Comenius Project "Europe in our school" 2012 -2014
Let's learn about... April 2014 - n째 5
ECONOMY Italy Poland Spain Turkey Finland Romania Estonia
ITALY
THE ITALIAN ECONOMY FROM THE PERIOD AFTER THE WAR TILL TODAY From the second World War on, Italy has had great economic changes. After the war, Italy was an underdeveloped coun-
try. Because of he war, social and economic conditions of the majority of the
population got worse. In 1951, 42% of the population worked in agricolture and the income for each person was only markable industrial development in the Northern and Central area of Italy. Thanks to that, a quick process of economic upturn 36% of that in began. So, many the U.S.A. people from Between the Southern Italy 1950s and 1970s emigrated to rethere was a re- gions like Piedmont, Lombardy, Veneto and Emilia Romagna. Thousands of people from underdevel-
1990 –2014 Data
oped regions like Sicily, Campania, Puglia and Basilicata moved to the North of the country. They found work in factories and they improved their life conditions. These years are very important for the deep transformation of the Italian urban, economic and social fabric.
1970—1990
THE ITALIAN ECONOMY
Our area was involved in the great progression in the 1970s too. The most important Italian factories of household products (saucepands, pots, coffee makers, tablewear) were born in Gravellona Toce and Omegna. Brands like Alessi, Bialetti, and Lagostina became important outside Italy and have given Italy great consideration in the whole world.
During the 1980s and 1990s there was a great development of the service sector expecially banking, insurances, commercial, financial and communication services. During these years the economic boom was at its best: Italy was one the most important economic power in the world.
Pagina 3
1990 –2014
So thousands of immigrans from Africa, Asia and Eastern Europe reached our country. They were looking for work and they hoped to better their life conditions.
From the 1st January 2002 Euro coin was introduced in Italy.
However, at the end of the millenium, the economic growth in Italy stopped and a 10 year period of economic stagnation has
started. In the recent five years, Italy has been involved in the world economic crisis and it is now in the recession phase.
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TYPICAL NORTH PRODUCT In the northern Italy we have got a lot of dairy products, fruit and vegetables delicious are in Trentino-Alto Adige, where the variety of cheese is really extensive.
FOR EXEMPLE: ZIGER: table cheese with creamy spread on rye bread. BRESAOLA , HERBS ( SAGE , MINT LAUREL ) SCIMUDIN: goat cheese of Valtellina, round shape with white crust, soft and creamy . SPEK : cured meat of Trentino-Alto Adige, legs of pork with juniper and herbs. VEZZEMA : usually used in place of parmesan cheese.
We produce oil too: Trentino Garda oil and Eastern Garda oil ( both in Trentino -Alto Adige) Italy also produces many fine wines : sparkling, barricaded, spicy, sweet or liqueur . Wines: Barbera, Bardo, Dolcetto d' Alba (Piedmont) Boturnio (Lombardy ) Garnet Cabernetta, classic Valpolicella and Amarone (Veneto) Our typical vegetables are: corn, barley, sugar beet, rice, soybeans, wheat turkish, wheat, rye, grapes, oats , cabbage, olives, onions, garlic, beans, tomatoes, artichokes, mushrooms and potatoes. Fruit: apples, peaches , pears , plums , cherries, fruits of the forest, walnuts , hazelnuts, chestnuts , apricots, and in the area of Liguria you can find oranges, lemons, tangerines, melons and watermelons . Fishing is popular in Friuli-Venezia-Giulia and Liguria.
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CLASSE: IIIC I:C GALILEO GALILEI
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PASTA IN CENTRAL ITALY Pasta is one of the most consumed products in Italy but there is one in particular that is produced in the region of Lazio: “tagliatelle”
FOR EXEMPLE:
The tagliatelle or fettuccine are a typical pasta of the central Italy. A variant of the “tagliatelle” are green tagliatelle, with chard or spinach, they are particularly tasty and delicate. Another important kind of pasta is “Spaghetti alla chitarra”. The “spaghetti alla chitarra”, also called “tonnarelli” or “maccheroni alla chitarra” in Abruzzo, are a variety of pasta typical of Italian cuisine.
In Abruzzo “maccheroni alla chitarra” are generally prepared with meat sauce (a mimixture of beef, pork and lamb) . Another very popular kind of pasta is the delicious “pasta carbonara” The pasta carbonara is a typical course of Latium and more particularly of Rome, it's prepared with popular ingredients and it has got an intense flavor . Spaghetti are traditionally used. Its typical ingredients are: bacon, eggs, pecorino cheese, little bit of salt and pepper, if you want you can add a bit of extra virgin olive oil.
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CLASSE: IIIC I:C GALILEO GALILEI
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TYPICAL CHEESE OF CENTRAL ITALY WE HAVE MANY TYPICAL OF CHEESE
FOR EXEMPLE:
Tuscan cheese, cheese from umbria,cheese from the marches,cheese from the abruzzi,cheese from molise,roman cheese.
Tuscan cheese:In the area of Grosseto is widespread Caciotta Cheese from Umbria:Among the cheese from Umbria we must men-
tion the Pecorino of Norcia. Cheese from the Marches:A particularly tasty cheese made from cow's milk is the Raviggiolo, widespread in the area of Montefeltro. The “Caciotta” is produced in the provinces of Urbino and Pesaro. Cheese from the Abruzzi:The “Formaggella of Sannio” is a very popular cheese from the Abruzzi. Cheese from Molise:Typical of Molise is sheep and buffalo milk cheese. . The “Burrino” and the “Fiordilatte” are the most popular. Roman cheese:The “Pecorino Romano” (sheep cheese) is the most typical and popular cheese in the region of Lazio.
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CLASSE: IIIC I:C GALILEO GALILEI
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WINE AND OIL OF SUD In Southern Italy wine and oil are typical products
FOR EXEMPLE:
In Southern Italy wines and oil s produced in a lot of areas
WINE In Southern Italy wine is produced in a lot of areas, other areas produce more wine than oil, as most of the oil is produced in Liguria. Wine is an alcoholic beverage produced solely by fermentation (total or partial) of the fruit of the vine and grape . In Italy (and throughout the European Community), because of historical reasons, because of the protection of a higher quality product and also because of the cost and value, you can not define commercially as "wine" the product of the fermentation of grapes from different Vitis vinifera . Hence the term, in case of commercialization of different fermentation, must be omitted . Common system to remedy this prohibition is, for example, to mention just the name of the grape variety used, of course without mentioning the word "wine " . With this drink you can also give life to a noble distillate, if aged for at least 12 months in oak, it takes the name of brandy. OIL The vegetable oil generally comes from the pressing of oilseeds (sunflower, peanut, flax, olive oil, palm oil) or from olives or from other parts of plants that contain them. Liguria is the world's largest producer of oil. There are many types of oil including: Extra virgin olive oil Virgin olive oil Grade olive oil Refined olive oil Olive oil composed of refined olive oil and virgin olive oil Olive-pomace oil ( Olive-pomace oil is olive oil that is extracted from olive pulp after the first press) Refined olive-pomace oil . Indirizzo ufficio 1 Indirizzo 2 Indirizzo 3 Indirizzo 4
CLASSE: IIIC I:C GALILEO GALILEI
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Ic.Galileo Galilei
INDUSTRY Texile industry The texile activity was created in Milan, in the half of the XII century with the wool manufactory. During the Renaissance, Florence was the main centre. The textile industry was especially developed in the North of Italy and in Prato,
in Tuscany. In the last years, China and India became terrible competitors for the Italian textile industry,
China is an only trader of silk worms and it has the monopoly of the lavoration of silk.
ILVA Ilva is a very important Italian company firm of iron an steel. In Taranto there is
a very important industrial park for the manifacturing in Europe. Many
machineries were closed for pollution.
Cinecittà ‘’Cinecittà’’ is in Rome. There are 22 studios. It’s the most important industry in Italy but it’s used even for foreign productions.In 1937 famous film directors worked here: for example Fellini and Scorsese. The home of reality show ‘’Grande Fratello’’ was in Cinecittà from 2000 and it was destroyed by the fire in the night between 13th and 14th December 2013.
FOOD ECONOMY This sector is slightly reduced through the 2011 and 2012 and felt the effect of the economical crysis regarding the industrial sectors. The food and the agriculture are the PAGE 2
second industrial sector of Italy, and reacted well to the crisis. The “Made in Italy” in the world is always popular especialy in the new markets
like South America, China, India and Thailand.
Saras Saras society was founded in 1962 by Angelo Moratti, the managers are now his sons. The refinement of the petrolium is the most important site in
Sarroch group. The capacity is 300.000 barels a day. At the begining Saras group produced electric energy but then they produce different en-
ergy sources especially in the sector of wind power.
Gold work Valenza is the undisputed capital of marvellous jeweler’s crafts. It produces gold jewels from more than seventy years. They are sold not only in Italy but all over the world. The city of Vicenza near Venice is
important too in this sector. Exportation are more than a third of the world total in Italy. In Florence, prestigious and traditional gold
works like engravings make the jewels original and elegant, especially rings, bracelets, pendants, earrings and brooches.
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The Gianduiotto The Gianduiotto is a piece of chocolate with the shape of a boat over head kick composed of chocolate gianduia and prduced in Torin. It’sWrapped in
gold or silver paper. It’s made of cocoa, sugar and nuts. The first society was “Cafferel” and was presented to theopublic by mr Gianduia in 1865 ( came to take
Furniture industry The industry of furniture is the second one regarding the “Made in Italy.”After the fashion industry
small and medium firms are involved. Countries like China and Poland aare great competitors. The difficult
economic situation has created a deep transformation : only the best enterpreses business survive.
The ceramic of Faenza Faenza is well known in the wordl as a synonim of ceramic.In fact,in English “faience” means majolica. Five centuries PAGE 4
ago the manufactury from Faenza were very important for the european.A lot of city shops the ceramic is produced in different
shapes and decor.Here thecraft mans create experimentations majolic for plates,vases and albarelli.
Nutella Nutella is very important for the “made in Italy” regarding feeding. The soft cocoa cream created by the candymarket Pietro Ferrero in 1946 and put on themarket in 1963. It represents a unique example .in our country every year people eat 10000 kilos of nutella, that is
60 thousand jars. The Piemont craftsman make bread cute into slices, they were called “Gianduiotto”, due to the hot penod the bread of Gianduiotto melted and became creamy. So the shopkeepers started selling this as a snack. From that moment the Ferrero al-
tered the formula and made it soft and ready tospread. In 1962 the Ferrero created “Nutella”, the name comes from the English “Nut” with sugar and cocoa.
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Murano glass There is a peculiar working of glass of the Island of Murano,near Venice. It was born in the VIII century with Asiat ic and Arabicinfluence .Venice was a very important commercial Harbour. The process of glass work is
complicate. The glass made of silica become liquid with high temperatures. Before solidification the material is soft and working it. There are several techniques. Murano glass working starts with the stratification
of liquid coloured glass. It is used in long bars. When they cool down they are cut diagonally. Glass handcraftsmen could not go away from Venice to avoid the diffusion of this art abroad.
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ITALIAN EXPORTS Italy exports iron, cast iron, steel because they are used in various applications and features. Iron is a metal of shiny colour, it has a density of 7,86 kg/dm3 and it is used for frying pans, stoves and pots. Cast iron is a metal. It is produced in the blast furnale at full cycle and it is used for stoves, pots and pans. Steel is a metal. It is produced in steel factories. It is used for beams, profiles and sheets.
IMPORTS
EXPORTS
Germany: 17 %
Germany 13 %
France 8,9 %
France 11 %
Netherland 5,6 %
Switzerland 5 %
Switzerland 3,5 %
Austria 2,5 %
Austria 2,6 %
Netherland 2,3 %
Spain 4,7 %
Poland 2,5 %
Russia 4,1 %
Russia 2,4 %
U.K.3,5 %
U.K. 5,6 %
U.S.A 3,0 %
Spain 5,7 %
Libya 3,2 %
U.S.A. 6,9 % Turkey 2,5 % Canada 1,0 % Brasil 1,2 % IMPORT & EXPORT IN ITALY
EXPORTING: Agricultural vehicles: New Holland, Same, Lamborghini, Landini, Laverd Truck: Iveco Cars: Gruppo Fiat, Ferrari, Lamborghini IMPORTED: Agricultural Vehicles: John Deere, Case, Fendt, Kubota, Class Truck: Scania, Merceds, Man, Volvo Cars: Mercedes, Volvo, Pugeout, Citroen, Yundai, Porsche
TURISM IN ITALY EDITING Editing is very important for the Italian economy. Editing is a particular activity consisting of choosing and selecting writings that can be published as books, magazines and cd roms or e.books. The times to publish a book are: selection of the originals, preparing the first edition to be pressed, graphic project, press. The history of editing started when Gutenberg invented the press in the XV century, but the real father of editing is Aldo Manuzio. In the HOTELS same century he We live in a particularly touris- started the modtic place. For these reason we ern editing in mention some of the best which editor is a known hotels with informations kind of manabout it. ager. In 1500 in Italy there are still Villa Crespi is on Orta lake and several editing managers such as Zopit works the most from July to pino and Marcolini who worked in September. Venice as well. It has 14 rooms and it was But the very first modern editing manopened in 1879 by Crespi fam- agers in Europe can be really found at ily. the end of the 19th century. Food is really good and so is the Editing is a sort of creative job which building. goes from c Adelphi, BigPiccolo Lago is on Mergozzo nami,Bompiani,Comix,De lake. It’s also on Michelin guide agostini,Einaudi,Fandango,Fazi,Feltri with 2 stars. nelli,Flaccovio,Garzanti,Giunti, Food is supreme and location Mondadori,Nord,Piemme: wonderful. ,Rizzoli,San Paolo,Zanichelli. We also have lots of other hohoosing the written tests till the final tels such as Cicin and Dino very productions: books and multimedial products. Editing is a sort of industry in which many people work to allow quality of production. In little magazines publishers have got many tasks, in big ones there are really lots of people working to realize the production. In Italy there are a lot of publishers such as Adelphi, Bignami,Bompiani,Comix,De agostini,Einaudi,Fandango,Fazi,Feltri
SKIING RESORTS In Italy there are a lot of important places in the mountain where you can ski.They are either in the Alps and the Appennini.Not very far from our school there is the Vigezzo
TOURISM at the THE SEASIDE Italy is a country with about 7500 km coasts. We’ve got very nice landascapes Religious tourism makes people along the Italian coasts. The moving to go and visit churches, Mediterranean sea is quite clean monasteries and holy buildings. and blue with lots of fish and the Lots of people move every year to ecosystem is rich. go and visit these places even There are lots of famous places though they don’t believe so much along the coasts, such as Portobut they are just interested to obfino and Portovenere and Cinque serve and admire this social pheTerre, in Liguria in the North of nomenon. the country. In the North East we In Italy we’ve got two important can find Lignano Sabbiadoro and religious routes: the Francigena Jesolo, on the Adriatic sea. Then, route that connects central Europe some kilometers belowthere is the to Rome. Lots of pilgrims used to famous Riviera Romagnola, cross Europe to arrive in Rome or to which is important not only for continue for Brindisi to go to Holy the seaside but for the cities such Land. as Ravenna and Rimini. The other religious route is the Then, in the western part of Italy, Abati one: it links the little town of along the Tirreno sea there are the Bobbio to Parma. Lots of Irish and famous beaches of Toscana with French pilgrims used to pass the great islands of Pianosa, Monthrough this road to visit the St. Co- tecristo, Capraia, Gorgona, Gianlombano ‘s tomb. nutri. Other important and wonderful landscapes are Riviera del Conero, then the other islands in front of Naples such as Capri, Ischia, Procida, Vivara, Nisida and, not so far away, the famous beaches of Gaeta, Sperlonga, San Felice Circeo, Sabaudia. In the South of Italy we can visit the wonderful beaches of Puglia and Calabria, with Otranto, Santa Maria di Leuca and Tropea. Then there are the two very big islands of Sicily with lots of famous places like San Vito Lo Capo, the Eolie, Egadi and Pelagie islands and the Smeralda coast and Maddalena islands in Sardinia.
RELIGIOUS TOURISM
NATURISM This form of tourism is quite modern. In 1800 men started to think about a world with no pollution, non noise and nothing that struggled with nature. Nowadays this kind of tourism is also called ecotourism. There places in which you can go and live with nature as if human beings haven’t arrived jet. You can admire landscapes and walk through forests or fields togheter with its real inhabitants: birds and animal in general. There also places in which you can have a rest but they don’t damage at all the nature. These places are really protected by the law. Some of the most famous are: Gran Paradiso, Val Grande and Gran Sasso.
POLAND
The Economy of Poland
The Economy of Poland is a very high income economy and is the sixth largest in the EU and one of the fastest growing economies in Europe with a yearly growth rate of over 3.0% before the late2000s recession It is the only member country of the European Union to have avoided a decline in GDP, meaning that in 2009 Poland has created the most GDP growth in the EU. As to December 2009 the Polish economy had not entered recession nor contracted. According to the Central Statistical Office of Poland, in 2010 the Polish economic growth rate was 3.9%, which was one of the best results in Europe. The Polish state has steadfastly pursued a policy of economic liberalization throughout the 1990s with positive results for economic growth but negative results for some sectors of the population. The privatization of small and medium state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, which has been the main drive for Poland's economic growth. The agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and a lack of investment. Restructuring and privatization of "sensitive sectors" (e.g. coal) has also been slow but recent foreign investments in energy and steel have begun to turn the tide. Recent reforms in health care, education, the pension system and state administration have resulted in larger than expected
fiscal pressures. Improving this account deficit and tightening monetary police with focus on inflation are priorities for the Polish government. Further progress in public finance depends mainly on the reduction of public sector employment and an overhaul of the tax code to incorporate farmers, who currently pay significantly lower taxes than other people with similar income levels. Despite some continued systemic problems, Poland has made great economic progress over the last decade and now is ranked 20th worldwide in terms of GDP. The largest component of its economy is the service sector.
Industry
Before World War II Poland's industrial base was concentrated in the coal, textile, chemical, machinery, iron and steel sectors. Today it extends to fertilizers, petrochemicals, machine tools, electrical machinery, electronics, car manufacture and shipbuilding. Poland's industrial base suffered greatly during
World War II and many resources were directed toward reconstruction. The socialist economic system imposed in the late 1940s created large and unwieldy economic structures operated under a tight central command. In part, because of this systemic rigidity, the economy performed poorly even in comparison with other economies in Central Europe. In 1990, the Mazowiecki government began a comprehensive reform programme to replace the centralized command economy with a market-oriented system. While the results overall have been impressive, many large state-owned industrial enterprises, particularly the rail, mining, steel, and defense sectors, have remained resistant to change and the downsizing required to survive in a market-based economy. There are 22 industrial districts in Poland , among them a lot of centers and industrial works are on a very urban areas. They are: Górnośląski,
Rybnicki,
Krakowski,
Bielski,
Opolski,
Częstochowski,
Piotrkowsko- Bełchatowski, Warszawski, Łódzki, Staropolski, Lubelski, Tarnobrzeski, Rzeszowski, Karpacki, Kalisko-Ostrowski, Wrocławski, Legnicko - Głogowski, Sudecki, Poznański, Bydgosko-Toruński, Szczeciński i Gdański. The
biggest
Górnośląski
of
them
Industrial
is
a
District
(GID). This is a typical district of raw materials which are located in a basin of coal. Heavy industry is a dominating one here ( coal and iron mining – Dąbrowa Górnicza, Gliwice, Ruda Śląska),
power
engineering (Jaworzno,
Łaziska
Górne),
industry
machine
(Sosnowiec, Katowice, Mikołów).
A very fast developing of heavy industry led to a large devastation of each element of natural environment .In these districts there is the biggest concentration of population. A certain barrier in developing of these districts is a lack of highly qualified employees. The second of the biggest is Warsaw. The main feature of this district is an urban one. Dominating department of this industry is a machine building (motorcars, electronics). A very well developed is also a chemical industry(pharmaceutical, chemistry household, cosmetics and clothing). Employees are qualified very well here.
Agriculture
Agriculture
employs
12.7% of the work force but contributes 3.8% to the gross domestic
product
reflecting productivity. industrial
(GDP),
relatively
low
Unlike
the
sector,
Poland's
agricultural sector remained largely in private hands during the decades of communist rule. Most of the former state farms are now leased to farmer tenants. Lack of credit is hampering efforts to sell former state farmland. Currently Poland's 2 million private farms occupy 90% of all farmland and account for roughly the same percentage of total agricultural production. Farms are small—8 hectares on average—and often fragmented. Farms with an area
exceeding 15 ha accounted for 9% of the total number of farms but cover 45% of total agricultural area. Over half of all farm households in Poland produce only for their own needs with little, if any, commercial sales. Poland
is
a net
exporter of processed fruit
and
meat,
vegetables,
and
products.
dairy
Processors
often rely on imports to supplement
domestic
supplies of wheat, feed grains, and
vegetable protein
which
are
oil
meals, generally
insufficient
to
domestic
meet demand.
However Poland is the leading EU producer of potatoes and rye and is one
of
largest sugar
the
world's
producers beets
of and
triticale. Poland also is a significant producer of
rapeseed,
hogs, Average cereals.
and
grains, cattle.
yields
of
Transport
Today transport in Poland is provided by means of rails, roads, shipping and air travelling. Positioned in the East-Central Europe and with the eastern and part of northeastern border, compromising the longest land border of the Schengen Area with the rest of Northern and Central Europe, Poland has been long and remains a key country through which imports and exports pass to the European Union. Since joining the EU in May 2004, Poland has invested large amounts of money into the modernization of its transport networks. The country now has a developing expressways network composed of motorways such as the A1, A2, A4, A18 and express roads such as the S1, S3, S5, S7, S8. In addition to these newly built roads, many local and regional roads are being rebuilt as part of a national programme to rebuild all roads in Poland. LOT was the first European airline to introduce the Boeing 787 Dreamliner
The A4 Motorway near Krak贸w Again with regard to railways, much the same situation is taking place. The Polish authorities have begun a program by which they hope to increase operating speeds across the entire Polish rail network. Polish State Railways (PKP) are using new rolling stock, ten new machines Siemens Taurus ES64U4
capable of speed equal 200 km/h (124 mph). Finally, there is a plan to introduce high speed rail to Poland from around December 2014.
The
Polish government has revealed that it intends
to
connect all major cities to a future high-speed
rail
network by 2020. PKP
Pendolino
ETR 610 new test train set the record
for the fastest train in the history of Poland, reaching 293 km/h on 24th November 2013. The government's plan is to start passengers transport with permanent speed of 200 km/h from Warsaw to Krak贸w in December 2014. Old top speed has been 160 km/h since 1985. Most intercity rail operations in Poland are operated by PKP Intercity whilst regional trains are run by a number of operators the largest of which is Przewozy Regionalne. The air and maritime transport markets in Poland are largely well developed. Poland has a number of international airports: the largest of which is Warsaw Chopin Airport, the primary global hub for LOT Polish Airlines.
LOT
is
28th
largest
European airline and one of the world's 12th oldest still in operation established in 1929, from a merge of Aerolloyd (1922) and Aero (1925). Seaports exist all along Poland's Baltic coast with most freight operations using either Gdynia or Gdańsk as their base. Passenger ferries link Poland with Scandinavia all year round, these services are provided from Gdańsk and Świnoujście by Polferries, Stena Line from Gdynia and Unity Line from the Port of Świnoujście.
Economy of the Lubaczów Commune The Lubaczów Region has its specific and individual character shaped by the natural environment and the rich history of this land. It’s mainly perceived as an agricultural land and the region with recreational and tourist values.Forests occupying over 59 thousand hectares, what makes up 45% of it’s area, are the main economic advantage of the Lubaczów Commune. The forests contribute to the development of timber processing as well as furniture and ecological toy production.
Mineral resources and minerals are very important
abundance
of
the
Lubaczów land. Earth gas and sulphur are among the main ones. Highly calorific earth gas mining is concentrated
within
the
area
of
Lubaczów. Whereas sulphur deposits , over 100 million tones , lay in Basznia Górna nearby Lubaczów at the depth of around 260 m. Due to the specific geological structure, this is a safe deposit without any ecological hazards. The largest enterprises include: conTeyor in Lubaczów, Black Red White in Dachnow,
Construction
Machinery
Factory
in
Lubaczow and Sanatorium in Horyniec Zdrój. Therapeutic sulphidic waters are exploited in Horyniec Zdrój communes for the needs of the operating health resort spas. Therapeutic mud is also used in the health resort. Difficult management,
conditions low
of
profitability
land of
agricultural production as well as growing unemployment in the countryside force farmers to seek new alternative sourcers of income, such as countryside tourism, production of vegetables and fruits and pond fish production.
International business in Poland Polish law is rather favourable to foreign entrepreneurs. The government offers investors various forms of state aid, such as: CIT tax at the level of 19% and investment incentives in 14 Special Economic Zones (among others: income tax exemption, real estate tax exemption, competitive land prices), several industrial and technology parks, the possibility to benefit from the EU structural funds, brownfield and greenfield locations. According to the National Bank of Poland (NBP) the level of FDI inflow into Poland in 2006 amounted to 13,9 billion Euros. According to an Ernst & Young report, Poland ranks 7th in the World in terms of investment attractiveness. However, Ernst & Young's 2010 European attractiveness survey reported that Poland saw a 52% decrease in FDI job creation and a 42% decrease in number of FDI projects since 2008According to the OECD (www.oecd.org) report, in 2004 Poles were one of the hardest working nations in Europe. Yet, the ability to establish and conduct business easily has been cause for economic hardship; the 2010 the World Economic Forum ranked Poland near the bottom of OECD countries in terms of the clarity, efficiency and neutrality of the legal framework used by firms to settle disputes.
SPAIN
SPANISH ECONOMY Comenius Tamujal. We are going to make an economical analysis of the situation of Spain.To this purpose, we want to escape a typical analysis based only on official figures and economy-focused interpretations. We will try to be more society-oriented and a critical valuation, taking into account more values that are near to citizens in general,including valuations which take into account education,health and the real welfare of the population. For this, we will base ourselves in the OCDE report. “Index for a better life”. This does not mean that we will avoid data that reflect the current situation in which the financial and political rulers of Extremadura, Spain and Europe have driven us into,as well as its impact on social rights-now in question- with the logical loss of rights and living standards for the Spanish population. Spanish data (with reference to 2011 or 2012,depending on the statistics considered),turn out a very favourable result as far as the aliance between life and work standards are concerned, in which the mark reaches a 9 out of 10. Here the significant piece of data is that the amount of employees that work more then 50 hours a week is low, whereas the amount of hours dedicated to leisure and personal care (including sleep) is close to 16.
In Spain, the potentially working mass amounts to some 22.900.000 people at the end of 2012, earning an average monthly salary of 1556 €,with a minimum wage of 748,30 € in 2013. Out of this working potential the most worrying piece of information for the Spanish population is that 27,16% is unemployed. That entails that as of March 6.202.700 people are out of work. The following diagram shows the evolution of unemployment rate in the last years.
In terms of employment,around 58% of the Spaniards between the ages of 15 and 64 are employed, a lower figure than the OCDE standard,which is 66%.About 64% of men have a job, as opposed to 53% of women. In Spain people work 1960 hours a year, less than most of the countries in Europe,who work 1776 hours. Just 6% of employees have a very long schedule,a lower figure than the OCDE standard of 9%,and, amongst them, 9% work long hours as opposed to 4% of women. Spanish youngsters face even bigger difficulties;an unemployment rate of 46.4%, the highest in the OCDE and much higher than the average 16.2%. Although money cannot buy happiness, it is an important means to achieve higher living standards.In Spain, the net family available adjusted income is 17484 â‚Ź a year, slightly lower than the average of 17738 â‚Ź. However, the gap between the richer and the poorer is noticeable; the sector of the population on the 20% top income bracket earns six times as much as the 20% lower sector.
The GNP (Gross National Product) of the country, divided into sectors, turns out to be rather unbalanced: Agriculture,cattle, fishing and mining (2,5%).Energy (2,8%).Construction (9,2%).Industry (11,5%).Services (65,6%). The main industries of the country are machinery,automobiles,shipyards,electronics,metal and foundries,chemicals,textile and shoe making and food and drinks. As for R+D+i(Research,development and innovation),despite a generally deficient position, Spain counts on a significant position in specific fields such as renewable energies,biotechnology,pharmaceutical companies,transport and small and medium sized high-tech companies,that must become the fortresses on which our economy will get over the crisis and modify the bases of our economical growth. The only sector that has behaved in a positive way along the year has been exportations,which have seen a slight increase in exportations and a decrease in importations,giving out a positive balance in goods and services for the first time in 15 years. The causes posed as the bad response to this crisis are diverse;several analysts have proposed some possibilities: the excessive weight of the construction sector on the GNP (it is a low productivity-, low tech-,low innovative sector),a historical tendency to make low working costs (immigration,working scarcity,etc...) up for investment in capital,the thin ties between universities and companies and a still insufficient rate of investment in R+D+i-
Spanish communities according to GNP (2010):
Between 31.952€ y 28.001€ Between 28.000€ y 23.875€ (Spanish average 23.874€) Between 23.873€ y 20.001€ Between 20.000€ y 16.714€
Spain is below the European Union average; in the EU the per capita GNP is 25.100€, in Spain it is 23.874€, that means some 1226€ less. According to the nominal GNP per inhabitant, the pole position is for the Basque Country, with 31.228€ per inhab., followed by Navarre ( 30.068€), Madrid ( 29.731€) and Catalonia (27.430€). On the opposite side of the ranking, Extremadura ( 16.149€ per inhab.),Andalusia (17.587€) and the city of Melilla (18.454€),at the bottom of the list. The national average in 2011 was 23.271€ and the 27 countries of the EU 25.134€.
The amount of population under the poverty level in Spain is about 21,1% in the first quarter of 2013. The underground economy in Spain is estimated to amount to about 23% of the GNP, which represents about 240.000 million €.
Possesing a good education is an important condition in order to find a job.In Spain,53% of adults between 25 and 64 years have obtained the equivalent to a GCSE certificate, lower than the OCDE standard of 74%.This is even more visible in the case of women, as 52% of them have succesfully finished their secondary studies,in comparison with a 54% of women.As for the quality of our educationakl system, the average student obtained a qualification of 484 points in literacy,mathematics and science in the PISA report,being the OCDE average 497. In Spain, boys and girls obtained similar marks,in comparison with the average OCDE mark of 9 points for the girls.
As far as health is concerned,the life expentancy reaches 82 years,two more than the OCDE average.This expectancy reaches 85 for women and 79 for men. Spain must carry a robust policy of conciliation of working and family life. It is hard for Spanish families to live and work; both women's employment and birth rates are low in comparison to other countries. At a rate of just 1.4 children per woman, Spain's birth rate has been one of the lowest in the OCDE in the last two decades.
EXTREMADURAN ECONOMY Standard
Period
Data
01/01/2012 01/01/2012 01/01/2012
1.108.130 694.533 413.597
OFFICIAL POPULATION FIGURES Extremadura Badajoz Province Cรกceres Province
HUMAN RESOURCES AND LABOUR MARKET An amount of 18,6% of the Extremaduran population holds a college degree, a figure well below the national standard. Also, a 20% of people with a job in this educational level. We also have the lowest amount of qualified population (GCSE level+college level) nationwide. As well as that, a 35% of population is in working age. Amongst university students the weight of enrollment in engineering is also thin on the ground. Alternatively, the presence of women inscribed in new degrees has visibly been increased. The present crisis has strongly influenced our working market. A visible drawback in enmployment figures may be observed in services and in the sector of population below 35. Also, a 35% of employees work on temporal contracts,a rate that climbs ten points above the national average. Our unemployment rate reaches, as of today, a 32% of the potentially employable within a very inefficient working market, with a vacancy per every 173 unemployed, against a vacancy per every 73 unemployed in the working market in Spain as a whole, which is, in turn, terribly inefficient compared to developed countries (one vacancy per 10 unemployed). Young unemployment is excessive, too, considering that young people are amongst the less qualified and longestlasting unemployed. Every rate in this department climbs above 50%. Male unemployment in May 2013 is 67,151 as it decreased in 1,614 people (2.35%) and female unemployment decreased in 535 people (-0.64%) compared to April.
PRODUCTION IN EXTREMADURA PRIMARY SECTOR Very important in Extremadura, in as much as it represents 7.1% of the GNP of our community. AGRICULTURE The presence of great extensions is typical of Extremaduran agriculture, extensions whose production is usually quite low (most of them are farmed extensively,not intensively) and small properties, which, despite their low resources for mechanization, show great productivity. The main farming varieties are: Dry land farming. based upon the Mediterranian trilogy (cereal, mainly wheat or barley, wine and olive), to which some others are added, such as industrially-oriented plants (sunflower) or fig trees. This type of agriculture is mainly located in plains or mountain sides. Irrigated land farming. These crops are the main raw material for Extremadura´s agricultural industry. Amongst the crops grown, tomatoes, asparagus, peppers, rice, maize, tobacco, beetroot and fruit trees (peaches,nectarines,pears and cherries). The main irrigated farming areas are the valleys of the Guadiana, Alagón-Árrago, Tiétar and Jerte rivers, and the area of Campo Arañuelo. CATTLE The main cattle ranches in Extremadura are found in wide *dehesa areas, characterized by a mixture of agricultural,cattle and tree farming production.The most important types of cattle are: •
Sheep. It is by far the most abundant variety (20.5% of the Spanish cattle figures as a whole).This kind of cattle is dominant in the eastern and central areas of Badajoz (La Serena and La Siberia) and central and southern Cáceres (the plains of Cáceres, Trujillo and Logrosán). Sheep production is esentially
focused
on
meat,
milk and
cheese
(controlled
denominations
«Corderex»,«Queso de La Serena» and «Torta del Casar»). •
Pork. The second most abundant species (amounts to 10.2% of the Spanish total).
Typical of the Extremaduran landscape dehesa,where it feeds on acorns. The controlled denomination is called «Jamón Dehesa de Extremadura». •
Beef. Amounts to 14% of the total of cattle units in Spain. Milk cows are confined to irrigated areas,in intensive explotations,focused on dairy industry. Meat production is developed in the dehesas, where the home species retinta, blanca cacereña and morucha are bred (for the controlled denomination «Extremaduran beef»)
•
Goats. Amouts to 10.2% of the total in Spain, grown in mountain areas (Toledo mountains and Sierra Morena). It is mainly focused on meat production and milk for dairy products, especially cheese («Queso de los Ibores» controlled denomination)
•
Bee-keeping. Wax and honey production is quite significant, mainly around environmentally protected areas. There is, again, a controlled denomination, «Miel de los Ibores".
SECONDARY SECTOR It is the second most important sector as far as hand work and income production is concerned; ie represents a 24% of the regional GNP. MINING AND SOURCES OF ENERGY Rocks for construction and decoration. Both slate, in Villar del Rey,and granite, in Quintana de la Serena, are widely used and exported to several European countries. Industrial minerals and rocks. Both provinces have tin, tungsten and nickel mines. Mineral water. Extracted in western Extremadura,in springs in Alburquerque and Valencia de Alcántara. Extremadura's high energy potential makes it an energy-exporting region. Hydroelectrica production,from power stations in the Guadiana and Tajo rivers, is very high,and so is nuclear power station in Almaraz. Alternative energy sources are less developed; photovoltaic and bio-mass plants are already underway.
INDUSTRY Industry in Extremadura is, generally considered, small sized, although this tendency is changing in the last years. Industrial activity represents 6.4% of our GNP. The main industrial branches are:
•
Food,drink and tobacco. It is by far the most important activity regionwide and it is based mainly on transforming cattle, agricultural and dairy products. This industry is divided into two types:
•
Canned foods industry, high dependent from outside capital and a high technological standard.
•
Cork and timber,scattered all over the region, (San Vicente and Valencia de Alcántara.Mérida,Cáceres,etc...) produces basically cork for wine bottles and insulating panels.
•
Metallurgy: Most of it consists of foundries and structures for construction business, to be found in all the main Extremaduran towns. TERTIARY SECTOR It is the highest job-creating and income-producing sector in Extremadura (60.5% of
regional GNP).
COMMERCE. Inner commerce.Two kinds coexist: •
Traditional commerce,family-oriented and focused on food and textile products.
•
Big commercial areas,lately established but quite developed, attracting most of the Extremaduran population.
•
Street markets,that take place once a week in very other town,selling mainly articles of first necessity at reasonable prices,as they are usually sold by the producers themselves. Outer commerce. Extremaduran commercial balance shows deficit,since our
importations are bigger then our exportations. Our region keeps close commercial ties with Portugal, France, the United Kingdom, Germany and Italy. TOURISM This economic activity has grown consideably in the last decades. Rural and cultural tourism are salient,due the richness of our historical and artistic heritage,as in the cities of Mérida,Guadalupe and Cáceres as well as monasteries like Yuste, King Charles V's last residence. Also, in Extremadura another type of tourism has a strong presence, related to high quality spas and hydrotherapy and feasts and traditions, such as the carnivals in Badajoz and Navalmoral de la Mata. Touristis flows The number of tourists received and overnight stays in our region has steadily grown over the past years. In 2011 the number of the former went over 1.2 million people, a historical top figure as well as overnight stays, well over 2 million. Aside from these figures,Extremadura can boast a huge cultural heritage,in as much as three of our cities have been declared World Heritage cities,a distinction bestowed upon Cáceres in 1986 and upon Mérida and Guadalupe in 1993.The former counts on one of the most impressive and best kept monumental cities in the Iberian Peninsula and Europe, and was declared in 1968 third Monumental city in Europe, only surpassed by Prague and Tallinn.
TOURISTIC FACILITIES IN EXTREMADURA In Extremadura there are seven four-star “Paradores� (these are luxury stateowned hotels, renowned by being placed in historic buildings and offering gourmet food),197 hotels, 234 hostels,60 boarding houses,31 campsites,59 rural hotels,199 rural apartments and 384 boarding cottages. Summarizing, on analizing the economic position of Extremadura the main liabilities are our high unemployment rate, the thinness of our industry on the ground, as well as the low development of our R+D+i and the strong dependence of our economy on services and food and agriculture sector. It is by all means vital to increase, and dramatically at that, the investment in education and on labour policies that favour investment and training for innovation and development of renewable energies such as eolic, solar or bio-mass production, which are highly promising.
*The dehesa is an agricultural and cultural landscape typical of Extremadura and in general of Southern Spain and Portugal. For more
information,see:
http://en.wikipedia.org/wiki/Dehesa_(pastoral_management)
TURKEY
Industry in Turkey The first starting point of Industry in Otoman Empire is started at 18 century. There were paper, fabric, printing ,tile factories; shipyards and armories followed them. But unfortunately due to war, rivalry forces etc. They couldn’t achieve success as intented before until the first years of Republic. The most important progress in Republic of Turkey was the first İzmir Economic Congress in 1923, than 1927 promotion of industrial law. Throughout the years agriculture factories are founded nearby the raw materials. Other factories are founded to, Turkish people started to export product than ındustry developped. Today there are a lot of Industrial building are spreaded to much of Turkey’s areas. Food Industry
Food industries are growing an important industry branch in Turkey. Biskuits and chocolate factories are manifacturing with modern method.
Textile and cloth Industry
Textil industry is very important for Mine Industry Turkey. These fairly quality products sending to Europe and America.
Milk Industry
Milk factories, olive oil and sunflower oil factories enhancing their manufacturing. This goods are use local bazaar and out countries. This goods sending to Europe, old soviet republics and middle east countries. Leather Industry and carpet
Our leather industry produce very quality dress and shoes. These dress and shoes sending to Europe and America. The carpets was made with hand Industry formerly.Machine We making to these carpets with modern method and machines now.
Our Mine industry producting to iron, steel, copper. also boron mine very important for we. Because boron is 75% producing in turkey on the world. Boron is important producing export for Turkey.
Chemical Industry
Machine industry a developing industry in turkey at last years. These are making important workings in Turkey and other countries.
Ceramic and porcelain
Chemical industry is an important industry for turkey . These factories making very export .
There are glass factories in Ä°stanbul and Sinop. These glass selling at domestic bazaars and other countries. Ceramic and porcelain factories making product in istanbul and KĂźtahya. These products are famous in Turkey and in world.
Writen by
Mrs Emine KARABACAK Mrs Selcan BAÄžCI
HISTORY OF KARAMAN'S ECONOMY Karaman was an imporant capital center in Middle Anatolia at medieval age. There were some traders and art masters in the city because of the city was the capital city of Karamanoğlu seigniory. Muslims and christians people lived in here. The city were on trade routes. Karamanoğulları Seigniory were disposed by Ottoman empire at 1352. Some trades and art masters went to İstanbul. The trade life finished with immigration. This recession continued to 1970. İt was the cotton factory helping regain economic power. Other factories opened at 1990. There are big and little 99 factories in Karaman. 9000 people are working these in factories.
AGRICULTURE ON KARAMAN Karaman lands are convenient only 36% for agriculture. The climate is important for agriculture manufacture. Wheat Cultivation is done North of Karaman. Because there are continental climate in here. Vegetable and fruits Cultivation at wetland areas and valleys.
Karaman is apple cultivation champion in Turkey. These apples are sold in local bazaars and sent to middle Asia, Middle east and North Africa. Some apples and grapes are made fruit Juice at factories in Karaman.
Ermenek Town lands and Göksu Valley is suitable for olives, vegetables and fruits. There are meditarranean climate.
Sugar beet cultivation is source of income in Karaman
LIVESTOCK ON KARAMAN
Livestock is very important for some families living in Karaman’s villages. Usually these families feeds sheep and goat and these families live on Toros mountain villages. Chickens are feeded at little farms near Karaman. These eggs and chicken aren’t sent other cities. These are only for local bazaars. Recent agriculture is devolopped as hobby. Some people and families manifacture with agiculture. Therefore honey manifacture İncreased in recent years.
industry of Karaman
Industry is about to development at Karaman. There are many factories in Karaman. These
factories manifacturing food. There are some factory for manufacturing agriculture machines. 8500 people are working in this factory. There are 5 biscuit factories in Karaman. These are manifacturing biscuits sold to middle Asia countries, middle east countries and North Africa countries. Some biscuits sold at local bazaars and in Turkey’s bazaars. A lot of people come to this factories from nearby villages and towns to work with service buses. A lot of people living in the villages immigrate to Karaman for work these factories. Therefore the number of people living in the villages decrease more and more.
MINNING IN KARAMAN There aren’t many mine in Karaman lands. There are many brown coal mine in Ernemek Town lands. There are 750-1000 people working at these mines.
Writen by Mr Rahim ÖZKAYA - Mrs. Ayşe Eda KARADENİZ
FINLAND
The Finnish economy – from hunger country to welfare society
1860-1910 The Finnish still starved in 1860. 1879 a law was legislated, which allowed the advancement of industry and other livelihoods. In the 19th century, it was typical for the Finnish society to have fast population growth, big income difference, poverty and weak productivity of work. Agriculture was the most important livelihood and Finns didn’t have much money. Industrialization started in the end of the 19th century. At the same time the development of the cities started too. Forestry gave a push to the economic growth. Agriculture changed to dairy cattle economy. The standard of living grew considerably in the beginning of the 20th century. In the beginning of the 20th century farmers mostly ate bread, milk and potato. Cheese, vegetables and meat or fish were also eaten in worker families. When salaries grew, people started to buy clothes. Earlier they had made clothes themselves.
The First World War-1940 The First World War stopped the favorable development. The war continued longer than it was thought at first. That’s why there was a shortage of groceries. In 1917 there was a general strike in Finland and demonstrations were held. Food had to be regulated. In the end of 1919 the grocery situation started to get better. Stockmann’s new and handsome department store was opened in Helsinki 1930. It was a symbol of a modern world. Also first store on wheels came to traffic.
New consumer goods such as radio, telephone, turntable and car came to the market. Advertising also became popular. The Second World War also cut economy growth in Finland. Finns had to regulate food and groceries again. Thanks to voluntary work, home front was able to survive through regulating.
1950-1990 In 1950, most of the Finnish people got their incomes from forests and farming, and about 70% lived in the countryside. People slowly started to move away from countryside to cities and started to work in factories instead of fields. West Europe’s rebuilding and better global economy after the Second World War made living better in Finland too. Consumption was doubled by the year 1952. In the 1950’s Finland started to change to consumption society. Its breakthrough happened in the next 20 years. Toilets, water pipes and drains started to become general. People bought house hold machines, for example fridges and vacuum cleaners. In the 1950’s, Finnish industrial design became popular and well- known all over the world. Food’s part of the consumption of money was 10% lower in 1965 than in 1950, which reflects that the standard of living was growing. Traffic’s and amusement’s parts grew in the 1950’s. People were into movies, light music, radio and dancing evenings. In the end of the 50’s the regular TV shows started in Finland. Travelling started to become common slowly, even though travelling abroad was minor. In the 1960’s Finns started to travel abroad more. The building of the welfare society proceeded in our country bit by bit. The renewal of the national pension system in 1950’s was the biggest project while creating welfare. 1960’s was the decade of a big change of structure. The structure of consumption changed and even a bigger part of
consumption was spent in traffic, accommodation, refreshment and other consumption. In the half way of the decade had already 75% of the Finns a television. The 1960’s was the decade of cars. Bringing the cars was released from distribution in 1962. In the end of the decade our country had 700,000 registered cars. The consumption of popular entertainment had multiplied remarkably last decade. Youngsters became clearly remarkable consumers. During the year 1966 the number of workers in industry passed the number of workers in agriculture. In 1980’s the physical wealth multiplied. Stereos, microwaves, videos and waterbeds was bought in more and more houses. Until 1990 over 90% of the households owned a television, vacuum cleaner and over 80% a telephone and a washing machine. But almost every house owned a fridge or a freezer, a car and stereos. Economic depression in the beginning of the 1990’s cut the ongoing progression. Bankruptcies and unemployment reached heights that hadn’t seen before. However, Finland pulled through the depression and is doing physically well. In the end of the 1990’s the consumption increased. The effects of the depression showed for a long time. The decreasing unemployment has been painfully slow and the mental sickness and displacement has awoken a lot of discussion.
21st century
At the beginning of the new century, Finland is in many ways more developed country than 20 years ago. The country has opened to Europe and life is full of chances. National contest skills are good and Finland has succeeded to profile itself as a hi-tech expert. Finland is well-known for Nokia and cell phones but also for Internet and other information technology. Dozens of tiny, usually youngster bossing innovating companys are almost international and they are going to raise Finland to success. The ability to change fast is both an advantage and a disadvantage to Finland. Because of our ability we have adopted the use of e-mail, cellphones and the internet faster than other Middle-European countries. The advantage on these areas has been able to turn into international competition advantage. In the world of limitless competition the companies and experts can easily move from one country to another. In the view of Finland the big question is how to set up taxation and service prices so that the experts of the branch will stay in Finland.
The short history of the Finnish money Finland got its own money in 1860 while Finland was under Russians power. People organized a competition about currencys name; other ideas for currencys name were for example sataikko, äyri and suomo, but the name “markka” was chosen; Mark split up to hundred pennies.
Silver mark used in years 1864- 1915.
One mark bill in 1860. Mark became an independent currency in 1865 and in 1878 it had the same value as the French frang, Switzerland’s frang and the Italian lira. At the same time mark coins were golden. People didn’t often pay with golden coins after all Finland’s banks bills weren’t legal as a payment, even though everyone accepted them as a payment.
Golden coins from 1878. There is Russian’s emperors symbol, two headed eagle.
On the front side of the penny was a lion escutcheon, which replaced the Russian two-headed eagle. Backsides oak sprigs changed to corn ears and confiner branchs, which described the economic life of Finland. In 1963 was a money reformation, and old mark was replaced with a new mark. It was worth 100 old marks.
Marks from years 1953 and 1954.
A mark coin from year 1983.
A five mark coin from year 1950.
The last mark coin serie from years 1990 and 1993.
A mark bill from year 1963.
A bill from 1975, with a picture of Finland’s long influencing president, Urho Kekkonen.
A bill from year 1987, with a picture of a succesful finnish long distance runner, Paavo Nurmi.
A bill from year 1986, with Anders Chydenius in the picture
From Mark to Euro 1. January 1999 Finland’s mark was united with European Union’s common currency – the euro. One euro was worth 5, 84573 marks. In the beginning of 2002 the first euro coins and bills were issued. The use of marks expired in 28.2.2002.
ROMANIA
ŞCOALA GIMNAZIALĂ VĂDENI
ECONOMY OF ROMANIA
Romania has a developing, upper-middle income market economy, the 17th largest in the European Union by total nominal GDP and the 13th largest based on purchasing power parity. The collapse of the Communist regime in 1989, reforms in the 2000s (decade) and its 2007 accession to the European Union have led to an improved economic outlook. Romania has experienced growth in foreign investment with a cumulative FDI totaling more than $170 billion since 1989. Up until the late 2000s financial crisis , the Romanian economy has been referred to as a "Tiger " due to its high growth City Gate Towers – Bucharest, Romania rates and rapid development. Until 2009, Romanian economic growth was among the fastest in Europe (officially 8.4% in 2008 and more than three times the EU average). The country is a regional leader in multiple fields, such as IT and motor vehicle production, Bucharest, the capital city, is one of the largest financial and industrial centres in Eastern Europe.
History Before World War II After World War I, the application of radical agricultural reforms and the passing of a new constitution created a democratic framework and allowed for quick economic growth (industrial production doubled between 1923–1938, despite the effects of the Great Depression). With oil production of 7.2 million tons in 1937, Romania ranked second in Europe and seventh in the world. The oil extracted from Romania was essential for the German war campaigns. Before World War II, Romania was Europe's second- largest food producer.
Economy during 1944–1989 After the Second World War, Romania became a member of the Eastern Bloc , and switched to a socialist-style command economy. During this period the country experienced rapid industrialization in an attempt to create a "multilaterally developed socialist society". Economic growth was further fueled by foreign credits in the 1970s, but this eventually led to a growing foreign debt, which peaked at $11–12 billion. Romania's debt was largely paid off during the 1980s by implementing severe austerity measures which deprived Romanians of basic consumer goods. In 1989, before the Romanian Revolution, Romania had a GDP of about 800 billion lei, or $53.6 billion. Around 58% of the country's gross national income came from industry, and another 15% came from agriculture. [21] The minimum wage was 2,000 lei, or $135.
Free market transition Privatization of industry was pursued with the 1992 transfer of 30% of the shares of some 6,000 state-owned enterprises to five private ownership funds, in which each adult citizen received certificates of ownership. The remaining 70% ownership of the enterprises was transferred to a state ownership fund, with a mandate to sell off its shares at the rate of at least 10% per year. The privatization law also called for direct sale of some 30 specially selected
enterprises and the sale of "assets" (i.e., commercially viable component units) of lar ger enterprises. As of 2008, inflation stood at 7.8%, up from 4.8% in 2007 estimated by the BNR at coming within 6% for the year 2006 (the year-on-year CPI, published in March 2007, is 3.66%). Also, since 2001, the economy has grown steadily at around 6–8%. Therefore, the PPP per capita GDP of Romania in 2008 was estimated to be between $12,200 and $14,064. Financial and technical assistance continued to flow in from the U.S., European Union, other industrial nations, and international financial institutions facilitating Romania's reintegration into the world economy. The International Monetary Fund (IMF), World Bank (IBRD), the European Bank for Reconstruction and Development (EBRD), and the U.S. Agency for International Development (USAID) all had programs and resident representatives in Romania. Romania also attracted foreign direct investment, which in 2008 rose to $72 billion. Romania was the largest U.S. trading partner in Central-Eastern Europe until Ceauşescu's 1988 renunciation of Most Favored Nation (non-discriminatory) trading status, the latter of which resulted in high U.S. tariffs on Romanian products. Congress approved restoration of the MFN status effective 8 November 1993, as part of a new bilateral trade agreement. Tariffs on most Romanian products dropped to zero in February 1994 with the inclusion of Romania in the Generalized System of Preferences (GSP). Major Romanian exports to the U.S. include shoes and clothing, steel, and chemicals. Romania signed an Association Agreement with the EU in 1992 and a free trade agreement with the European Free Trade Association (EFTA) in 1993, codifying Romania's access to European markets and creating the basic framework for further economic integration. At the Helsinki Summit in December 1999, the European Union invited Romania to formally begin accession negotiations. In 2002, the target date of 2007 was set for Romania, along with Bulgaria, for its accession efforts. This was confirmed in 2003 at the Thessaloniki Summit and then in early 2005 Romania and Bulgaria signed the adherence treaty to EU. They formally joined the EU on 1 January 2007. During the latter part of the Ceauşescu period, Romania earned significant credits from several Arab countries, notably Iraq, for work related to the oil industry. In August 2005, Romania agreed to forgive 43% of the US$1.7 billion debt owed by an Iraq still largely occupied by the military forces of the U.S.- led "Coalition of the Willing ", making Romania the first country outside of the Paris Club of wealthy creditor nations to forgive Iraqi debts. Growth in 2000–07 was supported by exports to the EU, primarily to Italy and Germany, and a strong recovery of foreign and domestic investment. Domestic demand is playing an ever more important role in underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. Current account deficits of around 2% of GDP are beginning to decline as demand for Romanian products in the European Union increases. Recent accession to the EU gives further impetus and direction to structural reform. In early 2004 the government passed increases in the Value Added Tax (VAT) and tightened eligibility for social benefits with the intention to bring the public finance gap down to 4% of GDP by 2006, but more difficult pension and healthcare reforms will have to wait until after the next elections. Privatization of the state-owned bank Banca Comercială Română took place in 2005. Intensified restructuring among large enterprises, improvements in the financial sector, and effective use of available EU funds is expected to accelerate economic growth. However, the Romanian economy was affected by the Financial crisis of 2007–2008 and contracted in 2009.
Romania's GDP drop during the 1990s The GDP of Romania between 1870 and 2008 in
1990
International dollars .
EU membership (2007) On 1 January 2007 Romania entered the EU. This led to some immediate international trade liberalization, but there was no shock to the economy. The government is running annual surpluses of above 2%. This is to be contrasted with enormous current account deficits. Low interest rates guarantee availability of funds for investment and consumption. For example, a boom in the real estate market started around 2000 and has not subsided yet. At the same time annual inflation in the economy is variable and during the mid-2000s (2003–2008) has seen a low of 2.3% and high of 7.8%. Most importantly, this poses a threat to the country's accession to the Eurozone. The Romanian government initially planned for the euro to replace the leu in 2012. However, experts predict that this might happen as late as in 2014. From a political point of view, there is a trade-off between Romania's economic growth and the stability required for early accession to the monetary union. Romania's per-capita PPP GDP is still only about a 40% of the EU average, while the country's nominal GDP per capita is about 25% of the EU average. In the winter of 2004 the government introduced a flat tax of 16% that was introduced on 1 January 2005. This is done in hope for higher GDP growth and greater tax collection rates. The reform, which some called a "revolution" in taxation, was met with mild discussions and some protests by affected working classes. Romania subsequently enjoyed the lowest fiscal burden in the European Union, until Bulgaria also switched to a flat tax of 10% in 2007. The accession of Romania to the European Union has given the Union access to t he Black Sea.
GDP Member State sorted by GDP
European Union Romania
inbillions of US$ (2010)
GDP % of EU
Annual change % of
GDP Public Deficit Inflation per capi ta Debt % of GDP % Annual in PPP US $ % of GDP (2010) (2010) (2008) (2010)
Unemp. %
(2010)
GDP (2010)
(2010)
14,940
100.0%
0.9
33,700
63.8
−2.6
3.5
7.2
262
2.0%
1.5
14,400
21.2
-4.0
5
4.4
2009 IMF loan At the end of March 2009 Romania signed a deal for 20 billion Euro in loan: 12.95 Billion Euro will come from the IMF; 5 Billion Euro will come from the European Union; 1.5 Billion – from the World Bank and about 1 Billion – from other international financial institutions. The interest paid by Romania will be 3.5% per year. In return for the loan, Romanian has committed to severe cuts in public spending and wages. One year later, the government cut civil servants' wages by 25%, while thousands of state jobs were axed and VAT was increased by 5% to 24%.
The economy In the Romanian press the economy has been referred to as the "Tiger of the East" during the 2000s. Romania is a country of considerable economic potential: over 10 million hectares of agricultural land, diverse energy sources (coal, oil, natural gas, hydro,nuclear and wind ), a substantial, if aging, manufacturing base and opportunities for expanded development in tourism on the Black Sea and in the mountains.
National budget The national budget for 2013 was 230 billion lei (69.38 billion dollars), which represents 32.9% from the GDP according to the Ministry of Finance. National budget was increasing rapidly before the financial crisis, about 8 billion dollars each year for the interval of time 2005–2009. The national defense budget was around 2.38% of the GDP and was estimated at US$4.78 billion for 2008.
Economic growth GDP growth reached 8.3% in 2006 according to the statistical office of the Romania (the year-to-year growth amounted to unexpected 9.8% in the 3rd quarter of 2006 and stayed high at 9.5% year-to-year change in the 4th quarter of 2006), and 8.0% in 2007. Table showing selected PPP GDPs and growth – 2007 to 2014 estimations, as of October 2013. Year 2007
GDP % GDP Growth in billions of USD PPP 246.750
+6.317
2008 2009 2010
270.056 254.240 254.361
+7.349 −6.576 −1.149
2011 264.953 +2.158 2012 271.441 +0.689 2013 (est.) 280.658 +3.5 2014 (est.) 291.401 +2.156 Romania's Gross Domestic Product at purchasing power parity (PPP) is predicted to stand at $16,982.323 per capita in 2015, when the country is expected to join the Eurozone. If this estimation proves correct, Romania will surpass Turkey, Bulgaria and Venezuela in this aspect.
Growing middle class Romania has growing middle and upper classes with relatively high per capita incomes. World Bank estimated that in 2002 99% of the urban and 94% of the rural population had access to electricity. In 2004, 91% of the urban and only 16% of the rural population had access to improved water supply and 94% of the urban population had access to improved sanitation. In 2007 there were about 19.5 million mobile phone users in Romania and about 7 million internet users. The net average monthly wage was 1,617 lei (€387) in March 2013. The net average monthly wage was 1,192 lei (roughly 380 USD) in March 2008, rose to 1,352 lei (430 USD) in 2009 and is expected to reach 1,819 lei (570 USD) by 2013. The income from salaries in Romania had the highest growth rate in the region during 2006. Despite recent growth Romania still has the lowest net average monthly wage in the European Union.
Romania's Nominal GDP per capita
per countyin 2012
Romania's Net Salary
per county in 2012
Currency The leu (pronounced [ˈlew]), plural: lei ([ˈlej]); ISO 4217 code RON; numeric code 946) is the currency of Romania. It is subdivided into 100 bani (singular: ban). On 1 July 2005, Romania underwent a currency reform, switching from the previous leu (ROL) to a new leu (RON). 1
RON is equal to 10,000 ROL. Romania joined the European Union on 1 January 2007 and initially hoped to adopt the euro in 2014, but with the deepening of the Euro crisis and with its own problems, such as a low workforce productivity, postponed its adoption plans indefinitely.
The fulfillment of the Maastricht criteria Romania, as a member state of the European Union is liable for the adoption of the common European currency, the Euro. For this reason Romania must fulfill the Maastricht criteria . Romania meets 2 out of the 5 criteria. Convergence criteria
Assessment month
Country
Reference values 2012 ECB Report[nb
3] Roma nia Reference values
HICP inflation rate (12-months av erage of annual rates)[nb
1]
max. 3.1%[nb
4]
Budget deficit to GDP
max. 3.0%
(as of 31 Mar 2012)
(Fiscal year 2011)
4.6%
5.2%
max. 2.5%[nb
max. 3.0%
6][nb 7]
(Fiscal year 2012)
(as of 31 Mar 2013)
April 2013
Roma
3.9%
2.9%
Debt-toGDP ratio
ERM II member
max. 60%, or
Longterm interest
rate (12-months average of 10yr bond [nb 2] yields)
decreasing (Fiscal year 2011)
min. 2 years
max. 5.80%[nb
(as of 31 Mar 2012)
(as of 31 Mar 2012)
33.3%
No
7.25%
max. 60%, or
5]
decreasing (Fiscal year 2012)
min. 2 years
max. 4.81%[nb
(as of 31 Mar 2013)
(as of 31 Mar 2013)
37.8%
No
6.43%
6][nb 8]
Criterion fulfilled nia
Criterion potentially fulfilled: If the budget deficit exceeds the 3% limit, but is "close" to this value (the European Commission has deemed 3.5% to be close by in the past), then the criteria can still potentially be fulfilled if either the deficits in the previous two years are significantly declining towards the 3% limit, or if the excessive deficit is the result of exceptional circu mstances which are temporary in nature (i.e. one-off expenditures triggered by a significant economic downturn, or by the implementation of economic reforms that are expected to deliver a significant positive impact on the government's future fiscal budgets). However, even if such "special circu mstances" are found to exist, additional criteria must also be met to comply with the fiscal budget criterion. Additionally, if the debt-to-GDP rat io exceeds 60% but is "sufficiently dimin ishing and approaching the reference value at a satisfactory pace" it can be deemed to be in co mpliance.
Criterion not ful filled
Natural resources Romania is an oil producer, but the current level of production isn't enough to make the country self-sufficient. Although at one time it was Europe's largest producer of oil, most of its reserves were used and squandered during the Nicolae CeauĹ&#x;escu period. As a result, it is today a net oil and gas importer. The pipeline network in Romania included 2,427 km for crude oil, 3,850 km for petroleum products, and 3,508 km for natural gas in 2006. Several major new pipelines are planned, especially the Nabucco Pipeline for Caspian oilfields, the longest one in the world. Romania could cash in four billion dollars from the Constanta-Trieste pipeline . Romania has considerable natural resources for a country of its size, including coal, iron ore, copper, chromium, uranium, antimony, mercury, gold, barite, borate, celestine (strontium), emery, feldspar, limestone, magnesite , marble, perlite, pumice, pyrites (sulfur), clay, arableland and hydr opower. Romania's mineral production is adequate to supply its manufacturing output. Energy needs are also met by importing bituminous and anthracite coal and crude petroleum. In 2007 approximately 34 million tons of coal, approximately 4,000 tons of tungsten, 565,000 tons of iron ore, and 47,000 tons of zinc ore were mined. Lesser amounts of copper, lead, molybdenum, gold, silver, kaolin, and fluorite also were mined.
Energy The
energy sector is dominated by state-owned companies such as Termoelectrica, Hidroelectrica and Nuclearelectrica . Fossil fuels are the country's primary source of energy, followed by hydroelectric power; Romania has an estimated hydropower capacity of 36,000 GW per year. Due to dependency on oil and gas imports from Russia, the country has placed an increasingly heavy emphasis on nuclear energy since the 1980s. The Cernavodă Nuclear Power Plant is currently the only one of its kind in Romania, although there are plans to build a second one in Transylvania, possibly after 2020.
The
Iron Gate I Hydro Power Plant, a joint venture between Romania and Serbia.
Wind power
Wind power had an installed capacity of 76 MW in 2008, and the country has the largest wind power potential in Southeast Europe, with Dobruja listed as the second best place in Europe to construct wind farms. As a result, there are currently investor connection requests for over
12,000 MW. There are also plans to build a number of solar power stations, such as the Covaci Solar Park, which will be one of the largest in the world. Of the electricity generated in 2007, 13.1 percent came from nuclear plants then in operation, 41.69 percent from thermal plants (oil and coal), and 25.8 percent from hydroelectric sites.
Physical infrastructure The volume of traffic in Romania, especially goods transportation, has increased in recent years due to its strategic location in South-East Europe. In the past few decades, much of the freight traffic shifted from rail to road. A further strong increase of traffic is expected in the future. As of December 2012, there are only 527 km of motorways in use. At present 369 km of motorways are under construction with an estimated timetable in 2013-2016. The railway network, which was significantly expanded during the Communist years, is the fourth largest in Europe. Bucharest is the only city in Romania which as of 2009 has an underground railway system, comprising both the Bucharest Metro and the light rail system managed by Regia Autonomă de Transport Bucureşti. Although construction was planned to begin in 1941, due to geo-political factors, the Bucharest Metro was only opened in 1979. Now it is one of the most accessed systems of the Bucharest public transport network with an average ridership of 800,000 passengers during the workweek. In total, the network is 67 km long and has 49 stations.
A1 motorway near Sibiu.
The Bucharest Metro
Sectors of the economy Agriculture Agriculture employs about 29% of the population (one of the highest rates in Europe), and contributes about 8.1% of GDP. The Bărăgan is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region.
Beef production is located in central Romania, while the production of fruits, vegetables, and wine ranges from central to southern Romania. Romania is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. The implementation of the reforms and the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) have resulted in reforms in the agricultural sector of the economy.
A land usage map of Romania
Fishing Fishing is an economic mainstay in parts of the East of Romania and along the Black Sea coast, with important fish markets in places such as Constanta and Galati. Fish such as herring, crab, lobster,haddock and cod are landed at ports such as Constanta. There has been a large scale decrease in employment in the fishing industry within Romania due to the EU's Common Fisheries Policy, which places restrictions on the total tonnage of catch that can be landed, caused by overfishing in the Black Sea. In tandem with the decline of
sea-fishing, commercial fish farms – especially in salmon, have increased in prominence in the rivers and lochs of the east of Romania. Inland waters are rich in fresh water fish such as salmon and trout.
Industry Romania has been successful in developing its industrial sector in recent years. Industry and construction accounted for 32% of gross do mestic product (GDP) in 2003, a comparatively large share even without taking into account related services. The sector employed 26.4% of the workforce. Romania excels in the production of automobiles, machine tools, and chemicals. Motor vehicle production tripled in the 2000s (decade), but still lags behind neighbouring countries such as Hungary or Ukraine. In 2004 Romania enjoyed one of the largest world market share in machine tools (5.3%). Romanian-based companies such as Dacia, Petrom, Rompetrol, Bitdefender, Romstal and Mobexpert have expanded operations throughout the region. However, small-to medium-sized manufacturing firms form the bulk of Romania's industrial sector. Romania's industrial output is expected to advance 9% in 2007, while agriculture output is projected to grow 12%. Final consumption is also expected to increase by 11% overall – individual consumption by 14.4% and collective consumption by 10.4%. Domestic demand is expected to go up 12.7%. Industrial output growth was 6.9% year-on-year in December 2009, making it the highest in the EU-27 zone which averaged −1.9%.
Services In 2003 service sector constituted 55% of gross domestic product (GDP), and the sector employed 51.3% of the workforce. The subcomponents of services are financial, renting, and business activities (20.5%); trade, hotels and restaurants, and transport (18%); and other service
activities (21.7%). The service sector in Romania has expanded in recent years, employing some 47% of Romanians and accounting for slightly more than half of GDP. The largest employer is the retail sector, employing almost 12% of Romanians. The retail industry is mainly concentrated in a relatively small number of chain stores clustered together in shopping malls. In recent years the rise of big-box stores, such as Cora (hypermarket) (of the France) and Carrefour (a subsidiary of the French), have led to fewer workers in this sector and a migration of retail jobs to the suburbs.
Regional variation The strength of the Romanian economy varies from region to region. GDP, and GDP per capita is highest in Bucharest. The following table shows the GDP (2005) per capita of the 4 counties and 2 areas, with data supplied by Eurostat.
Rank Place 1 2 3 4 5
Bucharest Cluj Timiş Braşov Constanţa
GDP per capita in dollars 27,344 26,934 25,121 24,788 24,696
The highest GDP per capita is found in Bucharest and surrounding Ilfov County.Values well above the national average are found in Timiş, Argeş, Braşov, Cluj, Constanţa, Sibiu and Prahova. Values well below the national average are found in: Vaslui, Botoşani, Călăraşi, Neamţ, Vrancea, Suceava, Giurgiu, Mehedinţi, Olt and Teleorman.
Foreign trade Italy is Romania's largest trading partner; two-way trade totalled some $22.6 billion in 2007. The principal exports from Italy to Romania include computers, integrated circuits, aircraft parts and other defense equipment, wheat, and automobiles, along with remittances. Romania's chief exports to Italy include cut diamonds, jewelry, integrated circuits, printing machinery, and telecommunications equipment. 2.8% of the country's GDP is derived from Agricultural activity. While Romania imports substantial quantities of grain, it is largely self-sufficient in other agricultural products and food stuffs, due to the fact that food must be regulated for sale in the Romania retail market, and hence imports almost no food products from other countries. [ Romania imported in 2006 food products of 2.4 billion euros, up almost 20% versus 2005, when the imports were worth slightly more than 2 billion euros. The EU is Romania's main partner in the trade with agri- food products. The exports to this destination represent 64%, and the imports from the EU countries represent 54%. Other important partners are
the CEFTA countries, Turkey, Republic of Moldova and the USA. [72] Despite a decline of the arms industry in the post-communist era, Romania is a significant exporter of military equipment, accounting for 3–4% of the world total in 2007. EU members are represented by a single official at the World Trade Organization. During the first trimester of 2010, Romanian exports increased by 21%, one of the largest rates in the European Union, surpassed only by Malta. The trade deficit currently stands at roughly 2 billion EUR, the eighth largest in the EU.
A chart of Romania's export products.
Miscellaneous data Households with access to fixed and mobile telephone access landline telephone – 46% (2009) mobile telephone – 72% (2009) Broadband penetration rate 13% (2010) Individuals using compute r and internet computer – 44% (2009) internet – 37% (2009)
Economy in our county, Hunedoara General presentation
Hunedoara County is located in the central- western part of Romania, in the historical Province of Transylvania. Surface : 7063 km2 Population: about 486.000 inhabitants Administrative Center: DEVA, in the center of the county with about 75.000 inhabitants. The main economical branches are: production and distribution of electric energy, extractive industry, metallurgy, vehicle engineering, electric wirings for cars, constructing materials, tourism, services, fabrics/ leather goods, animal breeding. The reforms imposed by our membership to the European Union have radically transformed the economy of our county. The metallurgy and mining activities that were important branches until the middle of decade 1990 – 2000, have been restructured so that only profitable mines have been kept active the others being closed or passed in conservation. The Iron & Steel Complex, one of the biggest in our country is now the property of the English Indian LNM Holdings.
Inside the territory of the county, close to Deva City, it is located the most performing thermo-electric power station in Romani, at Mintia.
On the Big River from the Retezat Mountains, a hydro-electric power station is in use, and another thermo-electric power station is active in the Jiul Valley, at Paroseni. Still close to Deva City is active one of the most modern Cement Plant belonging to the Carpat Cement Group.
At
Simeria, the Marmosim SA Trade Company is one of the biggest producers of marble. The extracted marble from the Ruschita Quarry rivals to the rock from Italy, Spain or
Portugal.
The concept promoted by the Hunedoara County Council is that of sustainable and lasting development, with the aim of creating jobs, increasing the people income and improving the life standard. The economy of Romania
Agriculture employs about 29% of the population (one of the highest rates in Europe), and contributes about 8.1% of GDP. The Bărăgan is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region. Beef production is located in central Romania, while the production of fruits, vegetables, and wine ranges from central to southern Romania. Romania is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. Fishing is an economic mainstay in parts of the East of Romania and along the Black Sea coast, with important fish markets in places such as Constanta and Galati. Fish such as herring, crab, lobster, haddock and cod are landed at ports such as Constanta. There has been a large scale decrease in employment in the fishing industry within Romania due to the EU's Common Fisheries Policy, which places restrictions on the total tonnage of catch that can be landed, caused by overfishing in the Black Sea. In tandem with the decline of sea-fishing, commercial fish farms – especially in salmon, have increased in prominence in the rivers and lochs of the east of Romania. Inland waters are rich in fresh water fish such as salmon and trout.
32% taking
of
Industry and construction accounted for gross domestic product (GDP) in 2003, a comparatively large share even without into account related services. The sector employed 26.4% of the workforce. Romania excels in the production of automobiles, machine tools, and chemicals. Motor vehicle production tripled in the 2000s
(decade), but still lags behind neighbouring countries such as Hungary or Ukraine. Romanian-based companies such as Dacia, Petrom, Rompetrol, Bitdefender, Romstal and Mobexpert have expanded operations throughout the region. However, small- to medium-sized manufacturing firms form the bulk of Romania's industrial sector. Romania's industrial output is expected to advance 9% in 2015, while agriculture output is projected to grow 12%. Final consumption is also expected to increase by 11% overall – individual consumption by 14.4% and collective consumption by 10.4%. Domestic demand is expected to go up 12.7%. Industrial output growth was 6.9% year-on-year in December 2009, making it the highest in the EU-27 zone which averaged −1.9%. In 2003 service sector constituted 55% of gross domestic product (GDP), and the sector employed 51.3% of the workforce. The subcomponents of services are financial, renting, and business activities (20.5%); trade, hotels and restaurants, and transport (18%); and other service activities (21.7%). The service sector in Romania has expanded in recent years, employing some 47% of Romanians and accounting for slightly more than half of GDP. The largest employer is the retail sector, employing almost 12% of Romanians. The retail industry is mainly concentrated in a relatively small number of chain stores clustered together in shopping malls. In recent years the rise of big-box stores, such as Cora (hypermarket) (of the France) and Carrefour (a subsidiary of the French), have led to fewer workers in this sector and a migration of retail jobs to the suburbs. Here are some drawings made by our students. This is how they understand economy.
ESTONIA
ECONOMIES ESTONIA
Eduard Kutsar. Painting - K端ndja
Agriculture Just a couple of generations ago agriculture was the main occupation of the Estonians. Nowadays only about 3% of the workforce is engaged in agriculture and the sector yields just slightly more than 3% of the overall production and 1.7 of GPD. As a result of the economic and property reforms of the early 1990s Estonian collective and state farms became history, giving way to small farms and associations. The transitional period of the 1990s was a hard time for agriculture – competition with cheap imported products became an issue, enterprises needed new equipment and vehicles, but money for it was nowhere to be found. In the late 1990s it became impossible to export into Russia due to its internal crises, though it had been the principal sales outlet for the Estonian agricultural produce during the Soviet era. Joining the European Union was good for Estonian agriculture, because from then on it was possible to sell food products to other European countries, as there were no longer any customs or importation restrictions, and the Russian market opened up again, too. Estonian farmers began receiving various grants that are still significantly smaller than in western Europe, although manufacturing costs have risen to almost the same level. Recent years have seen Estonian agricultural enterprises getting bigger. Modern technologies are being used more and more; there’s almost nothing left of the old manufacturing sector. Almost all small farms are now history, only advanced large farms are able to survive. Milk cattle, also pigs and poultry are the main farm animals raised in Estonia. Field crops include cereal crops, potatoes and vegetables. Plant products are mostly for internal use, a considerable amount of meat is imported. Some dairy products and some specific products – e.g. cultivated and wild berries, mushrooms, ecologically pure produce etc -are for export. The figures of productivity of the Estonian agriculture are surpassed by those of many climatically better situated countries, but the local produce contain considerably less chemicals and organic farming is gaining popularity.
Farm in Surju
Forestry and Related Industries The forest is among Estonia's most important natural resources and a source of a considerable amount of raw material. Although just 1% of Estonia's workforce is engaged in forestry and the branch gives somewhat more than 1% of Estonia's production, it provides raw material for timber, paper and furniture industries, which make up another 6% of the overall production and which employ more than 4.5% of the workforce.
The larger part of the output of Estonia's forestry and related industries goes for export, whereas Estonia increasingly exports goods of a higher value. The production and export of wooden construction details, wooden furniture and wooden houses has been going up consistently. Estonia is one of the biggest exporter of wooden houses in Europe. The main export destinations are Finland, Sweden, Germany, Norway and Great Britain. Timber companies are located all over Estonia, a number of them in small towns or even in villages. Estonian cellulose and paper industries have a long history, some factories (e.g. in R채pina) have been in operation since the mid-19th century. Today the raw material comes from local forests as well as from Russia, Latvia and Lithuania.
Service sector More than 71% of the Estonian GDP is derived from the service sectors, industrial sectors yield 25% and primary branches (including agriculture) approximately 4% of the overall output. Service sectors experienced a rapid development in the early 1990s as many of them did not even exist in the Soviet economic system. During the Soviet era the function of a large part of the plants and factories was producing goods for the military industry and for Russia, and their production now proved unnecessary. Therefore a lot of basic necessities had to be imported at first. Recent years have seen the growth of the industry to surpass the increase of the services sector, which means that more and more necessary goods can now be produced locally.
Due to Estonia's smallness it is impossible to locally produce all the products and services needed by the local people and enterprises. But in order to be able to import them, something must be exported. That is why export holds such a prominent position for the Estonian economy and its growth. The volume of export of goods and services amounts to 73% of the Estonian GDP, export of services constitutes about one third thereof. The main services the export of which brings profit to Estonian enterprises are various services related to transport and Russian transit but also procceeds from tourism. More than two thirds of the Estonian industrial production is for export.
About 4 million tourists visit Estonia every year, the majority of them come Finland and stay for a short period — morning (night) trip from Helsinki to Tallinn, evening (night) trip from Tallinn to Helsinki. Here they visit shops and service outlets. Tourists who come for a couple of days also go to the theatre and other places outside Tallinn. The number of tourists from Sweden and Germany is constantly growing. Tallinn is an important cruise destination at the Baltic Sea (next to Copenhagen, Stockholm and St Petersburg), welcoming travellers from different parts of the world (USA, Great Britain, etc).
Currency Beginning in June 1992, the kroon was the currency in Estonia, with an exchange rate fixed to the German mark (1 mark = 8 kroons). After the creation of the euro, the kroon was tied to the euro (with an exchange rate of 1 euro = 15.6466 kroons). In 2011, Estonia joined the euro zone and the euro became the local currency. Of course it did not occur so easily as politicians thought: euro and world economical crisis caused a fastest inflation seen in Estonia during recent years.
Published by "I.C. Galileo Galilei" Gravellona Toce, Italy