students, the educational process, someone who not only
teaching and/or the research staff and the receives but also gets involved in creating the
employers [14]. A study meant to identify service. There are many pros and cons of
who the stakeholders are, in the view of those considering the student as a customer of
who coordinate the activity of universities in educational services. It should be noted
Romania comparatively between the public including the fact that, in this situation, the
and the private sectors - we think it would be prospectus (the potential student) needs to
a necessary and useful initiative for the good compete and qualify to become a customer of
running of these institutions. the services.
However, there is no doubt that one of the
most important, perhaps the most important 5. Conclusions
category of stakeholders in the context of
higher education, is represented by the It is important both for the academic
students/potential students. Still, in the literature, and for the managers of higher
literature, there is no unanimity in education institutions to understand and
considering the student as the client or the clarify the main marketing concepts
product of academic services. Moreover, regarding the higher education field. Only
neither in practice it is clear enough to what this way the marketing strategy will have the
extent the approach that places "the student necessary consistency to create the beneficial
as client" at the core of the institution's environment both for the HEIs, the students
strategy is a right one [15]; [16]. and other stakeholders, and also for the
It is interesting to note that the higher society as a whole. It must be mentioned that
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[press release] 14 January 2008. Available at: 25, Iss 6, 2011, pp. 570 589.
<http://www.marketingpower.com/aboutama/ [21] Kotler, Ph., Armstrong, G., Principles of
documents/american%20marketing%20assoc marketing, New Jersey: Pearson Prentice
iation%20releases%20new%20definition%20 Hall, 14th ed., 2012.
for%20marketing.pdf> [Accessed 15 April [22] Liebrenz-Himes, M., Shamma, H., Dyer, F.
2012]. R., Relationship MarketingAll in the
[10] Woodall, T., Hiller, A., Resnick, S., Making Family: Perspectives on the Diverse Roles of
sense of higher education: students as Myriad Stakeholders [online], Proceedings
consumers and the value of the university of a Joint Conference of The International
experience, Studies in Higher Education, Society of Marketing and Development and
Vol. 39, No. 1, 2014, pp. 4867. The Macromarketing Society, 2007,
[11] Tat, H. H., Hwa, M. A. C., Shamsuddin, A. Available at: <
S., Salleh, M., www.macromarketing.org/Macromarketing_
Applying the Student-as-Partner Model and_Development_June_2007.pdf>.
Within the Context of Malaysian Public [Accessed May 2015].
Institutions of Higher Learning, Hamid, A. [23] Snchez-Fernndez, R., Iniesta-Bonillo, A.
B., Hashim, N. H., Shamsuddin A. S. M., Schlesinger-Daz, W., Rivera-Torres,
(editors) Customer Satisfaction and Service P.,Analysis of the Value Creation in Higher
Quality: Challenges and Issues in Malaysia, Institutions: A Relational Perspective,
Penerbit UTM, Johor, 2008, pp. 33-48. Theoretical and Applied Economics, Volume
[12] Gummesson, E., Total Relationship XVII, No. 10(551), 2010, pp. 25-36.
Marketing, 3rd ed., Butterworth-Heinemann [24] Fontaine, M., Student Relationship
Elsevier Ltd., Oxford, 2008. Management (SRM) in Higher Education:
[13] Hollensen, S., Marketing Management: a Addressing the Expectations of an Ever
relationship approach, Pearson Education Evolving Demographic and Its Impact on
Limited, 2003. Retention, Journal of Education and Human
[14] Mainardes,E., Alves, H., Raposo, M., Development, Vol. 3, No. 2, 2014, pp. 105-
Identifying Stakeholders in a Portuguese 119.
university: a case study, Revista de
Educacin, no. 362, 2014, Available at
http://www.mecd.gob.es/
revista-de-educacion/en/numeros-revista-
educacion/numeros-anteriores/2013/
re362.html, [Accessed December 2014].
[15] Dominici, G., Palumbo, F., How to build an
e-learning product: Factors for
student/customer satisfaction, Business
Horizons, 56, 2013, pp. 8796.
[16] Durkin, M., McKenna, S., Cummins, D.,
Emotional connections in higher education
marketing, International Journal of
Educational Management, Vol. 26, No. 2,
2012, pp. 153-161.
[17] Priporas, C-V., Laspa, C., Kamenidou, I.,
Patient satisfaction measurement for in-
hospital services: A pilot study in Greece,
Journal of Medical Marketing, Vol. 8, 4,
2008, pp. 325340.
[18] Kotler, P., Shalowitz, J., Stevens, J. R.,
Strategic marketing for health care
organizations: building a customer-driven
health system, San Francisco: Jossey-Bass,
2008.
[19] Thomas, R. K., Marketing health services,
Second Edition, AUPHA Press - Health
Administration Press, 2010.
[20] Moogan, J. Y., "Can a higher education
institution's marketing strategy improve the
student institution match?", International
Journal of Educational Management, Vol.
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Roca Remus
University of Oradea, Faculty of Economics
remus_rosca@yahoo.com
ipo-Gug Sebastian
University of Oradea, Faculty of Economics
sebastian.siposgug@gmail.com
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of planned economy during which the business environment and students, business
private property and initiative in economy plans competitions, business incubator in the
lacked almost totally. university, organizing entrepreneur clubs in
Only 5% of the Romanian entrepreneurs partnership with the business and non-profit
consider the failure in business an environment; fair of business ideas where
opportunity for learning and 81% of the students can receive feedback from
respondents consider that the fear of entrepreneurs and can do networking for the
failure will be a barrier to the purpose of identifying facilitators such as
development of entrepreneurship in the mentors or investors, creating partnerships
future. One of the explanations is also the with financial institutions for providing credit
way in which the Romanian education and savings products to students. An example
generally refers to failure, condemning it of entrepreneurial university recognized for
rather than viewing it as a source of its good practices within this field is the
learning. The fear of failure inhibits the University of Washington in the USA [7].
availability for risk taking, and that is one In conclusion, assuming the role of
of the most important traits, values of entrepreneurial university is a necessity in
entrepreneurs. any society and particularly in Romania due
C. The development of entrepreneurial to: the need to adapt the education system to
skills of students to enable them to develop a the new realities of the market and economy;
successful business. From using the PC and the impact on economic growth due to the
the virtual environment to developing a increase in the number of new set up firms;
business plan, from communicating in an the reduction of unemployment particularly
international language to the negotiating among young people, who are one of the
skill, these are all examples of competencies most vulnerable category from this point of
necessary for an entrepreneur. view; the need to provide models for the new
D. Creating the conditions, the necessary generations. The sooner the decision making
framework to facilitate the transition from the factors of the higher education system in
students business idea to the effective Romania will be aware of the need to set the
business. This category includes: student universities in our country as entrepreneurial
business incubators, events to facilitate the universities and will act in this direction, the
students networking with potential more important the Romanian higher
facilitators (investors, clients, mentors etc.). education will become as vector of social-
By undertaking these responsibilities, the economic development, creating value for the
entrepreneurial university facilitates the stakeholders involved: students and their
process of entrepreneurial formation for its families, companies, economy and society as
students, a process that involves the a whole. As a result, the entrepreneurial
following main steps: acknowledgement of university becomes a necessity for the higher
the entrepreneurship as a career option by education system in Romania.
students; evaluating and analyzing the
students inclination to entrepreneurship 4. Methodology
under the system of values they have;
development of entrepreneurial skills; Data was collected using an online
creating the support framework for the platform anonymously in order to minimize
transition of students/graduates to the biases in responses. The participants
entrepreneur status. responses were processed and analyzed using
Taking on the responsibilities specific to Excel 2007 and R 3.0.3 software.
an entrepreneurial university and facilitating
the process presented above can be done by 4.1. Participants
resorting to the following toolkit: lectures
about entrepreneurship, presentation of The participants of the current study are
success stories related to entrepreneurship, 97 students of the University of Oradea
internship, work visits in companies, Faculty of Economics. The gender
simulations of the type create and operate distribution was skewed (79,81% female).
your own business, mentoring programs This is typical for Economics studies in
conducted between representatives of the Romania and in accordance with
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have proposed initially have emerged from through Sectoral Operational Programme for
the students open-ended questions, such as Human Resources Development 2007-2013.
including business plan competitions with Investing in people!
rewards, mentoring and internship
opportunities. 8. References
6. Conclusions [1]http://www.capital.ro/top-50-cei-mai-mari-
exportatori-ai-romaniei.html
We have postulated that the criteria of an [2]http://www.zf.ro/companii/topul-celor-mai-
entrepreneurial university would be related to mari-50-de-exportatori-controlati-de-
an increased entrepreneurial activity. antreprenori-romani-13055492
During our assessment of the University [3] http://www.mediafax.ro/economic/topul-
of Oradea Faculty of Economics students we celor-mai-mari-100-de-exportatori-romani-
cine-a-scos-romania-din-recesiune-8885005#
have uncovered some interesting results.
[4] Schoof, U., Stimulating youth
Firstly there are some aspects of the entrepreneurship, International Labor Office,
university that are in line with the scope of Geneva, Switzerland, p. 34, 2006
the entrepreneurial university. These are a [5] Ernst&Young, Barometrul antreprenoriatului
high level of entrepreneurial intent, some romnesc, 2013.
entrepreneurial activity, interest in education, http://www.slideshare.net/EYRomania20/antr
demonstrated by the fact that almost half of eprenorii-vorbesc-barometrul-
the students seek knowledge in trainings and antreprenoriatului-romanesc-2013
courses outside the formal curriculum and [6] Dearing, R., Higher Education in the Learning
providing, to some extent, models of Society. The National Committee of Inquiry
into Higher Education, Her Majestys
entrepreneurship and even mentors.
Stationery Office, London, England, 1997
There is still much improvement to be [7] http://www.slideshare.net/EYRomania20/baro
had. metrul-educatiei-si-culturii-antreprenoriale-n-
Firstly the students benefit only rndul-tinerilor-2014
marginally from experiences that would [8] Vincent-Lancrin, S,. "The Reversal of Gender
develop their entrepreneurial skills and spirit, Inequalities in Higher Education: An On-
such as internship, mentoring, business going Trend", in Higher Education to 2030.
competitions, trainings from companies and Volume 1: Demography , OECD, 2008, ISBN:
simulations. These are all areas that could 9789264040656
and should be improved with relatively low [9] Arenius, P., & Minniti, M.," Perceptual
Variables and Nascent Entrepreneurship",
costs and a high impact.
Small Business Economics, 24(3), 233247,
Students crave a more practical approach, 2005, doi:10.1007/s11187-005-1984-x
as evident from their responses and attitudes. [10] Nishanthi, H. ,"Analysis of
This could be achieved by a greater Entrepreneurial traits of the Small Business
involvement of active individuals in the owners in Sri Lanka", International Journal of
business environment. More partnerships and Scientific and Research Publications, 4(10),
projects are requested by the students. 17, 2014
We conclude that the investigated [11] Rauch, A., & Frese, M., "Lets put the
university has the bases required to evolve person back into entrepreneurship research: A
into a generator of entrepreneurial activity, meta-analysis on the relationship between
business owners' personality traits, business
however some institutional changes are still
creation, and success", European Journal of
required in order to truly become one. Work and Organizational Psychology, 16(4),
2007353385.
7. Acknowledgement doi:10.1080/13594320701595438
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Accountability, Cornell University program and how to meet them. The aim of
Cooperative Extension and Monica the training is to prepare mentors for their
Hargraves, Manager of Evaluation for activity and to give them suitable weapons to
Extension and Outreach, Cornell University use in the relationship with the mentee -
Office for Research on Evaluation, have instruments and knowledge that give them
defined a four phases in the design and competitive advantage in front their mentee.
revision process [1]: Even if the mentor is an experiences person
a) Developing a Precise Evaluation in terms of competences and performances in
Purpose Statement and Evaluation his job, there is not compulsory to have
Questions knowledge on how to manage a mentoring
b) Identifying and Refining Survey relationship. Mentoring is a difficult task, a
Questions commitment to developing another person; it
c) Applying Golden Rules for is an investment of time, energy and
Instrument Design knowledge transfer. Mentors must guide and
d) Testing, Monitoring and Revising support mentees without obvious help, they
must be the person in the shadows that show
the right path, they must show the mentee
where to look at buy not reveal what to see.
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Rusu Sergiu
Universitatea Aurel Vlaicu din Arad
sergiu.rusu@uav.ro
Isac Florin Lucian
Universitatea Aurel Vlaicu din Arad
florin.isac@uav.ro
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Czek 40 37 22 inexistence of a
Republic dominant employer
Hungary 26 51 51 Financial Cooperating banks,
Romania 87 74 71 access to capital
Ukraine 76 73 89 Of labour Qualification, existence
Source: Master Plan for National Tourism of the professionals in
Development 2007-2026 the field
Of gouvernment Help offered to small
This ranking system comprises of businesses
124 countries and positions each country Of innovation University and
corporate research
compared to all the others, in terms of centers
competitiveness in the tourism sector and Mass-media Attention paid to
travel. That is, each country is given a entrepreneurs and
position in the ranking from 1 to 124, small businesses
according to the criteria set out by the Of working places New businesses set-up
and development of
WEF methodology. Thus, Romania is
small businesses
ranked 76 out of 124, just before Ukraine, Of facilities Life quality, culture,
but after Bulgaria and the other countries recreation
selected. Source: adaptated according to Kotler P., Hamlin
M.A., Rein I., Haider D.H [19]
Table No. 3. Overall ranking of
competitiveness for selected countries There were also observed some negative
Selected country Ranking implications. Harrison and Leitch (1996),
Czeck Republic 35 studying small and medium enterprises in
Northern Ireland, have found that by getting
Croatia 38
employed in their own company
Hungary 40 entrepreneurs might not make a real
Bulgaria 54 contribution, on a long-term basis to really
Romania 76 help to local development. In some
economies, self-employment simply mask
Ukraine 78
the phenomenon of underemployment or
Source: Master Plan for National Tourism unemployment. Especially in poor countries,
Development 2007-2026 in the developing world, there are people
marginalized and forced to offer cheaply
This comparison shows the weak their services to earn a living.[20]
competitive performance of Romania in Romanian legislation defines family
comparison with the neighboring countries, enterprises as businesses created at the
this being on the last position according to initiative of an individual and comprising
the legal framework and business members of his family (husband, wife,
environment and on the penultimate position children over 16 years, and their relatives,
according to human/cultural/natural including distant relatives of the four level of
resources. kinship). It is one of the few definitions of
family business operating the term
"family".[21]
Table No. 4. Characteristics of According to the Global
entrepreneurial tourist destinations Entrepreneurship Monitor Report GEM
From the point of Characteristics:
2010, Romania, together with other countries
view:
such as Brazil, Chile, China, Ecuador,
Economic Openess, fluidity,
Mexico, Russia,Taiwan, Turkey and Hungary
without barriers at
business launch
are among the states with an economy driven
Of social structure Dynamism, mobility, by efficiency and less by innovation.[22]
acceptance of the
outsiders
Of business Competition,
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Sarchizian Sergiu
Ovidius University, Constanta
ssarchizian@yahoo.com
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At the same time the number of new and Romanian economy followed the same
active economic operators from the descending trend during 2008 and 2011.
Table 2. New and active economic operators from industry, construction, trade and other
services, by legal type, in 2008-2012
Enterprises 2008 2009 2010 2011 2012
Autonomous bodies 2 1 0 0 0
Stock companies 221 177 199 105 196
Limited liability companies 80,644 56,525 48,396 48,268 66,414
Other types of non-co-operative companies 259 297 243 229 263
Co-operative companies 30 20 28 13 20
TOTAL 81,156 57,020 48,866 48,615 66,893
Source: Statistical Yearbook of Romania 2012, 2013; National Institute of Statistics
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Cuting costs.
3. Conclusions
4. References
[1] Survey on the access to finance of the non-
financial companies in Romania and their
capacity to cope with adverse financial
conditions, The Romanian National Bank,
June 2014;
[2] National Institute of Statistics, Statistical
Yearbook of Romania 2012, 2013,
www.insse.ro;
[3] The Romanian Work Code brought to date
and republished by the Law nr.12/2015,
Meteor Press Publishing House, 2015
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Tnase Mihaela
Alexandru Ioan-Cuza University, Iai
mihaelatanase22@gmail.com
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Transformational leaders, the ones stronger which is defined as a knowledge society and at
oriented towards intellectual stimulating than the same time, as an organizational society [9].
on the other components, offer challenging Unlike labor, land and capital, knowledge
tasks and give subordinates freedom to define is an asset that is measured on the extent of
their own lines of action. The employees, are use. The more it is used, the more knowledge
encouraged to ask questions, analyze things in becomes more valuable, applicable and
perspective, to find new solutions to old issues effective. Knowledge is considered to be one
and to identify effective ways of fulfilling their of the most important resources of the
tasks. Risk-taking capacity development is organizations that have a role in the transition
stimulated along with organizational learning: from information economy to the one based on
every problem, every contingency is seen as a knowledge.
learning opportunity. The concept of "knowledge-based
Individualized consideration is that specific organization" has its origins in the years 1984-
component of transformational leadership 1988, a period that recorded successive phases
which highlights the leader's ability to pay of crystallization. Holsapple [10] define
attention to personal and professional needs of knowledge-based organization as "a
each team member. It focuses on developing community of conceptual workers,
coaching and mentoring programs, granting interconnected by a computerized
continuous feedback and connecting individual infrastructure."
needs with the objectives and strategies of the Applying his vision, Drucker [11] describes
organization. Transformational leaders have a the main features of information-based
high level of individualized consideration, are organizations as: professional dominant
empathetic and good listeners, they interact component, low intermediate levels of
with each team member, empower, encourage hierarchical management, coordination through
and facilitate the professional development of non-authorative billing, ensured thorough
subordinates. norms, standards and rules of cooperation. One
Bass's model is acknowledged and the most can find specific strategies that define the
used internationally, Podsakoff [8] presented behavior of these organizations [12], namely:
transformational leadership as having six to represent in an inclusive and
coordinates: vision development, labor support, transparent manner knowledge
setting high standards, stimulating creative accumulations of both explicit and implicit
thinking of subordinates and acting as a role nature, accumulations that may exist either
model. at individual or group level or on artificial
The components of transformational supports;
leadership are frequently measured by to be constantly concerned in
Multifactor Leadership Questionnaire. It expanding the knowledge-base by
contains twenty items, built on a Likert scale in stimulating learning and organizational
5 steps, which are distributed in equal numbers innovation and capitalizing on their results;
for each component. The exception is idealized to develop the capacity to transform in
influence which were assigned 8 items instead a smart way, taking into account possible
of 4; they are split evenly in two categories, opportunities, context and transforming
namely: idealized attributes and idealized available knowledge into concrete actions ;
behavior. to acknowledge and assume their own
ignorance.
3. Knowledge-based organizations In the XXIst century, transforming an
organization into a competitive one, requires a
Traditional factors of production - land, particular attention given to knowledge
labor and capital - have not disappeared. But management. Changes in information
they have become secondary. Knowledge is the technology have offered data encoding
only resource really relevant today; mankind is possibilities which have a considerable impact
irreversibly framed in a technological society on the cost of data communication, making it
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increasingly lower, this fact resulting in institutionalized in certain aspects, namely: the
increased transmission of knowledge. foundation of knowledge is understood as the
Knowledge-based organizations are the main resource of the organization's intellectual-
intelligent collective actors of information intensive processes and is essential for the
society with an important role in its assertion to operation and achieving the goals of the
the knowledge society; belonging to the organization.
contemporary reality in both their professional
management environment quality and also as 4. Aspects of the influence of
the object of scientific research and strategic transformational leadership on knowledge-
projects, marking the convergence of two based organizations
phenomenons that define the human nature -
knowledge and the organization - into an In knowledge-based organizations,
emblematic social construction of ideas transformational leaders stimulate intelligence,
regarding collective responsibility, sustainable introduce a new vision, and recognize the
performance and intelligent action [13]. merits of subordinates [14].
For proper operation of knowledge-based Leaders who possess high idealized
organizations which have a significant role in influence always have a great desire to get
the processes encountered in the phrase "3 I": involved in activities at work, taking risks and,
innovation (creating new knowledge), learning therefore, they become the most influential and
(assimilation of new knowledge) and effective managers [15]. Alternatively, these
partnership interactivity referring to leaders involve subordinates in decision
knowledge. making process, give them autonomy and
A knowledge-based organization focuses on promote innovative behaviors through self-
two interconnected processes that support the efficacy [16]. On the other hand, this kind of
core activities, namely: capitalize / efficient use empowerment improves organizational
of existing knowledge and generate new performance [17]. Podsakoff et al. [18]
knowledge, thereby aiming at: conducted an exploratory study in 1539 which
a) transfer of knowledge horizontally or had a very interesting finding: the employees
vertically, so that any information / knowledge with more knowledge and experience are those
coming from a sector of the organization can who have more confidence in their leaders.
be applied in activities taking place in the other Leaders who possess a high inspirational
sectors; motivation, influence subordinates to define
b) transfer of knowledge over time, so that their own vision and help them achieve better
organization would benefit from previous performance within the organization [19]. On
experiences; the other hand, transformational leaders
c) collaboration between employees, inter- and develop team spirit, enthusiasm, optimism,
intra- departmental, aimed to create encourage and support subordinates.
knowledge; Leaders which stimulate subordinates
d) providing opportunities and incentives for intellectually, encourage them to solve
experimentation and learning. problems in new and different ways [20]. At
In terms of efficiency, managers and the same time, these leaders stimulate
subordinates of successful organizations will employees' ability to analyze and solve
be involved in the innovation and design organizational problems.
process of a product, its removal from the Another characteristic of transformational
market and improving the product's quality. leaders, individualized consideration, supports
In relation with the economic environment, subordinates in fulfilling their individual
a knowledge-based organization, according to expectations [21]. Equally, through individual
the triangle of sustainability, has the following examination, leaders promote interpersonal
components: competitiveness, eco-efficiency, relationships among subordinates, in order to
and individual and organizational performance. avoid conflicts and ensure increased
Organizations that focus on knowledge are productivity within organizations. At work,
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transformational leaders promote and efficiency and customer relations services and
encourage innovative behavior and quality creates a sense of responsibility to subordinates
[22]. However, Alimo - Metcalfe [23] argued towards the organization and changes.
that leadership skills can not predict
organizational performance. 6. References
Transformational leaders in knowledge-
based organizations contribute to obtaining the [1] Burns, J.M. Leadership. New York:
following results: Harper&Row, 1978.
introduction or extensive and intensive [2] Bass, B., Leadership and performance beyond
use of knowledged-based management; expectations. New York: Free Press, 1985.
[3] Robbins, S.P., Odendaal, A. i Roodt, G.,
stimulating subordinates on all
Organisational behaviour: Global and Southern
hierarchical level ; African perspectives. Cape Town: Pearson,
offering products / services that 2009.
encompass a large volume of [4] Avolio, B.J. i Bass, B., Manual for the
knowledge; Multifactor Leadership Questionnaire (Form
developing intellectual capital of the 5X). Redwood City, CA: Mindgarden, 2002.
organization; [5] Wan Omar, W. i Hussin, F., Transformational
achieve competitive advantage by leadership style and job satisfaction
intensive harnessing of knowledge. relationship: A study of structural equation
Transformational leaders generate different modeling (SEM). International Journal of
Academic Research in Business and Social
ways of thinking, adopt new opportunities or
Sciences, Vol. 3, Nr. 2, 2013, pp. 346-365.
seek solutions to problems, generate [6] Hemsworth D. et al., Examining Basss
exploratory thinking processes. They also Transformational Leadership in Public Sector
contribute to intrinsic motivation, inspiring and Executives: A Psychometric Properties Review.
stimulating the need to be better, which leads Journal of Applied Business Research, Vol. 29,
to creativity. They serve as role models and Nr. 3, 2013, pp. 853-862.
guides, leading to articulate a vision of joint [7] Hu H., Gu, Q. i Chen, J., How and when does
innovation [24]. Transformational leaders transformtional leadership affect organizational
promote organizational innovation [25]. On the creativity and innovation? Critical review and
other hand, in order to achieve their vision, future directions. Nankai Business Review,
Vol. 4, Nr. 2, 2013, pp. 147-166.
transformational leaders encourage the use of
[8] Podsakoff, P., Mackenzie S., and Bommer
technology, such as internet and intranet, and W.,Transformational leader behaviors and
support subordinates to effectively learn to substitutes forleadership determinants of
search for information [26]. In addition to this employee satisfaction, commitment, trust and
aspect, Crawford [27] found, in a study of organizational citizenship behaviors, Journal of
1,046 participants that transformational leader Management, 22,1996, pp. 259298.5.
behaviors are positively correlated with [9] Drucker, P.,The new society of organizations.
documentation and knowledge creation. Harvard Business Review, 70(5): 95-104, 1992.
[10] Holsapple, C.W., Whinston, A., Knowlwdge-
5. Conclusions based organisations Information Society, 5(2),
1987, pp.77-90.
[11] Drucker, P., The coming of the new
To conclude, after studying the literature, it organization. Harvard Business Review, 1988,
can be affirmed that transformational pp. 45-53.
leadership contributes to the development of [12] Zack, Michael H., Developing a Knowledge
knowledge-based organizations on multiple Strategy, California Management Review,
levels such as: supports innovation and No. 41,1999, pp. 125-145.
collaboration, encourages organizational [13] Dragomirescu, H.,Organizaii bazate pe
learning, attracts human and social capital cunoatere: Studiu tematic elaborat n cadrul
development and increases productivity. The proiectului prioritar Societatea informaional,
presence of transformational leaders in societatea cunoaterii al Academiei Romne,
Bucureti, 2001.
knowledge-based organizations increases
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[14] Rafferty, A. E., & Griffin, M., Dimensions of knowledge management, Journal of Knowledge
transformational leadership: Conceptual and Management, Vol. 9 No. 6, 2005, pp. 6-16.
empirical extensions. The Leadership Quarterly
15(3), 2004, pp.329-354. *Acknowledgement. This paper is supported
[15] Bass, B.M. and Riggio, R, Transformational by the Sectorial Operational Programme
Leadership, Lawrence Erlbaum Associates, Human Resources Development (SOP HRD),
Mahwah, NJ, 2006. financed from the European Social Fund and
[16] Scott, S. and Bruce, R., Determinant of
by the Romanian Governement under the
innovative behaviour: a path model of
individual innovation in the workplace, contract number POSDRU/159/1.5/133675
Academy of Management Journal, Vol. 37 No.
3, 1994, pp. 580-607.
[17] Amabile, T.M. and Gryskiewicz, S, Creativity
in the R&D laboratory, Technical Report No.
30, Center for Creative Leadership,
Greensboro, NC, 1987.
[18] Podsakoff, P., Mackenzie S. and Bommer W.,
Transformational leader behaviors and
substitutes for leadership determinants of
employee satisfaction, commitment, trust and
organizational citizenship behaviors, Journal of
Management, 22, 1996, pp. 259298.5.
[19] Nemanich, L. and Keller R.,Transformational
leadership in an acquisition: a field study of
employees, The Leadership Quarterly, Vol. 18
No. 1,2007, pp. 49-68.
[20] Yukl, G., Leadership in Organizations, Pearson
Prentice-Hall, Upper Saddle River, NJ, 2006.
[21] Rowe, W.G., Cases in Leadership, Sage
Publications, New Delhi, 2007.
[22] Krishnan, V.R., Leader-member exchange,
transformational leadership, and value system,
Electronic Journal of Business Ethics and
Organization Studies, Vol. 10 No. 1, 2005, pp.
14-21.
[23] Alimo-Metcalfe, B., Alban-Metcalfe, J.,
Bradley, M., Mariathasan, J. and Samele,
C.,The impact of engaging leadership on
performance, attitudes to work and wellbeing
atwork a longitudinal study, Journal of Health
Organization and Management, Vol. 22 No. 6,
2008, pp. 586-98.
[24] Senge, P., Roberts, C., Ross, R., Smith, B.,
and Kleiner, A., The Fifth Discipline
Fieldbook. New York: Doubleday, 1994.
[25] Yahya, S. and Goh, W., Managing human
resources toward achieving knowledge
management, Journal of Knowledge
Management, Vol. 6 No. 5, 2002, pp. 457-68.
[26] Madzar, S., Subordinates information inquiry:
exploring the effect of perceived leadership
style and individual differences, Journal of
Occupational and Organizational Psychology,
Vol. 74 No. 2, 2001, pp. 221-32.
[27] Crawford, C., Effects of transformational
leadership and organizational position on
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Alexandru Ioan Cuza University of Iai
mihaelatanase22@gmail.com
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ways. This helps create the essential abilities leader must use verbal and nonverbal
for improvement of organizational expression, also must speak from the heart
performance [5], [6]. The psychological and actively listen to followers as he/she
profile of leaders could directly affect the appeals to shared aspirations [11]. In the
performance of the organizations they are second category, the leader's behavior,
active in [7]. Trait theories assume that challenging the process and enabling others
successful leaders are born and that they have to act, is focused on organizational
certain innate qualities which distinguish challenges and outcomes. The leaders
them from non-leaders [8]. actions are directed towards helping
Research into leadership has gone through followers maximize their performance as
periods of skepticism, recent interest has well as to achieve organizational goals. Other
focused on the importance of the leadership's attempts to examine leaders effectiveness
role to the success of organizations .Leaders were made [12] and this has been categorized
effectiveness comes from four sources: into two dimensions: initiating structures
(a) the level of power and influence (include activities like planning, organizing,
possessed by the leader; defining the tasks) and consideration
(b) how the leader interacts with others; (recognition, work satisfaction, and self-
(c) the leaders personal qualities; and esteem) that have a direct influence on their
(d) the situation in which the leader is asked performance. Other researchers identified
to lead [9]. these two dimensions as effectiveness and
A leader was expected to play a different efficiency, and instrumental and expressive
role than the roles enacted by other members needs [13].
in a group [10]. Hierarchical organizations Kozlowski, Gully, et al. [14] suggest a
depend on leaders in formal authoritative wide range of behaviors that are needed for
roles to coordinate actions to achieve leading teams. Their list includes developing
organizational goals and results. shared knowledge among team members,
In recent years there has been a growing acting as a mentor, instructing others,
interest in the nature of character and facilitating group processes, providing
character education. Many people today are information, monitoring performance,
familiar with the Character Counts!(sm) promoting open communication, providing
program of the Josephson Institute of Ethics. goals, and allocating resources efficiently.
That program has been adopted by a number Another set of skills are needed for
of schools and communities nationwide and democratic leadership: the ability to lead
teaches core values which they call Six participative meetings, listening, the ability
Pillars of Character. Those six particular to handle conflict, measurement and decision
character values are: trustworthiness, respect, making skills, teaching and team building
responsibility, fairness, caring, and skills.
citizenship. Character refers to deep Another study and several meta-analyses
structures of personality that are particularly found significant relationships of the Big
resistant to change. Five traits with different leader behaviors and
Kouzes and Posner find that exemplary with leader effectiveness [15]; [16]. Although
leaders practice five behaviors: Challenging relationships between personality and
the Process, Enabling Others to Act, leadership typically do not tend to be high,
Inspiring a Shared Vision, Encouraging the meta-analyses do show they are consistent
Heart, and Modeling the Way. These and provide stable effects [17]. The
behaviors were grouped into two categories, theoretical review, [18] suggests there is
one that concerns relationships and one that likely to be a link between leadership and the
concerns performance. Big Five traits.
In the first category, the leader's behavior, Another leader characteristic that has been
which models the way and encourages the studied in the past is the leaders experience.
heart, is focused on attributes that a leader As noted, studies in this subject have focuses
uses to build and strengthen relationships more in how the organization strategy is
with followers. Another characteristic, related to the leaders experience, rather than
inspiring a shared vision, also concerns how the experience of leader might be an
relationships because in order to practice it, a
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influencing factor for the organizations post is available on the mechanisms for
performance. transforming organizational learning into
Result suggests that organizations will performance [23]. It is not wrong to state that
benefit more by hiring executive with a leaders characteristics (knowledge, critical
specific knowledge, who will have an capacities, skills) always increase
important advantage in terms of specific performance (e.g. return on assets, equity or
know-how needed in some occasions to sales), since learning always improve an
achieve a particular strategic objective. organizations results. Personality traits are
Warren B. [19] made a short list in his often understood as dispositional motives
book, On Becoming a Leader, in which he utilized during goal attainment. That is,
identifies, vision, inspiration, empathy and personality characteristics predispose humans
trustworthiness as key characteristics of to behave in certain ways, given particular
effective leaders (p. 140). situations, to accomplish certain goals [24].
Hypothesis 1. Leaders characteristics Five items have been found repeatedly
relate positively to organizational through factor analyses and confirmatory
performance. factor analyses across, time, contexts, and
cultures. They are labeled as the Big Five:
2.2. Knowledge-based organizations and (a) Extroversion, (b) Agreeableness, (c)
performance Conscientiousness, (d) Emotional Stability,
(e) Openness or Intellect. Although
Phrase knowledge workers was first evolutionary personality theory can provide
used by Peter Drucker and then researchers theoretical justification for leaders
and theorists have become increasingly characteristics as predictors of success and
concerned with the expansion and the knowledge, it can also explain the
management of organizational knowledge. In performance of knowledge based
the literature there are numerous definitions organizations.
of the knowledge based organization. One of Also, Mendez S. [12] has found six
these, integrates four dimensions, and characteristics witch are common to
according to its author, the degree to which successful leaders of knowledge-based
knowledge is an integral part of a company is organizations: being visionary, valuing
defined not by what the company sells but by human resources, communicating and
what it does and how it is organized [20]. listening effectively, being proactive and
Organizational knowledge represents the taking risks. Jones and Olken [25] showed,
firms intellectual capital and is both a source using various methods, that the quality of
of current and future earning [21]. The most leaders matters for growth.
important determinant of a firms survival, is Knowledge-based organizations, normally
the opinion of Druker is the firms ability to perform better due to greater breadth, depth
recognize and manage organizational and speed. Taking this time lag into account,
knowledge. Knowledge is the key resource we propose the following hypothesis:
capable of creating sustainable and Hypothesis 3. A leader's characteristic
competitive advantages: valuable, rare, facilitates higher levels of knowledge in
inimitable and non-substitutable. Knowledge organizations.
resources include: worker know-how, Hypothesis 4. Knowledge management
product designs, customer knowledge and capacity mediates the relationship between
efficient processes [22]. leaders characteristics and organizational
Hypothesis 2. Knowledge-based performance.
organizations are associated with higher
levels of performance. 3. Research methodology and measures
2.3. Leaders characteristics and The present study analyzes the impact of
knowledge-based organizations leaders characteristics on performance in the
knowledge-based organizations.
The influence of leaders characteristics on Dependent variabiles (Y) are leaders
knowledge-based organizations should be characteristics .
analyzed empirically, since little knowledge
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Trasca Elisabeta
Tomis University of Constanta
elyza_tr@yahoo.com
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who left their villages where they were born, tourism potential of natural and human
to continue their education or to find a better villages.
job in cities, and come here Children show Hunting and fishing tourism - is based on
their native places, traditional customs, existing hunting fund of municipalities
concerns and pursuits villagers, children and Rasova Central Dobrogea area, Seimeni and
youth, eager to know some activities related some lakes (Lake Baciu). Grassland and
to animal husbandry and care, city dweller shrubs favor attracting tourists to the
who wants to escape from daily stress, to characteristic activity segments. Fund include
spend the holidays in an environment clean rabbits and wild boar hunting or fishing
and have a healthy diet, high income earners various possibilities (Lake Baciu, Danube),
who want to try something new and usually areas where you can practice riding,
are families with children who wish to offer encouraged segment and the quality of
an attractive and cleaner for spending the landscapes (Horia, Haidar's Valley).
holidays, people with low income who can Eco-tourism and scientific - is a variant of
not afford to spend vacation in a destination diversifying tourism activities and
urban, coastal or otherwise, any person commercialization of other tourism
wishing to relax, practice sports in a natural resources.. The type of tourism with the
and enjoyable, and those people who want highest growth trend in recent years
learn a few secrets of crafts (weaving, internationally. The literature is also called
spinning wool, fishing, coopers, etc.). ecotourism and practice especially in
Provision of tourism services depends on protected areas: national parks, nature
each client, his expectations, needs and reserves, landscape.
opinions and how well prepared is the staff.
Tourists want quality service, excellent 4. Sustainable tourism development in
local guides, wanting to travel to small municipalities of Central Dobrogea
groups are interested in educational
programs, quality food products based on Municipalities of Central Dobrogea are
natural, uncrowded areas, quality known for extremely high agricultural
accommodation and are sensitive to nature potential, which causes increased chances to
conservation issues. practice one of the most attractive forms of
tourism.
3. Tourism forms characteristic of the area In the analyzes, the municipalities of
Central Dobrogea must be identified
Cultural tourism traveling - with several solutions that lead to the development of
subtypes, depending on the main cultural agritourism destinations and / or ecotourism
categories covered displacements (religious in which a product is offered agro /
pilgrimage, ethnographic, archaeological, ecotourism integrated result of partnerships
etc.) is a type of tourism representative made by the actors involved (public
municipalities in Central Dobrogea and at the administration, local community, private
same time high perspective. The relative investors) and promoted both by the effort of
dispersion in the territory involves a network development associations (eco) tourism
of communication paths tidy, which is not the developed locally and through the efforts of
case in many of the villages of Central central governments, through various ways
Dobrogea (eg Casimcea and villages and methods:
Rahman, Razboieni, Corugea, Tortoman and Development of the Enterprise and
village Drop, Mircea Voda Ciocirlia and Information: arranging visitor centers -
villages Gherghina and Tibrinu). equipped with presentation rooms of
Infrastructure problems reduce access to different exhibits from the protected area, the
some sights and for that reason many do not design of slides and films on the area of
or can not be included in the basic package deployment of social activities-cultural.Tot
tours, remains as forms of individual or here to be organized Visitors group, contact
group travel. field guides, collection fees visitation specific
Rural tourism - tourism embraces all trade area and the tourist maps, brochures,
activities carried out in rural areas, aimed at albums, souvenirs; setting up information
points in the main access places in the area
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(town hall, school, church, police); importance lies and the effect of stimulating
establishment of local information centers the local economy. It is necessary to adapt
and tourist promotion; development of the principles of ecotourism services
special paths (thematic, equestrian, bicycle, Entertainment - minimal impact on the
photo-Hanting - with resting areas, bulletin natural environment, exploitation of local
boards and interpretative guidance arrows; resources, sustainability, preservation of
arranging tourist routes depending on the traditions. In this respect it is necessary to
tourist potential of each joint or joint diversify the supply of leisure: bike rental,
operation of sightseeing in neighboring riding centers, tennis rounders (the national
communities, arranging points (pavilions) sport), carriage rides and sleigh, participation
observation and lookout points - with panels in farm activities glycols, etc., improving
of interpretation, observation infrastructure quality tourism experience - Creating Product
(Rasova, Seimeni); setting up campsites - / integrated ecotourism programs.
with delimitation, information boards and Cooperation between local stakeholders is
warning, fire hearths, toilets (Horia, Tibrinu key to effective ecotourism activity. Each of
of common Mircea Voda village, township them may specialize in a particular direction
Seimeni); arrangement of parking places (leisure, transport, accommodation and food
close access to sights - with toilets, waste etc.), but only together can provide a
management system, information boards and complete and competitive package.
warning; location indicator panels, In these circumstances it is necessary to
informational, warning, promoting parks. offer an integrated approach to both tourists
Making a guide to good practice in terms and the manner of its organization in order to
of tourism infrastructure, given the minimal achieve tourist programs with a slower rate
impact of design, waste management and of visits, diversified, to polarize the main
energy conservation; providing the necessary resources under the destination, tourism
maintenance and perpetuation of traditional product integration in -a unified concept by
customs, development and promotion of developing a slogan and a logo to the
traditional customs. This is one of the key destination unit, elements that will be used
elements that bring added value to the for all promotional activities at the
tourism product. To implement this action destination, the realization of "cards (eco)
would be necessary to select certain habits tourism", through which it will provide an
(related to winter holidays, farm work, opportunity for input multiple objectives, and
harvest day, festivals, etc.) or certain free / discounts for access to other tourist
traditional crafts in the area and support attractions located in the adjacent park
artisans and communities to continue (museums, castles, memorial houses, etc.)
traditional activities and to establish the link and cuts to services of accommodation, food,
between them and tourism. Is required to transport and recreation; creating innovative
encourage and support these activities products at ecotourism destination. Within
because they are not very productive, these products will be used all the
economically efficient in terms of opportunities offered by tourism destination -
contemporary civilization. Also, they must be hiking and nature activities (canoeing,
properly and promoted. In this way you can horseback riding, climbing, observing
create custom recovery centers for traditional animals, cycling, etc.), visiting tourist
(folk dance ensembles, choir, orchestra of sheepfolds, cultural sightseeing, participation
folk music, groups of singers and in agricultural activities and craft of the local
exploitation of traditional crafts - processing households, participation in local events.
wool, wood, stone, leather, rachitaritul, etc.) The purpose of this study on the
Encourage the development of leisure possibility of development in terms of
services with minimal impact on the natural tourism, the communes of Central Dobrogea
environment is an important component of will be focused on the following objectives:
leisure stay, often the main motivation for to increase the importance of tourism in the
travel to a particular destination. It is the local economy; to diversify the local
surest way to increase the length of stay for economy and increase the number of people
leisure diversification leads and increase the employed in tourism; to develop harmonious
level of satisfaction of tourists. Particular and sustainable municipalities in Central
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Dobrogea; Central Dobrogea transformation on the other hand is a disadvantage, since this
into a recognized tourist destination; to makes it difficult polyvalent coherent
preserve local identity communes in strategy to promote tourism valences of all
Dobrogea (architecture, lifestyle and local the communes of Central Dobrogea, each
traditional products, etc.). characterized by specific other.
To meet these requirements can be
5. Conclusions and proposals developed and promoted, the following
activities are required in municipalities in
Absolutely remarkable tourist potential Central Dobrogea GAL: bird watching in
emerging tourist profile of the municipalities villages Rasova, Seimeni Cross; viewing
of Central Dobrogea can be defined by wildlife in Horia, Cave, hiking / thematic
diversity and multiculturalism. programs in common Mircea Voda, Seimeni,
The variety and density of landmarks can Casimcea; Riding in Horia, Ciocirlia Cross;
be grouped into: cultural areas - focusing on visiting caves, wind park in the village Cave;
architecture, religion, history; main other outdoor activities: bike ride, carriage
landmarks are the monasteries, churches, rides, visits to traditional housing in villages
reminescentele city, museums; a particle size Saligny Saraiu, Tortoman, etc..
in terms of cultural traditions and crafts is
represented for the purposes of maintaining 6. Motions
them; natural areas - are related to the whole
picturesque landscapes, wildlife reserves; Development of infrastructure for
mixed or complex areas - where overlap or ecotourism;
complement the two previous versions. An Construction or rehabilitation of housing
example of this would be added as the for the function of the pension. Their
traditional agricultural products, which architecture should be take into account the
combine in a happy suitability natural factors local style of houses with porch. If pensions
of human activity, marked by the spirit of will develop in older homes, in addition to
preserving traditions.[2] the necessary facilities and traditional look to
In rural areas it put a better use of land, be;
development of services (crafts, tourism, Pensions should offer tourists menus from
public sector, trade, etc.), keeping the natural products from the household;
defining elements of how to construct The existence of farms that practice
buildings, existing architectural style, the organic farming in the area;
development of models for making catalogs Building bird watching towers and
new building intended for housing or tourist wooden paths;
activities (household annexes, warehouses, Building bird observatories, preferably
stables, warehouses etc.). with a clear view of the Danube and the
From this perspective, the types and forms banks that are not easily eroded to avoid their
of tourism that can be practiced in the destruction during periodic floods of the river
villages of Central Dobrogea are numerous (where it identifies the silt deposition) in
and blends very much, which is a good thing, Seimeni and Rasova possible. Thematic
but it requires a lot of attention and routes should be marked.
selectivity in the presentation and promotion The tourist routes will need to be
of tourism products. Multiculturalism has compelling;
made its mark on the economic, social and Making a regulamement for tourists. It
cultural diversity contributes to the high can have a size of 20 x 12 cm folder in which
current density and grouped targets restns to specify rules that tourist must meet in
space, which constitutes another advantage in order to protect nature but also for their own
terms of tourism recovery. safety. Rules will be made available to
Communes Central Dobrogea are and tourists in hotels, visitor centers, tourist
remain a versatile destination in terms of the information centers or by guides.
incentives for tourists and interests that Conducting training for guides
categories of tourists that can be drawn are specializing in ecotourism. Like other
heterogeneous. On one side is an advantage categories of tourists opting for eco-tourists
due to higher chances to attract more tourists, not only want to visit a certain place but also
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to learn more about it and to know spirit in Horia, Festival plum jam Saraiu
nsiguran. Courses for guides specializing town, Celebration pie school in the village
in ecosturism be performed by specialists to Mircea Voda, etc;
familiarize students with general aspects of Considering all these aspects can say that
the activity guide with ecotourism principles, the emergence and development of
points of interest and species of the area and settlements in the near future will be sized
how to ensure the safety of tourists due to the tourist valence of detailed knowledge of the
presence wild animals such as wild boars. Of carrying capacity of the environment,
course, the courses will cover not only the resources that could be used and exploited
village but the rest of the participant for tourist services. Avoid destruction of the
surrounding natural areas that may be subject old built heritage, natural wildlife areas, the
agritourism activity. It is not recommended development of large blocks built, uprooting
to make those type courses and distance people from one place to another, loss of
learning guides should familiarize themselves cultural identity.
with the various situations that may occur in Any tourist development is based on an
the field. Not much can opt for a mixed analysis of detail that gives at a time, a
variant, the theory can be accessed via the certain image of territory and its full tourism
internet but there 2-3 field visits. potential of all its features, expressed by:
For tourists to spend more time in the area Real Image Project Physical Planning.
of agro packages may be included in A project proposed for the recovery of
ecotourism packages for Natura 2000 sites of tourism resources can be by setting the main
the village Seimeni or can be combined with objectives and propose viable solutions a real
other forms of tourism such as rural tourism, long term development and tourism planning
rural tourism and cultural tourism. Also can model. Based on actual knowledge of the
develop packages in partnership with Natura reality of Central Dobrogea and suggest local
2000 sites in other neighboring towns as communities can create multiple spatial
well: models, to be chosen the best solution
Agrotourism Package for researchers / offering management and tourism
students - at least 5 days package - development of a territory.
accommodation in a boarding house or
camping with low prices and transportation 7. References
to destination;
Package weekend or 2-3 days - [1] Bran F, Simon T, Nistoreanu P., Ecotourism,
accommodation in hostels or agrotourism Economic Publishing House, Bucharest.,
houses, insurance, transport, organizing a 2010
picnic on the Danube, an optional boat ride in [2] Buciu Mihalteanu Thesis C- Dynamics
villages Rasova, Seimeni; countryside in Dobrogea, ASE Bucharest,
2012
Trips organized by tour operators in
[3] Miu F., S. Simoni, Ecotourism and rural
Constanta for other tourists; tourism, University of Pitesti, 2010,
Day trip with picnic visited town or [4] Nistoreanu P .. Rural, CHBeck Publishing,
participation in local events such as days of Bucharest, 2010.
the village, the church patron, holiday [5] Smith PG - Thesis Dobrogea- cultural
sweets, (common Ciocirlia); geography studies, ASE Bucharest 2012
Excursions for students in Constanta [6] Trasca E. Tourist potential of the
County and other areas of the country - day municipalities of Central Dobrogea, Ed St.
trip, with observation of birds visiting the Nicholas, Braila, 2013
farms or livestock, rural households and
picnic table or provision of traditional
products of the farm housewife visited;
Packages a week in combination with
other types of tourism: tourism, cultural
tourism, etc. - with visits to churches,
archaeological sites, optionally other
attractions in the area: Acacia Flower
Festival in common Cave Festival Acacia
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Utureanu Simona
Ovidius University from Constanta, Faculty of Economic Sciences
simonautureanu@gmail.com
Dragomir Cristina
Constanta Maritime University, Faculty of Navigation and Naval Transport
cristina.dragomir@cmu-edu.eu
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Stone [7], H.G. Martinez and W.X. Lu [8] , managers, workers, clients and
N. V. Jasti and R. Kodali [9] and others. community.
5. Finally, a particular constraint was the
2. Review on Lean tools used for process lack of access to observations made at
improvement in manufacturing Romanian companies who
implemented Lean, especially at
In this paper is made a review on 15 Lean companies running in the Romanian
tools used for process improvement in maritime domain (e.g. shipping
manufacturing. The methods used in the companies or shipping yards), taking
study are comparison and literature review of into account that the research
more than 20 basic and updated sources specialty of the author is maritime
regarding Lean knowledge, available on transport. This situation is the result
paper and in electronic format. of the fact that Lean is less known
The Lean tools review is presented on a and/or applied by Romanian
tabelar structure adapted to the work Top 25 companies compared to other
Lean Tools made by Vorne Industries Inc. countries. There are several
[10], an American company providing commercial Romanian institutions
productivity enhancing solutions. The and associations (e.g. Asociatia
company was rated with a financial strength Expertilor Lean din Romania),
indicator of 3A1 by Dun & Bradstreet world academics and Lean specialists who
database of business information, having a have already put the cornerstone of
tangible net worth above 7 million in 2012. Lean in Romania, though at the
The review work encountered several moment of March 2015 the author of
constraints: the paper cannot present a clear
1. The list of Lean tools is statistics of the number of Romanian
comprehensive but in this review we enterprises that implemented Lean.
focused only on a number of 15 Lean
tools. We will further expand this Following are enlisted 15 Lean tools
review. reviewed, comprising their description and
2. There were encountered difficulties in their characteristics [1, 10-14, 16-25].
understanding some Lean concepts.
When considering Lean knowledge, 1. 5S Check List
one should keep in mind that Lean has 5S is a workplace organization method,
Japanese origins and that the Asiatic synthesized by the following phases:
culture differs much from European - Sort (eliminate that which is not needed);
or American culture. Over the years, - Systemize (organize remaining items);
Lean was translated in English, more - Sanitize (clean and inspect work area);
or less accurately, by various - Standardize (write standards of the best
practitioners. practices in the work area);
3. Same lean tools used in - Sustain (regularly apply the standards,
manufacturing and promoted by Lean perform audits and training).
specialist are sharing different names, -Two additional S can be added: Safety
depending on the quality of the and Security
translation of the original concept. - Helps to measure and evaluate the
Paradoxically, one can consider that implementation of the 5S in the company;
this situation creates waste of time - serves as an audit checklist for
and resources in the endeavor of evaluating the system;
reviewing the lean tools database. - helps monitor and manage improvement
4. Lean tools applied in similar over time;
situations can lead to miscellaneous -contributes to continuous improvement;
results. Implementation of Lean - helps monitoring waste removal (e.g.
depends on many variables, ranging wasting time for looking for a tool or a spare
from elements regarding culture part);
(national and regional), business -Consist in a list of questions with answer
environment up to mentality of scores from 0 to 5. The answers can be
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marked easily in the list there where the score number of operators, inventory levels and
is appropriate. The check list will be cycle time of processes.
completed by employees, area supervisors The Diagram can be made by going
and any other significant people. Questions through the following steps:
vary from sharing opinion related un-needed - Process observation at the place where
items in the area, implemented 5S, the work is done (gemba).
documented standards, safe work practices, - Sketch of the Major Steps of the Process
work instructions, continuous flow, quality (one block for each sub-process and a brief
control, training, employee engagement etc. description in each Process Box;
The check list contains blank spaces for - Minimal information for each Step (Who
additional comments on each question. does it? Where? How much inventory? etc.)
- Cycle time observation
2. A3 Gemba Interview -The Block Diagram is used together with
-Questions asked when interviewing workers, other Process Analysis Tools.
to systematically encourage both the observer - The ultimate objective of the Block
and the process worker to come up with Diagram is to actually improve the process.
creative ideas;
-A3 means more than the international- 5. Bottleneck Analysis
accustomed size of 297x420mm paper: is a -Identify which part of the manufacturing
resume or a sort of complex diagram that process limits the overall throughput and
can be adapted to any person, no matter the improve the performance of that part of the
layout or style used, but containing logical process.
sequences and paragraphs, linked one of - Identify the causes of bottlenecks in the
another; manufacturing process;
-the tool is useful for realizing Lean Ideals - Focus to critical issues and priorities to
by applying the Toyota 4 Rules In Use address;
proposed by Spear and Bowen; - Finding solutions for bottlenecks
- The questions aim identifying the improve the performance of the problematic
following: standardized work, ambiguity part(s) of the process;
removal, uninterrupted flow, development of - Related to Theory of Constraints.
leaders who can apply scientific method s to - Improving overall throughput.
improve anything;
- Identify all types of waste 6. Continuous Flow
- Thoroughly explore all possibilities to Minimal buffers between steps of the
accomplish lean objectives and apply the 4 manufacturing process;
Rules In Use. -Moving products through a production
system without separating them into lots
3. Andon [14]. Eliminate many forms of waste
- Visual and/or audio notification system (inventory, waiting time, defects, over-
used in manufacturing that alerts processing, transport, un-utilized people etc.)
management, maintenance and other workers
when assistance is needed, indicates 7. Gemba walks
production status and empowers operators to - In Japanese, Gemba / Genba means the
stop the production process when appears a real place where value is created.
quality or a process problem. - One of the - Gemba walks refers to visits in the plant
principal elements of Jidoka quality-control in order to see the actual processes where
method pioneered by Toyota as part of the value is created -Involves: plant
Toyota Production System; observations, talks with employees to
- Acts as a real-time communication tool understand their work, asking them questions
- Brings immediate attention to problems and learn about their work activities [16].
as they occur in order for prompt action. - Executives should spend up to one hour
every week or two gemba walking with a
4. Block Diagram Lean teacher (sensei or coach) for half a
- Visual representation of a process, year- one entire year after which they should
showing the major steps, their sequence, regularly gemba walk on their own in order
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to maintain the disciplined adherence to Lean -Eliminates waste from inventory and
thinking [17]. overproduction. Can eliminate the need for
physical inventories (instead relying on
8. Heijunka (level scheduling to reduce signal cards to indicate when more goods
variation) need to be ordered) [10].
- Represents a form of production
scheduling that purposely manufactures in 13. KPI (Key Performance Indicator)
much smaller batches by sequencing -Metrics designed to track and encourage
(mixing) product variants within the same progress towards critical goals of the
process [10]. -Production leveling organization. Strongly promoted KPIs can be
- The goal is to produce intermediate extremely powerful drivers of behavior so
goods at a constant rate so that further it is important to carefully select KPIs that
processing may also be carried out at a will drive desired behavior
constant and predictable rate in order to -The best manufacturing KPIs:
reduce fluctuations in performance. Are aligned with top-level strategic
-Reduces lead times (since each product or goals (thus helping to achieve those goals)
variant is manufactured more frequently) and Are effective at exposing and
inventory (batches are smaller). quantifying waste (OEE is a good example)
Are readily influenced by plant floor
9. Jidoka (Autonomation) employees (so they can drive results) [10]
-Design equipment to partially automate
the manufacturing process 14. Machine Balance Chart Template
- Partial automation is typically much less -Template used to ensure that the Machine
expensive than full automation Cycle Time for any machine does not exceed
- Automatically stop when defects are the Target % of Takt time established for one
detected process [11].
- Workers can frequently monitor multiple -Highlights the cause of the problem of
stations (reducing labor costs) and many exceeding Takt Time in the case of
quality issues can be detected immediately equipment that runs automatically without
(improving quality)[10]. operator intervention.
In the template are mentioned: the name
10. Just-In-Time (JIT) and type of the machine, time marked for
-Pull parts through production based on load, unload and start, longest change over
customer demand instead of pushing parts time, smallest batch size, change over cycle
through production based on projected time, lost time, effective machine cycle time,
demand; Takt time and targeted Takt time with
- Reduce inventory distinct mention of the Takt rate of
- Improves cash flow accomplishment.
- Reduces space requirements[10].
15. Muda (Waste)
11.Kaizen (Continuous Improvement) - Tool of identifying anything in the
Strategy where employees work together manufacturing process that does not add
proactively to achieve regular, incremental value from the customers perspective;
improvements in the manufacturing process; - identifying concrete solutions of muda
-Combines the collective talents of a removal. [10] There are 7 types of muda
company to create an engine for continually resulting from processes of over-production,
eliminating waste from manufacturing processing, transport, waiting-time,
processes [10]. inventory, motion and defects.
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2011
[22] Womack, J.P., Value stream mapping,
Manufacturing Engineering, Society of
Manufacturing Engineers (publishers), vol.
136, Issue 5, 2006, p.145.
[23] URL:http://www.thefreelibrary.com/Driving+
lean+through+the+visual+factory%3A+visua
l+instructions+offer...-a0168812811,
accessed at 22.04.2015
[24] URL: http://www.acsco.com/Yamazumi.htm
accessed at 24.04.2015
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Zoltan Raluca
tefan cel Mare University of Suceava, Faculty of Economics and Public Administration
raluca.zoltan@gmail.com
Vancea Romulus
tefan cel Mare University of Suceava, Faculty of Economics and Public Administration
vancea.romulus@gmail.com
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satisfactions within the group, and the Thus, in view of these two premises, it
influence of individual within the group. follows that on the basis of feedback on the
functioning of the informal group, managers
Informal groups tend to evolve in can modify the formal group so as to increase
organizations due to the advantages which the likelihood that members of the informal
their members can get, namely: [3, p.310] group obtain the satisfaction and
perpetuating the social and cultural development which they desire. The final
values which group members consider to be consequence will be strengthening solidarity
important; and productivity of formal group, and this
social status and satisfaction that consequence is wholly beneficial for the
people achieve only if they are members of organization. [6, p.114]
the group;
facilitating the communication Figure 2. Team localization within the
between group members; organizational groups
improvement of general work
environment. Organizational context
Related with those two types of groups we
can discuss about a formal role (derived from
aspects defined by the organization for any
job/position and detailed in official
documents for example, organization chart) Formal Work team
Informal
and about an informal role (that assumed by group group
person as an expression of its needs mostly
unconscious, as part of his personality and as
a reaction to group invocation [4, p.223]).
According to Homans, informal group is
established in order to provide satisfaction
and development opportunities to its
In contrast to roles of employees
members. At the same time, feelings,
belonging to formal groups, roles which are
interactions and activities that occur within
stated by the organization chart, formal roles
an informal group arise from feelings,
of team members are quite difficult to
interactions and activities that are already
separate from those informal, as long as
manifested in formal group. [5, p.510] Figure
unwritten norms exist, but they are
1 summarizes the George Homanss theory
collectively and by mutual agreement
on the evolution of informal groups.
assumed at the team level, for which these
norms gain particular theoretical meanings
Figure 1. Homanss conception on how
but also important practical implications for
informal groups develop
team functioning.
Formal Informal Effects on In any case, it seems likely that the
groups groups group overlapping area of formal groups with
informal ones (in so far as they are identified
in the organization) can indicate a high
Emotions Emotions Satisfaction probability that members belonging to both
Interactions Interactions and types of groups to perform better together
Activities Activities development than members belonging to only one of them,
but upon condition that their objectives are
consistent with or derived from
organizational objectives. This idea is
Feedback suggested graphically in Figure 2.
Source: Certo, S.C., Managementul modern
diversitatea, calitatea, etica i mediul global, Ed.
Teora, Bucureti 2002, p. 510
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3. Some differences between work teams of their work and with attaining synergy so
and work groups that their collective result is greater than the
sum of individual results.
Regardless of the approaching manner of Shortly, a group can be considered a team
work team as a particular type of group, most only if its members help each other to
authors agree that all work teams are groups, achieve the common objectives [10, p.12],
but not all groups are work teams. [7] A both at individual level as well as group level
group consists of people who work together and organization level.
but can work even without each other. A
team is a group of people who can not do the 4. Team work versus group work
work, at least not effectively, without the
other members of their team. [8] The basic unit for most organizations,
In fact, according to some authors, regardless of their size, should be the team in
specialists in leadership, the differences the real sense of the word, and not a group
between a team and a group reside in the that is labeled by management with the name
following: [9, p.75] of team. [11] And yet, teams are not always
Target teams have a goal or purpose best suited to all organizations and/or for all
unto all their members tend to. There is a tasks thereby the primary concern for
leadership that gives them some direction and management is to identify the nature of
guidance in their activities towards the target. common task that the small work collective
As targets can change and they should has to fulfill.
change, leader must take care to renew Thus, teams might not be the answer to
peoples energy and concentration, any organizational problem because there are
maintaining their alignment with the tasks which do not match with team work.
collective goal, even if circumstances For example, urgent tasks are often best
permanently change. fulfilled by individuals alone, and repetitive
Engagement people want to be part tasks, by machines [12], team work
of the team, they engage themselves to representing a more effective approach than
achieve its objectives and struggle to independent work when must be addressed
accomplish them through personal complex problems. [13]
contribution, and through performance To the extent that the task type that a
achieved with the support of the others. work collective has to achieve can be
Action all activities are directed rigorously determined, it may prove
towards attaining the target. People act particularly useful the demarcation we
interdependently, ensuring that all their proposed in Figure 3. Starting from the
actions are coordinated in a convergent assumption that the goals of work group
manner. Each of them focuses to contribute differ from those of work team by the low or
with their full capability at any time, and all non-existent level of interdependence
their actions are directed towards achieving between members activities, we underline
the target. and detail some ideas with important
Maintenance any team needs care practical consequences:
and maintenance in order to ensure its Work group has to realize simple tasks
development and sustainability just as a high- that do not necessarily involve collaboration
performance engine needs to be provided and exchange of information between
with a regular service to give the best results. members since their activities are
Team members can have such a significant independent and can be aggregated, which
role, able to care for one another and support can be defined as group work. For group, the
each other. For maintaining a team is application of work style specific to team,
important for people to reciprocally that is team work, can be a matter of choice,
appreciate each contribution, to appreciate and the focus is mainly on affective relations,
each other, to enjoy successes. on sympathy between members: it is the
Synergy basically, a team produces option of members to help each other, to
better results than those obtained by its exchange ideas, to compensate each other the
members, working separately. People are possible low performance, to work harder to
concerned with the continuous improvement achieve the objectives which if can not be
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higher because is not the case [14], then can respectively, are not sufficiently complex and
be attained sooner than expected. But a do not involve diverse knowledge and skills.
complex task assigned to a work group will Thus, it can not be claimed from a small
make from this nothing than a dysfunctional group to work as a team, collaborate,
group due to the overall lack of perspective intensively communicate, exchange
that is specific to group work. The group information, support each other and so on
needs a person that integrates its activities in when the task does not require these things;
the group outcome and that person is usually members will tend to believe that the
a manager appointed from outside the group: problem to be solved is more complex than it
he sets objectives for the group, allocates really is as long as they should team up
subtasks to members, ensure that the group with others, and will end up unnecessarily
meets the a priori established criteria of complicating issues, will lose all spirit and
efficiency, which conflicts with team work such experience will tell them that team work
style that involves, by definition, at least a is a waste of time and not at all a challenge,
minimum of autonomy in achieving the an opportunity for personal development and
common goal. a unique source of professional and personal
In the case of work team, the level of satisfaction.
dependence between members activities Therefore, effective work team
(individual subtasks) is high and requires (functional, mature team) practices team
team work, respectively imposes an work because it is appropriate to complex
organized cooperation and more, a minimum tasks that require from members besides
of self-organized cooperation. Emotional, domain-specific knowledge and skills, a high
affective relations are not excluded, but degree of creativity and proactiveness. The
dependence is given by the nature of the task, quality of team player is mandatory by the
so as team work is no longer a matter of virtue of the context imposed by the task
choice, it is absolutely necessary because the difficulty which requires task related
achievement of common goal could not be expertise and knowledge that can not be
possible without the mix of individual owned by one person, and also requires
contributions, respectively, without synergy. relational abilities. In addition, the time
Much more in the case of activities in form required to achieve the common task exceeds
of projects, the compensation of a poorer the time available to a single person.
performance, for example, is not (anymore) a
matter of friendship or expected reciprocity, Figure 3. Effectiveness of group and team
but a sine quo non condition in order to depending on the work style and task type
correctly and timely finalize the project or a
complex sequence of it.
On the other hand, the combination of a
simple task and team work only lead to Complex Dysfunctional Functional
failure, often invoked in case of teams, but task group team
without a prior analysis of its causes. For
example, Millward, Banks and Riga believes
that team work is a designing strategy for
organizing the work in a flexible and Simple Functional Dysfunctional
coordinated manner which essentially should task group team
produce synergies, but most often fails to
obtain even the summative criterion. [15]
Well, if we consider the summative criterion, Group work Team work
then the task is simple, entirely additive, and
suitable to group work and by no means to
team work. Frequently, managers used to And then, team members must be
adopt various forms of organizing the work technically prepared with their own
in line with what is in vogue and in the expertise and contribution, but also
case of teams, to attribute to a group of tactical, with a very clear idea of the
employees, which they name it team, tasks project as a whole [16], while the group
which are not appropriate to a team members do not need to know what their
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Section II
Business Economy and Administration
***
Subsection 3
Finance and Accounting
Ovidius University Annals, Economic Sciences Series
Volume XV, Issue 1 /2015
Bcanu Mihaela-Nicoleta
Bucharest University of Economic Studies, Faculty of Accounting and Management
Information Systems
bacanu_mihaela90@yahoo.com
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recognizing only what was permitted from suppliers, costumers, the state and the
the fiscal point of view. audience.
Between years 2000 and 2003, there The true and fair view is important for the
appear some new regulations which try to company itself too, because based on the
change the existing relation between the annual financial situations the company
accounting and taxation. In 2001 appears the could analyze and assess its position on the
Order no. 94, which replaced the previous market in relation to other companies,
order (Order no. 403 of 1999) and which determining what should be improved or
required the harmonization of the Romanian developed in its activities. So, if the annual
accounting regulations with the European financial situations reflect the real image of a
Directives and the International Accounting company, all the users, but also the company
Standards. In 2002 was adopted the Order itself can monitor and improve its activities
306 which was applied by the entities who do and the market activities can develop.
not fulfilled the criteria to apply Order no. On the other hand, if one company
94/2001. They had to prepare the financial operates on a market, it takes part to the
situations harmonized with the European society and if it takes part to the society it
Directives, according to the Order 306/2002. must take part to the realization of the state
[3] incomes. All the persons, juridical or natural
Starting with 2004, there was a clear persons, who obtain an income, or are
separation between the two domains. The owners of a wealth, must pay a certain tax.
Law no. 571/2003 was applied by the Taxation is the domain which handles this
companies, the Fiscal Code. Now, the aspect.
taxation has its own regulations. Therefore, The taxes are on different types or sizes,
starting with this year, each one of the two, depending on the income obtained by the
taxation and accounting, must respect their persons.
regulations. (Fiscal Code for taxation and Taxation objective is to determine the
Order no. 1752 of 2005, replaced by Order way in which the taxes are computed, the
no. 3055 of 2009 and replaced by Order 1802 size of the taxes, but also how to declare and
of 2014 for accounting) collect them. The taxes are the state incomes,
Even though the regulations were which are collected for the good functioning
separated, we can say that the separation was of the society.
partially, because in practice, there is a
concern to reflect a fiscal image better than a 4. Professional bodies in accounting and
fair image and this aspect is a result of the in taxation
Soviet influence that has been applied on
Romanian accounting for more than 50 years. As we could see above, the accounting
and taxation have different objectives. So,
3. Objectives of the two areas there was a need to separate the profession of
chartered accountant of the profession of tax
Nowadays the accounting and taxation advisory.
have completely different objectives. After the fall of the communism, the
Through accounting the companies are Body of Chartered Certified Accountants and
monitoring all their transactions. Thus, Authorized Accountants of Romania
applying the accounting principles, the (CECCAR) was recreated, in 1992, after a
company can find which were its break of approximately 40 years. So, to
performances on a specified period of time, exercise the profession of chartered
which is its financial position, if the business accountant or authorized accountant the
is profitable or not, what should be improve, accountants need to register as members of
or what should be developed. CECCAR.
Accounting objective is to present a true Until 2001, according to the Government
and fair view of the financial performance Ordinance no. 65 of 1994, the chartered
and financial position of the companies, for accountants could perform work of fiscal
presenting real information to all categories type. [4]
of users: investors, employees, creditors, Starting with 2001, once the Government
Ordinance no. 71 regarding the organization
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and exercising the activity of tax advisory code. Thus, in 2003 is issued the Fiscal Code.
entered into force, the article from the Now all the fiscal issues were included in one
Ordinance no. 65 of 1994, which allowed the law. The work of the professionals was
chartered accountants to perform work of simplified. However, over time, there were
fiscal type, was repealed. lots of legislative changes regarding the
This is the moment when the two Fiscal Code, which made it harder to analyze
professions were separated. the fiscal issues.
Applying the Ordinance no. 71 of 2001, The professionals who worked on the
appear the profession of tax advisory. issue of the Fiscal Code were declaring that
In 2007, the Chamber of Tax Consultants they have wanted that the fiscal legislation to
was created. be predictable, by introducing the rule for
The law number 149 of 2013 brings some changes to be announced at least 6 months
clear provisions regarding the separation before entering into force. But in the law text
between the two professions. According to it was introduced the word usually, which
this law, the tax advisories can practice the permitted various times the hastily changes
profession of chartered accountant only if on the fiscal regulation. In 10 years from the
they register as members in the organizations issuing, the Fiscal Code was modified for
that coordinate these professions. Also, the more than 100 times, there appeared more
persons who have the quality of chartered than 100 new articles and only 25 articles
accountant could exercise the tax advisory remain unchanged. [7]
profession, after they register as members in Regarding the accounting regulations, the
the organizations that coordinate these companies apply the Order 1802 of 2014
professions. [5] starting with the 1st of January 2015. This
The knowledge and proper application of replaced the Order 3055 of 2009.
International Financial Reporting Standards, The new Order was issued based on the
of national accounting rules and principles, adoption of Directive 2013/34 / EU of the
as well as understanding and respecting the European Parliament and of the Council on
entity's accounting policies, the presentation the annual financial statements, consolidated
of a true and fair, correct and complete financial statements and related reports of
financial position and performance of an certain types of companies. As Romania is a
entity is the exclusive merit of the chartered member of the European Union and the
accountants. The knowledge and application information must be comparable at the
of relevant domestic and international tax international level, it was necessary to be
rules, the provisions of double taxation issued the new order.
agreements and the ability to provide So there were introduced new criteria for
solutions to any problem of fiscal nature of establishing the size of companies, some new
the client is the exclusive merit of the tax accounts, some new definitions and
advisories. [6] classifications.
Further it is analyzed the interaction
5. The interaction between fiscal between the two areas, taxation and
regulations and accounting regulations accounting, at the regulation level.
Analyzing the Fiscal Code [8] we can see
As we could see above, the fiscal that there are some articles which refer to the
regulations are different from the accounting accounting regulations.
regulations, starting with the year 2004. The most obvious interaction between
Nowadays, for taxation the companies accounting and taxation could be seen from
apply Law no. 571 of 2003, and for article no. 19 from the Fiscal Code, General
accounting they apply Order no. 1802 of Rules for the calculation of the profit tax. In
2014. this article it is specified the calculation
Before the apparition of the Law no. 571 method. Thus, the difference between all the
of 2003, there existed lots of laws for each incomes of a company and the expenses
fiscal issue. There was a real disorganization incurred for the purpose of earning the
through the fiscal laws. incomes, from a fiscal year, from which are
To organize the fiscal laws, the deducted non-taxable incomes and are added
professionals proposed the writing of a fiscal
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Badescu Bogdan
The Bucharest University of Economic Studies
bogdanbadescu82@yahoo.ro
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measures that will balance the national offered by PMN were not received well by
budgets. But because these measures are the emerging economies, which have
unpopular, the chances that they will be identified possible negative effects, while
implemented are reduced. advanced economies replied that the firsts
Another factor to be considered is were supposed to use this opportunity to
whether the exit from these policies needs to correct the internal imbalances. These
be done sooner or later. In conventional differences have created tensions which
terms, one of the advantages of the inflation showed that an unwritten rule is still in
targeting regime is that it shows effect: national priorities prevail over
unequivocally that the central bank is more international ones. Most likely, the exit from
effective in controlling inflation than in PMN will cause a reversal of capital flows to
supporting growth. [3] From a practical the countries that are exiting and an increase
standpoint, the decision to exit is equivalent in borrowing costs of countries that have not
to a choice between reducing the risk of implemented PMN. The impact of this
inflation in the future (early exit) and reversal is dependent on the efficiency of
supporting growth (late exit). Together, the financial markets which tends to be lower in
two points of view recommend an early exit. developing economies that have received
However, the experience of 2010 showed significant capital inflows in the recent past.
that an early exit from PMN proved to be a This may prove disadvantageous for these
mistake, which hindered economic recovery countries as they will face increasing costs on
in the European Union (EU). In contrast, in their bonds. Certainly the most important
the US, where PMN were kept for a longer factor will be how resilient these economies
period of time, there has been growth, so the will be in facing market volatility and capital
gap between actual and potential GDP flows. [5]
decreased. Moreover, the recent Broadly speaking, we can say that the exit
announcement by the European Central Bank should be made when the financial system
(ECB) that will buy assets worth EUR 1 can be considered stabilized. A sign of this
trillion shows that, at least in Europe, we would be an increasingly reduced usage of
cannot speak of an early exit. Moreover, the the various financing facilities provided by
exit is more problematic for the ECB than for central banks. Another might be an
the Federal Reserve Bank (FED) as the EU acceptable level of the output gap and
members will be affected differently. inflation forecast in line with the target.
Moreover, the monetary policy in the EU has However, according to the IMF, the Phillips
ended up being more restrictive in the curve is flat in the present circumstances and
periphery than in the center, because of the this raises the question if inflation targeting
effect that government bond yields had on can still be used and whether it wouldnt be
banking costs. [4] better to monitor the output instead of the
Those mentioned in the previous inflation. [6] From this point of view, one can
paragraph show that keeping these policies speak of a PMN exit only in the US. In
on long-term would help the economic Europe, the only alternative at this point is to
activity, but this needs to be weighed against continue these policies, which is what
the risks that the mix of cheap equity and low happened.
interest rates involve. To recipient countries
that receive funds as a result of PMN, the 3. How should the exit look?
most well-known is the risk of exchange rate
volatility. If it moves away from the The exit covers two courses of action:
equilibrium level in the sense that it normalization of the policy rate and of the
appreciates without support from the size of the balance sheet of central banks that
economic conditions, there will be problems bought assets. It is important to note that both
for exporters and this will stimulate foreign measures are contractionary, i.e. they are
currency lending. For investors, this surplus assimilated to a tightening of monetary
of resources can lead to risky investment policy. In addition, there is the problem of
decisions, excessive use of leverage to time inconsistency of monetary policy, which
achieve greater profitability etc. Moreover, in the present context may cause traders to
the prospects of withdrawal the support anticipate a tightening of the monetary policy
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faster than desired. In this sense, one can see Figure 1. Bank reserves held at the FED
the episode from 2013, when Ben Bernanke, (USD millions)
the Fed chairman at that time discussed the 3.000,00
possibility of halting purchases of assets
2.500,00
(tapper talk). Although he did not mentioned
anything related to the policy rate, on the 2.000,00
market the interest rates have grown. 1.500,00
PMN significantly altered central banks' 1.000,00
balance sheets. The place of assets with low
maturity and risk was taken by riskier assets 500,00
with long maturities, as part of qualitative 0,00
01.aug.07
09.apr.08
26.aug.09
06.feb.13
21.sep.11
30-May-12
12-Jan-11
16.oct.13
25-Jun-14
17.dec.08
5-May-10
easing. With this occasion, the FED has
become the lender of last resort not only to
banks, as the theory says, but also to entities
outside the banking sector, thus playing also
a fiscal role, as supporting by governmental Cash Reserves
entities is normally the job of the Treasury
(Ministry of Finance). Source: FED, authors computations
According to accounting principles, any
reduction of the assets part involves a similar Figure 2. Bank reserves held at the ECB
reduction of the liabilities. The central bank (EUR millions)
liabilities comprise those elements that form 1.400,00
the monetary base so the analysis of reducing 1.200,00
the balance sheet should start with 1.000,00
identifying the normal size of the monetary 800,00
base. Unfortunately, a clear answer in this 600,00
regard can be given only empirically, so the
400,00
developments in economic activity at
200,00
different levels of the monetary base should
0,00
be monitored and act accordingly.
2007W39
2007W01
2008W25
2009W11
2009W49
2010W34
2011W20
2012W06
2012W44
2013W30
2014W16
In a simplified form, the central bank's
balance sheet looks like the table below:
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5. Acknowledgements
6. References
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Bobe Florina-Maria
Lucian Blaga University of Sibiu, Faculty of Economic Sciences
florina11@yahoo.cm
Abstract
The Accounts Court forms part of the
In order to create a clear and true picture fundamental institutions of the state and
of how the public external audit is represents the manner in which the legislative
implemented in Romania, we will see the power is involved in the protecting and
evolution of how this type of audit was efficiency activities of public funds by
approached by the responsible institutions. supervising the executive in the budgetary
Also in the paper, we will contribute with execution, in the separation of state powers.
proposals for improving the external public The significant changes made in the public
audit activity in the current stage. sector, also had an impact on this institution.
The most significant changes that have
Keywords: public external audit, occurred in the organization and functioning
performance audit, financial audit of the institution were:
J.E.L Classification: G29, M42 the transfer of the preventive financial
control which is exerted by the Court at
the level of the main loan managers of
1. Introduction the state budget, at the Ministry of Public
Finance;
In most countries of the world, the abolition of judicial structure, which took
formation and use of public resources is place in 2003 following the constitutional
audited by the bodies working next to the amendments;
Parliament, so outside the Government which focusing on audit work to the detriment
manages the funds. In Romania, the body of control, following the last legislative
exercising the public external audit is the change in 2008.
Court of Auditors, which is organized and Court of Accounts operate autonomously
operated under the provisions of art. 140 of and represent Romania in its capacity as
the Constitution and Law no. 94/1992, supreme audit institution in the international
modified and completed by Law no. 217 in organizations of such institutions.
2008. Verifications are made by the Court of
The reality of all the worlds countries Accounts through external public audit
shows that the most credible certification of procedures set out in its own audit standards,
the financial reports from the public sector elaborated in accordance with the generally
belongs to some state institutions, commonly accepted international standards.
known under the generic name of Supreme The arrtibutions of the Accounts Court,
Audit Institutions (SAI) established under the resulting from section 2 of Law no. 217/2008
constitution provisions or organizational and are:
operational laws, which guarantee their the financial audit;
independence. the performance audit;
The state supreme audit exists for the control, including the authorities
centuries, in one form or another, in most with responsibility for privatization.
European Union states. If by the end of 2008 the institutions
activity was focused on financial control,
2. Romanias Court of Accounts - external with the adoption of Law no. 217/2008, the
supreme audit institution of the public control occupies a small share compared with
funds
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the audit work. The overgrowth of the audit concluded by issuing a certificate of
activity in relation to the control one, we conformity for the accounts that meet the
believe it is too early because in our country legal requirements.
the receptivity to the protection of public In the attempt to modernize and align to
money does not properly take place in the the European practices, the Accounts Court
individual or collective political culture. has made a big leap in quality by legislating
Replacing the sanctions or ordering the and implementing the financial audit, but
payment of the damages found by making harnessing the findings was not carried
recommendations regarding the proper through, since the concept of management
management of the public funds is not fully discharge can no longer be found amongst
adapted to the realities of our country. the Courts attributions, nor amongst those of
Certainly, it takes time for those responsible other public authorities. As a concept, the
for managing public funds to understand the management discharge is indisputable, it
role and importance of this evolved form of being applied ever since the time of Cuza. [2]
control. We must admit, however, that due to the
Through the checks carried out, the Court legislative ambiguity of the period 1992-
aims at [1] : 2008, this concept of management discharge
the accurateness and the reality of the has turned into an ineffective instrument
financial statements, as they are since the credit officers were not punished
established in the current accounting when the management discharge was not
rules; granted. This does not mean that this
the evaluation of the management and instrument should be abolished, but that the
control systems at the authorities with legislature needs to bend over the concept in
tasks regarding the financial obligations order to find a reasonable solution in the
to the budgets or to other public funds practical activity, otherwise the effort to
established by law, natural or legal improve the public finances becomes
persons; ineffective.
the use of the funds from the budget or Our proposal is to reintroduce the concept
from other special funds, according to of management discharge, but the power to
their established destination; grant it must be passed between the
the quality of the economic and financial attributions of the central or local organs
management; which mandate the credit officers with the
the economy, efficiency and administration of public funds, respectively
effectiveness of using the public funds. the Parliament for the Government and the
local councils for the main managers of the
3. Forms of existing external audit in local budgets. Of course, the management
practice of the Romania Court of Accounts discharge should be granted only on the basis
of the certificate of conformity issued by the
The financial audit is the activity which Court, the sole authority which has
seeks if the financial statements of the public appropriate techniques and methods
entities verified are complete, accurate and in necessary for a good external audit. Also the
compliance with laws and regulations in management discharge should be granted
force; in this regard it will be issued an only to the main credit officers that would
opinion. The financial audit of the Accounts have to answer for the accuracy of the
Court is performed over the execution secondary and tertiary officers accounts that
accounts for concluded management periods. are under their authority. This would be
If by the end of 2008, the Accounts Court consistent with the principle of managerial
exercised mainly the financial control accountability; the main officers being those
subsequent over the concluded execution who are required to ensure the operational
accounts of the public institutions and level from their suborder, with effective
granted management discharge to the credit activities and internal control procedures.
officers whose execution accounts were The measures and recommendations
accurate and real, since 2009, the Court issued following the financial audit missions
exercises financial audit over the accounts should be undertaken by a specialized
commission from the Parliament (for
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costs, the opportunities would be better same mission, in order to assess the activity
exploited and it would prevent a number of being audited overall.
inefficient spending. Combining the two forms of audit in the
At the same time there are countries same mission in order to achieve the overall
where the performance audit has expanded its assessment of the activity or program
scope. We concluded that in addition to audited, both in terms of legality and
controlling the "3E" (economy, efficiency, performance of using the public funds,
effectiveness) in the future it should be should become a priority of the Accounts
considered other criteria that would define Court, which is currently performing either
the performance of using the public only financial audit missions or only
resources: performance audit missions.
the efficiency of using the environmental
resources, especially when in achieving 4. Conclusions
the economic activities environmental
resources are affected; The external public audit looks at the
the ethic of realizing some public forming and using way in terms of legality
expenditure, which should be sought if and performance of the public funds,
the resources allocated to certain ensuring transparency by providing credible
activities are enough or not and if they information to third parties regarding the
meet the needs of the beneficiaries and if financial statements of the public entities.
the access to these activities is equitable. The public external audit takes the
The performance audit, the most modern following forms:
and efficient form of audit results-oriented, financial audit, which is exerted
must occupy a larger share in the external upon the execution accounts for
public audit activity, as it provides a better management periods concluded, and aims if
use of the financial resources available to the financial statements of the audited
public entities. If until now the performance entities are complete, accurate and in
audit was exercised only ex-post, through the compliance with laws and regulations in
new law it is given the opportunity to force;
undertake audit actions during the performance audit, which is an
development of the programs, projects, independent and objective analysis and
processes or activities. evaluation activity of how the entities that
It is an important skill that should be use public funds comply with the principles
exploited by the Court of Accounts, but our of economy, efficiency and effectiveness,
belief is that the legal regulation could be and on this basis it provides
improved for the introduction of the recommendations for mitigating the
performance audit of ex-ante type, a common resources cost or to increase results .
practice which is used in the case of countries Essentially, we consider that the public
like Germany and the Netherlands. external audit exerted by the Court of
Focusing, in the case of the performance Accounts represents:
audit, on the preventive side of it, can for the Parliament - a guarantee that the
preclude wastage of public money, adopted laws on public finances are put
negligence, any damages or deficiencies in practice, and the public money are
through making responsible the public managed effectively;
entities, or their leaders, in the commitment for the Government - a correction
and the spending of public funds. leverage for the financial and fiscal
Our belief is that only the performance policies adopted and for guiding
audit alone cannot perform the financial resources towards effective programs;
management of the entities. The practice of for the public entities - a tool for
the Accounts Court of performing financial preventing some shortcomings in the
audit and performance audit in separate financial, analysis and assessment
missions seems to us as not being adapted to domain and to evaluate the training
the current requirements. It is necessary that method and the use of the resources
the two essential forms, namely the financial made available;
and performance audit to be carried out in the
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5. References
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Brad Laura
The Bucharest University of Economic Studies
laura.brad@fin.ase.ro
Ciobanu Radu
The Bucharest University of Economic Studies
radu.ciobanu@fin.ase.ro
Dobre Florin
The Bucharest University of Economic Studies
florin.dobre@cig.ase.ro
2. Literature review
1. Introduction
In the main literature, there are lots of
The adoption of the International Financial research studies that deal with the degree of
Reporting Standards (IFRS) is considered to conservatism when a switch from national
bring higher accounting quality and more regulation to the international one, measured
transparency in reporting [1]. As a fact, even though the IFRS standards, is encountered.
though the way the entities report their First of all, the conservatism is considered to
individual financial statements can be be an efficient way of reporting when the
managed for, they can still decide what kind entities dont have contracting activities [5].
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Moreover, the conservatism can mitigate the value of their own capital, 4 companies that
conflicts that can arise between several were listed in 2013 or that had to comply with
stakeholders [5,6] as their information is the regulation from 2013, one company that is
asymmetric and it is a tool for reducing the trading bonds, one company that has another
moral hazard [7] way of reporting and two companies that were
There is also evidence that the degree of in insolvency between 2010 and 2012. As a
conservatism can improve the efficiency of fact, our sample consists of 54 companies.
the capital market. It has to be acknowledged For each entity that is included into the
that the improvements are due to the analysis, we collected financial information
conditional conservatism [8]. Opposite to this such as: the value of total assets, the value of
effect, is the effect related with is the level of total debts and the value of own capital, the
unconditional conservatism [9]. value of net profit and the price and the
The level of conservatism is deeply number of shares that each entity has at the
correlated with the entitys economic end of the year. Moreover, we used the annual
environment [10, 11, 12]. return computed 9 months prior to 3 months
Most of the studies are conducted on US after the end of the fiscal year. The data is
market, rather than on European market. The collected for 2010-2013. The period is
results prove that the trend is a declining in selected in order to have equal observations
the level of conservatism after the adoption of for both the national and the international
the IFRS [13, 14]. accounting framework. As a fact, the data
Considering the variables that are related from 2010 and 2011 are computed using the
with the degree of conservatism, the size of national accounting framework, while the data
the entities is rather an important one. Larger from 2012 and 2013 are computed using the
firms tend to have higher asymmetric international accounting framework.
timeliness as they recognize loses earlier than The analysis is conducted on panel data
gains [15, 16]. models. The selection of the model took into
Moreover, growth firms tend to have less account if the model with fixed effects is a
good news timeliness and higher asymmetric better estimator than the model with no effects
timeliness as the degree of conservatism is (pool panel data model) or if the random
also affected by other variables [15, 17, 18]. approach is both consistent and efficient, that
Regarding the degree of indebtedness that means that is a better estimator than the fixed
the entities have, higher their leverage is panel data model. For the first situation, we
lower their degree of conservatism is [15, 19]. perform the redundant fixed effects test, while
Considering these, we aim to identify the for the second situation, we used the Hausman
degree of conservatism for Romanian entities test. The redundant fixed effects test has the
after the adoption of IFRS as accounting null hypothesis that the fixed effects are equal
measure. to each other, without any difference between
them. The Hausman test has the null
3. Methodology of research hypotheses that both the random effect and
the fixed effect model are consistent
The purpose of our research is to provide estimators, but the random effect model is
evidence about the degree of conservatism also efficient. By consistency we refer to the
that Romanian entities have after they have to fact that while we increase the size of a
adopt the IFRS as the accounting measure. In sample, its distribution of the estimator is
fact, we aim to detect the influence of three increasing and it tries to achieve the true value
indicators on the level of conservatism. These of the parameter. By efficiency, we refer to
indicators are the size of the company, the the fact that an estimator is having the least
market to book ratio and the level of variance.
indebtedness that the entity has. Considering these, the model on which we
In order to achieve this objective, we have conducted the analysis is presented.
firstly selected our sample. The initial sample
had 71 companies considering the
recommendations of the Romanian
Supervision Authority. After that, we
excluded 8 companies that have a negative
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them being the correlation between and of the coefficients are not statistically different
0.415 from zero. If they were, then the company
would recognize their gains earlier, so they
Table 3. The correlation matrix when will have good news timeliness (we refer to
leverage is the independent variable the coefficient of S R ). Thus, H1 is accepted,
LRD
EPS L LR LD the results being similar with the one found on
EPS 1 literature [19,20]
L
-0.264 1 In Table 5, there are the results for MBR.
***
0.429 0.0756 1
LR
*** Table 5. The results of panel models when
-0.531 0.555 -0.636 1 MBR is the independent variable
LD
*** *** ***
0.453 -0.500 0.712 -0.880 1 Element Model 1 Model 2 Model 3
LRD
*** *** *** *** 0,286 0,295 0,304
Constant
Source: Authors calculation, Symbols *** *** ***
denotes statistically significant at 1% -0,443 -0,367 -0,394
M *** *** ***
From Table 3, it can be observed that the 0,384
MR
highest correlation is between LD and LRD as ***
-0,364
the correlation coefficient is -0.880. Almost MD
***
all variables are highly correlated, the 1,182
exception being the correlation between EPS M RD
***
and L, which is of -0.264. There is also a lack Redundant 0,006 0,011 0,008
of correlation between L and LR . fixed ef.
As we have established the correlations Hausman 0,002 0,002 0,001
test
between the dependent and the independent
F stat 1,70*** 1,67*** 1,76***
variables, we can conduct the analysis.
DW 2,16 2,25 2,19
The results are presented differently for
Source: Authors calculation, Symbols ***
each independent variable. In Table 4 are
denotes statistically significant at 1%.
revealed the results for size of the entity.
From Table 5, we can extract several
Table 4. The results of panel models when size
conclusions. First of all, after the adoption of
of the company is the independent variable
the IFRS, growth firms tend to have good
Element Model 1 Model 2 Model 3
Constant -3.699 -3.737 -0.559 news timeliness as the coefficient of M R is
0.451 0.455 0.075 statistically significant from zero. The firms
S (p=0.155) continue to have higher asymmetric timeliness
SR 0.001 as the coefficient of M RD is statistically
SD 0.0009
significant from zero. The results are similar
S RD 0.052**
with the results found in the literature [15,19].
Redundant 0.054 0.056 0.074
fixed ef.
Moreover, we can observe a particularity in
Hausman 0.568 0.288 0.367 this case. The sum of the coefficients M R and
test M RD is above one which means that the
F stat 1.39* 1.39* 2.82* entities decide to recognize loses in a single
DW 2.18 2.19 1.44
period of time. A value that is below one
Source: Authors calculation, Symbols ** suggests that the entities recognize loses
and * denotes statistically significant at 5% among several periods of time. As a fact, H2
and 10%. is valid.
The last indicator on which the level of
From Table 4 it can be concluded that conservatism was tested was the ratio. The
larger entities tend to have higher asymmetric results are presented in Table 6.
timeliness, as they recognize gains and losses
in a different period of time, as the coefficient
is statistically different from zero.
Considering the other independent variables,
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Table 6. The results of panel models when the models, using a four time period, that are
leverage of the company is the independent tested both for redundant fixed effects and for
variable random fixed effects.
Element Model 1 Model 2 Model 3 The results show that larger firms tend to
0,1631 0,082 0,066 have higher asymmetric timeliness after the
Constant
*** ** * adoption of the IFRS. The other variables are
-0,160
L not statistically significant from zero.
***
0,322 Regarding the market to book ratio, the
LR results show that growth firms have both
***
-0,228 higher good news timeliness and higher
LD
*** asymmetric timeliness, which is also a proof
LRD
0,468 of that the level of conservatism has increased
*** after the adoption of the IFRS. What has to be
Redundant 0,000 0,004 0,001 acknowledged is that those entities recognize
fixed ef. *** ***
their loses in a single period of time, when it
Hausman 0,001 0,979 0,396
test *** occurs, rather than on several periods of time.
4,54*** 3,50 62,64 The last indicator that we used in the
F stat analysis is the level of indebtedness that the
***
DW 1,97 1,58 1,46 entity has. This indicator was measured by the
Source: Authors calculation, Symbols ratio between total debts and own capital. The
***, ** and * denotes statistically significant results show that higher levered firms are less
at 1%, 5% and 10%. conservative. They have higher good news
timeliness and they have less bad news
From Table 6, we can observe that higher timeliness. As a consequence, they have
the levered firm is higher good news higher asymmetry timeliness, which could be
timeliness exists. This aspect is seen when we a sign of conservatism. Levered entities
look at the coefficient of L R . There is also recognize loses on several periods of time.
evidence that firms recognize loses late, so The problems of this research are related
levered firms have less bad news timeliness. with the small dimension of the sample that
We can also observed that firms have higher was included into the analysis, with manual
asymmetry timeliness as the coefficient of LRD data collection and with the fact that that
is statistically significantly from zero. If we some coefficient are not statistically
compare the results found when the MBR significant even though several models have
ratio is the independent variable and when the been tested.
leverage ratio is the independent variable, we As the correlation between independent
can conclude that levered firms do not variable was not included, we consider that
recognize loses on a single period of time, we can improve our research by conducting
rather they choose to recognize loses on an analysis considering both other
several periods of time. Considering this, it independent variables, such as the effective
can be said that H3 is valid. We have accepted tax and the correlation between them.
H3 - levered firms are less conservative
[15,19]. 6. Acknowledgements
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3. The risk of bankruptcy. Concept and most used and known are: Altman model, the
methods model Conan-Holder
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Rotation speed of current assets (Rac) has For the unlisted organizations it is used the
a particular importance for assessing the equity value.
bankruptcy risk, so the reduction of the The rotation speed of total assets
rotation speed of the asset or liability R5 = Turnover
contributes to an increased risk of Total assets
bankruptcy. From the contents of the five rates it
Rac= Turnover result that their levels are the better if they
Current assets have a higher value. Z score can be
Profitability. The decrease of economic rate interpreted as follows: [3]
of return (Ren) and financial rate of return Z<1,8- the bankruptcy of the
(Rf) is a signal of the increasing bankruptcy organization is imminent;
risk. Z>3- the organization's financial
Ren = Result of exploitation x 100 situation is good, it is solvable;
Net invested capital 1,8<Z<3- the financial condition is
Rf = Net profit x 100 difficult, the performance is low, but
Equity some appropriate measures can lead to
Added value rate (Rva) refers to the share of overcoming the situation.
new created value in total business value.
Rva = Added value x 100 6. Bankruptcy risk analysis based on
Turnover Conan-Holder model
5. Bankruptcy risk analysis based on the The model belongs to french analyst J.
Altman model Conan, M. Holder and managed to provide
over 50% of bankruptcy in the 70. The rates
Altman model is based on discriminant that underlying the model are "liquidity-
analysis and this was used to develop chargeability" as it result from Z function [8].
classification/prediction models of affiliation Z = 16X1 + 22X2 87X3 10X4 + 24X5
of some comments to certain classes The variables used in the model are:
determined a priori. Fast liquidity rate
Function-score Z proposed by Altman is X1 = Receivable + Cash
actually an embodiment of a linear classifier Current liabilities
(Fisher type), it took the following form: Financial satability
Z(r1, r2,rn)=0 + 1 x r1 +2 x r2 ++ n rn X2 = Permanent capital
Based on the score obtained by each Total liabilities
analyzed company it is made the allocation to sales financing from borrowed sources
one of two categories:the bankrupt company X3 = Financial expenses
or unbankrupt company. Turnover
Altman original version model proposed in The contribution of personnel expenses
1968, is as follows [1] : to creating added value
Z = 1,2R1 + 1,4R2 + 3,33R3 + 0,6R4 + R5 X4 = Staff costs
The rates used in this model are: Added value
The rate of current assets The share of gross exploitation surplus in
R1 = Current assets value added
Total assets X5 = Gross operating surplus
The rate of reinvested profit Added value
R2 = Reinvested profit
Total assets This model contribute to the decision
Eonomic rate of return making regarding the organization framing in
R3 = Gross profit a certain class of risk. The bankruptcy risk
Total assets depends on the level of "Z", so the possibility
Finanancial security rate of bankruptcy decreases while the score is
R4 = Market capitalization increasing.
Total liabilities
The market capitalization refers to the
market value of the subscribed capital paid.
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generate risk, analysis and risk control, risk depending on the industry in which the
diminish. The causes of risk can be multiple organization operates.
and differs depending on the field of In terms of future directions of research,
organizations activity. we mention that this work is the beginning of
The bankruptcy risk analysis was done a future large-scale searches whose purpose
using two types of methods: reliability is achieving an econometric model that
indicators and scoring method (Altman highlights the link between risk and
model, Conan-Holder model). From the data profitanility, extrapolating the research at a
analysis and interpretations during the four larger number of organizations
years, using two types of methods, the
research generate different conclusions. 9. References
So if we refer to the reliability indicators
of the organization, taking into account their [1] Altman, E.I., Managing the Commercial
values and the downward trend, we conclude Lending Process, 2002;
that the organization shows a medium [2] Alexandru Buglea, Analiza economico-
bankruptcy risk. We can see that the most financiara, Editia a II-a revizuita, Editura
Mirton, Timisoara, 2011;
distant values of the minimum accepted level
[3] Camelia Burja, Analiza economico-financiara.
is recorded in case of the profitability, which Aspecte metodologice si aplicatii practice,
we consider it represents one of the most Editura Casa Cartii de Stiinta, Cluj-Napoca,
important indicators of bankruptcy risk 2009;
assessment because it represents the [4] Gabriela Munteanu, (2010). Metode de analiz
organization's ability to obtain profit from its a riscului de faliment, Revista Romn de
activity. In all of reliability indicators, we can Statistic nr. 12;
see a significant oscillation of the indicators [5] Georgeta Vintil, tefan Daniel Armeanu,
from one year to another, especially in terms Maria Oana Filipescu, Maricica Moscalu,
of increasing debt that does not lead to the Paula Lazr, Analiza i evaluarea riscurilor
activitii antreprenoriale n mediul
increase of results.
economic romnesc, Economie teoretic i
In terms of Z function values at the two aplicat, Volumul XVIII (2011), No. 5(558),
analyzed models (Altman, Conan-Holder), pp. 119-131;
the situation is exactly the reverse compared [6]Gheorghe Bistriceanu, Mica enclopedie de
to the of reliability indicators results. So the finante, moneda, asigurari, vomumul II,
two models results confirm that the Editura Universitara, Bucuresti, 2006;
organization has an excellent position in [7] Ion Stancu, Finante, Editia a IV-a, Editura
terms of bankruptcy risk, the bankruptcy Economica, Bucuresti, 2007;
probability is very reduced. [8] Monica Violeta Achim, Sorin Nicolae Borlea,
From the above conclusions, it turns out Analiza financiara actualizata cu prevederile
IFRS, Presa Universitara Clujeana, 2014;
to be verified the research hypothesis no. 3 in
[9] Silvia Petrescu, Diagnostic economic-
accordance with the bankruptcy risk financiar. Metodologie. Studii de caz, Editura
diagnosis must consider both the reliability Sedcom Libris, Iai, 2004;
indicators and the indicators calculated by the [10] Vasile Robu, Ion Anghel, Elena Claudia
scoring method. Serban, Analiza economico-financiara a
We appreciate that the significant firmei, Editura Economica, Bucuresti, 2014;
differences between the results of two [11]Willi Pavaloaia, Marius Dumitru
categories of bankruptcy risk analysis Paraschivescu, Gheorghe Lepadatu, Lucian
methods are based on the following Patrascu, Florin Radu, DanielaGabriela
arguments: there are used different categories Bordeianu, Adina Darie, Analiz economico-
financiar. Concepte i studii de caz. Editura
of indicators in the two methods; the
Economic, Bucureti, 2010;
diagnostic methods of bankruptcy risk based [12]http://www.biblioteca-
on discriminant analysis at a certain point digitala.ase.ro/biblioteca/pagina2.asp?id=cap
have a reasonably accurate but in time their 14
accuracy diminishes unless there is taken
action to update the variables considered.
Moreover we appreciate that indicators of
bankruptcy risk analysis should be different
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fully phased in by 2015, increased from the After Tarullo, the Basel Agreements may
current 4% minimum. The bank capital will be assessed in two ways. One way is to check
be structured as Tier 1 and Tier 2 capital, whether the agreement was properly
level 3 capital being eliminated while the implemented and observed by each country.
total capital requirement remains at the Another way to evaluate is whether it has
current level of 8,0%. (Table 1). been successful in achieving goals. [10]
Furthermore, there will be a mandatory Referring to assess whether the objectives
capital conservation buffer equivalent to proposed by Basel 3, mentioning is that at
2,5% of risk-weighted assets. So, banks will the moment the research is not conclusive
be required to maintain a ratio of 7% of risk- since the Agreement it is not fully
weighted assets in common equity (4.5% implemented.
CET1 plus a 2,5% capital conservation Regarding implementation of Basel III at
buffer) from 2019 onwards. the moment many countries go through the
process of implementation of the Agreement
Table 1. The new capital requirements by 2019 according to BCBS schedule.
Common Tier1 Total Therefore is important to make an
Equity Tier1 Capital Capital
Minimum 4,5% 6% 8%
assessment of compliance implementation of
Conservation 2,5% the new capital requirements. The new
buffer regulations have generated supervisors
Subtotal 7% 8,5% 10,5%
Countercyclilcal 0 ~2,5%
concern regarding new benckmarks achieve
buffer and the way in which banks will increase
Total 7 ~ 9,5% 8,5~11% 10,5 ~ their capital rates.
13%
According to the BCBS quantitative
Source: adapted from Basel Committee on
impact assessments between 2009-2014, the
Banking Supervision [3]
analyzed banks fulfilled the new capital
requirements, significantly increasing their
Where required, a countercyclical capital
capital ratios. The study involved a total of
buffer it would be imposed at a national level
227 banks, including 102 classified in Group
only during times of excessive credit growth,
1 and Group 2 banks comprising 125 banks.
and will be allowed to be released during
[4], [5]
times of credit contraction. The level of
Group 1 consists of banks holding higher
countercyclical capital buffer can ranges
Tier 1 capital level of 3 billion euros and are
between 0% and 2,5% of risk-weighted
active internationally. All other banks are
assets and must be met by CET1 capital. [3]
considered Group 2.
Basel III completed capital adequacy
Thus, the capital measured by common
requirements adding a new indicator called
equity tier 1 ratio (CET1), increased from 5,7
leverage ratio. This leverage ratio is a non-
percentage points at end-2009 to 10,8
risk-based indicator being calculated by
percentage points of risk-weighted assets in
dividing Tier 1 capital by the amount of
June 2014 for the largest 102 banks in the
exposure of all the assets and certain off-
world, and from 7,8 percentage points at end-
balance sheet exposures. Regulators have
2009 to 11,8 in June 2014 for the 125 banks
agreed to test a minimum of 3% of this
analyzed by the BCBS. Moreover, it can see
indicator. The bank disclosure of the leverage
that average ratio comfortably exceeded the
ratio will start on January 1, 2015 and will
target level of 7,0% (CET1 capital plus
become a mandatory part of Basel III
conservation buffer) to be achieved in 2019.
requirements only from 2018.
(Table 2)
In addition, Basel III introduces standards
for measuring and monitoring liquidity risk.
Table 2. Banks common equity (CET1)
New indicators measuring both short-term Banks common equity (CET1) has risen relative to risk-weighted assets
Fully phased-in Basel III ratios, in per cent
liquidity - liquidity coverage ratio (LCR) and 2009 2011 2012 2013 2014
long-term - net stable funding ratio (NSFR). 31
dec
30
jun
31
dec
30
jun
31
dec
30
jun
31
dec
30
jun
Implementation is scheduled for 2018. [3] Large 5.7 7.8 7.7 8.5 9.2 9.5 10.2 10.8
internationally
active banks
Other banks 7.8 8.8 8.7 8.8 9.4 9.5 10.5 11.8
3. Status of Basel III implementation
Source: Basel Committee on Banking
Supervision [2], [4], [5]
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Caraiman Adrian-Cosmin
The West University of Timisoara, Faculty of Economics and Business Administration
adrian_caraiman@yahoo.com
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areas as well as supports all accounting, central repository for storing and organizing
financial, planning, sales, marketing, data. Data warehouses, data processing
distribution, human resources, inventory supports providing a solid platform for
management, logistics and e-business. consolidation of historical data for analysis.
Similarly, in a technology-driven The programs carried out the
definition as said Simkin [6] integrated ERP connection between the databases and
system to an entity is an accounting functionality served. In other words, the
information system and more, Mocean [7] functionality is achieved through the
considers that the integrated ERP system is interaction between programs and data bases,
an accounting information system based on software ensuring data collection, validation,
graphical user interfaces used, relational processing and transfer, and export data to
databases, languages of IV-th generation, other fields.
CASE tools and client/server architecture. At trade entities, in order to obtain the
However, the author asserts, still that information requested, the programs take the
unanimous opinion was that while data from the data bases created through
technology is essential in the achievement of various other programs, but also from other
an integrated ERP system, the definition sources; data can be entered manually,
needs to underscore its functional areas operators at the keyboard, or by direct
covered: accounting, sales, purchasing, processing (scanning of bar codes or
inventory, etc.. System architecture facilitates retrieving data directly through radio
the transparent integration of the modules, frequency identification).
ensuring the flow of information between all The results of processing are given to
of the entity's functions in a highly users in the form of reports or attached on the
transparent manner. monitor screen, or printed to the printer, but
In the same context Simkin [6] said that also in the form of files that can be exported
the accounting information system is a and processed using other work
collection of data and the processing environments, where after the delimitation of
fields of data required may make certain
procedures which create the necessary
selections on those measures, sorting after
information for its users. At the same time different criteria can be set or certain levels
the author states that in the context of of summarization. At the same time, besides
information technology, it is useful to view the possibility of setting up, integrated ERP
an accounting information system as a set of systems may include a report generator,
five components that interact with each other which can be used to build new reports,
namely: hardware, software, data, people and which were not foreseen in the initial
requirements and which can be saved and
procedures.
used in the other place to be subsequently
The hardware is probably the most made some complex analysis on the data,
tangible element in this set, but it is just a additional calculations, graphs, etc..
piece of this set of components and not At the same time integrated ERP systems
necessarily the most important piece. In turn can generate different documents as
the hardware needs to work together with outgoings, with the standard form and
other components of the system in order to content as well as invoices, shipping notices,
perform data processing tasks, because the NIRs, orders, etc.
hardware without a program, for example, Another basic concept element of
would stay on hold, and no data to process, integrated ERP systems, to the entities in the
both hardware and software would be trade, is the flow of transactions, processes
unnecessary. Without procedures accounting (workflow), they illustrate the deployment of
data cannot be accurately collected or a functional process, for example:
distributed appropriately and, in the end, it is calculation, recording and payment of wages
doubtful that people without the rest of the or order, purchase and pay a quantity of
system would be able to operate for long or goods from a supplier. [3]
be of great use.
The data represents the foundation of an 1.1 The architecture of integrated ERP
integrated ERP system, and the database is a systems at trade entities
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Thus, as stated and the author of the the same time, in the author's opinion,
economic entities in general, and those in the integrated systems facilitate communication
trade, in particular, there are three types of and coordination between the different
data in integrated systems: organizational functions, facilitating the exchange and
data, data base and data transaction: provide access to data throughout the
organizational data are represented by the process. Furthermore, the integrated systems
structure of the entity, such as branches, play a vital role in the following three areas:
outlets, storage facilities, warehouses, running processes,
etc., ensure the capture and storage of process
basic data are represented by entities data,
associated with different processes. For ensure performance monitoring
example, at trade entities in these processes.
processes involves buying goods from There are cases in which the role is
suppliers and sell goods to customers, completely automated, it is performed
and in this case, the buyers and suppliers entirely by the system, but in other cases the
of goods represent the basic data in system must rely on the judgment, expertise
integrated systems, and managers intuition.
at the trade entities processes are
executed under the organizational levels, The execution of processes:
involving basic data and result in your
transaction. Transaction data reflecting At economic entities in general, and
the consequences of execution or process those in the trade, in particular, integrated
steps to transactions. Examples of systems help entities to execute processes
transaction data is the data, quantities, efficiently, are embedded in the processes
prices and terms of payment and delivery and plays a critical role in the execution of
of goods. processes. In other words, according to the
At the same time, in the opinion of the author, the integrated system and process are
author the transaction data are a combination intertwined, if integrated system stops to
of organizational data, basic data and function, the process are no longer running.
situational data-data that is specific to the Integrated systems implementation
task of running such as: who, what, when and processes helps to inform staff when it is
where. time to complete a task by providing the data
Integrated systems use different types of necessary to complete this task, and in some
documents to your trading. Some of these cases, by providing the means to complete
documents are created and used while the the task.
process is running; other data are created In the delivery process, for example, the
after the process is completed. If we refer to integrated system will inform staffs of
the first category of trading documents we deposit orders are ready for delivery,
include here the purchase orders or purchase providing a list of goods to be included in the
orders, notices accompanying the goods and order and at the same time provide
invoices. Thus, an order of purchase order information about where to find those goods
communicated to seller, an opinion in the warehouse.
accompanying the goods accompanying the In the process of acquiring the integrated
consignment sent by the supplier, and an system generates demand for purchase of
invoice is a request for payment for goods goods and then informs the procurement
delivered. department to act in order to carry out the
said purchases of goods.
1.2 The role of integrated within systems The accounting officer will be able to
of trade entities view an incoming freight, and if the invoice
is received from a supplier can verify that it
The economic entities in general, and is correct.
those in the trade, in particular, integrated In conclusion, as the author, without an
systems is, as said Magal[9], a critical integrated efficient and functional, these
component of visualization vital in the steps and therefore the process cannot be
process of organizing the activity entity. At completely.
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contain inquiries related to the fair image, The IAS1 International Accounting
concept that we can find in the Anglo-Saxon Standard "Presentation of Financial
accounting system as true and fair view. Statements" [6] concerns choosing
Richard (1999) [2], cited by Roberts accounting policies that could reflect a fair
(2000) argues Romanias decision of image of the entity, which should be
adopting the 4th Directive and IAS1 certainly respected, constantly applied and published.
aims attracting foreign investors and The accounting standards, interpretations,
developing the capital market. recommendations from accounting rules in
Casta & Ramond (2009) [3] claim that the particular circumstances underline the
auditor represents the guarantee of the development of accounting policies and
information reliability released by compose the reference framework.
companies. If there is not a standard for a specific
Stanciu (2011) [4] considers that fraud interpretation, we rely on professional
risk is more probably in an inappropriate judgment in stating the accounting policies
controlling environment, when internal with the purpose of providing information to
controls do not fulfil their aim, the stakeholders of the financial statements,
management, audit committee and board of taking into account definitions, findings and
directors fail to coordinate effectively the assessment criteria, liabilities, incomes and
internal controls. expenses set out as reference and on other
Feleag (2011) [5] affirms that choosing presentations from bodies of developing rules
one accounting policy or another, and policies supported in the industry.
establishing the information to disclose and The financial statements are made
the way of presenting it supposes to ascertain respecting the accounting principles. The
the most useful policy in communicating the main principles are:
fair image of the financial state of the firm.
1. Going concern a firm will continue
2. Methodology operating without going bankrupt or reducing
the activity significantly. That means that
In the present paper, we have made a they can differ expenses, depreciations for
qualitative research of the typical literature, longer periods.
studying the national and international 2. Consistency principle once the firm
regulations concerning the subject. adopts a policy, principle or method, it will
We have chosen and processed the data use it continuously for every accounting year
concerning the accounting option and made until a proven better principle occurs.
some analysis concerning different behaviors 3. Prudence concept avoiding
that could lead to realizing the fair image of overestimation of assets and revenues and
the financial state of the firm or trying to hide sub evaluation of liabilities and expenses.
its poor performance. 4. Accrual principle recording the
Following the analysis, we have shown a revenues and expenses as they occur in
series of accounting policies interpretations accounting. Bragg [7]
that can used to manipulate the financial 5. The separate evaluation of the concept
statements. of assets and liabilities - to make a total on
the balance sheet one will evaluate the value
3. Research Discussion of each asset element and liability element
separately.
The firm constantly applies its policies 6. Inviolability principle the opening
and if any modification is needed it can be balance will be the same as the previous year
made only at the beginning of the financial closing.
exercise and only if there are legislative 7. No offsetting principle the assets and
changes or the new procedures provide more liabilities elements entries will not be
relevant and credible information on the canceled with opposite entries. Vials [9] The
firm's operations. Choosing one accounting European Council [8] regulation describes
policy or another generates different financial the rule as "revenue and expenditure cannot
results. be adjusted to each other".
8. Substance over form firstly will count
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the utility of the asset, their substance and Accounting policies influence the balance
only after their legal form. elements and, therefore, the economic
9. Materiality principle influences the indicators. From this reason mainly they
relevance of the accounting information. companies have to pay serious attention
Staicu (2008) [10] says in the financial when choosing them, so they comply with
statements should be stated only the elements the requirement of reflecting the true and fair
with significant value. image of the firm and be aware of the impact
The annual accounts must be correct and on the actual period and for the next financial
reflect a clear picture of the assets, liabilities, years.
financial situation and the company benefit. Accordingly, we selected some of the
There are various options for selecting objectives aimed by companies and
accounting policies, based on corporate correlated them with examples of accounting
goals. We selected some of the objectives policies chosen for accomplishing them and
pursued by companies and correlated them interpretations used for manipulating the
with examples of accounting policies chosen financial situations, in Table 1.
to achieve those objectives.
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all (2013), Gross Domestic Product shows Related to this indicator, from the figure
the economic activity in a country [4]. 1, the following can be noticed:
The highest values of the GDP per capita adopted VAT on 1 January 1970 by all
in the year 2012 are in Luxembourg (265%), countries of the Common Market, replacing
Austria (129%) and Sweden (126%) and the the tax on movement of goods [6].
lowest in Bulgaria (45%) and Romania (53%). Value added tax has the following
We specify that the value of GDP per characteristics: it is an indirect tax general; is
capita for each country in the European a tax neutral to prices, it does not allow any
Union, is shown compared to the EU-28 discrimination, apply to all activities in the
countries (100%). form of quotas; It is a single tax, but pay
fractional, is universal because it applies to all
3. Value added tax - at national and goods and services in the economy [7].
European level In Romania VAT was introduced from 1
July 1993 in place on the movement of goods
Over time the value added tax also known tax [8].
by other names, such as: tax on movement of Once Romania joins the European Union,
goods (1993), turnover tax or general sales tax VAT application is made under Directive
(after World War I). 112/2006, which was taken in the legislation
Tax on global consumer spending; have of Romania [9]. In this period it was
established way as turnover tax. As regards necessary to make a distinction between
indirect taxes, the tax burden is set directly on transactions in goods made in the Community
the drinker but on the turnover of his supplier. and operations outside the Community, so
Along with this tax are often practiced and that some operations have acquired new
special taxes on certain consumer spending, names.
thus there are three types of special taxes on: According to Romanian accounting rules,
essential goods (salt, bread, and sugar), luxury VAT is an indirect tax owed to the state
goods (jewelry), current consumption budget [10].
expenditures (wine coffee, cigarettes) [5]. All Currently, in Romania there are three VAT
these taxes have generated adverse effects rates:
being sharply criticized by specialists and thus - standard rate is 24% applied for most
it was concluded that these taxes be taxable transactions;
recognized as the VAT. - reduced rate is 9%: for access into
Value Added Tax was first adopted in castles, museums, memorial houses,
France on the initiative of Maurice Laure, in historical, zoological and botanical gardens,
1954. In subsequent years this tax has spread fairs, exhibitions and cultural events, cinemas
to several countries in Europe, Latin America delivery of textbooks, books, newspapers and
and Africa etc. The Financial Commission of magazines, delivery of human and veterinary
the European Community proposal was drugs, accommodation in the hotel sector or
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sectors with a similar function, including part of social policy, including the land on
renting land for camping, delivering bread and which they are built [10].
desserts; In the European Union member countries
- reduced rate of 5% applies to the the standard VAT rate recorded different
taxable amount for the supply of housing as values, as described in the figure below:
Source: project carried out by the author after data collected by the ec.europa.eu/Eurostat,
accessed on February 25, 2015
From the above chart we can see that the In Romania compared to EU countries the
highest level of VAT of 27% is registered in VAT rate remains at a high level (24%)
Hungary, followed by 25% in Denmark, hovering over EU share (28) of 21.5%.
Sweden and Croatia. Lowest VAT rates VAT as % of GDP at the European Union
recorded in Germany and Cyprus 19%, Malta countries is present in the figure 3:
18% and 15% in Luxembourg.
According to Eurostat the highest rates of 4. The Analysis of the correlation between
VAT receipts to GDP in the year 2012 GDP per capita and VAT as % of GDP,
located in Croatia (12.3%), Denmark (10%), conducted with the help of the F-Test of
Hungary (9.4%) and lowest in Ireland (6, Significance of the Linear Correlation
2%), Slovakia and Italy (6.1%), Spain Coefficient.
(5.5%). The share of VAT receipts to GDP in We wish to establish a correlation
Romania is 8.5% higher than the EU28 rate between GDP per capita and the VAT as %
of 7.1%. of GDP in European Union countries in the
period 2002-2012 with the help of the F -test
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of significance of the linear correlation the simple linear econometric model we must
coefficient. In our case: X GDP per capita, determine the defining parameters:
and Y VAT as % of GDP is the influenced
factor. In order to estimate the coefficients of
Based on the above formula and on the correlation matrix we obtained the following values:
cov X , Y
M(X) M(Y) M(X*Y)
X2
100.4 7.86 783 -5,238 3,219.84
xi X
R
det M covx, y m m01
R01 1 M 00 Ni
m00m11 x y m10 m11 2 i 1
X R
m01
Where: N
i 1
i
X2 Y2 R01
3,219.84 1.87 -21,415.64 2,13
y
R 2
i Y Ni
2
Y
i 1
R
= m00
N
i 1
i
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table, corresponding to 1 1 and [2] [2] Vintil, N., Filipescu, M.O., Lazr, P.,
Fiscaliate aplicat i elemente de
2 250 2 248 degrees of freedom, a management fiscal, C.H.Beck Publishing
tabular value F ,1,n2 the hypothesis will
House, Bucureti, 2013.
[3] [3] Slceanu Alexandru, Well Tempered
be accepted at [0;3,84] VAT Between theory and practice, Annals
5. Based on the data obtained on the sample, of the Constantin Brncui University of
we calculate a particular value of the Tg. Jiu, Economy Science, Special Issue,
2014, pp.515-520.
variable:
[4] [4] Iuga, I., Cioca, I. C., Analysis of
R 2 n 2 Correlation between the Unemployment Rate
01
Fcalc
1 R
2
01 and Gross Domestic Product in the European
Union, Polish Journal of Management
Studies, vol.7, 2013, p. 71-78.
= -317
[5] [5] Tulai, C.I., Finanele publice i
Because Fcalc doesnt belong to the fiscalitatea, Casa Crii de tiin Publishing
distribution [0; 3.84], we reject the null House, Cluj-Napoca, 2003, p. 241-248.
hypothesis and accept the alternative [6] [6] Bistriceanu, G. D., Finanele agenilor
hypothesis, therefore, R01 0 , so we can economici, Didactic i Pedagogic
Publishing House, Bucureti, 1995, p.294.
conclude that F test explains quite well the [7] [7] Stanciu, F.G., Consideraii contabile i
correlation between GDP per capita and fiscale privind sistemul TVA la ncasare,
VAT as % of GDP for a materiality value of Revista Contabilitate, Expertiz i Auditul
5%. Afacerilor, no.8, 2013, p. 53-56.
[8] [8] Hada, T., Cioca, I.C., Avram, T., Impozite
5. Conclusions i taxe din Romnia n anul 2015. Legislaie
i studii de caz, Aeternitas Publishing House,
From the analysis of GDP per capita in Alba Iulia, 2015.
the countries of the European Union in 2012, [9] [9] Directive 2006/112 / EC of 28 November
we see that only industrialized countries have 2006 on the common system of value added
tax, published in the Official Journal no. L
a value above the EU limit (28) of this 347 of 11 December 2006, p.1, as amended
indicator, namely: Luxembourg, Denmark, subsequently.
Germany, Ireland, Austria and Netherlands. [10] [10] Law no.571/2003 on the Tax Code,
The level of this indicator in Romania are amended and supplemented, title VI, art.125-
below the EU (28), namely 53% to 100%. 161.
Regarding the VAT share in GDP we
notice that the highest values are in: Croatia,
Hungary, Sweden, Finland and Bulgaria. The
value in Romania at the VAT as% of GDP is
8.5% over the value recorded by the EU (28)
of 7.1%.
Calculating the GDP per capita and VAT
as % of GDP showed that there is a
correlation between this two indicators but
not very strong. GDP may be influence by
another factors such as: investments,
legislation, purchasing power of population,
infrastructure etc.
6. References
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Volume XV, Issue 1 /2015
Ciurlu Loredana
,,Constantin Brancusi University of Targu Jiu, Faculty of Economics and Business
Administration
lciurlau@yahoo.com
Cruntu Genu Alexandru
,,Constantin Brancusi University of Targu Jiu, Faculty of Economics and Business
Administration
cgenuc@gmail.com
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6. Conclusions
7. References:
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These measures are transmitted by two private sector assets which can have
channels: the signalling channel and the wide ranging portfolio effects. In this
portfolio-balance channel. regard, a central bank acts as a
The signalling channel, which allows market maker and lender of last
central bank to communicate, in resort, which can be an extremely
order to restore market confidence powerful policy tool when credit
and to affect the private expectations markets are unstable.
regarding the future policy decisions.
Usually, this channel is helpful when 3. Economic Impact
official interest rates are at the zero
level and the central bank wants to QE may lead to an inflation level, higher
give a boost to the economy. than desired, if it is purchased an
The portfolio-balance channel, overestimated volume of liquid assets. Also,
through which the economy is if banks do not want to lend money to
affected, because private and public businesses and household, QE has the risk
securities are bought and because not to increase demand. Even in this
they are given loans to the financial situation, QE can further facilitate
and non-financial institutions. This deleveraging process, as yields fall.
channel acts when the assets and But, between monetary growth and
liabilities of private sector balance inflation appear a time gap. If the economy
sheets are imperfect substitutes. The of the system outgrows the growth rate of
central bank can use this channel, eased money supply, then the inflationary
when wanting to reduce tensions in risks can be attenuated.
particular segments of the financial When the increase of production relies on
markets, when trying to cut yields higher money supply, it may cause the
and when establishing to prevent and foreign currency appreciation and the
counter the effects of financial national currency depreciation, even if there
frictions on financing conditions. is enough currency on the market. So,
Cullen O. Roche identified the depreciation is advantageous for the
transmission mechanisms of QE, that can exporters from the country with QE policy,
alter the future economic outcomes [2]: and for debtors. On the other hand, is
QE can alter long-term interest rates, disadvantageous for importers, because they
which can influence private import at a higher price, and for creditors,
investment and the creditworthiness too.
of the private sector. Some economists consider that QE is a
QE has a powerful psychological factor that may cause unpredictability. The
impact on both asset prices and the growth of bank reserves increases the supply
economy and can alter expectations of money only after a certain period of time,
of future economic outcomes. Some so that meanwhile, the reserves too high,
economists call this the expectations when are borrowed, are a risk for rising
channel or forward guidance effect. inflation.[4]
QE involves a portfolio rebalancing It was observed that in countries that have
effect, where the central banks implemented QE policy, there are more jobs
intervention in the outstanding and a higher GDP.
private sector assets can alter the
asset options for private portfolio 4. Quantitative Easing in UK
composition. Some economists refer
to this as the wealth effect. In UK, Bank of Englands Monetary
QE alters the composition of the Policy Committee, chaired by the Governor,
private sectors assets by changing is the QE policy maker.
the moneyness of the private This policy imply the fact that new money
sectors assets. Some might call this are created electronically by the Bank of
monetization. England and with them are acquired gilts
QE can directly alter the value of from private investors, like insurance
companies and pension funds. Because of
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Source: Joyce, M.
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5. Conclusion 6. Acknowledgement
A deeper understanding of the role of the This work was cofinanced from the
different unconventional measures in European Social Fund through Sectoral
preventing disruptions and in restoring Operational Programme Human Resources
normal conditions in financial markets is a Development 2007-2013, project number
crucial ingredient for the selection of the POSDRU/159/1.5/S/142115 Performance
instruments, that should be included in the and excellence in doctoral and postdoctoral
central banks crisis toolbox. In general, research in Romanian economics science
unconventional measures prevented a domain.
collapse of the financial system and a deeper
contraction of the real economy, as a result of 7. References
the global crisis.
Quantitative easing is one of the most [1] Bernanke Ben, Credit Easing versus
important unconventional monetary policy, Quantitative Easing, Federalreserve.gov,
whose purpose is to reduce the costs of 2009.
private borrowing by large-scale purchases of [2] Cullen O. Roche, Understanding Quantitative
Easing, Orcam Financial Group, LLC,
privately issue debts, instead of public debts.
2014.
After we have tried to define the policy of [3] Joyce Michael, Tong Matthew and Woods
QE, we described the various measures Robert, The United Kingdoms quantitative
adopted in the UK, US and in the euro area, easing policy: design, operation and impact,
during the recent crisis. Quarterly Bulletin 2011 Q3, 2011.
We did this to ensure an overview of the [4] Taylor John, The Feds New View is a Little
main theoretical aspects that encourage the Less Scary, 2013-06-20 blog pos, 2013.
use of unconventional measures, in the case [5]***http://www.bankofengland.co.uk/monetary
of financial distress, and to highlight their policy/Pages/qe/qe_faqs.aspx
efficiency. These measures are transmitted by [6]***http://www.bankofengland.co.uk/publicatio
ns/Pages/news/2015/004.aspx
two channels: the signalling channel and the
[7]***http://www.investopedia.com/terms/q/quan
portfolio-balance channel. Also, we have titative-easing.asp#ixzz3ZQws4yRa
presented the transmission mechanisms of
QE, that can alter the future economic
outcomes.
He have focused on QE analysis in UK.
We have tried to present how does QE work,
the necessity of QE in the UK, the history of
QE in the UK and forecasts, too. Also, we
have presented the transmission channels of
QE in UK.
We have studied the economic impact of
QE. Increasing the supply of money can
depreciate a country's exchange rate in
relation to other currencies, via the interest
rate mechanism. Depreciation is
advantageous for exporters from the country
with QE policy, and for debtors. On the other
hand, is disadvantageous for importers,
because they import at a higher price, and for
creditors. Also, it was observed that in
countries that have implemented QE policy,
there are more jobs and a higher GDP.
Monetary policy of QE added a new tool
to the central bank policy toolbox, that will
likely remain an important topic of
discussion for policymakers and for
economists, too.
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Covrig Mihaela
Bucharest University of Economic Studies, Bucharest, Romania
mihaela.covrig@csie.ase.ro
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Website www.efin.ro/credit-scoring, [3], insurance policy for the entire period of loan
offers the possibility to calculate ones reimbursement, respectively an optional
scoring with a view to obtaining a personal complex insurance policy, to be paid for
loan from a Romanian bank. The required additionally, meant to protect the customer
information refers to gender, marital status, against unpredictable risks or events, such as:
level of income, other loans, or payment unemployment, involuntary job loss, total
delays history, and the result is displayed as and permanent invalidity, or temporary
a score granted to each applicant. Result disability. This constitutes a protective
interpretation is as follows: measure both for the bank, and for the
- values between 0 and 50 points insured, as well as for the insureds family,
signify that the reimbursement probability is all the above benefitting from an increase in
under 50%, so the applicant cannot be opportunities.
granted a loan; Differences in individuals opportunities
- values between 50 and 80 points when trying to access a loan arise when we
indicate that the applicant could be granted a take into account the costs of a similar type
loan by some banks or financial institutions, of credit from ING Bank: if a Romanian
as the probability is from 50% to 80%; citizen applied for this loan, he/she would
- values between 80 and 100 points, have to pay an interest varying between 9.5%
which means that the reimbursement and 14.35%, [4], unlike an applicant who is a
probability is over 80%, qualify the applicant resident in Luxembourg, who would pay an
for obtaining a loan from the majority of interest of only 3.79%, [5].
banks or financial institutions. One can notice that in the field of
Together with scoring, someone can personal loans there are apparently opposed
obtain also the current level of indebtedness, manners and strategies regarding loan
the maximum amount that one can borrow granting and interest policy. To illustrate this,
and, more than that, even possible banks that two different strategies of two important
might be willing to grant the loan, annual European banks will be presented below.
interest rate and the value of a monthly British bank HSBC grants British citizens
installment. Equipped with these results, an personal loans with annual interests
individual can have a better picture of his/her emphasizing a downward trend, from 21.9%
own capacity to reimburse a loan. for loans of up to 1,000, to 3.9% for loans in
After simulating different situations, we amount between 7,000 and 15,000, for a 5-
can notice that gender does not alter scoring year reimbursement period, [6], as we can
value, given that all the other variables see in Figure 1 below. This is one of the
remain unchanged. On the other hand, biggest interest variation favorable to those
marital status does. For instance the change customers who apply for bigger loans, and it
of not married to married induces a rise is meant to encourage consumption.
with up to 10 points of ones scoring, On the contrary, French bank BNP
consequently the chances to obtain a loan Paribas, considered the biggest bank in the
increase significantly. This variable induces Euro zone, grants Belgian citizens, for
the appearance of an opportunity difference instance, personal loans with annual interests
in obtaining a loan, as ones spouse is rising with the amount requested and with the
considered a co-payer. Thus, the existence of reimbursement period, [7]. This strategy
co-payers (spouse, others) constitutes an discourages the populations indebtedness
advantage in obtaining a loan, for instance increase and is meant to make the applicant
when applying for DIVERS BCR personal more responsible. Loans granted in these
loan. conditions address those who have the right
One of the characteristics of personal profile and potential to reimburse the
loans is the compulsory purchase of a life amount, accepted by the bank.
insurance policy or of a more complex type These very different approaches are a
of insurance with a view to reducing the consequence of both these banks strategies,
proportion of customers who are unable to and of the impact and of the social stability
reimburse the loan. For example, DIVERS of the areas in which they operate.
BCR personal loan is associated with two
insurance policies of this type: a life
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Figure 1. The evolution of annual interest in 2009, the average level of one claim was
for personal loans with HSBC-UK, on the 1,060 EUR, while in 2014, for the same type
requested amount. of claim the average paid compensation was
1,600 EUR. The average value of MTPL
premium evolved as following: from 139
EUR in 2009, to 116 EUR, in the first 3
quarters of 2014, [11].
Following the European Court of Justice
resolution from 01.03.2012, starting with 21
December 2012, insurance companies cannot
use gender when determining insurance
premiums. Until March 2012, gender
differentiation was allowed when calculating
insurance premiums, both in the case of life
insurance, and in the case of general
insurance, if actuarial statistics could
3. Gender equality or discrimination in demonstrate that gender was a significant
pricing a MTPL insurance policy factor likely to influence the risk taken over
by the insurance company, [12].
In conformity with the official data from When establishing premiums in the case
Financial Surveillance Authority (FSA), cited of automobile insurance, the immediate
on www.insuranceprofile.ro, [8], on effect of the above mentioned resolution
11.12.2014, Romanian insurance market hit a consists of uniform or flattened prices of
low after emphasizing a constant decreasing MTPL or CASCO policies, which were
trend in the last 7 years, as can be noticed in differentiated according to gender before 21
Figure 2. December 2012. As a consequence, women
ended up paying more than they did prior to
Figure 2. The evolution of Romanian that date, although it was statistically proven
insurance market, in the interval 2008-2014, that they cause fewer and less important
figures corresponding to the 3rd quarter of damages, while men pay a lower price as
these years, [9]. compared to the previous price of MTPL
policy.
At the end of 2012, in Great Britain
conjectures were made that this resolution
will generate an almost 25% rise in the
premiums paid by women, and a 10%
reduction of those paid for by men, and that
these changes will be visible in the segment
of young drivers. Up to that moment, men
paid premiums almost 40% higher than those
for by women. In the case of 40 year olds and
above the resolution does not seem to induce
In the first 3 quarters of 2014, gross any differences, as men and women in that
written premiums (GWP) for automobile age group emphasize similar behavior with
insurance, namely MTPL and CASCO, respect to claim rate and costs for the insurer,
represented 55.3% of the total GWP for [13].
general insurance. A possible solution for younger drivers
In conformity with FSA, in the first with a less risky behavior, especially for
quarter of 2014, GWP for the MTPL segment younger women, is Telematics, i.e. taking
of the market increased by 8.7%, and yet a into consideration a drivers driving style
131% loss was recorded, [10], in trend with made possible by the setting on the car of an
the combined claim rate, which in the last 5 electronic device that will record the drivers
years was in excess of 100%. In figures, the global driving behavior: speed, breaking
contrastive evolution of the average price and style, acceleration style, or parking place,
the average cost of damage is the following: among other things. Currently, this solution
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is not yet widely available, especially in insured categories, although these will be
Great Britain, where it is only offered by few influenced mostly by everyones damage
of the insurance companies present on the history, namely by the driving behavior
market, such as Aviva, [13]. observed over a longer period of time.
However, gender is not the only variable
that is taken into account when calculating 4. Conclusions
premiums for automobile insurance.
Explanatory or predictor variables likely to Gender equality is an unquestioned gain
influence damage cost and frequency are the of the present age, with an undeniably major
following: drivers age, automobile type, social impact, and which, in time, will trigger
number of kilometers travelled annually (in equal opportunities in the insurance sector,
some countries), or accident history given that individual responsibility and
expressed as a Bonus-Malus category. individual driving history will be evaluated.
Age is considered a critical factor, which By penalizing riskier behavior, by
is easily explained by the riskier driving establishing bigger premiums based on
behavior of younger drivers as compared to drivers behavior as resulting from their
experienced drivers. Young drivers with no claim history, insurance companies can
claim history seem to be the most contribute to encouraging a more responsible,
discriminated against age group in what less risky driving and life style.
concerns the price of a MTPL insurance
policy. Currently, there are debates about this ACKNOWLEDGMENT
aspect, namely the justification for bigger This paper has been financially supported
premiums for young drivers (under 25) as within the project entitled SOCERT.
compared to those established for other age Knowledge society, dynamism through
categories. FSA recently imposed regulations research, contract number
(from February 2015), that altered the POSDRU/159/1.5/S/132406. This project is
23/2014 Norm / Standard, seeking to co-financed by European Social Fund
rebalance premiums on the MTPL insurance through Sectoral Operational Programme for
market. One of the insurers justifications for Human Resources Development 2007-2013.
the rise in the price of a MTPL policy was Investing in people!
insurers obligation to establish MTPL
premiums so that these should cover all
5. References
commitments deriving from insurance
contracts signed with this market segment, [1] Agresti, A., Categorical Data Analysis,
[14]. Due to the abrogation of this Second Edition, John Wiley & Sons, 2002.
requirement and due to regulations referring [2] Hosmer, D.W, Lemeshow, S., Applied
to the limitation of administration and Logistic Regression, Second Edition, John
Wiley & Sons, New-York, 2005.
brokerage costs of insurance companies in
[3] www.efin.ro/credit-scoring
favor of compensation costs, insurers were [4] https://www.ing.ro/ingb/persoane-
forced to find alternative solutions, and one fizice/credite/personal.html
such solution would be to increase the [5] https://www.ing.lu/ING/EN/Personal/Loan/P
premiums of the other age categories. ersonalloan/EMPRUNTER_CREDIT_PERS
In the long run, after a period in which an O_EN
insureds claim history will be established, [6] http://www.hsbc.co.uk/1/2/loans/personal-
young women drivers, currently the category loan
most affected by the elimination of the [7] https://www.bnpparibasfortis.be/portal/start.a
above-mentioned gender criterion, will be sp
[8] www.insuranceprofile.ro
entitled to discounts corresponding to the
[9] Boldijar, V., Editor, STATISTICS: The
Bonus category in which they will qualify. ROMANIAN insurance market reached the
These discounts can range from 5% in the lowest value in the past 7 years,
case of Bonus class B1, up to 50% for Bonus http://www.xprimm.com/STATISTICS-The-
class B14. ROMANIAN-insurance-market-reached-the-
In time, not taking into account the gender lowest-value-in-the-past-7-years-articol-
variable is likely to result in differences in 2,10,25-5910.htm, 2014.
the amount of premiums paid by different [10] Boldijar, V., Editor, STATISTICS:
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Key words: income tax, individuals, In the specific literature the efforts to
European Union define taxes are multiple, reflecting the views
J.E.L. classification: E02, H11, H21 of the authors on the tax burden
dimensioning criteria. Thus, according to
Talpo (1995, p. 137), tax is a form of
1. Introduction forced levy available to the state, without
direct consideration and designated non-
The impact of the fiscal policy on the real refundable, of a portion of the income or
economy is multiple and complex, its wealth of an individual and/or legal person,
transmission channels (to boost economic to cover some public needs[3]. Liliana
growth) being numerous: Donath (2007, p. 200) defines tax as the
- accumulation of productive factors: mandatory contribution, designated non-
- proper incentivisation through the tax refundable, payable by individuals or legal
system and benefits; persons to the state for the income they
- ensuring a stable macroeconomic derive or assets they possess[4].
environment.
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According to Mutacu (2005, p. 70), tax parameters and provided some empirical
may be defined as a compulsory transfer of evidence regarding this incidence[8].
value at states disposal, with no equivalent,
definitive and with no strictly stated 3. Method and data
destination, payable under the law by
individuals and legal persons based on the Once the economic crisis hit, the
earned income, assets owned or expenditure arguments in favour of reducing the tax
incurred[5]. Finally, in the view of Tulai and burden on the income from employment have
erbu (2005, p. 19), tax is a pecuniary levy, gained ground. However, achieving this goal
imposed under the law by the public remains difficult, as may be seen from the
authority, i. e. the state, from the taxpayers, upward evolution in 2012 of the implicit tax
individuals and legal persons, being used to rates (ITRS) on labour income. Following the
cover states public spending and as steep fall in 2009 and stabilization in 2010,
intervention tool in the economic life[6]. both the EU-28 average value, and the EA-18
Taxes used in practice are diverse, both in average value (Euro Area) reached pre-crisis
terms of form which they embody and in levels (see Figure 2).
terms of content. Of the 28 Member States, 20 showed an
Taking into account the form and the increase of the ITRS on labour income in
substance, there are two types of taxes: 2012, the sharpest being in Greece (from
- direct taxes, charged nominally on 30.9% in 2011 to 38% in 2012), followed by
individuals and/or legal persons, depending Cyprus and Poland, each with an increase of
on their level of income or wealth; 2 percentage points. In Romania, Estonia and
- indirect taxes levied at the sale of goods the United Kingdom, the ITRs on labour
or provision of services. income fell by more than half a percentage
Direct taxes have the following structure point in 2012. Labour related fiscal pressures
(Ctinianu, 2002, p. 228)[7]: vary substantially across the Members States:
the highest ITRs on labour income are held
Figure no 1. Structure of direct taxes by Belgium (42.8% in 2012), Italy (42%) and
Austria (41.5%), and the lowest values are
found in Malta (23.3%), Bulgaria (24.5%)
and the United Kingdom (25.2%).
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Figure 3. Evolution of higher rates of the personal From 2000 to 2012, the components of the
income tax, 1995-2014 (%) ITRs on labour income experienced extensive
changes in several Member States (see Figure
5). As to the EU-27 average value, incomes
taxes declined, while social contributions and
wage taxes paid by employers, along with
employees social contributions increased
slightly (as a percentage of the total labour
Source: Taxation trends in EU (2014), p. cost). Regarding the Euro Area, the only
29.[17] change relates to a minor increase compared
to year 2000. As to the individual changes, it
The top income tax rate for individuals may be noticed that most Member States
varies significantly between Member States, have reduced the ITRS on labour income due
from a minimum of 10% in Bulgaria to more to the reductions applied on income tax or
than 55% in Sweden, Portugal and Denmark. employers social contributions.
The lowest tax rates are recorded in Bulgaria,
Lithuania, Hungary and Romania. Despite Figure 5. Evolution of the structure of the
the above, it has to be mentioned that not ITRs on labour income, 2000-2012,
only the level and changes in tax rates are (differences in percentage points)
important, but also the level of income on
which they are applied. Moreover, rate
progressivity, structure of deductions and
breaks, as well as the tax base plays a
decisive role regarding the effective tax
burden.
Regarding the structure of taxes on labour Source: Taxation trends in EU (2014), p.
income, in most Member States social 30.[17]
contributions hold a higher share from the
labour income taxation than the income tax In the last decade, political factors often
itself. On average, more than two thirds of resorted to lowering taxes on labour income,
the ITRs on labour income represent non- those affected being the workers with low
wage costs borne by employees and earnings, the aim being to encourage
employers (see Figure 4). In Denmark, where employment of low skilled persons. To assess
social contributions are very low, personal progress in this direction, we shall take into
income tax account for more than 92% of the account the tax wedge, which is the
ITRs on labour income. In Ireland and the difference between labour costs to the
United Kingdom, the income tax represents, employer, and the net income of the
also, a significant share of the ITRs on labour employee. Figure 6 shows the tax wedge for
income (65%, and 52% respectively). In low-wage workers, specifically in case of an
Poland, on the other hand, income tax unmarried couple, without children, who
represents less than 20% of the ITRs on earns two-thirds of the average wage. In 2002,
labour income. the tax wedge at European level was 37.9%;
it fell to 35.9% in 2009, being followed by an
Figure 4. Structure of the ITRs on labour increase until 2013, reaching 36.8%.
income, 2012, (%)
Figure 6. Evolution of the micro- and
macroeconomic indicators of tax burden on
labour income, EU-27, 2002-2012
(year 2002 = 100)
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low income, single mothers, low-skilled and related to the labour employed. It is possible
older workers, who are close to retirement that these measures aimed at employers be
(Mirrlees et al., 2011) [15]. more suitable in the short term, reducing the
As the crisis deepened and lengthened, it tax cost of labour and having a potential
was increasingly evident that tax reforms impact on reducing unemployment.
should be designed in a manner favourable to With regard to incentives granted to
growth, taking account of the poor. While the vulnerable groups, we recall that in Belgium
overall fiscal pressure increased, tax reforms the measures taken were to reduce social
of 17 Member States have taken the path of a contributions for small and medium
higher redistribution on the revenue side. businesses and some employees. Furthermore,
Eleven states increased personal income employees with low incomes will receive
taxes for those with higher earnings. Three of bonuses, reinforced by a reduction in
them simultaneously lowered the tax burden employers social contributions and tax relief.
on lower income tranches or in case of some In Hungary, the reduction or elimination of
target groups: Portugal - for hiring social contributions targeted young people,
unemployed older than 45 years, the older people, the low skilled, workers who
Netherlands - for older employees and France were previously unemployed and mothers
- for small and medium income tranches. with small children. Portugal has focused on
Other six Member States (Belgium, incentives for workers over the age of 45, by
Denmark, Finland, Hungary, Italy and reimbursing employers social contributions.
Sweden) implemented measures to reduce tax In Sweden, workers aged over 65 benefit
burden on labour income for some categories from an increase in the basic deduction for
of workers. These measures aimed at people income tax.
with low earnings, and older employees
(Belgium, Hungary, Sweden), low skilled 4. Conclusions
people (Belgium, Hungary), youth (Belgium,
Hungary, Italy), women (Hungary, Italy), and When carefully designed, tax systems
employees in certain geographical areas may help redefine the triangle of
(Hungary, Italy). sustainability, growth and equity, objectives
The issue of fiscal burden sharing that have become even more important
between people with high earnings and those following the most severe economic crisis
with low earnings (known as vertical equity) after the 1930s. The three objectives are
seems to attract more attention in the context sometimes regarded as contradictory, focus
of increasing taxes because of budgetary being placed on one element involving
consolidation. Following the analysis by negative consequences for others. Although
Atkinson and Stiglitz (1976), there is a there are some compromises, Member States
general consensus in the economic literature may, at the same time, help to ensure stable
that the use of progressive income taxation public finances, boost economic growth,
for redistributive purposes is more employment and competitiveness, as well as
appropriate than different tax rates on goods a fair distribution of income by changing the
(for example, reduced VAT rates) [16]. tax structure in a balanced way, and by
In the nine Member States concerned, improving the effectiveness and efficiency of
measures taken to lower labour costs focused the tax system.
mostly on the tax burden on employers, and Some Member States still face a major
not directly on taxation of employees/ challenge related to budgetary consolidation,
households. Another common feature of in which case increasing the tax burden could
these changes is that they do not take the be helpful in some cases. Any increase in tax
form of rate cuts, but taxable bases are revenues has to be carefully designed.
restricted due to deductions and tax breaks Regarding the tax structure, there is room for
(Denmark, France, Finland, Italy, manoeuvre to remove barriers to economic
Netherlands, Sweden). Belgium and Hungary growth and employment by shifting the tax
have reduced employers social contributions burden on labour towards revenue sources
(Romania recently adopted this measure), that are less harmful to economic growth.
while France and Italy have introduced or With regard to the main challenges on
expanded a tax break on profit taxation and fiscal policy, there are ways to lessen the tax
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Dnil Alexandra
"Ovidius" University of Constanta
alexandradanila14@yahoo.com
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Method used for testing hypothesis decision making. Obviously, this reaffirms
refers to Pearson correlation coefficient the fact that management has a crucial role
and its statistical interpretation. within firms and is mainly responsible for
firm success or failure. Consequently,
4. Results management should be able understand and
apply decisions of General Shareholders
As mentioned in previous section of the Assembly or those of Board of Directors, but
paper, corporate governance variable was also act in interest of all stakeholders.
measured throughout 15 questions. Moreover, they should be able to take
Consequently, average score of corporate decisions quickly, assume consequences of
governance within Romanian firms was that such decisions and achieve established
of 2.893 points. Average scores obtained for objectives. By doing so, firm financial results
each analyzed aspect are shown in Table will improve, which will lead to a higher
no.1. ROE. Hence, findings show that when
Firstly, one weakness identified by management decisions are in accordance
present reasearch refers to transparency of with shareholders vision, ROE financial
information, given registered score is the indicator registers increasing values, meaning
lowest one. This shows that, in many cases, that firm financial performance improves.
management often hides important Secondly, findings show that dividend
information from shareholders, so decisions policy can be used in order to increase firm
taken within General Shareholders Assembly financial performance, as it is signigicantly,
or Board of Directors are not properly but negatively correlated to ROE. Negative
substantiated. value of Pearson r correlation coefficient
Table no.1 - Average scores of corporate refers to the fact that the lower dividend
governance components. allowances are, the better values of ROE are
Average registered. This is explained as follows:
Investigated aspects decisions taken by Board of Directors to pay
score
Dividend policy 3.458 higher dividends to shareholders lead to
Transparency of information 3.106 lowering net profits reinvested in firm, so this
Rights of all stakeholders 3.010 affects medium term financial results.
Consequently, Romanian shareholders should
Management reporting activity 3.263
be aware that only by promoting a balanced
Management decisions 2.992
dividend policy firm will be able to develop,
Meeting shareholders
3.008 to improve its activity and to generate higher
expectations
profits.
Corporate governance - Total 3.139 Preserving rights of all stakeholders is
Source: Authors processing. another aspect that positively influences
Secondly, given obtained average score financial results on the medium-term, as
for managers decisions, it is highlighted that present research revealed. Romanian
management activity is not an effective one, managers often make mistakes in this latter
as it does not lead to taking best decisions. sense, as they consider that shareholders
One possible explanation of this finding lies rights are the only rights they have to defend.
in the fact that in many Romanian firms Still, human capital (employees) is highly
there is no compensation scheme for important for firms, as it is a strategic factor
management. Other explanations could be of firm growth since it creates value and
related to bureaucracy, formalism or lack of generates progress. Moreover, creditors and
experience. contractors also contribute to firm growth, as
Given scores of each of the above they provide necessary resources (financial,
corporate governance components, Pearson material, etc.). Therefore, it may be
correlation coefficient was extracted, in order summarized that firms that preseve rights of
to identify significant correlations. all stakeholders are firms with high financial
As Table no.2 shows, values of Pearson r performance.
correlation coefficient are all significant, Managers reporting activity is also
above .500 threshold. Highest correlation responsible for firm financial results, as
coefficient is that related to the process of Pearson correlation coefficient shows.
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7. References
[1] Directive 2013/34/EU of the European
Parliament and of the Council of 26 June
2013 on the annual financial statements,
consolidated financial statements and related
reports of certain types of undertakings,
amending Directive 2006/43/EC of the
European Parliament and of the Council and
repealing Council Directives 78/660/EEC and
83/349/EEC, available online at http://eur-
lex.europa.eu/legal-
content/EN/TXT/HTML/?uri=CELEX:32013
L0034&from=EN
[2] Pollard M., Mills S., Harrison W., Principles
of Accounting, 1st Edition, Pearson Prentice
Hall, 2008.
[3] IFRS, Norme oficiale emise la 1 ianuarie
2013, Partea A, Cadrul general conceptual i
dispoziii, Editura CECCAR, Bucureti, 2013.
[4] Biondi Y. and Soverchia M., Accounting
Rules for the European Communities: A
Theoretical Analisys, Accounting, Economics
and Law, Volume 4, Issue 3, pp.179-214.
[5] Accounting Law no. 82/1991, republished in
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2. Literature review
1. Introduction
Reference [1] identifies as business
The effort of implementing information factors affecting the information technology
technologies is considerable for a company. adoption the following: business complexity,
This is true in Romania as well, as most of company size (micro, small, medium, large),
the companies are still recovering after the market area (local, regional, national,
financial crisis. The first research question of international), membership to a group of
our study is which are the information companies, the presence of branch offices,
technologies used by the Romanian the level of diversification (in terms of
companies. Next, we wonder which was the products, markets, technologies), the degree
decisive factor which determined the of functional extension [1].
representatives of the company to purchase a Previous researchers ([2]; [3]; [4]; [5];
certain technology. [6]; [7]; [8]) described a number of
We wonder which are the benefits categories of benefits generated by the
brought by the implementation and investment in information technologies. In
employment of the information technologies this article we will use the classification
in the financial accounting department of the suggested by [8]. According to study [8], the
Romanian companies. We chose to study the benefits can be operational, managerial,
financial accounting department of the strategic, IT infrastructure, organizational.
companies as we see it acting as a catalyst, Operational benefits are usually determined
the accountants being responsible for the by the increase in productivity, shorter
fairness of the entries, preparing the reports operating time, cost reduction etc. The
for the management and for the state based managerial benefits refer to the improvement
on the entire activity of the company etc.
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- A better control of the activity. Excel or similar software is used for less of
The difficulties which appear in the 33% of the activities of the respondents.
implementation of the software within the In the future the implementation and
company were reported by the respondents in employment of the software in the financial-
the following proportions: accounting department can be further
- Economic: 25%; analysed. For instance, the questionnaire can
- Technical: 43%; be sent to a bigger number of accountants. A
- Organizational: 48%; bigger number of answers can allow us to
- Social: 20%. make a more sophisticated interpretation.
80% of the respondents state that there
will be an improvement in the managerial 6. Acknowledgement
processes, 75% say that the information
system, the internal control and the This paper was co-financed from the
governance will be articulated, 75% consider European Social Fund, through the Sectorial
that it will have an effect on the Operational Programme Human Resources
computerization of the inter-organizational Development 2007-2013, project number
relationships, 57% consider that the roles in POSDRU/159/1.5/S/142115, project title
the organizations will be redefined, 45% Performance and Excellence in Postdoctoral
consider that during the next period the use Research in Romanian Economics Science
of the information technologies will lead to Domain.
the dematerialization of the documents and
procedures. 7. References
Other effects mentioned by the
respondents were: [1] Buonanno, G., Faverio, P., Pigni, F.,
- The reduction of the decision-making Ravarini, A., Sciuto, D., Tagliavini, M.,
time; Factors affecting ERP system adoption. A
- Resource saving; comparative analysis between SMEs and
large companies, Journal of Enterprise
- Generation of current, correct,
Information Management, vol. 18, no. 4,
coherent information; 2005, pp 384-426.
- A better analysis of the costs; [2] Gefen, D., Ragowsky, A., A multi-level
- The possibility of integration with the approach to measuring the benefits of the
accounting software. ERP system in manufacturing firms,
71% of the respondents consider that the Information Systems Management, Winter
advantages obtained through the 2005, 22, 1.
implementation of the financial-accounting [3] Boulianne, E., The Weighting Effect of
software corresponded to their expectations Balanced Scorecard Dimensions on
to a degree higher than 50%, 25% consider Performance Evaluation, 30th Annual
Congress European Accounting Association,
that their expectations were confirmed in a
25-27 April 2007, pp.219.
degree of 1-50% and 4% consider that their [4] Duh, R.R., Chow, C.W. i Hueiling, C.,
expectations were not satisfied. Strategy, IT applications for planning and
control, and firm performance: The impact of
5. Conclusions impediments to IT implementation,
Information & Management, Vol. 43, 2006,
The biggest part of our respondents uses pp.939-949.
in their activity complex systems such as the [5] Hoque, Z., James, W., Linking Balanced
ERPS. The study shows that in general the Scorecard Measures to Size and Market
accountants are satisfied with the software Factors: Impact on Organizational
Performance, Journal of Management
they use. They mention a biggest number of
Accounting Research, Vol. 12, 2000, pp.1-17.
benefits than difficulties generated by the [6] Ittner, C.D., Larcker, D.F., Innovations in
implementation of the information Performance Measurement: Trends and
technologies. In the same time, many research Implications, Journal of
respondents consider that the information Management Accounting Research, Vol. 10,
technologies can have effects on their 2008, pp.205-238.
department in the future. The efficiency of [7] Deloitte Consulting, ERPs Second Wave,
the software used results from the fact that New York, Deloitte Consulting, 1998.
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The Provisions for the Risk of Loss in the Case of the Loans Granted by
the European Banks
1. Introduction
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relatively low. For the middle class of this calculated for the asset based on the
group (2C) system expects from a sample of methodology of collective provisions related
1,000 customers to produce about 2 to the weakest rating not impaired (4E) and
infringements on average in a year. using adjustments for impaired loans, then
A default of a customer in this category of for asset related provision shall be deemed
assessment will normally correspond 4E.
perfectly to the dramatic deterioration of the Specific Provision = max [(Exposure -
economic conditions. Recoveries updated) Collective Provision
rating 4E]
Group Rating 3 CFt
Rebounds updated
While the top of this class (3A) is still
investment grade, the risk increases
1 i t
significantly here from class to class. For a Exposure - all amounts payable by the
class of 3E evaluation system waits about 27 client to date estimate (including principal,
infringement within one year of a sample of interest, fees, penalties, etc.).
1,000 customers. CFt - cash flow at a time t. The most
Especially for customers at the bottom of important future cash flows will come from
this class rating, average economic declines payments made either by the customer or the
may lead to an infringement [4]. execution of guarantees [5]. The costs
(expenses for executing commissions for
Group Rating 4 assessment of guarantees etc.) will be
4A and 4B subclasses evaluation indicates counted as negative cash flows.
poor credibility. Customers with 4C and 4E t - Time in years when cash flow is
assessments between failures are at risk and estimated to take place.
are put on the waiting list. The economic i - Annual effective - interest.
development of these clients must be
monitored closely. Individual analysis conducted by the
Even a small negative change in the Departments of European financial
economic environment of the company can companies may use in some justified cases,
cause a default. other cash flows and other criteria / period /
discount adjustment factors. In these cases,
Group Rating 5 the allowance will be determined after the
Customers rating class five are regarded individual assessment carried out by the
as being in non-compliance. This state can be relevant directorates and approved by the
reached only by respective risk factors. But people / committees.
even these customers have the chance to Individual analysis performed will cover
return to classs assessment "active" - that is at least the following exposures:
to "recover".
Figure 4. Exposures individual analysis
3. 1. Provisions for impaired assets -
Provisions for impaired exposures
individually significant (specific
provisions)
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4. Cash flows under the repayment plan older than 1 year will consider an
additional haircut of 8% per annum;
For impaired loans that score less than 60 37% of the market for commercial
days overdue expects to make payments mortgages (other than land - CRE);
under the repayment plan until maturity. The 55% of the market for mortgages on land
provision is calculated using the following (Land);
formula: Adjusting for other guarantees as SK
SK1.
Specific Provision = max [(Exposure - For the uncovered guarantees (Unsecured)
Recoveries updated) Collective Provision loss rate (LGD) is 97%.
rating 4E] Cash flows from the execution of
CFt
Rebounds updated
guarantees [6] will be taken into account
1 i t depending on the opportunity and the
recovery period; such priority allocation
depending on the type of collateral is as
follows:
Customers who underwent replacement
operations will be under observation for a
Figure 5. Allocation Priorities
period of 6 months. It was found that the rate
restructure of customers who come back after
six months in default rate is close to default
rating for class 4E. Therefore for these
customers will consider expected losses from
guarantees execution with a corresponding
probability for rating class 4E. The provision
for these customers is calculated by the
following formula - where the uncovered
guarantees and the rate of loss are
determined:
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Ghi-Mitrescu Silvia
Ovidius University of Constanta, Faculty of Economic Studies
mitrescu.silvia@univ-ovidius.ro
Duhnea Cristina
Ovidius University of Constanta, Faculty of Economic Studies
cristinaduhnea@univ-ovidius.ro
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The results are mostly the same across all environment conditions, but they increase
assets classes, except securities, for which significantly should credit quality decline.
46% of the responding banks believe that Another important issue related to IFRS
there is a much bigger possibility that no 9s implementation is the way banks will
changes in provisions will incur, while 41% define and evaluate the significant
believe there will be a value increase of up to deterioration of credit quality. The Delloite
50%. survey respondents choose the following
All the results are based on todays credit answers:
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For all assets classes, a large number of chapter we will try to assess the impact of
banks consider that the significant such an evolution on the Romanian banking
deterioration of credit quality can be define system. In order to do this we will first take a
and measured by the probability to default look at the current situation in Romania in
exceeding a predefined trigger. For terms of non-performing loans and
mortgages and retail credits, most of the provisions.
banks plan to use a one missed payment In the last decade, mostly after the
model of credit risk valuation, while for financial crisis begun, we have witnessed
corporate, small and medium enterprises and deterioration in the credit quality of the
securities the changes in probability to Romanian banking system.
default will be more important. From comparing the value of the non-
In our opinion, these findings prove that performing loans ratio for the 28 EU
banks understand the scope of IFRS 9 and countries during 2007 to 2014 we notice a
that, if applied as stated, the expected credit deteriorating credit quality in most EU
losses model can improve the banking countries in the post-crisis period. This trend
industrys stability. The previously stated is even more pronounced in countries with
findings also lead to the conclusion that less developed economy. Countries that have
banks learned something for the 2007 the highest credit quality deterioration are the
financial crisis and are more careful in ex-Soviet countries, Bulgaria, Hungary,
evaluating the risks involved by mortgages Croatia, Greece and Romania. Among Euro
and retail credits. area countries Finland and Luxembourg had
a constant evolution of the indicator, while
4. Where is the Romanian banking system all the other countries recorded increased
now in terms of provisions? levels of non-performing loans.
In Romanias case, the non-performing
As stated in the previous chapter, the loans ratio increased significantly in this
international banking industry believes that period, reaching a historic high of 22.3% in
after applying IFRS 9 the amount of 2014, but this increase is mainly due to a
provisions for nonperforming loans will lower volume of total loans and less to the
increase by up to 50%. In the following deterioration of credit quality (figure 3).
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Figure 3: The evolution of total gross loans, NPLs and NPLs ratio in Romania between
December 2008 and July 2014
300 25
250 20
200
Bln. lei
15
150
%
10
100
50 5
0 0
apr.2013
apr.2014
dec.08
may 2013
sep.2013
may 2014
jul.2013
aug.2013
jul.2014
oct.2013
dec.2011
dec.2009
dec.2010
dec.2012
nov.2013
mar.2013
jun.2013
dec.2013
mar.2014
jun.2014
jan.2013
feb.2013
jan.2014
feb.2014
Volume of NPLs Volume of total loans to private sector NPLs ratio
Source: National Bank of Romania Financial Stability Report 2014, www.bnr.ro [5]
The total volume of loans given by banks 2013, registering a downward trend thereafter
to the private sector decreased in July 2014 to a low of 36.55 bln. lei in July 2014.
by almost 10 bln. lei compared to the value Same as other EU countries, the banking
of January 2013, while NPLs volume system in Romania protected itself against
recorded at the same two milestones a the risk of non-performing loans by
decrease of about 2 bln. lei. In absolute provisioning exposures in accordance with
terms, the highest level of NPLs volume of IFRS requirements applicable from 2012
45.11 bln. lei was reached in November (figure 4).
40.0 2013
30.0 2014
20.0
10.0
0.0
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5. Conclusions
6. References
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Grigore Marian
The Bucharest University of Economic Studies
Faculty of Accounting and Management Information Systems
g_m_marian@yahoo.com
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The inherent risk is determined by the not detected by the auditor. Thus, through
following factors: the nature of operations; the substantive procedures used by the
the policies chosen by the entity; the situation auditor, he/she may not detect an
of the entity; the accounting, financial and erroneous information existent in the
fiscal regulations (the regulatory inherent accounting records or in the balances of
risk). certain accounts, that may be significant
The risk related to the nature of the in itself or cumulated with the errors in
operations is determined by the activity other records or in other accounts.
sector of the entity and its structure. For avoiding or limiting these risks, the
The risk related to the policies chosen by auditor must use the most adequate
the entity refers to the influence of the correct substantive procedures, which depends on the
transposing in the accounting records of all experience and professional training of the
economic and financial operations that took auditor:
place within the audited entity during the a) The statistic survey techniques represent
period analysed. an estimation of the determined result by
1) The risk related to the situation of the analytical research of a part of the total
entity refers to the financial situation of analysed information. This estimation is
the company, reflected in the accounts. based on two indicators, the allowed
Thus, a favourable financial situation will deviation and the precision of the result.
generate availability excess, which must The allowed deviation represents a
be efficiently placed, and a less relative measure of the probability that the
favourable financial situation will estimation result is inexact.
generate availability deficit, which the The precision of the result represents the
enterprise will seek to cover through interval in which the estimation result lies.
commercial credits (suppliers) or/and The mathematical model of the audit
bank credits. risk (the equation of the risk of audit) is the
The regulatory inherent risk is determined following:
by the complexity of accounting, financial Ra = Ri x Rc x Rn
and fiscal regulations. The bigger the Ra
hence: Rn =
complexity of these regulations, the greater Rc Ri
the probability of errors risk.
2) The control risk is related to the where:
procedures and the quality of internal Ra represents the risk of audit;
control, also known as risk of non-control Ri inherent risk;
or non-managing, and it aims at Rc control risk;
controlling the operations and the Rn risk of non-detection.
accounts. In order to control this risk, it is For example, if we assume that the risk of
necessary to evaluate the internal control audit requested by the client is 2% and the
system of the entity. auditor estimates a 20% level of the inherent
Controlling the operations refers to risk and a 50% level of the control risk, based
respecting the procedures in order to ensure on the equation above, the risk of non-
the integrity and efficient management of the detection may be computed as follows:
entitys patrimony. 0,02
Rn = 0,2 , thus 20%.
Controlling the accounts refers to 0,50,2
ensuring, through accounting and internal The auditor must appreciate the inherent
control systems, that the accounting records and control risks, and based on them will use
concord with the real operations made by the the adequate procedures with the view to
entity and registered in justificatory diminishing the risk of non-detection to a
documents, and that these are not recorded level that ensures an acceptable global level
twice or their registration was not omitted. of the risk of audit.
This control of the accounts depends on the In ISA 320, the significance threshold is
reliability of the accounting system used. mentioned that the relationship between it
3) The non-detection risk refers to the risk and the risk of audit is indirect. The higher
that a significant error, which is not
corrected by the internal control system, is
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the level of the significance threshold, the increase performance. Together with
lower the risk of audit and vice-versa. [2] the management board, the general
Despite his/her efforts, the auditor comes manager chooses the accounting
under the inevitable risk that some significant treatment of data that is to be applied
errors from the annual financial statements and the declaration practices of the
will not be detected, even if the audit is entity with regard to financial
planned and done properly. statements. Thus, the management is
The existence of this risk is caused by the responsible for the way the financial
fact that the frauds involve actions that have statements are made;
as purpose masking them. Such actions may, - The auditors must be sure that the
for example, result from the association of yearly financial statements audited
several persons with the purpose to commit are correct and real.
frauds, or through forgery, or by deliberately The financial auditors must be
not recording transactions, through incorrect independent with respect to the audited
declarations given to the auditor. financial statements. More precisely, they did
not take part in the elaboration of these
5. Conclusions documents even as consultants.
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Grosu Maria
Alexandru Ioan Cuza University of Iasi, FEBA
mberheci@uaic.ro
Mihalciuc Camelia
tefan cel Mare University of Suceava, FEPA
cameliam@seap.usv.ro
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The data processed using SPSS 19.0 comprehensive income is negative. This
statistical tools are summarized in the tables difference is due to the influence of other
below. components of comprehensive income,
analyzed further.
Table 1. Check Hypothesis 1 Gains and losses most frequently reported
Components of CI 2012 under other comprehensive income, except
Comprehensive net income relates to revaluation reserves
negative positiv
Income (31% positive differences and 21% are
22 e negative differences, all reported 33 cases),
negativ 0e
34% followed by differences actuarial on defined
NI 2012
38 e benefit plans (6% of cases) and differences in
positiv 4 e 6%
60% fair value on financial assets available for
25 e 36 e
not sale (3% of cases). It concludes that the
38% 56%
largest share in comprehensive income,
DIHCF 1e
positive 0e outside net income, hold revaluation
2012 2%
1e differences at the level of 2012. Therefore,
negative 1 e 2% Hypothesis 1 is not demonstrated, that not
2%
22 e all components comprehensive income
not 9 e 14% significantly affect its size.
34%
Rev_Res 10 e 10 e Thus, from this result, we attempt to
positive
2012 16% 15% answer Question 3: Which of the components
6e of comprehensive income significantly
negative 7 e 11%
10% influence the global financial performance?
25 e 35 e and such test Hypothesis 2: Comprehensive
not
39% 54% income is directly proportional to net income
AGLDBP
3e and revaluation differences.
2012 positive 0e
6% To test this hypothesis, we used a multiple
negative 1 e 2% 0e
linear regression model, the numerical
24 e 36 e
not variables are: CI Comprehensive Income,
38% 56%
DFVFAS NI Net Income and Res_Rev - Revaluation
2e
2012 pozitive 0e Reserves.
3%
negative 2 e 3% 0e The regression model is of the form:
26 e 36 e Yi=0+1X1i+2X2i+i. This model tested the
not influence of net income and revaluation
41% 56%
OCI 2012 reserves (independent variables) on
2e
negative 0e comprehensive income (dependent variable).
3%
Source: SPSS 19.0 statistical processing After processing in SPSS 19.0 and
results obtaining regression coefficients, we present
multiple linear regression model:
Based on the table above, we try to CI2012=120128+1010xNI2012+1034xRes_R
answer the first three questions, so as to ev2012+
support or reject Hypothesis 1. We mention The obtained require some explanations
that data interpretation prelucarte was made and comments. First, according to the results
only for 2012, 2011 restated situation is very obtained from the processing carried out, we
similar. To answer the first question: Are find that the value of Sig. to F is less than
there differences between net income and 0.05, so that the relationship between the
comprehensive income (net result positive, variables considered to be significantor
comprehensive income - negative or vice otherwise, the model is statistically
versa)?, we see that in 34% of cases, negative significant.. Report of determination R2 equal
net income produces a negative to 1 indicates that the dependent variable
comprehensive income (22 entities) and in (CI2012) is influenced by independent
60% of cases, positive net income variables in 100% (NI2012, Res_Rev2012). This
determined a positive comprehensive income result appears ground that other
(38 entities). Only 6% of the cases studied (4 comprehensive income are significant and
entities), the net income is positive and the have a very low frequency of occurrence,
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the financial position and performance of an changes in equity and / or the cash flow
entity and of its transactions, with the statement.
objective of providing information about the
financial position, performance and changes 2. The balance sheet
in the financial position of an entity to a wide
variety of users. The objective of this The balance sheet is a basic concept,
Standard is to prescribe the basis for the particularly important, used frequently to
presentation of financial statements so that to operate in the theory and practice of
ensure comparability both with the financial accounting.
statements of the previous periods and with Although the balance sheet is known and
the financial statements of other entities. used for centuries in the accounting practice,
These international standards adopt the it becomes the object of some special
concept of deregulated financial statements research only at the end of the last century.
based on the concept of a minimum of The research on the role and functions of the
information without regulating a standard balance sheet have then widened a lot, thus
form for the elements of financial statements. resulting from these numerous research
This is confined to listing the components of theories of the balance sheet [4].
the basic financial statements: assets, The balance sheet is a system that
liabilities, equity (stock), income and represents the correlation between the
expenses (profit and loss account), cash economic means and the resources of their
flows of an entity [7]. formation in a balanced relationship between
Besides the standard set of financial assets and liabilities, ensured by the financial
statements, an entity may present a financial results - profit or loss - obtained during the
analysis conducted by the management of the reference period. Within accounting, the
company, covering the main features of balance sheet performs a financial accounting
performance, financial position and the function, ensuring the opening and closing of
principal uncertainties they face [1]. accounts as well as the presentation at year-
Directive IV adopted the concept of end of the existing economic means and
regulated financial statements based on the training resources, including the results of
model of maximum of information - it their activity [7].
provides the scheme and the standard models
that define the content and the format of the 3. In the vision of the Romanian norm
financial statements. In order to eliminate the setters
differences between the provisions of the
European Directives and the provisions of Within the two stages of the accounting
international standards, Directive IV has reform in Romania, there may be noted the
undergone some changes allowing option of harmonization of the structure and
comparability for the companies reporting content of the balance sheet with the
under IFRS but have the Directives as basic requirements of Directive IV. Choosing a
legislation [5]. balance model or another, of the two schemes
In Romania, the compositions of the provided by the Directive, has not been made
financial statements differ depending on size following some analyzes of the Romanian
criteria (total assets, turnover and the average norm setters, this approach being the
number of employees). Thus the entities that consequence of counseling of foreign experts
meet two of the three size criteria draw up a who contributed to the reform process.
set of annual financial statements that We can say that with these regulations, the
comprise: balance sheet, profit and loss Romanian norm setters have chosen the
account, the statement of changes in equity, model found in the British practice, the
the cash flow statement, explanatory notes to balance sheet as a list. Without the
the financial statements. The other entities regulations to specify this, the balance sheet
draw up simplified financial statements model is mainly directed towards the
including: abridged balance sheet, the profit liquidity and solvency analysis. It
and loss account, explanatory notes to the approaches, in structure and design, to the
simplified annual financial statements. provisions of international accounting
Optionally they can provide the statement of referential, stating, however some
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incomparabilitys with standard IAS 1. While this value and the provision of information
maintaining the older option, the Romanian necessary for national accounts [1].
norm setters enroll the set up expenses in the
structures of intangible assets, and thus create 5. In the vision of the Romanian norm
an incomparability with standard IAS 1. setters
This balance sheet format offers the
possibility of calculating some liquidity Following the research conducted, we
indicators as: net current assets, current net note that the Romanian accounting reform in
liabilities that actually reflect the value of the its first stage resulted in the profit and loss
necessary floating capital fund and the total account in the list format and a structure of
assets minus current liabilities that reflect the expenses by nature. This model was inspired
value of permanent capital. By comparison by Directive IV, but unlike it, the tax profit
with the revised version of IAS 1, it is noted was not confined on the two categories of
that this standard allows the presentation of results (ordinary and extraordinary), but it
an indicator called net assets that actually was calculated and globally highlighted and
reflects the net situation, but it does not the stock variation was present in the
exclude the presentation of an indicator to structure of operating income [6].
calculate the net current assets, as a The second stage of the reform, carried
representative of the company's financing out under British counseling, was marked by
capacity [4]. the application of international accounting
This balance sheet model regulated by the standards. The norm setters in Romania have
Romanian norm setters leaves no room for chosen the classification of operating
professional judgment, being more easily expenses by nature, but they do require the
controlled by the tax authority, as its presentation of an explanatory note on the
privileged user of accounting information. classification by purpose, in order to meet the
requirements of standard IAS 1 - The
4. Profit and loss account Presentation of Financial Statements.
We can say that although it approaches
In the specialized literature we find the norm IAS 1 structure, the layout of the
different opinions on the advantages or profit and loss account is much more in
disadvantages of each method of presentation agreement with the Directive IV. However,
of the profit and loss account. Some believe the model promoted has also included
that the list format of the profit and loss elements of international accounting practice,
account, with the presentation on functions of by moving from the classification current -
income and expenditure, reveals the result exceptional to the classification ordinary -
generated by each type of business performed extraordinary.
by a company. Other opinions consider that
the presentation of the profit and loss account 6. The Cash Flows Statement
after the economic nature of expenditure and
revenue is the one responding to an objective As previously stated, the balance sheet
criterion, opposed to the delimitation of shows the balance of cash and cash
expenditure by functions of the company, equivalents of the company at the beginning
considered as a subjective presentation, and at the end of the financial year so that it
explained by the delimitation of the functions can be specified whether their values have
of the enterprise [2]. increased or decreased during the period.
The presentation of the profit and loss This does not allow finding the cause of
accounts according to the nature of income variation in the balances of cash and cash
and expenses is usually found in the equivalents during the year [2].
countries with a dualist accounting system, On the other hand, the profit and loss
characterized by the disconnection, at various account provides information on the income,
degrees of the financial accounting from the the expenses and the results of different
management accounting. This form of activities, the sources and the uses of cash
presentation allows determining the added and cash equivalents, but this financial
value to the level of the company, explaining situation does not explain the causes of these
the way it divides in between the creation of variations. Thus, it appears the need for
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financial statements (The cash flow the cash flows from the operating activity the
statement) having such flows, as to show the international regulation also remembers two
origin of the sources of liquidities and how methods: direct or indirect. Standard IAS 7
they have been used, explaining the causes of recommends presenting the cash flows
their variation. associated to the operating activities using
Bernard Colasse defines the Treasury as the direct method, whereby the information
being what remains from the steady resources provided refers to receipts and payments in
after being financed the assets and the their gross quantities.
financing need related to the current activity Although IAS 7 Standard encourages the
or the need for floating capital and warns use of the direct method, mainly to satisfy the
that this notion of treasury should not be information need of the investors (that may
confused, as in everyday language with that proceed to the estimation of dividends that
of liquidities [3]. could be collected in future years), many
Regarding the classification of cash companies prefer to use the indirect method
receipts and payments, the American due to its correspondence with the accrual
regulation, as well as the international one, accounting and its more discreet character
retains their distinction in the operating, especially when publishing this situation
investing and financing activities. Also for using the direct method would not be an
determining the cash flows from the advantage for the image of the entity. A
operating activity, it can be used the direct or notable issue in our opinion, is the fact that
indirect method, but whatever the means, the some transactions may include cash flows
cash flow statement drawing involves the that are classified in several activities. For
transformation of the information from the example, in the case of a loan repayment
profit and loss account. Thus, the direct through cash outflows, the payment refers
method concerns the gross receipts and both to interest, that can be classified as
payments and the indirect method concerns operating activities and to borrowed capital,
the adjustments required to convert the net which can be classified both in operating and
income in cash flow from the operating financing activities [6].
activity [5]. Currently the cash flow statement is
Therefore, companies that choose the regulated in terms of form and content by
direct method must submit, in a separate OMFP 1802/2014. The Romanian norm
document, a reconciliation between the net setters, in the reglementation of this financial
income (net result) and the net cash flow situation, refer to the applicability of
from the operating activity in order to Standard IAS 7 - The cash flow statement.
provide information on the operating net
effects of the transactions and other events 7. Conclusions
affecting the net income and the operating
cash flow in different periods of time. In the specialized literature and in the
In the international vision, IASB presents various accounting systems, the financial
the issue of the cash flow statement by IAS 7 statements are found under several names:
standard - The Cash Flow Statement, annual accounts, accounting synthesis
revised, that followed most of the rules of the documents, annual financial report. Mainly,
FASB standards. The objective of IAS 7 these offer the same concept, but there are
standard is to draw the preparation, some differences, especially in terms of the
presentation and disclosure policies, related composition of these set of financial
to this financial situation that aim to provide statements. The financial statements from
information to users on the basis of different referentials present some
evaluation of the ability of the company to differences generated by the diversity of
generate cash and cash equivalents as well as legal, economic and social environments, and
covering the needs of the company to use also by the different needs of the users,
these cash flows [3]. determined by the specific of national
As previously noted in the US legislation, requirements.
the flows of cash receipts and payments are From the comparative study (FASB -
classified as operating, investment and IASB - European Directives, Romania) there
financing activities. In terms of determining can be drawn the following conclusions:
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there are still many differences [5] Feldman, M. & Libman, A. , Accounting and
between the Directive and the IFRS, even FinancialStatement Analysis, 2nd Edition,
after the European accounting harmonization Wiley & Sons, New Jersey, 2007
[6] Horga, V., Contabilitate aprofundat, Editura
and the adoption of IFRS for the listed
Bibliotheca, Trgovite, 2007
companies. The differences exist for both the [7] Ionacu, I., Dinamica doctrinelor
format of the financial statements (covered in contabilitii contemporane. Studii privind
detail in Directive IV, but barely mentioned paradigmele i practicile contabilitii,
in IFRS) and for the accounting principles Editura Economic,Bucureti,2003
(covered in detail by IFRS, but very little and
selective in the Directives);
there is no unitary opinion on the
content of the financial statements;
there is no uniformity in the
definition and recognition of the elements of
the financial statements;
certain accounting principles distort the
economic, financial reality, or they are
insufficient for developments specific to the
financial analysis or for the evaluation of
assets and businesses. It is mainly about the
principle of prudence that combined with the
historical cost evaluation leads to a systemic
undervaluation and to an overvaluation of
liabilities. Thus, it offers a pessimistic view
on the financial position of the company.
the variety of presentation means of
the profit and loss account generates
difficulties in the analysis of the financial
performance of companies due to the
differences in the interpretation of the
performance and of the purpose of this
financial situation to meet the needs of
analysis and interpretation of the entity's
financial performance;
the elements of the financial
statements can have a rigid or flexible nature:
in the first case, the elements are predefined
limiting professional judgment, while the
flexible model can hide certain tendencies of
image manipulation concerning the entity's
financial position and performance.
8. References
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Gust Marius
Constantin Brncoveanu University
mariugust@yahoo.com
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credit institutions have market shares of below concentration among the top 10 banks;
1%. It is clear that the latter almost do not an increase in the degree of concentration
matter the Romanian economy and among the first 15 credit institutions.
deterioration in bank profitability in the years The conclusion is the same, the position
of crisis has affected these small banks, for on the market of small banks (banks
many of them the future does not sound good. remaining outside the first 15, especially
those with quotas under 1%) have no chance
3. Concentration degree against large and medium banks, which, as a
whole, its strengthening the position and will
Analysis of the concentration degree of damage market shares of marginal banks.
the Romanian banking market (Tables 1 and Table 3. Concentration degree of the
2) leads to the conclusion that this is a banking assets in the European Union
concentrated one, the top five banks Country Market sahre of top5 banks
accounting for about 54% of the banking Estonia 89,59
system (BCR, BRD, BT, Unicredit, Lithuania 83,62
CECBank). When referring to the first 10 Netherlands 82,07
banks, then they would hold almost 80% of Grerce 79,47
the market (to the five mentioned above Slovakia 72,03
adding Raiffeisen Bank, ING, Alpha Bank,
Portugal 70,72
Volksbank, Bancpost), and if we consider the
Latvia 64,05
first fifteen banks, then they comprise 90% of
the Romanian banking market (to the ten Czech Rep. 61,48
above we would add: Piraeus Bank, Garanti EU averege 60,78
Bank, Romanian Bank, Citi Bank, Credit Slovenia 58,35
Europe Bank). Results that the other 25 Hungary 54,00
banks together have about 10% of the market Romania 53,90
share, are pretty nonexistent, much of the Spain 51,40
public not knowing about their existence. Bulgaria 50,37
Table 2. Concentration degree in the France 44,62
Romanian banking system after net assets Poland 44,39
% total net assets of the Italy 39,67
Romanian banking system of: Austria 36,49
Year
first 5 first 10 first 15 Germany 33,00
banks banks banks Source: National Bank, Financial Stability
2001 61 77 83 Report 2014
2002 65 82 89 It should also be noted that if you compare
2004 66 83 90 our country's position with other EU members
2006 60 81 92 we see that we stand below average, in
2007 56 79 90 relation to the top five banks on the market,
2008 54 78 90 with countries with banking systems
2009 52 78 89 dominated by a few large banking players.
.2010 53 78 88
2011 55 78 88 4. Mergers and acquisitions in recent years
2012 55 78 87 in the Romanian banking system
2013 54 78 88
The process of mergers and acquisitions on
2014 july 54 - -
the Romanian banking market started before
Source: author's calculations on the data the trigger of the 2008 financial crisis (for
from annual reports of the NBR instance, UniCredit Tiriac Bank emerged
The dynamic analysis of the concentration through HVB Bank Romania and Banca
degree of the Romanian banking system Comercial Ion Tiriac, UniCredit Romania, a
(Table 2) in the last 14 years indicates: process started in 2005 and ended in 2007 or
a decrease in the degree of concentration the takeover HVB Housing Bank by Raiffeisen
among top 5 players in Banking; Housing Bank, a process which took place in
a relative stability of the degree of 2008), but was slowed by banking expansion in
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2007/2008, and then the financial crisis, 35 million, action that in the records was
increased bad loans and the overcrowding of only worth 1 million euro etc). The effect
losses in banks' balance sheets. of these transactions is a half of the
The process of bank mergers and market share (from 0.7% in 2012 to 0.4%
acquisitions on the Romanian market began a year later).
as a natural phenomenon of post crisis But 2014 was quite rich in movements on
concentration, in 2013, through five such the banking market. Here are some of them.
processes. Thus, Citi Bank, RBS Romania, Hungarian MKB Bank, part of German
Romanian International Bank, ATE Bank and group BayernLB, sold Nextebank
Bank of Cyprus were the subject of some Romanian subsidiary to Emerging Europe
mergers and acquisitions: Accession Fund (EEAF) Nextebank
Citi Bank Romania sold its retail portfolio having a market share of only 0.2%.To be
to Raiffeisen Bank, leaving it with only noted that EEAF includes EBRD among
the corporate segment, which will mean a its institutional investors and is the third
reduction in market share from private equity fund run by Axxess Capital.
approximately 1.8% to less than half; Although the transaction concluded right
RBS Romania was taken over by at the turn of 2013 to 2014, it did not
Unicredit Tiriac Bank, the market share of seem to have a notable impact on the
the latter increasing from 6.9% in 2012 to Romanian market, however, during 2014,
7.6% in 2013; the new bank has made some movements
Romanian International Bank was taken in the Romanian financial banking
over by the Polish banking group, Getin market. Thus, by the end of 2014, Axxess
Holding, without the impact on the market Capital, the administrator which controls
share of the bank to change, the bank Nextebank, approved a takeover by the
remained at a level of 0.1-0.2% of the Bank of an IFN held for some time, and
market, wanting to reach the platoon of all in the same period (December 2014)
important Banking players from Romania made a firm takeover bid for Banca
as Idea Bank; Carpatica, movement which if
ATE Bank Romania, which had as a materialized, will take Nextebank among
shareholder the Greek bank Piraeus Bank the first twenty banks in Romania.
during the crisis, was taken over by Caixa Bank Romania, subsidiary of the
Romanian businessman Dorin Spanish banking group La Caixa has
Umbrarescu, suggestions were made to closed its unit in our country without
change its name in the Romanian Bank producing any effect, following a
for Credit and Investments, but without negligible market share of 0.1-0.2%.
this to result in a strengthening of the Italo Romena Bank merged with Veneto
market position of the credit institution, Bank, the first becoming a territorial
NBR statistics indicating even a decrease branch for the second, at the level of
in market share from 0.3% in 2012 to market position this meaning about 1.2-
0.1% in 2013; 1.3% of the Romanian banking market.
Bank of Cyprus Romania, really a branch Millennium Bank Romania, owned by
(rather real esate status, mainly because Portuguese market leader, Banco
its assets were investments in about 18 Comercial Portugus, was bought by OTP
real estate speculative investments), it had Bank Romania (part of the Hungarian
to find buyers or draw its shutters, group OTP, the former Hungarian CEC)
because the parent bank Cyprus (Laiki through a transaction of 39 million euros,
Bank of Cyprus) had to go into which means an increase of the bank's
liquidationFot Romanian branch the market position of the Hungarian
resolve was the transfer of deposits to shareholding from 1.3% to above 2%,
another bank in Cyprus, Marfin Bank which means entering the top 15 players
(which took about a third of total deposits from the banking actors in Romania).
of BCR, out of a total of 245 million) and Finally, the most important acquisition of
the sale of assets placed in real estate the Romanian banking market seems to be
portfolios (such as the Hotel Marriott the taking of Volksbank by Banca
Bucharest actions to Strabag Austria for Transilvania, transaction following which
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Banca Transilvania increases its market years. Thus, in 2013 there were five such
share from 9% to 13% and, according to processes, so that in 2014, the phenomenon
some analysts of the Romanian banking continues with the other five, when two
market, is number two in total bank assets takeovers took place with incidence at the
exceeding BRD (46.5 billion lei, resulting level of the top ten players in the Romanian
from 34 billion lei, assets of Banca banking system (the taking of Volksbank
Transilvania and 12.5 billion lei assets of Romania by Transylvania Bank, respectively
Volksbank Romania, compared to 43.5 the takeover of Millenium Bank by OTP
billion lei, assets of the Romanian Bank Romania).
Development Bank) [4]. The process of bank mergers and
Also by the end of 2014 (November) acquisitions in Romania should not be seen
Blidar Valer, the main shareholder of as one with negative effects on competition
Railway Commercial Bank, a bank for because there are enough players in the
0.1% of the market announced advanced banking market. Rather, it has a "sanitary"
negotiations to purchase another effect, leading to the elimination of potential
Romanian bank. The information was bank failures, which can be generated by
confirmed a few days later by Nicolae small banks, can better absorb losses on
Cinteza, Supervisory Director of NBR, banks' balance sheets. Also, by increasing the
who spoke about dicussions for a possible size of the merged banks they can construct
merge of the two Romanian banks, one stronger banking structures that support
with a market share of over 1%, and customers through products offered, can
another with a share of under 1% [5]. innovate by introducing competitive services,
It should also be noted that the trend of gainful by the number of customers that
rationalization of credit institutions is a purchase them and situations where the
feature throughout the European Union. banks objective is speculating transient
Thus, over the last ten years the number of sources of profit can be avoided.
credit institutions in the EU-28 fell by
approximetly 1,500 institutions, reaching 6. References
7,726 in 2013 [6]. In the European Banking
Sector Facts & Figures 2014 it is also [1] Popa Dan, "Georgescu: the banking system last
mentioned that financial consolidation year posted a loss of 1 billion euros and 1.6
slowed slightly last year (the decline of 2.1% billion in six years", Economics,
www.hotnews.ro, 10.02.2015, pp. 1-3.
in 2013, compared to 2.5% a year earlier).
[2] National Bank of Romania, Annual Report on
Countries that have recorded the largest financial stability 2014, National Bank of
contraction in absolute terms were Cyprus (- Romania, Bucuresti, 2014.
36 units) Germany (-27) and Spain (-24). [3] National Bank of Romania, Annual Report
2013, National Bank of Romania, Bucuresti,
5. Conclusions 2014.
[4] Bancherul.ro, "Banca Transilvania announced
Economic and financial crisis has wiped the takeover of NBRs problem bank,
much of the banks business, customers have Volksbank", Bancherul.Ro, 09.12.2014,
become more apathetic or scarce, higher risks, www. bancherul.ro, pp. 1-2.
[5] Popa Dan, "Blidar, Bank Railway: We are in
losses continue to agglomerate balance sheets,
negotiations for the acquisition of a new bank.
causes which indicate some mutations on the The other bank that was born not long ago, will
Romanian banking market, namely a merge with us, so we will remain the only bank
concentration process, inherent in conditions with Romanian capital", Economics,
of a prolonged recession or quite troubled www.hotnews.ro, Bucuresti, 11.11.2014, pp. 1-
economic times with low rates of economic 2.
growth. That is, a series of mergers and [6] The European Banking Federation, "European
acquisitions in the Romanian banking system. Banking Sector, Facts & Figures 2014,
Begun before the start of the 2008 Statistics, European Banking Federation
financial crisis, slowed by the banking aisbl, Brussels, 2015, http://www.ebf-fbe.eu.
expansion from 2007 to 2008, and then by
the financial crisis, the process of merger and
acquisitions seems to increase in the last two
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Ilie Margareta
Faculty of Economic Sciences, OVIDIUS University from Constanta, Romania
ilie.marga@gmail.com
Ilie Constantin
Faculty of Mechanical, Industrial and Maritime Engineering, OVIDIUS University from
Constanta, Romania
cosmyn2001@yahoo.com
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secure grants and organize fundraising winner. Each project has an amount of
events. [3] money needed and a certain number of days.
In the United States, crowdfunding is Once the project starts, each day will be
limited by regulations about who is allowed counted down and the money gathered will
to fund a new business and the amount of be showed to public see. [7]
resources they are allowed to contribute. What to search in a crowdfunding sites we
These regulations are theoretically help to want to use? [9]
protect simple and/or non-wealthy investors For choosing a crowdfunding platform,
from investing and risking too much of their one should consider some aspects. One major
savings. Because of the failing of so many aspects is if the service specializes in a
new projects and business, the risk of losing specific industry or limits the reasons for
the investors main contribution meet a high funding. Another aspect is the conditions that
risk. [1][8] the funds are received, as some services are
In simple words the crowdfunding all-or-nothing (meaning: you have to raise
campaigns are funded by the general public. 100% of your goal must be raised for the
Usually, most successful projects receive collection of money) while others CoP allow
about 25-40% of their income from their you to have any funds you raise (but higher
first, second and third degree of relations: fees could be paid in those cases). [9]
friends, family, work acquaintances, or The 2015 best 10 crowdfunding sites
anyone (including their second and third considering the sum of money raised and the
degree connections) that the project notoriety of sites are [9]:
entrepreneur is connected to. Once a project 1. Experiment - a niche personal
have some success, new unrelated consumers crowdfunding site, is concentrating on
join to support campaigns that they believe the scientific community (it is created by
in. A successful crowdfunding campaign is scientists for scientists). You can raise
not so easy as submitting an idea and waiting funds for a variety of projects as biology,
for it to go viral. The immediate success can physics, political or computer science.
happen to many known brands, while the vast The platform imposed to gather all the
majority of projects will need effort on the needed amount and certain fees are
part of the project creator. applied.
It looks like there are three main reasons 2. Using FundAnything, you can find
why public not familiarized with a project or funding for personal reasons, including
business would want to support it [7]: medical bills or vacations. There is no
1. They have a link to a greater purpose of restriction or specification on the reason
the campaign; for your campaign. Funding mainly
2. They have a link a material aspect of the comes from friends and family or
campaign; community members attracted in helping
3. They know a creative display of the you reach your objective. You keep all
campaigns presentation. the funds you raise even if you do not
So using social media, creating a reach your aim.
distribution lists for emailing, contacting 3. FunderHut consider individuals, small
local media, are all necessary stages for businesses, non-profits and communities
achieving the goal of the project. [7] projects that can be crowdfunded. You
can choose from fixed campaigns -
3. Crowdfunding platforms where you must raise 100% of your
funding or cannot take any money or for
There are numerous CoP where variable campaigns - where you keep the
consumers can safely ask for or donate money you gather even if you don't
money. While each site offers their unique achieve the amount you need. Another
conditions, the general concept is the same. advantage is that the site offer
Project creators can generate a profile fundraising consulting services, but for
containing an introduction to their project, a an additional fee.
short video, a list of rewards and some 4. Indiegogo also offers personal
images to elaborate. The idea of its not crowdfunding to help funding projects to
what you do, but why you do it, it is a make the project real. The theme of the
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campaign can be media and art projects, crowdfunding business was elaborated by
technology, health, and environment or Schweinbacher et al. (2010) and covered the
religious ideas. value of non-profit crowdfunding. The
5. For artists seeking funding for any conclusion were that non-profit projects
creative project, Kickstarter is a solid usually attract more funding than common
choice. Subjects include such various for-profit projects. In most cases, people are
things as art, food, theater and techie more concerned with funding an idea with
gadgets. Because this crowdfunding site which they agree rather than receiving a
concentrates on real projects, you must return on their investment. This suggests that
have a clear idea of what you want to do people view general crowdfunding as a
and be prepared to share and present your donation based enterprise and might explain
results. why non-profits do significantly better. The
6. Patreon presents a personal conclusion assesses that non-profits generally
crowdfunding platform that help people do better than other alternatives, yet the
to donate a constantly monthly fee to you conclusion could be pushed farther in terms
in exchange for access to your content of why non-profits stand to do better on
and any welfares you might give. It is CoP.[3]
mostly for artists of all kinds, from Greenberg et all in 2013 [4] use Resource
photographers to cartoonists to Exchange Theory (RET) to comprehend the
YouTubers. exchange of resources and the mechanisms to
7. PledgeMusic is designed mainly for ease this exchange. They find out that CoP
musicians. It helps you fund your next support the exchange of all 6 resources
album and also it connects you with your described by RET: money, love, information,
fans through special offers you provide status, goods, and services and display a
in order to encourages fans to share your variety of structures to help exchange. Also
work with the world. they exposed four roles in online
8. Pozible is an helping individuals crowdfunding: requestors, respondents,
international crowdfunding website for members and general public. (Table 1 and
non-profits fund projects and some kind Figure 1).
of startups. It accepts finding requests in
several currencies and formats (including Figure 1. Resource exchange on Indi-
bitcoin). Also, has a graduated fee scale. eGoGo, plotted on the RET.
Some disadvantages come from the rule
that projects must reach their full funding
goal or the money are not moved to the
requester.
9. RocketHub crowdfunding platform with
no restrictions about the reason you need
the funds for. With this site, you keep
everything you raise.
10. Tilt is a platform to collect funds for
many number of reasons. Campaigns can
include raising funds for a surprise Source: Greenberg et all [4]
birthday party and fixing potholes in a
local neighborhood. Tilt is one of The red lines signify the exchanges
platforms that does not charge a fee for between requestors and the crowd and the
gathering funds, instead credit card green lines shows specific exchanges to a
processing fees apply. conection of respondents and requestors.
Read A. (2013) uses an empirical model
that seeks to explain what causes increases
4. Methods of analysis
in the dependent variable for total funds
raised per project by individual project
Researchers elaborate, develop or use
characteristics. The variables were put into
methods to analyze the functions,
the ordinary least squares model to determine
implications and effects of crowd funding.
their validity and ability to explain changes
The first experimental study on the
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in the function (1). The variables that are problem. The amendment resulted in the
expected to make a noticeable impact on the lessening in the significance of a number of
overall funding of a project are the following: variables. However, the model seems well-
the age of the creator group backing the suited to causes of crowdfunding success and
launch of the project (AGE), whether the can be used with assurance. [3]
project is a startup that is using crowdfunding
to generate initial funds (START), whether it 5. Conclusion
was a non-profit organization (NON), the
number of project backers, and whether a We can conclude with Prive (2012) who
reward was offered (REW) [3] says that crowdfunding has demonstrate as a
great benefit in sourcing potential customers
RAISED = f(AGE, START, NON, and rising an audience. An additional
BACKERS, REW) (1) advantage to crowdfunding is its economical
support. In addition to help small businesses
Table 1. Results of the description of with needed financial resources, it
current Crowdfunding platforms encouraging entrepreneurs to continue
Descriptor Sub-Descriptor Representative Examples creating even time of slow economic growth.
Kickstarter, Sponsume, Also the future of crowdfunding is
1. Mechanisms
Mediated
Kiva
Independent, The described by Barnett that is considering the
Unmediated
Cosmonaut birth of a new class of investors, considering
Passing the hat, Church that now everybody have the occasion to
Hybrid
offering
Kickstarter, IndieGoGo, invest in what could be the next great feature
2. Directness
Direct
Kiva film, startup, consumer product, or clean
change
of ex-
Kickstarter, Kiva, help their early growth, and then in the next
Respondent
CircleUp
stages the important investors will have good
Community
Member
All Platforms motive to implicate. [8]
General Public All Platforms
In conclusion, crowdfunding is a great
Money All Platforms advantage to businesses and entrepreneurs,
4. Requestor
Status IndieGoGo
6. References
The Cosmonaut,
5. Respondent re-
Love
sources received
"The Cosmonaut,"
Information MyC4, Kickstarter, http://soundideas.pugetsound.edu/economics
PetriDish theses/91, University of Puget Sound, 2013.
[4] Greenberg D.M., Hui J., Gerber E.,
Source: Greenberg et all [4] Crowdfunding: A Resource Exchange
Perspective, CHI13, April 27 May 2,
2013, Paris, France.
The model encountered a number of [5] Lambert, T., Schwienbacher, A., An
challenges that needed to be revised before a empirical analysis of crowdfunding, Social
final equation was developed. As occurs on Science Research Network, 2010.
many cross-sectional data sets, the [6] Schwienbacher, A., Larralde, B.,
occurrence of heteroskedasticity was a Crowdfunding of Small Entrepreneurial
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Iuga Iulia
1 Decembrie 1918 University of Alba Iulia, Faculty of Economic Sciences
iuga_iulia@yahoo.com
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because their products will cost too much for will develop a regression model with the
abroad clients. On the other hand, a stronger purpose of establishing whether the
domestic currency of a country may stimulate independent variable the euro/ron exchange
imports in that country: importers can bring rate influences the export volume.
cheaper products from abroad [7]. Roman A. The results obtained following the tests
have analysed the long-run relationship and the validation of the hypothesis
among the real exchange rate of the envisaged a synthesis of the ideas found in
Romanian leu against euro, capital flows and the specialized literature, and the analysis
the relative productivity [8]. used to test and validate the hypotheses was a
A stable exchange rate of the national quantitative analysis.
currency leads to an increase in exports with In this study, in order to accomplish our
positive implications on the process of real objectives we made use of several techniques
convergence. Socol & Drig (2013) studied specific to social and human sciences, such
some disparate indicators which can suggest as: observation; document analysis;
the real convergence degree among non- document study and comparative analysis.
ERM II countries from Central and Eastern The data was taken from the website of
Europe including intra and extra-EU trade for the National Statistics Institute, as well as
the group [9]. from the monthly newsletters of the National
Bank of Romania. The gathered data contains
2. Research methodology the values recorded by the two indicators in
Romania in the period 2006-2014.
This paper investigates the relationship
between the currency phenomenon and the 3. The econometric model and data
export volume, at a macroeconomic level. analysis. Objectives and the definition of
The main objective of our research is to variables.
identify the intensity of the relationship
between the currency phenomenon expressed This econometric study was aimed at:
through the euro/ron exchange rate and the 1. Establishing the relationship between the
volume of exports. In this sense, the dependent variable: the export volume and
concerned issues will be tackled through the the independent variable: the euro/ron
help of quantitative indicators. exchange rate.
This paper focuses on the relationship 2. Setting up a linear econometric model to
between the currency phenomenon and the analyze to what extent the independent
export volume and it seeks to draw attention variable influences the evolution of the
on the current status of the two factors in export volume.
Romania and on the necessity of their 3. Validating results through specific testing.
strategic approach in correlation with the EU 4. Explaining the effect of the chosen
strategy for economic growth Europe 2020. independent variable on the dependent
In terms of theoretical research, this study variable.
is based on a deductive approach centered on The scope of this study is to determine
the definition and evolution of indicators. whether and to what extent the euro/ron
On a practical research level, the paper exchange rate can be considered a factor in
seeks to perform a quantitative study of the establishing the export volume in Romania.
relationship between the two indicators The notations from the model are as follows:
involved and to study the value created by EXPORT = export volume
the currency phenomenon. EURO = euro/ron exchange rate
Thus, we will examine if there is a In order to be able to build a linear
correlation between the euro/ron exchange regression model we defined the euro/ron
rate and the export volume. At the same time, exchange rate as a independent variable,
we wish to analyze the influence of the while the export volume in Romania was
exchange rate on the export volume. The considered a dependent variable.
method that we propose in order to answer Thus, the regression model can be
the researched questions is the analysis of an transcribed under the following mathematical
econometric model. equation:
In order to accomplish our objectives, we
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Export = a + b euro/ron exchange rate As one can observe, from the data
analysis in our research as well as the figure
where: presented above, in the considered time span,
Export = the monthly value of exports in the evolution of the euro/ron exchange rate
Romania recorded a constant growth each year, with
euro/ron exchange rate = the monthly the exception of 2007, when the rate recorded
average of the exchange rate for one euro. a steep drop.
From an econometric point of view, the In the analyzed time span, the exchange
considered model must include the residual rate level fluctuates at times, but the overall
component, seen as a representation of the graphic shows a positive growth.
differences which emerge between the In order to be able to better observe the
determined values from a theoretical evolution of Romanian exports between 2006
standpoint and those measured in real and 2014, we set up a graphic which would
economy. help us interpret the overall situation and
would showcase the export evolution in the
Export = a + b euro/ron exchange rate + u analyzed time span.
3.6
4. Results and discussions
3.4
3.2
Using the Eviews statistical package, we
3.0
2006 2007 2008 2009 2010 2011 2012 2013 2014
performed a series of statistical tests meant to
Source: Personal processing of data collected insure a more correct view on the evolution
from the National Statistics Institute of the euro/ron exchange rate in the given
time span.
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The performed tests present the After performing statistical tests for each
distribution histogram, the mean, the median, and every indicator, we can conclude that
minimal and maximal values, the standard overall both the exchange rate and Romanian
deviation, the skewness, the series kurtosis exports have increased during 2014 by a
and the Jarque-Bera test. significant percentage, as compared to 2006.
These tests contribute to a more precise We performed statistical testing as well
understanding of the exchange rate level, its for the evolution of exports for the 2006-
extreme values over the course of each year, 2014: the distribution histogram, the mean,
as well as the distribution of data. the median, minimum and maximum values,
Due to the fact that exchange rate the standard deviation, the skewness, kurtosis
fluctuations are extremely high, the results of and the Jarque-Bera test.
these tests can be intuited. These tests can be observed in the
The computer program will help confirm following part:
our suspicions regarding this evolution.
As shown in Figure 3. one can notice that Figure 4. Statistical tests performed on the
the average value of this euro/ron indicator Romanian export volume between 2006 and
for the interval 2006-2014 is 4.061024 2014.
10
ron/euro, with a variation ranging from a Series: EXPORT
Sample 2006M01 2014M12
8 Observations 108
minimum of 3.1337 ron/euro (recorded in Mean 13.31149
July 2007) and a maximum of 4.5583 6 Median
Maximum
13.24025
21.78870
Minimum 6.491400
ron/euro (recorded in October 2012). 4 Std. Dev.
Skewness
4.413952
0.136248
Kurtosis 1.696160
2
Jarque-Bera 7.984136
Figure 3. Statistical tests performed on the Probability 0.018461
0
euro/ron exchange rate between 2006 and 6 8 10 12 14 16 18 20 22
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the years. Jarque-Bera tests whether a value of Romanian exports for the period
distribution is normally distributed. This test 2006-2014, and as independent variable the
measures the difference between the euro/ron exchange rate.
Skewness and kurtosis of the analyzed We also considered the fact that this
distribution and those of a normal regression model will contain the free term c.
distribution. The estimation method defined within the
program is the least squares method. Based
5. Analyzing the impact of the exchange on the elements previously presented, the
rate evolution on Romanian exports following results were obtained:
In order to analyze the influence of the Table 1. The characteristics of the regression
exchange rate on Romanian exports we set model
up this graphic, which illustrates the visual Dependent Variable: EXPORT
autocorrelation of the two factors: Method: Least Squares
Figure 5. The evolution of the euro/ron
Sample: 2006M01 2014M12
exchange rate and of Romanian exports for
the period 2006-2014. Included observations: 108
5.2
Variable Coefficient Std. Error t-Statistic Prob.
4.8
EURO 8.881733 0.581082 15.28482 0.0000
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The validity of the regression model is research for the authors, with the purpose of
confirmed by the values of the F statistical multifactorial modeling.
tests (233,6258 value above the table level To conclude, we reckon that irrespective
considered as guideline in the validity of the preferred approach with regards to the
analyses of econometric models), as well as theories on the correlation between the
by the degree of null risk (reflected by the exchange rate and the export, we can assert
value of the Prob F- statistic). Prob F- that they are indissolubly interdependent and
statistic is zero, which mean a high this relationship can be studied upon a
significance of the estimating results and correct identification of the determinant
high significance of the model. values and of the adequate analysis models.
In our case the probability is zero, which
means a high significance of the said 7. References
parameter is indicated.
Based on the elements mentioned [1] David Greenaway, Richard Kneller and Xufei
previously, we can consider that the Zhang, Exchange Rate Uncertainty and
regression model describing the correlation Export Decisions in the UK, Globalisation,
between the euro/ron exchange rate and the Productivity and Technology, Research Paper
exports is correct, which faithfully reflects 2008/42;
the real evolution of the two macroeconomic [2] Pal Boug, and Andreas Fagereng, Exchange
rate volatility and export performance: a
indicators. Thus, it is possible to write the cointegrated VAR approach, Applied
linear regression model as follows: Economics, 2010, 42, 851864;
[3] Salvador Gil-Pareja, Exchange Rates and
Export = 8.881733 -22.75745 euro/ron European Countries' Export Prices: An
exchange rate Empirical Test for Asymmetries in Pricing to
Market Behavior, Weltwirtschaftliches
This regression model allows us to Archiv, 2000, Vol. 136(1);
establish a series of aspects with regards to [4] Jonathan Reuvid and Jim Sherlock,
the existent relationship between the two International Trade: An Essential Guide to
variables take into account. We notice that the Principles and Practice of Export,
between the value of the euro/ron exchange (London: Kogan Page, 2011), 7;
rate and that of the exports recorded in our [5] Bernard, A., Jensen, B. (2004). Entry,
Expansion, and Intensity in the US Export
country between 2006 and 2014 there is an
Boom, 1987- 1992, Review of International
inverse relationship. Thus, we can assert that Economics, Wiley Blackwell, Vol. 12(4), pp.
an increase by a monetary unit of the 662-675;
euro/ron exchange rate will lead to a drop of [6] Anca Gherman, George tefan, Adriana
22.75 monetary units in the export values. Filip, Exchange rate volatility effects on
Thus, we can conclude that the level of export competitiveness. Romanian Case,
the euro/ron exchange rate is an influence Theoretical and Applied Economics, Volume
factor in the evolution of export levels in XX (2013), No. 9(586), pp. 39-50;
Romania. As the exchange rate increases, [7] Luis Raul Boroac, Cristina Anttila,
exports drop. Influences of Exchange Rates on Romanian
The analysis suggests the vulnerability of Exports, Buletin Stiintific, Nr. 1 (37) 2014;
the Romanian economic environment, the [8] Roman Angela, Ghita-Mitrescu Silvia,
behavioral tendencies of which are difficult Sadoveanu Diana, The Impact of Capital
Flows on the Real Exchange Rate: the Case
to identify, due to the fact that the business of Romania, Ovidius University Annals,
sector has suffered substantial structural Economic Sciences Series Volume XIV, Issue
changes in the last years, as it was directly 1, 2014, pp. 188-193;
influenced by globalization and the world [9] Socol Adela, Drig Imola (2013) Real
economic crisis. Convergence in Romania - A Comparative
The limitations of this research are Approach to Non-ERM II Countries from
generated by the shaping of a rather small Central and Eastern Europe, Annals of the
number of variables. In reality, the variation University of Petroani, Economics, vol.XIII
in export volume is due to other significant (1), ISSN 1582-5949, pp.261-272.
factors as well, which are not included in this
model and may open new directions of
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Jinga Gabriel
Dumitru Mdlina
Bucharest University of Economic Studies
Gabriel.Jinga@cig.ase.ro, Madalina.Dumitru@cig.ase.ro
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Ovidius University Annals, Economic Sciences Series
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the pillars of the <IR>) considers that an the needs specific to each category of
entity should be accountable in the sense of stakeholder is presented in table 2.
providing an account of its actions to
society [2]. The instruments of reporting are Table 2. Stakeholders specific
tools of communication with the interested information needs
parties. Varied types of stakeholders Study Category of Specific
contribute to the economic welfare of the stakeholder information needs
companies. Thus, the interests of the [9] Providers of Employee
respective stakeholders should be considered financial relations, ethics,
by the companies in strategy formulation capital community
and implementation and in communication involvement,
activities [3]. As the space to communicate product quality and
with the stakeholders in the annual report is environmental
limited and the cost of information is high, activities
identifying the salient stakeholders is [10]; Professional Less interest in
important for the companies. [11]; users (e.g. sustainability
According to Freeman (1984: 46) cited by [12] financial information, as it is
[1] a stakeholder in an organization is (by analysts) the least read
definition) any group or individual who can section and it is
affect or is affected by the achievement of the considered of a
organizations objectives. According to [4], poor quality
the hierarchy of the stakeholders is [10]; Employees Sustainability
established in the companies according to: [12] information
(1) power; (2) legitimacy; (3) urgency of the [13] Managers Information related
claim. Once the hierarchy was established, with their personal
the companies provide information to the performance
most important stakeholders. Different [10] Suppliers Sustainability
studies identify different categories of information
stakeholders considered the most salient. For [10] Customers Do not use
instance, according to [5] the most important sustainability
stakeholder is the government. information
Another debated issue is which are the [14] NGOs Sustainability
categories of stakeholders which are taken information
into account by the companies. Different Source: compilation of the authors
studies identify different types of
stakeholders, as it is presented in table 1. Based on the above, we support the
importance and usefulness of the research
Table 1. Categories of stakeholders concerning the information disclosed for
Study Categories of stakeholders different stakeholders and their influence on
[6] Customers, suppliers, employees and integrated reporting practice.
communities
[7] - Private stakeholders: investors, 3. Research methodology
employees and consumers
- Public stakeholders: community, Previous studies find that the industry in
diversity, environment and human which a company operates appears to be an
rights dimensions important determinant of the amount of
[8] Suppliers of financial capital, environmental and employee information
employees, customers, suppliers, disclosed [15]. We argue that the salient
business partners, local communities, stakeholders for various industries are
legislators, regulators and policy- different.
makers The annual report has been used as a
Source: compilation of the authors primary document source to collect data in
early studies largely because of its
Different stakeholder groups have compulsory production [16], widespread
different information needs. A synthesis of distribution [17], high creditability [18],
786
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financial
capital 7. References
Total 16,306 13,674 254
Average 171.64 143.94 2.67 [1] Eccles, R., Krzus, M. One Report: Integrated
Standard 120.19 227.69 4.6 Reporting for a Sustainable Strategy, John
deviation Wiley & Sons, 2010.
Source: compilation of the authors [2] Woodward, D.G., Edwards, P., Birkin, F.,
Organizational legitimacy and stakeholder
We notice that the average of the information provision, British Journal of
presentation of the value for the providers of Management, 1996, 7, pp. 329-347.
[3] Dumitru, M., Albu, N., Dumitru, V.F., Albu,
financial capital is very small. Thus, if the
C., Practices Regarding the Forms of
word value appears almost on every page of Communication with the Consumers used by
the annual report, the value of providers of a Multinational Company at Global and Local
financial capital appears only once in 60 Level, Amfiteatru Economic, 2013, 35, pp.
pages. The result shows us that the 41-57.
companies do not consider that the integrated [4] Mitchell, R.K., Agle B.R., Wood, D.J.,
reports should address first the needs of this Toward a theory of stakeholder
category of stakeholders. identification and salience: defining the
principle of who and what really counts,
5. Conclusions Academy of Management Review, 1997, vol.
22, no. 4, pp. 853 886.
[5] Rahaman, A.S., Lawrence, S., Roper, J.,
The content of an integrated report is still Social and environmental reporting at the
debated at an international level. We argue VRA: Institutionalised legitimacy or
that the salient stakeholders have an legitimation crisis?, Critical Perspectives on
influence on the information disclosed in the Accounting, 2004, 15, pp. 35-56.
annual report. We aimed to establish in this [6] Parmar, B.L., Freeman, R.E., Harrison, J.S.,
paper the stakeholders which are considered Wicks, A.C., Purnell, L., Colle, S.D.,
salient by the IIRC and the specific needs Stakeholder theory: the state of the art,
that the integrated reports address. We Academy Management Annual, 2010, 1(6),
showed that the salient stakeholders are 403-445.
[7] Laan, G., Ees, H.V., Witteloostuijn, A.V.,
considered by the IIRC to be the providers of
Corporate social and financial performance:
financial capital (both investors and an extended stakeholder theory, and empirical
creditors). Yet, this may be a step back from test with accounting measures, Journal of
the current reporting practices of the Business Ethics, 2008, 79, pp. 299-310.
sustainable companies. After analysing the [8] IIRC, 2013, The International IR
integrated reports prepared for 2013 by the Framework, IIRC, London. Available at:
companies included in the IIRCs Pilot <http://www.theiirc.org/wp-
Program, we could reach the conclusion that content/uploads/2013/12/13-12-08-THE-
the companies are reporting information INTERNATIONAL-IR-FRAMEWORK-2-
regarding various types of stakeholders, not 1.pdf> [Accessed 24 March 2015].
[9] Epstein, M. J., Freedman, M., Social
only the providers of financial capital. This is
disclosure and the individual investor,
why we consider the in the future the IIRC Accounting, Auditing & Accountability
might restate its position in this regard. Journal, 1994, 7(4), pp. 94-109.
[10] McInnes, B., Beattie, V., Pierpoint, J.,
6. Acknowledgement Communication between management and
stakeholders: a case study, UK: ICAEW,
This paper was co-financed from the 2007.
European Social Fund, through the Sectorial [11] Campbell, D., Slack, R., Narrative
Operational Programme Human Resources Reporting: Analysts Perceptions of its Value
Development 2007-2013, project number and Relevance, ACCA Research Report no.
104, London, UK, 2008.
POSDRU/159/1.5/S/138907 Excellence in
[12] Dawkins, Lewis, Corporate Social
scientific interdisciplinary research, doctoral Responsibility in Stakeholder Expectations
and postdoctoral, in the economic, social and and their Implication for Company Strategy,
medical fields EXCELIS, coordinator The Journal of Business Ethics, 2003, 44, pp.
Bucharest University of Economic Studies. 185-193.
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Lesconi-Frumuanu Ntlia-Mihaela
Eftimie Murgu University Reia, Romania
mihaelafrumusanu@yahoo.com
Marin Adreea-Mihaela
The West University, Timioara, Romania
andreeamarinmihaela@yahoo.com)
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Since the early 2000s there were attempts accounting is a function of internal
to achieve a common language for the information (economic entity management)
entities acting on international financial and and an external information function (a third
capital markets through a single set of party).[2] Moreover using accounting
accounting standards, known as accounting information one can grasp what is the
normalization, normalization performed even management of resources (material, financial
at accounting management [4], international and human) in an economic entity, the
normalization of managerial accounting evolution of production achieved, production
(specific elements for general financial costs, income etc. In decision-making, the
accounting) and specific elements of management accounting role is to provide
management accounting) being achieved by accurate information in a useful form, that
the work done by The Professional must collect and report appropriate
Accountants in Business Committee, a information and inform it in a manner
component of the International Federation of relevant to management. [7] According to
Accountants which has developed a series of the transparency degree, the accounting-
rules on basic concepts of management provided information are grouped in two
accounting, trying to harmonize the categories [10]:
terminology specific to it. [5] totally transparent information: those
The organization of accounting evidence related to the financial position and
is not an end in itself, accounts can be defined performance. They are subject to the
as an information system that aims financial accounting. They are obtained after
quantification, processing andcommunicating regulations stipulated by the Public Finance
financial information about an economic Ministry, thus they have standardized
entity. Thus, we can say that raw data character, being published for a correct
regarding economic activities is an input into information of all interested persons;
the accounting system and the processed less transparent information: the ones
information useful for decision makers, it is that refer to cost calculation, to the structure
the output.[6] of the enterprise budget, the knowledge of
The main objectives of management internal performance, etc. They are subject to
accounting are costing, the outcome and management accounting. They have no
profitability of manufactured products, works standardized character and are not disclosed
and services rendered, the forecast to the public, as they are related to the
expenditure and revenue by drawing up an enterprise secret
internal network of budgets, cost control and Information and the information system
budgets through irregularities and supplying are terms with increasing impacts on the
the necessary data to substantiate decisions enterprises, invading the models and the
on management entity, and the goal must be management analysis fields. The Economic
regarded on the collection, processing and Information System existed in all social
reporting of data, namely to boost orders, being appropriate to the human
investigation and the discovery by signaling society development stage. It plays an
the relevant information and generating important role in the national economy, for
questions. [7] making permanent connections between the
Accounting may be regarded as an operational systems (production, trade,
information system that records, monitors service provider, etc) and the management
and controls uninterrupted, those economic system in both ways, under all aspects.[11]
phenomena and processes that can be It is stated that, accounting as a social
expressed in value [8]. Accounting practice, makes it more than just a technique,
subsystem privileged place occupies in the a tool of power, and therefore financial
information system of an economic entity is accounting has become in all countries
given precisely by aggregation possibilities standardized, regulated and controlled. [12].
offered by monetary standard [9]. Based on On the other hand, accounting provides over
the accounting information function, which is 47% [13] of the economic information
to provide information in order to develop necessary for the management of any
decision, and considering the two organization, and management accounting is
components of accounting, we can say that the integral part of the management which
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Ovidius University Annals, Economic Sciences Series
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deals with the identification, presentation and to substantiate the management decisions
interpretation of information.[14] regarding the internal activity; other
information required for an efficient
3. Management Accounting in perception management. In the latest legal regulations
legislature [19] references are both to the management
accounting in the context of internal control,
According to Law 82/1991, accounting in and is the chapter that mentions the functions
Romania is organized in double circuit, contained in the chart of accounts mainly the
financial accounting and management accounts used within class 9 account
accounting.[15] management. Regarding the internal control,
Since the Accounting Law in art. 1, it is said that it shall aim to verify whether
paragraph 6 provides that organizearea and accounting, financial and management
leadership management accounting is information reflect correctly the activity and
appropriate, according to regulations situation of the entity and in respect of the
developed in this regard, many economic use of Class 9 account management it is
entities determined not to organize this type not mandatory (words that determine the
of accounting, managerial accounting and most professional accountants to use Class 6
part of such managerial decisions are based accounts for relying costs).
only the accounting information arising from The information provided by management
the financial accounting. The formal dualism accounting are of vital importance in the
or the accounting system in two circuits is an management of a company, because they
organization of the accounting system that ensure a good management in decision-making.
allows a dissociation between the financial
accounting, which is subject for 4. Management Accounting in
standardization, and the management accountants perception
accounting, for which the following rule is
applied no admittance except on 4.1. Research method
bussiness[16] and which ensures the Due to the fact that the Romanian
advantage of high accounting information legislator, the accounting professionals and
confidentiality.[17] the academics constantly emphasize the
The normative regulations in our country financial accounting, we thought it necessary
integrate the management accounting to initiate a research theme entitled
objectives as follows [18]: Organization of management accounting:
entry of operations regarding the cost mandatory or optional?; the present paper is
collection and allocation by destinations, integral part of the research theme.
respectively activities, departments, In order to highlight the importance of
production phases, cost centers, profit management accounting in the management
centers; process, we elaborated a questionnaire
calculation of the costs of acquisition, structured in three parts, respectively:
production, of incoming goods processing, of legislation in management accounting, the
executed works, of provided services, of importance given by an entity to the
production-in-progress, on-going assets, etc, information provided by the management
from production, trade, service providing, accounting and the last part dedicated to
financial units. professional accountants. The target group
The management accounting must ensure was constituted at the level of 15 Countys,
the production and the supply of information from 532 economic entities classified in
related to the efficient management of the different categories, so that they are
enterprise patrimony, such as [18]: presented in OMFP 1802/2014. The
information on the costs of goods, works, questionnaire was enviable at
services, for legal persons engaged in http://goo.gl/forms/KKQBtb2Tah, and the
production activities, service providing as research results were centralized using the
well as on the cost of goods sold for legal SPPS program.
persons engaged in trade activities; The target group was composed of
information underlying the budget and the professional accountants appearing on the list
control of operating activities; information of members of the Chamber of Chartered
necessary for the financial analysis in order Accountants and Licensed Accountants of
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Romania (CECCAR), but unfortunately the problems by frequency and severity and last but
response came only from the professional not least the way we realize the collection in
accountants from 17 counties, namely: Alba, accounts of expenses includes in costs. (aspect
Arad, Arges, Bacau, Bihor, Bistrita, that will be developed in future work).
Botosani, Braila, Caras-Severin, Covasna, The third part of the questionnaire is
Dolj, Galati, Hunedoara, Mehedinti, Olt, devoted to legal regulations, those identifying
Timis, Valcea. Given the nature of their awareness and understanding them, how they
work, professional accountants have not help to organize management accounting and
responded to our request (made via CECCAR accounting professionals proposals to the
subsidiaries in Romania), so at Caras-Severin legislator on the organization of management
county these questionnaires were distributed accounting (aspect captured in this work ).
personal, and professional accountants from The last part of the questionnaire includes
other counties were contacted by phone. The information on the identification of
fact that we do not have answers from all professional accountants, namely:
counties in Romania, is one of the limitations relationship with the economic entity they
of this research, and we want to eliminate it represent, training, experience in the fieldand
by keeping active the questionnaire and the economic entity he represents, including
sending personalized invitation to complete its location (matters which were at the the
the questionnaire that underlies our research. basis of processing results).
Another limitation of our study is that the 4.2. Results
issue of accounting organization is viewed This paper presents the results obtained
from a single perspective, that of professional from processing the information contained in
accountants, thus in future we tend to research conducted at national level
broadening research (together with specialists Management accounting: obligatory or
in management), applying a questionnaire at optional ?, and in the research conducted at
internal users of accounting information in the county level Study on the organization
general, and in particular for specific of management accounting at the level of
management accounting. economic agents from Caras-Severin ,
To view the representativeness which was surprising aspects of professional
the basis of our research, through surveys on accountants perception on accounting
the members of CECCAR subsidiaries on the management, applicable law and its status in
jurisdiction of the counties mentioned above, the dualist accounting system.
we can see that the share of respondents is To capture the above mentioned aspects,
13%, based on the number of members. [20] we have chosen the following questions:
In the present paper we want to capture the Does the entity that you represent
perception of professional accountants organize of management accounting?
regarding the organization of the accounting Do you consider the organization of
management and the utility that arise from management accounting as mandatory or
processing data through specific methods of optional?
accounting management, and not least the Do you know the laws governing the
degree knowledge of normative acts in the organization of management accounting?
field. How accessible do you find the legal
Regarding the structure of the questionnaire, provisions relating to the organization of
in the first part we aimed at identifying management accounting?
economic entities that organize management Were the information contained in
accounting and to identify professional regulations, mentioned above, sufficient to
accountants who consider management organize management accounting?
accounting as a compulsory activity (aspect What are your proposals for the legislator
caught also in the present paper). regarding the organization of management
The second part of the questionnaire is accounting?
devoted to those entities that organize First we must emphasize that, of the 533
management accounting, being surprised entities surveyed only 33% (nationally) and
information sources for identifying methods 34% (in the county of Caras-Severin)
and procedures used, problems encountered organize and lead management accounting,
and the solutions identified during their the most entities that organized management
implementation, the evaluation of these accounting are in Bihor county, where more
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than 50% of respondents are representatives Professional accountants who know the
of professional accountants entities that normative acts regulating the organization of
organize this type of account. management accounting, lists the following
regulations: OMFP 1826/2003 for the
Figure 1. Graphical representation - approval of the Specifications regarding
management accounting organization measures on the organization and
management of the accounting, OMPF
3055/2009 approving accounting regulations
compliant with European directives
Source: Reaslised by authors from data (Research conducted prior to 01.01.2015,
processing now repealed by Order 1802/2014) and not
least the Accounting Law 82/1991.
The field of research is the main reason
that determines those responsible for Figure 3. Graphical representation -
organizing and conducting the accounting Accountants perception legislation
accordance with the law, in these economic
entities not to organize this activity (eg.
trade, construction, textiles, services,
transport), the method used by them for
estimate the cost of the product / service Source: Conducted by authors from data
being information specific financial for processing
accounting (situation of suppliers, sheet
account, expense accounts, track orders, In terms of legislative accessibility
analytical financial accounting organization). provisions, most professional accountants
What should be stressed is that some consider them very difficult and challenging
respondents identify that estimate is a source (50%), only less than 10% are familiar with
of information for estimating the cost of the the language used in the accounting of these
work / service, without knowing that it is a regulations and can easily achieve it in
tool of management accounting. General practice . What should be stressed is their
estimate is defined as economic document inadequacy for the good organization of
that establishes the total estimated ammount management accounting (90% of respondents
of costs necessary to achieve the investment consider the information contained in
objectives or costs associated with regulations as insufficient).
investments, needed for the intervention
works in construction and installation in the Figure 4. Graphical representation -
design phase, feasibility study and technical Accountants perception - legislation
project [21]. Through this economic accessibility
document it id determined the total value of
the expenditure required to achieve the
investment objectives.
Regarding mandatory for this type of
accounting majority of respondents consider
it optional (about 80%), given that 70% of
respondents do not know the existing
regulations in the field, even if they are Source: Realised by authors from data
certified accountants, or auditors. processing
Figure 2. Graphical representation - Finally we want to present the
Accountants perception obligatoriness professional accountants proposals for the
legislative in the field of management
accounting as follows:
presentation and exemplification of
methods for collecting and allocating of
Source: Created by authors from data
agreed indirect costs;
processing
detailing the calculation methods for
categories of activity;
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Lipar Daniel
Ovidius University of Constana, Faculty of Economic Sciences
danl_02@yahoo.com
Dnil Alexandra
Ovidius University of Constana, Faculty of Economic Sciences
alexandradanila@yahoo.com
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If we use the IS-LM model, then an Conversely, when monetary policy has
expansionary fiscal policy, characterized by maximum efficiency (LM curve is vertical),
reduction of taxation or by increasing the any change of the IS curve has an impact
governmental expenses will generate a shift only on the interest rate, not on income. The
of IS curve to the right, from IS0 to IS1. elasticity of investments to the interest rate is,
In this way, the income and the interest in this situation, high.
rate will increase from Y0 to Y1, and from r0
to r1, respectively. (see Figure 1). Figure 2. Effects of expansionary monetary
policies
Figure 1. Effects of expansionary fiscal
policies
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It is obvious that as the interest rate boosted tensions among the population, so
changes are smaller and investments will not that it withdrawed its savings from this fund
answer promptly to these changes, the fiscal and, last, but not least, the severe drought,
policy strengthens its efficiency. [1] that increased agricultural products prices),
led NBR to impose some restrictive
3. An economic approach over Romania measures. At the same time, the depreciation
(2000 - 2013) of RON created the base for increasing
international competitiveness (exchange rate
In Romania, the period between 2000- of 2.4118 RON/EUR at the end of
2005 is characterized by a disinflationary December).
monetary policy combined with a prudent 2001 is the year that Romania has the
fiscal policy. [2] highest GDP growth (5.68%) of all candidate
Thus, among the measures taken, we can countries to the European Union (EU). Its a
mention: year favorable for economic development
reducing the budgetary deficit from (low prices of agricultural products, oil). [4]
4.70% of GDP in 2000 to 1.20% of GDP The main priority of NBR in 2002
in 2005 and maintaining it around this remained the continuation of disinflationary
level (see, for instance, the period 2003 process. For this reason, NBR decided to
2005); maintain the same level of interest rates on
non-inflationary growth of the monetary deposits, urging population to save money,
base, reducing the reserve requirements not to spend it and so, to accelerate inflation
rate (RR) in RON in order to fill up the (NBR focused on interest rate and credit
economy with liquidities (from 30% in channels in the transmission of monetary
2001 to 16% in 2005); policy impulses).
adopting a controled floating exchange Consumption had in 2003 a very strong
rate policy for its stability. influence over inflation. If in the first half of
Under these circumstances, the annual the year, NBR adopted a prudent monetary
inflation rate went down from 27.20% in policy (by lowering interest rates), starting
February 2002 to 8.60% in December 2005, with the second semester and with
with a minimum value of 9.30% in the last accelerating consumption, imports, widening
month of 2004. Moreover, GDP per capita the balance of payments deficits, it passed to
increased from 3.63 bill. RON/capita in 2000 a contractionary policy (see, for instance, the
to 13.36 bill. RON/capita in 2005. The increase of monetary policy interest rate to
economic growth was also sustained by 21.25% in December).
decreasing the unemployment rate from Consumption was sustained by increasing
7.50% in 2002 to 6.80% in 2003 and, last, the minimum wage, by attractiveness of bank
but not least, by reducing the interest rates loans and also by reducing interest rates on
(on deposits, from 33.11% in 2000 to 6.42% deposits, which inhibited the saving trend.
in 2005 and on credits, from 53.85% in 2000 In 2004, monetary policy was
to 19.60% in 2005). All these measures have contractionary and anti-inflationary.
stimulated the foreign direct investments Following a contractionary fiscal policy, the
(FDI) in the economy, their share of GDP budgetary expenses grew less than revenues,
raising from 2.83% in 2000 to 8.49% in resulting in a budgetary deficit of 1.30% of
2004. GDP, less than the previous year (1.50%),
The first months of 2000 were which emphasized the disinflationary
characterized by a careful attention to process.
reforming the fiscal system: reducing The prudent policy of NBR has also
taxation on profits from 38% to 25%, setting influenced the economic growth, in 2004
VAT at 19%. For this last measure, Romania reaching a high level of 8.49% (the evolution
missed the inflation target forecast of 27%, of real GDP growth rates values from 2000
ending the year at 40.7%. [3] 2011 can confirm this). This attitude was
The monetary policy followed the requested by increases in administered prices,
disinflationary trend, but the events from the in wages (in a parliamentary and presidential
second semester of 2000 (National ellection year), of oil price and by stimulating
Investments Fund fall in May 2000, which lending. Capital inflows from April 2004
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revenues. The widening of budgetary deficit 2009 due to accelerated reduction of imports
in 2007 compared to 2006 is due to the from 57.15 bill. EUR in 2008 to 38.95 bill.
increasing share of spendings in GDP (to EUR in 2009. The large increase of exports
38.20%), more than the share of revenues (to can explain the widening of the balance of
35.30%). However, during 2008 2009, the trade deficit. The decline in imports in 2009
growth of the deficit is based on both due to reduced consumption (up to -6.50% of
reducing revenues and raising expenses. real GDP growth rate) and investments
During this period, the real GDP growth rate (whose share of GDP fell from 6.81% in
decreased from 7.35% to -6.58%. 2008 to 2.95% in 2009) slowed down an
The contractionary fiscal policy from excessive imbalance of the balance of trade.
2006 by establishing a vice tax on tobacco Maintaining the level of the balance of trade
and alcohol has led to inflation. However, deficit during 2010 2011 at around -9.86
the completeness of capital account bill. EUR was the consequence of increased
liberalization process and the prospect for EU exports, which covered any raise in imports.
accession, have both influenced favorable the Thus, exports grew from 29.09 bill. EUR in
exchange rate, have increased the investors 2009 to 45.27 bill. EUR in 2011.
trust in the Romanian market, with positive The effects of the economic crisis were
effects on the rate of inflation (which seen in 2012, too. The prudent monetary
dropped from 8.89% in January to 4.87% in policy of NBR allowed the stimulation of
December). demand in the first months of the year, while,
Investors capital withdrawals from the at the end of 2012, the internal and external
financial crisis started in 2007, had firstly an shocks tightened it. The crisis from Greece,
impact on the less developed economies, the political tensions in Romania, as well as
which havent have the mechanisms to severe drought that led to an increase of
maintain economic stability. The budgetary agricultural products prices, were decisive
deficit rose up to 5.70% of GDP in 2008 (the factors in changing the strategy. After
highest value in the last years) and the reaching a record low in April and May
current account deficit stood still very high. (1.8%), the inflation rate increases to 4.95%
Increasing demand was due to the in December, compared to 3.14% in
development of consumers loans (except in December 2011, as a result of incresing
the last quarter of 2008) and to a relaxed prices of food raw materials and energy
fiscal and income policies, specific to an products.
election year. In these circumstances, NBR maintains
How did NBR react against the the RR in lei and in foreign currency, as well
speculative attack on the national currency as the monetary policy interest rate (at
from October 2008? 5.25%).
Through quick sale of foreign currency, to RON depreciates throughout 2012, with a
temper initial depreciation of the national small exception - towards the end of the year
currency, that determined simultaneously a - when, due to risk aversion reduction
decrease of liquidity and an increase on the (following the measures taken by the central
interbank interest rate. Thus, NBR fought banks) and to the political situation calming
against the speculative attack simply by after the parliamentary elections in
selling foreign currency, without acting first November, the trend reversed.
through monetary policy interest rate! Economic growth slowed down in 2012
The balance of trade remains the main mainly due to the evolution of agricultural
cause of the current account deficit. In 2003 production, the real GDP falling to 0.7%,
and 2005 we see an increase of the current because of a very poor harvest as a result of
account deficit (up to 5.57% of GDP and to unfavorable weather conditions. In 2013 both
8.57% of GDP, respectively) due to an the industrial sector (through exports of
increased domestic demand. At the same means of transportation, machinery,
time, the balance of trade deficit rose from equipments) and agriculture sector (due to a
5.59 bill. EUR to 10.31 bill. EUR, exports poor production in 2012) were engines of
increasing less that imports. The balance of economic growth.
trade deficit widened until 2008 (-23.47 bill. The poor harvest in 2012, the adjustments
EUR), than decreased to 9.86 bill. EUR in in administered prices led to higher inflation
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in the first half of 2013, when the central difficult choice. Firstly, to reduce inflation,
bank's policy was one of caution, maintaining NBR should raise the monetary policy
the monetary policy interest rate at 5.25% interest rate, encouraging saving. In this way,
and the RR in lei and in foreign currency at investments will not increase very much,
15% and 20%, respectively. keeping the current account deficit at
Reduced VAT on some bakery products reasonable limits. Secondly, any increase of
at 9%, in September 2013, the increase of the interest rates will also increase the
agricultural production due to favorable interest differential, which becomes very
weather conditions and inflationary attractive to other capital inflows and to an
expectations improvement have led to a appreciation of RON, which can have
lower inflation rate in the second half of significant effects in moderation of inflation
2013. In parallel, the central bank relaxed the process.
monetary policy, reducing the monetary
policy interest rate from 5.25% to 3.5% in 4. Conclusions
February 2014 and the RR in lei from 15% to
12% and in foreign currency from 20% to As it was presented above, the policies
18% in January 2014, in order to harmonize mix is essential in ensuring macroeconomic
with European standards and to stimulate balances, thus stimulating economic growth
lending. and whole economy development.
Unlike this loose monetary policy, the Therefore, the monetary policy mainly
fiscal policy in 2013 included constraint aims price stability, while fiscal policy may
measures for lowering the budgetary deficit. intervene in maintaining these balances, by
The fiscal policy acted procyclical in setting budgets that do not deepen the budget
2012 and 2013, too. Amid freezing pensions, deficit, with impact on the current account
reducing social welfare spending, capital deficit, too. Boosting exports through
expenditure and subsidies, the budgetary incentives is another way that fiscal policy
deficit fell to 2.9% of GDP compared to can intervene effectively in the economy. In
5.6% in 2011. The share of budgetary addition, the income policy should aim
revenues in GDP increased slightly following productivity, knowing that any increase in
a higher absorption of post-accession funds salaries means inflationary pressure.
than in 2011. It requires each policy to act in time to
Although the budgetary revenues restore balance, stopping turbulences to
decreased in 2013 compared to 2012 by 1 spread, affecting other indicators. In the
percentage point, despite absorption of absence of concrete actions from fiscal and
European funds, the budgetary deficit incomes policies, a contractionary monetary
continued to decrease to 2.3% of GDP, due to policy can ensure short term price stability.
a reduction in public spending (social welfare
spending, capital expenditure). 5. References
It is ideal to achieve - through an effective
fiscal policy - during economic growth [1] Dornbusch, R., Fisher, S., Startz, R.,
periods, a highly enough level of budgetary Macroeconomics, McGraw Hill
revenues, that will compensate the International Edition, 11th edition, New York,
turbulences that will arise during recessions, 2011, p. 280.
[2] Macroeconomic indicators data - Romania
leaving then monetary policies to
2000 - 2013 from: www.imf.org,
demonstrate their true value. www.bnro.ro, http://data.worldbank.org,
To overcome the financial crisis, for the http://epp.eurostat.ec.europa.eu/portal/page/p
economic recovery of Romania, the mix of ortal/eurostat/home/, www.insse.ro,
monetary, fiscal and incomes policies is http://unctadstat.unctad.org/ReportFolders/re
required. The first steps were taken in 2009 portFolders.aspx.
by accessing external funding from IMF and [3] Lipar, D., Rolul politicii monetare n
EU. These agreements were done to regain procesul de stabilizare a echilibrelor
the confidence of foreign investors to macroeconomice n Romnia, 2013, PhD
continue operating in Romania. thesis.
[4] Annual Reports NBR, 2000 - 2013.
Capital inflows have strong inflationary
accents, putting monetary policy in front of a
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Margaritti Doina,
Tomos Sirma
Ovidius University, Faculty of Pharmacy, Constanta, Romania
ge_conta@yahoo.ro
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deductible expenses. When determining they are clearly mentioned in the commercial
taxable income there are taken into account contract between the parties.
other similar items of income and expenses Based on the data analyzed and presented
according to the implementing rules ". [2] in the table below, according to the annual
Besides the general rule for calculating financial statements in the period 2009-2013
the taxable profit the Tax Code does not shows that the analyzed pharmaceutical
mention distinct tax treatment of commercial entity turnover (CA) was influenced by these
and financial cuts, consequently they will be trade discounts granted to distributors of
considered deductible or taxable profit tax if drugs. [4]
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The cumulated turnover of the top ten 3 -4 distributors), they continue to provide
players on the Romanian market distributors pharmacy discounts, but lower than before
of pharmaceuticals in 2013 amounts to about the system changed.
2, 3 billion euros, down from the previous According to this study, two cases have
period. emerged to change the distribution system,
Regarding the distributors of drugs the first one at the GlaxoSmithKline -
business, we can say that their market will "direct-to-pharmacy" and the second at the
consolidate in the next period and that their Pfizer - "restricted distribution".
number will be reduced to 3- 4 big players If the first case regarding the system-
which will impose on the market. In reality direct-to-pharmacy, GlaxoSmithKline
there is an anomaly in the local market, decided that three drugs, Avodart (BPH),
meaning that there are so many warehouses Seretide (asthma) and Tyverb (breast cancer)
authorized, given the relatively low price of may be distributed only through its dealer
drugs applied in Romania. The reason for this Europharm. These three drugs were initially
is exports to other countries. Parallel export distributed by 10 distributors, from which 3
volume ranged between 450 and 600 million of them transferred a part of the discount
euros in 2012, and these drugs are imported granted by GSK to pharmacies, one did not
at low prices in Romania and will be offer any discount for any of the products to
exported at higher prices in Europe. Some pharmacies, two pharmacies offered
distribution companies are set up for parallel discounts only exceptionally, one transfer a
export of drugs. small portion of the discount received by
The analysis of sales rebates granted by pharmacies and the last one, a wildcard
medicine distributors pharmaceutical unit dealer, transferring most of the discounts
analyzed, shows that they differ depending received to pharmacies.
on the quantity purchased, the payment After the implementation and introduction
deadline, the mode of delivery of drugs (OTC of Direct-to-Pharmacy system, the
/ Rx). [6] distributor, Europharm, received producer
On the other hand, if the drugs were discounts similar to those received in
obtained without a prescription (OTC), in the previous years, but they are no longer
studied pharmacies, the trade discounts varies transferred to pharmacies. Therefore,
from 0.4% (Pharmafarm), 3.68% eliminating competition with other suppliers,
(Europharm) to 12.47% (Farmexim). there is no incentive to transfer at least part
Following an investigation conducted by of the discount received from the
the Competition Sectorial on drug manufacturer to the pharmacy, which will
distribution system it was found lately, that directly influence the level of turnover and
the system has changed. This investigation therefore the financial performance of
was conducted at the initiative of several pharmacies.
drug manufacturers who have expressed their In the case of the second distribution
intention to switch from classic distribution system, Pfizer turned to restricted
model developed by several distributors, to distribution, distributors such as Farmexpert,
the distribution pattern performed directly by Mediplus and Romastru for three drugs:
manufacturers or by a small number of Diflucan (invasive infection), Ecalta
distributors. [3] (invasive candidiasis) and Vfend
The study findings showed that if there (antifungal). These medicines were
exists only a single distributor on the market, distributed by ten distributors, who were not
the discounts received from the manufacturer required to submit bank guarantees and enjoy
will not be transferred to the pharmacies. various discounts by the producing company.
Taking in consideration that the number of Distributors transferred to the pharmacy
distributors has decreased greatly (from 10 to
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discounts received from Pfizer and, in most the distribution of drugs, materializes and
cases, some of its own distribution margin. confirms the results obtained from studies
After its introduction, the three conducted in the community pharmacy
distributors selected following a tender must analyzed, meaning that the sales rebates in
submit a bank guarantee and the obligation to the period 2009-2013 continuously
deliver drugs within 24 hours of placing the decreased, as well as their share in the
order and deliver to hospitals, even if they performance indicators realized in this
are late payers. Sectorial analysis results on period.
As seen in Chart 1, it shows that if you that the use by producers of a restricted drug
compare the sales rebates received from distribution system, three -four distributors,
suppliers of goods with the net result of each will affect the level of discounts transferred
year in hand, one can conclude that they have to pharmacies and thus the profits made by
favorably influenced the level of the turnover them, as the main resource of development.
and the achieved profit. Due to the fact that the number of
Since the distributors have the same distributors has diminished greatly, the ones
discounts from the manufacturer, the medium that continue to provide pharmacy discounts,
discounts that were sent to pharmacies, after but lower than before the system changed
the implementation of the new system were reflects in the annual financial statements or
lower than in previous years and in most in the accounts that record the amount of
cases, with a direct influence on the financial discounts granted by the suppliers of drugs in
performance indicators. turnover and thus in the end result.
5. Conclusion, 6. References,
Thus, the reductions made in the first half [1] OMF Nr.1802 / 2004 for approval of
of 2015 to some of the drugs found in the Accounting Regulations on annual financial
CANAMED (National Catalogue of statements
Medicines) [5] have "suffered" because of [2] Law no. 571/2003 regarding the Fiscal Code
the distribution system adopted by several ("Tax Code")
[3] Survey conducted by the Competition
manufacturers, as evidenced not only in the
Sectorial on pharmaceutical market.
sectorial inquiry conducted by the relevant [4] Analyzed pharmacy annual financial
bodies but also the survey of the analyzed statements.
pharmacy. [5] Law no. 95/2006 on healthcare reform M.Of.
The study findings made on the no. 372 of 28 April 2006;
pharmaceutical market in Romania indicate
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Maca Ema
Petru Maior University of Trgu-Mure
ema.masca@ea.upm.ro
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Gerald Feltham and Ohlson James [11] and opportunistic managerial behavior of big
[12], who define conservatism "as the companies, respectively accounting
existence of a persistent understatement of information management. So, conservatism
the book value figure with respect to market's actually increases company's value, by the
valuation of the firm." They argue this message of trust in accounting information it
persistent understatement of the book value sends. On the other hand, overstatement of
through the fact that expected rates of net assets would result in litigation costs
economic depreciation are higher than the higher than net asset understatement,
impairment rate, which determines that the therefore adoption of a conservative behavior
market value of the company will exceed its reduces litigation costs with big companies.
book value. Another determinant of conservatism is the
Juan Manuel Garca Lara and Araceli level of taxation which may influence
Mora [13], quote Ahmed Riahi Belkaoui 1985 financial statements. Finally, accounting
and show that accounting conservatism conservatim is determined also by the
supposes that "the lowest values of assets and political costs of stimulating accounting
revenues and highest values of liabilities and regulatory authorities. Ross L. Watts [7] and
expenses have to be reported." Continuing [9], says that actually, all the four
this idea, Ross Watts [9] and Dan Givoly et determinants of conservatism show big
al. [14], explain how an important firms aversion to opportunistic payments to
consequence of conservative accounting is third parties and managers and to accounting
persistent understatement of net asset values information management and that the four
relative to their economic value. factors are not independent.
Sudipta Basu [8], considers that Xinrong Qiang [17] shows how
conservatism determines the reflection of bad conditional conservatism may be caused by
news faster than good news in the financial contracting and litigation and unconditional
reporting of enterprises. In other words, conservatism may be caused by litigation,
reported earnings respond quickly to bad or taxation and regulation. So the two forms of
completely more news than good news. conservatism meet some different needs of
Two types of conservatism are companies and yet the existence of
distinguished in the literature: conditional unconditional conservatism determines
conservatism, according to whom the reducing conditional conservatism. Under
company's behavior is dependent by news these conditions, the author says,
content (ex post conservatism); and compromise appears. In addition to Xinrong
unconditional conservatism, according to Qiang [17], Juan Manuel Garcia Lara, Beatriz
whom the company's behavior is independent Garcia Osma and Fernando Penalva [18],
by news (ex ante conservatism). demonstrate how conditional conservatism
Unconditional conservatism implies can be determined also by taxation and
understatement of assets irrespective of the regulation. In addition, they show that
direction of news and is largely determined sometimes the manipulation and transfer of
by accounting regulations, especially fiscal profits toward periods of lower taxes is
[15] . stimulated by incentives, taxation and
The conservatism can be explained by regulation. Typically, managers adopt
contracting, litigation, taxation, and appropriate strategies to maintain managerial
regulation. Watts and Zimmerman [16], incentives.
suggest the importance of contracting costs to
explain accounting practice. In 2003, Ross L. 3. The Earnings Management
Watts, published two articles explaining and
debating conservatism [7] and [9]. He shows All the papers we have considered treat
how conservatism responds to some needs of the influence of various institutional features,
security of all users who receive asymmetric organizational or otherwise, on accounting
information published by companies, conservatism. Among these, earnings
although he accepts that in the conservatism management is one of the most controversial
the opportunistic behavior of management features. Ross L. Watts shows that of course,
can be included [9]. By contracting there is an important connection between
conservatism actually tries to oppose
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earnings management and accounting Europe, the financial statements meet the
conservatism [7]. requirements of creditors, in the United
Earnings management aims at exerting Kingdom, the financial statements meet the
influence on the preparation of financial requirements of shareholders and capital
statements to mislead users of accounting markets. In addition, legislative and
numbers on companys performance [19], institutional approach of litigation differs in
and in order to get private gain. Authors like common-law and code-law based accounting
Michael D. Akers, Don E. Giacomino, and regimes. Consequently, managers position to
Jodi Gissel [20], show that in almost all the litigation is also nuanced. Whatever the
entities, the short-term earnings are being managers desires for big bonuses are, their
managed. David Burgstahler and Ilia Dichev practices are tempered differently in the
[21], ascertain that empirical evidence shows countries based on common-law countries
that in order to avoid losses and to report and countries based on code-law.
increases in results, there are several In their study from 2004, Juan Manuel
motivations and strong incentives. Thus, Garca Lara and Araceli Mora [3], did not
managers often recognize the importance of find significant differences between
increase of earnings and that there are strong common-law and code-law based accounting
incentives for increasing the earnings for regimes related to earnings conservatism.
longer and uninterrupted periods. When They expected that continental accounting
periods of growth of results are interrupted, (code-law-based countries), based on loans as
the premium is eliminated or substantially a form of financing, would use more
reduced. More over, they demonstrate that 8- practices of balance sheet conservatism and
12% of companies with decreases of pre- less practices of earnings conservatism. In
managed earnings report increases of their assumptions, it did matter that creditors
earnings, and 30-44% of firms with easily are usually represented in the boards of
negative pre-managed earnings report companies. In this position, lenders can
positive results. In these conditions, earnings pursue repayment of loans and can influence
management weakens the quality of profit both managers decisions and regulators, to
indicators and of financial statements [22], understate shareholders' equity. They also
and accounting conservatism affects expected that the accounting of the United
downward earnings manipulation. Kingdom (common - low based countries),
On the other hand, the effects of where firms' ownership is spread over a wide
conservatism are more widespread Ross L. number of shareholders, would use more
Watts and Hanna J.D., cited in Ross L. Watts practices of earnings conservatism. However,
[7], shows that earnings management can not in terms of earnings conservatism, no
explain the systematic understatement of net significant differences were found between
assets, which is the main manifestation of common-law-based countries (UK) and code-
accounting conservatism. In addition, law-based or continental countries; only in
earnings management may weaken the respect of Germany, they have found such
reliability of financial reporting [23], while statistically significant differences. In
accounting conservatism usually has the addition, their results show that the balance
opposite effect. sheet conservatism influences earnings
Juan Manuel Garcia Lara, Beatriz Garcia conservatism by reducing it [24] and [25].
Osma and Araceli Mora [13], show that
earnings management practices have affected 4. Conclusions
in time studies on accounting conservatism.
They studied the level of earnings Returning to the reason of IASB to
conservatism in code-law and common-law renounce conservatism, Paul Andr, Andrei
based accounting regimes. Ball et al. [3], Filip and Luc Paugam [26] and [27], show
point out that in these two regimes, the that actually renouncing the display of
economic role of financial statements is prudence, IASB renounced just to
different. Typically, financial statements unconditional conservatism, and not to the
must meet at least the informational conditional conservatism. They show that in
requirements of the most important the end, fair value cannot be considered less
categories of users. Thus, if in continental conditionally conservative than amortized
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cost. Prudence is still found in many Law Journal, Vol. 49, No. 1, Nov., 1939, pp.
accounting standards developed and revised 167-170, 1939.
by the IASB, such as non-recognition of [3] Ball, R., Kothari, S.P., Robin, A., The Effect
contingent assets, recognition of probable of International Institutional Factors on
Properties of Accounting Earnings, Journal of
debt (through provisioning), valuating stocks
Accounting and Economics, Vol. 29
at the lower of cost or net realizable values, (February), pp. 151, 2000.
promoting impairment of fixed assets or [4] Ball, R., Robin, A., Wu, J., Incentives versus
impairment for fixed assets. Registration of standards: properties of accounting income in
adjustments for impairment of assets is the four East Asian countries, Journal of
accounting treatment representative for Accounting and Economics 36, 2003.
conditional conservatism. However, the [5] Ball, R., Robin, A., Sadka, G., Is financial
registration of revaluation of property, plant reporting shaped by equity markets or by debt
and equipment is also accepted as an markets? An international study of timeliness
accounting conditional conservative and conservatorism, Review of Accounting
Studies 13, 2008.
treatment, even if it allows the increase of
[6] Framework for the Preparation and
carrying amount of an asset, because they use Presentation of Financial Statements,
revaluation only when the market value International Accounting Standards Board,
changes in relation to the carrying amount of 2006,
an asset and the difference of the value [7] Watts, R., Conservatorism in Accounting Part
resulted from revaluation is found in other II: Evidence and Research Opportunities,
comprehensive income. Acceptance of Accounting Horizons: December 2003, Vol.
revaluation of property, plant and equipment 17, No. 4, pp. 287-301, 2003.
as a conditional conservative treatment meets [8] Basu, S., The conservatorism principle and the
the requirement of conservatism to not asymmetric timeliness of earnings, Journal of
Accounting and Economics, Volume 24, Issue
deliberately understate assets and revenues
1, December 1997, Pages 337, 1997.
and to not deliberately overstate liabilities [9] Watts, R., Conservatorism in Accounting Part
and expenses. Revaluation of property, plant I: Explanations and Implications, Accounting
and equipment is accepted as an accounting Horizons, September 2003, Vol. 17, No. 3, pp.
conditional conservative treatment, even if it 207-221, 2003.
is less conservative than registration of [10] Statement of the Accounting Principles
adjustments for impairment of assets. Board nr. 4, 1970, Basic concepts and
Therefore IFRS remain further more accounting principles underlying financial
conservative than it is recognized statements of business enterprises.
because accounting conservatism has [11] Feltham, G., A., Ohlson J., A., Valuation and
Clean Surplus Accounting for Operating and
profound implications for business
Financial Activities, Contemporary
sustainability and responds to risks arisen Accounting Research, Volume 11, Issue 2,
from earnings management. pages 689731, Spring, 1995.
[12] Feltham, G., A., Ohlson J., A., Uncertainty
5. Acknowledgements Resolution and the Theory of Depreciation
Measurement, Journal of Accounting
This work was financially supported Research, Vol. 34, No. 2, Autumn, 1996, pp.
through the project Routes of academic 209-234, 1996.
excellence in doctoral and post-doctoral [13] Garcia Lara, J.M., Mora, A., Balance Sheet
research READ co-financed through the versus Earnings Conservatorism in Europe,
The European Accounting Review, Vol. 13,
European Social Fund, by Sectoral
No. 2, July 2004, pp. 26192, 2004.
Operational Programme Human Resources [14] Givoly, D., Hayn, K., C., Natarajan, A.,
Development 2007-2013, contract no Measuring Reporting Conservatorism, The
POSDRU/159/1.5/S/137926. Accounting Review: January 2007, Vol. 82, no.
1, pp. 65-106, 2007.
6. References [15] Gebhardt, G., Mora, A., Wagenhofer, A.,
Revisiting the Fundamental Concepts of IFRS,
[1] Gilman, S., Concepts of Profit, The Yale Law ABACUS, Vol. 50, No. 1, 2014.
Journal, Vol. 49, No. 1, Nov., 1939, pp. 167- [16] Watts, R., L., Zimmerman, J., L., Positive
170, 1939. Accounting Theory: A Ten Year Perspective,
[2] MacNeal, K., Truth in Accounting, The Yale The Accounting Review, Vol. 65, No. 1, pp.
813
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Volume XV, Issue 1 /2015
131-156, 1990.
[17] Qiang, X, The Effects of Contracting,
Litigation, Regulation, and Tax Costs on
Conditional and Unconditional
Conservatorism: Cross- Sectional Evidence at
the Firm Level, The Accounting Review, Vol.
82, No. 3 2007 pp. 759-796, 2007.
[18] Garcia Lara, J., M., Garcia Osma, B.,
Penalva, F., Accounting conservatorism and
corporate governance, Review of Accounting
Studies, 2009, Vol. 14, No. 1, pp. 161-201,
2009.
[19] Healy, P. and Wahlen, J., A Review of the
Earnings Management Literature and Its
Implications for Standard Setting, Accounting
Horizons 13 (4): 365383, 1999.
[20] Akers, M. D., Giacomino, D. E., Gissel, J.,
Earnings Management and Its Implications,
The CPA Journal, The New York State
Society of CPAs, 2007.
[21] Burgstahler, D., Dichev., I., Earnings
management to avoid earnings decreases and
losses, Journal of Accounting and Economics,
Volume 24, Issue 1, December 1997, Pages
99126, 1997.
[22] Levitt, A., Remarks by Chairman Arthur
Levitt Securities and Exchange
Commission. The Numbers Game, New York
Center for Law and Business, [online]
Available
at:<http://www.sec.gov/news/speech/speechar
chive/1998/spch220.txt>
[Accessed 12 December 2014], 1998.
[23] Munter, P., SEC sharply criticizes earnings
management accounting, The Journal of
Corporate Accounting and Finance, 10: 3138
1999.
[24] Neag, R., The Effects of IFRS on Net
Income and Equity: Evidence from Romanian
Listed Companies, Procedia Economics and
Finance, Volume 15, Pages 17871790, 2014.
[25] Hlaciuc, E., Deac, V., An Overview of Past
and Present Romanian Accounting, Procedia
Economics and Finance, Volume 15, 2014,
Pages 909915, 2014.
[26] Andre, P., Filip, A, Accounting
Conservatorism in Europe and the Impact of
Mandatory IFRS Adoption: Do country,
institutional and legal differences survive?,
ESSEC Business School Cergy-Pontoise
95021 CEDEX France, 2012.
[27] Andre, P., Filip, A, Paugam, L., Impact of
Mandatory IFRS Adoption on Conditional
Conservatorism in Europe, Forthcoming
Journal of Business Finance & Accounting.
Available at SSRN:
http://ssrn.com/abstract=1979748 or
http://dx.doi.org/10.2139/ssrn.1979748, 2014.
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Maca Ema
Petru Maior University of Trgu-Mure
ema.masca@ea.upm.ro
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the legislature setter, through Order no. environment, they are rediscovered in the
881/2012 [4]. The manner of applying IFRS previous national accounting regulations,
was regulated by Annex to OMPF 881/2012 afferent to listed companies. Also, these two
and Order no. 1286/2012 [5]. categories of accounting practices are
From 80 companies listed in 2015, in our presented too in the national accounting
study we considered only those companies regulations applicable to smaller, unlisted
that have recently proved sustainable companies.
businesses. As indicators for determining Hypotheses
economic growth, we used earnings per share To determine whether firms which in the
(EPS) because it has been used in many recent years have been considered
previous studies for determining and sustainable businesses, have prepared
measuring conservatism [3], [6], [7]. financial reports in the context of conditional
Therefore, in our study we considered only accounting conservatism, we had into view
the companies who each year from 2011 to the traditional definition of conservatism,
2013 registered EPS > 0, who numbered 21 called balance sheet conservatism,
companies. With one exception, the auditors respectively the definition asserting that
expressed unqualified audit opinions on the conservatism "means that the highest values
studied companies. of liabilities and expenses should be reported
For each company that participated in our ......" [1]. And in order to demonstrate the
study, we hand-collected accounting date application of accounting conservatism by
using financial reports presented on the firms in the sample studied, we focused on
website of Bucharest Stock Exchange. We the recognition of provisions in financial
considered the most recently prepared reports prepared by companies who have
financial reports - those for 2013. We been considered sustainable businesses,
mention that by the time of preparing this because registering the settle of provisions
paper, the financial reports for the year 2014 supposes both the increase of the liabilities
were not presented on the website of the and the increase of the expenditures, too.
stock exchange or individual sites of International Accounting Standards 37
companies. Provisions, Contingent Liabilities and
For delimitation of the accounting Contingent Assets, establishes the definition
practices that we shall follow in our study, of a provision as a "liability of uncertain
we considered the traditional definition of timing or amount and requires that all the
conservatism, called balance sheet following conditions be fulfilled before a
conservatism, which regards permanent provision can be recognized: an entity has a
undervaluation of net assets. We considered present obligation; it is probable that an
this approach because we believe that outflow of resources embodying economic
Romania is still characterized by poor benefits will be required; and a reliable
development of the capital market and a estimate can be made of the amount of the
stressed development of the bank loans obligation".
market. In this respect, Niculae Feleag and Given that in the accounting regulations
Ion Ionacu [8], showed that the dominant in Romania, provisions are included since
items of the accounting system in Romania 1993 - the year of taking over the first
from last 20 years are valuation at historical foreign accounting system after using Soviet
cost and prudence. Of course, we hope that as accounting system, we believe that the settle
in the continental Europe in the recent years, of provisions is a practice well known by
a capital market developed, also in Romania, accountants in Romania, so that they are
enterprises will partially give up bank sensitive to the need of provision settlement.
lending to the good of other funding sources. On the other hand, we show that in
Among conservative practices Romania, from taxing point of view, the
rediscovered in IFRSs and which are most expenditures for recognition of provisions
often used by companies, we focused on are not expenditures deductible from the tax
recognizing provisions and registering base. Exceptions to this prevision are only
adjustments for assets impairement. We provisions for guarantees of good execution
mention that none of these accounting granted to customers. Therefore, recognition
practices is new to Romanian accounting of provisions in the accounting leads in
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general to increasing profit tax due to the accumulated impairment losses." (IAS 16,
state budget by businesses. para. 30) Since this model involves reducing
However, given the longstanding practice the value of assets and increasing afferent
of recognition of provisions in accounting, expenses on response to internal or external
we believe that in the firms from the sample, events of the company, we consider this
accounting judgment had a word to say. model of valuation implies conditional
Therefore, we assume the following accounting conservatism. The revaluation
hypothesis: model assumes that after recognition as an
H1. In the accounting of listed companies, asset, an item of property, plant and
which in the recent years have presented equipment shall be carried at a revalued
economic growth, conditional conservative amount, being its fair value at the date of the
accounting practices have been used: revaluation less any subsequent accumulated
provisions have been recognized and settled. depreciation and subsequent accumulated
We also believe that the destination of these impairment losses (IAS 16, para. 31). The
provisions hasnt strictly circumscribed to fair value of property is its market value (IAS
afferent categories whose expenses for 16, para. 32). We note that in this case, the
recognition of provisions are expenses fair value substitutes the cost of property,
deductible from the tax base. plant and equipment.
To determine whether companies who On the other hand, IAS 36 Impairment of
have been considered sustainable businesses Assets is not applied to inventories. IAS 2
in the recent years, have prepared financial Inventories provides guidance on the
reports in the context of accounting determination of any write-down to net
conditional conservatism, we had in view the realisable value (IAS 36, Objective). Net
same traditional definition of conservatism, realisable value is the estimated selling price
called balance sheet conservatism, respective in the ordinary course of business less the
the definition according to whom estimated costs of completion and the
conservatism allows persistent estimated costs necessary to make the sale
understatement of net asset, which supposes (IAS 36, para. 6).
that the lowest values of assets and the In Romania, in terms of tax, expenses
highest values of expenses should be afferent to registration of impairment losses
reported [1]. This time, to demonstrate the are not deductible from the tax base for
application of accounting conservatism by income tax determination. Therefore,
companies in the studied sample, we have recording in the accounting the adjustments
focused on highlighting the adjustments for for assets impairment leads in general to
impairment of assets by companies that have increasing income tax which enterprises owe
been sustainable businesses, whereas their the state budget.
registration in accounting involves both Given the discrepancy between the
reducing assets and increasing expenses. development of the capital market and the
IAS 36 Impairment of Assets prescribes development of banking market, and the
the procedures that an entity applies to ensure predominance of a prudent attitude of
that its assets are not carried at more than professional accountants in Romania, we
their recoverable amount. The recoverable consider the following hypothesis:
amount is the amount to be recovered H2. In the accounting of listed companies,
through use or sale of the asset. If this is the who in the recent years have shown
case, the asset is described as impaired and economic growth, representative practices of
the Standard requires the entity to recognize conditional accounting conservatism have
an impairment loss. (IAS 36, Objective). been used: adjustments for impairment of
Regarding fixed assets, IAS 16 Property, assets have been registered. In the case of
Plant and Equipment mentions two property, plant and equipment, companies
accounting treatments: the cost model and the have preferred the conservative treatment of
revaluation model (IAS 16, para. 29). Cost the cost model (which involves recording the
model implies that "after recognition as an adjustments for impairment) instead of the
asset, an item of property, plant and revaluation model.
equipment shall be carried at its cost less any Empirical findings
accumulated depreciation and any
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Analyzing financial statements prepared one entity) and taxes (2%, one entity). Only
by the companies included in the studied 6% of companies (3 entities), settled
sample, we found that most of them have provisions for guarantees to customers, for
settled provisions. The destination of the whom the tax regulation provides
provisions settled by companies is shown in deductibility of afferent expenses.
further (table nr. 1): We note that in Romania, both tax
regulation and companies make confusion
Table no. 1 Provisions settled by listed between provisions and adjustments for
companies that have presented economic impairment of trade receivables. Thus, the
growth Law no. 571 /2003 [9], article 22 shows
Destination of provisions Firms Firms deductibility of expenses related to
settled by companies: (no) (%) provisions constituted over claims on
Guarantees granted to customers, ignoring the fact that the
customers 3 6 impairment of an asset is registered into
Litigation 5 10 accounting as an adjustment for impairment
Staff participation in and no provision is settled, since depreciation
profits 9 18 of a claim does not involve increasing a debt
Decommissioning exigible or with uncertain value. Of the
tangible 2 4 companies surveyed, three settled provisions
Pension 5 10 for depreciation over claims on customers,
Restructuring actions 1 2 and one of them settled also provisions for
Taxes 1 2 impairment of inventories.
Impairment of inventories 1 2 Taking into account that of the 21
Impairment of customer companies in the sample, 20 recognized and
receivables 3 6 settled provisions, we believe that they used
Other provisions of accounting conditional conservatism
which provisions of practices. In addition, we found that most of
destination: 10 20 settled provisions (88%) had no connection
with the fiscal prevision related to
Environment 2
deductibility of afferent expenses.
Term contract 1
Correlating these results, we consider that the
Certificates of emissions hypothesis:
of greenhouse gases 1 H1. In the accounting of listed companies
Annual leaves not taken 1 that in the recent years have shown economic
For risks and charges 5 growth, accounting conditional conservatism
Total provisions settled in practices have been used: provisions have
all the companies 50 100 been recognized and settled. We also
Non settlement of consider that the destination of these
provisions 1 provisions has not strictly circumscribed to
Own sources. afferent categories for whom expenses for
recognizing provisions represent deductible
We note that in 2013, 20 companies of 21 expenses from the tax base of the profit tax.
settled provisions to various destinations. In was validated.
total, in all companies 50 provisions were Analyzing financial statements prepared
settled. Most provisions were settled for staff by the companies included in the studied
participation in profit (18%, 9 entities), for sample, we found that most of them recorded
ongoing litigation (10%, 5 entities) and for adjustments for impairment of assets, which
pension (10%, 5 entities). 20% of companies are shown in further (table nr. 2):
(10 entities) settled provisions to various
destinations related to environment, contract
term, and other risks and charges. Other
destinations for whom provisions were
settled and which are unsettled with the tax
deduction, were dismantling tangible assets
(4%, 2 entities) restructuring actions (2%,
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4. Acknowledgements
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presented in the scheme below, for each surplus as dividends to associates and/or to
activity type. funding members. Also, the result of the
special activity is not distributed, but
Figure 1 Determination of the result in reported on the next year, being excluded
NPOs from taxation.
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3. Fiscal provisions regarding taxation The tax code governs in detail the taxation
of NPOs, enumerating the income types
Regarding the fiscal regime of the tax on exempted from taxation, namely:
profit owed by NPOs, for certain groups fees, contributions, registration and
among them, by studying the legislation in admission taxes of members and/or
force, we can mention some specifications supporters;
concerning the application of exemptions for donations and sponsoring;
certain types of nonprofit entities. incomes obtained from visas, sport taxes
Foundations for these, there is the and penalties or from the participation in
following provision: The following sport competitions and demonstrations;
contributors are exempted from the payment dividends and interests obtained from the
of the tax on profit: (...) the Romanian investment of the liquid assets resulted
foundations established as a result of a will. from the exempted incomes;
[3] In the methodological norms of the Tax incomes for which a tax for shows is due;
Code, the foundation established as a result resources obtained from public funds or
of a will is defined by the definition of the non-reimbursable funding;
foundation given by GO 26/2000 for incomes realized from occasional actions,
associations and foundations, so that this according to the NPOs own statute;
provision shall apply to the foundations exceptional incomes resulted from
established on the basis of this law. yielding corporal assets that are part of the
Mutual Aid Houses, for which the NPOs property, others than those
followings are regulated: acts and associated to the economic activity;
operations of the mutual aid houses of incomes obtained from advertising and
employees, carried out in relation with their publicity;
activity subject, are exempted from any taxes incomes realized from damages, from
and charges.[4] insurance companies for the damage
The House and Flat Owners Associations related to own corporal assets, others than
established as juridical persons and the those associated to the economic activity;
Tenants Associations recognized as Property amounts received from the income tax
Owner Associations are exempted from the owed by natural persons.[6]
payment of the tax on profit for the incomes Having studied the regulations of the Tax
obtained from economic activities and which Code, we can notice that the exempted
are used or shall be used for the improvement incomes are the ones associated to the
of utilities and of the efficiency of the activity with no patrimonial goal. We can
building, for maintaining and repairing the conclude that regarding the nonprofit
common property. [5] activity, NPOs are exempted from the
Religious cults are exempted from the payment of the tax on profit, except for the
payment of the tax on profit for the incomes realized from the sportsmens
following: incomes obtained from the transfer, which, according to the
producing and selling objects and products Methodological Norms of the Tax Code
necessary to the cult activity, according to the represent taxable incomes when the taxable
law, incomes from rents, other incomes profit is determined.
obtained from economic activities, incomes We can notice that the legislator also
from damages in cash, incomes for building, exempts from taxation the incomes from
reparation and consolidation works of the dividends and the interests obtained from the
places and of the ecclesiastic buildings, or of investment of the liquid assets resulted from
the ones for education, for the provision of exempted incomes, as well as the incomes
social services, accredited under the obtained from yielding (selling) of the
conditions of law, for specific actions and corporal assets that are not used in the
other nonprofit activities of the religious economic activity. The exempted / excepted
cults.[5] character also extends to the incomes
These dispositions have the goal not to tax accessory of the incomes that do not come
something not constituting distributable from the economic activity. In the same
profit, but being meant to be used in actions respect, in a precise clause, the Supreme
constituting the NPOs activity goal. Court of Justice of Romania ruled that if the
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income sources are non-taxable, the bank determining the quantum of expenses
interests associated to the deposits set up from the economic activity exempted
from such incomes shall also be non-taxable. from taxes (Exexp);
In another concrete test case, it has been calculating the taxable profit (Ptaxb);
decided by the Supreme Court that, since the determining the tax on profit, owed by the
incomes have come from amounts received NPO (Tax).
as donation and from the sale of assets
received as donation from diverse persons -Figure 3 Logical calculation algorithm for
from Romania and abroad, the association the NPOs tax on profit
that has obtained and used them for the
construction of a building for the persons START
suffering from a locomotive handicap is
exempted from the payment of the tax on
profit. [7] A = incomes exempted acc. to art. 15
The tax code also governs the taxation of pct. 2, C.F.
the surplus generated in the economic
activity carried out. NPOs, union B = equiv. in LEI of EUR 15,000 (at average
exchange rate of the National Bank of Romania)
organizations and employer organizations are
exempted from the payment of the tax on
profit also for the incomes from the C = 10% x A
economic activities realized up to the level of
the equivalent in LEI of EUR 15,000, in a tax
year, but no more than 10% of the total D = min (B, C)
incomes exempted from the payment of the
tax on profit. NPOs owe the tax on profit for
the part of taxable profit corresponding to the E=A+D F = (Icec.act. E )/ Icec.act.
incomes, others than the exempted ones,
which tax is calculated by the application of
the rate of 16%. [8] Ictaxb = Ictotal E Exexp = F x Exexp
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with no patrimonial goal (and/or special activities, separately, so that the fiscal
activity) and for the economic activity, how provisions might be correlated with the
will the associated expenses be distributed accounting ones, as follows: the result of the
(amortization, maintenance, utilities)? This nonprofit activity and of the special one is
problem occurs particularly in the small or exempted from taxation. As for the result of
middle-size organizations, which cannot the economic activity, it is reduced by a
afford to purchase fixed assets specially nontaxable result, calculated as a difference
intended for a certain activity. The repartition between the incomes from the economic
keys of the expenses can be: activities exempted from taxation and the
the area used within an activity, from the expenses associated to them, distributed by
total net area; the associated area is means of a repartition key. The incomes from
transposed in percentage, which shall be the exempted economic activities amount to a
applied to the expenses to be distributed; value equal to the smaller one the following:
the period of the month when the asset is the equivalent in LEI of the limit of EUR
used for a certain activity type; 15,000 and 10% of the total incomes from
in case of motor cars, we recommend the the account of assets without patrimonial
use of the number of kilometers travelled goal.
for a certain activity from the total The presentation above respects the Tax
kilometers travelled; Codes requirements regarding the taxation
the percentage of incomes generated by a of the surplus of NPOs, according to the
certain activity from the total incomes. simplest approach correlated to the financial-
Anyway, we do not recommend the use of accounting information generated following
the last technique, since, in most cases, the the recordings of the entitys accounting.
efforts made to obtain the incomes differ This would make it possible to connect the
from an activity to the other. In the case of an taxation to the accounting, and the relevance
activity with no patrimonial goal, a higher of the financial-accounting information
amount of incomes can be generated at the would increase, this information being used
cost of a lower effort than in the case of an in the tax determination process.
economic activity (for the same amount of Thus, fiscal norms have repercussions on
incomes) or vice versa. accounting since the information generated
The legal regulations recommend the use by accounting is used to determine the
of repartition keys for expenses, without taxable result. Considering the partial
requiring certain techniques or procedures. exemptions, it is necessary to determine
Thus, there occurs the professional reasoning separately the result-generating elements,
regarding the repartition of the expenses per some requiring the use of repartition keys for
types of activities. [9] each activity carried out by an NPO.
Due to the fact that foundations are [1] Gh. Diaconu, C. Pitulice, Contabilitatea
financiar a organizaiilor non-profit
entities with no lucrative goal and which do
(Financial Accounting of Nonprofit
not distribute the surplus obtained to their Organizations), Editura Contaplus, Ploieti,
founders and/or members, they are exempted p. 171.
from the payment of the tax for the result of [2] OMEF 1969/2007 regarding the approval of
the activity with no patrimonial goal. the accounting regulations for the juridical
Since most NPOs that have an economic persons with no patrimonial goal, published in
activity use the resources generated by it for the Official Gazette of Romania no. 864bis dd.
self-funding their activities with no lucrative 10 December 2007, with subsequent
goal, they benefit of a reduction of the tax modifications.
owed in connection to the profit obtained as a [3] Excerpt from Pt. 1, Art. 15, Chap. 2,Title II of
Law 571/2003 corroborated with HG 44/2004
result of running economic activities.
regarding the Tax Code and its
The accounting regulations into force methodological norms of application, updated.
require the reflection of the patrimonial [4] Art. 8 of Law no. 122/1996 regarding the
elements (including the incomes and juridical regime of the Mutual Aid Houses of
expenses) associated to the three kinds of
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Mocanu Florina
Valahia University of Targoviste
florinamocanu78@yahoo.com
Istudor Ileana Iulia
Valahia University of Targoviste
iulia_32@yahoo.com
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risk and the expected rate of return, which In addition to the theoretical approach of
will determine the maximizing the price of this issue, in literature we find a reduced
shares. The market value of an enterprise, number of empirical studies related to the
which firstly uses only its own funds, relationship between the rate of indebtedness
increases during the use of borrowed capital and the performance of the enterprise. The
instead of its own, reaches a maximum level, main difference between these studies relates
after which it begins to decrease as the use of to how to define performance. Some studies
borrowed capital becomes excessive. When a use the accounting measure of performance.
company decides to use borrowed funds, an Majumdar and Chhibber have tested the
analysis is required to determine the capital relationship between indebtedness and
structure on which the value of the company performance on a sample based on Indian
is maximum, which means the determination companies, using return on assets as a
of an objective regarding capital structure. measure of the performance; a significant
Contrary to the traditional approach, the negative relationship between these variables
theory of balanced markets believes that could be seen. [3] Johnson established the
there isnt an optimal financial structure, the existence of a negative relationship between
overall rate of return being constant profitability and borrowing rate. [4]
regardless of the degree of indebtedness of Pushner analyzed the relationship
the company. According to this approach, the between the borrowing rate and performance
economic value of the asset is independent of in Japanese enterprises, measuring
its mode of financing or, in other words, performance through total productivity of
weighted average cost of capital is not production factors; A frontier regarding
dependent on the method of financing; in the productivity is estimated, and performance is
absence of taxation, capital structure is measured by the residual value of the
neutral in relation to the value of the estimator obtained by the method of least
enterprise. Indebtedness will increase total squares. The conclusion of this study
cost, inducing an additional leverage and an highlights a negative relationship between
increased risk to be borne by the borrowing rate and performance. [5] Nickell
shareholders, they later requiring an increase and Nicolitsas, based on information about
of the rate of return on own capital so that, the British companies and using total
overall, the global rate of return remains the productivity of production factors as a
same. The rhythm of increase in the cost of measure of performance, showed a negative
debt is greater than the cost of equity, relationship between productivity and
because, as debt levels increase, a part of the financial pressure. [6] the study conducted by
risk of enterprise is taken over by creditors; Weill has used a method of the efficiency
weighted average cost of capital remains frontier to get synthetic measure of
constant. On an efficient market, increasing performance, using a sample of 12,000
the estimated profitability generated by the enterprises from three countries (England,
leverage of the indebtedness leads to an France and Italy); the variable explained in
increased risk, so that the price of the share the regression is represented by the score of
does not change. cost efficiency (for cost-efficient frontier, the
output was represented by turnover, and
2. The typology of studies that test the inputs of personal expenses and fixed assets),
effect of indebtedness upon performance which measures the performance, and the
indicators main explanatory variable is borrowing rate;
the study's conclusion is that the borrowing
Although the theorem of Modigliani and rate is positively linked to the performance in
Miller [2] suggests that the financial structure France and England and in a negative way, in
of the enterprise has no influence upon its Italy; the various results are explained by the
value, numerous subsequent studies have author through the influence of the
raised arguments in favor of non-neutrality of institutional framework which manifests
the financial structure, in particular on the itself primarily through the possibility of
existence of a relationship between accessing the bank credit and through the
indebtedness and enterprise performance. efficacy of the legal system. [7]
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In an empirical study, Ben Khediri and but also of the common characteristics of the
Folus demonstrated that the decision of group that was considered.
whether or not to use derivatives in purposes This analysis tool allows the estimation of
of fighting against various risks is linked to the common component of the effects of
the debt (or leverage) of the concerned indebtedness submitted to the analyzed
company. Thus, if the rate of borrowing is companies, as well as the quantification of
high, the coverage using derivatives limits the temporary effects associated to the
the risk of bankruptcy and the associated modification of indebtedness. The analytical
costs. [8] methodology is based on a weighted moving
average, which grants higher weighting to the
3. The empirical study regarding the most recent information and on the
impact of indebtedness on the specifications with fixed effects, involving a
performance and risk of the company- the simple approach consisting in the removal of
case of enterprises from the field of the dependent variable average lateral or
wholesale trade of building materials temporal, and then generating a regression
equation using the resulting data.
The objective of this study is to highlight The obtained results regarding the
the impact of indebtedness on the risk and significance level of the coefficient estimated
performance of wholesale trade enterprises. before the independent variable, degree of
In this study I created a sample of 32 indebtedness, reflects the fact that it is
companies working in the wholesale trade of significant in terms of statistics. Between the
building materials. Being generally small profitability trend and the evolution of
companies, with a relatively low level of financial indebtedness, there is an inverse
capitalization, I opted for the appreciation of relationship, in the sense that an increase in
their performance on the basis of a classic the indebtedness causes a reduction in the
indicator, originally from the field of rate of financial profitability. The coefficient
accounting, respectively for return on equity of determination (R-squared) and the
(ROE-Return on Equity), while the risk was adjusted coefficient of determination
calculated using the General solvency ratio. (Adjusted R-squared) are located above the
The models that were made aimed the limit values of 0.6, which indicates the
determination of existing or lack of existence of the correlation between the two
relationship between indebtedness and sets of variables; we can therefore say that
financial rate of return, named the General the model was well specified.
solvency ratio, based on econometric The obtained results regarding the
methods and software E-views of statistical significance level of the coefficient estimated
analysis. before the independent variable, degree of
The assumptions of the models were the indebtedness, reflects the fact that it is
following: significant in terms of statistics. Between the
a) a sample of 32 companies working in evolution of the general solvency, as a
the wholesale trade of building materials; measure of risk, and the evolution of
b) time horizon: 2005-2010; indebtedness, there is an inverse relationship,
c) independent variable of the model: in the sense that an increase in the
indebtedness, calculated for the period of indebtedness causes a reduction in the firm's
2005-2010; solvency. The coefficient of determination
d) dependent variables (successively): has extremely high values, which leads to a
financial profitability and overall worthiness doubt regarding the validity of the considered
for 2005-2010. model.
Considering that the dates that were
mentioned involve observations that possess 4. Conclusions
both identifiers for cross sections, as well as
their developments in time, I opted for their Although the analysis of the tests shows
analysis in panel working files. Grouping that there is a significant correlation between
data in a pool allows identification of the degree of indebtedness of companies in
existing connections between components, the field of wholesale trade of building
materials and the financial rate of return, and
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its solvency, I consider that the analysis can relation to the size of the project; if the cost
be deepened through the incorporation of of these analyses is fixed, and the project in
information regarding the cost of gained question is small, analyze is not
capital. In the current economic context, economically justified. All of this leads to the
which has a decisive effect on cash flow and hypothesis that small business and those in
on the ability of businesses to keep the field of trade of construction materials,
borrowing rates at a level similar to the one are based most of the times, in making
before the crisis, it is necessary to analyze in appropriate decisions, on the discernment of
detail the operations and to identify the value the Manager and not on doing some analyses.
of borrowed capital that can be borne out of These businesses tend to have a strong
the current cash flow and of the predicted orientation towards liquidity. Their main goal
one. Most often, the analyzed companies is survival, so they tend to judge the expenses
appeal to indebtedness in the absence of from the point of view of their effect on the
studies relating to financial leverage, to the short-term cash. Businesses surveyed have a
optimal structure of used capital, so that the large degree of uncertainty regarding the
performance of the enterprises have forecasting of long- term cash-flow. If these
unexpected developments. companies are not listed, estimating their
A limit of this study is represented by the value is very difficult, and it cannot be
reduced sample of data available for analysis. publically tracked. Moreover, there is no
As a result, a possible direction of basis for estimating the cost of equity.
development of the proposed analysis is to
expand the database and include a larger 5. References:
number of companies in the analyzed field,
which would allow a better stability of [1] Lala-Popa, I., Miculeac, M.E., Analiz
estimated results by providing a pronounced economico-financiar: elemente teoretice i
stationary level of data. However, I consider studii de caz, Ed. Mirton, Timioara, 2009.
[2] Modigliani, F., Miller, M., The Cost of
that the results of the study provides clues to
capital, corporation Finance and the theory of
managers and financial analysts about the investment, American Economic Review,
connection regarding profitability and risk in 1958, vol. 47, pp. 261-297.
comparison to the increase/decrease of the [3] Majumdar, S., Chhibber, P., Capital
degree of indebtedness; estimation of structure and performance: evidence from a
profitability becomes possible according to transition economy on an aspect of corporate
funding decisions. gouvernance, Public Choice, Springer,
Within companies in the field of trade 1999, vol. 98, no. 3-4, pp. 287-305.
with building materials the selection of the [4] Johnson, S., An empirical analysis of the
way investments are financed is very determinants of corporate debt ownership
structure, Journal of Financial and
important; being generally small businesses,
Quantitative Analysis, 1997, vol. 32, pp. 47-
without the possibility to access the capital 69.
market, establishing a funding policy of their [5] Pushner, G., Equity ownership structure,
activity is really important because, unlike leverage and productivity: empirical evidence
large firms, in the case of a wrong decision, from Japan, Journal of Pacific-Basin
necessary funds for correcting a mistake are Finance Journal, 1995, vol. 3, pp. 241-255.
not available. Studies have shown that the [6] Nickell, S., Nicolitsas, D., How does
selection of funding sources and investment financial pressure affect firms?, European
projects within small enterprises are not Economic Review, 1999, vol. 43, pp. 1435-
based on rigorous analysis because the 1456.
[7] Weill, L., Lendettement amliore-t-il la
managers of small businesses do not have the
performance des entreprises?, Banque &
financial knowledge necessary to understand Marchs, 2003, no. 66, pp. 13-20.
and apply sophisticated methods of analysis, [8] Ben Khediri, K., Folus, D., Hedging and
even if hey have the necessary education, the financing decisions, Bankers, Markets and
pressure and the limited time do not allow Investors, 2009, no. 98, pp. 28-38.
them to use more elaborate techniques of
analysis. On the other hand, the cost of such
analysis is high. Usually, these costs are
relatively fixed, differing very little in
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Moraru Camelia
Academy of Economic Studies, Bucharest
cami.moraru@yahoo.com
Popovici Norina
Ovidius University, Faculty of Economic Sciences, Constanta
norinapopovici@yahoo.com
Ioni Roxana
"Dimitrie Cantemir" Christian University, Constanta
ionita_roxana2000@yahoo.com
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2012
2000
2001
2002
2004
2005
2006
2007
2008
2009
2010
2011
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revenue. 2011 revealed that tge Romanian same level. To continue the study may be
economy is back on a path of growth, real needed Deseasonalisation data, which is done
GDP increasing by 1%, after two years of using the function Tramo / Seats.
steep decline. Models first stage involves verification
In 2012, Romania's economy registered a of stationary variables, most notably test
growth for the second consecutive year, GDP being ADF test, Augmented Dicky Fuller.
grew by 0.2% in real terms compared with From an economic perspective, a series is
the lower growth of 1% reached in 2011. stationary if the a shock over the series is
Increasing the share of revenue in GDP from temporary (absorbed over time) and not
32.7% in 2011 to 33% in 2012, is explained permanent. If the series is not stationary,
by the positive trend in revenues from other using diference can become a stationary one.
taxes and charges for goods and services, and Integration order of the series is the number
by improving absorption of EU funds. of successive differences necessary to obtain
Insurance contributions and tax revenue are a stationary series.
those that have registered negative
evolutions. Table 1 Testing stationarity on level of
GDP series
4. Methods and results. A VAR analysis
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Table 3 Testing stationarity of GDP serios systems dynamics without consuming too
on first order differential many degrees of freedom. In order to
determine the optimal number of lags, it was
used the criteria offered by Sequential LR
tests, Akaike Criterion, Schwartz and Hanna-
Quinn Criterion.
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6. References
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Munteanu Irena
Ovidius University of Constanta
irena.munteanu@yahoo.com
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external debt on short term. The banking A study on banking efficiency relevant for
sector faced well these pressures sead the new EU member states was realized in
Popescu. [8] 2013 by Roman and Sargu [15]
A study regarding the banking
performance indexes for Romania, the Czech 4. The analysis of the Credit risk ratio
Republic and Hungary was made by Andrie ROA correlation in the banking system of
and Cocri. They made a frontier analysis Romania
with a nonparametric model DEA Method
(Data Envelopment Analysis) and a Credit risk ratio is a relevant index for the
parametric method SFA Stochastic Frontier financial-banking system. In Romania the
Analysis. [9] credit risk ratio is calculated as a proportion
Spulbar si Nioi studied the evolution of of the gross exposure of the loans and
non-governmental loan 2001-2010 and the interests classified as doubtful and loss in
impact of the influencing factors through an the total of classified credits and interests
econometric multi-factor regression model (excluding off-balance elements).
f(GDP real, Index, Ratio, Spread interest Credit risk ratio is a more restrictive index
Ratio unemployment Index unemployment). of the loan portfolio quality than the non-
[10] Spulbar. performing loans weight.
Stochastic frontier models contribute to The credit risk ratio also includes the
demonstrating the impact of the European loans/interests with a debt service shorter
integration process on increasing of the than 90 days (compared with over 90 days as
banking efficiency levels for 240 banks from recommended by the IMF), and the
12 countries (including Romania) during classification criteria contain the debtor
2000-2008 (Gallizo). [11] financial performance as well as the principle
Data envelopment analysis DEA was used of contamination demotion.
by Nioi in order to analyze the efficiency Within this study we have analyzed the
and productivity of the Romanian banks evolution of the Credit Risk Ratio - CRR) and
during 2006-2008. His findings suggest that ROA over December 31st, 2007 March 31st,
majority of commercial banks were 2014 (available data NBR statistics).
inefficient referring to the proper Over 2007- September 2008 CRR was
management of costs. [12]. situated around 4.5% which shows a very
The correlations between ROA and non- low risk exposure. Over the same period, the
performing loans, as well as ROE - CRR average ROA in the entire banking system
Credit risk ratio, were both analyzed by was in the interval of 1.51-1.77%. These
Socol and Dnuleiu. They found that ROA excellent results of the banking industry
and ROE vary each of them depending on the deteriorated starting at the end of 2008. Thus,
CRR Credit risk ratio, which is expressed as on March 30th, 2009 ROA was already
the ratio of gross value of exposure to loans negative, while Credit Risk Ratio reached the
and related interest under doubtful and value of 9.4% and 15.29% by the end of the
loss to total classified loans and related year.
interest pertaining to non-bank loans, off- CRR was on an upward trend in 2010 as
balance sheet items excluded. [13] well, but its growth was slowed down and
Risk assessment is also important for an had a level of approximately 21% in
efficient management of the banking actives December 2010.
and debts, as proven by the study made by During 2010 the quality of the loans
Zapodeanu, Cociuba and Petria. In order to portfolio deteriorated mainly because of
apply the management of assets and these two factors:
liabilities in financial institutions it is The extension of the period of
imperative that the objective function, which economic activity contraction;
usually are the risk level, earnings, liquidity, The measures adopted by the
profit, solvency, the loans and deposits government on the line of fiscal
levels, value added to also take in consolidation (with the effect of
consideration the worst cases scenario. [14] diminishing the revenues of a large
category of debtors).
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cov( X , Y )
(x i x )( yi y )
( X ,Y ) i 1
x y N x y
where:
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ROA
2,00
1,50
1,00
0,50
0,00
-0,50
-1,00
CREDIT
0,00RISK RATIO 10,00 20,00 30,00
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Murgea Aurora
West University of Timisoara, Faculty of
Economics and Business Administration
aurora.murgea@e-uvt.ro; auroramurgea@gmail.com
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growth is positively associated with social market on well being it is not channeled only
welfare, i.e., human happiness. His results by the monetary determinants. The level of
have shown a strong connection between happiness is also related to the work
income and happiness at the individual level environment, the emotional health, physical
but when he tried to compare happiness in health and other basic needs. The main
nations the connection was much weaker. methodological problem that arrise in this
Happiness is not necessarily higher in the paper ist hat it uses as proxy montly values
countries where the income is higher for capital market indexes since the Gallupp
(Easterlin paradox). Healthways Well-Being Index have monthly
The positive psychologist, Ed Diener, [7] values. The analyses lost a part of credibility
points out that well-being result only from duet o the low number of observation and the
the fulfillment of universal human needs and averages in VIX and S&P500. The present
that no other factors are relevant. Absolute paper tries to overcome these problems and
income would predict well-being, but to offer a more solid analysis to asses this
comparative income or income-change corelation.
would not.
A great paper published by Blanchflower 3. Data and methodology
and Oswald [2] supports Easterlins view that
economic growth doesnt mean happiness for To test the nature of the relation between
its society. This paper approaches the the evolution of capital markets and
economics of happiness and it estimates happiness we use the Hapiness Index
micro-econometric well-being equations, measured by Twitter Gardenhose feed, the
where reported levels of happiness have been Standard &Poor 500 index (S&P500) and the
dropping through time in the United States. Chicago Boards Options Exchange (CBOE)
Easterlin and Angelescu [11] show in their Volatility Index (VIX). S&P 500 is one of the
paper that there isnt any significant most important equity indicator and one of
relevance in the linkage between the the best instruments of measurement for US
improvement in the happiness level and the stock market. VIX indicates S&P500s
long term rate of growth of GDP per capita. implied volatility and return and is often
Their conclusion is based on cross sectional reffered to as the fear index or the fear gauge.
data collected from from three categories of The sample period starts with January
countries such as: 17 developed, 9 2011 and ends in May 2014. For all the
developing and 11 in transition this indicators we have used daily average values.
conclusion reports a positive but confusing in Hapiness is measured using the
the short term relationship between the Hedonometer Twitter Happiness real time
growth of income and the level of happiness. series, an instrument developed by Petter
The connection between capital market Dodds [8] at Computational Story Lab at the
and wellbeing has been studied just recently. University of Vermont Complex Systems
An attempt to explain the relation between Center. Hedonometer is basically comprised
the capital market evolution and its impact on of peoples online expressions, capitalizes on
subjective well-being is the recent paperwork data-rich from social media channels and it
of Murgea and Reisz [14] that investigates shows how people display their happiness to
the linkage between the well being and the the world. This instrument examines
stock market in USA. This paperwork uses expressions made via the online, global
the Gallupp Healthways Well-Being Index, microblogs and through social networks. The
Standard and Poor S&P 500 and the volatility most important source for this indicator is
index VIX, and it shows that this relation is Twitter which reveals and explains temporal
strong and that stock market has a variations in information and happiness
statistically significant impact on well-being. levels on time frameworks ranging between
More exactly, this paper underlines the hours to months, and years.
significant negative relationship between the Hedonometers data set contains over 46
capital market volatility and well being in billion words contained in almost 46 billion
comparison with the impact of the personal expressions that were posted over a 33 month
level of income on well being. We can span, expressions being posted by at least 63
understand that the effect of the capital unique users. To determine the happiness
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expressed by words, they merged the most Index over the next 30 days. Regarding the
5,000 frequent words from a collection based trend of VIX it provides an accurate
on Google Books, New York Times, Music indication to the trend of stock market, which
Lyrics and of course Twitter messages this is typically trending upwards.
collection resulted in almost 10,000 unique Analyzing S&P 500s evolution for our
words. Making use of Amazons Mechanical time frame, the period starts with a value of
Turk service, they had each of these unique 19.2 and starting with June 2012 it dropped
words scored on a nine point scale of to 14.9 as expected. After this period we can
happiness as it follows: (1) sad to (9) happy. observe another decrease to 13, and another
The hedonometer evaluates Twitters increase to 14.7. This last period was
Gardenhose feed which is a random sampling followed by a decrease to the point of 11.9 in
of nearly 50 million (10%) of all the May 2014, as the general trend of S&P 500
messages posted to this social service, develops.
involving 100GB of JSON each day. The In the case of VIX, a specific range of
words that are written in English are released normal values doesnt exist, since this
into a large bag (involves nearly 100 million indicator reflects the markets expectations of
words per day) and this bag has assigned a the stock market volatility over the next 30
happiness score determined by the average days. Correlating S&P 500 and VIX, we can
happiness score of the words within this bag. observe that when the price of stock has
The reasons for which this instrument is fallen, the level of fear increased
based on Twitter feed is that the research significantly and when the stock prices
team have found that this measure of reached an approximately normal level (13)
happiness is correlated very well with the level of fear was a decreasing one.
traditional surveys of well being; you can In the case of Happiness Index, values are
focus on Twitter communities to get some comprised between 5.88 and 6.77. The value
insights of what people are expressing inside for this indicator increased during national
these communities; Twitter provides a stern holidays (4th of July), Christmas, Valentines
test due to the enormous amount of data that Day and other important global events.
is received and processed in real time and Correlating this index with S&P 500 and VIX
last but not least Twitter is becoming a really only from these data doesnt show a signicant
important collective, worthy of scientific relationship.
analysis. Based on these data we have constructed
S&P 500 indicator is a stock market index the next variables:, SPR, VIXV and THIV
that aims to represent the whole sector of taking into account three years of daily
stock markets, that is basically a basket of average values (all the resulted variables
500 stocks belonging to the 500 companies were tested for unit roots using Augmented
and ensures approximately 80% coverage of Dickey Fuller, Phillips Perron and Dickey
the available market capitalization. Factors Fuller tests and they were proved to be
influencing the selection of the companies on stationary).
the market are their liquidities, market size The formula for S&P 500 was calculated
and the sector in which they activate. as follows:
The volatility index, also known as VIX SPR (SPt SPt 1 ) / SPt 1 (1)
a sentiment indicator from Chicago Board
Options Exchange (CBOE) it is mainly used where: SPt= daily S&P500 closing
by stocks and options traders to measure the prices
markets anxiety or fear level.
It determines the volatility of a great The equation for VIXV is as follows:
range of S&P 500 index options and uses
near-term and the next term out-of-the money
SPX options and then weights the values to VIXV (VIX t VIX t 1 ) / VIX t 1 (2)
yield a constant, 30-day measure of S&P 500
Index expected volatility. The VIX is quoted where: VIXt= daily VIX closing prices
in the form of percentage that estimates the
volatility of the market, volatility that is the The equation for THIV stands bellow:
expected annualized movement of S&P 500
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Nichita Ramona-Anca
Romanian Academy
ancaramona.nichita@gmail.com
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viewed taxes as the price paid to live in a Understanding Taxes [31]. Potential and
civilized society. Besides the knowledge actual taxpayers can improve their tax
regarding the role of taxes, citizens may also knowledge going through 14 modules:
possess knowledge regarding the taxonomy Payroll taxes and federal income tax
of fiscal obligations and taxable revenues withholding;
(which depends, of course, on their taxpayer Wage and tip income;
status, i.e., individual, self-employed or Interest income;
corporate). Dependents;
Hence, one particular factor which steers Filing status;
contributors towards compliance is tax Exemptions;
literacy. As studies in this line of research are Standard deductions;
rather scant [20], a widely accepted standard
Claiming child tax credit and
definition has not been yet attributed to the
additional child tax credit;
concept. In my opinion, tax literacy could be
Tax credit for child and dependent care
interpreted in a narrower sense, as well as in
expenses;
a broader sense.
In a narrower sense, tax literacy is Education credits;
regarded as taxpayers ability to correctly fill Earned income credit;
in a tax return [21-22]. This view mirrors one Refund, amount due and
of the four conditions of tax compliance [23]: recordkeeping;
genuine reporting of the tax base; Electronic tax return preparation and
accurate computation of taxes to be transmission;
paid; Self-employment income and the self-
filling the tax report in due time, employment tax.
according to the tax calendar The information featured on the platform
established by authorities; may be adapted by teachers to train middle
payment of taxes owed in due time, to school, high school and community college
avoid penalties. students on tax issues or may be accessed by
In a broader sense, tax literacy is linked to the general public interested in improving
the level of tax knowledge possessed by their tax knowledge.
contributors [24-26]. The present paper In Romania, the National Agency of
draws on the broader definition of tax Fiscal Administration (NAFA) has been
literacy. implementing the project called Developing
a partnership between the NAFA and the
direct beneficiaries of the services provided
3. Tax literacy strategies a brief global
by the agency premise for increasing the
itinerancy on turning theory into practice
efficiency of the public revenue collection
Think globally, act locally [27] a system [32-33]. As one aim of the project is
phrase attributed to microbiologist Ren to educate taxpayers on taxation matters, the
Dubos thoroughly fits the subsequent agency has developed a national media
paragraphs. campaign (via newspapers, radio, TV, online,
As much as fighting tax noncompliance outdoor events) stressing the importance of
has become a global movement and taxpaying and societal benefits yielding from
regulators attempt to uncover taxable hidden voluntary compliance.
treasures [28-30], finding appropriate Since basic tax information among
strategies to raise tax compliance levels via contributors in developing countries is quite
tax literacy has turned into a priority for scarce and compliance levels are at the
many state representatives, governments and minimum, national tax authorities are more
international organizations. Therefore, prone towards implementing creative
strategies to educate taxpayers range from strategies [34].
more traditional to more creative. For a case in point, less than 1% of the
In the line of more traditional approaches, population in Bangladesh pays taxes. With
the US Internal Revenue Service has the purpose of incentivizing citizens to pay
partnered with education professionals and their taxes in due time (i.e., until September,
developed an online platform called 30th), in 2008 authorities decreed the 15Th of
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September as National Income Tax Day. fiscal obligations and the relevance of
During this particular day, tax information taxpaying.
reaches contributors in a variety of methods
with the involvement of all tax authorities 5. Acknowledgements
across the country (e.g., seminars, banners,
street rallies, contests with prizes for highest This work was financially supported
contributors, documentaries). The strategy through the project Routes of academic
has generated positive results in terms of excellence in doctoral and post-doctoral
compliance levels. Namely, the amount of research READ co-financed through the
income tax collected has increased twice European Social Fund, by Sectoral
during the last four tax years. Operational Programme Human Resources
In a similar festive approach, Guatemalan Development 2007-2013, contract no.
authorities use culture to promote voluntary POSDRU/159/1.5/S/137926.
tax compliance and cultivate good
citizenship. Through the annual festival 6. References
Strength Lies in Numbers, they teach
citizens about the social importance of taxes [1] Slemrod, J. (Ed.), Why People Pay Taxes:
with the help of entertaining activities (i.e., Tax Compliance and Enforcement,
music concerts, talent shows, plays). University of Michigan Press, Ann Arbor,
The importance of taxpayers for the MI, 1991.
[2] Alm, J., McClelland, G.H., Schulze, W.D.,
national Rwandan economy is celebrated
Why Do People Pay Taxes?, Journal of
during Taxpayers Day (decreed in 2002). Public Economics, Vol. 48, No. 1, 1992, pp.
To increase popularity among taxpayers, the 21-38.
event is chaired by the president of the [3] Cullis, J.G., Lewis, A., Why People Pay
country, who recognizes the most compliant Taxes: From a Conventional Economic
taxpayers by awarding them merit certificates Model to a Model of Social Convention,
and medals [35]. Journal of Economic Psychology, Vol. 18,
No. 2-3, 1997, pp. 305-321.
4. Concluding remarks [4] Fjeldstad, O.-H., Semboja, J., Why People
Pay Taxes: The Case of the Development
Levy in Tanzania, World Development, Vol.
Taxation is an essential component of
29, No. 12, 2001, pp. 2059-2074.
modern societies which redistributes wealth [5] Dhami, S., al-Nowaihi, A., Why People Pay
at national level and finances the public Taxes? Prospect Theory versus Expected
goods system providing education, medical Utility Theory, Journal of Economic
services, social protection, national security, Behavior & Organization, Vol. 64, No. 1,
infrastructure, etc. Taking into account the 2007, pp. 171-192.
importance of taxes for citizens wellbeing [6] Kirchler, E., Muehlbacher, S., Kastlunger, B.,
and life satisfaction, the topic of tax behavior Wahl, I., Why Pay Taxes: A Review on Tax
has begun to be intensively investigated Compliance Decisions, in J. Alm, J.
starting with the 1970s [36-38]. Martinez-Vasquez, B. Torgler (Eds.),
Developing Alternative Frameworks for
According to the literature, the amount of
Explaining Tax Compliance (pp. 15-32),
tax money collected by tax authorities Routledge, London, 2010.
depends, among other, on tax literacy [7] Andreoni, J., Erard, B., Feinstein, J.S., Tax
regarded as citizens level of tax knowledge. Compliance, Journal of Economic
Namely, the more knowledgeable Literature, Vol. 36, No. 2, 1998, pp. 818-860.
contributors become in the matter of taxation [8] Alm, J., Torgler, B., Do Ethics Matter? Tax
and its importance, the more funding state Compliance and Morality, Journal of
budgets enjoy. Business Ethics, Vol. 101, 2011, pp. 635-65.
Acknowledging this connection, tax [9] IRS, A Dictionary of Compliance Factors,
authorities around the world have focused on Government Publishing Office, Washington,
DC, 1978.
strategies aimed at raising the level of tax
[10] Kirchler, E., The Economic Psychology of
literacy among individual, self-employed or Tax Behaviour, Cambridge University Press,
corporate taxpayers. Consequently, by means Cambridge, 2007.
of moderate or substantial investments, [11] Kichler, E., Hoelzl, E., Wahl, I., Enforced
taxpayers have started learning more about versus Voluntary Tax Compliance: The
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quoted prices on identical or similar assets in the company can identify what rights each
inactive markets and other relevant market party on the goods and services
data . Level 3 inputs are unobservable inputs transferred,
or data, for example mathematical models the company can identify the payment
obtainable price. They should be used to terms of goods and services transferred,
obtain fair value measurement when d) the contract has commercial substance
observable inputs or data are not available9. (eg changes associated risk, timing and
The main rule of IFRS 15 "Revenue from amount of future cash flows of the
contracts with customers" is that company),
revenue/income recognition must describe it is probable that the entity entitled to
the sell of goods or services to beneficiaries collect the sum in exchange for goods and
and evaluation of income should reflect the services exchanged client. This involves
consideration to which the entity expects to assessing the ability and willingness of
be entitled in exchange for these goods and the customer to pay at maturity.
services. Revenue recognition is the result of The amount received from another client
going through the following 5 steps 7 : company may be recognized as revenue only
1. Identify the contract with a client; if one of the following events occurs:
2. Identify the obligations arising from a) the entity has no outstanding obligations to
the contract; transfer goods or services to the client and all
3. Determine the transaction price; or 90% of the amount promised by the client
4. Allocation of the transaction price has been received and is not returnable,
between the obligations arising from the b) the contract was executed, and the amount
contract; received from the customer is not refundable.
5. Recognition of income as the entity Any amount of cash received from a client is
satisfies the requirement. recognized as a liability until the above
Revenue may be recognized in a precise conditions are met. If at first a contract
moment in time or over a period of time. qualifies for a contract to be accounted under
Companies that currently using the stage of IFRS 15, the company will review its
completion method or percentage of classification unless there is evidence of a
completion method will have to reassess significant change in the facts and
whether to recognize revenue over a longer circumstances of the original. For example, if
period of time or at a moment in time . If the the client's ability to pay deteriorates
revenues are recognized over a longer period significantly, the entity shall reassess whether
of time , the procedure in which progress it is possible to collect the amount you have
towards completion is measured may change. the right to exchange goods and services
Those companies now recognize revenue at a remaining to be transferred to the client.
moment in time as may be determined to Changing the contract is treated as a separate
recognize gains over a longer period of time. contract (unless further give rise to
obligations and its price reflects the price at
3. The process of identifying of the the time the amendment) or as an adjustment
contract with a client to the original contract represented by
income approach method for adjusting
The standard IFRS 15 defines a contract income accrued or potential adaptation based
as an agreement between two or more parties on circumstances. [9]
that creates enforceable rights and
obligations for the parties and states that the 4. Identify the obligations arising from the
enforceability arising from the law applicable contract
to the contract 7. Contracts may be written
on paper or electronically. In some cases, two A contract includes obligations to sell
or more contracts are combined and goods or services to a client. 7 An
recognized as one contract with a customer. obligation to sell a good or service is
A contract with a customer also must meet all separable if it meets the following conditions:
the following criteria [7]: a) the customer may receive good or
the parties have approved the contract and service transferred separately or in
agree to honor obligations,
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combination with other resources at its projected revenue value or the amount most
disposal; likely. Estimated value of the variable
b) the entity promises to transfer goods or elements will be included in the transaction
services the customer is identified separately price, unless it is probable that there will be a
from other promises under the contract. significant cancellation of accrued income
when the associated variable elements will be
Example removed [7].
An IT company enters into a contract with Determine whether the significant
a client under which transfers a license to a components of interest included in price can
computer program performs installation be difficult for complex long-term contracts,
services and provide technical support and where goods and services are delivered and
update service for a period of four years. payments are made throughout the duration
Installation services does not significantly of the contract. Company management will
modify the software. It is functional and free need to assess the time of delivery of goods
update service and support. Based on this and services and payments when and if the
information, the manufacturer may identify interval between two successive payments is
four obligations arising from the contract for greater than one year, this could be an
the following goods and services: indication that there is a significant
a. the license for the software, component of interest. The amount of income
b. installation, recognized will be different if the receipts are
c. update services, made in advance or afterwards.
d. technical support services. If the customer is not funded by the
If an entity customer warranties, warranty supplier, revenue is measured at fair value. If
determines the nature of its accounting the entity is unable to determine fair value
treatment. If the customer can choose income amount will be estimated indirectly
whether or not warranty or guarantee based on the selling price of goods and
purchases give it an extra service, it is a services transferred to the customer. If a
separate obligation. If security means just customer contributes with goods and services
that good delivered meets certain specified to facilitate the execution of the contract by
conditions, then there is a separate obligation. the company, shall be deemed get control of
these products and services. In this case,
5. Determine the transaction price goods and services received are considered
non monetary items received from the client.
The company must determine the value The amounts paid by the client company as
calculation for the recognition of revenue, coupons, vouchers will be accounted for as
which is expected to be entitled in exchange reductions in transaction prices and therefore
for goods and services promised in the revenues, unless they are granted in exchange
contract. [7] The transaction price includes for other goods or services.
an estimate of the effect of variables passage Hire-purchase
of time on the devaluation of money, if there If collection capacity is uncertain ,
is a significant interest component included revenue will be recognized immediately
in the price paid by the customer. For sales or because they were not fulfilled all the
royalties arising from the use of licenses or requirements of IFRS 15 is not ( or not yet )
trademarks, company does not have to undertaking likely to have economic benefits
include these elements in price before the associated with the transaction . If a sale is
sale takes place. registered , its value based on the present
The price may be a fixed amount or may value of the rates will be calculated as the
vary depending on discounts, incentives, present value of premium rates using interest
bonuses or other similar items [9]. The rate market . Interest element is recognized as
transaction price is adjusted for the effect of obtained in proportion to time.
the passage of time on the purchasing power Example
of money, if the contract contains an On 1 January 2015, an enterprise of goods
important component of interest included. If sold to a client who receive 10 million CU.
the price includes a variable component, the Settlement conditions in the agreement are
value is estimated using either technique [9] :
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and rewards of ownership of the goods are In most cases, the means of payment in
transferred to the customer. According to the form of cash or cash equivalents , and in
IAS 18, are set different criteria for the this case the amount of revenue is the amount
recognition of revenue from sale of goods of cash or cash equivalents received or to be
and services revenues. The new standard received. If the inflow of cash or cash
proposes a different approach to determine equivalents is deferred (eg when granting a
whether revenue should be recognized at a loan provider for a longer period ) , the fair
particular time or over a period of time which value of the means of payment may be less
applies to the sale of goods and rendering of than the cash received or receivable , because
services. the this case the final amount to be collected
An obligation may be satisfied at a time includes an element of funding. The
(as is usually the transfer of goods) or over a difference between the fair value and the
period of time (as in the case of services). nominal amount of the means of payment is
Frequently, the cash is not charged recognized as interest income.
immediately when there is a revenue IFRS 15 will produce changes in
generating transaction. More likely it is that accounting in particular long-term contracts
cash to be received shortly thereafter, the with multiple elements. For example, a seller
delay being dependent on commercial terms of cars which provide service with the sale
practiced in society and industry. In such will have to assess whether the goods and
circumstances, by expanding commercial sericiile transferred are distinct and recognize
terms, the buyer's obligation need not be revenue when they are transferred to the
reduced because the effect is insignificant. customer. The telecommunications industry
However, if the customer has been offered an sales contracts may often provide a mobile
extended period without paying interest to phone and telephony services over a certain
settle the obligation (longer than normal period (one year or two years)[10]. Under
commercial terms), the effect is likely to be IFRS 15 transaction price which includes the
significant, in which case the customer amount paid to conclude the contract and
requirement will be reduced. As the company monthly payments for telephone services is
has available cash for themselves, cash allocated between the sale of mobile phone
payments will be made in the future is worth and telephone services based on the relative
less at the time of sale and must therefore be weight of the individual price of each item.
properly assessed. These entities will need to gather information
This assessment is normally easy to do. about individual prices of various items. In
However, there are cases less clear. For some cases there is an observable selling
example, an enterprise may decide to give a price (eg no observable prices for upgrades
customer his credit a longer period than and additional functionality for the software).
normally practiced (which for example can If there are no observable prices, IFRS 15
be 30 days). In this case the company will allocation is based on estimated prices. For
have to update the value of future cash flows. entities that sell software products, the nature
The problem is to decide what interest rate is of these programs and contractual terms will
used in this update. be analyzed carefully. Entities that sell real
IFRS 15 is effective for accounting estate assemblies have difficulty believing
periods beginning on or after 1 January 2017 active construction as a supply of services
and applies to contracts signed after that date (for which revenue is recognized over a
or that are not yet settled at this time. For period) or sale of goods (for which revenue
comparative amounts, an entity may choose recognition is performed at a time). IFRS 15
to use either the retrospective application or a details the criteria that must be met to
modified approach which consists in recognize revenue over a period of time and
recognizing the cumulative effect of applying when revenue should be recognized at some
the standard as an adjustment to the opening point without distinguishing between goods
balance of retained earnings at the date of and serivicii. Construction contracts and
entry into force (1 January 2017), while that some contracts on production assets have to
comparative amounts for December 2016 are be reassessed in light of the new rules.
not restated. 7 Provisions relating to the amendment of
contracts should be examined by entities in
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8. References
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Niu Oana
Faculty of Economics, "Ovidius" University, Constanta, Romania
oana.oprisan@yahoo.com
Niu Claudiu Valentin
Faculty of touristic and commercial management,
Dimitrie Cantemir University, Bucharest, Romania
valynitu@gmail.com
Tileag Cosmin
Faculty of Economics, "Lucian Blaga" University, Sibiu, Romania
cosmin.tileaga@yahoo.com
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different benefits and financial losses. "The minimal. On the left edge of the model over
engagement of fiscal studies in arid the size of the power, at a minimum level of
assumptions on how taxpayers would act if trust in authorities, the tax compliance
they were convicted to be entirely rational, to increased by the increased power of
behave like automatons aimed to maximize authorities to stop tax fraud.
the utility, it can only postpone the realistic Increased authorities power generates
fiscal theories and useful political therefore forced compliance. On the right
perspectives" [1]. The second reason lies in edge of the model, along the dimension of
the invalidation of the predictions of trust, at a minimum level of power, the level
economic models by numerous empirical of tax compliance increased by the increasing
research. Unlike the economic theory that trust in authorities which fosters cooperation.
taxpayers defraud the state budget, empirical Tus, the increased confidence in authority
studies suggest that most taxpayers are generates voluntary compliance. Moreover,
honest people [2] and that some taxpayers the maximum level of tax compliance -
always conform, even when the risk of regardless of its nature is obtained with high
detection is low enough to commit tax fraud confidence and / or high power.
[3] . According to the model "slippery slope",
After an intermezzo in the rationality, it is the interaction between taxpayers and
time to proceed to the perimeter of the authorities gives rise to two types of climates,
psyche logic. The shortcomings business a synergistic one and an antagonistic one.
models have opened the door to develop Climates vary by taxpayers' perceptions on
behavioral patterns of fiscal behavior. Built levels of trust in authority and of authorities
on the foundation of political and socio- power. A power increase can be perceived
psychological determinants of behavior, positively by the payers of tax obligations. If
behavioral models taxpayer waives rational they see in authorities approach a legitimate
prototype and consider individuals who attempt to stop the behavior of non-
honor their obligations to the state or not, compliance, confidence will gradually
based on attitudes, norms, beliefs, feelings, increase. As a result, the amount of tax
social or cultural characteristics such as age, revenue collected will increase, and the
gender, race, religion etc. [4]. climate is synergistic. The authorities
approach of power increase can be charged
3. Slippery slope model negatively, too (as an illegitimate attempt to
spol the population), situation in which
According to the "slippery slope" model taxpayers may lose confidence in the
created by Kirchler, Hoelzl and Wahl, trust in authorities. Accordingly, the amount of the
authority and the power of authorities are two tax revenue decreases, the climate becoming
important factors that influence tax antagonist. The dynamics of the two climates
compliance. claims the need to separate the concepts of
Confidence in the authorities is "the legitimate power of the authorities and
general view of individuals and social groups coercive power of the authorities. The first is
according to which the tax authorities are accepted voluntarily by taxpayers due to its
benevolent and act for the benefit of the positive effects, while the second is rejected
common good" and the power of authorities because of its stringent. Typically, power
is defined as "perception of the taxpayers on growth is perceived coercive in the
the potential of tax agents to detect tax fraud antagonist climate, and legitimate in the
and punish it "[4]. Both confidence and synergistic climate. In a study on confidence
strength increase tax compliance levels, but and strength, Choudhury noted that the
its quality varies: increase confidence in variable power diminishes confidence level
authority causes voluntary compliance; where authorities are guided by obsolete laws
increasing power causes imposed or forced and rules and increase confidence when
compliance. authorities are acting properly in the spirit
If both the trust in authority and the power and letter of the law.
of authorities are minimal, taxpayers are
tempted to maximize revenue through fraud. 4. The Australian Taxation Office (ATO)
As a result, the level of tax compliance is model
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6. Conclusions
7. References
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Niu Oana
Faculty of Economics, "Ovidius" University, Constanta, Romania
oana.oprisan@yahoo.com
Niu Claudiu Valentin
Faculty of touristic and commercial management,
Dimitrie Cantemir University, Bucharest, Romania
valynitu@gmail.com
Tileag Cosmin
Faculty of Economics, "Lucian Blaga" University, Sibiu, Romania
cosmin.tileaga@yahoo.com
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(on the unemployed case). The basis for thus having related revenue. Thus, the
contribution holidays and allowances can not 31.42% of the salary paid by employers in
be greater than the product of the number of Sweden in 2012, local taxes paid by resident,
insured and 12 minimum salaries. This and the 28.97% paid by freelancers [2],
contribution is borne by the policyholders guarantees the Swedes, in addition to
and not the employers, for the following treatments, medicines, consultations etc. the
categories: members, limited partners, disease and disability cash benefits for
shareholders, directors, managers, members sickness, sick pay, compensation activity,
of family associations and individuals guaranteed compensation for those with low
authorized to perform independent activities. incomes or no income, compensation for
The basis for contribution for the above occupational diseases and accidents at work,
mentioned persons shall not exceed 12 rehabilitation allowance, maternity and
minimum salaries guaranteed in payment [1]. paternity leave, maternity and child rearing
According to Government Decision no. benefits. Another difference from Romania is
23/2013 for establishing minimum gross the lack of a minimum income grant for
salary guaranteed payment, until 1 July 2013 certain categories of benefits (eg if sickness
it will be 750 RON, and 800 RON thereafter. allowance, the only condition imposed is that
For example, for an employer in Romania people in the first month of employment,
with seven employees, the calculation basis have been entered on the payroll at least 2
for the contribution to medical leave and weeks). Instead, for sickness benefits in cash
allowances can not exceed the amount of for example, the accepted annual minimum
63.000 RON (12 * 750 * 7). This means that income must be equal at least 24% of the
the contribution of 0.85% will be applied current price base (mentioned by the
only to funds not exceeding 63.000 RON, in European Commission as SEK 44,000 for
the month for which it is calculated. Suppose 2012). So those who want to benefit at a time
for April 2013, the total wage bill for an of sickness benefit in cash, must have earned
employer with seven employees was 24,000 income of at least SEK 10,560. Also, the
EUR (amount less than the calculated person who wishes to obtain cash sickness
maximum 63,000 USD). In this case, the benefit should be reduced as work capacity
employer will pay for April 204 RON for due to illness by 25%.
medical leave and allowances (24,000 *
0.85%). For a manager who has signed a 4. Differences between social insurance
management contract, the calculation basis system in Romania and Sweden
for the application of 0.85% sick leave
related contribution and allowances may not For a better understanding of the
exceed 9.000 RON (12 * minimum gross differences between sick leave and
salary guaranteed payment of 750 USD). allowances for Romanian insured persons
This means that, if we assume that in April compared to the Swedish ones, will further
the manager had revenues of 9.500 RON, the exemplify the main differences between the
0.85% will be applied only for the amount of manner of their delivery and the benefits
9,000 EUR (will pay 76,5 RON = 9.000 * achieved by the insured [3].
0.85% and not 80,75 RON = 9.500 * 0.85%). The leave and the temporary disability
allowance
3. State Social Insurance in Sweden The condition for granting: in Romania,
contribution for 1 month in the last 12
In Sweden, the health insurance brings a months preceding the illness; in Sweden, the
number of benefits related to medical leave existence of the insured on the payroll of the
and allowances. The big difference with employer for at least 2 weeks.
Romania is that they are designed so as to Granting period: in Romania, temporary
cover the needs of all residents (not related disability allowance is granted for at most
only to certain categories of persons 180 days a year. After 91 days, the extension
considered insured, as in Romania). All the is only in social insurance expert physician's
benefits of social health insurance are approval; in Sweden, sickness allowance is
included in taxes and fees paid by residents, granted for a maximum of 14 days of illness,
some of which are guaranteed by the state, and if disease persists after this period, there
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are granted benefits in cash for at most 364 sickness allowance is 80% of the revenues
days within a period of 15 months. With the they would have received if the insured
agreement of the Swedish Social Insurance didn`t get sick, and the sickness benefits in
Agency, the period may be extended to 550 cash represents 80% of the average income
days. estimated for six months in a row (this
Extending the normal period for granting: income must be less than the maximum limit
in Romania, temporary disability allowance fixed [4]) multiplied by 0.97 (for example,
can extend beyond 180 days per year for for a person in the first 14 days of illness had
serious diseases: tuberculosis, malignancies, an estimated 4,000 SEK, sickness allowance
AIDS. If the periods expires (irrespective of for this period will be SEK 3,200. Since the
their length), primary doctor or specialist period of sickness exceeds 14 days and
may propose individual retirement due to estimated revenue for 6 consecutive months
illness; in Sweden, where the tumor or were SEK 60,000, cash sickness that will
neurological diseases, it can turn for benefit the person in question for the analised
continued payment of sickness benefits in period will be 46,560 crowns Swedish).
cash. After the end of the period of sickness Regarding maternity leave, in Romania it
cash benefits, if it finds permanent work is intended only to mothers, it requires a
incapacity, the insured receive compensation minimum contribution internship of one
for illness (minimum age for the granting of month in the 12 months preceding the grant
which is 30 years). of leave and may be granted for 120 days (60
Waiting period: in Romania, sick leave days before birth, 60 days after birth). For the
and temporary disability allowance is granted entire period, the mother receives maternity
from the first day of illness; in Sweden, both allowance equal to 85% of the average salary
sick leave and sickness allowance are granted for the last 6 months worked. The minimum
after a waiting period of one day (except the amount of maternity allowance is 600 RON,
unemployed, those on maternity / child and the maximum value 4.000 RON. In
rearing, the ones receiving benefits from the Sweden, maternity allowance is granted to
first day of illness and self-employed who mother holding an applicant job to load and
can choose a waiting period of 7, 14, 30, 60 can not be transferred to a less applicant post.
or 90 days). Maternity allowance is granted from 60 days
Who supports payments: in Romania, for before the estimated date of birth, but is paid
the first 5 days of illness, temporary for no more than 50 days. The allowance is
disability allowance is paid by the employer, calculated as equal to cash sickness benefit
then the National Unique Fund of Health (97% * 80% * based on income), the
Insurance (FNUASS). Exceptions are maximum is 330,000 SEK.
unemployed, shareholders, limited partners, Holidays and child allowance in Romania
directors, managers, members of family is granted for a maximum of three births, for
associations and self-employed, whose the parent who lives with the child, had
compensation is borne solely by FNUASS; in taxable income in the 12 months preceding
Sweden since the 2nd day of illness until the the birth and has all tax obligations to local
day 14th, sickness allowance is payable by budgets paid to date. Parental leave and child
the employer. Subsequently, if the disease rearing allowance may be granted for a
persists, sickness benefits in cash are borne period of one year or two. Calculated and
by the Social Insurance Agency (except paid monthly allowance represents 75% of
registered unemployed receiving from the average net income realized by the parent in
2nd day of sickness benefits in cash directly the last 12 months prior to birth. This amount
from the Social Insurance Agency). is increased for each child born, starting with
Value of benefits: in Romania, temporary the second. In Sweden however, the period
disability allowance is calculated for each for granting parental leave allowance is 480
month as 75% of average monthly income for days with an extension of 180 days for each
the last 6 months due to the 12 making up the child in multiple births. This period can be
contribution period (thus, for an average divided into several periods until the born
monthly income in the last 6 months 950 baby ends first school year. In this way, the
RON, monthly allowance for temporary work parent in whose care the child is, can
incapacity will be 712.5 USD); in Sweden, participate more actively in his education, the
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first 7 years of life being crucial in shaping The health system in Sweden is mainly
his personality. Also, parents may choose to financed from general taxes and duties.
raise the child together, each receiving the Swedish central government is responsible
allowance for 240 days of the 480, or one of for overall health policy and provides grants
them can give each other up the whole time. to regional and municipal governments to
Even if the father decides to stay in parental support health care services. Swedish public
leave, the mother will receive a compensation health system is in constant recasting in order
in the first 4 weeks after childbirth. The to improve the quality of care and access to
Swedish state through the Social Insurance the system by a close monitoring of costs.
Agency offers a guaranteed child-raising
allowance of 180 SEK / day, for those who 6. References
do not qualify for cash sickness benefit
(income less than 10,560 crowns weld the [1] See GEO no. 158/17 November 2005 on
last 12 months). For the remaining medical leave and social insurance
policyholders, the parental allowance for the allowances, as amended and supplemented,
first 390 days of the leave is equal to sickness Art. 2 (1), Art 3, Art 6, Art. 7, Art. 8 (3).
benefits in cash which would fit the parent [2] See the publication in 2012 of the European
(97% * 80% * base of income) and for the Commission on social security rights in
Sweden, "Your social security rights.
remaining 90 days is paid a guaranteed
Sweden ". The work can be found in full on
allowance of 180 SEK / day. the official website www.ec.europa.eu.
[3] See GEO no. 158/17 November 2005 on
5. Conclusions medical leave and social insurance
allowances, as amended and supplemented,
Small budgets allocated to public health Chapter 2, Articles 12, 13, 14, 15, 17, for
can lead to first-class medical services. The information relating to Romania, and the
financing of the health system in Romania is publication in 2012 of the European
Commission on social security rights in
mainly based on contributions, and additional
Sweden, "Your social security rights.
on transfers from the state budget. Allocating Sweden "(full paper can be found on the
a percentage of about 3% of GDP (among the official website www.ec.europa.eu), for data
lowest in the EU), it determines the quality on Sweden.
sometimes inadequate of the public health [4] The maximum established for the calculation
system, migration of medical professionals to of sickness benefits in cash related to the 6
the private sector or abroad, under-funding consecutive analyzed months is calculated as
prevention programs. All this leads to the follows: 7.5 * price base amount, which
need to reform the public health system in means that for 2012 the rate base price was
Romania regarding the efficiency of quality SEK 44,000, the maximum established for
the calculation of sickness benefits in cash
health care delivery. It also requires the
related to the 6 consecutive analyzed months
government to consider health and education is 330,000 SEK
as national priorities and to allocate
appropriate budgets to these areas.
.
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Ofileanu Dimi
University 1 Decembrie 1918, Alba Iulia
dimi_ofileanu@yahoo.com
Chiriac Silviu Cornel Virgil
University 1 Decembrie 1918, Alba Iulia
silviu_chiriac@emantes.ro
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xdoc, xc , ydoc, yc , defined above. The It can be observed that, from the two
number of documents from the financial year variables xdoc and ydoc , we choose the
is of 30.000 and that of accounting records is variable with a higher variation for calculating
of 14.000. The researcher establishes the the size of the sample. We have to mention
precision parameters at 95% and that, for the survey not to generate high
R 1% . representativeness error, the coefficient of
We establish the range in which the variation calculated for both variables has to
average size of error and the average be less than 35%. If it exceeds this value, it is
proportion of error are situated for the considered that the observed population is not
considered variables. Because we dont know homogeneous and it is recommended the use
of simple random survey.
x and s 2 from previous estimations we will
The coefficient of variation is a measure of
determine them based on a pre-investigation
relative dispersion which describes the
of low volume. We investigate 90 statistical
average quadratic deviation as a percentage
units. We observe the population of volume
from arithmetic average. It allows us to
ndoc 90 documents and nc 90 compare the spread of individual values of
accounting records; we can also take several characteristics (variables) which are
ndoc nc . not expressed in the same unit (in this case a
qualitative variable with correct or incorrect
The results of the pre-investigation were:
values, and a quantitative variable with
1 0 monetary values expressing the size of error)
x doc :
86 4 For variable xdoc , we have:
0 400 562 1.100 - the average: wdoc 0,9555
y doc :
87 1 1 1 2
- the dispersion w wdoc 1 wdoc 0,0425
doc
1 0 - the coefficient of variation:
xc : w
85 5 CV x w doc 100 21,58%
doc doc
0 400 730 750 821 1.510
yc : For variable ydoc , we have:
85 1 1 1 1 1
- the average: y doc 22,911
In the case of audit of documents, if we
want to know the number of documents - the dispersion: s 2y 18.882,47492
doc
incorrectly drawn but also the size of error in
- the coefficient of variation:
the documents, in order to calculate the size of
the sample we will determine the coefficient sy
CV y
100 599%
doc
of variation (CV) corresponding to variables dac
y doc
xdoc and ydoc . Based on this coefficient we
Because CV y 599%, which is a very
will choose the dispersion and the average of doc
one of the variables, which will be used in the high value, it is not recomended to use this
formula for determining the size of the type of survey for this variable because the
sample, as it follows: values are miscellaneous. The auditor can
decide to use simple random survey for
- if CVx doc CVy doc , the following formula
variable xdoc , to calculate the error proprtion
for determining the size of the sample will be
used: in documents, beacause for this one
Z2 s y2 CV x 21,58% 35% .
doc
n doc
So, he will determine the sample volume
y 2
doc
using the formula:
- otherwise, we will calculate the size of the
sample as it follows: Z 2 w
2
nx doc
,
Z 2 2 w
2
doc s wdoc
n doc
where permited error limit:
wdoc
2
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y 2
c
2
- permited error limit: s2 i 1
y c , meaning:
s w Z w , sw 0,00947 y c n
44.584,517
doc doc doc 2
s yc
- confidence interval, meaning the area where
the average proportion of documents correctly - the coefficient of variation:
drawn is, with a probability of 95%: sy
P wdoc s w p wdoc s w 95% CV y c
100 451,28%
doc doc c
y c
P0,94691 p 0,96585 95% It can be observed that in this case the
We determine the interval where the quatitative variable shows a very high
number of documents correctly drawn is, variation, so the simple random survey cant
multiplying, in the above relation, all the be applied. But the statistic ofers the
members by 30.000 (N, the total number of possibility of grouping the values (from the
documents) and we obtain: quantitative variable) in intervals (usually of
28.407 p N 28.976 equal length. In our case, depending on the
We can verify if the precision parameter number of intervals (or the length of the
R=1% was kept in carring out the survey interval) we will have (in hundred lei):
sw 0 4 4 8 8 12 12 16
R doc
100 0,99%. yc :
wdoc 86 2 1 1
R<1%, so the survey was carried out in the Calculating in this case, we obtain:
parameters set (R=1%, =95%).
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- confidence interval:
c
wdoc 0,95853 w2 doc 0,03975
P 412,7724 m y 422,2476 95% wdoc 0,19937462
c - average survey error:
so the average of the error from records is in
the interval (412.772, 422.247). w2 doc
We verify if the precision parameter R=1% wdoc 1
n
= 0,0047142
n N
stayed the same in carrying out the survey:
y - permitted error limit: w Z wdoc
R c
100 1,13% 1% , doc
y c w 0,0092398
doc
so the precision of 1% was exceeded, but the - confidence interval:
survey is still representative because R<5%. P0,9493 p 0,9678 95%
so the proportion of documents correctly
3. The unrepeated simple random survey
drawn is in the interval (94,93% - 96,78%),
and of those incorrectly drawn in the interval
In the case of this type of survey the
volume of the sample will be calculated after (3,22% - 5,07%). Multiplying by 30.000 we
obtain the number of documents correctly
formula [3]:
drawn in the interval (28.479, 29.034) and the
Z 2 s 2
n for quantitative variable interval for the number of documents
Z 2 s 2 incorrectly drawn (966, 1.521), with a
x
2
probability of 95%.
N
and We calculate the precision parameter R
Z
2 2 sw
n w and we obtain: R doc
100 0,96%
Z 2 w2
for alternative variable.
wdoc
w
2
It can be observed that in the case of this
N
We consider the same example as in the type of survey the indicators that express the
case of repeated simple random survey; the error in survey are smaller than the same
indicators within the repeated simple random
average and the dispersion for xdoc and yc survey.
are known from previous estimations, the - for variable
variation within these variables is the highest
0 3 6 12 12 18
and y doc hundred lei.
CV > CV , CV <35%
1.640 38 10
x doc y doc x doc
CV >CV , CV
<35% . y doc 174,88 s y2 22.840,62
doc
y doc x doc y doc
We determine the sample volume in the - average survey error:
case of documents control using the s2
following formula: ydoc 1
n
, ydoc 3,449
n N
Z 2 w
2
- permitted error limit:
n doc
y Z y ,
Z w
, n = 1.688
2 2 y 6,76
w 2 doc doc doc doc
doc N doc - confidence interval:
We observe that, compared with repeated P 168,12 m y 181,64 95%
doc
simple random survey, the volume of the The average error in documents will be in
sample decreased (from 1.788 to 1.688) in the the interval (168, 12; 181, 64) lei, with a
same precision conditions (=95%, R=1%). probability of 95%.
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y 4. Conclusions
R doc
100 3,86%
y doc The use of simple random survey in audit
(higher than the parameter initially established involves the following clarifications:
at 1%, but lower than 5%, so the survey is - the unrepeated simple random survey is
representative). always more precise than the repeated simple
We determine the sample volume in the random survey and requires a lower sample
case of the control of accounting records by volume;
using the following formula: - the simple random survey is recommended
in the audit of the number of accounting
Z 2 s y2
n c
, n = 2.512 documents and records incorrectly drawn (the
Z s y2
2 case of alternative variables) and less
2y c
recommended in the control of the size of
c N error in the accounting documents or records
We observe the sample of 2.512 (the case of quantitative variables);
accounting records and we obtain: - it will be applied in the audit of the size of
1 0 error (from accounting documents and
- for variable xc : records) only when the error distribution will
2.432 80 be relatively close;
wc 0,96815 w
2
0,03084 - it wont be applied if the errors from the
c
controlled accounting documents and records
- average survey error: wc 0,002872 present isolated values, because it will
determine large representativeness errors;
- permitted error limit: w 0,00563 - the simple random survey is recommended
c
- confidence interval: especially for small entities, and for large
P0,9252 p 0,97378 95% entities it will be used in order to control only
certain aspects taken separately (the audit of
so the proportion of the accounting records
some documents with a close value) .
correctly drawn is in the interval (96,25%-
97,38%), and that of those incorrectly drawn
ACKNOWLEDGMENT
in the interval (2,62%-3,75%). Multiplying by The author, Silviu Chiriac Cornel Virgil, would
14.000 we obtain the number of accounting like to specify that this paper has been financially
records correctly drawn in the interval supported within the project entitled SOCERT.
(13.475, 13.633) and the interval for the Knowledge society, dynamism through research,
number of the accounting records incorrectly contract number POSDRU/159/1.5/S/132406.
drawn (367, 525), with a probability of 95%: This project is co-financed by European Social
R 0,58% 1% Fund through Sectoral Operational Programme
for Human Resources Development 2007-2013.
0 8 8 16 Investing in people!
- for variable yc hundred lei
2.482 30
5. References
y c 409,5 s y2 7.552
c
[1] Baron, T., Anghelache, C., ian, E.,Statistic,
- average survey error: 1,423 Ed. Economic, Bucureti, 1996;
yc [2] Federaia Internaional a Contabililor &
- permitted error limit: y 2,789 Consiliul pentru Standarde Internaionale de
c Audit i Asigurare, Manual de reglementri
- confidence interval: internaionale de control al calitii, audit,
revizuire, alte servicii de asigurare i servicii
P 406,711 m y 412,289 95% conexe, CAFR, Bucureti, Ediia 2012;
c [3] Isaic-Maniu, A., Mitru, C., Voineagu,
The average error in accounting records V.,Statistica pentru managementul afacerilor,
will be in the interval (406,711, 412,289) lei. Ed. Economic, Bucureti, 1999;
y [4] Jaba, E., Statistic, ediia a 3-a, Ed.
R c
100 0,68% 1% Economic, Bucureti, 2002
y c
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time expected credit losses, the approach provisions for capital, earnings management
provides a sound forward looking perspective and signalling by Australian banks."
with a strong counter-cyclical effect. Accounting & Finance 47.3 (2007): 357-379
Also, the model imposed by the new [7]Gebhardt, Gunther, and Zoltan
NovotnyFarkas. "Mandatory IFRS adoption
standard is closed in the approach to the
and accounting quality of European banks."
Basel prudential regulations. The prudential Journal of Business Finance & Accounting
regulation on capital adequacy, requiring 38.34 (2011): 289-333.
banks to calculate 12 month credit expected [8] Handorf, William C., and Lili Zhu. "US bank
losses as part of the regulatory capital, uses loan-loss provisions, economic conditions,
the credit loss experience based on historical and regulatory guidance." Journal of Applied
events to determine the expected losses over Finance 16.1 (2006).
the entire life of the loan and considers a [9] Risaliti, Gianluca, Greta Cestari, and Mariarita
range of possible economic scenarios. From Pierotti. "Global Financial Crisis and
this point of view, the Basel expected losses Accounting Rules: The Implications of the
New Exposure Draft (ED)Financial
might not reflect precisely the characteristics
Instruments: Expected Credit Losses on the
of the portfolio at the assessment moment. Evaluation of Banking Company Loans"
By contrast, the expected credit losses Journal of Modern Accounting and Auditing
model described in the IFRS 9, promotes the 9.9 (2013): 1141-1162.
evaluation based on the information available [10] IAS 39 Financial Instruments: recognition
at the assessment date, also to be used in the and evaluation
forecast process. From this perspective the [11] Regulation (EU) No 575/2013 Of The
standard intents to provide a fair picture of European Parliament And Of The Council of
the economic reality at the reporting date, 26 June 2013on prudential requirements for
rather than adjusting assumptions derived credit institutions and investment firms and
amending Regulation (EU) No 648/2012
from historical events with the purpose of
[12] IFRS 9 Financial Instruments
achieving a counter-cyclical effect. Although,
from the practical point of view, the
application of the standard can be rather
expensive in terms of efforts in order to
evaluate the life time expected credit losses,
in my opinion, the standard takes one step
forward towards a convergence with the
expected loss concept introduced by the
Basel regulations.
6. References:
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tained properly or not as long as the top man- The removal Daiwa Bank from the US
agement was blessed with higher profits, banking market was a result of a failure of
since half of the profits at that time were control of operational risk, which is the risk
coming from that particular branch. that arises from the improper operation of
The important point that should be no- trade processing or management systems that
ticed here is that the banks management did will result in financial losses.
not identify the breaches in law; it was the Operational risk also encompasses the risk
trader himself who disclosed to the banks of loss resulting from the breakdown in
management the bank tried to hide that in- controls within the firm including but not
formation from the regulators. When it final- limited to, unidentified limit excesses,
ly decided to inform the regulators about its unauthorized trading, fraud in trading or in
bond trader it did not expect the consequenc- back office functions including inadequate
es, because the management thought that the books and records and a lack of basic internal
bank would escape by handing over or identi- accounting controls, inexperienced
fying the person involved in the crime. On personnel, and unstable and easily accessed
Mr. Iguchis part, he thought that being sin- computer systems.
cere to the bank would mean that he might When the Daiwa Banks closure in the US
not be punished for what he had done, and market is examined it can clearly be seen that
according to him it was the bank that would was a violation in keeping and maintaining
decide whether to punish him or not and not the proper books. Secondly, it was realized
the federal authorities. Secondly, he believed that the responsibilities should be dispersed
that whatever he did was for the bank and not and one person should not be given all the
for his personal accounts. Therefore he be- responsibilities for trading and maintaining
lieved that the bank was harsh on him when the books, as this gives the trader the change
it handed him over to the federal authorities to manipulate the records, and that it what
for civil action. [6] happened when Mr. Iguchi was unsuccessful
in making profits: he manipulated and tried
3. Failure of operational risk to turn unauthorized dealings into authorized
dealings.[9]
Daiwa Bank, being one of the biggest This is the same mistake that Barings
banks at the time, could be blamed for not Bank made and therefore faced heavy losses
having a proper management system in place which eventually resulted in its collapse.
that would uncover its exposure to potentially Both banks would have escaped from
heavy losses. incurring heavy losses if they had separated
Lack of a proper risk management system the trading and support functions. It can be
created problems for the Daiwa Bank and it said that both banks failed to follow the
had to leave one of the worlds biggest fundamental risk management practice that
banking markets. Greenspan, the chairman of separates the two functions of support and
the Federal Reserve Board (FED) on his visit trade. [4]
to Japan in 1996, suggested integrating the Operational risk in an organization can be
banks computerized internal risk controlled through properly managed
management system with that of the FED and procedures and records and basic internal
other regulators. accounting controls. Secondly, it is important
This would make the regulators assess a to have an internal audit function but it is
banks position more quickly and they would more important that it is independent from
not have to wait until the losses had been the trading and revenue side of the business.
incurred. It can be said that this approach is Also the rules and policies should be
more proactive than reactive for banking clearly stated to all of the employees and the
supervision, since it will improve the in- organization or the bank should make sure
house and at the same time supervisory that the Chinese walls are built. It is,
oversight. But in the end it is bank therefore, important to have different
managements responsibility to perform departments of a bank in different areas.
leadership and oversight roles, because Also, the files and computers system should
regulators cannot inspect each and every be separated from one department to another.
transaction or activity of the bank. [12] In this way the disclosure of information can
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be minimized and any violations made can be defined operating procedures can reduce the
noticed. [5] risk of operational failure.
In addition to heaving sound internal
4. Awareness for the operational risk controls, internal auditors are also important
in identifying the flaws in the system. They
Awareness for the operational risk among can identify the potential problems that can
the higher management, the board of emerge; hence it is the banks responsibility
directors, management committees, and audit to be proactive rather than reactive. These are
committees has increased over the period of some of the methods that show how
time. operational risk can be controlled.
However, still what has been seen in Consequences it is important for a bank to
many banks is that there is not any particular assign particular tasks and to form a separate
manager or chief information officer or department and make it an ongoing process
financial controller for managing the to asses and control operational risk along-
organization wide operation risk, although side other risks. [1]
some of the banks have realized the
importance of this and have an internal 7. Conclusion
monitor or watch dog such as a risk
manager. It is therefore important for all From the above-mentioned example of
banks to measure and report the operational Daiwa Bank, it can be seen that it is not only
risk an a regulat basis. In measuring the incurred financial losses but also loss of
operational risk, many banks have reputation, which has made it hard for the
experienced some problems.Some of these bank to restore its confidence. Therefore,
problems are related to the availability of there are many lessons that can be learnt
date and reasons for bank loses. [10] from such mistakes, some of these are
mentioned below.
5. Risk monitoring When there is an immense pressure of
competition in the market banks try to cut
Many banks have begun to monitor risks corners, so it is important for banks to have
through monitoring systems. Also, many effective internal controls and reliable books
banks monitor their operational performance and records.
through their volume, turnover, settlement With the invention of new technologies
fail, delays and errors. Some of the banks and new products and services this is a world
have now begun to monitor their operational of changing risks, so with such changing
risk through an on-line monitoring system. It risks changing supervisory strategies are
is important for the banks to invest in the needed. If supervision does not go hand then
management information system in order to some sort of disaster in the future can be
keep in line with the new exposures arising predicted.
from banks new products and services. [2] Similarly, regulators need to supplement
regular exams with more frequent field visit
6. Control of operational risk when institutions enter higher-risk activities.
This will make banks keep their records in
Many banks use an internal audit process good shape and prevent them from moving
and internal controls in order to control records from one office to another.
operational risk. Some banks consider Potential accounting distortions should
insurance as an important means of also be recognized and minimized. Because
mitigation for some form of operational risk. regulators in order to prevent bank failures
Also, some banks have begun to make rely on accounting and economic information
provisions against operational risk, similar to it is important to make a strategy to deal with
what they make against loan loss. such types of distortions.
Above all, internal controls are considered Also from the banks point of view side, it
to be the major tools against operational risk; is important not to give one person all the
as mentioned above segregation of duties, responsibilities because it will be easier for
clear management-reporting lines and clearly that person to manipulate the records in order
to save him/herself.
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Banks should not rely on one sector for NBER. Working Paper 14656.
investment as this may create a bubble and
when the bubble bursts it makes it hard for
banks to recover money, and loans turn into
bad debts and eventually the banks find it
hard to meet up to the demands of its
depositors.
Capital ratios also play an important role
in bank failures, so the regulators and the
bank management should try to keep these
ratios according to the set guidelines.
Banks should also make loan loss
provisions and risk provisions; this will help
banks not to suffer from a sudden big loss at
one time and prevent them from failure or
collapse.
8. Reference
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Roman Angela
Alexandru Ioan Cuza University of Iasi
aboariu@uaic.ro
Bilan Irina
Alexandru Ioan Cuza University of Iasi
irina.bilan@uaic.ro
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portfolio for a panel of 29 commercial banks, bank-specific ones influence the quality of
which operate in two new EU Member States bank loans, but the impact of the bank-specific
(namely Bulgaria and Romania), during 2003- factors is weaker. Also, the manifestation of
2012. some tight connections between the banking
The remainder of this study is structured as sector and the macroeconomic environment is
follows: section 2 is a literature review; confirmed.
section 3 describes the data and presents the Messai and Jouini [18] analyze the main
methodology; section 4 presents and discusses macroeconomic and bank-specific
the empirical results. The paper ends with determinants of non-performing loans for a
conclusions. panel of banks from Greece, Italy and Spain,
for the period 2004-2008. The authors find
2. Literature review that the rate of non-performing loans is
significantly influenced by the growth rate of
The overview of previous studies points to GDP, the unemployment rate, the real interest
a high interest of researchers for the analysis rate, the return on assets and the loan loss
of the determinants of non-performing loans reserves.
dynamics, either for one single country [1], Makri, Tsagkanos and Bellas [19] identify
[2], [3], [4], [5], [6] or for a panel of countries the main macro and microeconomic factors
[7], [8], [9], [10], [11], [12], [13], [14], [15], that influence the rate of non-performing
[16], [17], [18], [19], [20], [21], [22]. loans in the banking sectors from 14 countries
From the perspective of the European of the Euro zone. The results of their study
countries and, especially, of the two countries show that the quality of bank loans is
included into our analysis (Bulgaria and significantly influenced by both some bank-
Romania), the study performed by Festic' et al. specific factors (the rate of non-performing
[9] raises interest, empirically investigating loans of the previous year, the capital
the impact of some macroeconomic and bank- adequacy ratio and the return on equity), and
specific variables on the evolution of non- some macroeconomic factors (respectively
performing loans rate in five of the New EU public debt, GDP growth and unemployment
Member States. The results of the study show rates).
that especially the macroeconomic Based on the above mentioned studies, it is
environment from the analyzed countries has worth noting that the evolution of the bank
got a significant impact upon the evolution of loans quality may be influenced by both
non-performing loans. macroeconomic factors (like GDP growth,
The empirical analysis of the determinants unemployment, inflation, exchange rate,
of non-performing loans performed by interest rate, credit growth) and bank-specific
Kastrati [10] on fifteen countries in transition factors (as capital adequacy, profitability,
shows that the growth rate of GDP, the bank size and ownership).
inflation rate and competition have an Our study contributes to the development
important impact upon the dynamics of non- of existing literature by providing empirical
performing loans. evidence on the main macroeconomic and
Analyzing the effects of some bank-specific variables that influence the bank
macroeconomic and financial indicators upon loans quality in two EU countries, namely
the dynamics of non-performing loans in nine Bulgaria and Romania, during 2003-2012.
countries of Central, Eastern and Southeastern
Europe, Jakubk and Reininger [15] highlights 3. Data and methodology
that economic growth, credit growth and
exchange rate volatility have a significant Our empirical study is conducted for a
impact upon the quality of bank loans. panel of 29 commercial banks from two new
Klein [17] empirically assesses, for a panel EU Member States (15 banks from Romania
of 16 countries from Central, Eastern and and 14 from Bulgaria) and for a period of 10
Southeastern Europe (CESEE), the years (2003-2012). The analysis uses annual
determinants of non-performing loans and the data coming from Bankscope Database and
feedback effects between the banking sector the annual reports of the commercial banks
and the real economy. The results of his study (for the non-performing loans rate and the
show that both macroeconomic factors and bank-specific determinants) and Eurostat and
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World Banks Global Financial Development this explanatory variable, two other groups of
Databases (for the macroeconomic independent variables were included into the
determinants). model, namely four bank-level variables and
The reasons behind the selection of four country-specific (macroeconomic)
countries to be included into our analysis are variables. A more detailed situation of the
that they have similar economies, the banking variables and their expected impact is
sectors present some common characteristics reflected in table 1.
and in both countries a significant
deterioration of bank loans quality was Table 1. Description of the variables and
recorded, starting with 2009. their expected effect
The model is a fixed-effects linear Variable Description Expected
regression model, linking the ratio of non- effect*
performing loans to total loans to key bank- Dependent variable
specific and macroeconomic determinants of NPL The ratio of non-
the quality of bank loans portfolio, as depicted performing loans to
by equation (1). total bank loans (%)
Independent variables/ bank-specific
, = + ,1 + ,, + EA The equity to asset -/+
,, + + , (1) ratio (%) - to measure
the capital adequacy of
where: i refers to the commercial bank; t the bank
refers to the year; NPL is the ratio of non- ROAA The return on average -
performing loans to total loans; is the total assets of the bank
constant term; represents a vector of bank- (%)
specific factors with impact on the quality of NIIR The ratio of non- -
bank loans portfolio; represents a vector of interest income to total
macroeconomic determinants of non- gross revenues (%)
performing loans; , and are the to measure the income
coefficients of the independent variables; diversification of the
bank
are the bank specific intercepts; , are the
TA The natural logarithm -/+
observation specific errors.
of the accounting value
Given the quite large number of
of the total assets of a
commercial banks included into our sample
bank to measure the
(29), the fixed effects estimation technique
banks size
was selected, removing the effects of time-
invariant characteristics specific to each bank. Independent variables/ macroeconomic
The results of the Hausman test (p-value = GDP Annual real GDP -
0.005) confirmed our choice, proving that the growth rate (%)
fixed effects estimator is to be preferred to UNEMP Harmonized +
random effects. unemployment rates
Huber/White (sandwich) estimators were (%)
used to control for heteroskedasticity, as the INFL Inflation rate (%) -/+
results of the modified Wald test for DEBT General government +
groupwise heteroskedasticity in fixed effects consolidated gross
regression model rejected the null hypothesis debt (% of GDP)
of homoscedasticity. *according to relevant empirical studies
The dependent variable, expressing the Source: the authors
quality of bank loans portfolio, is represented
by the ratio of non-performing bank loans (as The descriptive statistics of the variables
loans more than 90 days past due) to total included into our analysis is presented in table
loans. As non-performing loans generally are 2.
highly persistent over time, a lagged value of
the dependent variable was introduced into the Table 2. Descriptive statistics of the
right hand-side of the equation. Together with dependent and independent variables
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Country/ Mean Std. dev. Min Max [18], Makri et al. [19], Erdi and Abazi [20],
variable Chaibi and Ftiti [22]. Given that banks
Bulgaria profitability is reducing, they have a tendency
NPL 7.14 9.12 0.05 58.86 to involve in high risk lending activities,
EA 13.06 9.42 5.15 68.93 which may lead to the deterioration of bank
ROAA 1.45 1.09 -1.18 4.41 loans quality.
NIIR 29.28 11.91 4.28 69.78
TA 7.47 1.18 4.28 9.45 Table 3. Empirical results
GDP 3.50 3.88 -5.50 6.70 Model Model Model
(1) (2) (3)
UNEMP 9.81 2.56 5.60 13.70
L.NPL 0.810*** 0.873*** 0.771***
INFL 5.27 3.01 2.30 12.00 (10.06) (12.03) (8.42)
DEBT 22.17 9.76 13.3 43.50 EA 0.116 0.0423
Romania (1.26) (0.60)
NPL 8.50 9.10 0.02 45.45 ROAA -1.279*** -0.910***
EA 11.38 4.15 4.22 33.98 (-3.65) (-2.97)
ROAA 0.66 2.05 -10.94 3.98 NIIR -0.0368 -0.0298
(-0.71) (-0.74)
NIIR 36.71 14.44 -4.00 70.81
TA 1.742*** 1.793**
TA 8.73 1.36 4.67 11.25 (3.73) (2.72)
GDP 3.46 4.52 -6.60 8.50 GDP -0.471*** -0.320***
UNEMP 6.95 0.65 5.60 8.00 (-5.47) (-4.60)
INFL 7.66 3.41 3.40 15.30 UNEMP 0.392* 0.625**
DEBT 21.84 8.73 12.30 37.30 (1.75) (2.46)
Source: authors calculations INFL 0.0403 0.241**
(0.48) (2.35)
DEBT 0.0341 0.0567
4. Empirical results and discussions (0.57) (0.87)
_cons -10.55** -0.266 -17.11**
The results of our estimates are presented (-2.38) (-0.23) (-2.27)
in table 3. In the first two models only bank- N 261 261 261
specific determinants (model 1) and R 0.7765 0.7817 0.8015
macroeconomic determinants (model 2) have Notes: heteroskedasticity-robust standard errors; t
been successively included, while model 3 statistics between parentheses; * denotes
includes both types of variables. significance at the 10% level, ** at the 5% level,
The coefficient of the ratio of equity to *** at the 1% level
total asset (EA) is found to be positive (models Source: authors calculations
1&3), in line with our expectations, but it is
not statistically significant, in agreement with Regarding the variable income
the result found by Erdi and Abazi [20]. diversification of the bank (NIIR), our results
Accordingly to the above mentioned empirical indicate a negative relationship, but
studies, the banks with a high level of capital statistically insignificant (models 1&3), in
adequacy tend to involve in riskier activities line with our expectations and in agreement
and, thus, a deterioration of bank loans quality with the results found by Chaibi and Ftiti [22].
may be detected. A possible explanation for Given that banks want to diversify their
the insignificant impact of this variable may activities in order to increase non-traditional
be linked to the macro-prudential measures income, they can involve in high risk
adopted by the central banks of the two activities, which may lead to the deterioration
analyzed countries in order to ensure financial of bank loans quality. Our results show an
stability. insignificant impact of the NIIR variable,
The return on average total assets of the which may be due, in the case of the banks
bank (ROAA) has an extremely significant from our panel, to the reduced share of non-
impact upon the ratio of non-performing traditional income.
loans. The coefficient is negative (models Regarding the bank size variable (TA), our
1&3), in line with our expectations and in results show, in line with our expectations, a
agreement with the results obtained by Fofack positive association with the rate of the non-
[7], Boudriga et al. [8], Messai and Jouini performing loans, and the coefficient is
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statistically significant (models 1&3), in results show a positive impact on the ratio of
agreement with the result obtained by Chaibi non-performing loans (models 2&3), in line
and Ftiti [22] and Louzis et al. [4]. The with our expectations and in agreement with
explanation stems from the fact that big banks the results obtained by Castro [14] and Makri
tend to involve in riskier lending activities et al. [19]. When public debt rises, a decrease
and, thus, may register a deterioration of bank of the investors trust and an increase of the
loans quality. interest rate can be registered, which decrease
The annual real GDP growth rate (gdp) debtors ability to repay their debts and trigger
represents a key determinant of bank loans the deterioration of the quality of bank loans
portfolio quality, respectively of the dynamics portfolio. However, the coefficient is not
of non-performing loans rate. Our empirical statistically significant, as compensatory
results show a statistically significant and very effects may occur when debt rises as the effect
important negative coefficient (models 2&3), of increasing budget deficits, resulting from
according to our expectations and in either lower taxes or higher public
agreement with the results obtained by Louzis expenditures (both with positive impact on
et al. [4], Otaevi, [5], Castro [14], Jakubk borrowers ability to repay their debts).
and Reininger [15], Kasselaki and Tagkalakis
[16], Klein [17], Messai and Jouini [18], 5. Conclusions
Makri et al. [19], Erdi and Abazi [20],
karica [21], Chaibi and Ftiti [22]. When Our study aimed to investigate the
economic activity worsens, the income of the determinants of the loans portfolio quality
borrowers is reduced, which triggers a higher (expressed by the rate of non-performing
non-performing loans ratio. loans) for a panel of 29 commercial banks
In tight connection with the GDP growth from Bulgaria and Romania, during 2003-
rate, unemployment rate (unemp) also has an 2012.
important impact upon the quality of the bank The results of the empirical analysis
loans. The increase of the unemployment rate showed that both macroeconomic and bank-
triggers the decrease of the incomes, which specific factors influence the quality of bank
could influence the debtors ability to repay loans. Thus, GDP growth rate and
their debts and have a negative impact on the unemployment and inflation rates are the main
quality of bank loans portfolios. Our results macroeconomic factors that influence the
show a statistically significant and positive quality of bank loans, which highlights the
coefficient (models 2&3), as it was expected, major importance that the macroeconomic
but also in agreement with the results found by environment has for the soundness of the
Klein [17], Castro [14], Messai and Jouini banking sector. Regarding the bank-specific
[18], Makri et al. [19], karica [21], Chaibi factors, our analysis showed a significant
and Ftiti [22]. impact of the return on average total assets of
Regarding the inflation rate (INFL), a the bank and of the bank size variables.
positive (models 2&3) and significant (model Also, our empirical analysis proved that
3) impact on the ratio of non-performing loans the capital adequacy, income diversification
is found. Such a relationship may be explained and government consolidated gross debt as
by the fact that when the inflation rate percentage of GDP are correlated with the rate
increases, the real incomes of borrowers of non-performing loans, but these variables
decrease, leading to the deterioration of the are not significant determinants of the bank
bank loans portfolio quality. Our results, loans portfolio quality in the banking sectors
reflected in model 1, show that the impact of of Bulgaria and Romania.
the inflation rate is not relevant, in agreement As future research direction, we intend to
with the analysis performed by Castro [14], extend our analysis by also taking into
which shows that the increase of the inflation consideration other New EU Member States.
rate leads to both the decrease of the real
incomes and the decrease of the real value of 6. Acknowledgement
outstanding loans. Thus, the overall impact of
the inflation may not be significant. With the support of the Lifelong Learning
For the variable government consolidated Program of the European Union through the
gross debt as percentage of GDP (DEBT), our Jean Monnet Module Euro and the Banking
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Integration Process in an Enlarged EU - 2012- [12] Beck, R., Jakubik, P., Piloiu, A., Non-
2911. This publication reflects the views performing loans. What matters in addition to
only of the authors, and the Commission the economic cycle? , ECB Working Paper
cannot be held responsible for any use which Series, no. 1515, 2013.
[13] De Bock, R., Demyanets, A., Bank Asset
may be made of the information contained
Quality in Emerging Markets: Determinants
therein. and Spillovers, IMF Working Paper, 71, 2012.
[14] Castro, V., Macroeconomic determinants of
7. References the credit risk in the banking system: The case
of the GIPSI, Economic Modelling, vol. 31,
[1] Salas, V., Saurina, J., Credit risk in two 2013, pp. 672683.
institutional regimes: Spanish commercial and [15] Jakubk, P., Reininger, T., Determinants of
savings banks, Journal of Financial Services Nonperforming Loans in Central, Eastern and
Research, vol. 22, issue 3, 2002, pp. 203224. Southeastern Europe, Focus on European
[2] Babouek, I., Janar, M., A VAR analysis of Economic Integration, Q3, 2013,
the effects to macroeconomic shocks to the Oesterreichische Nationalbank (OeNB).
quality of the aggregate loan portfolio of the [16] Kasselaki, M.Th., Tagkalakis, A.O.,
Czech banking sector, Working paper series, Financial soundness indicators and financial
no. 1, 2005, Czech National Bank. crisis episodes, Working paper 158, 2013,
[3] Zeman, J., Jura, P., Macro stress testing of Bank of Greece.
the Slovak banking sector, Working Paper, [17] Klein, N., Non-Performing Loans in CESEE:
No. 1/2008, Slovak National Bank, Bratislava. Determinants and Impact on Macroeconomic
[4] Louzis, D.P., Vouldis, A.T., Metaxas, V.L., Performance, IMF Working Paper no. 72,
Macroeconomic and bank-specific 2013.
determinants of nonperforming loans in [18] Messai, A.S., Jouini, F., Micro and Macro
Greece: a comparative study of mortgage, Determinants of Non-performing Loans,
business and consumer loan portfolios, International Journal of Economics and
Working paper, September, 2010, Bank of Financial Issues, vol. 3, issue 4, 2013, pp. 852-
Greece. 860.
[5] Otaevi, D., Macroeconomic determinants [19] Makri, V., Tsagkanos, A., and Bellas, A.,
of the quality of banks' loan portfolio in Determinants of Non-Performing Loans: The
Serbia, Working Papers, November, 2013, Case of Eurozone, Panoeconomicus, vol. 61,
Ntional Bank of Serbia. issue 2, 2014, pp. 193-206.
[6] Caporale, G.M., Di Colli, S., Lopez, J.S., [20] Erdi, D., Abazi, E., The Determinants of
Bank lending procyclicality and credit NPLs in Emerging Europe, 2000-2011,
quality during financial crises, Economic Journal of Economics and Political Economy,
Modelling, vol. 43, 2014, pp. 142157. vol. 1, issue 2, 2014, pp. 112-125.
[7] Fofack, H., Nonperforming Loans in Sub- [21] karica, B., Determinants of non-performing
Saharan Africa: Causal Analysis and loans in Central and Eastern European
Macroeconomic Implications, World Bank countries, Financial theory and practice, vol.
Policy Research Working Paper No. 3769, 38, issue 1, 2014, pp. 37-59.
2005. [22] Chaibi, H., Ftiti, Z., Credit risk determinants:
[8] Boudriga, A., Taktak, N.B., Jellouli, S., Bank Evidence from a cross-country study,
Specific, Business and Institutional Research in International Business and
Environment Determinants of Nonperforming Finance, vol. 33, 2015, pp. 116.
Loans: Evidence from MENA Countries,
Economic Research Forum, Working Paper
547, 2009.
[9] Festic', M., Kavkler, A., and Repina, S., The
macroeconomic sources of systemic risk in the
banking sectors of five new EU member
states, Journal of Banking & Finance, vol.
35, 2011, pp. 310322.
[10] Kastrati, A., The Determinants of Non-
Performing Loans in Transition Countries,
Financial Stability Report, June, 2010, Central
Bank of the Repubic of Kosovo.
[11] Nkusu, M., Nonperforming Loans and
Macrofinancial Vulnerabilities in Advanced
Economies, IMF Working Paper, 161, 2011.
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progress. In 1965, the Britain bank Barclays was for motor insurance (a slight drop of
created the life insurance division Barclays 0.5% from 2012), 96bn for health insurance
Life. which experienced a 12% increase and over
52bn for property insurance claims, which
2. European insurance in the world represents a 5% growth compared to the year
before.
With a 35% share of the global market,
the European insurance industry is the Fig.3 European benefits and claims paid
largest in the world, followed by North by country in 2013
America (30%) and Asia (28%) [4].
Source:
http://www.insuranceeurope.eu/uploads/Modules/Publ
ications/european-insurance---key-facts-2014.pdf
Source: Swiss Re, Sigma No.3/2014: Woorld
insurance in 2013
At the present time, Europe represents the
Total European gross written premiums highest level of penetration of bancassurance
increased by 2.7% in 2013 amounting to over segment. The more and more important role
1 119bn. Life premiums grew by 4.7% to of bancassurance is also underlined by the
reach 667bn. Property, casualty (P&C) and fact that over 70% of premium incomes
accident premiums marginally reduced by realized by life policies insurers from Spain
0.1% amounting to 334bn, while health have provided from the bancassurance sector.
insurance premiums grew by 4.9% to 118bn In Belgium and France, this sector has a
last year. weight of 56%, namely 62% of the total
premiums registered from insurance internal
Fig.2 European insurance premiums by market (SCOR, 2005) [5]. The bancassurance
country in 2013 has not been succeeded as expected in
countries as Great Britain, where the life
insurance market is dominated by brokers or
in Germany, where the role of distribution
channels is still predominant (approx. 70% of
registered premiums).
Source:
http://www.insuranceeurope.eu/uploads/Modules/Publ
ications/european-insurance---key-facts-2014.pdf
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(% of GDP)
Source:
http://www.insuranceeurope.eu/uploads/Modules/Publ Source: personal overwork of the author
ications/european-insurance---key-facts-2014.pdf
a) Distribution protocols:
In Central and Eastern Europe, in a.1) the distribution agreement is a formal
countries as Russia, Romania, Hungary or or informal arrangement by which a bank
Poland, the approach is a relatively difficult recommends clients to an insurer. The
one as the majority of regional companies agreement is characterized by only one
are still more focused on commissions and product or a limited relation. There are
immediate earnings than on long-term known two different forms of agreements:
relationship with their clients but with an - non-exclusive distribution agreement,
ascendant tendency. where the bank has practically the role of a
In North America, the penetration rate of broker, selling products to its associated
bancassurance is lower than in United States insurance company, together with the
and Canada as a consequence of more products of other insurance companies;
restrictive settlements of the domain. In Latin - limited distribution agreement, where the
America, the foreign insurers have based on insurance company supplies one or many
the existent local banking network for products or types of exclusive products for
partnerships and even for buying the bank. the associated credit institution; both of them
This transfer of property is certainly one of could have other contracts with different
the main reasons that leaded to partners only for products out of those
bancassurance success in Latin America. provided by the bilateral agreement;
Therefore, now this is an area where a.2) the exclusive distribution agreement
bancassurance is going to become a represents a formal and exclusive relation in
permanent distribution system despite the which the bank sells only the insurance
statute of developing market, the products of its partner by its own channels;
differences from one country to another and so the credit institution acts as an assigned
the domination of traditional distribution representative of the insurer.
networks (brokers and agents),. a.3) the strategic partnership appears when
between the two parts is a common
3. Types of possible connections between shareholding and an exclusivity report of
banking and insurance sectors. relations between banks and insurer.
b) The Joint Venture systems involve the
Now the connection [6] between the two creation of a new company by an insurer and
sectors could be found under the form of a bank. Both parts have a well-defined
following models: (Fig.6): common economic interest while the
structure of such a business, the capital
participations, the utilized commercialization
funds and the business longevity could differ
considerably.
c) The integrated operating systems,
known under the syntagm M&A (fusions and
acquisitions), are constituted by transactions
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deposits or could be specified a minimum bought separately. These products are sold
sum of loaner sold. The level of the granted over the counter market by banking
coverage is determined by factors as the price employees, so their complexity degree has
and the results of the insurance request necessary to be reduced.
assessment.
Such a product is the term insurance 5. Advantages of Bancassurance activity
policy with the value of the premium that is
changing every year. Fig.7 Advantages of Bancassurance
In this case, the premiums are paid by the
bank.
The value of the insured sum is generally
multiple of the loaners sold value. In case of
credit holders death, this sold of the deposit
is credited with the value of the
reimbursement granted by the insurer. There
are obviously imposed reasonable limits
referring to the maximum age and insured
sums.
b. Saving plans
This type of policy could be offered for
certain types of deposits that involve
successive crediting of deposit account in Source: personal overwork of the author
order to reach an objective under the form
of an amount of money- when the due date of a) The increase of clients number by the
the deposit will be. In case of depositor death access to a market created by the database of
or permanent invalidity, the difference banking clients. Demographically, the clients
between the objective sum and the of partnership banks could be different of
creditor sold account is paid to the depositor those of insurance society from age,
or its beneficiary, additional to the value of consuming habits, socio-professional
creditor sold. In the cases where the sums put categories. Geographically, banks could have
into account are not fixed, it is preferable that a distribution network that covers the areas
the value of the covering offered by policy to where the insurance societies have not access
be multiple of the sold account medium value to.
during the previous 6 or 12 months, so the b) New business opportunities due to the
anti-selection problem would be solved. variety of afferent services and products
However, it is possible to increase the range. In this sense, the main purpose of the
value for a depositor anytime and to increase life insurance companies is to increase their
accordingly the value of the insured sum turnover both by old clients and based on the
without additional medical assessments. services offered to their new clients.
When there are imposed reasonable limits c) Economies of scales. The insurance
referring to the maximum age or maximum companies, through the combination of
insured sum, this product could offer classic activities of life insurances with
attractive profit margins for the societies that bancassurance type services, lead to a
practice life insurance. significant scale economy concerning the
c. Pure investment products administrative costs.
These products have no insurance So, the insuring has profitability increases
elements so they have no risk. Traditionally, and, in the same time, offers the same
these types of products were transacted by products with more reduced insurance
banks, but in some countries, they benefit of premiums, increasing so the products
a favourable fiscal treatment when they are competitiveness of the respective insuring on
offered by an insurance society. market
3. Standardized packages of products d) Both for the bank and insurer, the
These products are usually group products implementation of some bancassurance
that combine different insurable risks and services represents a chance to upgrade the
cost the client less than in case they would be operations. Each partner deals with a
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Abstract systems.
In order to produce high quality
The purpose followed in this article is to information, management accounting should
present and to debate about the importance be adapted to the enterprise and to its
of managerial accounting for enterprise environment. It has the role of ensuring a fair
management. We find it appropriate to study representation and an appropriate modeling
this aspect, because managerial accounting of the use of resources (material, financial,
has a major influence in the economic life of human). The submitted information must be
enterprises. Managerial accounting is reliable and relevant and reflect all
considered to be one of the key elements of transactions that occur both within the
the management, as it provides much of the organization as and its commercial relations
information needed both for effective with third parties.
conducting of current activities, as well for
future decision making. So, we can affirm 2. The enterprise a venue for the
that it has the role of assuring the relations managerial accounting
between the developed economic activities
and the decisional factors. Before presenting the importance and role
of management accounting, we consider it
Keywords: Managerial accounting, cost, appropriate to mention some aspects
enterprise, management. referring to enterprise - as the place of
J.E.L. classification: M40, M41 application and deployment for it.
The company is defined as a complex
system consisting of many elements in
1. Introduction interaction (products, facilities, personnel),
crossed by various streams (informational,
The place of the management accounting material, financial, etc.) based on which
within the economic entity's information occur transformations which are aimed at
system is determined by its ability to provide providing profitable services and goods for
data referring to the internal processes that the market. [1]
take place exclusively under the authority of At the same time, the economic entity can
the company. Economic and financial be seen as a system in which, on one hand
operations carried out, derive from the the management ensures the achieving and
implementation of various business developing of the previously set objectives,
strategies, against the background of a strong and on the other hand the accounting
and diverse competitive environment. provides the information needed for
Moreover, depending on the activity profile, redacting the dashboard.
internal organizational structure can take In the following figure the enterprise is
different forms. presented as a physical system situated in
Due to the diversity in what regards the relation to the external environment (inputs
strategies applied, the technologies used, the and outputs), that is controlled and
organizational structure and the external administered by management.
environment, in business practice are
encountered many management accounting
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ENTERPRISE ENVIRONMENT
Other enterprises
Public collectivities
Financial institutions
Labor market
Press
Etc.
Goods
Services
Capital
Information
Inputs Outputs
Persons
Documents
Etc.
Action Essential
variables Physical system variables
Management Of enterprise
Retroaction ( feedback-)
Source: Adapted after Apothloz, B., Stettler, A., Dousse, V., Matriser linformation comptable,
Vol. 1, Presses polytechniques et universitaires romandes, Lausanne, 2007, pp. 4
The inputs and outputs reflect the management accounting has become one of
relationships, materials or information, the basic tools of the management team,
maintained with the environment and which regardless the degree of delegation of
characterize the operation of the system. responsibilities.
Action variables are represented by the
various leading means available to managers, 3. Managerial accounting and enterprise
as well as by the policies that they may management
apply. Essential variables are expressed
according to certain criteria (cost, efficiency, Although initially management
effectiveness, etc.) and consist in a accounting was focused on the costs
predetermined set of information considered calculating, lately it is perceived as a system
to be indicators of the system functioning. destined to influence the behavior of the
Due to the diversification of the volume "actors" in the enterprise. At the same time it
of internal information and of the use of them serves for breaking down the activity of
in solving many problems facing enterprises, enterprises to a more analytical level as
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MANAGERIAL
ACCOUNTING
Database
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4. Conclusions
5. References
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Trandafir Adina
Spiru HaretUniversity, Faculty of Financial and Accounting Management
trandafir.adina@yahoo.co.uk
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analyse and confirmation of the hypothesis. Chart 1. Evolution of the TTR, the number
of payments and the number of the hours of
2. Direct Taxation in Romania 2006-2015 compliance in Romania, 2006-2015
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Based on data from Table no.2, the Source: Own calculation of the data available on
regression equation between fiscal policy www.insse.ro and in PWCooper Reports: Paying
measures and GDP is of the form: Taxes 2006-2015
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obviously the negative one - coefficients of authorities and the lack of consistency and
the regression equation indicating that a predictability of the tax system and tax rules
decrease with 1% in labour tax rate would enforcement. Although Romania has unified
lead to an increase of 3.70 billion lei of gross all tax regulations since 2004, introducing the
capital formation. Tax Code in 2004, the frequent legislative
changes make it difficult business
4. Conclusions environment and beyond.
Another important aspect in addressing
This element of fiscal policy, the tax rate, any fiscal policy is providing by tax
has a major impact on both the national incentives and how they influence business
economy and the activity carried out by an activity.
economic entity. Romania, in recent years
has taken measures in this direction, reducing 5. Acknowledgement
both the total tax rate, but especially the taxes
on labour. This paper has been financially supported
This paper aims to analyze the impact of within the project entitled Horizon 2020 -
fiscal policy measures on private business in Doctoral and Postdoctoral Studies:
Romania. To capture in an econometric Promoting the National Interest through
analysis of fiscal policy and macroeconomic Excellence, Competitiveness and
dimension, respectively the business Responsibility in the Field of Romanian
environment, were chosen as variables: the Fundamental and Applied Economic
total tax rate to highlight tax policy in direct Research, contract number
taxation, gross domestic product and gross POSDRU/159/1.5/S/140106. This project is
capital formation to capture business size. co-financed by European Social Fund
Total tax rate (TTR) is a variable that through Sectoral Operational Programme for
captures all direct taxes levied in Romania Human Resources Development 2007-2013.
from an economic entity and was chosen also Investing in people!
because it had a downward trend in the
period under review due to criticism brought 6. References
to Romanian fiscal policy on international
plan in this point of view (see PWC Reports, [1] PWC. 2006. Paying Taxes 2006: The Global
Paying Taxes 2006 to 2015). Picture, [pdf] disponibil pe
For this reason to surprised if, indeed, the http://www.pwc.com/gx/en/ paying-taxes
/assets/pwc-paying-taxes-2006.pdf
tax measure to reduce the total tax rate has an
[2] PWC. 2007. Paying Taxes 2007: The Global
effect on business environment, this article Picture, [pdf] disponibil pe
addresses through an empirical analysis, the http://www.pwc.com/gx/en/ paying-taxes
components of total tax rate impact on the /assets/pwc-paying-taxes-2007.pdf
GDP and the gross capital formation. [3] PWC 2008 Paying Taxes 2008: The Global
The empirical analysis results are as Picture, [pdf] disponibil pe
expected, the corelation between total tax http://www.pwc.com/gx/en/ paying-taxes
rate (independent variable) and GDP and /assets/pwc-paying-taxes-2008.pdf
FBC (dependent variables) is negative - [4] PWC 2009, Paying Taxes 2009: The Global
reducing the tax rate (profit tax rate, labour Picture, [pdf] disponibil pe
http://www.pwc.com/gx/en/ paying-taxes
tax rate etc) has increased GDP and gross
/assets/pwc-paying-taxes-2009.pdf
capital formation in the period, and tax [5] PWC. 2010. Paying Taxes 2010: The Global
measure in the field of direct taxation Picture, [pdf] disponibil pe
adopted is an auspicious for local businesses http://www.pwc.com/gx/en/ paying-taxes
and to attract capital on Romanian market. /assets/pwc-paying-taxes-2010.pdf
Other deficiencies of the tax system in our [6] PWC. 2011. Paying Taxes 2011: The Global
country, which put pressure on business Picture, [pdf] disponibil pe
environment relates primarily to: slow http://www.pwc.com/gx/en/ paying-taxes
recovery of tax claims, the fixed deadlines /assets/pwc-paying-taxes-2011.pdf
for payment of taxes, the lack of consistency [7] PWC. 2012. Paying Taxes 2012: The Global
Picture, [pdf] disponibil pe
and transparency in the application and his
interpretation of tax provisions by the tax
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http://www.pwc.com/gx/en/ paying-taxes
/assets/pwc-paying-taxes-2012.pdf
[8] PWC. 2013. Paying Taxes 2013: The Global
Picture, [pdf] disponibil pe
http://www.pwc.com/gx/en/ paying-taxes
/assets/pwc-paying-taxes-2013.pdf
[9] PWC. 2014. Paying Taxes 2014: The Global
Picture, [pdf] disponibil pe
http://www.pwc.com/gx/en/ paying-taxes
/assets/pwc-paying-taxes-2014.pdf
[10] PWC. 2015. Paying Taxes 2015: The Global
Picture, [pdf] disponibil pe
http://www.pwc.com/gx/en/paying-taxes/pdf/
pwc-paying-taxes-2015-high-resolution.pdf
[11] National Institute of Statistic. Statistic
Annuar. Available at http://www.insse.ro/
cms/ro/content/anuarul-statistic- [accessed
on 27 februay 2015]
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Trandafir Raluca-Andreea
Ovidius University of Constanta, Romania,
Faculty of Law and Administrative Sciences
Email: trandafirraluca@hotmail.com
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demonstrate their power when they find Practicing a high tariff (price), a strategy
competing companies that offer more that is often used in summer, especially in the
favorable selling prices. coastal zone. Practicing this high price in
high season is due to the seasonality of the
3. The strategy of domination by costs tourism demand, a large part of the costs of
within the hotel company the operating activities being included in the
prices from the peak season.
Applying the strategy of domination by
costs obliges companies to find those areas Table 1. Turnover ( CA) to cover the
that are potential sources of savings or of cost expenditure from operating activities
reduction. Because of a large number of thousands euros
factors and of their complexity characterizing Indicators n n+1 n+2 n+3
the hospitality industry in Romania, there are
CA 1025 1205 1221 869
practiced numerous pricing strategies. Due to
this market demand characteristics, its Operating
expenses
seasonality activity, the functioning and related to 789 845 1016 787
organization of the time for the holidays and CA
the market segmentation, we conclude that CA-Ch
236 359 205 82
all these factors determine a price variation
differentiation strategy. Total
The analysis undertaken in three hotel number of 11346 11607 12897 10057
tourist days
companies reveals the existence of practices Average
carried out at the level of the pricing policy. revenue per 90.32 103.75 94.69 86.45
Price developments in tourism depend on tourist day
economic- social, political, motivational, Variation in
geographic factors and, especially, on the the average
revenue per 20.76 30.96 15.92 8.17
heterogeneity of the tourism product. tourist day
The role of these prices is evidenced by Average
the functions they perform, such as the revenue per
69.57 72.78 78.77 78.27
quantification and calculation of costs and tourist day
outcomes, and the producers' incentive and minimum
CA to cover
income distribution. In hotel companies,
the
managers should continually adjust tariffs to expenditure
the seasonal variations in the tourist demand. 789 845 1016 7876
from
They should relate to the ensemble of a operating
tourist complex, taking into account the activities
services included in its structure. Source: Data processed and calculated from
Regarding the activity of the analyzed the financial statements of SC A SA [5]
hotel company, we noticed the strategy
pursued by the companies' management in Table 2. Turnover (CA) to cover the
order to adopt stricter measures and to re-size expenditure thousands euros
costs, to avoid recording negative Indicators n+4
profitability indicators. CA 702
Considering the specific hotel activities
and the expenses incurred in advance of the Operating expenses related to CA 716
revenue earned, and the decline in the tourist CA-Ch variation 14
traffic, the analyzed companies failed to
Growth index 2.04
record a business operating profit for the
reference period. Number of tourists 4310
Applying the strategy of domination by Minimum number of tourists to cover
4398
costs obliges companies to find those areas expenditure
that are potential sources of savings or cost Total number of tourist days 8275
reduction.[2]
Total tourist days to cover expenditure 8444
In the hospitality industry, there are
several strategies of pricing policies such as: Average length of stay 7.65
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Average revenue per tourist day 84.84 be adopted by the local hotel companies,
which could lead to benefits such as the
CA to cover the expenditure 716
increased revenue per total tourist day due to
Current occupancy 45,00 the consumption of other goods and services.
Minimum occupancy 45.91 The low tariff strategy is often used when
trying to penetrate the market or strengthen
Source: Data processed and calculated from the positions on the market, or in order to
the financial statements of SC A SA [5] regain some markets where there is fierce
competition, as in our case: Northern
The model for calculating the minimum countries belonging to the European space.
turnover for covering the associated This low price strategy is an effective way
operating costs: Based on the data contained which aims to determine tourists to choose
in the table below, we have highlighted the the hotel company practicing this kind of
extent to which a hotel industry can afford to policy.
adopt a policy of reducing the average Another policy to attract tourists on the
revenue per tourist day, lowering the charges seaside, by hotel companies and managers, is
for the tourist services provided in order the practice of low rates in the various social
cover the average expenses per tourist day. programs that promote low prices in low
Thus, SC A SA, in the year n, can season. The aim of this strategy is to increase
decrease its average revenue per tourist day the average length of stay and, thus, increase
to 20.76 euros, reaching a turnover of the revenues from the accommodation
789,327 euros, respectively its reduction by activity and from other related activities. This
22.98%. In the year n + 1, the reduction in strategy can also be found at the hotel
the average revenue per tourist day can be Condor, although this company is open only
done with 30,96 euros, the turnover 153 days a year, being also affected by
registering a value of 844,793 euros, and the seasonality.
reduction being by 29.84%. In the year n + 2,
in order to cover the expenses related to the 4. The differentiation strategy
turnover, the company may reduce the
average revenue per tourist day by 15.92 The company aims to achieve a
euro, the turnover having a value of competitive advantage determined by the
1,015,925 euros, the reduction being by existence of a unique product that is
16.82%. In the year n + 3, against the perceived within the industry and appreciated
background of the economic crisis, it is found by the majority of customers. The company
that the company may reduce the average will also aim to achieve superior
revenue per tourist day by only 8.17 euros, performance, which results in providing
the turnover having a value of 787,196 euros, leadership in its field of activity. Applying
the reduction being by 9.45%. In the year n + this strategy is based on intuition and
4, when the tourism company recorded a creativity, high capacity in terms of the
loss, in order to cover the expenses related to strengths that the company has, compared to
the turnover, while maintaining the average the competition.
length of stay at 7.65 days and the average The strategy of differentiation in the hotel
revenue per tourist day of 84,84 euros, the company
company must attain a minimum level of The starting point of this type of strategy
4,398 tourists, leading to an occupancy rate should be represented by the particularities of
of 45.91%. This can be achieved by the Romanian seaside tourism, creating a
aggressive marketing policies but also unique advantage that can be perceived
through diversified services. We chose this within the industry or on the market segment
tourism company as an example because, and not only; in other words, we should rely
during the period analyzed, it recorded both on originality in order to promote services to
profit and loss. thwart competition.
Unfortunately, the strategy of flat or total In the tourism industry, we note that there
rates does not characterize the hospitality is no policy based heavily on differentiation,
industry at the national level and of the on creating a single unique product spread
Romanian seaside area; this strategy should throughout the market and appreciated by the
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Untaru Mircea
Romanian Academy, Bucharest, Romania
mircea.untaru@gmail.com
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inventories and of their effects in the entities to choose a basis of evaluation that can allow
results. Considering that the version IAS 2 a credible estimation of the inventories
from 2005, has admitted already for some value, in accordance with their economic
entities to evaluate the inventories at the net value, the amount of cash inflow or cash
realisable value and at the fair net value. equivalents that can be obtained out of their
Out of the research undertaken un idea revalution.
appeared, that the basis of evaluation Due to this fact, when assessing the
detained by an entity must not be the same inventories it is not sufficient to choose only
for all the categories and for all type of one basis of evaluation (for all types of
inventories. Choosing the basis of evaluation inventories) and namely the historical cost to
must be made according to the purpose for assure a credible evaluation, being necessary
which the inventories have been constituted to resort to other basis of evaluation that
and according to their destination in the flow corresponds to each inventory.
of productive-economic processes, processes The assessment of the inventories in
that generate cash flows or cash financial statements doesnt represent
equivalents[4]. anything else but the expression of the
Taking into account the criteria of utility inventories in monetary units determined on
and destination of inventories, specified in the basis of cash inflows that can be obtained
the National Accounting Regulations, the at balance sheet date and of income
inventories can be classified into three big statement.
groups: inventories detained for the activity Starting from the facts I have analised in
of exploitation, inventories still in process this research the features of three categories
and inventories destined to be sold. of inventories, out of the perspective of the
The three groups of inventories value of cash inflows that can be obtained at
correspond to the main stages described by balance sheet date.
these in the flows of the cicle of exploitation The inventories from the first group are
of the enterprise: meant for the achievement of exploitation
-Stage I, are formed the inventories activities, in the process of goods production,
necessary to the activity of exploitation works execution, sevices, for the needs of the
(purchase and other); auxiliary activities and administrative, as
-Stage II, are processed the inventories, well as for the selling activities.
remade to be in accordance with the activity These inventories are formed in the
of every entity; administration of the entity by purchasing
-Stage III, are constituted the inventories from the caterer, being evaluated and
destined to be sold. registered in accounting at the cost of
The inventories formed in the Stage I, purchase. The cost of purchase is the
assessed at the cost of purchase, after their expression of cash or cash equivalents paid in
process of production, in Stage II, they are the moment of purchase of the asset.
given value, being transformed into semi- These inventories are not destined to be
products, finite products and evaluated at the sold, but to be used in the activity of
cost of production (the cost of purchase + the exploatation. At balance sheet date, the
cost of improvement). In Stage III, together inventories cannot be placed on the market to
with the goods purchased the inventories are be sold and will not determine cash inflows,
prepared to be delivered on the market, or to the only basis of evaluation being the
the clients, at the selling prices negociated historical cost (the cost of purchase).
through the contracts signed with the clients Using the same arguments for the
or at the market price. inventories in course of procession, the basis
At financial statements date the of evaluation for the registration in
inventories are in different stages, so they are accounting and presenting in the financial
presented and reported consequently. statements is the cost of production, as a
For the assessment of the inventories, in form of the historical cost.
the financial statements, I express the opinion The inventories from the third stage, at
that, according to the stage they are in the the financial statements date, are in the last
cicle of exploitation of the entity and stage of exploitation and are namely prepared
depending on their destination, it is imposed to be sold on the market.
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Acknowledgment
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gathering and use of resources in order to action plans retained so that the set objectives
fulfill the objectives of the enterprise. The and the means available on the short term
limitations of this model concern the extent (generally a year) converge towards the
of its focus on the accounting and financial accomplishment of the operational plans [12]
dimensions as part of the management and has been fiercely disputed in the last few
control system, as well as on the exercise of years.
power and its consequences, therefore Experts all over the world have been
drawing a clear distinction between strategic working hard to find new effective ways to
control and operational control. overcome the traditional approach of
Another limiting element is its budgeting and have come up with a series of
integration into a normative theory suggested solutions synthesized in an
dominated by the optimization of financial approach called Beyond Budgeting.
resources in order to reach the set objectives, In short, budgets are blamed for their
and this vision only makes sense in a context current incapability to cater to the needs of
of market stability, which is hardly possible enterprises, which are now operating in a
these days. much more complex and insecure
The second model, which has a more environment. The long-term and recurrent
behavioral nature, describes the management criticism that stresses out the difficulty,
system as a process that enables the influence complexity and the excessive duration of the
of behaviors [10] and that must favor the budgetary process [13] was later enforced by
cooperation between individuals and various additional criticism targeting the budget
groups to achieve congruous results [11]. functions [14].
The issue of the relationships between the There has been much involvement
different ways of control that exist within an with changing the budgeting tool for better
organization emerges at the level of flexibility and for enhancing its specific
organizational control, perceived as an practices. However, it appears that the budget
interaction between the elements of formal is unable to satisfy the managers own
control and the processes of informal control expectations and there is no need to eliminate
[12], but also for the management control. In is completely. Instead of that, it should be
the latter case, the difficulty consists in augmented by combining it with other tools
defining the particular roles of the tools that are better adapted to the actual problems
accounting for the complementarities and of organizational management. As
differences of each so that the system works envisioned in the research literature, this task
coherently as a whole. seems to fit in theory at least performance
measurement systems [15]. These systems,
2.2. Performance measurement system whose main objective is to translate the
development and the limitations of mission and the strategy of the organization
budgetary technology into a set of performance indicators that
represent the groundwork of a strategy
Budgeting is one of rare few accounting control system [16], are now available, in
practices that need to be adopted by almost the majority of existing market versions, as
all enterprises when they grow passed a dashboards or Balanced Scorecards.
certain size.
Budgeting represents the fusion of short- 3.The method
term action plans and serves as a reference
for the budgetary control. Hence the need to The research tool employed to collect data
draw a clear distinction between budgeting is research-development-action. The study
and budgetary control, with the latter was carried out empirically in a Romanian
standing for the ex post use of the budget to enterprise operating in the material
compare real data with provisional data, and construction sector.
between budget and budgetary process, The following approach differs from the
namely the entire set of budgeting actions. approach promoted by Lewin, which is
The budget, as envisioned by classical described as a classic research action.
management control, is (or should be) the The difference lies in the fact that its
accounting and financial expressions of the experimental tool is not predefined and that it
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doesnt cater to the purpose of producing - the second phase was divided into 3 stages,
knowledge exclusively. Above all, it results beginning with a restoration day during
from the will to develop an already existing which the participants were given the
entity. Because of that, it resembles more the chance to discuss their opinions on the
research-action approach, such as the one main management issues concerning their
applied by the Tavistock Institute: the organizations.
research-action does not limit itself to The objective of this debriefing was to
uncovering the state of facts, but also helps to establish an inventory of availability and to
transform certain conditions that are establish the objectives for the performance
perceived as unsatisfactory by the measurement system to be implementedThe
community. phase of implementing the tools in different
The starting point is a concrete problem: structures lasted for a period of
the introduction of driving tools within approximately 12 months. This stage ended
organizations in case their budgets should with a balance day during which each
prove unsatisfactory in terms of driving and management controller established an
monitoring performance. The organizations inventory of the performance measurement
addressed are the 4 regional affiliates of a systems implemented in its structure.
French group (later on referred to as Organization X is an enterprise
company X) operating in the material operating in the field of material
construction sector. construction. It produces cement, aggregates
The initiator of the project is the groups and concrete, and has a staff of 1100
financial director, who draws up the employees. The structure of the enterprise
following observations: includes 4 regional profit centers. Its majority
- management controllers of the affiliate stake is held by a French financial office. The
offices dedicate 55% of their time to results of enterprise X have been
budgeting (chiefly to budgetary control deteriorating since the end of 2009. The
operations); trigger for this downward slope was the
- collecting and strengthening report data is abrupt rise in the price of materials, which
more important than analyzing results and caused a deterioration of the enterprise
forecasts; margin, therefore constraining the latter to
- the frequency rate of budgetary reports stabilize the prices of its products because of
encourages people to adopt short-term the growing pressure by the competition.
reasoning without relying on strategic The environment of enterprise X is not
considerations; necessarily complex, but rather predictable
- the affiliates are incapable to furnish data and stable. The market evolution (on a
concerning its clients and their production downward slope) is easy to forecast. The
performance; competitors of the enterprise have remained
- the coordination between the production the same for many years and the emergence
and the commercial activities leaves room of new entries on the market is highly
for improvement. unlikely.
Starting out from this diagnosis, the At the end of the project, the analysis of
groups financial director wanted to achieve the situation indicates no real transfer of
the implementation of performance budgetary roles towards the dashboards. The
measurement systems in all the regional strategy and the mode of operation of
offices. enterprise X provide a clear picture of the
The process was carried out in two reasons why the budgetary practices of the
phases: organizations have not evolved in harmony
- the 3 management controllers attended a 2- with the implementation of the running tools.
day training course to become familiarized
with the theoretical aspects of driving 4. Budget significance
performance. Subsequently they were
given 3 months to confront the theory with The results have marked a departure from
the actual situations they are confronted the initial objectives of the project. The
with in their respective organizations; dashboards were implemented inside the 4
profit centers of the organization. However,
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their technological level is rather poor and substantiate and complete these results, any
the tools are rarely used. The dashboards future analysis must encompass a larger
have failed to obtain the legitimacy required number of organizations in order to
to improve the performance by the margin investigate the issue in other differing
demanded by the financial executive. The enterprise environments as well. This would
analysis of the context in which the projects allow for a clearer identification of the
unfolds reveals that the main culprit for the characteristics of organizational budgetary
current issues is the maintenance of practices that possess actual navigation tools.
unsatisfactory budgetary practices. Furthermore, this would allow for a
Among the set objectives, only one comparison of the latter with the
remained unaccomplished. The enterprise has organizations that possess no such tools
successfully built dashboards using non- whatsoever.
financial indicators in order to measure and
monitor the performance of the production This work was cofinaced from the
processes and the performance of the European Social Fund through Sectoral
customer service. Each separate profit center Operational Programme Human
developed its own individual indicators in Resources Development 2007-2013, project
these two fields, although overall the number POSDRU/159/1.5/S/140863,
preoccupations of the management Competitive Researchers in Europe in the
controllers are the same. Field of Humanities and Socio-Economic
In the case of organization X, the Sciences. A Multi-regional Research
introduction of the dashboards was not Network
accompanied by a transformation of the
budgetary practices, and a transfer of roles 6. References
would be highly required so that the profit
centers will be able to implement actual [1] Dupuy, Y. Le comptable, la comptabilit et
navigation tools. The analysis of the context la conception des systmes dinformation , in
under which the project was carried out Revue Franaise de Gestion, n215, 1990.
emphasizes the crucial role of two elements [2] Holmes, S; Nicholls, D. An analysis of the
in the evolution of organization Ls use of accounting information by australian
small business , Journal of Small Business
management control system, its strategy and
Management, 1998
its governing form. [3] Chappelier, P. Comptabilits et systme
dinformation du dirigeant de PME : essai
5. Conclusions dobservation et dinterprtation des
pratiques. Thse de Doctorat, Universit de
As far as the design of management Montpellier 2, 1994
control systems is concerned, the results of [4] Lavigne, B. Systme dinformation
the research-action reveal a strong interaction comptable des PME; une tude
between scorecards and budgets. The empirique , Revue Franaise de gestion, N
successful implementation of a dashboard 348, 2002
[5] Ekholm, B., Wallin, J., Is the annual budget
requires a series of changes in the budgetary
really dead?, European Accounting Review,
practices. Indeed, the transfer of budgetary 2000
roles towards the dashboards should be [6] Bescos P.L., Cauvin E, Lvaluation des
achieved so that the latter can undertake the performances dans les entreprises
functions that are theoretically destined to franaises: une tude empirique, Congrs de
them. lAssociation Francophone de Comptabilit,
This is not the case, however, for Orlans, 2004
organization X. Within this organization, the [7] Flamholtz, E.G., Accounting, budgeting and
absence of a strategy and a clear governing control systems in their organizational
form has impaired the evolution of the context: theoretical and empirical
perspectives, in Accounting, Organizations
management control system and the role
and Society,vol. 8, 1983, N 213
coherence between budgets and dashboards. [8] Merchant, K. A. & Van der Stede, W. A.,
The conclusions drawn up by this research Management control systems: Performance
are differentiated in what concerns measurement, evaluation and incentives,
organization X. In order to further Essex: Pearson Education Limited, 2007
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Vlad Costic
"Ovidius" University of Constanta, Faculty of Economic Sciences
euro_financial_consulting@yahoo.com
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the relevant statistical sources such as those financing of the investment. In general, the
drawn up for long-term by National Forecast insufficiency of the infestment funds is
Commisson, National Institute of Statistics, characteristic to local authorities, therefore
National Bank of Romania, the European only these should call upon the calculation of
Central Bank, etc.; the social impact in order to justify obtaining
f) Tariffs, prices and their supportability subsidies. Regarding the private sector it
by the consumer; should be noted the fact that the social
g) Where appropriate, the application of involvement together with the environment
the principle of "polluter pays" is taken into involvement represents positive rating factors
account; of companies by investors and focus of the
h) Calculation of the financial indicators, marketing strategy. Consequently, even if a
the following are considered the most project is realized by the company from its
significant: own resources, the described reasons make
- Net actuarial value (VANF); absolutely necessary the development of the
- Internal rate of profitability (RIRF); economic analysis.
- The cost/benefit ratio (C/B) or B/C;
- Cumulative cash flow (FNC). 4.1. Methodology of the economic
Possible financial structure is essential at a analysis
time. An example from a rea project,
conducted by the author, reveals the The purpose of this analysis, which is not
following situation in a company from the methodologically different essentially from
field of recycling petroleum residues. The the financial one, is to demonstrate that in the
financing variants are: selected variant the economic and social
- V1 with financing from its own resources benefits of the project exceed the costs. The
and debt; used indicators are:
- V2 with financing from its own resources - Net actuarial economic value(VNAE);
and and funding grants to the extent of 50 %. - Internal rate of economic profitability
The update used rate is 8%. (RIRE);
Table No. 1 Indicators values - The cost/benefit ratio (C/B) or B/C.
Ind V1 V2 The rate of social update (RAS)
recommended by the European Commission
VAN negative positive is of 5,5 %, but the member states are free to
RIRF 4,%< 8% 11,52% > 8% suggest, to justify and to use other values,
such as for example France 4%, Germany 3
C/B 1,34 0,94 %, England 3,5 %. The economic costs of the
FNC negative positive project are measured in opportunity costs
Source: The author as well as in avoided costs. Also, the
The first variant emphasizes the external benefits resulting from the
profitability of the permanent capital and the implementation of the project and which are
second the contribution of subsidies to the not included in the financial analysis are
profitability of its own capital throughout the taken into consideration.
achievement of the investment. The starting point in the economic analysis
is the financial cash flow at which two types
4. The economic analysis of corrections are applied in order to be
transformed in economic cash flow: the fiscal
The reasons of the economic analysis correction and prices conversion [5]. The
are derived from the need to assess the fiscal corrections are necessary for those
investment contribution to the welfare of the elements of the financial prices which are not
society[4]. The economic reality emphasizes related to the contents of the opportunity
a series of aspects where the reasoning purely costs such as the deduction of indirect or
financial would not permit the direct taxes and fees, of subsidies and simple
implementation of some projects either transfers.
because of insufficient funds possible to be The conversion of costs from the market
mobilized, either because of an unsatisfactory prices into accounting prices involves
operational profitability in case of total treating the costs by category by applying a
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specific treatment for each case. The The price was determined on the basis of
corrections can be calculated also on the European bourse quotations of the period of
bases of some standard conversion factors the carbon CLIMEX EUETS .
(fcs), the distortion of the price for flows of
input and output. [6]Example for the 2.Reduction of costs for electricity
calculation of the total cost of a construction : 2.018.640 kw x 0,08 = 161.491 euro
30 % unqualified work force (fcs = 0,48), 40 The effect of the reduction in the economic
% imported materials with the import tariff and social plan is translated into the
costs of 23 % and the selling feees of 10 % increasing use of the public lighting from
(fcs = 0,75), 20% local materials (fcs = 0,8), 32% currently to 95%-100%. At the local
10 % profits (fcs = 0). budget level the cost reduction has the effect
Total standard conversion factor is: (0,3 x of including the total annual consumption for
0,48) + (0,4 x 0,75) + (0,2 x 0,8) + (0,1x 0) = public lighting in amounts which may be
0,60 [3] allocated to this purpose (125.000 euro).
B) Socio-economic effects which were not
4.2 Treatment of the externalities transformed in monetary form
- The comfort given by lighting the whole
The financial analysis is focused on the city
cash flow and generally ignores the benefits - Urban appearance
or the negative effects of the project on the - The increase of the citizens safety
company. The acute problem is that of - Reducing daily crime that is growing in the
externalization of the monetization which is a city
highly sensitive operation. It is used - Cost reduction for combating crime
frequently for the monetization the method of - The benefits of the creation of new jobs (20
payment availability which consists in the in the execution phase and 2 in the
estimation of a monetary value throughout operational phase) in an area where the
polls, questionnaires, statistical observable number of unemployed persons registered
situation, the comparison with other with allowances and in search of a job after
observable behaviours on other similar the expiry of the allowance is of 5,17%. To it
markets, etc. is added another percentage 8,83% of people
The general recommendation is to limit the receiving social assistance and receiving the
analysis of the externalities in the economic family allowance supplements.
analysis to those for which a solid economic Even if a part of these effects can be
argument can be presented and for which a quantified monetary, we did not consider
monetization or estimation is realistically necessary such an approach because the the
possible.[3] In synthesis, the externalities externalities monetized sufficiently illustrates
which were not included in the calculation of the economic and social reliability of the
the conversion factors can be monetized, can project.
be argued credibly and a monetization 4.3 The economic analysis, the criterion
realistically applicable can be identified for for decision of granting non-reimbursable
these. The externalities which cannot be funds
transformed in monatated form are only The economic decision criterion is similar
listed. In the project The modernization of with the one from key indicators of financial
the public lighting systems through the performance. If VANE > 0, RIRE > RAS i
introduction of the unconventional lighting B/C > 1 means that the project has beneficial
solar and aeolian system, named above, the effects for society. The start point in the
following reasoning of treatment of the calculation of the economic indicators is
externalities is applied: constituted by the economic cash flow. But,
A) Socio-economic effects transformed into the granting of funds and determining the
monetary form needed amount to be financed are
1. Quantity of greenhouse gases (GES) conditioned by the results of both types of
avoided by the reduction of the electricity analysis.
consumption = 125.156 tones at a cost of 11
euro/tone = 1.376.716 euro/year.
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6. References
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According to the table, 2007 is the other indicators , it also reduced the average
benchmark for all indicators taken into net monthly earnings by almost 1%.
account being positive. The economic and Graphical representation of these
financial crisis reflects on the socio-economic indicators for the 2007-2014 periodis shown
situation, especially in 2009-2011, when the below ( Figure 1 ).
unemployment rate was 10.9 %, and real Currently, there is a tendency to return to
GDP decreased by 6.1% , average civilian the values of the indicators in the basic year
employment decreased by 2.6 % and the (2007 ), which means that this increase could
number of employees with a higher have a positive effect on tourism indicators, a
percentage, 11.2 % ; in conjunction with phenomenon that will be analyzed below .
-30
Source: www.statistici.insse.ro/, Tempo Online, 2015
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The municipalities are Drobeta_Turnu- commune and the average size of a village is
Severin (the county seat) and Orsova and 360 residents. Density settlements in the
other 3 towns listed in the table are Strehaia, territory are 11.6 towns / 100 sq km and a
Vnju Mare and Baia de Aram. population 110.3 inhabitants / km. Data from
Rural areas typology is closely linked to population and demographic indicators,
the geographical area: particularly negative natural increase,
In the mountain-plateau villages have a indicates the trend of depopulation in those
common structure and wasted, have an villages.
average of 350 inhabitants and difficult In the low plains and high plains villages
access to them in the winter. Their density have a compact structure and are medium and
within the mountain area is 4.5 towns / 100 large size. A common averaging around 3.2
square kilometers and population 30.3 villages and a population of 3,300 inhabitants
inhabitants / km. Average capacity of a , the density is 4.3 to 100 sq villages and 48
commune is 1,640 inhabitants, a commune is inhabitants / km .
4.5 villages, and the tendency to maintain the Socio-economic analysis of the county,
negative natural growth indicates future taking into account the 5 key indicators
decline in the area; (real GDP growth, civilian employment
In the hills area - settlements developed average number of employees,
along the valleys, have a tentacle structure or unemployment rate, average net monthly
sequence, a municipality has 2,950 earnings) is summarized in the following
inhabitants on average, 7.8 village / table:
30
Real GDP growth ( %)
20
Average number of
10 employed population ( %)
0 Number of employees ( %)
2007 2008 2009 2010 2011 2012 2013 2014
-10 Unemployment rate (% )
-20
Source: www.statistici.insse.ro/, Tempo Online, 2015
It is seen that in 2010 there was an the highest value in period under review) .
imbalance in all indicators, where the number The same situation is shown graphically in
of employees decay rate being 11.7 % , Figure 2.
correlated with unemployment of 10.5 % (
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928
The International Congress:
Accounting Challenges in the Global Business Environment
***
Workshop:
New trends in accounting and their implications for the global
business environment
Ovidius University Annals, Economic Sciences Series
Volume XV, Issue 1 /2015
Halep Maria
International Business and Administration, Doctoral School of the Academy of
Economic Studies, Bucharest
mariahalep@yahoo.com
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IAS39, IFRS9 is structured in three phases flows collected represent solely payment of
[4]: principal and interest. This definition applied
1. Classification and measurement, based on to rather basic contracts. The point will be
the combination of two criteria, the cash developed in the next section.
characteristics of the instrument and the The classification of the financial assets is
business model in which they are made at their origination. Only a business
managed. model change should yield reclassification. A
2. Impairment, the main revolution, which change in the SPPI/non SPPI criterion should
replaces the incurred los model with an maintain the initial classification, except for
expected loss, prospective model. cases where contractual clauses have been
3. Hedge accounting (micro-hedging). This significantly revised. If this is the case, it is
aspect will not be assessed in this article, considered to be a new initiated contract;
the micro hedging being an option that therefore, full analysis shall be conducted to
credit institutions can adopt, but is not identify the two classification criteria and the
mandatory. subsequent IFRS9 classification.
The standards perimeter consists of Some options are made possible by the
consolidated entities of banking institutions. Standard, such as to initially and irrevocably
The standard has still to be amended by the designate an asset at FVTPL in case of an
European Union in order to be applicable by accounting mismatch [6].
the European banking industry. The Derivatives are from now on analyzed as
mandatory application is requested by a whole, together with the host contract.
January 2018, early application being Impairment
possible. No comparative basis is demanded The main innovation brought by the
[5]. Insurance activities are not yet included Standard consists of the new impairment
in the scope, which poses significant model, which fundamentally changes the risk
disclosure challenges for credit institutions assessment process. The latest is reviewed in
having important insurance activities, order to incorporate not only the incurred
consolidated in their Group Financial loss, but especially the expected loss, by
Statements. taking into account all available forecast
Classification of Financial Assets and information, such as macroeconomic
Liabilities environment, external data ratings and
IFRS9 standard sets three possible credit spreads etc.
classification categories for financial assets, The impairment will be applied to all
measured at amortized cost, fair value financial assets classified at amortized cost or
through other comprehensive income FVOCI, including loans, debt securities,
(FVOCI) and fair value through profit or loss lease and loan receivables, financial
(FVTPL). Consequently, the current IAS guarantees and loan commitments issued [6].
categories Held to maturity (HTM), loans The impairment model requests the assets
and receivables, Available for Sale (AFS) to be allocated into three categories, or
disappear. buckets/stages, according to the
A financial instrument, if it respects the estimated risk level: bucket 1 healthy assets,
SPPI criterion, will be classified either at bucket two, slightly deteriorated risk assets
amortized cost or at FVOCI, according to its and bucket 3 impaired assets. At origination,
business model. If the business model is supposing the asset is not already credit
solely to collect contractual cash-flows, the impaired, it is classified in stage 1 and
asset will be classified at amortized cost, applied a 12 months excepted credit loss,
otherwise, if the business model is to collect using the Effective interest rate method on
cash flows as well as sell the assets, the asset the gross carrying amount. Following a
will be accordingly classified at FVOCI. dynamic credit risk survey, according to the
Assets not respecting the SPPI criterion or risk evolution compared to the origination
having a business model exclusively aimed at point, if the credit risk of the financial assets
selling assets are to be classified at FVTPL had suffered a significant increase since
[6]. initial recognition, it will be assigned with a
The SPPI criterion is a new concept lifetime expected loss, and classified either in
introduced by the Standard, i.e. the cash- stage 2 or in stage 3, function of the credit-
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impairment. The assigned credit loss in IFRS9 Standard should not fundamentally
stage 3 is even larger than in stage 2, as the change the existent valuation system.
effective interest rate is applied on net However, implementation processes, in
carrying amount (gross carrying amount less order to be IFRS9 compliant by January 1st
loss allowances). 2018, are far from being light. The new
classification system will need significant
Graphic 3: General model for impairment update of the consolidation software and a
process new presentation of the chart of accounts and
of the consolidated financial statements
reports, as well as important adaptation from
upstream and downstream systems. The
downstream impacts include notably the
European Supervision Reports such as
FINREP and COREP, which should also be
revised following the change in the
accounting standards, even if the nature of
the adaptations requested have not been
released yet.
Source: E&Y, Impairment of financial This significant process and IT review
instruments under IFRS9, [7] will necessitate important budget and
enforced organization and cooperation within
While Phase 1 should have a limited credit institutions, considering that the
impact on banks capital and financial standard will impact all consolidating entities
statements, as no massive change in consolidated at a Group level.
classification is expected by the Profession As for the new impairment for credit risk
(though other challenges arise, as it will be requested by Phase 2, it will necessitate
studied in the next section), the impairment important IT adapting in order to develop (if
process will significantly affect the banking not already existent) a powerful unique
industry. Firstly, an important first database, at a contract level, capable of
application impact should be observed in isolating the impairment basis (amortized
2018, as the scope of impairment will have cost and FVOCI contracts), allocate one by
significantly increased and will be based on one contracts into the appropriate bucket
an expected credit loss model: even healthy according to internal risk models, to survey
assets will be ascribed with a depreciation risk indicators and credit risk evolution from
amount, based on internal statistical models the contracts origination point in order to
that will take into account a 12 months have a dynamic bucket allocation and
expected loss. Secondly, IFRS9 impairment provision calculus and, finally, book
rules, though they will probably enable impairment in the local and consolidated
financial statements reflecting more accounting ledgers and subsequently supply
accurately the economic shape of the consolidated financial statements reports and
business, it will also bring with it more disclosures with information on portfolio and
volatility, because of external data used in the credit risk evolution, within the three buckets.
benchmark models, as well of moves from All these transformation requires
one bucket to another (any transfer from or increased coordination between Finance and
towards bucket 1 see the previous graphic Risk Departments (which historically work
for more insight). separately and have different perspectives on
As for the implementation challenges, business) in order to meet the IFRS9 standard
they will be assessed in the following section. by 2018. If 2018 seems far, taking into
account all the transformation process and
Section3. Implementation challenges the subsequent FINREP and COREP
raised by the Standard evolution, coping with IFRS9 standard by
January 2018 is a rather ambitious project.
As mentioned in the previous section, the
classification and measurement phase of the Section4. Costs and benefits induced by
the Standard.
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Conclusion References
It would be interesting to address the [1] PWC, That shrinking feeling: Tracing the
IFRS9 Standard in a more global view and changing shape of the European banking
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The regulation of tipping comes to fill the 2. Tip regulation advantages and
existing void in the tax legislation in disadvantages
Romania.
The Government decided to tax the tip We intend to answer the following
after the Anti-fraud Department controls question: was it necessary to establish a
reveled that there were various sums of legal basis for this type of income?
money, unaccounted for, in the cash drawers; All incomes have to be taxed, irrespective
and the controlled entities explained that the of their nature.
money came from tipping, for which there The OUG 8/2015 has submitted to
were no legal provisions. taxation only the extra amount of money
Through the Emergency Ordinance received by businesses that use a cash
no.8/2015 (OUG 8/2015), published in the register. What about the postman who
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receives 5 lei from the pensioners as they in which tipping is a customary practice? In
collect their pension? Shouldnt he give a other words, will we be confronted with a
receipt and pay taxes? What kind of receipt shift on the labor market?
does the doctor give for the 500 euros he Business owners will have to motivate
receives for a surgery, at times even before their employees through an attractive salary
the surgery, because the patient wants to package, including providing the employee
make sure the surgery is successful? No one benefits in the form of private insurance [3] if
makes them pay any takes for this unreported they choose to keep the gratuities. Quite
income! And the list of fields of activity with often, tip earnings exceed the actual monthly
untaxed additional income can go on. salary; employees accept being hired for
Tipping regulation is considered by Alin minimum wage salary, because they know
Chiu Tax Partner at Tuca Zbarcea & that the tip income will surpass the salary and
Asociatii Tax a bombastic measure, meant, that, when they draw the line at the end of the
first of all, to defuse the situations in which month, they will have satisfying revenue.
the activity of some businesses was Will Romanians choose to accept 10 taxed lei
suspended because of small differences or 7 unreported lei? Practice will answer to
between the cash in cash register drawers and this question.
the amount registered on the receipts If at the corner store people leave 10, 20
(differences generated most of the times by bani on the counter to avoid loading their
gratuities). [2] pockets with chance or in case they dont
There were instances where for a have the exact change the next time, how will
discrepancy of 1 leu extra in the cash drawer, the institutionalization of tipping work here?
the activity of the economic operator was Will the shop assistants be compelled to
suspended. The structures of control of the charge those 10, 20 bani on the receipt or
Financial Administration fulfilled their duty force the change down the customers
with the utmost diligence: from closing a pocket?
pastry shop for 5 lei extra in the cash drawer, It will be awkward for the waiter to ask
confiscating the nettles of an old lady selling the customer sitting at the restaurant table:
them on the street, to the suspension of Sir, will you leave a tip? How much? I need
activity for major frauds. to know this so I can issue the receipt. Or
The institutionalization of tipping makes will the waiter have his answer once the
sellers issue a double number of receipts: one check is paid and then do the math, issue yet
for the sold goods or services and one for the another receipt for the extra amount and run
tip. after the customers to give it to them?
The risk that employees do not declare the The financial and taxing implications of
amount of money they receive as a gratuity tipping can be synthesized as follows:
has not been eliminated. This is, however, the
responsibility of the employees and not of the Table 1. Tip Taxation
economic operator. This is the very reason Elements Tip retained Tip
why the personal money register has been by the distributed
reintroduced: at the beginning of the work employer to employees
program, employees must declare the amount It represents YES YES
of money they have on them. The owner has income
no way of controlling and verifying if It represent a NO YES
information is accurate. Moreover, the life of expense
business owners will be complicated by this It is subject to YES NO
new register, getting tangled in a never turnover tax /
ending paperwork. income tax
Printing the tip on the same receipt as the It is subject to YES NO
sold goods or rendered services would VAT
transform the tip into a tax, making it Employees NO YES
mandatory. This was not the desired pay income
outcome. The measures just sought a way to tax
tax this extra income. Social NO NO
Will we witness an income decrease contributions
among restaurants, hairdresser's, cab drivers are paid
or any other fields of activities that generally Source: Own analysis
involve tipping? Will employees avoid fields
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variables: the percentage of the total value of to their software, which will generate
the delivered goods or services rendered and additional costs. Will the software companies
the difference between the actual amount cope with these modifications in due time?[7]
existing in the cash drawer and the amount In our opinion, this measure will bring
that should be there, according to the only insignificant amounts to the budget, and
supporting documents. The range of penalties the activity of business owners will be
goes from warnings, for percentages equal to overturned, suffocated by even more
or less than 3% and a difference equal to or paperwork and controls. Moreover, the
smaller than 300 lei to fines up to 27,500 lei professional categories that received
and suspension of activity for 30 days for the gratuities until now will continue to cash in
second offense over the last 24 months, for a tips, without charging them on the bill, like
percentage greater than 3% and a difference they used to.
exceeding 1,000 lei.
8. References
6. Tipping Etiquette Abroad.
[1]OUG 8/2015, Official Gazette Publishing
Whereas in some countries gratuities are House, Bucharest, 2015
seen as a customary practice, there are [2] Chiu, A., Tip Taxation, a bombastic
countries in which tips are considered an measure: Advantages and Disadvantages
ziare.com
insult or even a criminal offence. In some
[3] Sahlian, D., Comparative study of the main
countries it is impolite not to leave a tip; in models for the assessment of insurance
others, leaving a tip is regarded as an solvency, CKS 2015 Conference, Bucureti,
insult. We take into consideration tips given 22-23 mai 2015 publish in Journal CKS 2015,
in the tourism field, abroad. Some countries ISSN 2359-9227, ISSN-L 2068-7796,
have established regulations concerning the pp.806-811, Available:
extra money that exceeds the price of what http://cks.univnt.ro/cks_2015.html
was served, adding a fixed sum on the bill. [4] OMFP 1802/2014, Official Gazette Publishing
In countries from Europe, North America House, Bucharest, 2014
and South America, it is customary to leave a [5] Ristea, M, Dumitru, C., Ioan, C., Irimescu,
A., Commercial Societies Accounting,
tip of about 10 to 15% of the bill, at times
University Publishing House, Bucharest,
even when gratuities are already included in 2009
the bill. On the other hand, in most Asian [6] Nichita, M., Empirical research regarding risk
countries, such as Japan, South Corea, and risk management in Romanian journals,
Singapore or Thailand nobody expects a tip. AAU Conference, Prague, Proceedings of the
In Japan not only is a tip not mandatory, 2nd International Conference, 2014,
but it is even considered an insult. Available: http://car.aauni.edu/wp-
content/uploads/IRFS-Proceedings_2014-
7. Conclusions Published.pdf
[7] http://www.cotidianul.ro/haosul-provocat-de-
ordonanta-bacsis-pentru-buget-260678/
Practice has shown us that in many
circumstances, tipping can work as an
international password. If you want to
befriend the waiter, the cab driver, the
receptionist, etc., give them a tip and you will
see how many things will instantly become
easier and more comfortable. [6]
The new emergency ordinance has created
panic amongst business owners, not
necessarily because of the extra tax being
imposed on them, but mainly because of the
way it this tax is evaluated and collected.
Hopefully, the chaos brought about by the
implementation of OUG 8/2015 will be
quickly dispersed and that the benefits of this
measure will outclass the implementation
costs.
In order to implement tip taxation,
business owners have to bring modifications
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The differentially applied practices for the 2. Identifying an asset that can be
public sector versus to the private one depreciated
regarding the reversible value depreciation
of assets led us to the analysis of the Applying the depreciation test is not made
solutions suggested by ISPAS 21 The randomly and it does not apply to all the
depreciation of noncash generating assets. assets of an entity. Generally, the standard
In the following, we will go through two requires that the entity makes depreciation
important moments from the depreciation tests when there are signs that an asset could
process: identifying the depreciated assets be depreciated. We note that this it is not a
and measuring the use value. mandatory request for the possible
depreciations to be calculated for all the
Keywords: recoverable service amount, assets on each balance sheet date, which
impairment loss, value in use, non-cash- would require a highly laborious task for
generating asset. many public entities. It is rather the case of
JEL Classification: M41 the existence of certain circumstances which
could indicate a higher depreciation risk
which should be assessed. Therefore, on
1. Introduction balance sheet day, those assets which,
according to the considered conditions can be
The concept of value depreciation [1] was depreciated, should be identified. The
developed by the International Accounting existence of conditions/clues, does not
Standards Board for the Public Sector within necessarily involve a depreciation, but still,
the International Federation of Accountants the public entity will have to analyse the
(IFAC) especially for ensuring a better and recoverable value of the respective assets.
trustworthy reflection of an assets value, on Since the depreciation test is a complex
balance sheet day, in the financial situations process and it is particularly expensive for
of an entity. The ISPAS 21 Standard The some entities (there are difficulties connected
depreciation of non-cash-generating assets to the possibility of determining the market
prescribes all the procedures applicable for a value of the assets, of the depreciated
public entitys non-cash-generating assets in replacement cost, respectively of the
order to ensure the recognition of possible rehabilitation cost; likewise, for determining
depreciation losses. The rigorous approach of the rehabilitation cost which requires the
the standards regarding value depreciation of reconstitution of the services potential of the
assets that belong to the public sector show asset subjected to the analysis at its level
the fact that the regulation authorities have before depreciation, it is necessary to adopt a
become aware that this has been a neglected few hypothesis and draw some suppositions
field in the financial reference. Therefore, on that are not always easy to support) in
balance sheet day, according to the IPSAS measuring the recoverable value, the
[2] provisions, the depreciation test is applied principle of materiality will be applied. If in
by comparing the accounting value of the the previous exercises for the asset that was
fixed asset with the fair value and the service subjected to analysis it was established a
value. If the highest value of these two is recoverable value that is significantly bigger
lower than the accounting value, depreciation than the net accounting value, and for the
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time interval the clues show that the asset has certain asset was identified, although its
lost some of its value do not constitute in potential did not suffer any changes.
events that would induce the decrease of this The local council of Beta region
difference, then it is not necessary to re- decides to close the local school, as a
estimate the recoverable value. consequence of the lack of request for the
In identifying the depreciated assets the scholar services; this resides from relocating
standard requires a potential depreciation the sai population 90% of the villages
clue set and it suggests that these represent a total inhabitants. Since the demographic
minimum factor list that will be taken into tendency which affects the demand for the
account. The entity could identify other scholar services is not expected to be
depreciation indicators, besides the ones reversed in the foreseeable future, we can
mentioned by the standard, since their list is consider that the asset is depreciated,
not exhaustive. At a first analysis, the signs although its services potential has not been
will be taken into account, the depreciation affected.
criteria, grouped in external and internal A high school cafeteria that was
criteria. designed for 700 students is usually only
The external criteria/clues are mainly the used by 90 students it is impossible to shut
result of a rupture in the technological it down because 80% of the requesters are
environment with negative effects on the accommodated at the boarding school, which
service use of the assets; of the decrease of makes it improbable to send the students to
the use level, as a consequence of the another school cafeteria to eat. On opening
appearance on the market of new assets, the cafeteria the demand was for 650 students
which are much more performant; of the the entity would have built a much smaller
significant long term changes within the building if an estimation for a future
legislative environment/in the governmental significant decrease in request would have
policy with adverse effects on the entity. The been done. The public institution establishes
internal clues are generated by the wear, that the demand has almost stopped and the
respectively the degradation of the services recoverable value of the cafeterias service
level expected to be supplied by the asset; the should be compared to its accounting value.
changes that appear during the use mode, The railway section X administrated
respectively a long term decrease of request by the CFR Regional Y is shut down based
for the assets services, with negative effects on the entitys management decision as a
on the entity etc. We are talking about all the consequence of the lack of permanent clients
internal information that leads to the idea the population prefers to use a bus service
that, in the future, the assets performance that is cheaper. Although the asset that is
will decrease. From the two categories of subjected to analysis maintains the same
sources an important percentage and a service potential, the lack of request
specific care is required by the external indicated the existence of depreciation of the
criteria which are exterior to the entity and railway section, which requires the
cannot be influenced by the management. comparison between the recoverable value
and its accounting values.
3. External and internal criteria examples As a consequence of the decrease of
for the depreciation of a non cash the childrens number in the social protection
generating asset sector from Alfa region which is a
consequence of rethinking the social
In identifying the non-cash-generating protection system for minors, the local centre
assets which could be depreciated, the is expected to be shut down. For the centres
following [3] external sources have a assets for example its buildings, it is
significant impact: admitted the existence of depreciation loss
a) stopping or trying to stop the demand clues.
or the need for the services provided by the b) long term changes with an adverse
asset effect on the entity will take place in the
In this case a decrease/stop of the technologic, legislative or governmental
demand for the services provided by a political environment in which the entity
operates
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An assets services utility/potential can reparations that are necessary are not feasible
be decreased if the technology has from an economic point of view. The
advanced, producing more efficient registered physical deterioration is a true clue
alternatives, respectively as a result of the of value loss.
changes in legislation or regulations. Identifying deficiencies in the
In hospital X an equipment for medical resistance structure of a building part on the
diagnosis was acquired 5 years ago and is public patrimony of an administrative-
used ever more rarely as a consequence of a territorial unit requires shutting it down, with
similar equipment being donated, which has consequences on the recoverable value and
a more advanced technology, ensuring more recognizing a depreciation loss.
efficient services. The quick development of b) significant long term changes with an
technology in this field decreases the service adverse effect on the entity, in the way that
use of the old equipment, thus the entity has the asset is used or in the way that it is
to admit its depreciation loss. expected to be used
The financing allotted from the local The service potential of the asset does
budget for a subordinated education not change, but it cannot be used like when
institution is insufficient for ensuring the it was set in use, respectively its life span is
update of computer programs for students shorter than the initial estimations.
training. Since the institution does not have Although when it was set in use a
the necessary personnel for maintenance the building that belongs to a hospital unit was
programs and it cant bear the cost required designed for medical activity, it was
by the external provider, it is necessary to re- subsequently used as a storehouse. Since the
estimate the recoverable value of the asset is no longer used like in the beginning,
depreciated computer programs. it represents a clue of a possible value loss
As a result of legislation changes and it is necessary to model the recoverable
regarding construction materials, a building value.
that belongs to a cultural institution cannot For implementing an efficient
keep being used for artistic activities. The computerized program the Romanian
changes that occurred in the legislative Broadcasting Company financed in 2007 a
regulations decrease the services potential of project that requires connecting all the
the asset that is being analysed, thus it is computers in the entity to a main computer
necessary to admit that the building has had a requiring special conditions for phonic
depreciation loss. isolation and safety. After finalizing the
The public entity X owns two vehicles investment it is found that the main computer
in patrimony which do not follow the new functions under capacity because many
standards regarding gas emission. The applications were converted or made to
changes that occurred in the legislation operate on servers or PC platforms. The long
require the entity to admit a depreciation loss term decreases of demand for the main
for the two vehicles whose services potential computers services are materialized in a
has decreased. significant change of the way in which the
Amongst the internal sources [4] that can respective asset is used, which registers a
lead to identifying the depreciated assets, we depreciation.
can mention the following: c) a decision to stop the building of an
a) there is physical evidence of an asset which was registered previous to its
assets deterioration completion or previous to bringing the asset
The physical deterioration of assets in use condition
happens as a consequence of structural or The decision to cease construction before
construction deficiencies as well as other completing the asset does not allow it to
factors are impact to the level of services provide the expected services, thus its
provided which register a significant decline existing potential cannot be capitalized.
in comparison to the initial services. After starting the construction work for
As a consequence of the flooding in a building designed for Alzheimer patients, it
the summer of 2007, in hospital X the was found that the location is a nestling
medical equipment in radiology department perimeter for an endangered species and the
has been strongly damaged and the
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replacement cost of the asset before ones identified on cessation or near cessation
depreciation. of demand, can be generally assessed by
Returning to the above mentioned using the approach of the amortized
example, in 2001 a fire destroys the replacement cost or the one for the services
buildings structure. For safety reasons, the units, accordingly; and
building is shut down, in need of 20,000,000 the depreciations identified from the
RON reparations. Since the amortized physical deterioration are generally assessed
replacement cost (undamaged state) is by using the approach of the rehabilitation
57,800,000 RON, the service value is given cost or through the method of the amortized
by the difference between the two values: replacement cost, accordingly.
37,800,000 RON. Assessing the recoverable value of the
non-cash-generating assets is a complex
4.3 The services units method process that also requires modelling the
information of the expert assessors, besides
According to this approach the updated using professional accounting reasoning.
value of the remaining services potential of Although the Romanian public accounting
an asset is determined by reducing the has lined up to all the international norms in
current cost of the remaining services form, it will take into account, for a loyal
potential before depreciation in order to image reflection, both the current regulations
comply with the reduced number of services and the accounting treatments suggested by
units estimated for the asset that is currently the international standardizes.
depreciated. The current cost of replacing the Understanding the value depreciation
remaining services potential of the asset is phenomena requires, besides identifying the
either the reproduction cost or the amortized depreciated assets and measuring the
replacement cost of the asset before recoverable value, recognizing the losses in
depreciation. accounting for the non-cash generating
Example: In 2000 the analysis lab of assets.
hospital X acquired an efficient equipment
for 8,000,000 RON, with a service life of 10 5. Conclusions
years. In 2005 there is evidence from internal
reporting that an automated operation of the Despite the fact that the title of IPSAS 21
equipment does not function as predicted and is Impairment of Non Cash Generating
as a consequence the annual production level Assets, the perception of the underlying
is decreased by 30% for the remaining principals of public sector accounting starts
service years of the equipment. The with the understanding that the factor that is
replacement cost for a new equipment in being tested for impairment is the service
2005 is 10,000,000 RON. potential and not the asset itself.
The use value of the asset is determined For those who feel uncomfortable with
with the following procedure: the fact that a service generating unit
Replacement cost 10,000,000 (equivalent to cash generating unit in IAS
Accumulated amortization 5,000,000 36) was not included in IPSAS 21, we would
Amortized replacement cost 5,000,000
Service value (70% ARC) 3,750,000 like to remind that contrary to cash
For establishing the use value the choice generating assets, for which a difficulty
between the analysed methods is made might arise in trying to attribute them a
according to the data availability and the specific cash flow, for non-cash-generating
depreciation nature, as it follows: assets the corresponding problem of
the depreciations identified from the attributing service potential to the individual
significant long term changes in the asset dose not arise. On the contrary, the
technological, legislative or governmental attribution of service potential to an asset is
politics environment can be generally simpler.
assessed by using the approach of amortized Any accounting system, no matter how
replacement cost through a method of unit efficient, modern and converging with the
services, as applicable; International Accounting Standards for the
the depreciations identified from the Public Sector, will always be perfectible even
significant long term changes, including the if this is only due to the fact that economy
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6. References
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Ofileanu Dimi
University 1 Decembrie 1918, Alba Iulia
dimi_ofileanu@yahoo.com
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Based on this analysis, the managers activities that do not create value and in this
decision is to refuse the order because the way facilitates the creation of available
price offered 70 lei/pair is lower than the capacities.
products manufacturing cost 75,625 lei/pair, The financial impact of Lean
and accepting the order would lead to a loss of improvements depends on the use of this
5,625 lei ({1.000 pairs x [70 lei/pair 75,625 available capacity. [1]
lei/pair]}) In the example taken, the capacity
In another analysis, based on relevant indicators are presented as it follows:
costs, the manager will take into consideration
the fact that fix costs are irrelevant because Capacity Employees Machines
they will be incurred even if the order will not Productive 48% 56%
be honored. So, in calculating the cost of Non-Productive 28% 15%
manufacturing the 1.000 additional pairs it Available 24% 29%
will be taken into consideration only the raw
and used materials, the salaries of directly The question is if the company has the
productive workers and the variable overhead capacity of producing the 1.000 additional
cost. We will have: pairs using the employees and the existing
production line. For this analysis will be used
Material cost 56,25 lei the operational indicators of Lean
Employee cost 12,50 lei Accounting, but it is very easy to notice that,
Variable overhead cost 1,75 lei to a production of 8.000 pairs/month, the
Total unit cost 70,50 lei company has an available capacity of 24% in
employees and 29% in machines, so there is
It can be seen that, even though the new enough available capacity to produce the
cost calculated for the additional order is 70,5 additional order of 1.000 pairs. In case the
lei/pair is lower than the one calculated company would honor the additional order,
previously 75,625 lei/pair, it is still higher the capacity indicators would be:
than the offered price 70 lei/pair. So the
managers decision will be the same, to refuse Capacity Employees Machines
the order because its acceptance will lead to a Productive 54% 63%
loss of 500 lei ({1.000 pair x [70 lei/pair 70,5 Non-Productive 28% 15%
lei/pair]}). Available 18% 22%
Lean Accounting proposes Value Stream
Costing as an analysis based on which the Because for the manufacturing of the
managerial decision should be made. Using additional order there is capacity in workforce
this instrument in analysis, allows a new and in machines, it follows that, the costs of
perspective, different from the traditional one. this order will consist only in raw and used
So, there are taken into consideration the sales materials.
and the costs of the entire value stream when Because the cost of direct materials is
calculating the profit. In this case, before 56,25 lei/pair, it follows that for the entire
accepting the additional order, the company additional order of 1.000 pairs, the additional
produces 8.000 pairs/month which are sold at cost will be 56.250 lei.
87,5 lei/pair. We have: Before honoring the order, the financial
indicators for the monthly manufactured and
Material costs 450.000 lei sold production are:
Employee costs 100.000 lei
Machine costs 45.000 lei Revenue 700.000 lei
Occupancy & other costs 15.000 lei Material costs 450.000 lei
Total value stream costs 610.000 lei Employee costs 100.000 lei
Machine costs 45.000 lei
Using Lean Accounting within a company Occupancy & other costs 15.000 lei
involves the calculation of some indicators Total value stream costs 610.000 lei
regarding the available capacity. The 90.000 lei
continuous improvement as a principle of Value stream profit
12,86%
Lean thinking leads to the reduction of
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In case the order will be honored, the Figure no. 2. The available capacity in
financial indicators of the new production of machinery before and after honoring the
9.000 pairs (8.000 pairs the current production additional order
+ 1.000 pairs the additional order) will be:
56% 63%
100% 29%
Revenue 770.000 lei 22%
Material costs 506.250 lei 0%
Employee costs 100.000 lei Productive Available
Machine costs 45.000 lei
Current Future
Occupancy & other costs 15.000 lei
Total value stream costs 666.250 lei Source: own processing
103.750 lei
Value stream profit
13,47% We notice that, by using Lean Accounting,
the manager will have a totally different
Look how using Lean Accounting in the opinion in regards to the results obtained by
analysis of the financial impact of accepting the company if he decides to accept the
the additional order has revealed the fact that additional order. If, by using the traditional
honoring it will be beneficial for the company accounting, it was established a loss of 5.265
as the profit increased by 13.750 lei, and in lei or of 500 lei, Lean Accounting reveals that
relative terms value stream profit margin accepting the additional order will determine
increases by 0,61%. a profit growth from 12,86% to 13,47%, so
The secret of obtaining a different result accepting the order in beneficial for the
that the one in the case of applying traditional company.
accounting methods lays in the indicators
used. 3. Make or Buy Decision
Lean Accounting identifies the available
capacity and exploits it by measuring the An important decision that a manager has
financial impact on the company. to take is to buy a certain piece needed in the
The available capacity has to be present in manufacturing process or to produce it within
terms of employees (Figure no. 1) and in terms the company.
of machinery (Figure no. 2). For example, if We take the same example; for a company
there is available capacity in terms of that manufactures footwear and obtains 8.000
machinery for accepting an additional order, pairs a month, the entire quantity will be sold
but there isnt available capacity in terms of for 87,5 lei/pair. The sole for the
workforce, the company will need to have the manufactured footwear is produced within the
employees work extra hours, or, if that isnt company. The company has the possibility to
possible, hire more people which will lead to buy the soles from a supplier for 14 lei/pair.
higher costs. So, it is to be seen if the profit In the traditional accounting, the analysis
obtained by honoring the order will cover based on total cost will determine the cost of a
those costs. pair of soles in case they are produced within
the company as it follows:
Figure no. 1. The available capacity in
employees before and after honoring the Material cost 11,00 lei
additional order Employee cost 2,50 lei
Overhead cost 2,75 lei
100% 48% 54% Total unit cost 16,25 lei
24%
18%
0% Because the unitary manufacturing cost of
Productive Available a pair of soles of 16,25 lei is considerably
Current Future higher than the offer received from the
supplier of 14 lei/pair, the manager will think
Source: own processing about buying the soles than to produce them.
The analysis based on relevant costs will
take into consideration only the variable costs
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