Embassy Press Release

Remarks delivered by Ambassador Mark H. Gitenstein, on the Occasion of the "Romanian Economic Forum," organized by the American Chamber of Commerce in Romania

October 5, 2009
Athenee Palace Hilton, Bucharest

Ambassador Mark Gitenstein (Right) delivers remarks at the Romanian Economic Forum, Bucharest, October 5, 2009 (Photo: Ana-Maria Popa / Public Diplomacy Office)

Mr. President,
Members of the diplomatic corps and business community:

Nearly 20 years have passed since the momentous events of December 1989, which brought an end to Communism and marked the beginning of Romania's transition to democracy and free-market capitalism. Over the last two decades, this country has undergone a remarkable political and economic transformation leading to full membership in NATO and the European Union. I salute these tremendous accomplishments.

Foreign direct investment has been the lifeblood which has made this historic transformation possible. Since 1993, when the American Chamber of Commerce in Romania was founded with just over 20 companies, membership in AmCham has grown to more than 300 companies. AmCham members collectively represent more than 10 billion dollars in investments and provide good-paying jobs to more than 150,000 Romanians. And these figures, impressive though they are, represent only a fraction of the total. The United States is not even near the top of the list as a source of investment in Romania; even larger investments have come from other European countries, as represented by the national chambers of commerce and the Foreign Investors' Council present here this morning. International business has furnished much of the money, the training and technological know-how, the management expertise, and the jobs which drive Romania's economy today.

For that fundamental reason, it is vitally important that the collective voice of international investors be heard in the process of government policymaking, and that the Government of Romania and the international business community work as true partners to confront the economic challenges Romania faces, both now and in the future. This must, I believe, include a recognition on the part of government that understanding the concerns of existing investors and working in good faith to resolve them is at least, if not more, important than seeking to recruit new investors into the Romanian market.

After succeeding waves of inward investment over the last two decades, with the global recession we have entered a slower period of consolidation and adjustment. Since 2000 direct foreign investment here has meant over 10,000 RON for every man, woman and child in Romania. Over the next few years to maintain anything like that commitment, the competition among countries and regions for scarcer investment dollars will likely be intense. Romania will profit immensely if it works to create a better business climate for those investors who are already here, and avoids taking them for granted. If they have the confidence in Romania to increase the level of their investments, then other new investors will inevitably follow. Of course, the opposite is also true – if existing investors become discouraged, then Romania's reputation among all potential investors will suffer. We all have a collective interest in seeing that Romania continues to be a competitive and attractive place for international business.

At the same time, let me also underscore the vital role that Romania's own enterprises, especially small- and medium-sized businesses, must play in this country's development. Our own history in the United States is instructive. Our prosperity depends far less on big corporations and far more on small businesses than most people realize. Our ability to create and maintain an environment in which entrepreneurs, particularly young people, can start their own businesses and make them succeed is a driving factor behind America's economic vitality and is a powerful magnet that continues to pull immigrants from all over the world to our shores.

No country can thrive over the long term unless its younger generation sees in it a future of opportunity and a welcoming environment in which to invest their energies and entrepreneurial skills. I fear that too many young, talented, and ambitious Romanians still perceive that their future might be better elsewhere. Together, government and business should be focused on ways to make Romania a land of greater opportunity for entrepreneurs and small business owners.

Given the vital importance of investors and entrepreneurs for Romania's future, the business community's initiative to convene today's Forum sends a strong signal that, from their perspective, some things need to change. I hope that government and business leaders can have an open and honest dialogue today in order to understand each other better, and to agree on actions you can take together to increase Romania's economic competitiveness. Let me share just three thoughts on issues I hope this dialogue can touch upon.

First and foremost, the business world, including investors, needs stability and predictability in government decision-making. Policies should reflect a long-term vision for national development and strategic planning for how to get there. These plans should be ambitious but also realistic in terms of what can genuinely be accomplished. A robust dialogue with business is essential for establishing priorities and defining realistic goals and milestones.

Then, once strategies are adopted, they have to be implemented and the necessary resources allocated to carry them out. In this phase as well, government should view business as an essential partner and contributor, not simply a hindrance or an inconvenience. Major challenges like building road infrastructure, developing the energy sector, or improving health care require such an approach in order to succeed. Investors need to be able to trust that government strategies will indeed be implemented, and that business will be included in devising solutions.

Second, we all recognize that circumstances and realities change, and that government policies and strategies must be changed and adapted in response. When this happens, however, the business community needs an honest opportunity to review and respond to the proposed changes. It is very detrimental to the investment climate to issue government ordinances which have a major impact on business interests, but which take investors by surprise and about which they have not been consulted. Transparency is not simply posting rule changes on a ministry website. Rather, it means seeking business input early and then reflecting it in the final decision. Businesses need to know that their views matter.

Finally, this government’s continuing commitment to the rule of law cannot and I am confident will not flag. I would like to take this opportunity to thank President Basescu and his colleagues for their relentless effort to settle the judges' strike. Without a functioning, disinterested judiciary, laws are no more than empty words. And, of course, the reappointment of Laura Kovesi demonstrates a commitment to hold the powerful accountable. And your appointment of our friend Alexandra Gatej demonstrates that you want someone around you who really understands business. Two remarkable women – Thank you Mr. President.

There are limitless opportunities in Romania for government and business to partner together so that Romania can emerge even stronger from this economic crisis and better prepared to grow and thrive in the years ahead. I hope everyone in this Forum today comes prepared not just to speak, but also to listen; not simply to criticize, but to cooperate. I look forward to hearing your views. Thank you very much.

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