The Poverty
According to a report released by GINI-Research (see full report below), in Romania, inequalities have been driven by a complex of historical, economic and social factors. The communist past has left enduring marks on the country’s development, while transition shaped long lasting inequalities. During the process of post-communist transformation, Romania has been through a severe economic decline accompanied by an important rise in poverty and inequality.
Related to inequality, privatisation of large state assets created important opportunities for the concentration of resources in the hands of a small elite and has been one of the major factors leading to the formation of large private wealth. Corruption and its particular form, state capture, created unjustified privileges for some categories, and produced misbalanced outputs in society.
While privatisation of agriculture has generally had a distributional favourable impact, it contributed to the emergence of a large, unproductive, fragmented agricultural sector dominated by a subsistence type of farming. Even though it served as a safety net for numerous households, both for the rural population and for those coming from urban areas who lost their jobs during the industrial restructuring process, it is still a low productive sector that hasn’t realised its potential yet.
Informal economy grew to a high extent and, while absorbing a large mass of the restructured work force, it turned into a driver of inequality, as in the informal sector, the rich tended to increase their gains, while for the poor it was a mere survival strategy. Emigration, and especially its more recent form, emigration for work produced heavy imbalances in the Romanian workforce.
Although generally contributing to increasing living standards, emigration also exacerbated the existing inequalities. Social policy compensated for the negative effects of transition only partly. In difficult times, people relied more on kinship networks and the subsequent inter-family transfers, on subsistence agriculture or immersion in the informal economy.
Roma population have been impacted by the transition to a great extent. The low opportunities on the labour market for a lower educated and qualified labour force, the traditional outdated occupations, the cultural models and the discrimination they are subject to, all contributed to a trend of social marginalization of Roma. Transition created new opportunities for some categories while considerably lowered prospects for others. A certain stratification of life chances by age, education, employment status has emerged and widen in time.
Related to inequality, privatisation of large state assets created important opportunities for the concentration of resources in the hands of a small elite and has been one of the major factors leading to the formation of large private wealth. Corruption and its particular form, state capture, created unjustified privileges for some categories, and produced misbalanced outputs in society.
While privatisation of agriculture has generally had a distributional favourable impact, it contributed to the emergence of a large, unproductive, fragmented agricultural sector dominated by a subsistence type of farming. Even though it served as a safety net for numerous households, both for the rural population and for those coming from urban areas who lost their jobs during the industrial restructuring process, it is still a low productive sector that hasn’t realised its potential yet.
Informal economy grew to a high extent and, while absorbing a large mass of the restructured work force, it turned into a driver of inequality, as in the informal sector, the rich tended to increase their gains, while for the poor it was a mere survival strategy. Emigration, and especially its more recent form, emigration for work produced heavy imbalances in the Romanian workforce.
Although generally contributing to increasing living standards, emigration also exacerbated the existing inequalities. Social policy compensated for the negative effects of transition only partly. In difficult times, people relied more on kinship networks and the subsequent inter-family transfers, on subsistence agriculture or immersion in the informal economy.
Roma population have been impacted by the transition to a great extent. The low opportunities on the labour market for a lower educated and qualified labour force, the traditional outdated occupations, the cultural models and the discrimination they are subject to, all contributed to a trend of social marginalization of Roma. Transition created new opportunities for some categories while considerably lowered prospects for others. A certain stratification of life chances by age, education, employment status has emerged and widen in time.
Absolute poverty declined from 35.9 percent in 2000 to 5.7 percent in 2008. Still, Romania is the European Union’s second-poorest state. Some 9.5 million people, or roughly half of the population, are receiving welfare, unemployment, housing and central heating aid, or other supplemental benefits on a monthly basis. That equates to a national expense of $3.2 billion a year.
One-fourth of young adults (ages 18 to 24 years old) live in relative poverty, the highest rate in the EU. 40% of this age group are at risk of social exclusion.(DPC report). Because of their lack of buying-power, youth are forced to live with their parents into adulthood, thus increasing the family size. About 45% of those with full-time jobs still live with their parents, compared with 38% in the EU. [6]
One-fourth of young adults (ages 18 to 24 years old) live in relative poverty, the highest rate in the EU. 40% of this age group are at risk of social exclusion.(DPC report). Because of their lack of buying-power, youth are forced to live with their parents into adulthood, thus increasing the family size. About 45% of those with full-time jobs still live with their parents, compared with 38% in the EU. [6]
In an article published in January, 2014 [1], John Feffer, Director of Foreign Policy in Focus at the Institute for Policy Studies, who in 2012-13 was also an Open Society Fellow looking at the transformations that have taken place in Eastern Europe since 1989, wrote:
"Romania is near the bottom of all social indicators in Europe. If you live in Denmark, you have approximately a one in seven chance of growing up in poverty – or what Brussels calls AROPE (at risk of poverty or social exclusion). But if you live in Romania, at the other end of the EU spectrum, the odds are a much more sobering 50-50. When it comes to the elderly, only Bulgaria has a worse AROPE rate than Romania.
Even for able-bodied adults, the situation is not so good. The unemployment rate in Romania is rather low -7.3 percent– considerably lower than the current EU average. But Romanians are not getting paid very much for their work. The country ranks last in the EU in terms of individual wealth.
One of the reasons why such a large portion of the Romanian population remains mired in poverty is the relative indifference of the government to the needs of the poor.
“In 23 years, Romania only mentions economic reform. There’s no public speech about social reform,” observed Mihai Florin Rosca, a long-time NGO worker in the Transylvanian city of Cluj. “Romania will do economic reform without regard to human resources, social investment, social change. Everything else does not count. It’s just economics. There’s no mention of morality, ethics, social planning, nothing.”
As Romania prepared to join the European Union, it did what was necessary to bring its social policy in line with EU standards. But after accession, the government went back to ignoring at-risk populations. In an ideal world, EU funds would have at least partially compensated for the government’s indifference. But the government failed to take full advantage of those funds – the absorption rate has been the lowest in the EU – and the rules governing NGO access to EU money make it almost impossible for all but the largest organizations to participate in the programs."
"Romania is near the bottom of all social indicators in Europe. If you live in Denmark, you have approximately a one in seven chance of growing up in poverty – or what Brussels calls AROPE (at risk of poverty or social exclusion). But if you live in Romania, at the other end of the EU spectrum, the odds are a much more sobering 50-50. When it comes to the elderly, only Bulgaria has a worse AROPE rate than Romania.
Even for able-bodied adults, the situation is not so good. The unemployment rate in Romania is rather low -7.3 percent– considerably lower than the current EU average. But Romanians are not getting paid very much for their work. The country ranks last in the EU in terms of individual wealth.
One of the reasons why such a large portion of the Romanian population remains mired in poverty is the relative indifference of the government to the needs of the poor.
“In 23 years, Romania only mentions economic reform. There’s no public speech about social reform,” observed Mihai Florin Rosca, a long-time NGO worker in the Transylvanian city of Cluj. “Romania will do economic reform without regard to human resources, social investment, social change. Everything else does not count. It’s just economics. There’s no mention of morality, ethics, social planning, nothing.”
As Romania prepared to join the European Union, it did what was necessary to bring its social policy in line with EU standards. But after accession, the government went back to ignoring at-risk populations. In an ideal world, EU funds would have at least partially compensated for the government’s indifference. But the government failed to take full advantage of those funds – the absorption rate has been the lowest in the EU – and the rules governing NGO access to EU money make it almost impossible for all but the largest organizations to participate in the programs."
Food packages for the most deprived persons
In September 2014, the Romanian government had announced the distribution of 18 kg food packages, containing flour, cornmeal, oil, sugar, pasta, canned meat and paté, to more than 6.5 million people. That's 700,000 people more than the previous year.
This demarche is endorsed by the Ministry of European Funds, that published on 20 September a notice of auction in which the Romanian government said it wants to provide 6,652,986 food packages within the Fund of European aid for the most deprived persons. More specifically, over 150,000 food packages would be sent to each county, totaling 100 million euros.
Entitled to receive such aid, are disadvantaged people such as the pensioners, the infirm, unemployed people and war veterans whose monthly income doesn't exceed 400 Romanian Lei (+/- 90 euro). [3]
This demarche is endorsed by the Ministry of European Funds, that published on 20 September a notice of auction in which the Romanian government said it wants to provide 6,652,986 food packages within the Fund of European aid for the most deprived persons. More specifically, over 150,000 food packages would be sent to each county, totaling 100 million euros.
Entitled to receive such aid, are disadvantaged people such as the pensioners, the infirm, unemployed people and war veterans whose monthly income doesn't exceed 400 Romanian Lei (+/- 90 euro). [3]
Emigration
Romania’s migration pattern is mainly characterised by emigration, especially following accession to the European Union on 1 January 2007. The number of Romanians working abroad in 2014 is estimated to be around 3 million persons. The worrying part is that Romania's high emigration rate also affects highly educated professionals such as doctors.
According to VICE, in the last five years, around 14,000 medics have left Romania. And it's a trend that shows no sign of stopping; the patience of resident doctors was tested to its limit in February 2014, when Prime Minister Victor Ponta promised them an extra monthly allowance of €150 on top of their salaries, only to hold off giving it to them (not that it would have been of much use anyway, given how low their salaries were in the first place). The crappy situation for doctors also leads to corruption, with bosses sometimes soliciting bribes from those who want to work in their hospitals. [2]
Shortly after the 1989 so-called “revolution,” Ryszard Kapuściński said that the people abolished the dictator, not so that they could turn to the building of democracy, but so that they could open up the borders and leave. According to the latest census that was taken in 2011, Romania lost 2.68 million inhabitants in the last 10 years. The greatest loss of population in all of Romania was in Galati, which dropped 22.56% – from 298,589 in 2002 to 231,204 in 2011. It is now the 5th largest city in the country.
Romanians abroad are expected to send about USD 3.6 billion to their home country in 2013, making it the third largest volume of remittances to a developing country in the region (behind Poland and Russia), according to a recent World Bank report. The amount sent to Romania in 2013 is expected to be almost flat on 2012, and smaller than in 2011, when it reached USD 4.5 billion, as well as from 2010, when it stood at USD 4.9 billion.
Over the past year, there was much negative press in the UK as they removed travel restrictions on Romanians and Bulgarians. Although they expected to be overwhelmed by the flood of Romanian and Bulgarian immigrants, the total of 140,000 citizens from Romania and Bulgaria employed in Britain between January and March represented a decline of 4,000 when compared with the 144,000 in work in the last three months of 2013. Still, the stigma on Romania immigrants remains in many circles.
According to the Soros Foundation, Romania has about 350,000 children who are left without parents. The Romania Authority for Child Protection’s figure is much lower, stating that at least 82,000 children have at least one parent that has gone to work abroad. There have been reports of children as young as 12 killing themselves after their parents left. Some of these children also suffer from mental illnesses such as depression and often have trouble in school. Many drop out of school. Additionally, some may turn to crime and drugs to cope with their issues. Recently, new laws have been passed in Romania which will place fines up to 2,500 Euros for parents who do not leave children with appropriate guardians.
According to VICE, in the last five years, around 14,000 medics have left Romania. And it's a trend that shows no sign of stopping; the patience of resident doctors was tested to its limit in February 2014, when Prime Minister Victor Ponta promised them an extra monthly allowance of €150 on top of their salaries, only to hold off giving it to them (not that it would have been of much use anyway, given how low their salaries were in the first place). The crappy situation for doctors also leads to corruption, with bosses sometimes soliciting bribes from those who want to work in their hospitals. [2]
Shortly after the 1989 so-called “revolution,” Ryszard Kapuściński said that the people abolished the dictator, not so that they could turn to the building of democracy, but so that they could open up the borders and leave. According to the latest census that was taken in 2011, Romania lost 2.68 million inhabitants in the last 10 years. The greatest loss of population in all of Romania was in Galati, which dropped 22.56% – from 298,589 in 2002 to 231,204 in 2011. It is now the 5th largest city in the country.
Romanians abroad are expected to send about USD 3.6 billion to their home country in 2013, making it the third largest volume of remittances to a developing country in the region (behind Poland and Russia), according to a recent World Bank report. The amount sent to Romania in 2013 is expected to be almost flat on 2012, and smaller than in 2011, when it reached USD 4.5 billion, as well as from 2010, when it stood at USD 4.9 billion.
Over the past year, there was much negative press in the UK as they removed travel restrictions on Romanians and Bulgarians. Although they expected to be overwhelmed by the flood of Romanian and Bulgarian immigrants, the total of 140,000 citizens from Romania and Bulgaria employed in Britain between January and March represented a decline of 4,000 when compared with the 144,000 in work in the last three months of 2013. Still, the stigma on Romania immigrants remains in many circles.
According to the Soros Foundation, Romania has about 350,000 children who are left without parents. The Romania Authority for Child Protection’s figure is much lower, stating that at least 82,000 children have at least one parent that has gone to work abroad. There have been reports of children as young as 12 killing themselves after their parents left. Some of these children also suffer from mental illnesses such as depression and often have trouble in school. Many drop out of school. Additionally, some may turn to crime and drugs to cope with their issues. Recently, new laws have been passed in Romania which will place fines up to 2,500 Euros for parents who do not leave children with appropriate guardians.
Broken health care system
Romanian doctors are so poorly paid that many of them have to take money from their parents to live, and Romanian hospitals are so broke that they ask patients to buy medical supplies. A person told VICE:
"Last summer, my dad was in the hospital while he was being treated for pancreatic cancer. Because this is Romania, that meant that a doctor gave me a list of supplies I would need to buy for him: drugs, syringes, IV equipment, cannulas, catheters, bandages, and plasters. All this stuff cost me between $140 to $280, and in a country where the annual per-capita GDP is hovering around $13,000, that's a lot of money. Many families in that situation would have to choose between buying medical care for a loved one or feeding themselves." [2]
Another issue is the high level of out-of-pocket spending. Due to the bribing that is "traditionally" practiced ever since the communist era, a sizable amount of patients have reported that they had to bribe the doctors and nurses in order to receive good treatment. [4]
"Last summer, my dad was in the hospital while he was being treated for pancreatic cancer. Because this is Romania, that meant that a doctor gave me a list of supplies I would need to buy for him: drugs, syringes, IV equipment, cannulas, catheters, bandages, and plasters. All this stuff cost me between $140 to $280, and in a country where the annual per-capita GDP is hovering around $13,000, that's a lot of money. Many families in that situation would have to choose between buying medical care for a loved one or feeding themselves." [2]
Another issue is the high level of out-of-pocket spending. Due to the bribing that is "traditionally" practiced ever since the communist era, a sizable amount of patients have reported that they had to bribe the doctors and nurses in order to receive good treatment. [4]
Children in poverty
In the 1990s, Romania had over 6.6 million children. Today, due to a lower birth rate, there are 3.7 million children. As the birth rate falls, the life expectancy has increased, resulting in there being 1 child to every 2 adults in the 1990s to 1 child for every 4 adults today.
Over half of Romanian children are at risk of poverty and/or social exclusion, and one third lives in persistent poverty.The rate is highest in families with many children or with a single parent. About one in 10 children live in homes with no working adult. The rate of material deprivation is 3 times higher than the EU.
Poverty exists even where parents are working. One in three children live in poverty even where parents are working. One in every five families that have working adults still lives in poverty, and this rate is rising.
About 12% of rural households have no income other than the state subsidy for children. 10% of these children go to bed hungry and 12% are missing school so that they can work. [7]
Over half of Romanian children are at risk of poverty and/or social exclusion, and one third lives in persistent poverty.The rate is highest in families with many children or with a single parent. About one in 10 children live in homes with no working adult. The rate of material deprivation is 3 times higher than the EU.
Poverty exists even where parents are working. One in three children live in poverty even where parents are working. One in every five families that have working adults still lives in poverty, and this rate is rising.
About 12% of rural households have no income other than the state subsidy for children. 10% of these children go to bed hungry and 12% are missing school so that they can work. [7]
Sex workers & child trafficking
Girls and boys left without their parents are extremely vulnerable to being trafficked. Romania is a source, transit, and destination country for men, women, and children subjected to forced labor and women and children subjected to sex trafficking. Romania has become a major transit for the sale of people into the European Union. Victims as young as 12 years old are trafficked into Romania from destinations as far-reaching as Honduras, Afghanistan, the Congo, and China. Once they reach Romania, many of these victims are assigned for passage beyond into Western Europe. While Romanian law officially prohibits all forms of human trafficking, the country’s strategic geographic location — a crossroads between East and West — makes it a source, transit and destination country for the people trade. The country’s 2007 admission into the European Union brought more relaxed border regulations and enhanced its attraction for international human traffickers.
According to the US State Department, Romanians represent a significant source of trafficking victims in Europe. Romanian men, women, and children are subjected to forced labor in agriculture, domestic service, hotels, and manufacturing, as well as forced begging and theft in European countries. Children likely represent at least one-third of Romanian trafficking victims. Traffickers recruiting and exploiting Romanian citizens were overwhelmingly Romanian themselves. Frequently, traffickers first exploited victims within Romania before transporting them abroad for forced prostitution or labor. The Romanian government reported increasing sophistication amongst Romanian criminal groups, including the transportation of victims to different countries in Europe in order to test law enforcement weaknesses in each. The Government of Romania does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so. The government reported the identification of 1,043 victims in 2011.The government made strong prosecution efforts during the reporting period: the number of anti-trafficking prosecutions pursued was amongst the highest in Europe (480 prosecutions with 276 convicted in 2011), and built on partnerships with governments in destination countries to increase accountability for trafficking offenders. The government also conducted creative anti-trafficking prevention efforts to sensitize the population to trafficking in persons. Nevertheless, services available to protect and assist trafficking victims were very weak. For a third consecutive year, the government provided no funding to anti-trafficking NGOs, imperiling civil society’s victim protection.
There are high numbers of Romanians caught in the commercial sex. Although the government proposed legislation to legalize prostitution, it was not passed. Still, sex is sold on street corners, truck stops and the many erotic message parlors throughout the country.
According to the US State Department, Romanians represent a significant source of trafficking victims in Europe. Romanian men, women, and children are subjected to forced labor in agriculture, domestic service, hotels, and manufacturing, as well as forced begging and theft in European countries. Children likely represent at least one-third of Romanian trafficking victims. Traffickers recruiting and exploiting Romanian citizens were overwhelmingly Romanian themselves. Frequently, traffickers first exploited victims within Romania before transporting them abroad for forced prostitution or labor. The Romanian government reported increasing sophistication amongst Romanian criminal groups, including the transportation of victims to different countries in Europe in order to test law enforcement weaknesses in each. The Government of Romania does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so. The government reported the identification of 1,043 victims in 2011.The government made strong prosecution efforts during the reporting period: the number of anti-trafficking prosecutions pursued was amongst the highest in Europe (480 prosecutions with 276 convicted in 2011), and built on partnerships with governments in destination countries to increase accountability for trafficking offenders. The government also conducted creative anti-trafficking prevention efforts to sensitize the population to trafficking in persons. Nevertheless, services available to protect and assist trafficking victims were very weak. For a third consecutive year, the government provided no funding to anti-trafficking NGOs, imperiling civil society’s victim protection.
There are high numbers of Romanians caught in the commercial sex. Although the government proposed legislation to legalize prostitution, it was not passed. Still, sex is sold on street corners, truck stops and the many erotic message parlors throughout the country.
Organ trafficking
Organ trafficking has been a thriving trade in Romania for several years. The deal starts from an ad on the Internet or from smugglers - intermediaries, who approach, even on the halls of the hospital, desperate potential customers, who need to buy a kidney or a piece of liver. Selling ones kidney in Romania brings between 10.000 and 15.000 euro, according to sources. [5]
These organ harvesting operations include the removal of kidneys, lungs, pieces of the liver, corneas, bones, tendons, heart valves, skin and any other salable human part. These organs are kept in cold storage, such as ice boxes, after removal until they are ready to be air lifted to illegal distribution centers in rich industrialized countries such as the U.S., Germany, the U.K., Israel, and South Africa.
These organ harvesting operations include the removal of kidneys, lungs, pieces of the liver, corneas, bones, tendons, heart valves, skin and any other salable human part. These organs are kept in cold storage, such as ice boxes, after removal until they are ready to be air lifted to illegal distribution centers in rich industrialized countries such as the U.S., Germany, the U.K., Israel, and South Africa.
List of References
1) http://www.johnfeffer.com/romanias-fraying-social-safety-net/
2) http://www.vice.com/read/why-are-romanian-doctors-leaving-the-country
3) http://www.nasul.tv/2014/10/05/exploziv-licitatie-ilegala-cu-fonduri-europene-pentru-mita-electorala-mascata-in-66-milioane-pachete-cu-18-kg-de-alimente/
4) http://stirileprotv.ro/exclusiv/revista-presei/spagile-in-spitale-traditie-la-romani-catalog-2011.html
5) http://adevarul.ro/news/societate/exclusiv-la-fundeni--vand-organe-piata-foto-video-1_50ac9e9a7c42d5a66386f6e2/index.html
6) http://davidchronic.com/2014/06/09/the-situation-in-romania-2014/
7) http://davidchronic.com/2014/06/09/the-situation-in-romania-2014/
1) http://www.johnfeffer.com/romanias-fraying-social-safety-net/
2) http://www.vice.com/read/why-are-romanian-doctors-leaving-the-country
3) http://www.nasul.tv/2014/10/05/exploziv-licitatie-ilegala-cu-fonduri-europene-pentru-mita-electorala-mascata-in-66-milioane-pachete-cu-18-kg-de-alimente/
4) http://stirileprotv.ro/exclusiv/revista-presei/spagile-in-spitale-traditie-la-romani-catalog-2011.html
5) http://adevarul.ro/news/societate/exclusiv-la-fundeni--vand-organe-piata-foto-video-1_50ac9e9a7c42d5a66386f6e2/index.html
6) http://davidchronic.com/2014/06/09/the-situation-in-romania-2014/
7) http://davidchronic.com/2014/06/09/the-situation-in-romania-2014/