The Changing Business Landscape of Romania: Lessons for and from Transition Economies


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Studies in Business and Economics

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Romania stands at the crossroads of Europe, Asia, and the Middle East. Since , when the country experienced the bloodiest revolution of all of the Warsaw Pact members, Romania has gone through withering change. While multinational corporations poured in hundreds of billions of dollars, there was also a restructuring of the way business was conducted. Western systems of management and organization—foreign to most Romanian academics and business people—almost overnight transformed the way the marketplace was perceived.

Fortunes were made. But the confusion went both ways. In truth, I was just trying to show that I understood and was following along with the story.

What is TRANSITION ECONOMY? What does TRANSITION ECONOMY mean? TRANSITION ECONOMY meaning

And then there was the even greater problem of how to act with Bulgarians who spoke English and were aware of the nodding—shaking problem. And what was I supposed to do when we were speaking Bulgarian? What if we were in a situation where both languages were being spoken? My head was spinning! Tuning in to how the people around me communicate has brought me closer to the people and the culture of Bulgaria.


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And whenever we slip up and forget to control our heads, the laughter that follows brings us together. Luckily, a smile is a smile the world over. The name Yugoslavia , applied to the region along the Adriatic in , means Land of the South Slavs. From to , the region had been called the Kingdom of Serbs, Croats, and Slovenes.

Non-Slavic populations surround Yugoslavia. The Dinaric Alps, with the highest peak at just below nine thousand feet in elevation, run through the center of the Balkan Peninsula.

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The rugged mountains separate and isolate groups of Slavic people who, over time, have formed separate identities and consider themselves different from those on the other sides of the mountain ridges. Distinct subethnic divisions developed into the Slovenes, Macedonians, Bosnians, Montenegrins, Croats, and Serbs, with various additional groups. These differences led to conflict, division, and war when the breakup of former Yugoslavia began.

The region of Bosnia, with a Muslim majority, faced religious opposition from its mainly Christian neighbors.


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  4. A group headed by Marshal Tito a. Tito was a centripetal force for the region of Yugoslavia. For over forty years, he held the many ethnic Slavic groups together under what he called Brotherhood and Unity , which was actually the threat of brute military force. It appears to have been effective. At the same time, Yugoslavia started manufacturing a model of automobiles called the Yugo.

    While the Yugo was not in the same league as high-end European luxury cars, the ability to make and purchase automobiles was a testimony to the rising industrial level of the Yugoslav economy. This progressive trend, unfortunately, was not to last. Albania is an independent country and was never a part of Yugoslavia.

    Tito died in The efforts were not approved or supported by the UN, which rejected Yugoslavia for membership in At that time, Kosovo and Montenegro were part of the Serb state. Fearing war, Slovenia, Croatia, and Macedonia declared independence in Yugoslavia was breaking up. After a brief but bitter war between Serbia and Croatia, the UN stepped in to halt the conflict. The first signs of ethnic cleansing The forced removal of one people by another through armed force.

    Serb military units would roll into a town or village and claim it as a Serb-only location. The Croats and any other people living there were forced to leave. Reports of assaults on women and the systematic killing of men of fighting age were documented. Sadly, ethnic cleansing began to be reported on all sides of the war. The bitter hatred between Croats and Serbs, which had been handed down from the World War II era, surfaced for a new generation.

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    Bosnia immediately declared independence and was approved by the UN in The region of Bosnia included people of Serb, Croat, and Bosnian ethnic backgrounds. Bosnia broke up along ethnic lines. The Serb group supported Greater Serbia; the Bosnian group wanted independence. In March , the Croat group signed an agreement joining with the Bosnian group against the Serbs. In , with strong pressure from Europe and the United States, the warring groups signed a peace agreement known as the Dayton Accord An agreement reached by leaders of former Yugoslavia to end the war in Bosnia.

    The country of Bosnia was divided into three parts: Serb, Croat, and Bosnian. Military forces continue to monitor and secure the regions of Bosnia.

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    Portions of Bosnia under Serb control have declared themselves the Republic of Srpska and have attempted to create their own nation-state. Both regions have sublevel governments within the formal country of Bosnia and Herzegovina. Herzegovina is a small region extending from the city of Mostar to the southern border with Montenegro. In June of , the region of Montenegro declared itself independent of Serbia.

    Montenegro uses the euro as its currency and has applied for WTO membership. Montenegro has privatized its main industries and is soliciting a tourism industry. The 1. They did not want to live under Serb control.

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    The historic battles against the Islamic Turkish Ottoman Empire in Kosovo have been memorialized in Serb tradition and history. The civil war in Kosovo between Serbs and Albanian Muslims was devastating the region and creating thousands of refugees. The tension, hatred, and massacres by both forces further complicated the peace process. The charges brought against him included ethnic cleansing and torture.

    The Changing Business Landscape of Romania: Lessons for and from Transition Economies The Changing Business Landscape of Romania: Lessons for and from Transition Economies
    The Changing Business Landscape of Romania: Lessons for and from Transition Economies The Changing Business Landscape of Romania: Lessons for and from Transition Economies
    The Changing Business Landscape of Romania: Lessons for and from Transition Economies The Changing Business Landscape of Romania: Lessons for and from Transition Economies
    The Changing Business Landscape of Romania: Lessons for and from Transition Economies The Changing Business Landscape of Romania: Lessons for and from Transition Economies
    The Changing Business Landscape of Romania: Lessons for and from Transition Economies The Changing Business Landscape of Romania: Lessons for and from Transition Economies
    The Changing Business Landscape of Romania: Lessons for and from Transition Economies The Changing Business Landscape of Romania: Lessons for and from Transition Economies
    The Changing Business Landscape of Romania: Lessons for and from Transition Economies The Changing Business Landscape of Romania: Lessons for and from Transition Economies
    The Changing Business Landscape of Romania: Lessons for and from Transition Economies The Changing Business Landscape of Romania: Lessons for and from Transition Economies

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