2023-07-06 13:34:31
Romania’s national wealth was around 637 billion euros, increasing 2.6 times in the last 20 years, according to the BNR Stability Report. The wealth of the population was 247 billion euros, that is, almost 40% of the wealth of the entire country.
Cata have are RomaniaPhoto: – / PhotoAlto / Profimedia
According to the document, it is admitted that the Gross Domestic Product (GDP) indicator is a “useful, standardized, understood and applied unitary indicator, comparable over time and between countries, but insufficient to capture the development potential of a country”.
The comprehensive measurement of national wealth complements the information provided by GDP and provides a broader picture of a country’s economic and social trends, the Report said.
According to World Bank analyses, human capital is the most important component of national wealth, being an essential engine of sustainable economic growth and poverty reduction, the authors also note.
It represents, on average, regarding two-thirds of total wealth globally. In the case of Romania, the estimates of the World Bank indicate a proportion of regarding 63 percent of human wealth in the total national wealth.
However, the provisional data of the 2021 Population and Housing Census show that the vulnerabilities to the human capital in Romania have increased, the resident population continuing its downward trend, the demographic aging phenomenon deepening and the demographic aging index depreciating , while the level of education of the population ranks Romania last at the European level.
In addition to human capital, there is a growing importance of climate change in relation to national wealth
In addition to human capital, there is a growing importance of climate change in relation to national wealth, these determining both potential opportunities to increase national wealth with relatively modest investments, as well as significant risks determined by the increase in the intensity and frequency of external shocks on the development of wealth .
The analysis of the national wealth per inhabitant highlights a relatively low level and a strong polarization in Romania, fueling the distrust of the population in public institutions and social tensions.
The national wealth per inhabitant registered a level of 32.7 thousand euros in Romania in 2019, an increase of 2.9 times, respectively by 21.4 thousand euros, compared to 2003 (Chart A), being below the EU27 average (3.1 times higher) and placing only before Bulgaria (28.3 thousand euros per inhabitant) and Greece (21.2 thousand euros per inhabitant).
Thus, the need for actions such as:
Supplementing economic growth measures with those aimed at consolidating national wealth. The study considers industrial, demographic and population education improvement policies important, as they have a favorable impact on the components of wealth. In this sense, the National Bank of Romania is considering starting some financial education projects also in the sphere of non-financial companies, as well as increasing the degree of professional training of bank employees. Intensification of the contribution of the academic environment in studying the less examined components of Romania’s national wealth, such as human and social capital. Last but not least, the analysis considers essential the inclusion of land and natural resources in the national wealth and the unitary quantification of the human capital component. The importance of this action becomes all the higher in the context of recent demographic developments, as well as the widening of innovation gaps at the global level.
According to European legislation, national wealth is defined as “the accounting situation of the value of economically owned assets and unpaid liabilities of an institutional unit or a group of units”. National wealth is traditionally composed of non-financial and financial assets. Non-financial assets include fixed assets, inventories, inventory items and non-production assets such as natural resources, while the financial asset category is comprised of monetary gold and SDR, cash and deposits, debt securities , loans, participations and units of investment funds, insurance systems, pensions and guarantee schemes, financial derivatives, as well as other accounts receivable/payable.
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