The economic policy status quo in Romania boils down to this: most productive capital is foreign and it is in FDI that one has to seek sources for job growth. This comes at the cost of a great deal of pain in the productive public sector, where jobs have been cut in the hundred of thousands. But how many jobs does FDI actually create in Romania? The prime minister’s economic advisor tells us the figure: 9,300 jobs in 2011 and an estimated 6,700 in 2012. Mysteriously, the figure does not include jobs created in Bucharest, but nevertheless 9,300 jobs is a bit pathetic considering the very uncreative destruction taking place in the economy.
That said, it is true that while FDI is targeted at competitive manufacturing and energy (cars, car parts, wind energy), domestic investment went into low end wood processing, agriculture, tourism and retailing.