It is a common knowledge among experienced exporters that each market offering consistent opportunities poses as well equal challenges. Romania is no exception and it is often the case that its fame as a corrupt country precedes significant information about business to be done there. It is equally true that those experienced companies used to dealing with challenges on new markets are already trading and investing in Romania and this speaks for itself about the real potential for a skilful investor or exporter. So what should you know about corruption if consider doing business in Romania?
A Bit of History
Corruption, especially political corruption, has been a rod plaguing the Romanian territories since the Middle Ages. Curiously enough, it is not an inherent feature of the Romanian people: it was brought and imposed upon the Romanian territories by the successive foreign occupation. Most of the bad habits got rooted in the Romanian territories during the Ottoman occupations.
There has always been a resistance movement against corruption. It is enough to take a short trip through the works of Romania`s most representatives names in literature to understand the extent to which the corruption and its consequences have been loathed by a significant part of the Romanian society.
The Communist era worsen things significantly. It not only destroyed the social fabric that represented the resistance to corruption as intellectuals and land owners ended up killed in the Communist prisons. It imposed as well corruption as a means of survival.
The Revolution of December 1989 is considered to be the moment Romania parted with its Communist past. Unfortunately, it did only half a job. The absence of an enforced Lustration Law and of a reconciliation process allowed the Communist elite to continue occupying an important place in Romania`s business and politics. The fact that Romania has never done a proper research about corruption as a phenomenon affecting each compartment of its life doesn’t help either.
However, no matter what challenges it inherited, Romania has been evolving. The fight against corruption has become a matter of life and death for those clinging on public offices only to have access to the honey pot of public money. It is enough to look at the convulsions on the political arena to understand that Romania has embarked on a non-return road in which corruption is becoming less and less acceptable. It is enough to keep an eye on the social media and you will easily see that Romanians are fed up with the massive theft forced on their pockets by corrupt officials.
Corruption and Business in Romania
The most visible area affected by corruption is the sector of public investment, including projects with European funds. This is largely the explanation why Romania doesn`t have more up to standard roads, hospitals, etc. It is an area which will start working properly only when the National Anti-Corruption Department will free the way to public positions for experienced people who really want to achieve something for Romania and not for their own and their friends` benefits. However, despite the challenges in this area, many projects do take place and the foreign direct investment is on a steep rise. You might need a bit more time and patience to go around all the challenges, but doing successful projects in Romania is very doable.
In my experience, working with exporters willing to sell their products in Romania is by far one of the most eye-opening experiences about the level of business development in Romania. Good quality distributors do know their craft and many of them are not interested only in selling very good quality products to an increasingly growing and sophisticated public, but in having an active role in the marketing efforts of their providers as well.
So my advice for those exporters and investors interested in Romania is to research their opportunities more before thinking to shift their attention towards other “easier” markets. There is a lot of work to be done in Romania and consequently new products and technologies could add significant plus value.
Corruption might still be a problem but it is an issue Romania is dealing with consistently. And anyway, it is not the main thing going on there. Romania is a market willing to develop so it offers its opportunities to those who have the courage and the patience to dig deeper than the bad media.
If you are interested to find out more about opportunities there for you and your business or if you are looking for business partners on the Romanian market, we are here to help and would be very happy to hear from you.
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