2 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 3 Over time, no region or country has ever managed to develop without urbanization. Global economic growth has always been accompanied by some form of urbanization. Cities generate higher growth and productivity, which in turn promote the process of urbanization. Currently, there is no developed country which is not also deeply urbanized. There is a similar situation at regional level. With a few exceptions, the regions with highest GDP per capita in the EU also consist of metropolitan or urban agglomeration areas. Without a strong metropolitan area or urban agglomeration, a region can never grow efficiently. A country without a network of strong metropolitan areas and agglomerations cannot support long term growth. Moreover, the most dynamic metropolitan areas and urban agglomerations are also most successful in further attracting people and investments. This report outlines a number of solutions for strengthening the main metropolitan areas and urban agglomerations in Romania. The report targets both decision makers in Romania and the European Commission, as well as citizens and actors interested in the development of the communities they are part of. October 2019 METROPOLITAN ROMANIA Marcel Ionescu-Heroiu, Marius Cristea, Andreea China, Adina Vințan, Ioana Irimia, Oana Franț, Bianca Butacu, Grațian Mihăilescu, Ciprian Moldovan, Bogdan Dolean, Viorela Sfârlea October 2019 METROPOLITAN ROMANIA Marcel Ionescu-Heroiu, Marius Cristea, Andreea China, Adina Vințan, Ioana Irimia, Oana Franț, Bianca Butacu, Grațian Mihăilescu, Ciprian Moldovan, Bogdan Dolean, Viorela Sfârlea October 2019 ABBREVIATIONS AND ACRONYMS AACOR Romanian Commune Association AMR Romanian Municipalities Association ANL National Housing Agency CERN European Organization for Nuclear Research / European Laboratory for Elementary Particle Physics EBRD European Bank for Reconstruction and Development EC European Commission ERDF European Regional Development Fund EU European Union FZMAUR Federation of Metropolitan Areas and Urban Agglomerations FUA Functional Urban Area GDP Gross Domestic Product GTMP General Transport Master Plan IDA Intercommunity Development Association IPTANA The Design Institute for Road, Maritime and Air Transport ISUD Integrated Strategy for Urban Development IT Information technology ITI Integrated Territorial Investments MRDPA Ministry of Regional Development and Public Administration OECD Organization for Economic Co-operation and Development PA Priority Axis PATZM Land Use Plan for the Regional Metropolitan Area PIAROM Romanian Investment Employers’ Association PNDI National Program for Infrastructure Development PNDL National Program for Local Development PNDM National Program for Metropolitan Development PPP Public-Private Partnership PUG General Urban Plan RLU Local Urban Planning Regulation ROP Regional Operational Programme SUMP Sustainable Urban Mobility Plan TAU Territorial Administrative Unit UNCJR National Union of Romanian County Councils USA United States of America TABLE OF CONTENTS THE IMPORTANCE OF METROPOLITAN DEVELOPMENT /1 Why are metropolitan areas and urban agglomerations significant/2 Development dynamics in the European Union/13 The importance of magnet metropolises/19 Towards more competitive metropolises in Romania/25 How can Romanian metropolises access large and growing markets/28 Attracting companies with easy access to EU markets/30 Attracting companies with easy access to US markets/38 Attracting companies with easy access to East Asia markets/44 How can Romanian metropolises attract more people/51 The need for a growth vision/54 The need for urban promoters/57 The need for an ambitious plan/57 Where can Romanian metropolises attract people from/67 Need for opportunities to make Romanian metropolises more attractive/74 Need for dynamic land and real estate markets78 The need for investments in sustainable urban mobility/81 Need for infrastructure and public service investments to enhance quality of life/82 The need for infrastructure investments and business and innovation services/89 How can Romanian metropolises become more innovative/92 Recommendations/95 European Commission level/95 At central administration level in Romania (governmental)/96 At the level of local administration structures in Romania (city halls, county councils and their associations)/102 THE “PRIORITIES OF YOUR CITY” CAMPAIGN/109 Visual representation of priority projects in Pitești/148 Visual representation of priority projects in Ploiești/149 Objectives/111 Visual representation of priority projects in Râmnicu Vâlcea/150 Duration/112 Visual representation of priority projects in Reșița/151 Visual representation of priority projects in Satu Mare/152 Methodology/113 Visual representation of priority projects in Sfântu Gheorghe/153 Selection of metropolitan development projects/113 Visual representation of priority projects in Sibiu/154 Survey for project ranking/113 Visual representation of priority projects in Slatina/155 Campaign launch and performance/114 Visual representation of priority projects in Slobozia/156 Results/118 Visual representation of priority projects in Suceava/157 Visual representation of priority projects in Târgoviște/158 Visual representation of priority projects in Târgu Jiu/159 Visual representation of priority projects in Târgu Mureș/160 ANNEX 1/123 Visual representation of priority projects in Timișoara/161 Visual representation of priority projects in Tulcea/162 Visual representation of priority projects in Bucharest-Ilfov/124 Visual representation of priority projects in Vaslui/163 Visual representation of priority projects in Alba Iulia/125 Visual representation of priority projects in Zalău/164 Visual representation of priority projects in Alexandria/126 Visual representation of priority projects in Arad/127 Visual representation of priority projects in Bacău/128 Visual representation of priority projects in Baia Mare/129 Visual representation of priority projects in Bistrița/130 Visual representation of priority projects in Botoșani/131 LIST OF FIGURES Visual representation of priority projects in Brașov/132 Visual representation of priority projects in Brăila/133 Figure 1. Globally, economic growth has always gone hand in hand with urbanization/5 Visual representation of priority projects in Buzău/134 Figure 2. GDP ranking across NUTS 2 regions/7 Visual representation of priority projects in Călărași/135 Figure 3. GDP per capita, adjusted for purchasing power/9 Visual representation of priority projects in Cluj-Napoca/136 Figure 4. EU population density at county level (NUTS 3) in 2015/10 Visual representation of priority projects in Constanța/137 Figure 5. GDP per capita (adjusted for purchasing power) at county level (NUTS 3) in 2014/11 Visual representation of priority projects in Craiova/138 Figure 6. EU NUTS 2 regions performance in 2005, 2010 and 2015/14 Visual representation of priority projects in Deva-Hunedoara-Simeria/139 Figure 7. EU regions which declined as compared to the EU average between 2000 and 2015/15 Visual representation of priority projects in Drobeta-Turnu Severin/140 Figure 8. Number of cars sold in selected countries/18 Visual representation of priority projects in Focșani/141 Figure 9. Fertility rates in selected countries/18 Visual representation of priority projects in Galați/142 Figure 10. Economic growth has always relied on population growth/19 Visual representation of priority projects in Giurgiu/143 Figure 11. Gross income per capita (Atlas method) in selected countries between 1980 and 2017/23 Visual representation of priority projects in Iași/144 Figure 12. The EU lost more than 15 million young people (aged between 20 to 35) between 2000 and 2016/24 Visual representation of priority projects in Miercurea Ciuc/145 Figure 13. Main revenue sources of Romania (in bln. USD)/25 Visual representation of priority projects in Oradea/146 Figure 14. How Seoul changed over the course of a few years/26 Visual representation of priority projects in Piatra Neamț/147 Figure 15. Main export markets of South Korea from 1962 to 2014/27 Figure 16. Transformation of the new EU Member States’ economies/29 Figure 54. An effective monitoring and evaluation system/107 Figure 17. One-hour drive access area of growth poles/30 Figure 55. Campaign image/112 Figure 18. GDP per capita (PPS) in EU capitals/31 Figure 56. The campaign’s Facebook page/114 Figure 19. Exploitation sites and operators in Romania/37 Figure 57. The campaign’s web platform/115 Figure 20. Share in the global consumption per regions/44 Figure 58. Example of a promotional message from subnational public authorities/115 Figure 21. Motor vehicle sales in various countries / regions/45 Figure 59. Campaign article published by the local newspaper Ziua Constanța/116 Figure 22. Volume of external trade per counties, 2016/53 Figure 60. Campaign article published by the national magazine Republica/116 Figure 23. Biggest US cities, 1840/55 Figure 61. Promotion message on the UrbanizeHub social media platform/117 Figure 24. Daniel Burnham’s urban design of the city of Chicago (1909)/56 Figure 62. Promotion message on the UrbanizeHub web and social media platform/117 Figure 25. San Francisco urban plan, 1852/58 Figure 63. Example of promoting the final results (Top 3 projects selected in Baia Mare)/118 Figure 26. The 1852 urban plan of San Francisco superposed on the current city map/59 Figure 64. Percentage of answers per field of reference/119 Figure 27. San Francisco’s sloping streets, built based on the city’s old urban plan/59 Figure 65. Number of answers by cities/120 Figure 28. Historic urban designs which laid the foundation of major cities/60 Figure 66. Number of answers during the campaign period/120 Figure 29. The street layout of New Amsterdam (left) and the New York Commissioner’s Map (right)/62 Figure 67. Campaign image/121 Figure 30. Bucharest’s compact structure and post-1989 unplanned additions/62 Figure 31. Ildefons Cerda’s design of 1859/63 Figure 32. Historic image: The area around the Sagrada Familia Cathedral at the time of its inception/63 Figure 33. Barcelona today/64 LIST OF TABLES Figure 34. The area around the Sagrada Familia/64 Table 1. The richest NUTS 2 regions in the EU/6 Figure 35. The motorway network of Romania as proposed in 1968/65 Table 2. Most productive EU NUTS 2 regions - GDP per capita (adjusted for purchasing power)/8 Figure 36. Brăila’s 1892 urban design, based on Kiseleff’s model/66 Table 3. The largest economies in the world/20 Figure 37. Danube cities with systematization plans drafted during Kiseleff’s period/67 Table 4. Economic Complexity Index per countries/22 Figure 38. The functional urban areas of Bucharest and of the county capitals/69 Table 5. Top exporters per county/32 Figure 39. An estimation of the potential number of migrants in the near future/71 Table 6. The largest companies in Europe in 2015/33 Figure 40. Countries with the biggest Romanian communities/72 Table 7. The largest US companies in 2018/39 Figure 41. Counties with the highest net average wages/76 Table 8. Relative technological advance (RTA) ratios per industry, 2007/43 Figure 42. Number of completed homes per 1,000 stable inhabitants from the functional urban areas of main Romanian cities, Table 9. Largest East-Asian companies, 2018/46 2016/80 Table 10. The cities in Romania people would most like to live in/52 Figure 43. Home needed in the most dynamic cities in Romania/80 Table 11. Migrants attracted by the US from 1850 to 2016/68 Figure 44. Number of registered cars per 1,000 inhabitants in 2017/82 Table 12. Population for a selection of Romanian functional urban areas/70 Figure 45. Birth rate per 1,000 inhabitants in 2016/83 Table 13. Where Eastern European countries attract migrants from/73 Figure 46. Students in vocational schools in 2015/84 Table 14. Share of employees with high wages (more than 700 EUR net/month) in 2016/74 Figure 47. Foreign students enrolled in Romanian universities in 2016/86 Table 15. Largest university centres in Romania/77 Figure 48. Graduates of informatics and engineering universities in 2016/86 Table 16. Newly built homes between 1990 and 2015 and average price per square meter/78 Figure 49. Life expectancy (years) in 2016/88 Table 17. Top US research universities/94 Figure 50. Prevalence of foreign-owned companies per 1,000 inhabitants in 2017/89 Table 18. Budget for capital investments in a selection of functional urban areas in Romania, from 2014 to 2023/103 Figure 51. Prevalence of Romanian-owned companies per 1,000 inhabitants in 2017/90 Figure 52. Map of industrial parks in Romania in 2018/91 Figure 53. Ongoing patents in 2016/92 NUTS 2 regions classified by Cohesion Policy category (left) and Lagging Region category (right) EU Cohesion Policy region Lagging region More developed Low income Transition Low growth Less developed The Catching-up Regions Initiative Non-EU or No data The mandate of the EU Cohesion’s Policy is to narrow development gaps and reduce disparities between member countries and regions whilst supporting the European Union’s growth agenda more generally. Around €454 billion of European Structural and Investment (ESI) Funds have been allocated to help EU regions become more competitive in the 2014-2020 Programming Period, with a focus on less developed regions (with a GDP per capita (PPS) of less than 75% of the EU average) and transitions regions (with a GDP per capita (PPS) between 75% and 90% of the EU aver- age). However, not all EU regions have been able to fully take advantage of the benefits, due inter alia to the effects of the 2008 economic crisis and structural problems. Consequently, Ms. Corina Crețu, the Commissioner for Regional Policy, with the Task Force for Better Implementation, initiated the Lagging Regions Initiative to identify growth constraints in less developed regions, and provide target- ed assistance and programs to foster growth. Thus, lagging regions development support is offered to a broad range of stakeholders (regional and local administrations, educational institutions, business support institutions, small-and 0 250 500 1,000 km 0 250 500 1,000 km medium-sized enterprises (SMEs), entrepreneurs, investors, non-governmental organizations, international financing institutions). It is meant to maximize the impact of regional investments. Two types of lagging regions were identified in the EU: Strong cities are not enough though. To ensure that the benefits of city development also spill over to the urban hin- terland, it is critical to devise and encourage inter-jurisdictional cooperation and development. Few urban investments · LOW GROWTH REGIONS: cover less developed and transition regions that did not converge to the EU aver- nowadays have impact only on one administrative unit, so provisions should be in place for inter-jurisdictional plan- age between the years 2000 and 2013 in member states with a GDP per capita (PPS) below the EU average ning and implementation. For example, the suburban and peri-urban areas of Bucharest and the 40 county capitals in 2013. These include almost all the less developed and transition regions of Greece, Italy, Spain, and Por- generate 20% of firm revenues in the country, have attracted 31% of migrants, and have received 32% of new housing tugal. units after 1990. However, little has been done to foster inter-jurisdictional dynamics between core cities and their suburban and peri-urban areas (e.g. metropolitan mobility, cross-jurisdictional investments, sharing of services). · LOW INCOME REGIONS: cover all the regions with a GDP per capita (PPS) below 50% of the EU average in 2013. This group covers the less developed regions of Bulgaria, Hungary, Poland and Romania. For the 2021-2027 Programming Period, the European Commission proposed that the European Regional Devel- opment Fund (ERDF) will have a stronger focus on sustainable urban development (SUD) activities, with Member Poland and Romania were the first countries to pilot this initiative, with two regions each – Świętokrzyskie and Pod- States having to allocate least 6% of ERDF funds for integrated development in urban areas (Sustainable Urban karpackie in Poland, and Northwest and Northeast in Romania. Since these first pilot projects, the work has been ex- Development), either through a dedicated operational programme, a dedicated priority axis, within an operational tended both thematically and geographically (e.g. Slovakia was included in the initiative), with a focus on determining programme, or with the help of tools such as Integrated Territorial Investments (ITI) or Community-Led Local Develop- how regions can become more competitive and inclusive. ment (CLLD). The European Commission also wants to offer “more incentives for a more effective governance based on partnership, multi-level governance and an integrated place-based approach in its programmes”2. Analytical work undertaken in recent years1, indicates that the performance of regions in the EU is clearly linked to the performance of urban areas within the region. The most dynamic EU regions either have one or more metropoli- Thus, all EU Member Countries, Romania included, have to have a stronger focus on cross-sectoral and inter-jurisdic- tan areas or urban agglomerations within their boundaries, or they are close to one in another region. Without strong tional approaches (e.g. metropolitan approaches), and they have to better respond to the needs of territories that may urban areas, one cannot have strong regions. Cities function as pulse beacons, diffusing development to the areas not be defined by one clear administrative boundary. around them. 1 See for example: Farole, Thomas, Soraya Goga, and Marcel Ionescu-Heroiu. 2018. Rethinking Lagging Regions: Using Cohesion 2 European Commission. 2018. Policy Objective 5 – Europe Closer to Citizens and Tools for Integrated Territorial Development Policy to Deliver on the Potential of Europe’s Regions. World Bank Publications. [Policy Paper]. Functional Metropolitan Areas of Romania Source: The World Bank 18 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 THE IMPORTANCE OF METROPOLITAN D E V E LO P M E N T And the whole earth was of one language, and of one speech. And it came to pass, as they journeyed from the East, that they found a plain in the land of Shinar; and they dwelt there. And they said to one another: „Go to, vo, let us make brick, and burn them thoroughly.” And they had brick for stone, and slime had they for mortar. And they said: „Go to! let us build us a city and a tower, whose top may reach unto heaven; and let us make us a name, lest we be scattered abroad upon the face of the whole earth!” And the Lord came down to see the city and the tower, which the children of men built. And the Lord said: „Behold, the people is one, and they have all one language; and this they begin to do. And now nothing will be restrained from them, which they have imagined to do. Go to! Let Us go down, and there confound their language, that they may not understand one another’s speech.” So the Lord scattered them abroad from thence upon the face of all the earth: and they left off to build the city. Therefore is the name of it called Babel; because the Lord did there confound the language of all the earth: and from thence did the Lord scatter them abroad upon the face of all the earth. 4 M ETROPOLITAN ROMAN IA W HY ARE M ETROPOLITAN AREAS AN D URBAN AGGLOM ER ATIONS S IGN I FICANT 5 Why are metropolitan areas and urban agglomerations significant Over time, no region or country has ever managed to develop without urbanization. Global economic growth has always been accompanied by some form of urbanization. Cities generate higher growth and productivity, which in turn promote the process of urbanization. Currently, there is no developed country which is not also deeply urbanized. There is a similar situation at regional level. Figure 1. Globally, economic growth has always gone hand in hand with urbanization. Source: The World Bank 6 M ETROPOLITAN ROMAN IA W HY ARE M ETROPOLITAN AREAS AN D URBAN AGGLOM ER ATIONS S IGN I FICANT 7 A World Bank Report1 shows that the most performing regions of the EU are either densely populated or Figure 2. GDP ranking across NUTS 2 regions neighboring such densely populated regions. As far as the densely populated regions are concerned, two large types can be identified: 1) regions with at least one major metropolitan area; 2) regions with at least one major urban agglomeration. According to the table below, all the most economically developed EU regions include at least one major metropolitan area or large urban agglomeration. Those 30 regions generate 36% of the European Union GDP. Table 1. The richest NUTS 2 regions in the EU GDP (adjusted for Main Metropolitan Area/Urban Agglomeration in NUTS 2 region purchasing power) in M the region Euro in 2016 1 Île de France € 621,625 Paris 2 Lombardia € 373,430 Milan-Como-Bergamo Romania € 334,236 3 Oberbayern € 237,296 Munich-Ingolstadt-Garmisch-Partenkirchen 4 Cataluña € 237,373 Barcelona 5 Comunidad de Madrid € 234,888 Madrid 6 Southern and Eastern London € 219,223 London 7 Inner London - West € 205,995 London 8 Rhône-Alpes € 197,708 Lyon-Grenoble-Clermont-Ferrand 9 Düsseldorf € 197,620 Dusseldorf-Duisburg-Essen-Wuppertal 10 Stuttgart € 192,957 Stuttgart 11 Lazio € 189,430 Rome 12 Darmstadt € 183,336 Frankfurt-Darmstadt-Wiesbaden 13 Köln € 172,775 Cologne 14 Mazowieckie € 169,806 Warsaw 15 Andalucía € 166,027 Sevilia-Malaga-Granada 16 Veneto € 158,438 Venice-Padua-Verona 17 Emilia-Romagna € 156,892 Bologna-Parma-Modena-Rimini 18 Provence-Alpes-Côte d'Azur € 141,692 Marseilles-Nice-Cannes 19 Zuid-Holland € 135,837 Rotterdam-the Hague-Delft 20 Noord-Holland € 133,645 Amsterdam-Haarlem 21 Piemonte € 131,753 Turin-Novara 22 Berlin € 122,578 Berlin Source: EuroStat 23 Inner London - East € 115,595 London 24 25 Comunidad Valenciana Arnsberg € 116,187 € 113,697 Valencia-Alicante Dortmund- Ruhr Area The regions with metropolitan areas and 26 27 Stockholm Toscana € 113,494 € 114,349 Stockholm Florence-Livorno-Pisa urban agglomerations are not merely economic 28 Karlsruhe € 110,530 Karlsruhe-Ettlingen-Bruchsal powerhouses of the European Union, but they are on average significantly more productive than 29 Hamburg € 104,796 Hamburg 30 Attiki € 101,711 Athens Sursa: Banca Mondială other regions. 1 FAROLE, THOMAS ET AL. 2017. “RETHINKING LAGGING REGIONS IN THE EU: EVIDENCE-BASED PRINCIPLES FOR FUTURE COHESION POLICY”. WORLD BANK 8 M ETROPOLITAN ROMAN IA W HY ARE M ETROPOLITAN AREAS AN D URBAN AGGLOM ER ATIONS S IGN I FICANT 9 With a few exceptions (e.g. the oil-rich North-East region of Scotland), the regions with highest GDP per capita in Figure 3. GDP per capita, djusted for purchasing power the EU also consist of metropolitan or urban agglomeration areas. Table 2. Most productive EU NUTS 2 regions - GDP per capita (adjusted for purchasing power) GDP per capita Main Metropolitan Area/Urban (adjusted for NUTS 2 region Agglomeration in/close to the purchasing power) in region 2016 1 Inner London - West € 178,200 London 2 Luxembourg € 75,100 Luxembourg 3 Southern and Eastern € 63,400 London Région de Bruxelles-Capitale / Brussels 4 € 58,400 Brussels Hoofdstedelijk Gewest 5 Hamburg € 58,300 Hamburg 6 Bratislavský kraj € 53,700 Bratislava 7 Praha € 53,100 Prague Munich-Ingolstadt-Garmisch- 8 Oberbayern € 51,500 Partenkirchen 9 Île de France € 51,100 Paris 10 Stockholm € 50,400 Stockholm 11 Inner London - East € 48,700 London 12 Noord-Holland € 47,800 Amsterdam-Haarlem 13 Stuttgart € 47,200 Stuttgart 14 Darmstadt € 46,600 Frankfurt-Darmstadt-Wiesbaden 15 Hovedstaden € 46,300 Copenhagen 16 Bremen € 45,200 Bremen 17 Salzburg € 44,800 Salzburg 18 Wien € 44,700 Vienna 19 Berkshire, Buckinghamshire and Oxfordshire € 43,900 London 20 Provincia Autonoma di Bolzano/Bozen € 43,400 Bolzano 21 Utrecht € 43,300 Utrecht 22 North Eastern Scotland € 42,000 Aberdeen Source: EuroStat 23 Helsinki-Uusimaa € 41,900 Helsinki 24 Vorarlberg € 41,100 Liechtenstein Without a strong metropolitan area or urban agglomeration, a region can never grow efficiently. 25 Prov. Antwerpen € 40,500 Antwerp 26 Bucuresti - Ilfov € 40,400 Bucharest 27 28 Tirol Karlsruhe € 40,200 € 39,900 Innsbruck Karlsruhe-Ettlingen-Bruchsal A country without a network of strong metropolitan 29 Outer London - West and North West € 39,300 London areas and agglomerations cannot support long term growth. successful 30 Mittelfranken € 39,100 Nuremberg Moreover, the most dynamic metropolitan areas and urban agglomerations are also most in further attracting people and investments. Source: The World Bank 10 M ETROPOLITAN ROMAN IA W HY ARE M ETROPOLITAN AREAS AN D URBAN AGGLOM ER ATIONS S IGN I FICANT 11 The following two maps illustrate how the most densely populated regions are more productive on average than Figure 5. GDP per capita (adjusted for purchasing power) at county level (NUTS 3) in 2014 others. Moreover, regions closer to the European growth axis (an area encompassing England, the Netherlands, Belgium, West Germany, Switzerland, Austria, Northern Italy) are on average more developed than more distant ones. The farther a region from this European growth axis, the more dependent their economic performance on the presence of a metropolitan area or a major urban agglomeration. The implications for Romania and its regions are clear. Figure 4. EU population density at county level (NUTS 3) in 2015 Source: EuroStat Source: EuroStat 12 M ETROPOLITAN ROMAN IA DEV ELOPM ENT DYNAM ICS I N TH E EUROPEAN UN ION 13 Development dynamics in the European Union Against the background of population decline, the EU economy performed relatively poor over the recent years, however with significant differences across regions. Thus, regions from the new Member States saw an accelerated growth, while regions from the old Member States stagnated or even declined. Particularly the regions most remote from the European development axis and/or regions without a major metropolitan area or urban agglomeration suffered the most. The most urbanized regions in Romania (Bucharest- Ilfov, West, Centre) even managed to perform better than regions in Greece, Portugal, southern Italy or southern Spain over the past years. 14 M ETROPOLITAN ROMAN IA DEV ELOPM ENT DYNAM ICS I N TH E EUROPEAN UN ION 15 Figure 6. EU NUTS 2 regions performance in 2005, 2010 and 2015 Similar trend can also be noticed in regions from Poland, the Czech Republic, Slovakia or Hungary, where the regions which are most urbanized and/or closest to the European development axis also registered the best economic performance. What is worrying, however, is that while the Easter periphery of the European Union saw a spectacular growth, the southern, western and northern peripheries witnessed economic decline. Some regions have even declined more than 30% of the European average between 2000 and 2015. Such trends will inherently impact Easter-European regions of the EU as well. Figure 7. EU regions which declined as compared to the EU average between 2000 and 2015. Source: EuroStat The main cause behind the modest performance of the European economy lies in the population decline – particularly the population decline of the European middle class, with a dramatic loss of fertility rates among affluent people. At no other time in human history has global economic growth outpaced population growth – the increase was limited to several more performing areas. Specifically, a few regions such as Western Europe, USA or East Asia saw higher economic growth than other areas. On average, the consumption of regular people remained quite stable, Source: EuroStat although people from better-off areas consume more than the ones from poorer areas. 16 M ETROPOLITAN ROMAN IA DEV ELOPM ENT DYNAM ICS I N TH E EUROPEAN UN ION 17 This trend has deep implications on both developed and developing countries. A population decrease would also mean a shrinking of the markets. Since the population decline in developed countries mostly affects the middle class, markets are suffering an even more serious contraction. An average global citizen spent approximately USD 4,800/year in 2015; an EU citizen spent approximately USD 27,000 in the same year, while an average American citizen spent around USD 43,000. Thus, a population drop of around 1 million in the EU is tantamount with a loss of consumption of nearly EUR 27 billion (more than the GDP of 94 countries in 2016). However, in reality, the population aged 20 to 35 years old, the lifeblood of each economy, fell by 15 million people between 2000 and 2016, a trend which will severely impact the entire EU economy. Figure 8. Number of cars sold in selected countries The EU population decline, mainly the decrease of the employed middle class, will be the main obstacle hindering the future economic growth of the European Union. A smaller middle class means smaller markets, and an economy will have hardly grow when its markets are shrinking. It makes no difference how many cars, TVs, computers or espresso machines one buys, as they will eventually become saturated. Decreasing markets in the developed world are already a reality. For instance, when it comes to buying motor vehicles, one of the main products of the EU economy, the market fell dramatically over the past years. As one may see in the figure below, the number of cars sold in southern Europe dropped significantly. The little markets which grew in the past years are those from developing countries – mainly China and India. Source: International Organization of Motor Vehicle Manufacturers The negative aspects of the population decline and market shrinking will be probably felt in the next years. The figure below outlines how fertility rates in southern European countries plunged at alarming rates and remained below the replacement level for more than three decades. 18 M ETROPOLITAN ROMAN IA TH E I M PORTANCE OF MAGN ET M ETROPOLIS ES 19 Furthermore, some of the developed countries which witnessed relatively high growth over the recent years had higher fertility rates – albeit under the replacement level. Figure 9. Fertility rates in selected countries The importance of magnet metropolises Historically, economic growth has been closely related to population growth. Even if some countries had a faster productivity growth than others, overall, global productivity went hand in hand with population growth. However, some regions (mainly metropolises and urban agglomerations) produced a disproportionate share of the goods and services bought by the rest of the world. Figure 10. Economic growth has always relied on population growth. Source: The World Bank Source: Silva, Dan. 2017. Das Book on Growth and Development Note: Population represented in 1,000 people. The GDP per capita data is in million dollars at a fixed exchange rate for 1990, as per the Geary-Khamis method 20 M ETROPOLITAN ROMAN IA TH E I M PORTANCE OF MAGN ET M ETROPOLIS ES 21 Developed countries only account for 16% of the Metropolitan areas and urban agglomerations world population, but produce 68% of all products may remain growth engines for their regions and consumed in the world. countries provided they gain access to larger or In turn, developed countries are driven by several metropolitan areas and urban agglomerations. The table below shows how 45 of the 100 most developed world economies are in fact metropolitan areas. Urban agglomerations developing markets. are not included here due to lack of relevant data collected. The alternative is for them to ensure their own growth. Table 3. The largest economies in the world A city is like a living organism, and the normal cycle of each body is to grow, reach maturity, then decline. A city GDP in GDP in GDP in which stopped growing can only have one fate. # Country / metropolis # Country / metropolis # Country / metropolis bln. USD bln. USD bln. USD 0 Europa 18495 34 Washington DC (SUA) 433 68 Seattle (SUA) 235 1 SUA 15094 35 Houston (SUA) 420 69 Chile 234 2 China 7298 36 Osaka (Japonia) 471 70 Shanghai (China) 233 3 4 Japonia Germania 5869 3569 37 38 Austria Africa de Sud 417 408 71 72 Egipt Filipine 230 224 In the decades to come, cities will be competing 5 6 Franța Brazilia 2774 2476 39 40 Dallas – F Worth (SUA) Mexico City (Mexic) 401 390 73 74 Frankfurt (Germania) Irlanda 221 217 more fiercely for people. 7 Marea Britanie 2416 41 Sao Paulo (Brazilia) 390 75 Algeria 217 8 Italia 2198 42 Philadelphia (SUA) 388 76 Cehia 215 9 India 1897 43 Emiratele Arabe Unite 371 77 Sydney (Australia) 213 Where the urbanization process is not yet completed, the competition will be targeted at people who do not already 10 Rusia 1857 44 Boston (SUA) 363 78 Mumbai (India) 209 live in a metropolitan area or urban agglomeration. On the other hand, countries with mature cities will compete 11 Canada 1739 45 Buenos Aires (Argentina) 362 79 Pakistan 209 for immigrants. This competition will become more heated as the average global fertility rate dropped from nearly 12 Spania 1492 46 Tailanda 345 80 Rio de Janeiro (Brazilia) 208 5 in 1960 to 2.4 in 2016. 13 Australia 1483 47 Dallas (SUA) 338 81 Phoenix (SUA) 200 14 Tokyo (Japonia) 1479 48 Danemarca 333 82 Irak 195 Immigration is obviously a topic of great social and political relevance, and few countries have an active policy to 15 New York (SUA) 1406 49 Columbia 333 83 Minneapolis (SUA) 194 support immigration. Interestingly, in history, 16 Mexic 1154 50 Moscova (Rusia) 321 84 San Diego (SUA) 191 17 Coreea de Sud 1116 51 Hong Kong (China) 320 85 România 189 18 Indonezia 846 52 Venezuela 317 86 Kazakhstan 186 The developed countries more open towards 19 Olanda 837 53 Madrid (Spania) 308 87 Istanbul (Turcia) 182 20 Los Angeles (SUA) 792 54 Atlanta (SUA) 304 88 Barcelona (Spania) 177 immigration performed better economically than 21 Turcia 773 55 San Francisco (SUA) 301 89 Peru 176 22 Elveția 637 56 Grecia 299 90 Melbourne (Australia) 173 countries closed to immigration. 23 Arabia Saudită 576 57 Houston (SUA) 297 91 Qatar 173 24 Chicago (SUA) 574 58 Miami (SUA) 292 92 New Delhi (India) 167 25 Londra (Marea Britanie) 565 59 Seoul (Coreea de Sud) 291 93 Beijing (China) 166 26 Paris (Franța) 564 60 Malaiezia 278 94 Denver (SUA) 165 27 Suedia 537 61 Nigeria 272 95 Ucraina 165 28 Polonia 514 62 Finlanda 266 96 Noua Zeelandă 161 29 Belgia 512 63 Singapore 259 97 Kuweit 156 30 Iran 499 64 Toronto (Canada) 253 98 Manila (Filipine) 149 31 Norvegia 485 65 Detroit (SUA) 253 99 Montreal (Canada) 148 32 Taiwan 467 66 Israel 243 100 Cairo (Egipt) 145 33 Argentina 446 67 Portugalia 237 Source: www.pedroortiz.com 22 M ETROPOLITAN ROMAN IA TH E I M PORTANCE OF MAGN ET M ETROPOLIS ES 23 Table 4. Economic Complexity Index per countries JAPAN ȚARA 2010 2011 2012 2013 2014 2015 1 Japan 2.11934 2.31329 2.32408 2.37352 2.31842 2.34767 A telling example is that of Japan. In 2015, according to MIT Observatory of Economic Complexity data, Japan 2 Switzerland 1.91575 1.95964 2.01041 2.05181 1.99456 2.12416 3 South Korea 1.57505 1.70696 1.64658 1.82762 1.90646 1.97403 had the most complex economy in the world. However, for approximately two decades, the Japanese economy 4 Germany 1.88894 1.9408 1.87347 1.84608 1.81367 1.91906 seems to be in recession. 5 Singapore 1.58854 1.68651 1.70347 1.71717 1.71171 1.72081 6 Austria 1.68617 1.7891 1.71686 1.72767 1.64981 1.66445 At the end of the 90’s, Japan had a GDP per capita above that of the United States, Canada, Australia and New 7 Sweden 1.75419 1.80518 1.75179 1.75214 1.6459 1.61477 Zeeland. However, in the meanwhile, Japan was overtaken by all these countries – including by New Zeeland, whose 8 Czech Republic 1.55689 1.69489 1.68896 1.53381 1.52129 1.56023 main exports are concentrated milk, butter, sheep meat and goat meat. 9 Finland 1.67979 1.71439 1.61173 1.57477 1.49895 1.45829 10 Hungary 1.39419 1.53397 1.52192 1.43941 1.38229 1.40749 The poor performance of Japan is mainly owed to its population decline and ageing. While in the USA, Canada, 11 Slovenia 1.38479 1.46906 1.43073 1.4359 1.41088 1.39199 12 Hong Kong 0.50893 0.80165 1.09895 1.26313 1.35236 1.35536 Australia and New Zeeland, approximately 25% of the population is born in other countries, just 1.5% of the Japanese 13 United Kingdom 1.57193 1.54878 1.49378 1.45544 1.40296 1.34514 population is born outside of the Land of the Rising Sun. 14 United States 1.49428 1.49138 1.45359 1.43702 1.30167 1.32592 15 Ireland 1.33093 1.1731 1.24971 1.28901 1.22044 1.31565 16 Slovakia 1.35695 1.37252 1.3272 1.21794 1.20436 1.27947 17 Italy 1.34589 1.33488 1.31024 1.21525 1.24155 1.24787 18 France 1.45099 1.43611 1.36854 1.24155 1.15748 1.20672 19 China 0.77490 0.90990 1.00792 1.04036 1.16379 1.17107 Figure 11. Gross income per capita (Atlas method) in selected countries between 1980 and 2017 20 Israel 1.09395 1.21174 1.27127 1.22703 1.14081 1.16926 21 Thailand 0.73691 0.87084 0.964292 0.87724 0.955651 1.05247 22 Malaysia 0.58805 0.79172 0.91952 0.810485 0.828817 0.971262 23 Mexico 1.00189 1.00796 0.954246 0.846744 0.953003 0.959052 24 Belgium 1.1659 1.13515 1.04707 0.951062 0.90581 0.9484 25 Denmark 1.29129 1.2369 1.13685 0.995356 0.95349 0.885645 26 Netherlands 1.09691 0.952353 0.885129 0.818227 0.756212 0.860275 27 Poland 1.03324 1.07468 0.960828 0.817343 0.839266 0.832384 28 Romania 0.698277 0.73466 0.70694 0.751166 0.787654 0.82995 29 Croatia 0.926024 0.91927 0.92595 0.822129 0.837178 0.745808 30 Estonia 0.704934 0.746338 0.76017 0.68394 0.752262 0.738564 31 Belarus 0.675162 0.918398 0.82272 0.689295 0.731427 0.702788 32 Norway 0.635977 0.535507 0.571734 0.614676 0.667969 0.682789 33 Spain 1.01742 0.980784 0.842403 0.700457 0.701443 0.656088 34 Lithuania 0.549397 0.64032 0.722513 0.673455 0.63807 0.561721 35 Bosnia and Herzegovina 0.574773 0.592368 0.545884 0.562599 0.578374 0.486929 36 Portugal 0.706405 0.650139 0.6184 0.433862 0.4937 0.480985 37 Canada 0.703779 0.526191 0.534847 0.421886 0.411362 0.3821 38 Philippines 0.209171 0.331523 0.394726 0.341858 0.477815 0.381438 39 Latvia 0.626987 0.600318 0.571625 0.478137 0.431584 0.373305 40 Turkey 0.432695 0.42938 0.450234 0.287393 0.378481 0.364792 41 Bulgaria 0.467999 0.447953 0.497365 0.278113 0.290812 0.318417 42 Serbia 0.621737 0.590053 0.562507 0.361921 0.366673 0.316878 43 Ukraine 0.51783 0.480965 0.469842 0.28954 0.268345 0.2257 44 Tunisia 0.073213 0.233429 0.291069 0.16411 0.214778 0.163278 45 Lebanon 0.253783 0.293449 0.281872 0.107992 0.177455 0.151603 46 India 0.111379 0.091946 0.144541 -0.13459 -0.0147 0.016682 47 Costa Rica 0.10939 0.024263 0.247592 0.158575 0.093993 0.005485 Source: The World Bank 48 Jordan 0.244437 0.161675 0.216056 -0.14042 -0.01002 -0.00442 49 Russia 0.153215 0.009965 0.077047 0.048022 0.008439 -0.02679 50 Vietnam -0.3501 -0.21599 -0.10449 -0.23146 -0.12996 -0.06973 51 Brazil 0.248326 0.190826 0.161553 0.032264 -0.15123 -0.07908 52 Indonesia -0.12726 -0.1432 -0.08712 -0.16023 -0.10201 -0.08812 53 El Salvador -0.04982 -0.11734 -0.00723 -0.14517 -0.07068 -0.13322 54 Greece 0.243817 0.052732 -0.02161 -0.21038 -0.16786 -0.15753 55 South Africa 0.119045 0.016592 -0.0238 -0.19208 -0.20497 -0.18886 56 New Zealand 0.14369 0.064004 0.166665 -0.096978 -0.119421 -0.206663 … 82 Australia -0.397884 -0.516626 -0.528256 -0.816851 -0.846322 -0.763708 Source: MIT Observatory of Economic Complexity 24 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 25 EUROPEAN UNION In the European Union, the share of out-of-EU births is around 10%, which, combined with the population decline and ageing, explains the relatively poor economic performance of the past years. In spite of a large part of EU countries managing to achieve population growth thanks to an increase of life expectancy and of immigration, they did suffer losses as a whole. The young population, aged 20 to 35, decreased in almost all EU regions and was not offset by immigration. Figure 12. The EU lost more than 15 million young people (aged between 20 to 35) between 2000 and 2016 Towards more competitive metropolises in Romania Romania, like any developing country, depends on external markets to support its growth, and more particularly on markets of developed countries. Without exports, a country can barely support growth if it relies solely on its own markets. This economic reality does not need much explaining. A simple mathematical calculation suffices to understand that if a country’s population consumed X0 goods and services at a time T0, it cannot consume more goods at the moment T1 without having close commercial relationships with other countries. The main three avenues to attract additional resources from abroad are the following: exports, direct foreign investments and currency remittances of migrant workers. Out of these, exports are by far the most significant for the economic performance of a developing country. Source: EuroStat Figure 13. Main revenue sources of Romania (in bln. USD). Without a pro-active immigration policy, the European Union will not be able to maintain its medium-term competitiveness, a fact which will undoubtedly impact the Romanian economy as well, since the EU accounts for approximately 75% of all Romanian exports. The social and economic performance of Romania over the past years will depend on the extent to which local administrations will become more competitive. In order to be more competitive, Romanian cities have to become magnet cities – more specifically, they have find tools and incentives to attract as many investors and people as possible. Some of these tools and incentives are discussed below. Source: The World Bank 26 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 27 GREAT BRITAIN Figure 15. Main export markets of South Korea from 1962 to 2014 Great Britain, the first truly capitalist economy, supported its growth by exploiting available resources from its vast empire. With a relatively small population, it managed to use and trade spices from India, sugar from the Caribbean or animal skins from North America, and in time built a strong middle class, which in turn built democratic institutions to defend the interests of the middle class. In their turn, the United States of America took advantage of the preferential access to European markets (in the first half of the 19th century, more than 80% of US exports were bound for Europe) and the access to vast resources to build its economy. So did Japan, which enjoyed preferential access to the US market after the Second World War. SOUTH KOREA One of the most widely known examples of spectacular economic transformation is that of South Korea, particularly when viewed against the underdeveloped North Korea. During the 1950 - 1953 war, Korea was an underdeveloped country. The city of Seoul, for instance, had none of the characteristics of a dynamic metropolis (see the picture below). Figure 14. How Seoul changed over the course of a few years Source: MIT Observatory of Economic Complexity The South Korean economic growth was supported by its main cities. In 1960, South Korea had an urbanization degree of merely 27%, and a GDP per capita of just $150. In 2017, the urbanization degree reached 82% and a GDP per capita of $30.000. Seoul, with a population in excess of 25 million at metropolitan level, became one of the largest world economies. In 1960, North Korea was more urbanized (urbanization degree of 40%) and more developed. While South Korea enjoyed access to the large and growing markets of US and Japan, North Korea had access only to the less dynamic markets of the Communist bloc (China, USSR, etc.). There is no need to debate which economic model prevailed. In the meantime, North Korea became a closed country, with little trading relations and a weakened economy. For Romania, and for any other developing country for that matter, the lessons of the two Koreas are as clear as they can be. Without easy access to large markets, Romania will not be able to support growth by itself. At the same time, without strong metropolitan areas and urban agglomerations, the access to these markets will not materialize into development for Romania. Source: The Seoul History Museum Below is a presentation of what Romanian local administrations can do to better connect to global markets. However, after the Korean War, South Korea enjoyed a privileged relationship with the United States and Japan (one of the most important US allies after the Second World War). Therefore, the exports to the US and Japanese markets were instrumental in setting the Korean economy in motion, with more than 70% of its exports going to these two countries alone during the economic boom years. 28 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 29 How can Romanian metropolises Figure 16. Transformation of the new EU Member States’ economies ACCESS LARGE AND GROWING MARKETS It goes without saying that Romania’s accession to the European Union is probably one of the greatest political, social and economic achievements of the entire Romanian history. The effects of Romania’s EU integration are manifold and we simply do not have the space to list them here. Economically, the period around and after the EU accession is one of the most fortunate in Romanian history. The spectacular economic performance after the EU accession is owed to the access to EU markets, which now absorb more than 75% of the country’s exports. Source: MIT Observatory of Economic Complexity During this period, Romania managed to achieve one of the fastest economic growths in the world, and even Note: The data refers to exports (in US dollars) in the following three sectors: machinery, transport and chemicals. The new EU Member States included here are the following: Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, surpassed economies such as Mexico, Brazil or Columbia in terms of GDP per capita. Slovakia and Slovenia. The old EU Member States included here are the following: Belgium, Denmark, Finland, Germany, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, Great Britain. Romanian exports value increased by more than This dynamics offers a first clue on what options Romanian local administrations have to increase 20 times from 1990 to 2016 – being economic performance. one of the biggest drivers of prosperity in Romania during those years. Obviously, a mayor will have a hard time convincing others to buy the products manufactured in his or her locality, but may build a team to try to proactively attract firms which already have access to these markets. The advantages of a foreign investor are not merely the capital, the experience and the expertise they bring, but The integration of the Romanian economy into that of the EU also meant a quick transformation of national also the well-developed logistics and distribution networks, and, most importantly, access to a global network of economy along the EU economic model. If the main Romanian exports were in 1990 “lube oils”, “furniture”, “sheet customers (i.e. markets). Let’s take the example of the Dacia plant of Mioveni, which sold just 60,000 cars when metal” and “textiles”, Romania now mainly exports defining products of the EU economy – “cars and car parts”, it was bought by Renault Group, the same as in 1989. Today, it sells more than 300,000 units, out of which 85% “electrical and engineering equipment” or “electrical circuits and cables”. are exported. Moreover, a look at all the new EU member countries reveals the same thing – their economies are increasingly Ideally, mayors should attract large companies, with global distribution networks and from highly paid industries. resembling the EU economy. The companies with access to large markets can positively impact local economies by bringing major resources at local level. The companies which operate in highly paid industries will make their localities more attractive for well- trained employees. Three large sectors dominate the EU economy: 1) transports (manufacturing of cars, trains, planes, buses, ships, trams, etc.); 2) electrical and engineering equipment (washing machines, TVs, toasters, coffee makers, vacuum In a famous article, Vernon Henderson held that cities are unable to drive growth if they fail to attract private cleaners, stoves, etc.); and 3) chemicals (detergents, chemical fertilizers, pharmaceuticals, soaps, etc.). investments in high added-value industries. As a city develops, living costs will also rise, and the only way to offset this growth is to increase wages in that city. 30 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 31 In which industries should companies be attracted? What kind of companies should ‘mayors’ look for? The economic success of Bucharest owes to its attractiveness for foreign investors. Between We will try to answer this question below. Obviously, local administrations should take into account their comparative advantage. An industrial city cannot become an IT hub – not overnight at least. However, it can proactively attract 2000 and 2015, the GDP per capita of companies with easy access to current large and developing markets. In practical terms, this requires companies with access to markets from: 1. EU - the most important market for Romania 2. USA - the largest market in the world, which absorbs 25% of the global manufacturing Bucharest increased more than 4 3. East Asia - the quickest growing market in the past years times, Bucharest currently being, for all intents Attracting companies with easy access to EU markets and purposes, one of the EU growth engines, closely The foreign companies which serve EU markets were the main economic engine of Romania during the recent competing with other EU capitals. years, and the metropolitan areas which managed to attract such companies achieved the best performance in the Obviously, a city of 300,000 inhabitants will find it hard to replicate the success of a 2 million people metropolis past years. It goes without saying the most of these companies settled in Bucharest and its area of influence. The with an influence area of over 4 million inhabitants, but not impossible. What it will need to have, however, is a companies registered in the surrounding area of Bucharest (one hour drive, see the map below) generate 50% of the proactive attitude and the availability to maintain a direct and permanent dialogue with the private sector. Mayors income of all Romanian-registered companies. This area is the economic heart of the country. should begin to proactively approach investors, to learn how to entice companies which could positively impact the Figure 17. One-hour drive access area of growth poles local economy, instead of merely waiting for such companies to come to them. Figure 18. GDP per capita (PPS) in EU capitals Source: EuroStat The table below includes the largest exporters of Bucharest and of the counties which include the seven growth poles of Romania. What is immediately obvious is that among them there are several known brands, but little of these firms are among the top European companies. Out of the Fortune 500 largest global companies, the following have a Romanian presence: Honeywell, OMV, Continental, Emerson, Lukoil, Michelin, Ford, Renault, British American Tobacco, Philip Morris, Arcelor Mital, Siemens, Daimler. Source: The World Bank. 2013. Growth Poles 32 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 33 Table 5. Top exporters per county The following table includes the largest European companies – more precisely, the companies from the Global Fortune 500 list. Romanian local administrations should proactively attract companies from this list, but certainly Rank in Rank in not these companies exclusively. However, these companies have access to the largest markets and may generate County Company County Company county county a significant positive momentum for Romanian local administrations. Honeywell Technologies Sarl - Fiscal representative: 1 SC Autoliv Romania Srl 1 Honeywell Garrett Srl 2 SC Continental Powertrain Romania Srl Some of these companies (e.g., E.ON, ING, Allianz, Carrefour, Enel, Societe Generale, Metro, Auchan, UniCredit, 2 SC Omv Petrom Sa 3 SC Schaeffler Romania Srl Heineken, Unilever, Holcim, Lafarge, Veolia, Anheuser-Busch InBev, Alstom, Accenture, Delhaize, Danone) are already 3 Dis Draxlmaier Industrial Solutions Gmbh 4 SC Stabilus Romania Srl BRAȘOV 5 SC Preh Romania Srl present on the Romanian market, but to serve a local growing market firstly, and not external markets. 4 SC Nidera Romania Srl Bucharest 6 SC Premium Aerotec Srl 5 SC Adm Romania Trading Srl 7 SC Kronospan Romania Srl 6 Kazmunaygas Trading A.G. - Fiscal representative: 8 SC Hutchinson Srl Table 6. The largest companies in Europe in 2015 Kmg Rompetrol Srl 9 SC Quin Romania Srl 7 Robert Bosch Gmbh 10 SC Sit Romania Srl Rank in Global Revenue 8 SC Cargill Agricultura Srl 1 SC Michelin Romania Sa Company City Country Industry Europe rank (mil. $) 9 SC Holzindustrie Schweighofer Srl Philip Morris Italia Srl - Fiscal representative: Philip 2 1 5 Royal Dutch Shell Haga Olanda $311.870 Petroleum refining Morris Romania Srl 10 Adient Ltd. & Co.Kg 3 SC Makita Eu Srl Flextronics Manufacturing Europe Bv - Fiscal 2 7 Volkswagen Wolfsburg Germania $260.028 Cars and car parts 1 Philip Morris International Management Sa - Fiscal representative: De Flextronics Romania Srl 4 representative: Philip Morris Romania Srl 3 8 BP Londra Marea Britanie $244.582 Petroleum refining ILFOV 2 SC Continental Automotive Romania Srl 5 SC Monsanto Romania Srl 4 14 Glencore Baar Elveţia $205.476 Mining, oil processing 3 SC Continental Automotive Products Srl 6 SC Global Leather Supplier Srl 4 SC Hella Romania Srl 7 SC Monbat Recycling Srl 5 16 Daimler Stuttgart Germania $185.235 Cars and car parts TIMIȘ 5 SC Delphi Packard Romania Srl 8 SC Porsche Romania Srl 6 19 EXOR Group Amsterdam Olanda $161.677 Various financial services 9 Va Intertrading Aktiengesellschaft 6 SC Trw Automotive Safety Systems Srl 10 SC Chipita Romania Srl 7 27 AXA Paris Franţa $149.461 Insurance: life, health (stock) 7 SC Kathrein Romania Srl 1 SC De'longhi Romania Srl 8 28 Total Courbevoie Franţa $149.099 Petroleum refining 8 SC Valeo Lighting Injection Sa 2 SC Emerson Srl 9 SC Zoppas Industries Romania Srl 3 SC Ecolor Srl 9 38 Allianz Munchen Germania $123.532 Insurance: life, health (stock) 10 SC Contitech Romania Srl 4 SC Trelleborg Automotive Dej Srl 10 44 BNP Paribas Paris Franţa $117.375 Banking services 5 Xindao B.V. CLUJ 1 SC ROMPETROL RAFINARE SA 6 SC Inter Cars Romania Srl 11 49 Gazprom Moscova Rusia $111.983 Energy 2 SC DAEWOO-MANGALIA HEAVY INDUSTRIES SA 7 SC Eckerle Automotive Srl 12 50 Prudential Londra Marea Britanie $111.458 Insurance: life, health (stock) 3 SC AMEROPA GRAINS SA 8 SC Mmm Autoparts Srl 4 SC ALNASER SRL 13 51 BMW Munchen Germania $111.231 Cars and car parts 9 SC Pehart Tec Tissue Sa CONSTANȚA 5 SC MARIA TRADING SRL 10 SC Sortilemn Sa 14 59 Assicurazioni Generali Trieste Italia $100.552 Insurance: life, health (stock) 6 SC AL KASTAL CHARTERING SRL 1 SC Delphi Diesel Systems Romania Srl 15 63 Lukoil Moscova Rusia $93.897 Petroleum refining SILOTRANS SRL CONSTANTA - TAX 2 SC Arcelormittal Tubular Products Iasi Sa 7 3 SC Olimpias Mfg. Romania Srl 16 66 Siemens Munchen Germania $91.585 Industrial machinery REPRESENTATIVE FOR CHS EUROPE SA 8 SC ȘANTIERUL NAVAL CONSTANȚA SA 4 SC Ig Watteeuw Romania Srl 17 68 Carrefour Boulogne-Billancourt Franţa $91.276 Retail 5 SC Antibiotice Sa 9 SC ROJEN COMMERCE SRL IAȘI 6 SC TOLIL COMPANY SRL 18 69 Nestlé Vevey Elveţia $91.222 Consumer foods 10 SC TOLIL COMPANY SRL 7 SC Omco Romania Srl 19 75 Bosch Group Stuttgart Germania $87.997 Cars and car parts 1 SC Petrotel - Lukoil Sa 8 SC Te-Rox Prod Srl 2 SC Yazaki Romania Srl Motexco Srl - Fiscal representative: Al Seyntex Nv 20 77 Banco Santander Madrid Spania $87.401 Banking services 9 British American Tobacco Western Europe (Belgium) 21 81 Deutsche Telekom Bonn Germania $84.481 Telecommunications 3 Commercial Trading Limited - Fiscal representative: 10 SC Fondal International Srl British - American Tobacco Romania In 1 SC Ford Romania Sa 22 82 Crédit Agricole Paris Franţa $84.222 Banking services 4 SC Cameron Romania Srl 2 SC Cerealcom Dolj Srl PRAHOVA 23 83 Enel Roma Italia $84.134 Utilities 5 SC Ducati Energia Romania Sa 3 SC Cummins Generator Technologies Romania Sa 4 SC Casa Noastra Sa 24 88 Uniper Düsseldorf Germania $81.428 Energy 6 SC Timken Romania Sa 5 SC Italian Knitwear Srl DOLJ 7 Swiss Caps Ag 25 89 ENI Roma Italia $80.006 Petroleum refining 6 SC Maglierie Cristian Impex Srl 8 SC Calsonic Kansei Romania Srl 7 SC Kautex Craiova Srl 26 90 HSBC Holdings Londra Marea Britanie $79.637 Banking services Unilever Supply Chain Company Ag - Fiscal 8 SC Popeci Utilaj Greu Sa 27 94 Electricité de France Paris Franţa $78.490 Utilities 9 representative: Unilever South Central Europe Sa 9 SC E.M.W. SRL 10 SC Oztasar Srl 10 SC Vitall Srl 28 102 Tesco Welwyn Garden City Marea Britanie $75.405 Retail 29 104 Engie Courbevoie Franţa $75.279 Energy Source: INS 34 M ETROPOLITAN ROMAN IA CĂTRE M ETROPOLE MAI COM PETITI V E Î N ROMÂN IA 35 Rank in Global Revenue Rank in Global Revenue Company City Country Industry Company City Country Industry Europe rank (mil. $) Europe rank (mil. $) 30 105 Airbus Group Leiden Olanda $75.261 Aerospace and defense 68 231 Saint-Gobain Courbevoie Franţa $46.002 Construction materials, glass 31 108 Peugeot Rueil-Malmaison Franţa $73.506 Cars and car parts 69 254 E.ON Essen Germania $42.795 Energy 32 112 BASF Ludwigshafen Germania $72.677 Chemicals 70 257 Swiss Re Zurich Elveţia $42.487 Insurance: property and serious accidents (stock) 33 115 Rosneft Oil Moscova Rusia $72.028 Petroleum refining 71 262 Repsol Madrid Spania $41.863 Petroleum refining 34 118 Royal Ahold Delhaize Zaandam Olanda $70.891 Retail 72 265 SSE Perth Marea Britanie $41.383 Utilities Deutsche Post DHL 73 268 ZF Friedrichshafen Friedrichshafen Germania $41.080 Cars and car parts 35 119 Bonn Germania $70.545 Postal services Group 74 269 Metro Düsseldorf Germania $40.957 Retail 36 120 Munich Re Munchen Germania $70.143 Insurance: life, health (stock) 75 271 Sanofi Paris Franţa $40.810 Pharmaceutical products 37 121 Société Générale Paris Franţa $69.948 Banking services 76 277 Lufthansa Group Koln Germania $40.105 Air transport 38 127 ArcelorMittal Luxemburg Luxemburg $68.679 Metals 77 278 Rio Tinto Group Londra Marea Britanie $40.030 Mining, oil processing 39 134 Renault Boulogne-Billancourt Franţa $66.247 Cars and car parts 78 284 ACS Madrid Spania $39.338 Engineering, constructions 40 139 Aegon Haga Olanda $65.437 Insurance: life, health (stock) 79 286 Volvo Göteborg Suedia $39.172 Cars and car parts 41 142 Zurich Insurance Group Zurich Elveţia $63.961 Insurance: property and serious accidents (stock) 80 290 GlaxoSmithKline Brentford Marea Britanie $38.868 Pharmaceutical products 42 143 Aviva Londra Marea Britanie $63.934 Insurance: life, health (stock) 81 291 Talanx Hanovra Germania $38.603 Insurance: property and serious accidents (stock) 43 150 Equinor Stavanger Norvegia $61.187 Petroleum refining 82 298 Fresenius Bad Homburg Germania $38.197 Healthcare: Medical equipment 44 151 Groupe BPCE Paris Franţa $61.128 Banking services 83 303 Sainsbury (J.) Londra Marea Britanie $37.711 Retail 45 156 Auchan Holding Croix Franţa $60.028 Retail 84 304 Poste Italiane Roma Italia $37.695 Insurance: life, health (stock) 46 158 Vodafone Group Newbury Marea Britanie $59.838 Telecommunications 85 305 Maersk Group Copenhaga Danemarca $37.500 Maritime shipping 47 164 Telefónica Madrid Spania $58.624 Telecommunications 86 306 UBS Group Zurich Elveţia $37.317 Banking services 48 169 Roche Group Basel Elveţia $56.634 Pharmaceutical products 87 307 Bouygues Paris Franţa $37.259 Engineering, constructions 49 170 Anheuser-Busch InBev Leuven Belgia $56.444 Beverages 88 310 Edeka Zentrale Hamburg Germania $37.125 Wholesalers: Food and groceries 50 171 ING Group Amsterdam Olanda $56.347 Banking services 89 316 Accenture Dublin Irlanda $36.766 IT services 51 172 Legal & General Group Londra Marea Britanie $55.999 Insurance: life, health (stock) 90 318 Centrica Windsor Marea Britanie $36.083 Utilities 52 173 Louis Dreyfus Rotterdam Olanda $55.440 Food production 91 320 SNCF St Denis Franţa $35.880 Rail transport services 53 189 Lloyds Banking Group Londra Marea Britanie $52.422 Banking services 92 324 Intesa Sanpaolo Torino Italia $35.752 Banking services 54 193 Bayer Leverkusen Germania $51.933 Pharmaceutical products 93 330 Iberdrola Bilbao Spania $35.240 Utilities 55 196 Finatis Paris Franţa $51.578 Retail 94 336 Barclays Londra Marea Britanie $34.507 Banking services 56 201 CNP Assurances Paris Franţa $50.737 Insurance: life, health (stock) 95 338 LyondellBasell Industries Rotterdam Olanda $34.484 Chemicals 57 203 Novartis Basel Elveţia $50.135 Pharmaceutical products 96 341 ABB Zurich Elveţia $34.312 Industrial machinery 58 205 Sberbank Moscova Rusia $49.698 Banking services 97 355 DZ Bank Frankfurt Germania $33.563 Banking services 59 206 Continental Hanovra Germania $49.608 Cars and car parts 98 366 Chubb Zurich Elveţia $32.243 Insurance: property and serious accidents (stock) 60 208 Dior (Christian) Paris Franţa $49.221 Textiles 99 373 Credit Suisse Group Zurich Elveţia $31.900 Banking services 61 211 Deutsche Bahn Berlin Germania $48.124 Rail transport services 100 377 BT Group Londra Marea Britanie $31.439 Telecommunications 62 214 RWE Essen Germania $47.832 Utilities 101 382 CRH Dublin Irlanda $31.069 Construction materials, glass 63 218 ThyssenKrupp Essen Germania $47.389 Metals Johnson Controls 102 389 Plută Irlanda $30.172 Industrial machinery 64 223 Deutsche Bank Frankfurt Germania $46.511 Banking services International Banco Bilbao Vizcaya 103 392 L'Oréal Clichy Franţa $29.926 Home appliances 65 224 Bilbao Spania $46.508 Banking services Argentaria 104 396 Medtronic Dublin Irlanda $29.710 Medical products and equipment 66 225 Orange Paris Franţa $46.324 Telecommunications 105 402 UniCredit Group Milano Italia $29.257 Banking services 67 226 Vinci Rueil-Malmaison Franţa $46.302 Engineering, constructions 36 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 37 Rank in Global Revenue The companies focusing on resource exploitation invest where they find available resources to exploit. The map Company City Country Industry Europe rank (mil. $) below includes the resource exploitation sites and the companies which were leased those exploitation sites. The 106 406 Air France-KLM Group Paris Franţa $29.064 Air transport Black Sea area is currently of particular interest, as significant resources of natural gas have been found in that area, and exploitations sites have been leased to Exxon Mobil, OMV or Lukoil. These new investments may prove 107 408 Inditex Arteixo Spania $28.887 Specialized traders beneficial for both the Constanța Metropolitan Area and the entire country as a whole, although greater attention 108 412 Coop Group Basel Elveţia $28.601 Retail has to be paid to high added-value sectors. 109 413 Compass Group Chertsey Marea Britanie $28.578 Miscellaneous 110 415 Migros Group Zurich Elveţia $28.518 Retail Figure 19. Exploitation sites and operators in Romania 111 417 Phoenix Pharma Mannheim Germania $28.401 Wholesalers: Healthcare 112 419 Veolia Environnement Paris Franţa $28.321 Utilities 113 423 Royal Philips Amsterdam Olanda $28.071 Medical products and equipment 114 424 Schneider Electric Rueil-Malmaison Franţa $27.891 Electronics and electrical equipment 115 426 Danone Paris Franţa $27.816 Consumer foods 116 429 Gas Natural Fenosa Madrid Spania $27.653 Utilities 117 434 La Poste Paris Franţa $27.177 Postal services 118 435 Koç Holding Istambul Turcia $27.108 Energy 119 439 Mapfre Group Madrid Spania $26.817 Insurance: property and serious accidents (stock) 120 441 Adecco Group Zurich Elveţia $26.670 Human resources and employment 121 444 LafargeHolcim Jona Elveţia $26.545 Construction materials, glass 122 445 Altice Amsterdam Olanda $26.489 Telecommunications 123 446 SAP Walldorf Germania $26.446 Software 124 449 Anglo American Londra Marea Britanie $26.243 Mining, oil processing 125 450 Randstad Holding Diemen Olanda $26.234 Human resources and employment British American 126 453 Londra Marea Britanie $26.128 Tobacco Tobacco International Airlines 127 460 Harmondsworth Marea Britanie $25.894 Air transport Group 128 469 PKN ORLEN Group Plock Polonia $25.256 Petroleum refining 129 472 Achmea Zeist Olanda $24.872 Insurance: life, health (mutual) 130 475 Heineken Holding Amsterdam Olanda $24.831 Beverages Energie Baden- 131 477 Karlsruhe Germania $24.769 Utilities Württemberg Source: data processing / map from the National Agency for Mneral resorces 132 478 Michelin Clermont-Ferrand Franţa $24.754 Cars and car parts 133 480 Adidas Herzogenaurach Germania $24.669 Textiles The Romanian local administrations should start a dialogue with major European companies which are already present on the domestic market (such as Bosch or Daimler) or which have not yet established a local presence. 134 482 Heraeus Holding Hanau Germania $24.622 Metals 135 486 Ceconomy Düsseldorf Germania $24.432 Specialized traders Among these are a few companies which if present in Romania, would mainly address export markets: 136 491 Boehringer Ingelheim Ingelheim Germania $23.888 Pharmaceutical products 137 492 Rabobank Utrecht Olanda $23.812 Banking services Volkswagen Glencore BASF 138 498 BAE Systems Londra Marea Britanie $23.592 Aerospace and defense BMW Thyssen Krupp Bayer Other network and communications Peugeot Volvo GlaxoSmithKline 139 500 Ericsson Stockholm Suedia $23.556 equipment ABB Christian Dior Schneider Electric TUI Adidas Fresenius Source: Fortune Global 500 Lyondell Basell Industries Phoenix Pharma Royal Philips Boehringer Ingelheim BAE Systems 38 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 39 It suffices to take a look at the car production in various EU countries to see whether Romania still has room for growth and it is worthwhile to attract large European companies from key EU industrial sectors. It is very important for Romanian local administrations According to the International Organization of Motor Vehicle Manufacturers, Romania produced approximately to have teams that are specialised in attracting 360,000 motor vehicles in 2017. In the same year, the Czech Republic manufactured more than 1,400,000 motor vehicles, Slovakia more than 1,000,000, Poland and Hungary more than 500,000. As such, in this sector alone, investors. A particular attention should be paid to companies such as: which is essential for the EU economy, Romania still has potential for growth. General Electric Hewlett-Packard Apple Procter & Gamble Boeing Dell To support growth, Romanian metropolitan areas Intel Merck Disney should connect to as many large external markets Pfizer General Motors Walt Disney 3M Time Warner Northrop Grumman as possible. The easiest way to connect to such markets is by means of multinational companies, with global Raytheon Halliburton Xerox Lockheed Martin distribution networks and access to customers in multiple countries. The large European companies are the easiest to attract and were the main investors in past years, and those which Romanian local administrations should try harder to engage. How to initiate and sustain such a dialogue is a Table 7. The largest US companies in 2018 matter for discussion in a separate chapter. Rank in Global Revenue Company City State Industry Europe rank (mil. $) 1 1 Walmart Bentonville Arkansas $500.343 Retail Attracting companies with easy access to US markets 2 3 9 10 Exxon Mobil Berkshire Hathaway Irving Omaha Texas Nebraska $244.363 Petroleum refining $242.137 Insurance: property and serious accidents (stock) 4 11 Apple Cupertino California $229.234 Computers, peripherals The United States is the largest global market, but also a market which Romania did not easily access in the past years. 5 13 McKesson San Francisco California $208.357 Wholesalers: Healthcare 6 15 UnitedHealth Group Minnetonka Minnesota $201.159 Healthcare: Insurance and healthcare 7 17 CVS Health Woonsocket Rhode Island $184.765 Healthcare: Pharmacy and other services In 2016, just approximately 2.9% of Romania’s 8 18 Amazon.com Seattle Washington $177.866 Internet services and retail 9 20 AT&T Dallas Texas $160.546 Telecommunications exports (around $1.89 billion) were bound for the 10 21 General Motors Detroit Michigan $157.311 Cars and car parts 11 22 Ford Motor Dearborn Michigan $156.776 Cars and car parts US – a relatively modest share when considering 12 13 25 33 AmerisourceBergen Chevron Chesterbrook San Ramon Pennsylvania California $153.144 $134.533 Wholesalers: Healthcare Petroleum refining the global scale of the American market. 14 34 Cardinal Health Dublin Ohio $129.976 Wholesalers: Healthcare 15 35 Costco Wholesale Issaquah Washington $129.025 Retail 16 37 Verizon Communications New York New York $126.034 Telecommunications However, the exports of goods have been mainly generated in high added-value sectors such as: “phones”, “electrical 17 39 Kroger Cincinnati Ohio $122.662 Pharmacy panels”, “gas turbines”, “video monitors”, or “tyres”. 18 41 General Electric Boston Massachusetts $122.274 Industrial machinery 19 43 Walgreens Boots Alliance Deerfield Illinois $118.214 Pharmacy American companies have a rather low presence in Romania. Even if companies such as Microsoft, Google, Oracle 20 47 JPMorgan Chase & Co. New York New York $113.899 Banking services or Amazon have a local presence, they are not significantly represented and are here rather to serve the national or regional market. Companies such as Ford, Honeywell, Philip Morris or Emerson are among the largest Romanian District of 21 48 Fannie Mae Washington $112.394 Various financial services Columbia exporters, but there are many more global American companies without a presence in Romania, or which maintain 22 52 Alphabet Mountain View California $110.855 Internet services and retail no more than sales points in our country. Attracting American companies to Romania requires more effort than for European companies, since the American companies research investment opportunities at global level and pay 23 57 Home Depot Atlanta Georgia $100.904 Specialized traders attention to a multitude of criteria. 40 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 41 Rank in Global Revenue Rank in Global Revenue Company City State Industry Company City State Industry Europe rank (mil. $) Europe rank (mil. $) 24 60 Bank of America Corp. Charlotte North Carolina $100.264 Banking services 63 215 HCA Healthcare Nashville Tennessee $47.653 Healthcare: Medical equipment 25 61 Express Scripts Holding St Louis Missouri $100.065 Healthcare: Pharmacy and other services 64 217 Energy Transfer Equity Dallas Texas $47.487 Pipeline transport 26 62 Wells Fargo San Francisco California $97.741 Banking services 65 233 Bunge White Plains New York $45.794 Food production 27 64 Boeing Chicago Illinois $93.392 Aerospace and defense 66 238 Caterpillar Deerfield Illinois $45.462 Construction and farming machinery 28 67 Phillips 66 Houston Texas $91.568 Petroleum refining Insurance: property and serious accidents 67 247 Nationwide Columbus Ohio $43.940 (mutual) 29 70 Anthem Indianapolis Indiana $90.039 Healthcare: Insurance and healthcare 68 249 Morgan Stanley New York New York $43.642 Banking services 30 71 Microsoft Redmond Washington $89.950 Software 69 255 Liberty Mutual Insurance Group Boston Massachusetts $42.687 Insurance: property and serious accidents (stock) 31 74 Valero Energy San Antonio Texas $88.407 Petroleum refining 70 258 New York Life Insurance New York New York $42.296 Insurance: life, health (mutual) 32 76 Citigroup New York New York $87.966 Banking services 71 259 Goldman Sachs Group New York New York $42.254 Banking services 33 80 Comcast Philadelphia Pennsylvania $84.526 Telecommunications 72 260 American Airlines Group Fort Worth Texas $42.207 Air transport International Business 34 92 Armonk New York $79.139 IT services Machines 73 263 Cigna Bloomfield Connecticut $41.616 Healthcare: Insurance and healthcare 35 93 Dell Technologies Round Rock Texas $78.660 Computers, peripherals 74 264 Charter Communications Stamford Connecticut $41.581 Telecommunications Insurance: property and serious accidents 75 266 Delta Air Lines Atlanta Georgia $41.244 Air transport 36 95 State Farm Insurance Cos. Bloomington Illinois $78.331 (mutual) 76 274 Facebook Menlo Park California $40.653 Internet services and retail 37 100 Johnson & Johnson New Brunswick New Jersey $76.450 Pharmaceutical products 77 275 Honeywell International Morris Plains New Jersey $40.534 Electronics and electrical equipment 38 106 Freddie Mac McLean Virginia $74.676 Various financial services 78 276 Merck Kenilworth New Jersey $40.122 Pharmaceutical products 39 116 Target Minneapolis Minnesota $71.879 Retail 79 293 Allstate Northbrook Illinois $38.524 Insurance: property and serious accidents (stock) District of 40 123 U.S. Postal Service Washington $69.636 Postal services 80 297 Tyson Foods Springdale Arkansas $38.260 Food production Columbia 41 128 Lowe's Mooresville North Carolina $68.619 Specialized traders 81 301 United Continental Holdings Chicago Illinois $37.736 Air transport 42 131 Marathon Petroleum Findlay Ohio $67.610 Petroleum refining 82 302 Oracle Redwood City California $37.728 Software 43 136 MetLife New York New York $66.153 Insurance: life, health (stock) 83 319 TIAA New York New York $36.025 Insurance: life, health (mutual) 44 138 United Parcel Service Atlanta Georgia $65.872 Postal services 84 321 TJX Framingham Massachusetts $35.865 Specialized traders 45 144 PepsiCo Purchase New York $63.525 Consumer foods 85 327 American Express New York New York $35.583 Various financial services 46 146 Intel Santa Clara California $62.761 Semiconductors and other electronic parts 86 328 Coca-Cola Atlanta Georgia $35.410 Beverages 47 147 DowDuPont Midland Delaware $62.683 Chemicals 87 334 Publix Super Markets lakeland Florida $34.837 Retail 48 152 Archer Daniels Midland Chicago Illinois $60.828 Food production 88 340 Nike Beaverton Oregon $34.350 Textiles 49 154 Aetna Hartford Connecticut $60.535 Healthcare: Insurance and healthcare 89 344 Andeavor San Antonio Texas $34.204 Petroleum refining 50 155 FedEx Memphis Tennessee $60.319 Postal services 90 351 World Fuel Services Miami Florida $33.696 Energy 51 157 Albertsons Cos. Boise Idaho $59.925 Retail 91 356 Exelon Chicago Illinois $33.531 Utilities 52 159 United Technologies Farmington Connecticut $59.837 Aerospace and defence 92 357 Massachusetts Mutual Life Springfield Massachusetts $33.495 Insurance: life, health (mutual) 53 160 Prudential Financial Newark New Jersey $59.689 Insurance: life, health (stock) 93 363 ConocoPhillips Houston Texas $32.584 Mining, oil processing 54 174 Sysco Houston Texas $55.371 Wholesalers: Food and groceries Inver Grove 94 372 CHS Minnesota $31.935 Food production Heights 55 176 Disney (Walt) Burbank California $55.137 Entertainment 95 376 3M Sfântul Paul Minnesota $31.657 Miscellaneous 56 183 Humana Louisville Kentucky $53.767 Healthcare: Insurance and healthcare 96 379 Time Warner New York New York $31.271 Entertainment 57 187 Pfizer New York New York $52.546 Pharmaceutical products 97 383 General Dynamics Falls Church Virginia $30.973 Aerospace and defense 58 190 HP Palo Alto California $52.056 Computers, peripherals 98 386 Schlumberger Houston Texas $30.440 Miscellaneous 59 200 Lockheed Martin Bethesda Maryland $51.048 Aerospace and defense 99 387 Rite Aid Camp Hill Pennsylvania $30.215 Retail 60 207 American International Group New York New York $49.520 Insurance: property and serious accidents (stock) 100 390 United Services Auto. Assn. San Antonio Texas $30.016 Insurance: property and serious accidents (stock) 61 210 Centene St Louis Missouri $48.572 Healthcare: Insurance and healthcare 101 391 Capital One Financial McLean Virginia $29.999 Banking services 62 212 Cisco Systems San Jose California $48.005 Other network and communications equipment 102 394 Deere Moline Illinois $29.738 Construction and farming machinery 42 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 43 Rank in Global Europe rank Company City State Revenue (mil. $) Industry The connection to the US market is important not 103 104 400 401 INTL Fcstone Northwestern Mutual New York Milwaukee New York Wisconsin $29.424 $29.331 Various financial services Insurance: life, health (mutual) only in view of its size, but particularly of the fact 105 403 Enterprise Products Houston Texas $29.242 Pipeline transport the US generate the highest share of disruptive innovations that determine the overall direction 106 407 Travelers Cos. New York New York $28.902 Insurance: property and serious accidents (stock) 107 409 Hewlett Packard Enterprise Palo Alto California $28.871 Computers, peripherals 108 109 411 416 Philip Morris International Twenty-First Century Fox New York New York New York New York $28.748 $28.500 Tobacco Entertainment of the global economy. 110 422 AbbVie North Chicago Illinois $28.216 Pharmaceutical products No other country manage to emulate the success of the US in bringing disruptive innovations, and there are little 111 433 Abbott Laboratories Abbott Park Illinois $27.390 Medical products and equipment chances others will in the near future. For this reason, a presence of innovative American companies in Romania 112 437 Progressive Mayfield Village Ohio $26.839 Insurance: property and serious accidents (stock) can set the stage for a quicker and more efficient adaptation of these innovations to the Romanian market. 113 451 Kraft Heinz Pittsburgh Pennsylvania $26.232 Consumer foods 114 452 Plains GP Holdings Houston Texas $26.223 Pipeline transport As shown in the table below, Europe specializes in industries with medium research and development intensity, while the US is specialized in high research and development intensive industries. Europe generates marginal innovations 115 455 Gilead Sciences Foster City California $26.107 Pharmaceutical products (a more effective engine, for instance), in fields in which it already holds a competitive advantage (such as the 116 459 Mondelez International Deerfield Illinois $25.896 Consumer foods automotive industry), while the US bring disruptive innovations in new fields (such as software). 117 461 Northrop Grumman Falls Church Virginia $25.803 Aerospace and defense 118 467 Raytheon Waltham Massachusetts $25.348 Aerospace and defense 119 473 Macy's Cincinnati Ohio $24.837 Retail Table 8. Relative technological advance (RTA) ratios per industry, 2007 120 484 DXC Technology Tysons Virginia $24.556 IT services Europa SUA 121 488 US Foods Holding Rosemont Illinois $24.147 Wholesalers: Food and groceries Aerospace and defense 1,5 1,13 122 490 U.S. Bancorp Minneapolis Minnesota $23.996 Banking services Cars and car parts 1,26 0,58 Source: Fortune Global 500 Biotechnology 0,32 2,2 Products of the chemical industry 1,31 0,64 Commercial vehicles and trucks 1,3 1,06 IRELAND Hardware and IT services 0,08 1,39 Electrical components and equipment 1,56 0,18 Electronic and electronic office equipment 0,18 0,37 A good example to follow for Romania is that of Ireland. In 1973, at the time when it joined the EU, Ireland was Fixed and mobile telecommunications 1,53 0,2 one of the poorest countries in the Union, with a GDP per capita at merely 75% of the EU average. Meanwhile, Food, beverages and tobacco 0,92 0,74 Ireland became one of the highest performing countries in the world and the second most productive EU economy General industrial equipment 0,61 1,49 after Luxembourg. Ireland’s GDP per capita is now twice higher than the EU average. Ireland’s performance stands Healthcare equipment and services 0,7 1,86 somehow in contrast with the more modest performance of countries such as Greece, Portugal, Spain or Italy, which Home appliances 0,84 1,6 meanwhile reached GDPs per capita below the EU average. Industrial machinery 1,84 0,24 Industrial metals 1 0,3 To a large extent, Ireland’s owes its chance to the country’s welcoming of foreign investors and to its large and Internet 0 2,54 active Irish community in the US. Over the past years, companies such as Microsoft, Intel, Apple, Facebook or Oracle Petroleum products 1 0,85 chose Ireland to expand their EU presence. These five companies together produce double the Romania’s GDP in Personal care goods 1,44 0,69 Ireland. It does not require too much effort to imagine what the presence of companies such as Microsoft, Intel, Pharmaceutical products 1,27 1,16 Apple, Facebook and Oracle would mean to Romania if it were at the same level as in Ireland. Of course, we would Semiconductors 0,5 1,72 have to consider what Ireland has to offer to such companies (e.g. highly educated, English-speaking population) Software 0,51 2,05 versus what Romania could offer. To that extent, we will also discuss about the advantages and drawbacks of Support services 0,78 1,19 metropolitan areas in Romania. Telecommunications equipment 1,38 1,09 Source: World Bank. 2012. Golden Growth: Restoring the lustre of the European economic model Note: The relative technological advance is calculated as the ratio between the research and development activities in a specific industry and the research and development activities as a whole in the respective country or region. A relative technological advantage ratio below 1 means the respective region/country is technologically specialized in the respective industry. Japan and the rest of the world are not included due to the insufficient observations regarding the breakdown across different industries. The innovation-based growth industries are emphasized with bold and italic characters. 44 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 45 The advantage of the US versus Europe is that it has a homogeneous market and a common language and culture. If we examined, for instance, the global sales of cars, we would see the EU and US markets did not grow in the Thus, an innovation originating in California can be easily tested in any American university. On the other hand, an past years. On the other hand, the sales of motor vehicles in China grew from around 5.75 million units in 2005 to innovation originating in Spain cannot be as easily tested in a Finnish university – the language, culture, and patent nearly 30 million units in 2017. Currently, China is the largest market for motor vehicles in the world, outranking registration differences would make this quite difficult. the US and the EU in this respect. Obviously, the fact that many motor vehicles are bought in China does not mean that Romanian car manufacturers will easily enter this market – particularly since many other car manufacturers Moreover, if Spain were to generate an innovation as disruptive as the iPhone, the type of innovation which nearly are already present with own production facilities on the Chinese market. However, these figures show the Chinese wiped Nokia off the mobile phone market, this would lead to political and social tensions quite difficult to overcome. The fact that the California-based iPhone almost bankrupted the Illinois-based Motorola is easier to accept in the market is growing at a quick pace, a fact that Romanian authorities should be aware of. US, since the added value remained within the same borders. On the other hand, if an innovation in an EU country caused a recession in another EU country, the arising tensions would be much higher. Figure 21. Motor vehicle sales in various countries / regions Presently, the US is best placed to bring disruptive innovations. To keep the pace with such innovations, Romanian cities need to be better connected to American markets and have to use all the comparative advantages (for instance, the performance in the IT sector) to secure the strongest connections possible. Attracting companies with easy access to East Asia markets The US and the EU together account for approximately half of the global consumption. The access to these two markets is vital for Romanian metropolises. The recent development of Romanian cities was made possible by the very access to EU markets and the massive investments of European companies in Romania. The access to the US market, particularly in terms of connecting to companies which bring disruptive innovation and set the stage for tomorrow’s evolution, is also critically important for sustaining the performance of the Romanian economy. However, it will be increasingly important for Romania to connect with the East Asian market. In 1970, East Asia’s share in the global consumption was just 11%. In 2016, this share reached 25%, particularly against the background of the fast growing Chinese economy, and is currently above the EU’s share at global level. Today, East Asia is the region with the highest increase in consumption at world level. It is paramount for metropolitan areas to assess the potential opportunities created by such markets. Source: International Organization of Motor Vehicle Manufacturers Figure 20. Share in the global consumption per regions Besides the Chinese market, other multinational companies of East Asia should also be taken into account, notably from Japan and South Korea, which currently serve global markets. The table below includes the largest East Asia companies. Some of the companies which would be worth attracting locally in Romania, particularly with production facilities, include the following: Samsung Hitachi Nissan Panasonic Sony Toshiba Mitsubishi Hyundai Fujitsu Marubeni Itoku LG Kia Suzuki Huawei Sharp Lenovo Mazda Komatsu A large share of the companies with access to global markets are from Japan and South Korea. Since both Japan and South Korea have very active embassies in Romania and are proactively seeking to enable dialogue with Japanese and Korean companies, it is essential for Romanian local administrations to have close relations with such embassies. Source: The World Bank 46 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 47 Table 9. Largest East-Asian companies, 2018 Rank in Global Revenue Rank in Global Revenue Company City Country Industry Company City Country Industry Europe rank (mil. $) Europe rank (mil. $) 1 2 State Grid Beijing China $348.903 Utilities 40 111 Amer International Group Shenzhen China $72.766 Metals 2 3 Sinopec Group Beijing China $326.953 Petroleum refining 41 113 China Post Group Beijing China $72.197 Postal services 3 4 China National Petroleum Beijing China $326.008 Petroleum refining 42 114 Panasonic Osaka Japonia $72.045 Electronics and electrical equipment 4 6 Toyota Motor Toyota Japonia $265.172 Cars and car parts Insurance: property and serious acci- 43 117 People's Insurance Co. of China Beijing China $71.579 5 12 Samsung Electronics Suwon Coreea de Sud $211.940 Electronics and electrical equipment dents (stock) China State Construction Engi- 44 122 COFCO Beijing China $69.669 Retail 6 23 Beijing China $156.071 Engineering, constructions neering 45 124 Beijing Automotive Group Beijing China $69.591 Cars and car parts 7 24 Hon Hai Precision Industry New Taipei City Taiwan $154.699 Electronics and electrical equipment 46 125 China FAW Group Changchun China $69.524 Cars and car parts Industrial & Commercial Bank of 8 26 Beijing China $153.021 Banking services 47 126 Nippon Life Insurance Osaka Japonia $68.684 Insurance: life, health (mutual) China 9 29 Ping An Insurance Shenzhen China $144.197 Insurance: life, health (stock) 48 129 Mitsubishi Tokyo Japonia $68.301 Retail 10 30 Honda Motor Tokyo Japonia $138.646 Cars and car parts 49 130 Marubeni Tokyo Japonia $68.057 Retail 11 31 China Construction Bank Beijing China $138.594 Banking services 50 132 Tewoo Group Tianjin China $66.577 Retail 12 32 Trafigura Group Singapore Singapore $136.421 Retail 51 140 China North Industries Beijing China $64.646 Aerospace and defense 13 36 SAIC Motor Shanghai China $128.819 Cars and car parts 52 141 China Telecommunications Beijing China $63.974 Telecommunications 14 40 Agricultural Bank of China Beijing China $122.366 Banking services 53 145 Dai-ichi Life Tokyo Japonia $63.522 Insurance: life, health (stock) 15 42 China Life Insurance Beijing China $120.224 Insurance: life, health (stock) 54 149 CITIC Group Beijing China $61.316 Various financial services 16 45 Japan Post Holdings Tokyo Japonia $116.616 Insurance: life, health (stock) 55 161 Aviation Industry Corp. of China Beijing China $59.263 Aerospace and defense 17 46 Bank of China Beijing China $115.423 Banking services 56 162 China Baowu Steel Group Shanghai China $59.255 Metals 18 53 China Mobile Communications Beijing China $110.159 Telecommunications 57 165 Toyota Tsusho Nagoya Japonia $58.586 Retail 19 54 Nissan Motor Yokohama Japonia $107.868 Cars and car parts 58 167 ChemChina Beijing China $57.989 Chemicals 20 55 Nippon Tel. & Tel. Tokyo Japonia $106.500 Telecommunications 59 168 Bank of Communications Shanghai China $57.711 Banking services 21 56 China Railway Engineering Beijing China $102.767 Engineering, constructions 60 177 Mitsubishi UFJ Financial Group Tokyo Japonia $54.769 Banking services 22 58 China Railway Construction Beijing China $100.855 Engineering, constructions 61 178 LG Electronics Seul Coreea de Sud $54.314 Electronics and electrical equipment 23 65 Dongfeng Motor Wuhan China $93.294 Cars and car parts 62 179 Seven & I Holdings Tokyo Japonia $54.217 Retail Other network and communications 24 72 Huawei Investment & Holding Shenzhen China $89.311 63 181 JD.com Beijing China $53.965 Internet services and retail equipment 25 78 Hyundai Motor Seul Coreea de Sud $85.259 Cars and car parts 64 182 PowerChina Beijing China $53.870 Engineering, constructions 26 79 Hitachi Tokyo Japonia $84.559 Electronics and electrical equipment 65 184 POSCO Seul Coreea de Sud $53.244 Metals 27 84 SK Holdings Seul Coreea de Sud $83.544 Petroleum refining 66 185 Shandong Weiqiao Pioneering Shandong China $53.203 Textiles 28 85 SoftBank Group Tokyo Japonia $82.665 Telecommunications 67 186 Tokyo Electric Power Tokyo Japonia $52.809 Utilities 29 86 China Resources Hong Kong China $82.184 Pharmaceutical products 68 188 Korea Electric Power Jeollanam-do Coreea de Sud $52.492 Utilities 30 87 China National Offshore Oil Beijing China $81.482 Mining, oil processing 69 191 Petronas Kuala Lumpur Malaezia $52.028 Petroleum refining China Communications Construc- 70 192 Sumitomo Mitsui Financial Group Tokyo Japonia $52.026 Banking services 31 91 Beijing China $79.417 Inginerie, Constructii tion 71 194 Sinopharm Beijing China $51.844 Pharmaceutical products 32 96 Pacific Construction Group Urumqi China $77.205 Inginerie, Constructii 72 198 Nippon Steel & Sumitomo Metal Tokyo Japonia $51.164 Metals 33 97 Sony Tokyo Japonia $77.116 Electronice și Echipamente electrice Guangzhou Automobile Industry 34 98 Sinochem Beijing China $76.765 Retail 73 202 Guangzhou China $50.323 Cars and car parts Group 35 99 JXTG Holdings Tokyo Japonia $76.629 Rafinarea petrolului 74 204 Itochu Osaka Japonia $49.732 Retail 36 101 China Energy Investment Beijing China $75.522 Minerit, Procesarea țițeiului Insurance: property and serious acci- 75 209 Tokio Marine Holdings Tokyo Japonia $48.731 37 103 AEON Chiba Japonia $75.339 Retail dents (stock) 38 109 China Minmetals Beijing China $72.997 Metale 76 213 China Merchants Bank Shenzhen China $47.951 Banking services 39 110 China Southern Power Grid Guangzhou China $72.787 Utilități 77 219 Kia Motors Seul Coreea de Sud $47.360 Cars and car parts 48 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 49 Rank in Global Revenue Rank in Global Revenue Company City Country Industry Company City Country Industry Europe rank (mil. $) Europe rank (mil. $) 78 220 China Pacific Insurance Shanghai China $47.319 Insurance: life, health (stock) 117 322 China Everbright Group Beijing China $35.840 Banking services Insurance: property and serious acci- 118 323 Midea Group Foshan China $35.794 Electronics and electrical equipment 79 221 MS&AD Insurance Tokyo Japonia $47.095 dents (stock) 119 326 Toshiba Tokyo Japonia $35.630 Electronics and electrical equipment 80 222 Aluminum Corp. of China Beijing China $46.684 Metals 120 329 Aisin Seiki Kariya Japonia $35.281 Cars and car parts 81 227 Shanghai Pudong Devel. Bank Shanghai China $46.295 Banking services 121 331 Tencent Holdings Shenzhen China $35.179 Internet services and retail 82 229 Denso Kariya Japonia $46.106 Cars and car parts 122 332 China Vanke Shenzhen China $35.117 Real estate services 83 230 China Evergrande Group Shenzen China $46.019 Real estate services 123 333 China Energy Engineering Beijing China $35.048 Engineering, constructions 84 234 Shandong Energy Group Jinan China $45.650 Mining, oil processing 124 335 China COSCO Shipping Shanghai China $34.668 Maritime shipping 85 235 Hengli Group Suzhou City China $45.563 Textiles 125 339 Noble Group Hong Kong China $34.421 Retail 86 236 KDDI Tokyo Japonia $45.508 Telecommunications 126 342 Daiwa House Industry Osaka Japonia $34.262 Engineering, constructions 87 237 Industrial Bank Fuzhou China $45.491 Banking services China Aerospace Science & 127 343 Beijing China $34.254 Aerospace and defense 88 239 HBIS Group Shijiazhuang China $45.390 Metals Technology 89 240 Lenovo Group Hong Kong China $45.350 Computers, peripherals China Aerospace Science & 128 346 Beijing China $34.073 Aerospace and defense Industry 90 242 China South Industries Group Beijing China $44.785 Aerospace and defense Insurance: property and serious acci- China National Bldg. Material 129 347 Sompo Holdings Tokyo Japonia $34.028 91 243 Beijing China $44.701 Construction materials, glass dents (stock) Group 130 348 Suzuki Motor Hamamatsu Japonia $33.912 Cars and car parts 92 244 Hanwha Seul Coreea de Sud $44.590 Insurance: life, health (stock) 131 350 Sumitomo Life Insurance Osaka Japonia $33.821 Insurance: life, health (mutual) 93 245 China Shipbuilding Industry Beijing China $44.431 Maritime shipping 132 352 Mitsubishi Chemical Holdings Tokyo Japonia $33.616 Chemicals 94 246 Mitsui Tokyo Japonia $44.155 Retail 133 353 Country Garden Holdings Foshan China $33.572 Real estate services 95 248 Wilmar International Singapore Singapore $43.846 Food production 134 354 Quanta Computer Taoyuan Taiwan $33.564 Computers, peripherals 96 250 Sumitomo Tokyo Japonia $43.570 Retail 135 358 JFE Holdings Tokyo Japonia $33.202 Metals 97 251 China Minsheng Banking Beijing China $43.298 Banking services 136 359 Jizhong Energy Group Xingtai China $33.188 Mining, oil processing 98 252 Greenland Holding Group Shanghai China $42.970 Real estate services 137 360 Xiamen ITG Holding Group Xiamen China $32.902 Retail 99 256 Sinomach Beijing China $42.638 Industrial machinery 138 361 Cedar Holdings Group Guangzhou China $32.712 Retail 100 267 Zhejiang Geely Holding Group Hangzhou China $41.172 Cars and car parts 139 362 Xiamen C&D Xiamen China $32.588 Retail 101 270 Wuchan Zhongda Group Hangzhou China $40.929 Retail 140 364 Jiangsu Shagang Group Zhangjiagang China $32.561 Metals China United Network Communi- 102 273 Beijing China $40.664 Telecommunications cations 141 365 Bridgestone Tokyo Japonia $32.495 Cars and car parts 103 279 Mitsubishi Electric Tokyo Japonia $39.995 Electronics and electrical equipment 142 367 Mizuho Financial Group Tokyo Japonia $32.142 Banking services 104 280 China Merchants Group Hong Kong China $39.971 Postal services Semiconductors and other electronic 143 368 Taiwan Semiconductor Hsinchu Taiwan $32.126 parts 105 283 Jardine Matheson Hong Kong China $39.456 Cars and car parts 144 369 China Electronics Beijing China $31.990 Electronics and electrical equipment 106 285 Pegatron Taipei Taiwan $39.238 Electronics and electrical equipment 145 370 Jiangxi Copper Guixi China $31.964 Mining, oil processing 107 288 Shaanxi Yanchang Petroleum Xi'an China $38.898 Mining, oil processing China National Aviation Fuel 108 289 China Huaneng Group Beijing China $38.872 Energy 146 371 Beijing China $31.942 Retail Group 109 294 Shaanxi Coal & Chemical Industry Xi'an China $38.483 Mining, oil processing 147 374 CK Hutchison Holdings Hong Kong China $31.892 Specialized traders 110 295 AIA Group Hong Kong China $38.330 Insurance: life, health (stock) 148 375 Xiamen Xiangyu Group Xiamen City China $31.676 Retail 111 300 Alibaba Group Holding Hangzhou China $37.771 Internet services and retail 149 378 Mazda Motor Hiroshima Japonia $31.356 Cars and car parts 112 309 Meiji Yasuda Life Insurance Tokyo Japonia $37.160 Insurance: life, health (mutual) 150 380 Hyundai Mobis Seul Coreea de Sud $31.091 Cars and car parts 113 311 Mitsubishi Heavy Industries Tokyo Japonia $37.103 Industrial machinery 151 381 Xinxing Cathay International Beijing China $31.078 Metals 114 312 China Poly Group Beijing China $37.002 Real estate services 152 384 Subaru Tokyo Japonia $30.735 Cars and car parts 115 313 Fujitsu Tokyo Japonia $36.991 IT services 153 385 CRRC Beijing China $30.634 Industrial machinery 116 317 Canon Tokyo Japonia $36.388 Computers, peripherals China Electronics Technology 154 388 Beijing China $30.176 Aerospace and defence Group 50 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 51 Rank in Global Revenue Company City Country Industry Europe rank (mil. $) When looking at the large companies in Europe, US and East Asia, it is clear that Asian companies are the least 155 393 China State Shipbuilding Beijing China $29.797 Maritime shipping represented at local levels in Romania. 156 395 State Power Investment Beijing China $29.727 Energy 157 397 China Huadian Beijing China $29.612 Utilities 158 159 398 399 Idemitsu Kosan Yankuang Group Tokyo Shandong Japonia China $29.606 $29.474 Petroleum refining Mining, oil processing The presence of East Asian companies in Romania 160 404 Compal Electronics Taipei Taiwan $29.175 Computers, peripherals is particularly important for small industrial urban centres, since they are manufacturers of consumer 161 410 Cathay Life Insurance Taipei Taiwan $28.805 Insurance: life, health (stock) 162 418 Medipal Holdings Tokyo Japonia $28.398 Wholesalers: Healthcare 163 164 420 421 Kansai Electric Power Samsung Life Insurance Osaka Seul Japonia Coreea de Sud $28.283 $28.273 Utilities Insurance: life, health (stock) goods on the global market. 165 425 Sumitomo Electric Industries Osaka Japonia $27.820 Cars and car parts 166 427 Suning.com Group Nanjing China $27.806 Specialized traders 167 168 428 431 Ansteel Group Shougang Group Anshan Beijing China China $27.792 $27.489 Metals Metals How can Romanian metropolises 169 432 Wistron Taipei Taiwan $27.480 Computers, peripherals ATTRACT MORE PEOPLE 170 436 CPC Kaohsiung Taiwan $27.106 Petroleum refining 171 438 GS Caltex Seul Coreea de Sud $26.821 Petroleum refining Semiconductors and other electronic 172 442 SK Hynix Gyeonggi Coreea de Sud $26.636 parts The fact that a metropolitan area generates more exports does not necessarily mean it is more developed, although it could not develop without exports. At the same time, an investment by a multinational company with access to 173 443 East Japan Railway Tokyo Japonia $26.627 Rail transport services global markets does not automatically materialize into wealth for the local population unless that multinational 174 456 Xinjiang Guanghui Industry Urumqi China $26.106 Retail company offers generous wages. 175 458 Samsung C&T Seul Coreea de Sud $25.902 Retail 176 462 Chubu Electric Power Nagoya Japonia $25.753 Utilities In its report “Magnet Cities”, the World Bank held that the development level of an urban area can be assessed by 177 463 NEC Tokyo Japonia $25.673 IT services measuring the attractiveness of that area – i.e. by measuring how many people moved, would move, commute and 178 464 Yango Longking Group Fuzhou China $25.605 Various financial services would commute to that area. 179 465 China Taiping Insurance Group Hong Kong China $25.598 Insurance: life, health (mutual) 180 466 Flex Singapore Singapore $25.441 Semiconductors and other electronic parts A metropolitan area which attracts people clearly 181 182 468 471 China Datang KB Financial Group Beijing Seul China Coreea de Sud $25.299 $25.052 Energy Banking services has some important benefits to offer. For instance, it provides citizens 183 479 Fubon Financial Holding Taipei Taiwan $24.688 Insurance: life, health (stock) with many career opportunities, better quality of life, access to quality education, access to specialized health services, or better connectivity. Shanxi Jincheng Anthracite Coal 184 481 Jincheng China $24.659 Mining, oil processing Mining 185 483 LG Display Seul Coreea de Sud $24.585 Electronics and electrical equipment According to the migration data from the 2011 census, the functional urban areas which managed to attract most 186 489 Taikang Insurance Group Beijing China $24.058 Insurance: life, health (mutual) migrants per one thousand inhabitants were: Cluj-Napoca, Timișoara, Iași, Bucharest, Sibiu and Alba Iulia. The 187 493 CJ Corp. Seul Coreea de Sud $23.796 Specialized traders functional urban areas which managed to attract the most commuters per one thousand inhabitants were: Pitești, 188 494 Yangquan Coal Industry Group Yangquan China $23.793 Mining, oil processing Deva, Târgoviște, Ploiești, Alba Iulia and Bucharest. 189 495 Shanxi LuAn Mining Group Changzhi China $23.785 Mining, oil processing 190 496 Henan Energy & Chemical Zhengzhou China $23.699 Mining, oil processing The World Bank also carried out a national survey to identify the areas that Romanians find most attractive. The 191 497 Datong Coal Mine Group Datong China $23.698 Mining, oil processing following table outlines the results of that survey. 192 499 Qingdao Haier Qingdao China $23.563 Electronics and electrical equipment Source: Fortune Global 500 52 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 53 Table 10. The cities in Romania people would most like to live in It is important to note that the highest exporting areas are not necessarily the most attractive for people. For instance, the Argeș and Arad counties are among the highest exporting counties, but not among the most attractive areas in the country. They attract large numbers of commuters, but not of definitive migrants. On the other hand, Which city Which city, different Share of FUA in Why do you prefer this city? Cluj county takes just seventh place in terms of exports, but ranks first in terms of the relative number of migrants would you than the one you live in FUAs total national most like to now, would you most Quality of Educational Specialized Other attracted and the share of those who would move to Cluj. population Job live in? like to live in? Life Services Healthcare Reason Bucharest 15,23% 14,46% 13,43% 4,24 4,18 4,04 4,13 3,08 Cluj-Napoca 11,37% 15,32% 2,34% 4,22 4,27 3,71 4,11 3,5 Timișoara 9,14% 11,88% 2,52% 4,29 4,49 4,11 3,94 2,32 Figure 22. Volume of external trade per counties, 2016 Brașov 8,53% 11,53% 2,27% 3,8 4,42 3,56 3,74 4,25 Constanța 5,18% 3,96% 2,72% 3,37 4,22 2,82 3,39 4,71 Sibiu 4,06% 5,16% 1,34% 4 4,33 3,51 3,59 3,86 Iași 3,76% 4,30% 2,06% 4,09 4,53 3,97 3,46 2,75 Oradea 2,64% 2,24% 1,67% 4,35 4,92 3,79 4,3 3 Suceava 2,23% 1,89% 0,91% 2,89 3,71 2,83 3,17 3 Târgu Mureș 2,13% 1,56% 1,25% 3,8 3,3 3,3 2,85 3,78 Pitești 1,93% 2,41% 1,73% 3,68 3,83 3,05 3,37 2,5 Piatra Neamț 1,93% 1,72% 0,74% 3,63 4,28 3,19 3,7 3,75 Râmnicu Vâlcea 1,73% 1,90% 1,16% 2,88 4,06 3,24 3,24 4,4 Arad 1,62% 1,20% 1,48% 3,38 4 3,56 3,5 3,7 Galați 1,52% 0,34% 1,69% 2 3,73 2,87 3,33 X Ploiești 1,52% 0,52% 2,52% 3,13 4,4 3,67 3,4 4 Baia Mare 1,32% 1,03% 1,07% 3,63 4,38 3,25 4,25 3,5 Craiova 1,32% 1,38% 1,89% 4 4,54 3 4,08 4,33 Miercurea Ciuc 1,02% 0,17% 0,49% 2,9 4 3,3 3,7 3,6 Târgu Jiu 1,02% 0,00% 0,72% 4,4 4 4,1 4,1 2,75 Târgoviște 0,91% 0,52% 1,05% 3,44 3,78 3,56 3,56 2,67 Bacău 0,91% 1,20% 1,14% 3,22 3,89 3,11 3,22 5 Alexandria 0,81% 0,34% 0,35% 3,75 3,88 3,13 3,88 2,75 Source: INS – TEMPO On-line Buzău 0,81% 0,69% 1,28% 4,2 4,8 3,8 3,8 5 Deva 0,81% 0,34% 0,79% 4,67 4,5 3,63 4,38 X A city or metropolitan area is like a living organism. The natural cycle of a living organism is to grow, mature, and Reșița 0,81% 0,69% 0,40% 4 4,43 2,43 4,25 X then fade out to clear the way for another living organism. Therefore, a metropolitan area which is unable to grow Brăila 0,81% 0,34% 0,98% 3,25 3,75 2,5 3,25 3 sustainably does not have a very bright future. Obviously, a city cannot grow indefinitely, but should neither remain Focșani 0,71% 0,00% 0,86% 2,5 4,14 3,43 2,67 3 stuck in a conservative mindset. Giurgiu 0,71% 1,03% 0,40% 3,43 4,29 2,57 3,71 2 Slatina 0,71% 0,00% 0,66% 4,8 4,8 4,8 4,4 2 Botoșani 0,71% 0,34% 0,64% 3,29 4,14 2,71 4 4 Sadly, few local Romanian administrations have a Vaslui 0,61% 0,34% 0,40% 4,5 4,5 3,25 4,75 2 Alba Iulia 0,51% 0,17% 0,56% 2,25 3,5 3,4 2,5 3 clear vision for growth. The most developed and dynamic cities in the country Bistrița 0,51% 0,52% 0,63% 2,8 4,4 3,4 3,4 4,67 Satu Mare 0,51% 0,52% 0,97% 4,4 4 3,6 3,8 3,67 Sfântu Gheorghe 0,51% 0,86% 0,42% 3,2 4,8 2 3,2 X deplore the lack of labor, but few have a clear strategy to attract more people. Slobozia 0,41% 0,69% 0,40% 3,5 5 3 5 X Zalău 0,41% 0,34% 0,45% 1,5 3 1,5 1,5 1 Next, we will discuss what local administrations can do to attract more people. Drobeta-Turnu 0,30% 0,00% 0,60% 3,33 4 3,67 3 X Severin Călărași 0,20% 0,00% 0,52% 2 2,5 2,5 1,5 4 Tulcea 0,20% 0,34% 0,47% 5 5 3 3 5 Source: 2017. Magnet Cities: Migration and commuting in Romania, Washington D.C.: The World Bank 54 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 55 Figure 23. Biggest US cities, 1840 The need for a growth vision CHICAGO Daniel Burnham, author of Chicago’s urban design, encouraged urban planners to refrain from “small plans”, as small plans “do not inspire the imagination of people”. A plan should be grand and ambitious, because such a plan, even if it takes years to implement, “will live in our minds forever”, a seed only waiting for water to grow. Daniel Burnham lived and thought in a period when Chicago was booming, and required some guidelines for its expansion. In itself, the story of the city of Chicago is important for any mayor, as it outlines a few prerequisites for urban development. In his Pulitzer-winning “Nature’s Metropolis”, William Cronon offers a detailed description of how Chicago grew from a small settlement in a marshy area to the second metropolis of the United States. In 1840, Chicago only had around 4,000 inhabitants and ranked just 92nd among US cities (see the table below). By 1870, the city population grew to approximately 300,000 inhabitants (i.e. the entire population of the largest Romanian secondary cities), and Chicago became the fifth biggest US city. In 1900, i.e. 30 years later, Chicago reached approximately 1.7 million inhabitants and ranked second in the top US cities. By 1930, the city population grew to 3.4 million inhabitants. Each generation brought an exponential growth of the city of Chicago, which managed to grow nearly 850 times in less than 100 years. William Cronon believes that one factor which contributed most to the city’s growth were the boosters – a kind of real estate agents who worked for land owners in the region. They were competing with other boosters who operated in similar cities in the area, such as St. Louis, Milwaukee, or Green Bay. Chicago was neither ideally placed (it lied in the far south of Michigan Lake, which significantly delayed water transport on the Great Lakes, which was of great importance at the time), nor did it provide best conditions for future investments (the area consisted of marshland, with poor quality soil and frequent floods). Cities such as Milwaukee or Green Bay had better conditions for a rapid development. However, Chicago had better promoters and supporters, and even became a preferred destination for the migratory waves of the time. Another factor which advanced the expansion of the city was precisely the growth vision Daniel Burnham had in mind. The city had its share of visionaries who envisaged it on a greater scale. Burnham’s plan, also, covered an area which expanded significantly outside of the effectively inhabited area of the time. And even if Burnham’s plan was not followed to the letter (as were the urban designs of New York or Barcelona, among others), it did set the stage for the future expansion of the city. Source: www.biggestUScities.com 56 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 57 Figure 24. Daniel Burnham’s urban design of the city of Chicago (1909) The need for urban promoters A city can hardly support its growth if even its own inhabitants have second thoughts about living there. A city cannot become a “magnet city” if it is promoted merely by the mayor or a handful of people – this require a critical mass. First, a large share of a city’s inhabitants have to be proud of living there. Local pride is a key element, since the residents become city promoters. Of course, the larger a city, the more promoters it has, and its chances to attract even more people increase accordingly. Major decisions, such as where to invest, what to visit, where to move, are taken based on interpersonal relations and the feelings a place generates. For people to feel attached to a place, some conditions have to be necessarily met. First and foremost, the city should have a well-developed urban infrastructure – just as we hate to live in a dirty apartment with peeling paint, we would not want to live in a city that feels like falling on itself. To that extent, quality urbanism and architecture are paramount. Sadly, urban planning is a dying profession in Romania. Few mayors invested in quality urban planning and urban planners in the past years. Few design contests have been organized to redesign some key public areas over the past 30 years of market economy. Quality urban planning is not a whim – it became an absolute necessity, and mayors oblivious to investments in quality urban planning are at risk of turning own citizens into enemies rather than allies. However, a beautiful city is not enough to boost local pride. People want to feel they play a part in developing the city they live in. If all the major decisions on city development were taken by a handful of people, common citizens would not be shaping the future of that city. When people are involved in the urban planning process, they turn from passive citizens to active citizens. Another factor which weighs significantly in the locals’ bond with the city is the competition with other cities, and the effective or relative position of the city in the competitive ranking. A football team well placed in the national or regional ranking will strengthen people’s attachment to that place. A city considered as the “smartest”, “coolest” or “best managed” could also generate local pride and mobilize citizens to promote it. Cities perform well in various fields – they just need to know how to promote such performance. Source: Wikipedia The need for an ambitious plan There are two things a city needs to embark on a developing trend. They will be discussed below: 1) the presence of promoters of the city in sufficient numbers; As Daniel Burnham said, people will never rally around a small plan or a modest vision. People want to be inspired and 2) an ambitious plan need great ideas to achieve this. For instance, Romania’s General Transport Master Plan managed to concentrate energy and excitement around some major projects – the Moldova motorway, the Pitești-Sibiu motorway or the Transylvania motorway. Identically, at local level, people need a higher growth vision – they need an ambitious plan to stimulate their imagination. 58 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 59 Burdened by the heritage of centralized urban planning from the times of Communism, urban and regional planning Figure 26. The 1852 urban plan of San Francisco superposed on the current city map lost some of their gloss. Romanian specialists stopped planning because this was wrongly deemed as tool dating back from Communism. Therefore, the plans and strategies prepared during the transition years rarely involve ambitious interventions. Most of the PUGs drafted over the past years fail to propose anything more ambitious than a new ring road. No efforts are made to lay the groundwork for developing metropolitan areas in the next hundred years. SAN FRANCISCO One main reason this kind of ambitious planning does no longer happen is the multitude of factors that have to be considered nowadays, the many stakeholders that have to be involved in the planning process and the multiple analyses which are now deemed essential. For instance, the planned extension of San Francisco (see the image below) was prepared by people who did not even paid a visit in the area they planned. Therefore, they proposed a grid of blocks without having any idea of the quite diverse topography of the area. Thus, the street layout climbs directly on the hills in some areas, at an angle sometimes as high as 31.5%. Figure 25. San Francisco urban plan, 1852 Source: davidrumsey.georeferencer.com Figure 27. San Francisco’s sloping streets, built based on the city’s old urban plan Source: davidrumsey.georeferencer.com Source: Wikipedia 60 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 61 Today, these San Francisco streets perched on top of the hills are part of the city’s charm. But they would not be possible in the digital era, when each patch of land can be studied from the comfort of one’s office. NEW YORK Designing an ambitious street layout, and possibly a rail network providing the foundation for the future growth of One of the most famous designs is the 1807 urban plan of New York City (as shown in Figure 29). The first streets a metropolitan area, is a must for a dynamic city. There is almost no plan to expand the street layout which was of New York City were built by Dutch migrants, at the lower tip of the Island of Manhattan, in a location known as not implemented over time. Plans are not always fully implemented, but a development idea, once laid on paper, New Amsterdam at the time. When the British took over the Island of Manhattan from the Dutch, they renamed will turn to life. the city as New York, extended the street layout (the red area in the lower right figure), and during 1807-1811 prepared a plan covering the entire island. The image below shows a few historic urban designs in some of the best known metropolises of the world. Look for images of the street layouts in those metropolises, and you will see that they largely follow the initial street grid. The plan completed in 1811 (named the 1811 Commissioners’ Plan) continues to guide New York’s expansion to this The beauty of an ambitious plan is that it is almost always put into practice – maybe not in its first form, and even day. With a few exceptions (such as introducing Central Park in the middle of the Island of Manhattan), the plan if it takes longer to fill the foundation. was followed closely throughout the years. Figure 28. Historic urban designs which laid the foundation of major cities The leaders of the 1807 New York had the vision to imagine and propose a plan which guided the city’s expansion two centuries later. Another trait of the 1811 Commissioners’ Plan was the resilience of the street layout once it was built. Broadway, the only thoroughfare which does not follow the grid street plan of New York (shown in red in the lower right figure), was the road used by Indians before Europeans settled on the island. The irregular path of the Broadway avenue owes to the diverse land features of the island at the time of planning. Back then, Manhattan had more hills, which were flattened after the 1811 Commissioners’ Plan, and the excavated earth and rocks were used to fill the marshes and expand the liveable area of the island. Broadway endured and also survived the systematization proposed under the 1811 Commissioners’ Plan. It is now a defining New York street which adds further to the city’s charm. It is also living proof that one drawn, a street could hardly be relocated. Issues arise when the streets are built to solve specific situation, or local accessibility problems, without considering the local/metropolitan transport system as a whole. This is how most Romanian cities expanded after 1989. For instance, even if Bucharest was systematized during the Communist period and large thoroughfares and ring roads were built, it developed inconsistently in the past years (see the example in the image below). The ends of the major thoroughfares were supplemented with grids of minor streets, which lead to traffic obstruction. Given the lack of major additional thoroughfares, all the traffic from these lesser streets converges onto the existing avenues and slows traffic down for the better part of the day. Bucharest thus became the most traffic-congested city in Europe, ahead of metropolises like Moscow, Paris, Rome, Brussels or Athens. 62 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 63 Figure 29. The street layout of New Amsterdam (left) and the New York Commissioner’s Map (right) BARCELONA By comparison, Barcelona, with its 3.9 million of metropolitan residents and in excess of 20 million tourists per year (6.5 times more than Bucharest), has much lower traffic problems than Bucharest. Barcelona has the advantage that the urban development of the city and of the metropolitan area is guided by the urban plan laid out by Ildefons Cerda in 1859. The plan, included in the image below, proposed a systematization of the street layout around the old town and extensions in the metropolitan area, reaching as far as the neighboring localities. With a few exceptions, Ildefons Cerda’s plan was followed to this day, and Barcelona benefits from a street layout that facilitates inner traffic and has allowed an effective extension of utilities and of the public transport network. The strength of this plan becomes obvious if we take into account one of Barcelona’s showcase buildings – the Sagrada Familia Cathedral. Figure 31. Ildefons Cerda’s design of 1859 Figure 30. Bucharest’s compact structure and post-1989 unplanned additions Source: https://upload.wikimedia.org/wikipedia/commons/8/89/PlaCerda1859b.jpg Figure 32. Historic image: The area around the Sagrada Familia Cathedral at the time of its inception Source: The World Bank. 2013. Enhanced spatial planning as a precondition for sustainable urban development. [Report prepared for the Ministry of Source:https://ro.pinterest.com/explore/sagrada-familia-history-915626176895/?lp=true Regional Development and Tourism] 64 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 65 The building of the cathedral began in 1882, in a non-developed area in the metropolitan part of Barcelona. With This type of ambitious vision would also be welcome in the main urban areas of Romania. its foundation paid from the private wealth of Josep Maria Bocabella, the cathedral was located in a cheap area at the city limits. Even if the construction began in a barren field, the cathedral’s location was very precise – in a block A street layout extending the metropolitan area does not necessarily have to be established by a legal document. from Ildefons Cerda’s urban design. A mere metropolitan masterplan to guide the preparation of individual PUGs would be enough. For instance, the motorway network proposed in the Transport Master Plan largely follows a proposal of IPTANA (The Design Institute The cathedral is not yet completed (the completion is expected to take place in 2026, to mark 100 years from the for Road, Maritime and Air Transport) from 1968-1969 (see the map below). death of its architect, Antoni Gaudi), but the urban space around the cathedral has already been filled by many years. Moreover, this urban space was neatly filled, with an efficient and easy extension of the urban infrastructure Figure 35. The motorway network of Romania as proposed in 1968 in order to make the area functional. Practically, after 150 years from its preparation, Ildefons Cerda’s design continues to prove beneficial for Barcelona. Figure 33. Barcelona today Source: Google Earth Figure 34. The area around the Sagrada Familia Source: IPTANA Romania, in spite of its forced and belated urbanization, still has a history of urban design. The General Pavel Kiseleff, the namesake of several streets din Romania (including one of the major Bucharest thoroughfares, which he helped design), was a plenipotentiary (a de facto governor) of Wallachia and Moldova between 1829 and 1834, during the Russian military administration. It was one of greatest Russian reformers and one of the decisive enablers of reform in Wallachia and Moldavia, playing a crucial role in the administrative reorganization of the two Principalities and the drafting of the Organic regulation – the first Constitutions in the Source: http://www.archdaily.com/639498/12-stunning-aerial-photos-taken-with-a-drone/556f0fdae58eceec91000273-12-stunning- history of the two Romanian Principalities. aerial-photos-taken-with-a-drone-photo 66 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 67 Less known is the fact that Kiseleff ordered the drafting of urban designs for several cities along the Danube – Figure 37. Danube cities with systematization plans drafted during Kiseleff’s period more specifically “a complete guideline for sound city organization in all respects”. Thus, plans were prepared for the systematization of cities “with a regular streets and markets layout and setting port sites”. The most famous systematization plan was that of Brăila, prepared in 1834 by Barron Borroczyn, at the orders of Kiseleff. That plan guided the development of Brăila throughout the years, up to this day. Figure 36. Brăila’s 1892 urban design, based on Kiseleff’s model Source: Google Maps Moreover, the benefits of a systematization plan should be clearly explained. For instance, the value of the land concerned by such a plan would automatically rise. In addition, local authorities may choose not to issue building permits for areas not covered by a systematization plan, or more precisely a Zonal Urban Plan (PUZ). A separate chapter will present a few ideas on how a metropolitan street layout could be designed/implemented. Where can Romanian metropolises ATTRACT PEOPLE FROM Source: Wikipedia Some more Danube cities bear the hallmarks of Kiseleff’s model. This fact is illustrated by the maps below. A A far-reaching plan and many promoters does not necessarily mean a metropolitan area will actually attract more planning effort at such a scale is as easy to implement nowadays, but it is not impossible either – all that has to people. Cities like Chicago grew at a time when fertility was very high (a woman in the US would give birth to be done is to find the right planning tools and open a dialogue with the relevant stakeholders. approximately 7 children on average in mid-19th century) and infant mortality was decreasing. Moreover, millions of migrants reached and are still reaching the US each year. Now, Romania’s development occurs in a context of very low fertility, negative natural growth and massive external migration. 68 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 69 Table 11. Migrants attracted by the US from 1850 to 2016 A functional urban area is made up of a municipality Year Migrants and neighboring localities, from where at least 15% 1850 2,244,600 of the workforce commutes to the respective urban 1860 4,138,700 centre. 1870 5,567,200 Thus, someone living in Popești Leordeni is part of the Bucharest functional urban area, someone living in Florești is 1880 6,679,900 part of the Cluj functional urban area, and some from Ghiroda is part of the Timișoara functional urban area. The 1890 9,249,500 map below outlines these functional urban areas. 1900 10,341,300 1910 13,515,900 Figure 38. The functional urban areas of Bucharest and of the county capitals 1920 13,920,700 1930 14,204,100 1940 11,594,900 1950 10,347,400 1960 9,738,100 1970 9,619,300 1980 14,079,900 1990 19,767,300 2000 31,107,900 2010 39,955,900 2011 40,377,900 2012 40,824,700 2013 41,348,100 2014 42,391,800 2015 43,290,400 2016 43,739,300 Source: Migration Policy Institute The falling number of the Romanian population does not necessarily mean that dynamic urban areas are unable to attract people. Romania continues to have low urbanization rates, and as the country develops, the most dynamic Romanian cities will become an alternative to emigration. In fact, the surrounding areas of large cities such as Bucharest or Cluj-Napoca have been much less affected by external migration than rural areas which are far from large cities (such as Moldavia or the north of the country). In its “Magnet Cities” report, the World Bank assessed the attraction potential of each Romanian county Source: 2017. Magnet Cities: Migration and commuting in Romania, Washington D.C.: The World Bank capital and of Bucharest. The starting point of this analysis was to establish a functional urban area for each of these cities. Functional urban areas were established based on a OCDE/CE methodology, which took into account commuting levels for all localities neighboring a county capital. 70 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 71 Normally, the population of an urban area should be viewed at this level, not strictly according to the county’s The mere fact that at least 22.5% administrative borders. Someone who lives in a surrounding locality but works, studies or receives services/utilities of the country’s population lives in a suburban or periurban area is enough to justify a clear from the neighboring city is part of that functional urban area. Considering this criterion, the table below shows the metropolitan development policy. effective population of the municipality (measured at the 2011 census) and the population in the functional urban area. By this measure, one can see these urban areas have 4.5 million more inhabitants than the cities themselves – more precisely, 11.6 million versus 7.1 million. Moreover, the World Bank carried out a national survey to assess people’s willingness to migrate to one of the most dynamic cities in the country (a similar survey was subsequently performed by the Sinteza Magazine, with almost Table 12. Population for a selection of Romanian functional urban areas similar results). Bucharest Municipality 1,883,425 FUAs 2,703,015 3.6 million Romanians said they were considering a move in the next 5 years. Constanța 283,872 546,900 Dintre aceștia, 2,4 milioane consideră o mutare în România, iar 1,71 milioane ar dori să se mute într-un oraș din Timișoara 319,279 508,037 România. Tabelul de mai jos include principalele orașe unde acești 1,71 milioane ar dori să se mute. Măsura în care Ploiești 209,945 506,213 aceste orașe vor reuși să atragă acești oameni ține atât de administrația locală, cât și de multitudinea de actori Cluj-Napoca 324,576 470,939 locali și de cetățenii din aceste orașe. Întărirea magnetismului unui oraș este inerent o muncă de echipă. Brașov 253,200 455,830 Iași 290,422 414,869 Craiova 269,506 380,641 Figure 39. An estimation of the potential number of migrants in the near future Pitești 155,383 348,981 Galați 249,432 339,408 Oradea 196,367 336,538 Arad 159,074 296,981 Sibiu 147,245 270,064 Buzău 115,494 258,137 Târgu Mureș 134,290 251,523 Râmnicu Vâlcea 98,776 233,497 Bacău 144,307 228,656 Baia Mare 123,738 215,129 Târgoviște 79,610 210,410 Brăila 180,302 196,818 Satu Mare 102,411 195,584 Suceava 92,121 182,955 Focșani 79,315 172,530 Deva 61,123 158,650 Piatra Neamț 85,055 148,011 Târgu Jiu 82,504 144,618 Slatina 70,293 132,789 Botoșani 106,847 129,276 Bistrița 75,076 126,860 Drobeta Turnu Severin 92,617 120,762 Alba Iulia 63,536 113,461 Călărași 65,181 104,323 Miercurea Ciuc 38,966 97,627 Tulcea 73,707 94,092 Zalău 56,202 90,073 Sfântu Gheorghe 56,006 84,341 Reșița 73,282 81,091 Giurgiu 61,353 80,932 Vaslui 55,407 80,861 Slobozia 45,891 80,570 Alexandria 45,434 70,409 Source: 2017. Magnet Cities: Migration and commuting in Romania, Washington D.C.: The World Bank Source: The World Bank 72 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 73 Besides the potential migrants to be attracted nation-wide, local authorities should also take into account two additional sources of migration: 1) the Romanian diaspora; 2) immigrants from other countries. Provided Romania continues to grow at the same According to the Ministry of Foreign Affairs estimates, more than pace as in the past years, the most developed cities 5 millions Romanians live outside their country – a very high number of people. These in the country may become return destinations for people are mostly well trained, have gained wealth and built connections in their adoptive countries. immigrants from the diaspora. Most of these people will be hardly willing to return home absent a living standard that at least comes close to what they were used in the West. The League of Romanian Students Abroad carried out several surveys among In anticipation of such a move, large Romanian cities should attempt to establish consulates of the countries Romanian students studying abroad, to determine what would it take for them to return home. The results of these hosting large numbers of Romanians. At least each growth pole should have one consulate from the following surveys are surprising – most of the respondents would be willing to return to Romanian for lower wages than in countries: their adoptive countries as long as they found a similar living standard in Romania to that of the West, and rules • Italy · USA that do not change from one day to another. · Spain · Great Britain · Germany Romania will become attractive for other citizens as well. Many companies already bring workforce from countries Figure 40. Countries with the biggest Romanian communities such as Vietnam or China to compensate for the local labor shortages. The table below shows the place of origin of most immigrants to Romania. These countries will most likely become a source for future immigrants in the years to follow. One should also see where our more developed neighbors attract migrants from. For instance, Poland and the Czech Republic attracted large numbers of Ukrainians, thanks to cultural affinities and the similar language. Hungary attracted large numbers of Serbians. Poland attracted many Belarussians and Lithuanians, again thanks to cultural affinities and a common history. The Czech Republic attracted many Vietnamese and Russians. Table 13. Where Eastern European countries attract migrants from Romania Poland Czech Republic Hungary Slovakia Total population 19,644,350 38,135,876 10,578,820 9,797,561 5,435,343 Population born abroad 421,801 453,248 465,056 513,649 186,217 ... out of which, in: Moldavia 161,846 386 8,254 250 152 Italy 56,515 8,958 4,006 5,585 3,379 Spain 42,165 3,136 1,147 2,250 1,101 Ukraine 16,729 134,228 110,337 55,836 10,738 Great Britain 15,346 16,254 5,327 11,157 7,160 Germany 15,121 62,873 16,827 32,410 5,387 France 12,589 25,024 3,219 4,422 2,996 Bulgaria 10,646 2,621 11,204 1,402 2,453 Hungary 8,184 1,204 1,393 - 16,585 Turkey 7,986 571 2,193 2,513 365 Greece 6,494 2,406 898 1,310 557 Russia 6,063 9,913 36,218 4,061 2,925 China 5,068 472 5,404 17,460 1,187 USA 4,428 9,032 7,650 8,358 2,376 Syria 3,492 670 1,235 2,015 263 Israel 2,936 341 670 1,669 218 Belarus 101 35,315 4,502 215 234 Lithuania 82 33,604 662 232 173 Vietnam 225 2,780 46,631 3,563 2,228 Kazakhstan 234 3,400 7,798 641 268 Serbia 2,296 228 2,038 41,978 2,170 Austria 1,934 2,684 2,738 10,339 4,014 Source: EuroStat Source: MAE and Wikipedia 74 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 75 What stands out in the case of Romania is the relatively large numbers of migrants from developed EU countries % employees earning such as Italy, Spain, Germany or France. However, it is not clear how many of these migrants are Romanians who County/City % employees earning more than 1000 Euro more than 700 Euro became citizens of their adoptive countries, then returned home. Giurgiu 6,0 3,8 Dolj 9,5 3,7 Galati 7,3 3,5 Botosani 6,8 3,4 Need for opportunities to make Romanian metropolises more attractive Alba 6,4 3,3 Tulcea 9,0 3,3 Bihor 6,5 3,2 No matter how visionary, ambitious and proactive a local administration were, it would never attract people unless it offers Satu Mare 6,1 3,2 them a good reason to move. In most cases, this reason is a well-paid workplace. Bacau 6,4 3,1 Mehedinti 7,7 3,1 Salaj 6,4 3,1 As the World Bank’s “Magnet Cities” analysis has already shown, Buzau 6,0 3,0 Traditional university cities such as Bucharest, Teleorman 6,5 3,0 Covasna 6,4 3,0 Cluj-Napoca, Timișoara and Iași enjoy a special Olt Calarasi 7,2 6,4 2,8 2,8 advantage. Dambovita Neamt 6,0 6,2 2,7 2,7 On the one hand, they manage to attract young and well-trained people (a key comparative advantage given the Ialomita 5,9 2,7 demographic decline and population ageing), and, on the other, they successfully attract companies with high- Valcea 6,1 2,6 added value which seek to employ university graduates from the area. Provided such companies are in sufficient Braila 5,9 2,6 number and create sufficient well-paid workplaces, the university graduates may be kept in those cities, and people Caras-Severin 5,4 2,6 from other cities could be attracted there as well. Vaslui 6,0 2,6 Bistrita-Nasaud 5,7 2,5 The table below includes counties with the highest share of employees earning high wages, nation-wide (more than Maramures 4,9 2,4 700 EUR net/month). These are the counties which will probably exert the highest pull in the future, as they are Harghita 5,4 2,4 also the most attractive for those seeking a future workplace. Vrancea 5,6 2,4 Suceava 5,5 2,3 Table 14. Share of employees with high wages (more than 700 EUR net/month) in 2016 Hunedoara 5,6 2,2 Gorj 6,4 2,1 % employees earning County/City % employees earning more than 1000 Euro more than 700 Euro Sursa: PIAROM Bucharest 11,9 16,2 Cluj 10,9 11,2 Ilfov 9,7 11,1 Timis 9,3 9,6 A 2018 PIAROM study revealed that Sibiu 10,1 8,0 Brasov Iaşi 9,2 8,6 7,1 6,1 the share of employees earning more than 1000 Prahova 7,1 5,2 EUR net/month is 16.2% in Bucharest, 11.2% in Cluj, 11.1% in Ilfov, 9.6% in Timiș, 8% in Sibiu, and Mures 8,6 4,8 Constanta 7,7 4,7 7.1% in Brașov. Arad 6,3 4,5 Arges 10,5 3,8 76 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 77 At the other end of the spectrum, Universities are another magnet for people. In a the lowest percentages were recorded in the context where the population is continuously falling counties of Gorj (2.1%), Hunedoara (2.2%), Suceava and ageing, universities ensure a steady flow of (2.3%), Vrancea (2.4%) and Bistrița-Năsăud (2.5%). young, well-trained people. In the counties of Maramureș, Suceava, Vrancea, Vaslui and Harghita, more than These young and well-trained people attract, in turn, companies with high added value which seek to take advantage of their expertise. The following table includes the main university centres of Romania. of employees received the net minimum wage, as compared to less than 40% in Bucharest, 60% Brașov, Sibiu or Timiș. As one can see, 2008 was a pivotal year, when the young people born after 1989 began to enroll in universities. As the birth rate plummeted after that year, so did the numbers of eligible university applicants. Obviously, this picture is not relevant for the counties’ attractiveness, since it fails to reflect the income of the local workforce (e.g., income from independent activities, bonuses). To assess the attractiveness of individual university centres, we should look at what happened between 1990 and 2015, and between 2008 and 2015. For instance, Constanța, Oradea, Sibiu and Arad had very small university Figure 41. Counties with the highest net average wages centres in 1990. Meanwhile, they became relatively attractive university centres. Moreover, university centres such as Bucharest or Brașov lost in 2015 more than 70% of the graduates they had in 2008. Table 15. Largest university centres in Romania 2015 Bachelor Bachelor Bachelor Bachelor University vs. 2015 vs. graduates - graduates – graduates - graduates - centre 2008 1990 (%) 1990 2000 2008 2015 (%) Bucharest 10.237 25.594 88.148 24.486 72,2% 239,2% Cluj-Napoca 2.678 7.574 13.920 9.043 35,0% 337,7% Iași 3.716 7.132 15.197 7.922 47,9% 213,2% Timișoara 2.152 6.296 11.955 5.622 52,0% 261,2% Craiova 1.185 3.677 8.565 4.088 52,3% 345,0% Constanța 206 2.662 8.298 3.785 54,4% 1837,4% Brașov 1.288 3.681 15.687 3.206 79,6% 248,9% Oradea 147 2.627 5.635 2.630 53,3% 1789,1% Sibiu 213 2.247 5.845 2.547 56,4% 1195,8% Arad 31 1.319 5.869 2.259 61,5% 7287,1% Galați 1.081 1.942 5.216 2.129 59,2% 196,9% Source: INS Overall, the Romanian urban areas with the largest university centres also have the highest chance to provide them with high wages in the future, and will therefore be the most sought-after by well-trained workers. There should be however some balance between the highly productive, highly-paid economic sectors and the rest of the economy. Otherwise, the cost of living may take off and lead to drop in terms of its quality and of the city’s attractiveness for lower paid professions which are nevertheless critical for any local economy (e.g. teachers, nurses, civil servants). Source: Ziarul Financiar 78 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 79 Need for dynamic land and real estate markets   Core City Functional Urban % in Outer Average price (EUR) per Area (FUA) FUA square meter Baia Mare 4.048 8.174 50,48% 630 Assuming that an urban area provides sufficient opportunities to attract more people, the first issue which arises Satu Mare 4.387 8.049 45,50% 525 is where to “host” those newcomers. Buzău 3.646 6.957 47,59% 612 Absent functional land and real estate markets, Botoșani Slobozia 3.569 2.925 5.956 5.717 40,08% 48,84% 600 600 the cities will no longer be able to attract as many Slatina 2.720 5.686 52,16% 620 people as they would like to Târgu Jiu 2.784 4.955 43,81% 716 Călărași 3.056 4.784 36,12% 470 Deva 2.563 4.764 46,20% 599 Therefore, it is important to see the relation between the number of newly built homes and their average prices. Zalău 2.898 4.724 38,65% 492 The table below enables such a comparison. It becomes immediately obvious that the cities with the most building activity are, for the most part, also the cities with the most expensive real estate market. This is enough to suggest Alba Iulia 3.487 4.624 24,59% 667 the supply of new homes fails to meet the demand. Vaslui 2.697 4.328 37,68% 591 Tulcea 2.748 3.440 20,12% 780 Table 16. Newly built homes between 1990 and 2015 and average price per square meter Drobeta-Turnu Severin 2.306 3.400 32,18% 500 Functional Urban % in Outer Average price (EUR) per Sfântu Gheorghe 1.655 2.821 41,33% 491   Core City Area (FUA) FUA square meter Alexandria 1.839 2.668 31,07% 555 Bucharest 68.435 154.631 55,74% 1.014 Giurgiu 2.212 2.491 11,20% 481 Constanța 20.181 43.531 53,64% 915 Miercurea Ciuc 1.412 2.480 43,06% 521 Cluj-Napoca 18.068 42.753 57,74% 1.099 Reșița 1.291 1.565 17,51% 448 Iași 12.772 26.598 51,98% 903 Source: INS and ANEVAR Timișoara 9.831 26.482 62,88% 942 Pitești 7.517 22.801 67,03% 773 Overall, 982,000 new homes have been built between 1990 and 2015. Out of these, 64% have been built within the Brașov 11.845 20.146 41,20% 866 functional urban areas of Bucharest and of the 40 county capitals, while 52% of them have been built outside of urban centres, a fact which reveals a strong trend towards suburbanization. Sibiu 11.309 19.962 43,35% 765 Craiova 11.118 17.335 35,86% 806 Ploiești 4.964 17.101 70,97% 737 In 2016, 52,200 new homes have been built in Romania, and merely Arad 13.750 16.827 18,29% 670 2,4% of these were paid from public funds (more specifically, built by the ANL). Out of the homes built with public funds, not even one was built in high demand markets with ever-rising prices, Oradea 10.038 15.975 37,16% 697 such as Bucharest, Cluj-Napoca, Timișoara or Iași Suceava 5.647 15.915 64,52% 701 However, ANL homes have been built in places such as Alexandria or Huși, where the free market price of a 2-room Bacău 5.245 14.639 64,17% 687 apartment is around 15,000 EUR. Galați 8.146 14.585 44,15% 667 Focșani 3.964 13.406 70,43% 586 When the supply and demand on the land and real estate markets become manifestly disconnected, public Râmnicu Vâlcea 5.807 12.827 54,73% 657 authorities should step in. Târgoviște 4.006 11.723 65,83% 548 On the one hand, ANL should target places with the highest increase of real estate prices. On the other hand, the Târgu Mureș 3.973 10.490 62,13% 745 relevant local authorities should be more proactively involved in those markets. Not only could they promote private Brăila 7.935 9.480 16,30% 561 investments by implementing some appropriate spatial planning tools and by quickly and efficiently issuing building Bistrița 6.392 9.063 29,47% 582 permits, but also by strategically developing new public homes. The figure below shows the localities with the most Piatra Neamț 3.219 8.717 63,07% 625 active real estate markets, where public authorities should involve the most. 80 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 81 Figure 42. Number of completed homes per 1,000 stable inhabitants from the functional urban areas of To assess the need of new homes in the most dynamic Romanian cities, we divided the number of Romanians who main Romanian cities, 2016 indicated they would move to that city to the average size of an urban household in Romania (2.5 people). The figure below estimates the need for new homes in the most dynamic Romanian cities. It is important that local public authorities follow the delivery pace of new homes to see whether they come near this number. Depending on whether the private sector delivers more or less, the public authorities should find the appropriate tools to curb or to boost the private market. The need for investments in sustainable urban mobility Besides dwelling problems, the most attractive Romanian cities are also faced with the issue of the highly congested traffic. The demographic and economic growth of Bucharest, Cluj-Napoca or Timișoara is impacted Source: https://blog.cluj.info/analize/piata-imobiliara-sta-sa-dea-in-clocot-sunt-necesare- politici-in-domeniul-locuirii-atat-la-nivel-central-cat-si-local/ Figure 43. Home needed in the most dynamic cities in Romania by the fact that people spend daily many hours stuck in traffic. These are the cities where most Romanians would like to move to (according to the World Bank survey). The street network of these cities was designed at a time when cars were in much lower numbers than in the present, when a personal motor vehicle, besides its practical usefulness, is also a status symbol that Romanians would hardly part with. In addition, the taxation of used car imports made the number of cars increase exponentially after the EU accession, while their age is the highest on the continent. Thus, besides the crowding, the level of NOx emitted by cars reached alarming levels, with the cities of Bucharest, Brașov and Iași being already subject to infringement procedures by the European Commission. Obviously, the solution to overcome this problem is that adopted by large Western European cities since as early as the ‘70s or the ‘80s, namely to take measures to curb motor traffic and promote public transport use, biking, and walking. Progressively, people gave up driving in favor of public transport, which is quicker, more efficient and less expensive. The city halls of all Romanian county capitals, with the support of the European Commission, EBRD and MDRAP, prepared sustainable urban mobility plans for the 2030 horizon, which should address most of the traffic issues. Sadly, the European funds allocated for their implementation are insufficient, as they are not complemented with governmental funds. Thus, when left to authorities with generally modest revenues, these large scale investments (from ring roads and parking lots to pedestrian areas, shared spaces, dedicated bus lanes and bus stations with information screens or new tram lines) are at risk of remaining only on paper. The situation is even more complicated as far as the metropolitan public transport is concerned, which is functional just in few cities, and even then solely in the localities attached to the respective urban centre. Source: The World Bank 82 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 83 Figure 44. Number of registered cars per 1,000 inhabitants in 2017 The World Bank survey on the Romanians’ willingness to emigrate reflected an essential prerequisite for the attractiveness of magnet cities: people value quality of life more than material gain. Concretely, they would rather move to another city where they are paid the same or less in their native city provided they had a better quality of life, which means anything from attractive public spaces to hospitals, schools or leisure opportunities. This aspect is particularly essential for attracting residents from either the Romanian diaspora or other Romanians, who are already used to a certain standard of living. Furthermore, over the past years, many Romanians went abroad as they were unhappy less with their job and more with the negative prospects afforded to their families by the medical, educational or administrative systems. Thus, in the field of education, attracting new inhabitants will also mean increased demand for places in nurseries, kindergartens and schools on short and medium term. In large cities, these are already significantly undersized in relation to the number of children, as parents are required to employ all kinds of tricks to get a place in such an institution. The private sector partially filled this gap, but at sizeable costs (whether it is private kindergartens or baby-sitters), which are not affordable to all residents. The situation is even more dramatic in the dormitory towns around large cities, where most of the congested traffic is caused by the parents driving their children, in their privately owned cars, to the local schools. The government-funded investments in educational infrastructure failed to consistently approach this aspect, since funds are often earmarked for areas in demographic decline, instead of metropolitan areas with soaring birth rates. Then, public transport systems for children and students have been piloted in only Source: http://www.analizeeconomice.ro/2018/02/topul-judetelor-dupa-numarul-de.html a few cities nation-wide. Another problem that is easier to fix and mostly within the reach of mayors is that of parking lots. Few city halls in the country have had the courage to implement consistent policies in this field, by measures such as setting parking Therefore, equal access to education for children areas and progressive parking fees, enforcing towing rules, removing garages around blocks of flats, building park&ride facilities, implementing easy payment solutions for drivers, etc. However, in most cases, these measures were delayed should become a very urgent priority for local due to fears of disapproval among the population. authorities. Not least, in order to secure robust growth, Romanian magnet cities should extend their functional urban areas. Figure 45. Birth rate per 1,000 inhabitants in 2016 In many cases, approximately one million people live on a 50-100 km radius around them, but only a small part of them commute to the city mainly due to accessibility problems. In the cultural European context, unlike the American one, people generally commute on distances that does not usually require more than 60 minutes of travelling to the workplace. In case of many metropolitan areas, traffic jams limit this travelling to no more than 10-15 km from the city centre, as compared to the more usual 30 or 40 km. Therefore, there is a need for investments in the infrastructure connecting these dynamic cities to their mainly rural hinterland, which would ensure the required workforce, particularly in low-skilled industries. Otherwise, the population from those isolated rural areas would rather emigrate abroad if deprived of a robust professional anchor at local level. Need for infrastructure and public service investments to enhance the quality of life The World Bank survey on the Romanians’ willingness to emigrate reflected an essential prerequisite for the attractiveness of magnet cities: people value quality of life more than material gain. Concretely, they would rather move to another city where they are paid the same or less in their native city provided they had a better quality of life, which means anything from attractive public spaces to hospitals, schools or leisure opportunities. Sursa: INS. Tempo Online 84 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 85 To continue to grow, Romanian cities will need Even if Romanian cities will ultimately attract powerful investors in high-tech fields, the population growth will also drive up demand for various services, from shopping to restaurants, transport, cleaning, sports, beauty, various to attract workers from other countries, as its repairs, etc. These fields usually require average-skilled labor, which is increasingly hard to find in large cities. On the one hand, these workers are relatively low paid and often cannot afford living in large cities. This problem could demographic context is growingly unfavorable. be solved, to a great extent, by training the unemployed labor from rural areas or surrounding small towns, and by investments in connectivity and the mobility of workers. Particularly in the case of would-be migrants to Romania who are aged over 30 and already have a family, one of However, the second major problem is about education. Mainly in major Romanian cities, vocational schools in fields the aspects they will take into account will be the studying opportunities for their children. Few Romanian cities such as trade, catering, building or personal services, which used to attract students primarily from neighboring have international schools with curricula suitable for expats, a fact which weighs decisively in their option for one rural areas, have been shut down and turned into theoretical high schools, which fail to provide realistic prospects city or another. Therefore, local administrations should take active measures to attract such private institutions if for employment. Those remaining struggle to attract sufficient students due to multiple reasons, whether it is the they want their city to become an attractive and cosmopolitan one. mentality of parents and children or obsolete teaching methods. Therefore, local public authorities and the business environment should cooperate and reform vocational training, the most effective method at European level being the German dual model already successfully implemented in some Romanian cities (for instance, the Kronstadt Figure 46. Students in vocational schools in 2015 Vocational School of Brașov). At university level, Romania’s competitiveness is low when set against the European context, apart from a few specific cases. Romanian universities rely on ever shrinking generations of high school graduates in the country, while the numbers of foreign students remain low even when compared to neighboring countries. Besides, private sector continues to criticize the non-alignment between its expectations regarding graduates and what the universities have to offer. Some domestic universities showed openness to this dialogue, and thus there are educational programs carried out in partnership with local companies, internship programs, practical training programs or scholarships provided to students by entrepreneurs. However, these efforts need to be stepped up, including with assistance from local authorities and the business environment, and universities need to adopt an aggressive internationalization policy to prevent further declines in student numbers. The issue of accommodation for students is another hindrance in case of many major university centres in the country. Student dorms have been sized to accommodate student populations during the Communist period, which were several times lower than they are now. Therefore, many students without a place in a dorm have to rent apartments in cities, which led to an escalation of the cost of rents and negatively impacted other social groups as well. Not all high school graduates afford to pay market rent, and many even end up abandoning university studies. Where justified by the number of students, university campuses should be extended to allow as many young people as possible to access university education. Source: Ziarul Financiar (www.zf.ro) 86 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 87 Figure 47. Foreign students enrolled in Romanian universities in 2016 Romanian magnet cities should take concrete steps to attract talented young people and future entrepreneurs. Most of those cities are already facing stark deficits of skilled labor, such as the IT field, where there is fierce competition between cities and companies to attract and retain IT specialists. Local authorities may step in to address such situations, for instance by granting scholarships for students from informatics high schools or by subsidizing student dorm accommodation and board expenses for informatics high school graduates from other cities or countries who are studying in local universities. In the medical field, the infrastructure of large Romanian cities is entirely obsolete and outdated. The existing public hospitals operate in different locations spread around the cities and are unable to cope with the increasing numbers of patients, a trend which rises with the growth and ageing of the population. Moreover, many of these hospitals ended up serving the population of entire regions where only basis services are provided. On a positive side, the health service market was quick to react and grew faster than in other European countries, and Source: INS. Tempo Online took over some of the demand, except for emergency cases, where demand far exceeds the supply. In spite of that, life expectancy in large Romanian cities does not exceed Figure 48. Graduates of informatics and engineering universities in 2016 78 years, three years less than the EU average. In this context, it is vital that local authorities become actively involved and pressure the Government to develop a network of regional emergency hospitals, for which a strategy is already in place. Only a small portion of this investment will be paid for with European funds, while the balance will have to be secured from state funds, local budgets or PPPs. The cultural and sports infrastructure often ranks low in the prioritization of public investments, but plays an essential role in defining the attractiveness of magnet-cities for the young population. Source: INS. Tempo Online 88 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 89 Figure 49. Life expectancy (years) in 2016 International competitions for the redevelopment of public areas should become customary in local administrations. They should imply an external judging and consultations with the population. The need for infrastructure investments and business and innovation services In the previous chapters, we said that the first priority of local administrations from large Romanian cities should be to attract investments, and particularly foreign investments. Foreign investors can offer high wages and Source: EuroStat opportunities for horizontal and vertical development. TYoung people are the most important consumers of sports and cultural events, and their abundance and quality is The data collected by the World Bank reveals that foreign investments do not rule out domestic entrepreneurship, a major factor in their moving decision. In many major Romanian cities, cultural and sports events are performed in on the contrary. The areas which attracted most foreign investments are also those with the highest prevalence of inadequate premises built during the Communist period, which did not receive significant improvement and remain Romanian-owned companies. Practically, the presence of foreign investments create a fertile environment for the entirely unappealing for young audiences. horizontal and vertical development of local businesses (for instance, the take-over of the Dacia Plant of Pitești by This is again a case when state budget funding for the building of cultural centres, multi-purpose halls or stadiums the Renault Group led to new business opportunities for local entrepreneurs providing road transport services or for failed to consider a strategic dimension, and instead were oriented towards areas with a declining and ageing manufacturers of car parts serving that global scale customer). population, and hence have remained unused most of the time and became a burden for local administrations. Not least, as shown by the World Bank survey, Romanians (and all the more, foreigners and the Romanian diaspora) Figure 50. Prevalence of foreign-owned companies per 1,000 inhabitants in 2017 would prefer to move to good looking cities, which most often means a good quality of street pavement, the aspect of building fronts in the historic centres, the looks of markets, squares and parks. Most of the large Romanian cities maintain historic areas which escaped more or less mutilated from the Communist onslaught. Sadly, in many cases, such areas are unattractive, with dilapidated buildings and unkempt public areas. However, some cities successfully implemented programs to rebuild the façades of public and private buildings and to remodel historic centres into areas for pedestrian access, restaurants, open air terraces and event venues, which became actual agoras for citizens and tourists. As far as the so-called civic centres are concerned, which were built mainly during the Communist period, and the interstitial spaces between the blocks of flats, the situation is even more serious. They remain shabby-looking and are often used as parking lots or plagued by unsightly constructions (stalls, garages, etc.), and are not perceived as central areas (relaxation or socializing places) by citizens. Similarly, most green areas from the polarizing urban centres have been set by the authorities, but the building solutions prevent their full use by citizens (for instance, some are surrounded with metallic or hedge fencing, which work as a barrier for residents). In such a case, local authorities need to have access to best expertise in the field of public space development, which Source: Own calculations based on ONRC and INS data. often is only available abroad. 90 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 91 Figure 51. Prevalence of Romanian-owned companies per 1,000 inhabitants in 2017 Figure 52. Map of industrial parks in Romania in 2018 Source: Own calculations based on ONRC and INS data. Even if the “mayors” of such cities will take proactive measures to attract global scale investors from top industries, and even if they will succeed to attract and train the required labor locally, there remains the issue of available locations to pursue those investments. In the case of industry or logistics, these investors will need large lots of land, which often cannot be obtain by reconverting brownfield areas in cities (for reasons such as environment protection or heavy traffic restrictions) and are not owned by the city hall to be later provided to investors. In some situations, they are found in some periurban localities, which however have shrinking land reserves due to the recent major pressures from the real estate sector. Therefore, what remains is to resort to privately-owned land, where local administrations has relatively little leverage: the shifting of the respective areas towards economic use or the overtaxation of unused or underused industrial land. Other than that, any decision to sell remains only at the discretion of the private owner, who will obviously try to take advantage and maximize the price sought from investors. This could jeopardize the prospects of the investments, particularly when other countries in the region make low-priced land available for foreign investors. Source: MRDPA The solution to overcome this situation would be for the local authorities to develop industrial or logistics parks, with large lots of land and full utilities, which also have the advantage to provide tax incentives for the hosted companies. Obviously, in some cases, this will involve the purchasing of private land by the local authorities or its Returning to local entrepreneurs, their support is vital particularly in large university centres with many business- transfer from the ownership of central institutions (such as former military units). savvy young graduates who would not want to work for a foreign company, but start a business of their own. As fresh university or even high-school graduates, they are faced with the same difficulties as any new beginners: they have no idea how to set up a company, have no money to rent business premises, have no business contacts, are The current global context makes large cities, particularly Romanian cities without a transport infrastructure unaware of how to secure funding for their ideas, etc. Support services are absolutely essential for them, the most suitable for industrial use, more attractive for foreign investors from the service industry (such as IT, financial, widespread being business incubators and accelerators, preferably operated via public-private partnerships. Thus, advisory, outsourcing, etc. companies). Moreover, they also bring the most added value into a community, being local authorities could make available and develop those spaces, but they should be preferably operated by private employers of highly-skilled labor, pay above-average wages, do not pollute, do not take much physical space, entities which can attract other stakeholders as well, such as business angels or seed capital investment funds. etc. Unlike the industry companies, investors of this kind require class-A office buildings in easily accessible areas, preferably central, where multiple facilities are available (such as restaurants, public transport stations, Another rapidly growing market niche is that of work delocalization. Mainly in large Romanian cities experiencing nurseries, kindergartens, parking lots, etc.). Currently, the Romanian market for such spaces is underdeveloped traffic congestion and high suburbanization, service industry employees do not wish to travel daily to an office and monopolized by 4 or 5 cities, while the supply of class-A office buildings in other large cities is virtually non- which is usually one hour away from home, obviously when the job profile allows it (e.g., IT programmers). On the existent. Therefore, local authorities should encourage the private development of such areas via tax incentives other hand, there is a growing number of entrepreneurs who do not need business incubator services, but merely and urban rules, among others. some flexible working space to work on a temporary basis or to meet customers, without having to pay hundreds of euros to rent a dedicated office. This led to a rapid development of a co-working space market, where these people 92 M ETROPOLITAN ROMAN IA TOWARDS MORE COM PETITI V E M ETROPOLIS ES I N ROMAN IA 93 could rent, on a temporary or subscription basis, a working and/or a conference/meeting space, as close as possible Let’s be realistic - the chances that a Romanian region produced disruptive innovations in the medium term are to home or another preferred area. Such private initiatives should be supported by authorities, either by making quite limited. When much more developed Western-European and East-Asian regions experience limitations in available privately-operated co-working locations or by providing tax incentives. generating disruptive innovations, it is important to have a sense of reality. This does not mean however that Romania should not innovate - it already does. What we have to understand is what innovations are possible. A disruptive innovation need a large market for How can Romanian metropolises testing and promotion. The USA currently has the largest market of this kind – i.e. a sufficiently numerous population with extra resources and appetite for novelty. Besides, the USA has the advantage of global domination on the BECOME MORE INNOVATIVE media market, and American movies, series or music are the ideal means to promote and spread American-made innovations globally. The EU market for ideas has the downside of being very fragmented due to cultural and language barriers. More so, the EU failed to develop a media industry as dynamic as the American one. Thus, before attempting to bring innovative disruptions, Romanian authorities should take steps to create a framework conducive to such innovations. Some of these steps include: SILICON VALLEY • Using English as a business and research language. It is essential that EU innovators speak the same language. A patent or an article in Finnish will hardly reach other innovators from Europe or globally. English should normally be the second language of each EU citizen. National, regional and local authorities across the globe are trying to reinvent Silicon Valley-type areas at home. • A common and coherent system of protecting intellectual property and innovations. Silicon Valley is the epitome of an innovative area, and many public administrations are trying to emulate its example. Although one cannot really say they are innovators when in fact they emulate others, stimulating an • Programs to promote experience sharing among researchers. innovating area is actually a good thing in itself. An innovating city or area can set the tone for the rest of the • Easy access for researchers to the EU university infrastructure, including the system for promoting investments world instead of trying to catch up with others. Silicon Valley now concentrates companies which define the future via university campuses. of mankind. • Promoting the media industry, and particularly of channels serving the entire Union instead of individual countries. Figure 53. Ongoing patents in 2016 As far as innovations generated in Romania are concerned, it is important to have a sense of reality, but excessive modesty will not help either. For instance, the concept of the 5,000 EUR Dacia is a technological and promotion innovation originating in Romania. This innovation allowed Dacia to become one of the fastest growing automotive producers in Europe. Currently, Dacia has a bigger market share abroad that domestically, and the cars manufactured at Mioveni are the most successful export of Romania. DACIA The example of Dacia and the type of EU-generated innovations could be indicative for industries where Romania can innovate the most in the years to come. As shown above, the EU economy is dominated by three key industries, which soon will also dominate the Romanian economy – transport; chemistry; electronics. Many of the EU-generated innovations are marginal innovations from these three industries – for instance, a more powerful engine, a better detergent or a more energy-efficient refrigerator. Obviously, the EU generates innovations in other industries as well (for instance, the Internet was invented at CERN in Switzerland, but reached maturity in the US, and from there spread to the rest of the world), but the bulk consists in marginal innovations from these three industries. Source: WIPO 94 M ETROPOLITAN ROMAN IA RECOM M EN DATIONS 95 ȘCOALA KRONSTADT This has several clear implications for Romanian public administrations. The first is that a Romanian innovation stands better chances to originate from the dual learning system and vocational schools than from universities. This does not mean universities will not innovate, but that the chances to generate innovations useful for private companies will increase when education institutions have direct relationships with such private companies. A telling example in Romania is that of the Kronstadt vocational school, founded at the initiative of private companies from Brașov, with the support of the Brașov City Hall, where students learn how to respond to the needs of a private company. Adequately trained people are essential for companies in the transport industry (road, rail, air, etc.), or the chemical and electronic industries. Most of the times, the labor needed by the companies in these industries is educated in the dual learning system instead of the tertiary education system. This requires an appropriate approach at local Recommendations level, and city halls play an essential role in reinforcing the dual educational system and facilitating the connections between private companies and schools. In 2016, European companies with the most patent applications submitted were Bosch, Siemens, Daimler, Schaeffler, Philips, Ericsson, Basf, BMW, the first three having own manufacturing Below are reviewed some ideas on how to support Romanian functional urban areas to become true engines for capacities in Romania. Therefore, Romanian workers already have access to major innovation distribution channels growth at county, regional, national and even European level. in Europe. As far as the tertiary education and research-development systems are concerned, connections with US universities and research-development centres will prove vital. The USA leads by far the world in the fields of applied and theoretical research, and it is very important to have strong connections across the ocean. Provided they have something to offer, Romanian local administrations could try to persuade US universities and research-development EUROPEAN COMMISSION LEVEL centres to set up branches in our country. For instance, Constanța could host a research and development branch in sea studies, navigation, oil and gas extraction or tourism. Bucharest and the Ilfov County Council could promote the setting up of branches around the Măgurele project, which is fitted with unrivalled laser research infrastructure. Already in 2018, the European Commission set out guidelines on the new cohesion policy for the 2021-2027 programming period. The urban dimension of this policy grew when compared with the 2014-2020 period, so that cities will benefit of 6% of the total ERDF budget for sustainable urban development, will be encouraged to network via a dedicated programme, and will be assisted in strengthening the administrative urban authorities already set Table 17. Top US research universities up during the current financial cycle. Everything under the umbrella of the so-called European Urban Initiative. Rank University Score Thus, although the 6% share of the ERDF could have been more generous considering that primary and secondary cities alone contribute more than 60% to the Community GDP, the Commission followed through its commitment to 1. Harvard 98.5 continue massive investments in cities. However, the Commission could play an even more active role in designing 2. California Institute of Technology 97.5 a consistent policy in the field of urban and metropolitan development in Romania, whose main funder currently is, 3. Stanford 96.7 given the lack of dedicated governmental programmes in this field. For instance, the ITI financial tool, designed at Commission level mainly for urban areas, has been used by Romania for the Danube Delta during the 2014-2020 4. Princeton 93.9 programming period. This is indeed a natural area of great global significance, but is mainly rural, with a very low 5. Massachusetts Institute of Technology 91.9 population density and a very limited potential to generate economic development (its share into the national 6. University of Chicago 90.1 GDP is less than 0.5%). Therefore, it would not have a significant effect of multiplying public investments. Even if Romania will ultimately decide whether to include these territories into the next financial cycle, the European 7. University of Pennsylvania 90.1 Commission could take a more robust stand regarding the expected results from the application of this tool. 8. University of California, Los Angeles 88.1 9. Johns Hopkins University 88.1 10. Yale University 87.0 Source: The Times Higher Education World University Rankings 2018 96 M ETROPOLITAN ROMAN IA RECOM M EN DATIONS 97 The European Commission could continue its Moreover, there is a need for a more accurate regulation of how two TAUs could decide to merge administratively, obviously after consulting the population from the two communities, since the current legal avenues are too dialogue with local public authorities and their crippled by bureaucracy to encourage such initiatives. A solution to that extent would be the rapid deployment of an inter-ministerial working group, which would discuss a body of laws for Romanian metropolitan areas and include associations in order to establish the most effective representatives of the central administration, as well as from the FZMAUR, AMR, ACOR, UNCJR, etc institutional framework required for implementing Promotion of land use (master)plans for regional the urban and metropolitan development funds metropolitan areas. during the 2021-2027 programming period. These plans (prepared for just a few Romanian metropolitan areas), can serve as guidelines (should not necessarily have a regulatory character), but it is important they be discussed with all relevant stakeholders at metropolitan level in order to reach a consensus on the interventions proposed under such masterplans. Most mayors in metropolitan areas issue urban planning certificates or building permits only taking into account the PUG regulations, without consideration for metropolitan priorities. Such plans should be prepared by either the County Councils, or by the IDA It is a known fact that the authorities would like those programmes to more specifically address regional and set up at metropolitan area level local needs, and to be less centralized, via the central administrations. The involvement of FZMAUR as a dialogue partner of all initiators of legislative initiatives aimed AT CENTRAL ADMINISTRATION LEVEL IN ROMANIA at Romanian urban and metropolitan areas, in (GOVERNMENTAL) cooperation with AMR. Romanian functional urban areas which generate more than 90% of national GDP urgently need an integrated So far, FZMAUR has been rarely requested to be involved in central decision-making regarding topics of interest for public policy to continue to develop. Without these dynamic urban areas, Romania would be unable to develop and urban agglomerations, such as public transport legislation, local public finances, the funding of local development to accumulate sufficient resources to more effectively support poorer areas and social groups, for a longer period. programmes, etc. This policy will have to be aimed at different sectors: The design and implementation of a state budget An effective and flexible legal framework is required funding programme aimed at the preparation of for the organization and functioning of metropolitan (master)plans for the development of regional and functional urban areas in Romania. metropolitan areas Currently, this framework is rather vague, as the cooperation tool connecting the component TAUs selected by This could be developed by the MRDPA along the model of the Programme for the funding of PUGs and RLUs. The the lawmaker consists in the intercommunity development associations. They have the advantage of a higher eligible beneficiaries could be county councils and metropolitan area IDAs. flexibility than the administrative-territorial units (for instance, as regards bureaucratic procedures related to the implementation of projects, the recruitment of qualified staff and its adequate remuneration, etc.), but are also subject to certain limitations which hamper investments of common interest. This framework should obviously be more flexible to enable each metropolitan area choose the administrative model most suited to its needs. Some of Implementation of the ITI tool for the 2021-2027 those needs are met by the establishment of IDAs, other would want the law to allow component TAUs to submit to the metropolitan coordination structure a wider range of public services for which they lack sufficient skills or programming period in Romanian functional urban resources. For instance, the municipality could take over and modernize certain major channels of communication, in order to develop transport corridors in neighboring localities that lack the required resources. areas. 98 M ETROPOLITAN ROMAN IA RECOM M EN DATIONS 99 Romania will have to allocate at least 6% of its ERDF total national budget for sustainable urban development, has to be reminded that regional ROP will fund, via the axis dedicated to urban development (corresponding to PA4 i.e. nearly 2 billion EUR. However, it could, and should, allocate a percentage well above that, as Romania is the from ROP 2014-2020), interventions in small towns and in functional urban areas which have not been selected least urbanized country in the EU. Usually, around 25%-30% of the European funds allocated for the 2021-2027 for ITI funding. programming period should be aimed at the country’s economic growth engines, i.e. county capitals and their functional urban areas, along the lines of the Polish model from the 2014-2020 programming period. In the case of Romania, given the large number of county capitals and in order to prevent the waste of funds and its effects in many locations, there is an option to continue the growth pole policies from the 2007-2013 programming period (either the 7 proper growth poles, or supplemented with the 13 development poles), or to design other solutions The design and implementation of a programme (for instance, funding certain existing associations of those cities, such as the Brașov-Bucharest-Constanța Axis (BBC), the Western Alliance (AVE), Moldavia Develops (MDD), the Northern Transylvania Association (ATN), etc.). (supplementing the ROP and ITI) funded by the The interventions should be aimed the following major areas: state budget, aimed at developing metropolitan 1. CONNECTIVE INFRASTRUCTURE (public transport systems, roads, overpasses, areas (PNDM). metropolitan bridges, park&ride facilities, bike&ride, footpaths, etc.) – many already included in the Sustainable Urban Mobility Plans prepared for the 2030 horizon; This would be the first state-funded post-1989 financial tool aimed at the development of Romanian metropolitan 2. THE BUSINESS INFRASTRUCTURE (industrial, scientific and technological parks, areas, as the MRDPA investment programmes in the past 10-15 years were mainly aimed at rural areas and small business incubators and accelerators, exhibition centres, wholesale markets, etc.); towns (see PNDI, PNDL), under the umbrella of a so-called internal territorial cohesion policy. The programme should benefit from a multi-annual allocation, which could increase progressively according to the available resources. If 3. THE ESTABLISHMENT, EXPANSION AND STRENGTHENING OF METROPOLITAN the state budget were unable to accommodate such amounts from own resources (given the large commitment appropriations for PNDL), loans could be used instead. The World Bank, the European Bank for Reconstruction and PUBLIC TRANSPORT SYSTEM (bus, metropolitan trains, trams, etc.). Development or the European Investment Bank could grant loans for such investments, provided they are subject to sovereign guarantees provided by the Ministry of Public Finance. In terms of eligibility, this programme should 4. NVESTMENTS IN THE QUALITY OF LIFE (eeducation – nurseries, kindergartens, only fund projects covering at least two administrative-territorial units in the same functional urban area (to define campuses for high school and dual vocational education; health – outpatient facilities, these, the World Bank already issued a proposal based on the OCDE criteria, as Romania currently seeks to join regional hospitals, etc.; public spaces and green areas – urban regeneration in the old this organization), in order to avoid the concentration of investments solely to urban centres (one of the objections and new districts, historic centres, playgrounds, leisure areas, etc). against PA1 under the ROP 2007-2013). The County Councils and metropolitan IDAs from functional urban areas should also be eligible, provided they comply with the same territorial principle. Moreover, the proposed projects should be mandatorily included within a strategic and/or territorial planning document at the level of the functional Ideally, the connective infrastructure and metropolitan public transport systems should receive the bulk of the urban area (e.g., Sustainable Urban Mobility Plan, PATZM, etc.). The types of eligible projects should be proposed for funds, since they address the most severe problem in most of the major cities and their functional urban areas. the ITI, provided they be supplemented by interventions which are not generally eligible for European funding. In this case, most of the funds should be oriented to the connective infrastructure as well, particularly to those strategic projects which have not been funded from European funds. The ROP decentralization at regional level during The “Magnet Cities” report recommends the setting up of a National Metropolitan Investments Programme, funding the following major axes: the 2021-2027 financial cycle. 1. METROPOLITAN CONNECTIVE INFRASTRUCTURE. Nearly every large Romanian city needs additional connective infrastructure – both in order to facilitate better circulation Currently, an increasing number of local authorities claim that the national priorities do not necessarily reflect of people, goods and ideas within a metropolitan area, and improve connections between regional or local ones (for instance, all the development areas in the country receive the same percentage share from ROP 2014-2020 for investments in technological transfer, although some have 2 or 3 state universities, and others the metropolitan area and the rest of the world (markets, business partners, holiday more than 10), and that the brokering by the central management authorities makes absorption more difficult. On locations, etc.). the one hand, there already are intermediate bodies at regional level (Regional Development Agencies) with sufficient experience in all stages (from programming to help-desk, assessment, contracting, implementation, monitoring, 2. METROPOLITAN BUSINESS INFRASTRUCTURE. Most new industrial facilities are reporting, etc.), and even sufficient capacity (they have, on average, more than 100 employees, county offices, etc.) nowadays built outside the administrative territory of urban centres. The localities to become management authorities for programmes amounting to a few hundred million EUR/region. Therefore, where these business facilities are located, usually cannot afford to pay for such the decision is rather political and, if taken in due time, does not involve any major risks of reduced absorption. It infrastructure. 1 00 M ETROPOLITAN ROMAN IA RECOM M EN DATIONS 1 01 3. PUBLIC TRANSPORT VEHICLES, AND PUBLIC TRANSPORT INFRASTRUCTURE, population, or housing for young people), but these programs are haphazard, sporadic, SERVICING THE METROPOLITAN AREA (e.g. buses, trams, minibuses). There are few and not always strategic. The World Bank has provided a number of recommendations operational metropolitan transport systems in Romania right now, although commuter for the development of a unitary housing development program, which could respond data indicates that such systems are needed in most large cities. Financing metropolitan to clear needs in Romanian FUAs. It is also important to note that 52% of investments public transport infrastructure (e.g. transit stops, park-and-ride facilities) and vehicles, in new housing units in the FUAs of the 40 county residences, have been done in outer could encourage more localities to develop such systems – for the benefit of all people areas, not in the core city. More often than not, the localities in these outer areas living in the metropolitan area. lack the budgetary means for investments in housing, and national assistance is often necessary – particularly housing for less wealthy people. 4. REHABILITATION/MODERNIZATION/EXTENSION OF DISTRICT HEATING SYSTEMS. District heating systems represent a sustainable way of providing heating and 8. REHABILITATION OF PUBLIC SPACES. Quality of life is identified as one of the key electricity (if co-generation systems are available) to a community. Unfortunately, such factors that draws people to cities, and the better quality of life cities offer, the more systems are expensive to maintain and operate, and most cities have had difficulties attractive they are to people. Investments in the rehabilitation of public spaces, the with them. In some cities, district heating systems have disappeared completely; in extension/rehabilitation/modernization of parks and green spaces, the development others they have shrunk considerably, being replaced by individual heating units; while of pedestrian and bike paths, go a long way in making cities more attractive. Many of in other cities they are maintained at a significant expense for the local authority, the cities in Romania lack the necessary resources to raise the quality of life as fast as and usually require very high subsidies. Obviously, investments in district heating some migrants would require systems should be avoided where they do not make economic sense anymore. But in areas where such a system could be run efficiently, it is important to consider 9. CREATION OF METROPOLITAN PARKS. The majority of urban areas in Romania have assistance from the central level. a significant dearth of properly maintained green spaces. EU indicates that every urban centre should provide its citizens with at least 26 square meters of green space per 5. URBAN REGENERATION OF BLOCKS OF FLATS DISTRICTS. Despite the fact that capita. Most of the large cities in Romania failed to reach this threshold. Ensuring that 73% of the inhabitants of Romanian cities live in blocks of flats, there is no clear urban as many people as possible will have access to green areas will require in many cases regeneration programme aimed at blocks of flats districts. An investment programme the development of parks at the metropolitan level – particularly in cases where the core of the Ministry of Regional Development and Tourism, targeting the thermal-insulation cities lack reserves of land that could be converted to green areas. of apartment blocks, has subsequently triggered investments (from public, EU, and private sources) all over Romania. Thermal insulation investments are now financed by the Regional Operational Programme 2014-2020, and in many cities investments are financed, to a large extent, from private sources. Similar to the thermal insulation Focusing of EU and state-funded investments in program, the Government could provide financing for an urban regeneration programme, which would focus not only on the apartment blocks themselves, but also on the interior functional urban areas. and exterior communal spaces (e.g. green areas, playgrounds, parking lots, alleyways, bike paths). This is relatively simple and can be done by including a score bonus into the evaluation grids of funding applications. 6. REHABILITATION OF HISTORIC BUILDINGS AND HISTORIC CITY CENTRES. For instance, an application for the rehabilitation of a rural school under the PNDL will receive an additional X Many of the historic cities in Romania are relatively small and have small budgets. points if it is part of a strategic or territorial planning document at the level of a functional urban area. This is also As such, they are often incapable of taking proper care of their historic and cultural important for increasing the effectiveness of public investments, being known that the only areas with demographic growth in Romania are those around large cities. Therefore, they are in greatest need of public investments, and heritage, and thus deprive themselves of potential tourism revenues, while also missing public funds will be best spent there. the chance of making themselves more attractive to people and firms. 7. HOUSING DEVELOPMENT. A lack of access to affordable housing can hamper migration to dynamic cities and price-out some people living in those cities. The Ministry of Regional Development, Public Administration, and European Funds finances a number of housing development programs (from social housing, to housing for the Roma 1 02 M ETROPOLITAN ROMAN IA RECOM M EN DATIONS 1 03 Table 18. Budget for capital investments in a selection of functional urban areas in Romania, from 2014 to 2023 FUAs Core City Outer FUA Alba Iulia 79.335.483 € 31.894.242 € Alexandria 46.260.643 € 12.340.221 € Arad 232.769.605 € 108.216.628 € Bacău 188.467.721 € 46.380.921 € Baia Mare 121.925.796 € 52.188.515 € Bistrița 82.485.241 € 33.131.758 € AT THE LEVEL OF LOCAL ADMINISTRATION STRUCTURES IN Botoșani 81.888.934 € 11.699.039 € ROMANIA (city halls, county councils and their associations) Brăila 149.224.205 € 17.180.585 € Brașov 351.355.206 € 205.220.303 € Bucharest 5.654.747.305 € 925.833.873 € Buzău 137.931.058 € 62.100.824 € Călărași 59.315.472 € 19.173.525 € Setting up offices to attract foreign and Cluj-Napoca 419.765.525 € 127.378.156 € Constanța 347.545.474 € 271.325.926 € domestic private investments Craiova 274.330.186 € 78.357.190 € Deva 79.753.116 € 86.630.505 € Drobeta-Turnu Severin 87.125.205 € 20.908.405 € Focșani 80.345.981 € 50.574.338 € As shown above, the first priority of Romanian local public administrations should be the strengthening of Galați 265.953.658 € 53.513.589 € the private sector by attracting investments in sectors with high added value and wages. This will retain the Giurgiu 52.048.111 € 7.804.176 € local workforce, attract new inhabitants from the country and abroad, but also additional funds from local Iași 293.573.282 € 57.279.668 € budgets for public investments (very important, considering that some regions could stop receiving the same Miercurea Ciuc 48.510.742 € 33.226.739 € amount of European funds after 2027, given the alignment with the average EU GDP and the loss of eligibility Oradea 225.901.162 € 96.949.924 € for investments under the cohesion policy). These offices should provide integrated services to investors by Piatra Neamț 101.196.775 € 33.233.086 € appointing project managers for each company, and assist them throughout each investment cycle, from the Pitești 175.617.591 € 182.660.557 € identification and visiting of potential sites to staff recruitment or involvement in the community life after they became settled at local level. IDAs set up in functional urban areas could be the most suitable vector to establish Ploiești 271.826.657 € 206.769.858 € such offices, since they have metropolitan coverage, and much of the land eligible for investments is actually Râmnicu Vâlcea 118.712.548 € 90.120.590 € located outside of the administrative area of municipalities. Reșița 72.168.216 € 4.697.643 € Satu Mare 106.628.016 € 51.081.570 € One should mention that many Romanian municipalities already have a well-developed hinterland, with periurban Sfântu Gheorghe 53.413.468 € 17.736.645 € areas very attractive for investors. In its “Magnet Cities” report, the World Bank set out the budget that could Sibiu 213.315.669 € 116.573.688 € be allocated for capital investments, both in county capitals and in the localities making up the functional urban Slatina 96.011.879 € 30.411.915 € area (see below). Slobozia 48.660.441 € 21.521.552 € Suceava 123.734.102 € 39.814.303 € Târgoviște 98.853.981 € 56.294.072 € Târgu Jiu 84.787.696 € 37.480.986 € Târgu Mureș 184.351.885 € 70.009.762 € Timișoara 417.469.040 € 211.906.432 € Tulcea 82.633.476 € 16.334.304 € Vaslui 48.104.724 € 13.324.763 € Zalău 56.798.556 € 20.510.019 € TOTAL 11.714.843.831 € 3.629.790.795 € Source: 2017. Magnet Cities: Migration and commuting in Romania, Washington D.C.: The World Bank 1 04 M ETROPOLITAN ROMAN IA RECOM M EN DATIONS 1 05 Development of dual vocational education. A clear list of priority investments to increase Besides its infrastructure problems, Romania is beginning to lose ground in terms of attracting investments, due to quality of life. a deficit of trained labor. Some areas in the country, such as Brașov, have shown that viable solutions do exist in this case. Brașov is the seat of a German-inspired vocational dual-system school (“Kronstadt”), with an absolutely The survey carried out in the framework of the report “Magnet Cities. Migration and commuting in Romania” remarkable graduate promotion and retention rates at local level. It was the result of a combined effort by the local showed, on the one hand, that Romanians are more tempted to move in good-looking cities, and, on the other hand, administration (by providing some excess educational infrastructure, which is available in many Romanian cities that they would accept moving to another city where they earned the same or less, as long as that city provided due to the demographic decline) and the private sector, which became actively involved in fitting out the school and a better quality of life. Currently, most Romanian cities have development strategies with hundreds of pages of mentoring the students. Such models should be implemented in all Romanian urban agglomerations, based on the project ideas, which exceed several times the available resources, but fail to clearly prioritize, and thus remain specifics of the local economies. stuck on paper or in early stages of implementation. Although long ignored in favor of investments in paving roads and public utility networks, public and green spaces became a major determining factor for residents, and make a difference between cities. Therefore, besides the EU and state funds, municipalities should also invest public funds in international competitions for the remodeling of heritage public spaces (such as historic centres, civic centres, squares, etc.), of former Communist districts of blocks of flats, as well as new peripheral residential areas which Stimulation of local entrepreneurship, particularly most often are poorly built. in sectors such as IT&C or the creative industries. Many young people leave Romania due to their inability to pursue their business ideas, alleging the difficult access Strengthening training capacities and the to loans or the lack of effective support from the authorities. For them, the local authorities could design support packages within the legal means at their disposal. These can consist in either co-working spaces, PPP development of business incubators and accelerators, providing competition-based financial grants, tax incentives, etc. implementation of investment projects. As shown above, most project ideas from the strategies of Romanian local public administrations remain on paper or are implemented with long delays. In some cases, it is not even a matter of money (many cities already recorded a surplus of their development budgets after several consecutive years, thus they invested less than planned), Strengthening of universities as development but of limited administrative capability. With a few notable exceptions, city halls across the country lack “task force”-type implementation units for investments, which require large teams of multidisciplinary specialists able vectors in large Romanian cities. to manage significant investment funds. Thus, the fruition of a project idea from a strategy could involve a few months of documents travelling within an institution, then several other months in the tendering stage, ending up with an aggregate implementation period of 2 to 3 years. The World Bank suggested a staffing scheme for such The most attractive Romanian cities in the last decade have been and continue to be the large university centres implementation units in every local administration, contingent upon a realistic operational budget and simple, (Bucharest, Cluj-Napoca, Iași, Timișoara). They permanently attracted thousands of talents from ever-growing easy-to-implement monitoring and performance assessment tools (a “dashboard”-like system for the institution’s areas, which in turn attracted private investments in top industries and set the local economy in motion. Moreover, management). the universities also attracted a growing number of foreign students, which also boosted the purchasing power of those cities and brought a cosmopolitan feeling similar to that of large Western European cities. However, Romanian universities failed to reach their growth potential, considering their modest positions in European rankings. In addition, the demographic decline compels them to exit their comfort zone and contemplate attracting foreign students, and consider niche offerings. Local administrations and universities should cooperate more to that purpose. Thus, the administrations may act as a link between the private and academic sectors, but may also become involved in ensuring the supporting infrastructure, from the extension of university campuses to providing Sharing of best practices and the association of state aid to attract more airlines, or providing incentives and scholarships for out-of-region students who cannot afford to study at local level. local public authorities. All major Romanian cities excel in one field or another, but the management or executive teams fail to adequately promote such strengths. If they exchanged best practices, probably half of the specific problems faced by Romanian local administrations would find an easy fix. Therefore, such formal and informal exchanges should be encouraged. 1 06 M ETROPOLITAN ROMAN IA RECOM M EN DATIONS 1 07 One solution would be for AMR and FZMAUR to prepare best practices guidelines for local and metropolitan Figure 54. An effective monitoring and evaluation system administrations. Moreover, the civil society could become involved to facilitate events where mayors and city managers discussed solutions to specific problems. However, the personnel exchanges on specific topics at executive level (for instance, urban regeneration of historic centres, metropolitan transport systems, the administrative interface with citizens, IT applications for the use of citizens, etc.) remain the most effective. Active involvement of citizens and of the business environment in decision making and tapping into civic creativity. The local administrations of many Romanian cities continue to have a defensive and rigid stance against citizens and even the business environment. Most of the latter do not have any confidence in the administrations and permanently criticize them, and administration in turn refrain from genuinely consulting them before making decisions. A much more effective solution would be to overcome this gap and capitalize on the creativity of the civil society in order to improve quality of life at local level. The participative budgeting projects proved very valuable to that extent, by channeling the frustrations and dissatisfaction of citizens into ideas for projects for the administration. Moreover, the implementation of tools enabling citizens to submit real-time complaints regarding public spaces or the activity of the administration, together with the operation of civic councils which debate projects of public interest, constitute steps towards a long term cooperation between the public sector and the civil society. It is precisely this type of environment that Romanian cities need to keep developing. Preparation of an ambitious and realistic Source: European Commission. 2006. “Indicative Guidelines on Evaluation Method” development vision. As shown in this report, people are hardly moved by small or trivial ideas. A community will be hard pressed Without strong metropolitan areas, Romania will to embrace a project to pave a street – what it needs is a project that would stir imagination. Local pride and attachment to a certain city are not solely about the achievements of the past (such as beautiful buildings, a be unable to support its long term growth. The winning football team), but also about plans for the future. People want to be involved in ambitious plans and want to feel they also play a part in such a plan. Therefore, it is essential that local administrations develop, in close time to begin strengthening metropolitan areas in cooperation with citizens and local stakeholders, a far-reaching vision for development in the long run. It is also essential that such a vision for long term development include intermediate performance milestones which, on the Romania is now! one hand, would allow local administrations see whether they are on the right track (the scheme below, prepared by the European Commission, shows how an effective monitoring and assessment project should look like), and, on the other hand, provide citizens with concrete gains that could turn them from mere spectators into agents of change. A citizen who feels is a part of a blooming community and is instrumental in that development vision will be a citizen actively fighting for his or her community. The more stakeholders a metropolitan area has that are actively involved in its development, the more chances it will have to grow. 1 08 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 09 THE “PRIORITIES OF YOUR CITY” CAMPAIGN 110 M ETROPOLITAN ROMAN IA TH E “PRIORITI ES OF YOUR CITY” CAM PAIGN 111 THE “PRIORITIES OF YOUR CITY” CAMPAIGN The World Bank, in partnership with the Romanian Federation of Metropolitan Areas and Urban Agglomerations (FZMAUR) and with the support of subnational public authorities, established a set of projects with metropolitan relevance for Bucharest and the 40 Romanian county capitals. Subsequently, citizens have been invited to rank those projects based on their significance for the local community, within the framework of the largest domestic public consultation campaign on the topic of urban and metropolitan development. The mission of the “Priorities of Your City” Campaign consisted in supporting the cooperation between public authorities and citizens to develop the first metropolitan development vision for Romania. Objectives The main objectives of this initiative were: 1. Identifying a first set of major projects to enable and promote the development of the main functional and metropolitan areas in Romania, agreed by both the subnational public authorities and the local communities; 2. Prompting a debate on the urban priorities in these areas, inviting and encouraging citizens to be informed, dialogue and become civically involved in the future of their cities. 11 2 M ETROPOLITAN ROMAN IA TH E “PRIORITI ES OF YOUR CITY” CAM PAIGN 113 Figure 55. Campaign image Methodology Selection of metropolitan development projects A major step before the launching of the public consultation campaign was the collection of projects from all the urban development strategic projects relevant for each Romanian county capital and for Bucharest-Ilfov. Thus, the projects for each of the 41 functional urban areas contained under the General Urban Plans (PUG), Sustainable Urban Mobility Plans (SUMP), Integrated Strategies for Urban Development (ISUD) and the General Transport Master Plan (GTMP) have been selected and included in a database. Also included in the database were the project name, funding source, estimated budget and implementing period for each specific project. The result consisted in a first set of major strategic projects impacting each functional urban area of the county capital and of Bucharest. The final set of up to ten hand-picked strategic projects for each of the 41 functional urban areas was established following consultations with the Romanian public subnational authorities tasked with implementing such projects. The consultations began with a series of letters sent to all the mayors of county capitals, presidents of county councils, prefects, the heads of Regional Development Agencies and the coordinators of Romanian Metropolitan Areas. These letters explained the scope of the World Bank’s ongoing exercise and requested the authorities to take part in selecting no more than ten projects of metropolitan relevance which could promote the development of the region they represent. Moreover, the letters also mentioned the selected projects had to meet the following criteria: 1. Be part of an existing strategic or programmatic document (ISUD, IUDP, PUG, GTMP). 2. Have a minimum value, adjusted according to the budgetary capacity of each county capital. Source: Image created by the authors 3. Not have funding ensured from other sources. Within this first consultation process, the public authorities submitted to the team the selected projects for each county capital and the Bucharest-Ilfov metropolitan area. Duration The preparation of the “Priorities of Your City” public consultation campaign lasted for Survey for project ranking approximately 8 months. During this period, the team collected the current strategic documents All the projects have been included in an online survey, created and customized for the “Priorities of Your City” for the functional urban areas of Romania and carried out consultations with subnational public citizens’ consultation campaign. The online platform used was selected for the easiness in asking the different authorities, thus completing the final lists of projects of metropolitan relevance. types of questions and the easiness of use, and because it does not require the input of personal data for survey purposes. These criteria have been designed to facilitate and encourage the use of the platform by as many citizens as possible. The public consultation was performed online during January 22 – March 22, 2019, and consisted The survey has been based on two questions regarding: (1) the selection of the city, and (2) the ranking of projects in inviting citizens to rank the strategic projects selected for each functional urban area of the for the city selected at the first question. Filling-out instructions and information on the consultation campaign 40 county capitals in Romania, respectively the Bucharest-Ilfov metropolitan area. have been made available to the users on both the hosting platform’s webpage and via a video (https://www. facebook.com/prioritatile.orasului.tau/videos/2091168897607694/) promoted on the campaign’s official social media page (Facebook platform). The campaign results have been made public on April 3, 2019, after validation of all answers. 1 14 M ETROPOLITAN ROMAN IA TH E “PRIORITI ES OF YOUR CITY” CAM PAIGN 115 Campaign launch and performance Figure 57. The campaign’s web platform The public consultation campaign took place between January 22 – March 22, 2019. During this period, the citizens have been invited to access the online survey, select their city and rank the projects generated for the respective city (most important project first, least important project last), according to the importance and impact on the local community and metropolitan area. The campaign communication was mainly performed on the dedicated social media page (www.facebook.com/ Prioritatile.Orasului.Tau) and on the projects’ web page (www.prioritatileorasuluitau.ro). Figure 56. The campaign’s Facebook page Source: www.prioritatileorasuluitau.ro On this web platform, there were also published 41 maps which graphically outline the urban and metropolitan development strategic projects that were included in the public consultation process. At the end of the campaign, the maps have been changed according to the preference of most of the citizens and moved to the “Results” section. A major role in the campaign was that of Figura 58. Exemplu de mesaj de promovare din partea the public subnational authorities involved autorităților publice subnaționale in the project selection. To that extent, the prepared survey was sent to the representatives of each county capital, for distribution to relevant stakeholders in the respective urban area, namely: citizens, non-governmental organizations, the media, chambers of commerce, Source: www.facebook.com/Prioritatile.Orasului.Tau private companies, and other local public During the two campaign months, the Facebook page “Priorities of Your City” received likes from more than 2,200 institutions. To sound out what citizens users. Dozens of promotion actions have been ran on the social media platform, with messages customized for each think about the projects to be ranked, specific city, and inviting citizens to fill out the survey and hence become involved in their city’s development. Via the authorities used all the promotion messages published on a regular basis, the citizens received updates on the number of answers for each city and channels available to them: websites of were asked if they agreed with the first ranked projects. institutions, official or personal social media pages, the local media, local events, The campaign’s web page was a very useful tool, which allowed the submission of a large volume of information about posters, etc this exercise, such as details from the sections “About the campaign”, “FAQs” or “How to fill-out the survey”. Another important section was the one inviting the reader to have a say in the campaign and become its ambassador, by filling-out the survey and naming or inviting at least three other people to do the same. Thus, it was possible to mobilize public persons, but also less known citizens eager to bring positive change to their city. Sursa: Pagina de Facebook a Primăriei Municipiului Zalău 1 16 M ETROPOLITAN ROMAN IA TH E “PRIORITI ES OF YOUR CITY” CAM PAIGN” 1 17 The media representatives also proved very valuable partners in involving as many citizens as possible in the project The main partners of the “Priorities of Your City” public consultation campaign were UrbanizeHub, the founders of a ranking process. More than 100 local newsrooms supported the campaign on TV, radio and social media, with collaborative platform for ideas, opinions, projects and news about smart cities and sustainable urban development. customized messages for each county capital, while the national media covered the topic consistently and also From the very beginning of the campaign, our partners proved very effective in promoting public consultation mobilized the diaspora. on their own communication platforms, as well as on the local and national media, by taking part in dedicated broadcasts and writing customized articles.. Figure 59. Campaign article published by the local newspaper Ziua Constanța Figure 61. Promotion message on the UrbanizeHub social media platform Source: www.facebook.com/Prioritatile.Orasului.Tau Figure 60. Campaign article published by the national magazine Republica Source: www.facebook.com/UHubRomania Figure 62. Promotion message on the UrbanizeHub web and social media platform Source: www.facebook.com/Prioritatile.Orasului.Tau Source: www.facebook.com/UHubRomania 118 M ETROP OLITAN ROMAN IA TH E “PRIORITI ES OF YOUR CITY” CAM PAIGN 1 19 At the end of the campaign, the promotion messages published on the “Priorities of Your City” Facebook page recorded more than 400,000 views, reached more than 300,000 single visitors of the platform, out of which Results more than 33,000 interacted with the campaign page by either publishing a comment, viewing a campaign video, liking a message or photo, or by sharing the page content with other users. From a demographic standpoint, the persons most eager to become involved in the campaign via the “Priorities of The campaign managed to reach more than 150,000 citizens who accessed the survey and gathered more than Your City” Facebook page were those aged 55 to 64 and 45 to 54 years, followed by the 35 to 44 and 65+ year 100,000 responses at national level. groups, mainly men, particularly in cities with projects mostly in the transport infrastructure sector. The promotion content published on the Instagram channel via Facebook was most successful among users in the 18 to 24 and The priority projects ranked first by the citizens in each urban area consisted mainly in road infrastructure 25 to 34 year group. projects, such as the construction of motorways or expressways (59%), followed by health infrastructure projects, such as the building or refurbishment of county and regional hospitals (20%). The campaign received more than 1,200 mentions in the local and national media, reaching more than 240,000 unique views on the web platforms of Romanian media outlets. More than 300 unique fields of reference have been The campaign concluded with a final list of major priority projects for urban development for both Bucharest registered, including, besides the local and national press, the web platforms of public authorities and of the civil and each of the 40 Romanian county capitals. Since they were, for the first time, agreed by both the public society, as well as social media platforms. The chart below outlines the percentage of answers recorded in different administration and the local communities, these lists of projects will inform future decisions for public investments fields of reference, noting that not all the fields were registered due to the individual confidentiality settings of the based on a common vision. users. As sought by this public consultation process, the citizens became involved not only by ranking projects, but also by initiating debates on such projects and on their relevance for the community. The debates resulted in greater awareness among the communities of the priorities underpinning metropolitan development, and new projects have Figure 64. Percentage of answers per field of reference been proposed, and even new local consultation initiatives have been opened up. The campaign results have been communicated via the two official online platforms, namely the “Priorities of Your City” Facebook page and the “Results” section of the webpage. They are still available for consultation by the general public. 4% 3%2% Social media Figure 63. Example of promoting the final results (Top 3 projects selected in Baia Mare) 18% Others (unrecorded) Local media 48% Civil society Public authorities 25% National media Source: Data processed by the authors Out of the more than 100,000 answers for the ranking of priority projects, five cities recorded between 7,000 and 10,000 answers each, while 30 cities received more than 1,000 votes from citizens. The number of answers from citizens grew constantly during the two months of public consultations, as shown in the chart below, for each week of the campaign. Source: www.facebook.com/Prioritatile.Orasului.Tau 1 20 M ETROPOLITAN ROMAN IA TH E “PRIORITI ES OF YOUR CITY” CAM PAIGN 1 21 Figure 65. Number of answers by cities The results of the public consultations campaign have been submitted to each subnational institution involved in this process (city halls of county capitals, county councils, and prefectures), to the national and local media, to national and local non-governmental organizations, and also published on the own platforms of the campaign (the web platform and social media). The results have been communicated via interactive means and by various promotion materials intended to disseminate these results to as many citizens as possible. The maps outlining the priority projects for each functional urban area are included in Annex 1 of this document. Figure 67. Campaign image “100,000 involved people voted for their towns” Source: Data processed by the authors Figure 66. Number of answers during the campaign period Source: Image created by the authors Source: Data processed by the authors 122 M ETROPOLITAN ROMAN IA ROOF ROOFOV OVER ER OUR OUR EADS HH EADS-- HOUS HOUS I NG I NG ININ BULGARIA 1 23 BULGARIA 1 23 ANNEX 1 Graphic representations of the priority projects resulting from the public consultation campaign “CHOOSE THE PRIORITIES OF YOUR CITY” 1 24 M ETROP OLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 25 1 26 M ETROP OLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 27 1 28 M ETROPOLITAN ROMAN IA 1 29 AN EXA 1 1 29 ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 30 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 31 1 32 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 33 1 34 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 35 1 36 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 37 1 38 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 39 140 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 141 1 42 M ETROP OLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 143 144 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 45 146 M ETROP OLITAN ROMAN IA ROOF O V ER OUR H EADS - HOUS I NG I N BULGARIA 147 148 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 149 1 50 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 51 1 52 M ETROP OLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 53 1 54 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 55 156 M ETROP OLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 57 1 58 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 59 160 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 1 61 162 M ETROPOLITAN ROMAN IA ROOF OV ER OUR H EADS - HOUS I NG I N BULGARIA 163 164 M ETROP OLITAN ROMAN IA