Romania

~Alison Abraham~ ~Steve Koreck~ ~Thomas Maruszewski~

There’s more to Romania than just:

DRACULA!!!!

History - Timeline

• 13th Century – Walachian/Moldavian principalities emerge

• 14th – 19th century – Region aligned with Hungary & Ottoman Empire

• 1878 – Treaty of Berlin recognizes Romania’s independence

• 1881 – Kingdom of Romania formally proclaimed

• 1945 – Communist-dominated government installed

• 1967 – Ceausescu becomes President of the Council of State

• 1989 – Countrywide protests begin in Timisoara• Ceausecu and wife are executed

• National Salvation Front takes over government

• 1990 – National Elections Held

Life in Romania

Geography

People

Government

Economy

Communication

Geography

IT in RomaniaYesterday & Today

• 1997 – Approx. 25,000 Internet Users

• 1999 – Approx. 650,000 Internet Users

• 2003 – Over 1 Million Internet Users

• 1999 – 28 Internet Service Providers (ISP)

• 2003 – Over 100 ISP’s

Comparison

• In 2002 – Over 50% of Population has Cell Phone• Less Than 5% have Personal Computer (PC)

• 1997 Price of PC More than Half a Year’s Salary • 2000 Price of PC was Nearly $800 (USD)

• Internet Access: $25-$60/month (dial-up access)• Plus $2/hour Local Call

Television

• Cable TV is Booming in Romania

• 50% of Population has TV

• 48% have Cable

• High Speed Internet (Cable Modem)– Kappa (ISP)

Telephones

• Existing Lines are Poor in Quality

• But…

Romania Laying Groundwork for Fiber Optic Lines

Laying Groundwork in Other Ways…

EOS Educating for an Open Society

Today in Romania

• Many Internet Services that offer Business Solutions in IT World

• Romania Encourages External Investment

• 130 Countries have Invested in Romania

Is Romania a Good Place to Invest in IT??

• Environmental Parameters

• Economic Stability

• IT Infrastructure

• Industrial Policy

• The Master Plan

Environmental Parameters

• Political/Social– Premier Adrian Nastase (elected Nov, 2000)

– Bureaucracy/Corruption Still Affects Efficiency

– Widespread Poverty

• Economic– 3rd Year of Stable Economic Development

– GDP Grew by 5% in 2003, Forecast More Growth 2004

– October, 2003 expected to sign 1st Joint Program with IMF

IT Infrastructure

Industrial Policy

• Long-Term Telecommunication Development Program 1991-2005– Extension of Analogue Networks– Intro to Digital Technology– Digital Microwave Links/Fiber Optic Cables– High Speed Data Transmission Network

Industrial Policy Con’t

• National Broadcast Council– Independent Regulatory Body– Issues Licenses for Broadcasting companies

• Ministry of Communications (Technical Authorizations)

• General Communications Inspectorate (GCI)– Enforces/Monitors Regulations– Similar to FCC

The Master Plan

• Intensive Development of Telecommunications Sector

• Quantitative Targets for 2005:– Main Line Penetration of 30 lines per 100

Inhabitants– Nearly 7 Million Lines– Full Completion of Network Digitalization

Reasons Against Investment

• High Poverty Rate (44.5%)

• 40% of Labor Force is Agricultural

• Major Industries:– Mining, Timber, Metallurgy

• Limited Access

• Under-Developed Infrastructure

Reasons for Investment

• Developing Country (Access is Improving)

• Sound Economic Policies

• Nastase’s Focus on Foreign Investment

• 98.4% Literacy Rate

• Gini Index 31.1 (vs. 40.8 for USA)

• Involvement with the IMF

• Many Potential Opportunities

Should We Invest??

YES!

Resources

• http://www.cia.gov/• http://www.students.missouri.edu/~romsa/romania • http://memory.loc.gov/frd/cs/rotoc.html• http://www.ici.ro/romania • http://www.romania.com• http://www.FT.com