August 2001

 Inside this Issue...

 Eye on Southeast Europe 2

 Commercial Opportunities 4

 Calendar of Events 7

Think Big, Test Small, and Act Fast:

The Romanian Strategy for a Wired

Society

by Cristina I. Marine, Central and Eastern Europe

Business Information Center

The telecommunications sector represents a top priority for

Romania’s national economy. Romtelecom, established as a

result of splitting national telecommunication services in

the early 1990’s, was partially privatized in 1998 and has

become the sole provider of basic telecommunications

services. Romtelecom monopoly will be eliminated at the

end of 2003. Mobile telephony has been expanding every

year, and the growing number of Internet service providers

(ISPs) in the data transmission industry indicates sustained market growth. The World Bank’s support for

reform and privatization of the telecommunications sector

in Romania, implementation of European Union projects

and private investments have contributed to the improvement of basic telecom infrastructure and wireless capabilities, thus creating the conditions for future expansion. The

telecommunications sector is likely to become more

dynamic in 2003, when the Romtelecom monopoly has

been eliminated.

In the past six months, the Ministry of Communications

and Information Technology (MCTI) spearheaded efforts

to develop legislation that will address a number of urgent

matters related to e-commerce issues. Experts and regulators held debates on subjects such as electronic signature, consumer protection, fraud, and privacy. MCTI welcomed the interest shown by the private sector for the

implementation of a number of pilot projects proposed last

May. “We need the consultations with representatives of

the IT industry because we want the laws that are promoted to regulate this field efficiently and coherently and

meet its needs,” said Dan Nica, Minister of Communications and Information Technology.

Romanian legislators passed a law on electronic signature,

and are debating a bill on e-commerce. New legislative efforts target the prevention and punishment of electronic

fraud. MCTI together with the parliament’s Information,

Communications, and Technology (ICT) Commission is

working on a draft law covering Internet fraud that is not

addressed in the criminal code. Finally, the Romanian government has developed a package of tax incentives for information technology (IT) professionals. It is hoped that

this will stem the emigration of software engineers and

other IT professionals to higher paying jobs in the West.

At a business briefing organized in July by the U.S. Trade

and Development Agency (TDA) in Washington, Minister

Nica titled his presentation: “Think Big, Test Small, and Act

Fast.” Mr. Nica said that sustained efforts towards developing ‘e-Romania’ would create conditions for the new interconnected society and transform the current Internet

economy.

To achieve this goal, the Romanian government has established the Information and Communications Technology

(ICT) Task Force. ICT serves as the integrator and coordinator for all national telecommunications and information

technology projects. The Task Force uses the input it receives from the public and private sectors, academics, nongovernmental organizations, and community leaders in the

development of a national strategy for information, communications, and technology.

Information and communications technology is an essential

component of the concerted efforts to improve Romania’s

macroeconomic framework, by making visible progress in

such areas as: enterprise and energy sector reform; financial sector reform; governance and institutional reform. In

Washington, MCTI officials highlighted the priorities of

Romania’s ICT national strategy: modernization of public

administration and of public services; improvement of the

quality of life (health, environment, transportation); sustained development of the ICT sector; training the work

force in the increasingly digital new economy; education;

and technical assistance.

MCTI announced a number of projects to be implemented

nationwide (the estimated cost of each project is noted in

parenthesis): Internet access for high schools ($50 million);

(Continued on page 3)

Central and Eastern Europe

Commercial Update

A publication of the U.S. Department of Commerce, International Trade Administration, Central and Eastern

Europe Business Infromation Center in cooperation with the U.S. Agency for Interntional Development
2 Central and Eastern Europe Commercial Update

Eye on Southeast Europe

Off the shores of the Adriatic sea, the small nation of

Albania continues its move forward towards increased

economic growth. The calm sea breezes and mild, temperate weather provide a unique climate in which various

agricultural products flourish. As a main component of

Albania’s economy, agriculture accounts for over half of

the nation’s gross domestic product (GDP) and Albanian

leaders continue to underscore its importance in the overall

transformation of the nation’s economy.

Current Trends in Agriculture

According to Myhidin Llagami, an agricultural statistician

with the Albanian National Institute of Statistics, there are

three basic trends to Albanian agriculture. First, there has

been a collapse of the production of “industrial agricultural” products, i.e., wheat, cotton and rice. Under collectivized agriculture, most farms had been producing large

quantities of wheat, with nearly 200,000 hectares of wheat

being planted annually. However, production has dropped

nearly every year with the latest estimates falling to around

92,000 hectares. In 1970, Albania’s farmers planted 22,000

hectares of cotton but by 1994 no cotton was planted.

Similarly, rice production fell from 3,000 hectares in 1990 to

zero by 1998.

In June 2001, Agriculture Minister Lufter Xhuveli highlighted the second trend of Albanian agriculture by

announcing an expected increase in the livestock sector.

He also said that the agricultural trade balance would

improve by more than $50 million as another good farming

year would make more production available for sale abroad.

The substantial increase in the livestock production sector

has affected the demand for forage crops, particularly

alfalfa. Economists estimate that forage acreage accounts

for more than thirty percent of all land used for agricultural

purposes, and in 1998 forage production reached 3.8 million

tons.

According to Llagami, the third trend in Albanian agriculture is a dramatic increase in vegetable production,

specifically potatoes and beans. In 1998, the country

harvested 145 tons of potatoes (increase of 81 percent from

1990) and 23,000 tons of dried beans, a 64 percent increase.

Problems Facing Continued Growth

Although the agriculture sector has been recovering from

the 1997 fallout, many analysts agree that future growth will

be difficult to sustain. Llazar Kora, the European Commission (EC) Delegation Program Manager, outlines five

factors that may contribute to limit the growth of the

agricultural sector. First, many Albanian farms are

incredibly small and fragmented. Kora estimates that the

average farm is 1.1 hectares in area, and fragmented into

three or four separate parcels. Each of these parcels has to

be worked by hand, thereby limiting the amount of

commercial output. This fragmentation also causes a

dramatic increase in production costs. Another problem

resulting from the size of Albanian farms is the inability to

ensure product standardization. Many companies import

beef or other products from abroad because it is too

difficult to find a consistent local product. Lack of

communication among small Albanian farms is making it

increasingly difficult for large scale producers to buy local

products. In order to purchase products such as barley or

alfalfa, large producers have to enter into contracts with

literally hundreds of farmers. Finally, the lack of formal

infrastructure, including roads and irrigation systems, also

limits the amount of production that could be potentially

exported.

Opportunities for the United States

Despite the recent growth of Albanian’s domestic agricultural output, limited opportunities for U.S. exports do exist.

The greatest potential export is wheat. As stated earlier,

Albania’s wheat production has continued to fall since the

end of collectivization, while domestic demand has seen an

increase. However, wheat exports from the U.S. face

severe competition with European producers. Recently,

many Albanian firms have begun to produce sunflower

seed oil, causing an increased demand for sunflowers.

Presently, there is no domestic sunflower supply for these

firms, and demand must be satisfied by imports.

One U.S. product that has obtained a market share in

Albania is chicken leg quarters. A number of Albanian

entrepreneurs report strong sales of U.S. chicken quarters,

thanks in part to their reasonable price and high quality. A

recent study of the Albanian poultry market found that

U.S. poultry leg quarters tended to outsell other types of

chicken, and confirmed that the United States held a

competitive price advantage.

The United States Department of Agriculture also offers

various export assistance programs to countries in

Southeast Europe. Such programs include, the Commodity

Credit Corporation(CCC) and the Export Enhancement

Program (EEP). More information about these programs

may be obtained from CEEBIC.

Albania's Agricultural Outlook

by Nicholas Wheeler, Central and Eastern Europe Business

Information Center
Central and Eastern Europe Commercial Update 3

Central and Eastern European

Commercial Update

The Central and Eastern European Commercial

Update is produced by the Central and Eastern Europe

Business Information Center (CEEBIC). For more

information or to subscribe contact CEEBIC at: phone

(202) 482-2645, fax (202) 482-3898, or e-mail

ceebic@ita.doc.gov.

Director: Jay Burgess

Associate Director: Jennifer Gothard

Editor: Michael Rogers

International Trade

Specialists: Andrea Lupo, Michael

Rogers, Silvia Savich

Webmaster: Gedlom Tesfazion

Intern: Nicholas Wheeler

Contributors: Jonathan Kimball, Laurie

Molnar, Melissa Wilson

Think Big (Continued from page 1)

virtual libraries ($5.4 million), info-kiosks ($40.5 million);

multimedia centers for citizens ($21.5 million); the governmental communications infrastructure ($25 million/year – 4

years); e-government ($100 million); e-government procurement ($12 million); rural communications ($13 million); development of radio communications and television networks ($76 million); implementation of radio network for

data transmission using point to multi-point technology

($300 million).

MCTI’s projects and plans are now at different implementation stages. A business-to-business (B2B) system for customs operations will become operational this year. The

program allows on-line electronic filing and customs declaration processing. The new customs system will be

launched and tested at one border customs station and will

then be implemented nation wide. The project’s secure site

allows traders to transmit customs clearance data via an

Internet link-up. It also calculates automatically all due

payments, including tariffs and commissions, which can be

paid by promissory note on a credit account. The system’s

comprehensive databases will list around 15 million prices

from all over the world. The methodological norms to

implement the program and the development of an end-user

authentication mechanism, such as electronic signature or

smart card, are meant to provide and maintain a secure environment.

A new site www.no-cash.ro concentrates in one place the

banking system offer for electronic banking transactions

and payments in Romania. Zero Cash, the company that

launched the site, says it is meant to promote higher transparency in the banking system, encourage bank competition, and contribute to setting up correct prices for bank

services. No-cash.ro is also a promotion and consultancy

center that provides relevant information encouraging the

1.3 million card holders in Romania to make banking transactions electronically. Officials with Europay International

for South Eastern Europe consider that Romania has the

greatest growth potential in the region and the market will

reach about 2 million Master Card and Maestro cards by

the end of 2003.

Meeting with IT companies in the U.S., Romanian officials

urged the U.S. partners and investors to participate in the

privatization process within the ICT sector, to finance some

of the ICT projects, and to become strategic partners in the

dynamic IT industry. Compaq, Microsoft, Cisco Systems,

Oracle, IBM, Hewlett Packard, and Qualcomm are already in

the Romanian market expanding their operations. Increased participation of US firms in the IT sector and in the

on-going reform of Romanian radio-telecommunications

will help. It will increase competition among communication and information services providers, further transparency of regulatory implementation, and reinforce the need

for continued legislative reforms associated with e-commerce and e-government as part of the economic growth in

Romania.

Timisoara – An FDI Magnet

in Southwestern Romania

by Cristina I. Marine, Central and Eastern Europe

Business Information Center

Situated 356 miles west of Bucharest, Timisoara is the

largest economic, cultural, and scientific center of

Romania’s West Development Region, and the third largest

city of Romania with over 340,000 people. The city is home

to 25.8 percent of the urban population of the Banat region,

generates 30 percent of the region’s industrial production

and carries out 35 percent of its commercial activity.

Timisoara and the Timis County have a diverse population

that represents more than 30 ethnic groups.

The industrial sector of Timisoara contributes over three

percent to Romania’s industrial production with an

emphasis on industries such as: chemical; machine

building; food processing; electronics; electric;

information technology; rubber and plastics; civil and

industrial engineering; wood processing; and tourism.

Moreover, Timisoara and the Timis County lie in the middle

of one of the best agricultural regions in Romania. Experts

agree that improved management of the existing resources

could turn Timisoara into a major supplier of industrial

food products for both the domestic market and export.

Located close to Romania’s borders with Hungary and

Yugoslavia, Timisoara is centrally located near four major

rivers the Danube, Cris, Mures, and the Tisa. It is also

located near some of the region's major highway systems

that connect it to all the major cities in Central and Eastern

Europe. It also allows for easy access to the Black Sea and

(Continued on page 5)
4 Central and Eastern Europe Commercial Update

Central and Eastern Europe Commercial Opportunities

Bulgaria

MMC Inc., a heating and air conditioning and environmental engineering company, established in 1990 is seeking to

develop long term relationship with a U.S. supplier and/or

investor. The total investment sought is approximately

$200,000. MMC has 22 employees and last year's turnover

was approximately $855,000. In 2000, the company began

working on a project for building a nationwide network of

heating systems that use solar energy. The equipment will

be installed in commercial and residential buildings.

Contact: Boncho Bonev, Managing Director and CEO

MMC Inc.

2 N. Mihailovsky Street

9002 Varna, Bulgaria

Tel.: +359 (52) 257-000

Fax: +359 (52) 231-240

E-mail: b.bonev@mmc.bg

Submitted by Georgi Peev, CEEBIC Trade Specialist

Romania

RECOGNOS (www.recognos.ro) This U.S.- Romanian joint

venture company is a business solutions provider

specialized in software design and development with high

Internet content. Recognos provides comprehensive

custom software development services, such as: system

analysis, software development and testing,

documentation, and system support and maintenance. The

company has a wide client base in the Balkans, the

Scandinavian countries and the U.S. and is open to new

strategic partnerships. Please contact CEEBIC@ita.doc.gov

for additional information.

IPACRI Romania (www.ipacri.ro) This growing IT

company develops software programs for banking, public

administration, and services. The company is seeking U.S.

partners to expand its technological base and to facilitate

technology acquisition. IPACRI’s strategy calls for strong

partnerships that would allow the company access to test

beds. Principals of the company are interested in

contacting U.S. firms and will offer them support on

European and Middle Eastern markets. Please contact

CEEBIC@ita.doc.gov for additional information.

QCT CONNECT (www.qct.ro) is an IT company with

offices in Timisoara and Bucharest. QCT targets

distinctive markets such as local and central government,

public services and utilities, telecommunications,

transportation, and tourism. QCT CONNECT specializes in

business engineering, analysis and modeling, business

infrastructure, software development, application

integration and system administration; implementation and

project management. QCT is seeking a U.S. partner with

expertise in solutions frameworks, consulting (core

services, project management methodologies, best

practices), and enterprise engines. Please contact

CEEBIC@ita.doc.gov for additional information.

LTHD SRL (www.lthd.ro) –This graphic printing company

established in 1995 is the unique distributor/agent of 3M

and Lanier in Romania. LTHD uses specials reflective

graphics for 24-hour advertising, perforated marking film

for windows, as well as a wide choice of promotional

applications for billboards and banners. With two offices,

in Bucharest and Timisoara, LTHD employs 38 people fulltime and is seeking a U.S. partner to expand operations in

Central and Eastern Europe. Please contact

CEEBIC@ita.doc.gov for further details.

SINTEROM – manufactures devices for engine starting

and ignition, sintered parts for the automotive industry,

tungsten, and molybdenum products, etc. It exports over 20

percent of yearly production. The company seeks U.S.

partner/investor to expand current production capacity. For

further details, please contact CEEBIC@ita.doc.gov.

Pensiunea KATHARSIS - Belis – is an agro-tourism resort

project, 40 miles west of Cluj, at an altitude of 3,300 ft., 100

miles east of the western border. A family run company,

“Katharsis” is a bed-and-meals mini-hotel open year round,

suitable for vacations, retreats, camps, etc. The owners are

looking for partner/investor to expand operations and will

consider joint-venture arrangements with a U.S. tour

operator. Please contact CEEBIC@ita.doc.gov for further

details.

SURDUC Lake Development Project – This is an excellent

opportunity for US investors with interests and experience

in resort / entertainment / spa facilities. SURDUC has a

great location - 40 miles north of Timisoara, close to

Romania’s western and southwestern borders - that makes

it functional all year round. Local developer has detailed

plans and authorizations and seeks a U.S. partner to cofinance the project. Please contact CEEBIC@ita.doc.gov

for additional information.
Central and Eastern Europe Commercial Update 5

access to the markets of the Middle East.

The growing economy and favorable business environment, along with an excellent geographic position, have

made Timisoara an attractive target for foreign direct

investment (FDI). With over $350 million in FDI, Timisoara

is home to large U.S. companies such as Coca-Cola, Procter

& Gambel, McDonald’s, and Solectron as well as a number

of European firms such as Alcatel, Shell, and Continental.

Foreign operators agree that the main advantages of doing

business in Timisoara are high efficiency and quality labor,

as well as help and support from the local administration

which has established and nurtures good business

relations with the private sector.

Timisoara and the Timis County promote projects in

chemical production; agriculture, information technology,

tourism, transportation, avionics, infrastructure, services,

and the environment. Local initiatives such as the Public

Private Partnership and the ten-year program for the

economic development of the region have contributed to

the gradual improvement of the business environment in

Timisoara, where it takes only two weeks for a new private

company to register and establish operations. A new

communications system for the entire county and the new

Internet kiosks are two important developments that help

coordinate public and private sources and ensure

community participation in the long-term regional

development program. The universities adjust their

curricula to address the needs of the emerging market

economy and participate in local projects such as the

Technological Park of Timisoara.

For additional information on trade and investment leads in

Timisoara and the Timis County, please visit CEEBICnet.

Other website on Timisorara include www.dnttm.ro/

~cityhall; www.utt.ro; www.timisoara.com; www.cciat.ro;

and www.sorostm.ro

An Ancient Roman City in Western Romania

Becomes a Modern IT Hub

by Cristina I. Marine, Central and Eastern Europe

Business Information Center

Cluj-Napoca, located in northwestern Romania

approximately 200 miles northwest of Bucharest, is one of

the most important industrial, academic, and cultural

centers in Romania. Considered the historic capital of

Transylvania, the city stands on the site of the ancient

Dacian settlement Napoca. The County of Cluj occupies

an area of over 2,500 sq mi and offers astounding sights of

beautiful hills, wide plains and generous river valleys.

Machinery, metal products, chemicals, textiles are well

represented in Cluj; building materials and glass are

manufactured in Turda; iron and coal mines operate

throughout the county; and hydroelectric plants are

important sources of energy.

Cluj County is one of the six counties of the North West

Development Region (NWDR) that lies at the crossroads of

north-south and east-west European and national routes.

Three airports for domestic flights complement the

operations of the international airport in Cluj. The

population of the northwest region represents 12.7 percent

of Romania’s population, with 54.8 percent living in towns

and 45.2 percent in rural areas. According to the 1992

census, alongside with Romanians, 20.64 percent of the

people in the Cluj County are of Hungarian origin.

Cluj-Napoca and the county are located close to Romania’s

borders with Hungary and the Ukraine and the geographic

location allows local development projects to draw from

complementary resources. The abundance of diversified

natural resources (woods, minerals, gas) and a strong

agricultural sector have facilitated sustained development

of metallurgy, chemical industry, glass and china,

construction materials, textiles, the food industry, and

paper and pulp. As a result of joint efforts of the public

and private sectors, Cluj has reduced the bureaucratic

hurdles that inhibited dynamic private sector development

and significantly improved the local business and

investment environment.

The local administration, together with specialized bodies

like the North West Regional Development Agency, is

promoting policies and implementing projects aimed at

enhancing the region’s competitive advantage and

coordinating local initiatives with the national priorities for

European Union accession. Local officials and

representatives of the business community in Cluj and the

county have expressed their firm commitment to support

projects for the development and modernization of the

region's physical infrastructure (country roads, water

supply system, gas distribution, waste management), as

well as new industries such as the information technology,

Timisoara (Continued from page 3)

(Continued on page 7)

CEEBIC's

Southeast Europe Business Brief

This weekly e-mail service summarizes the

latest commercial and economic conditions in

Southeast Europe. The newsletter includes

business opportunities and tenders.

For more information or to subscribe, go to

CEEBICnet (www.mac.doc.gov/eebic/

ceebic.html).
6 Central and Eastern Europe Commercial Update

An Accelerated Rhythm of Reform Is a

Challenge Romania Will Have to Meet

by Cristina Marine, Central and Eastern Europe Business

Information Center

The National Bank of Romania (BNR) and the Ministry of

Finance (MF) have recently launched a program aimed at

improving the current economic situation characterized by

a fragile fiscal position and relatively large external

financing needs. The four-year anti-inflation program

focuses on curbing the country’s chronic inflation to

around 10 percent by 2004-2005 from about 35 percent at

present.

BNR Governor Mugur Isarescu and Finance Minister Mihai

Tanasescu pledged that the government would reduce

public spending, speed up privatization and restructuring

of state enterprises, and increase financial discipline. The

fiscal policy will allow for a budget deficit of 3.0 percent of

gross domestic products (GDP) in 2002 from 3.5 percent

forecast for 2001. Privatization revenues and receipts from

recouping non-performing state assets will be applied

towards continued public debt reduction. Reduction of

social security taxes starting in 2002 and elimination of

extra-budgetary funds will lead to a moderate relaxation of

taxation. Further reduction of the public sector workforce

and a review of tax legislation are also envisaged. The

fiscal policy will introduce tighter financial discipline, by

cutting payment arrears by 30 percent in 2002 compared to

2000. An accelerated privatization pace and restructuring

of loss-making companies are considered crucial for the

success of reforms. Simplification of foreign exchange

regulations and improved legislation to allow creditors to

recoup debts faster are also part of the program.

The National Bank of Romania will maintain the hard

currency levels, but it will not seek to boost them by

purchases from the local market, and it will use the

exchange rate as an implicit anchor for disinflation. BNR

officials hope to see an appreciation of the local currency,

although this would largely depend on an increase in

productivity and on reducing the fiscal deficit. “The

surprise element included in the anti-inflation program will

be perseverance,” stated the BNR Governor at a press

conference in Bucharest, adding that the gradual but

persistent process will make the social costs bearable and

will avoid problems for the banking system.(1)

Romania’s package to slash inflation comes at a time when

multinational financing institutions are cautiously

acknowledging the country’s progress in implementing

successful reform measures.

The European Bank for Reconstruction and Development

(EBRD) will co-finance the third stage of public utilities

development program worth EUR 380 million together with

the Government of Romania and the local administrations.

EBRD also intends to participate in other projects targeting

heating services, local water supply, gas distribution and

urban transportation.

The World Bank’s Country Assistance Strategy (CAS) for

Romania in 2001-2004 states that the new government’s

economic strategy “lays the basis for a pragmatic approach

to reforming the economy and raising living standards by

improving the quality of government services and creating

an attractive business environment.”2

 By demonstrating

sustained commitment to accelerated reform, Romania may

be able to secure external financing that will contribute to

the country’s current economic recovery.

If accelerated reforms continue, the World Bank will adopt

a high-case lending scenario that will increase Bank

commitments to $995 million through 2004. Adjustment

lending of up to $550 million during FY02-04 would support

“private sector development and institutional and

governance reforms, and would complement sector reforms

under individual investment loans.”3

 The maximum

financing script also provides for non-lending services in

the form of at least four studies per year, grants, technical

assistance, and World Bank Institute training in essential

areas of the reform process. The International Finance

Corporation (IFC), the Bank’s private sector arm, will focus

on four key areas: municipal infrastructure, financing for

post-privatization restructuring; support for capital markets

and small and medium-sized enterprises (SMEs); and

selected investments in the forestry sector.

A macroeconomic environment characterized by lower

inflation and sustainable growth will constitute one of the

triggers for the high-case lending scenario. Of equal

importance will be progress in key policy areas, such as:

(1) conclusion of PSAL I privatizations; (2) privatization of

a number of large state owned enterprises; (3) consensus

on a plan for reducing energy arrears; (4) a firm agreement

on the method and timetable for the privatization for the

Romanian Commercial Bank (BCR) and the Savings Bank

(CEC); (5) improvements in the financial sector legal and

supervisory framework; (6) agreement on the process for

developing an anti-corruption strategy; and (7) approval of

agreed social assistance legislation.4

By implementing its high-case scenario, the World Bank

will target poverty alleviation, growth through private

sector development and governance and institutional

reform. In the low-case scenario, World Bank lending

would be reduced to $60 million during FY02-04, and there

would be only one or two Bank operations per year.

The World Bank Board endorsed the CAS for Romania and

also approved a $50 million Social Sector Development

Loan. The Social Sector Development Program will support

the European Union accession process by modernizing the

labor market and will also strengthen social safety nets and

micro business development. The loan will be implemented

(Continued on page 7)
Central and Eastern Europe Commercial Update 7

Calendar of Events

CEEBICnet. Also, explore Cluj Napoca at the following

Web addresses: www.clujnapoca.ro; www.salcnc.me.wisc.edu/~ilies/webcluj/cluj.html;

www.clujonline.com; www.cjnet.ro

www.cjgate.com; www.arxia.com/florian/cluj;and

www.ccicj.ro

This notice is provided solely as an informational resource and does

not constitute U.S. Department of Commerce endorsement of these

events. All information published in the Commercial Update

regarding trade events is subject to change without notice by the

organizers of those events.

For a more complete list of events, go to CEEBICnet,

www.mac.doc.gov/eebic/ceebic.html

Local businesses seek U.S. partners in order to establish

joint ventures and increase the foreign investment flow in

the region. Export opportunities for U.S. companies exist in

information technology, minerals, chemicals, plastics,

leather items, electronics equipment, automotive, energy,

tourism, medical and optical equipment. The rapidly

developing high-tech sector includes over 420 software

developers, Internet providers, and Web designers. One of

these companies, Recognos Romania, has recently opened

the Cluj County’s “gate” on the Internet at

www.cjgate.com. A virtual town hall on the Internet will

give 24-hour access to community issues.

More than 70 percent of the region's agricultural land is

private and farmers coordinate their efforts with public

programs in order to encourage foreign and domestic

investments in agriculture. The Association of Romanian

Farmers to be established in Cluj will become the main

negotiating entity in cereal crops transactions and will

conduct lobbying activities promoting the interests of local

farmers. The main crops of the region are wheat, rye, maize,

barley, potatoes, sugar beet, and vegetables; and swine,

cattle, sheep and poultry are bred on medium and small size

farms.

The people of Cluj and the Cluj County are an asset whose

work ethic and professionalism have encouraged foreign

investors and multinational companies to invest more than

$180 million the region. A highly qualified workforce

trained at the local universities and high schools add value

to the growing private sector that has so far attracted

companies from Germany, Austria, France, Italy, Canada,

Hungary, and the U.S.

For additional information on current projects, please visit Rhythm of Reform (Continued from page 6)

September

9/11 – 9/14 Trade Show in

Kosovo, “Gilani 2001,” Pristina,

Kosovo

Contact: Jennifer Gothard, CEEBIC

trade specialist, tel. (202) 482-2645

fax: (202) 482-3898, or e-mail

ceebic@ita.doc.gov

October

10/15 – 10/17 Southeast Europe Economic Forum 2001,

Sofia, Bulgaria (see below)

Contact: Albena Gerova, Embassy of Republic of Bulgaria,

tel:(202) 387-7969 or go to www.biforum.org or

www.seeurope.net

Southeast Europe Economic Forum 2001

The theme of the conference is: Infrastructure - the Key to

Growth of Security and Welfare. The organizers will set up

a business match-making center and an exhibition area.

U.S. companies with a long-term interest in the Bulgarian

and Southeast Europe markets should consider attending

the conference to learn more about business opportunities

and to make business contacts with important Bulgarian

and regional government and business leaders.

and projects for the development of industrial sites.

Cluj (Continued from page 5)

between October 2001 - December 2005 and will be

repayable in 17 years, including a 4-year grace period.

In late June, the International Monetary Fund (IMF)

mission that visited Romania stated that substantial

progress was made toward reaching an agreement on

macroeconomic policies that could be the basis for a Standby arrangement in 2001-2002. Significant and sustained

progress in fiscal management and structural reform

(especially privatizations) will consolidate confidence in

the performance of the Romanian economy, ensure support

of the WB Group and the IMF, and increase Romania’s

ability to attract the necessary foreign direct investments.

Therefore, an accelerated rhythm of reform is a challenge

Romania will have to meet.

1

 Multiple articles in the Romanian press

2 Country Assistance Strategy of the World Bank Group for

Romania, May 22, 2001, pg. ii, Report No. 22180-RO

3

 Ibid, pp iii

3

 Ibid, pp iii-iv.

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