Romanian economic and business review

2006

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220 pages

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Abstract

The function of planning in a predominantly market-driven economy has to be symptomatic, co-coordinative and authoritarian. That provides the good reason for India's Planning Commission to engage in preparing development plans for the economy periodically even after liberalisation. However as it can't control investment in the private sector so such planning can at best be at least indicative. So the five year plans are now seek to provide an indicative path of development by setting out the imperatives for alternative growth scenarios in terms of macro-variables. It is still be necessary for planning commission to integrate and coordinate the plans of different ministries and undertakings of the central government, and bring them in line with the medium and long-term goals while keeping within the budget constraint. At the same time, the system of transfers from the centre needs to be reformed. There should be some rethinking on the relative roles of the planning commission and the finance commission. In this paper an attempt has been made to analyze the inter relation between economic development and directive roles of planning process in India.

Figures (71)

ADF Unit Root Tests on Xt and Yt in India The ADF test results shows that Xt and Yt at levels are nonstationary since the null hypothesis of unit roots have been accepted at 1% levels of significance with intercept in maintained equations. But the 1“ differencing leads to the ADF test results stationary since the null hypothesis of unit roots have been rejected at 1% levels of significance. Thus the Xt and Yt attains stationarity at their 1st differencing and both are integrated of order 1 i.e. both series are I(1) Engle Granger Co-Integration Test

6 Indicative Planning and Plan Economic Development of India: A Co-integration Analysis

nt - ian Inverse Roots of AR Characteristic Polynomial

Foreign Capital per Capita and GDP per Capita

Graph 2: Location Decisions for Foreign Direct Investments in Romania Foreign Capital per Capita and GDP per Capita minus B and IF Graph 3: Business in Romania — Location and Investment Decision

Foreign Firms per Capita and GDP per Capita

Total Number of Firms per Capita and GDP per Capita Thus, local economic performance and attractiveness to FDI in Romania are better expressed by the number of firms with foreign capital on the local level (NUTS-ID, not by the money included. This is quite reasonable as some lagging counties attracted large amounts of foreign capital due to the privatization of the heavy industry (such as the steel and energy sector or the automotive industry). Then again, these activities do not guarantee prosperity for the county as a whole nor seem these counties to be too attractive for other kinds of investors, yet. The pattern persists and even stabilizes with regard to linearity if the total number of firms, both entirely domestic and with foreign participation is taken into account. The total number of firms is captured here again with data from ONRC as registered companies between 1990 and 2008 and adjusted for county population size. A closer look on the counties Calarasi, Arges and Galati reveals now that economic activity is rather low and clearly below the mean what is also reflected in lower per capita GDP. Hence, the monetary large-scale investments there seem to be quite isolated.

Foreign owned Firms per Capita 1991 — 2007 and 2007 The result of this concentration of economic activity is not only higher GDP per capita for the lucky counties but often also full employment and a sharp concurrence on labor resources. At the same time other counties still feature excess labor force and ought to have a higher MPK judged over their lower GDP per capita

Figure 1: Relationships among IT, | E-Commerce, and | UI -Finance

Compared to the world trend, the Albanian economy is characterized with low level of usage IT and the Internet. The companies are insufficiently utilizing the opportunities provided by the contemporary technologies in terms of improving their efficiency and their inclusion in the global information society. The current situation in the country is due to the lack of complete legal framework, international standards, competitive prices of the telecommunication (internet) services in the country, as well as the lack of founds, knowledge, skills, adequate strategy, good management etc. The weak relative position of the IT sector of the Republic of Macedonia reflects the poor development of the country's economy and a low overall purchasing power. Po a Pe ee ce Wee: eee a Se i cs eee ce ec wwe we De cece ce Figure 2: Revenue Of The Albanian ICT Sectors By Segments

This case is focused on treasure system of Albanian Ministry of Finance. What is moving the world is related to the fact that E-finance is helping the international economies in the process of globalization and specifically in the proces of european integration. This is done through ministries of economies, ministries of finance of finance agencies. This is exactly the focus of our paper, to show how national financial bodies, as Albanian Ministry of Finance is helping not only the globalization, moving thorugh an e-based economy, but also in the process in european integration. Figure 3: Internet Penetration In Selected Countries (In %), 2007

Table 1: Some part of Albanian Strategy for IT development This table describes the sections and the key goals of the Albanian National Information and communication Technology Policy

Figure 3 : Public Financial Management Cycle

Figure 5: The Operations Of The Procurement System Understanding the importance of being a part of the global (information) society, all segments banking, insurance companies, government, etc), in the Albanian society ate involved in the adoption of IT in their operating as well as everyday activities. Although the figures show low level, the raising trend is what worth fostering and supporting with different projects and activities. With its aspiration to become an EU member country Albania needs to adhere to the “...strategic goal: to become a dynamic and competitive knowledge based economy in the region...”

Source: “Policy Responses to Slowdowns: Making Fiscal Stimulus Effective during Downturns” (Scott, IMF Survey Magazine, 2008). from a recession [article on http://www.investopedia.com]. An expansionary fiscal policy (government spending higher than tax revenue) is a stance of fiscal policy that involves a net increase in government spending, through a rise in government spending or a fall in taxation revenue or a combination of the two, being associated with a budget deficit [article on http://en.wikipedia.org]. This leads to a larger budget deficit or a smaller budget surplus than the government previously had, or a deficit if the government previously had a balanced budget. According to Weil (2008), in a recession, the government can run an expansionary fiscal policy, thus helping to restore output to its normal level and to put unemployed workers back to work. Often, the focus is not on the level of the deficit, but on the change in the deficit. A contractionary fiscal policy (government spending higher lower than tax revenue) occurs when net government spending is reduced through either higher taxation revenue or reduced government spending or a combination of the two, being associated with a surplus [article on http://en.wikipedia.org]. In practice, discretionary fiscal measures are typically slower to arrive than both ee wig oe ee ee a i eee ge pe ge TE ee ee nee A Ms ge ee a a ee ee ee ee ee

Advantages associated with the EU integration include a better chance of presence of Albanian products in EU market An important benefit is that the country is obliged to adopt an economic strategy that promotes competition, and thus a mote efficient allocation of resources. EU integration will have long term effects for the Albanian economy, including being part of a large market, which brings several benefits associated with economies of scale and a_ favorable environment for FDI-in. Moreover, Albania has to enhance standards and legislation in line with those of Western countries, which will be accompanied with positive impact, even in the environmental field. Albania is going to attract more FDI due to a more harmonized legislation, a free movement of goods and services and economic and political stability. The cons arguments on the Albanian integration are linked with the removal of

Scheme no. 1. Types of social benefits granted to families

Chart no.1 The numerical evolution of the beneficiaries for financial support for setting-up a family between 2007 and 2009

Chart no. 2. The number of beneficiaries of trousseaus for new-borns, of allowances for new-borns and parental allowances between 2005 and 2009

The difference between the quantum of the complementary allowance and the quantum of the support allowance depends on the number of children in the family. Therefore, in 2009, for the family with one child, the complementary allowance was 50 lei and for the family with 4 children it was 70 lei. It’s obvious that although it’s gradual, the variation between the levels of the allowance is extremely low, 5 to 10 lei. Thus, we could rhetorically ask ourselves if a low income on each family member and the expenses for raising a child may be compensated with 5 or 10 lei? Another criterion of differentiation is the time factor. In this regard, we are able see the ascending evolution of the value size for the three categories of allowances

Chart no. 5. The evolution of the number of beneficiaries of the parental incentive between 2006 and 2009

According to him, behind the difference between Capitalism and Human- capitalism there are different views on enterprises and people. There are three views of enterprises. Activities of enterprises are classified into the following three types: 1) Collective of activities of material transformation; 2) Collective of information processing and learning; and 3) Collective of psychological reaction of enterprises’ member. In capitalist enterprise system there is stratification of three views of enterprises. At the bottom there is a view of materials. People are grasped as things. [In order to make the things function a view of information becomes necessary. Then psychological aspect of human beings should be considered as an element which affects the information activity. In contrast, in human-capitalist enterprise system the three views of enterprises exist on equal footings or as a total behind the system. There is no stratification of the three views, or weak stratification if any. An enterprise is grasped as a collective of human beings. Human beings as physical substance, human beings as informational substance and human beings as psychological substance are all explicitly taken into consideration (Ibid., p.51) Why was it born in Japan? Was it due to its culture or the epoch? According to Itami, prewar society of Japanese enterprises was much more capitalistic than now. Itami presents the following hypothesis: If we distinguish a principle from an institution in our consideration, the principle of human-capitalism is not bound by the Japanese culture, but it is most likely that the institution as receptacle, which has supported the principle during the post-war period, has been affected by the Japanese culture (Ibid., p.60).

IV. Iwai’s argument

Figure 1 - Common characteristics of European management

source: Daniel Jime ‘nez-Jime’nez and Raquel Sanz-Valle

Stage 4. Elaboration of the reimbursement table

Accounting of Lease Contracts According to LAS 17 “Leasing Contracts”

Source: Elaborated on the basis of the data from the International Monetary Fund (1993-2004) and Eurostat (2005-2008)

Figure 3: The evolution of Romania’s consolidated general budget deficit and primary deficit/surplus in the interval 1993-2008

Source: Eurostat; ] EU | Economic Data pocketbook, Quarterly 1-2008, p.76-77; The International Monetary Fund.

Source: Eurostat; ] EU | Economic Data pocketbook, Quarterly 1-2008, p.76-77; The International Monetary Fund.

Source: Eurostat; ] EU | Economic Data pocketbook, Quarterly 1-2008, p.76-77; The International Monetary Fund.

Romania is included in assessments related to global competitiveness, based on the Global Competitiveness Report of 2009 - 2010, prepared by the World ranking that the World | RL LP. 1 | Economic Forum. The report includes the global competitiveness index, calculated for 133 countries, using data from the year 2008 as a base for estimations. The Economic Forum makes through the Global Competitiveness Report a0) ant distinguishes # three ie shapes ae Hewelopsoaemi:

Figure 1. The relation between product quality and specifications quality (Source:Total Quality Management, Marieta Olaru - ASE Bucharest)

a pratt 101 BITIPIUVETTICTIL aso WU ao Specie LILA SULES LU CValUdale Pprtytitaliir. Do The next step in the cycle is implementing the plan (do). During tl implementation process managers should document all changes made and colle data for evaluation. Study The third step is to study the data collected in the previot phase. The data are evaluated to see whether the plan is achieving the goa established in the plan phase. Act The last phase of the cycle is to act on the basis ¢ the results of the first three phases. The best way to accomplish this is 1 communicate the results to other members in the company and then implement tk new procedure if it has been successful. Note that this is a cycle; the next step ts t plan again. After we have acted, we need to continue evaluating the proces planning, and repeating the cycle again.

Romanian Economic and Business Review — Vol. 5, No. 4 Figure 4. Cause-and-effect (fishbone) diagram ( Source: www.wiley.com/college/sc/reid/chap5 )

Figure 5. Competing objectives in production systems design ( Source: Designing production systems for quality: research opportunities from an automotive industry perspective ) Designing production systems for quality

Figure 6. - Internalizing the relation client - supplier (Source: Total Quality Management, Marieta Olaru - ASE Bucharest)

a > ee The Pillars on Which Top Management Must Focus Their Resources

Still, at the base of interferences between real fluxes (incomes and expenses are associated to the movements of goods and services) and monetary fluxes (proceeds and payments), the accounting result can be calculated based on a cash accounting. Starting with the /og of proceeds and payments and with the /odges, to which the of assets and liabilities inventory can be added, the account of profit and loss can be generated. The calculation relations are based on the balance that can be settled between incomes-expenses and proceeds-payments. For this purpose a balance of regularizations is made, as such: Current accounts in banks