The Strategy of Economic Development of the Romanian – Ukrainian Trans-Border Region (Maramureş, Satu Mare, Zakarpatia and Ivano-Frankovsk)

THE STRATEGY OF ECONOMIC DEVELOPMENT OF THE ROMANIAN – UKRAINIAN TRANS-BORDER REGION (MARAMUREŞ, SATU MARE, ZAKARPATIA AND IVANO-FRANKOVSK)

- SUPPORT ACTIONS - - STRATEGIC DIRECTIONS -

- 2008 - Baia Mare, Maramures County, Romania

1 The Strategy Throughout the stages of drawing up the strategic directions and issuing the herein document, the aim has been to draw up some directions meant to support the actions undertaken for the purpose of increasing the economical competitiveness in the regions as well as to strengthen the trans-border economical cooperation. In order for this regions to develop from the economical point of view, the entities involved in drawing up the herein document decided that the objectives must be set and implemented in a harmonized manner, together with and as per the regional development strategies and, at the same time, they must rest within the area of control and influence of the involved players. This is the reason why the herein document proposes only strategic directions for development, without covering the programming and planning stages. Thus, an action-orientated strategy has been issued that, besides identifying the objectives and the results, offers a set of exemplifying actions that can be materialized in possible projects.

The System of Objectives The vision of the strategy has been defined starting from the territorial analysis and from the SWOT matrix issued, as follows: „To support the economical development and the improving of the business environment in the Romanian – Ukrainian Trans-border Region (Maramureş, Satu Mare, Zakarpatska and Ivano-Frankovsk), starting from the analysis of the present territorial situation and relying on the institutional cooperation of the relevant players at local level.”

The general objective : “To increase the economic competitiveness in the Romanian – Ukrainian Trans-border Region (Maramureş, Satu Mare, Zakarpatska and Ivano-Frankovsk)”

The analysis of the present territorial situation underlines the issues that the business environment in the Region is facing. The strategy does not consider elements from the external action environment of the involved players. Thus, the approach considers some support actions for the business environment.

Specific objectives: 1. To reduce the financial and technological deficiencies; 2. To identify and correlate the deficiencies on the labour market; 3. To strengthen the exchange of business information; 4. To increase the level of the managerial and organizational culture.

The first specific objective of the strategy aims at approaching one of the major problems of the business environment in the region that affects competitiveness, namely the reduced technological level in the companies. Even if one of the causes of the technological deficiencies is the lack of financing or the reduced accessibility to it, both aspects have been analysed and formulated within the same objective because of the fact that the poor financing affects not only the technological component but also the development of other sectors (human resources, organizational, financial, promotion etc.). The second objective considers the human resources component. The analysis made revealed a high degree of occupation in agriculture, in parallel with a development of the rural environment almost exclusively from agricultural activities. The decreased level of entrepreneurship, especially marked by the reduced number of SME-s in the Region, the ageing of the rural population, the decreased level of regional mobility doubled by a labour force migration outside the region and the deficiencies in the human resources management, affect the economical development. The third objective started from the territorial analysis in order to approach the communication and image issues that the economical environment is facing. Given the absence of some relevant studies at regional level, European data and statistics have been used with the purpose of substantiating the conclusions. The following factors hamper the increase of the economical competitiveness: the insufficient knowledge of the two economical environments, the existence of an ungrounded “mythology” concerning the two economical environments, the reduced accessibility to relevant business information, the reduced

2 level of the business environment visibility within and outside the Region, as well as the existence of the communication barriers. The fourth specific objective aims at approaching a less palpable and countable set of issues related to the business environment. The existence of some differences in the managerial and organizational cultures between the business environment in the Region and the one, generically named, “European”, are obvious but difficult to define. However, it is obvious that they aim at affecting the economical competitiveness. They are nothing but those elements which, practically speaking, either support or hamper the reaching of the other three objectives and, implicitly, of the general objective. The following elements have been thus identified: opposition to change, poor confidence in the business relationships, deficiencies in the organizational management, a reduced degree of associative spirit or a mentality in which “owner” (entrepreneur) = manager. The main purpose of setting the objectives is that of offering directions for approaching the most important issues identified in the Region business environment, exemplifying with actions that once transferred into practice should provide both sustainability of the long and average term developments and implementation of the relevant partnerships.

The obtaining of some results supports reaching each separate specific objective:

Specific objectives: 1. To reduce the technological and financial deficiencies Results: - Improving the capacity to access financing sources; - Increasing the technological level in certain production sectors; - Stimulating the increase of the innovation level.

2. To identify and correlate the deficiencies on the labour force market Results: - Reducing the migration of labour force outside the Region; - Increasing the labour force mobility inside the Region; - Making more efficient programs for labour force steadiness; - Attracting and keeping the young persons in the rural areas.

3. To intensify the exchange of business information Results: - Improving the image of the business environment inside and outside the Region; - Facilitating the access to relevant business information; - Increasing the two economic and business environments’ visibility; - Reducing the communication barriers (the language).

4. To increase the level of managerial and organizational culture Results: - Accepting the new / the change at organizational level; - Improving the image of manager’s “profession”; - Increasing the confidence in the business relationships; - Improving the organizational management; - Stimulating the associative spirit.

3 VIZIUNE To support the actions of economical development and the improving of the business environment in the Romania – Ukraine Trans- border Region (Maramureş, Satu Mare, Zakarpatska and Ivano-Frankivska), starting from the analysis of the present situation and relying on the institutional cooperation of the relevant players at local level.

OBIECTIVUL GENERAL To increase the economic competitiveness in the Romania – Ukraine Trans-border Region (Maramureş, Satu Mare, Zakarpatska and Ivano-Frankivska)”

Specific Objective Specific Objective Specific Objective Specific Objective 1. To reduce the 2. To identify and correlate 3. To intensify the exchange 4. To increase the level of technological and financial the deficiencies on the labor of business information managerial and deficiencies force market organizational culture

Results: Results: Results: Results: - Improving the capacity to - Reducing the migration of - Improving the image of the - Accepting the new / the access financing sources; labor force outside the business environment inside change at organizational - Increasing the Region; and outside the Region; level; technological level in the - Increasing the labor force - Facilitating the access to - Improving the image of production units; mobility inside the Region; relevant business manager’s “profession”; - Stimulating the increase of - Making more efficient information; - Increasing the confidence the innovation level. programs for labour force - Increasing the two in the business relationships; steadiness; economic and business - Improving the - Attracting and keeping the environments’ visibility; organizational young persons in the rural - Reducing the management; areas. communication barriers (the - Stimulating the associative language). spirit.

4 The Methodology of Issuing the Strategy The starting point for issuing the methodology, the instruments and the working frame for the herein strategy has been the need to involve in the process the local players belonging to three main environments: economic, administrative and academic. The need to get information, analyses and perspectives from as many sources as possible was even bigger as the target was to issue an instrument with practical applicability, for the benefit of the entities involved as actions promoters. At the same time, the herein document does not include the planning and programming stages, but only the strategic directions. These have been detailed with types of exemplifying actions, with risk and stakeholders analyses so that it could offer a potential portfolio of projects. The involvement of the players in the three environments is required in order to ground the analysis in those areas in which the secondary information was missing and the primary one could not be get through representative means. In the same respect, through consultations with the involved ones, the strategy set its area of influence of the objectives. Those elements, which are outside the control area of the involved players (the external environment), have not been approached directly within this strategy being put either in the external area (OT) of the SWOT matrix or approached indirectly through “lobby” types of actions. However, they have been taken into consideration in the territorial analysis as elements meant to affect, either positively or negatively, the economical development. Moreover, the involvement of the players in the three environments is also required in order to provide a relevant platform for developing common projects, having as starting point a partnership structure from the very framing stage. While issuing the strategy, an important criterion has been that of harmonizing the system of objectives with the programming documents in force, at different levels. The strategy is based on the structure, the trans-border development plans, respectively the national and regional plans. The main document that sets the basis of the territorial analysis is entitled “The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program”, the common elements of the two approaches being considered: the geographical area, the objectives and terms, the mix structure of the players involved in the drawing up. The analysis in the herein document has been adapted, detailed and updated with secondary data in order to provide an as coherent grounding of the conclusions as possible. Considering the common elements of the two documents, the conclusions of the territorial analysis are in agreement with each other. In order to provide efficiency, secondary information has been mainly used in the analysis of the territorial situation (statistical data, development programs, and previous studies at European, regional, national and county level). The territorial analysis of the Region uses statistical data from years 2004 –2007.

As far as the methodology is concerned, it covers the following steps: - Collecting the statistical data, analysing the existing databases; - Analysing the secondary documents, the planning studies and documents in force; - The territorial analysis; - Identifying the strong / weak points, the opportunities and threats, issuing the SWOT matrix, issuing the problems tree within a workshop attended by representatives of the three environments in the Region: economic, administrative and academic; - Issuing the objectives tree, formulating the results, the indicative actions, the specific objectives and the general objective within a workshop attended by representatives of the three environments in the Region: economic, administrative and academic; - Analysing the specific objectives, performing the stakeholders analysis, the risk analysis, drawing u the objectives charts within two workshops attended by representatives of the three environments in the Region: economic, administrative and academic.

5 THE ANALYSIS OF THE TERRITORIAL SITUATION

General Information The area of the strategy enforcement is placed at the frontier between Romania-Ukraine and it includes the following territorial units: Maramures and Satu Mare (Romania), Zakarpatska and Ivano-Frankovsk (Ukraine). The strategy area includes approximately 250 km of common frontier with Ukraine and it covers partially the Romanian – Ukrainian border (366,4 km).

General Outlook The border with Ukraine, at the level of the North-West Region measures 250 km, out of which the terrestrial border is of approximately 185 km, and the fluvial (Tisa) one is of approximately 65 km. The trans-border relations between the two areas, Romanian and Ukrainian, have important landmarks given by the geographical position. Both areas are part of Tisa basin and of the mega-region „Carpatica”.

Counties Description

Maramures County 1

Brief History "The Countries" of Maramures, Lapus, Chioar and Codru have shared over the history a common destiny. The surrounding mountains, rich in metals, have favoured the developing of bronze and iron metallurgy. The archaeological discoveries from Oarta de Sus, Lapus, Sighet, Sarasau, Lapusel, Tisa and from many other places revealed many bronze deposits and gold thesauri specific for Witenberg ( Sighisoara ) and Suciu de Sus “cultures”, some of the items being ones of the oldest in Europe.

Maramures is attested for the first time in documents in years 1199 and 1231, when, in the Hungarian legacy diplomas the county is mentioned either as Maramurus, Maramorisio, or as "terra Maramorus" - "the country of Maramures" in 1299. The historians characterized Maramures as the "classical country of princes and especially of voivodes", which could be organized as county only in the second half of the XIV-th century, being among the last territories conquered by the Hungarian royalty. After the peace from Oradea, in year 1538, Maramures was attached to Transylvania. In the inter-wars period, the county residence was Sighet Town. The county had in 1930 a population of 161.575 inhabitants, out of which 57,7% Romanian, 20,9% Jews, 11,9% Ruthenian, 6,9% Hungarian, 2% German and others. Baia Mare formed part, successively, from Satmar Comitat and from Satu-Mare County (inter-wars). Position: to the Northern-Western extremity of Romania, at the border with Ukraine, nearby parallel 47'55" Northern latitude and the meridian 23'55" Eastern longitude, hence very close to the geographical centre of Europe.

Administrative and Territorial Organization The county includes two cities: Baia Mare – which is also the county residence and Sighetu Marmatiei; 11 towns: Baia Sprie, Borsa, Cavnic, Dragomiresti, Salistea de Sus, Seini, Somcuta Mare, Tautii Magheraus, Targu Lapus, Ulmeni, Viseu de Sus ; 63 communes and 225 villages.

1 Sources: The National Institute of Statistics, Maramures County Council, Maramures Prefecture, The Maramures Chamber of Commerce and Industry, The Document “The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program”

6 Borders Neighbours: North-Ukraine; West-Satu Mare; South-Salaj, Cluj, Bistrita Nasaud; East- Suceava. Surface: 6304 km2 (respectively 2,6 % of the country territory). The county capital: Baia Mare.

Population The total number of population is of 515,610 inhabitants, with a population density of 81.8 inhabitants / km 2. There are 76 settlements in the county (cities, towns and communes), out of which 13 with 500-1999 inhabitants, 62 with 2000-49999 inhabitants and 1 settlement with above 50000 inhabitants.

The Economy (2006) The Industry The weight of the industrial branches in the total turnover (as on 31.12. 2006): - The extraction industry 3,7 % - The processing industry 94,6 %, out of which : - Metallurgy 9,5 % - Food and beverages 6,6 % - Wood processing 9,5 % - Furniture and other industrial activities 26,5 % - Ready-made clothes and garments 4,2 % - Electrical and thermal energy, gas and warm water 1,7 % Construc tions The value of the construction works reached in 2006 the amount of 161.204 thousand RON, the weight being the works of new constructions (64,1 % of the total). From the point of view of the structure of the new constructions works, the works performed at the engineering constructions have the greatest weight (61,4%)while the works at the residential constructions have the smallest weight (3,9%). Agriculture Agriculture land: 311.177 ha, out of which: - Arable land - 84.009 ha -Pastures - 101.022 ha - Hayfields - 119.762 ha - Orchards - 6.154 ha - Vineyards - 230 ha As concerns the surface cultivated for the exploitation of the main crops, the surfaces were occupied in 2006 as follows: Total: 73805 ha, out of which: grains 37927 ha, wheat and rye 6876 ha, barley and two-row barley 549 ha, maize 21410 ha, oily plants 1126 ha, sunflower 1097 ha, sugar beet 1 ha, potatoes15145 ha and vegetables 2273 ha. Forestry: 289.179 ha of woods, representing 45,9 % of the county surface and 4,5 % of the national forestry fund. Animals: - Cattle - 94.126 heads - Porcine - 88.130 heads - Sheep - 156.977 heads - Goats - 14.600 heads The weight of industry, services, agriculture and constructions in the internal gross product at the level of the North-West Region of Romania in year 2005 was as follows: industry: 24,6 %, agriculture: 10,1 %, constructions: 5,3 %, services: 60,0 %. As far as the agriculture is concerned, the agricultural lands summed up in 2005 a total surface of 3111,5 km 2 out of which, arable lands 839,98 km 2, pastures 1010,2 km 2, hayfields 1197,6 km 2, vineyards 2,3 km 2 and orchards 61,54 km 2. The agricultural lands occupied in 2005 a surface of 46,6 % from the entire surface of the county.

7 Tourism Maramures County offers conditions for alpine climbing winter sports, for mountains tourism, balneal treatment, and agro-tourism. Places of touristic interest: the museums in Baia Mare and Sighetu Marmatiei, the monuments of popular architecture, the Borsa, Izvoarele, Mogosa resorts, the villages on the valleys of Iza, Mara, Viseu and Tisa rivers, “The Merry Cemetery”, the Monasteries from Sapanta, Barsana and Rohia. In Maramures, in 2005, there were 112 touristic units, out of which 21 hotels and motels, 1 touristic chalet, 1 touristic villa/bungalow, 3 school and pre-school camps, 19 touristic boarding houses, 66 agro-touristic boarding houses and 1 hostel.

In 2005 there were 8899 SMEs registered in Maramures County, with an average number of 17.3 SMEs per one thousand inhabitants.

Nature and Ecology The relief is predominantly mountainous, generally uneven, the heights reaching between 200 m in depressions and 2.300 m on the mountain peaks (which represent 3/4 of the territory). It has the aspect of a wide natural amphitheatre. The Maramures Depression is completely surrounded by mountains, to its South-West being the Volcanic Mountains Oas, Gutai and Tibles, to East the Maramures Mountains and to South-East the Rodnei Mountains (with Pietrosu Peak of 2.303 m), with sharp and long crests, imposing steep slopes and picturesque valleys. It also includes parts of the Transylvanian Sub-Carpathians, the Somesan Plateau, and The Western Hills. The climate is differentiated depending on the diversity of the relief; temperate – continental, with winds from the direction of South-West and South-East; 275 days from a year have positive values of temperature; the atmospheric precipitations are among the largest in the country, about 70% of the county areas benefiting from 900-1000 mm rainfalls per year. The water flows cross the county like a spider net: Tisa with its affluent rivers: Viseu (with Cisla, Vaser, Ruscova), Iza (with Mara, Ieud, Botiza), which cross the depression through a wide valley bounded by terraces, Somes river in South with the affluent rivers: Lapus, Barsau, as well as the mineral water springs: Borsa, Craciunesti, Breb, Botiza. The hydrography is completed by the glacial natural lakes situated in Rodnei and Gutaiului Mountains, by the salty ones from Ocna Sugatag and Costiui, as well as by the ones from Stramtori-Firiza, with approximately 18 million m 3 water for the supply of Baia Mare City, and the ones from Runcu-Brazi-Firiza designed for 30 million m3 water which are going to supply water in Baia Mare and Sighetu Marmatiei. Maramures County has a valuable natural patrimony that includes 35 protected natural areas out of which a national park – The National Park of Rodnei Mountains - A Biosphere Reservation, as well as The Natural Park of Maramures Mountains. Once the Maramures Mountains were declared through the Government Decision no. 2151/2004 to be a Natural Park, Maramures County became the second in the country with the largest surface of protected natural areas. Maramures County has a hydrographical network of over 3100 km, covering the hydrographical basins of Somes and Tisa and, to a smaller extent the ones of Bistrita and Prut, the water flows and the lakes occupying a surface of 5.650 ha (4,12 % of the entire county surface). A large part of the 35 protected natural areas in Maramures County includes wet areas, these having a special regime of preserving. We mention the following: The National Park of Rodnei Mountains, The Biosphere Reservation that includes all the glacial lakes in Rodnei Mountains and Muced Mire; The Blue Lake (Baia Sprie); The Miller’s Lake; The Poiana Brazilor Swamp; The Vlasinescu Peat Bog; Dumitru’s Mire, The Iezerul Mare Swamp; The Black Mire Peat Bog; The Lapus River Pass (confluent with Cavnic River); the area of Farcau Peak and Vinderel Lake; Tisa with the main affluent rivers: Viseu, Iza and Sapanta; Somes with the affluent rivers: Lapus, Salaj and Barsau.

Culture and traditions (2006) Maramures County offers a thesaurus of popular culture, traditions, customs, folklore and handcrafts, the researchers characterizing Maramures as “a turn table” of the popular civilization. In all areas there are real networks of folkloric festivals and customs, of artisans’ fairs, the most

8 important ones being the following: The Festivals of Winter Traditions from Sighet and Tg. Lapus, "The Chestnuts’ Festival” from Baia Mare, The Festivals of National Song, Dance and Costumes from Somcuta Mare, Asuaju de Sus, Mesteacan, the customs on the occasion of "Gold-Haired Fairies", and "The Prislop Hora " the Borsa one, "The Tanjaua on Mara" Hoteni, "Spring Harmonies" Viseu de Sus. Maramures County had in 2006 3 theatres, 9 cinematographs, 18 museums, 389 libraries (out of which 69 public), 4 art institutions, 127 clubs and 6 houses of culture. At the same time, the following universities were operating: “ Universitatea de Nord”, Baia Mare – state owned, “ Vasile Goldis” University, Arad, Baia Mare Branch – private, “ Bogdan Voda” University, Cluj Napoca – private, “Spiru Haret ” University, Bucharest, Sighetu Marmatiei Branch – private and “ Titu Maiorescu ” University, Bucharest, Baia Mare Branch – private. Mass-media Written media: - County daily papers - 5 (6 issues/week); - Weekly papers – 5; - Monthly papers – 1. Audio – visual: - Local radios – 6; - TV broadcasters - Licences for terrestrial broadcasting – 2; - Licenses for cable broadcasting - 3. Infrastructure Means of communication: Roads: - 309,1 km of national roads, out of which 295 km are modernized. - 1265 km of county and communal roads, out of which 250 km are modernized. - Streets in the cities: 1089 km, out of which 481 km are modernized. Railway: it provides connection to Ukraine, Slovakia, and Poland. The total length of the railway network: 207 km, out of which 179 km have normal rail gauge. Tautii Magheraus Airport provides internal and international rides. The Romania-Ukraine borderline on the limit line of Maramures County measures 162 km, with three operational customs points: 1. VALEA VISEULUI – DILOVE – railway transport of passengers and goods, 2. CAMPULUNG la TISA – TERESVA - railway transport of passengers and goods, 3. SIGHETU MARMATIEI – SOLOTVINO - pedestrians, road transport of passengers and goods; As concerns the activities of telephone services, at the end of 2006 the number of telephone subscriptions amounted to 74761.

Satu Mare County 1

Brief History The creators of the Suciu de Sus culture lived in this area n the bronze age. A significant role in the development of this area played the Dacians who, for almost a millennium, created a flourishing civilization, its peak being at Mediesu Aurit, where the archaeologists found traces of 13 kilns for burning kitchenware, the biggest in the country.

9 Situated at the intersection of some important commercial roads and possessing numerous natural wealth and resources, Satu Mare Comitat (attested in 1181) had a tumultuous history. The powerful strongholds which ruins can be still seen (Satu Mare, Ardud, Mediesu Aurit, Tamaseni, Carei, etc.), as well as the Romanic churches (Acis sec. XIII) and the gothic ones (Ardud, Eriu-Sincrai, Beltiug, s.a.) prove the wealth of the inhabitants living in these regions. In year 1657, the Satmar stronghold and region were occupied by the Polish, the peace treaty being signed by Ian Sobieski, the future king of Poland. Between years 1660 – 1661 the county is devastated by the Turkish armies. The setting up of the Habsburgic domination after year 1711, the year when the wars of curuti ended, brought about a long age of stability and prosperity for this region. Germanic populations have been colonized on the Satu Mare territory throughout the XVIII-th century. The XX-th century was a difficult one for Satmar as well, due both to the two World Wars but also due to the accomplishment, on December 1, 1918, of Transilvania’s union to Romania. Position: Satu Mare County is situated in the North-West part of Romania, at the inferior Somes course, at the intersection of the Western Plain, the Somes Plateu and the Oriental Carpathians.

The Administrative Structure: The county includes 2 cities: Satu Mare and Carei, 4 towns: Ardud, Livada, Negreşti Oaş and Tăşnad and 58 communes, the county residence being Satu Mare that is also the economic, cultural and educational centre of the county.

Borders Neighbours: North - Ukraine; West - Hungary; South – Bihor County; South - East – Salaj County, East – Maramures County. Surface: 4417,8 km2 (respectively 1,8 % of the country territory). The county capital: Satu Mare.

Population The total number of the population amounts to 368702 inhabitants, with a density of the population of 83.5 inhabitants /km 2. There are 64 settlements in the county (cities, towns and communes), out of which 12 with 500-1999 inhabitants, 51 with 2000-49999 inhabitants and 1 with over 50000 inhabitants.

The Economical Potential The economic structure of Satu Mare County has an industrial-agricultural character, the most important branches being the machines construction industry, the food industry, the textile industry and the wood industry. Nowadays, in an economy that used to depend mainly upon the agricultural sector, the tertiary sector has a bigger role every day. In year 2005, the weight of industry, services, agriculture and constructions in the Internal Gross Product at the level of the North-West Region of Romania was as follows: industry: 24,6 %, agriculture: 10,1 %, constructions: 5,3 %, services: 60,0 %. As concerns the industrial sector, the most representative are the auto industry and the connected branches, the industry of electrical machineries for domestic use, the furniture industry, the light industry, the agriculture – food industry and the machines construction industry. As concerns the agriculture, the agricultural lands summed up in 2005 a total surface of 3174,77 km 2, out of which arable lands 2217,34 km 2, pastures 554,70 km 2, hayfields 296,89 km 2, vineyards 34,25 km 2 and orchards 71,59 km 2. The agricultural lands occupied in 2005 a surface of 71,86% of the total county surface. The largest part of the cultures is aimed for the cereal crops (maize and wheat). Other cultures specific for the county are as follows: sugar beet, vegetables and potatoes, sunflower and the cultures of fruit trees. As far as the tourism is concerned, the most important touristic areas are the ones from Tara Oasului and the Codru area, the cities of Satu Mare and Carei, the towns Negresti-Oas and Tasnad, the communes Mediesu Aurit and Ardud, the villageAdy Endre.

10 The Tara Oasului area is a complex one, with special natural landscapes (Luna Ses with Pietroasa Peak, The Depressions Puturoasa and Camarzana, The Calinesti-Oas Lake), with national folklore and arts. The Codru area has the most attractive landscapes at Oteloaia, Valea Bolzii, Hodisa, Pintea’s spring. In 2005 in Satu Mare there were 61 touristic units, out of which 9 hotels and motels, 5 touristic chalets, 1 camping and houselets unit, 34 touristic villas/bungalows, 5 school and pre- school camps, 3 touristic boarding units, 3 agro-touristic boarding units and 1 touristic halting place.

In 2005 there were 6795 SMEs registered in Satu Mare County, with an average number of 18.3 SMEs per one thousand inhabitants.

Nature and Echology As far as the relief is concerned, the county territory is diverse, including plains, as main form of relief, hills and mountains. The plains area, component of Pannonia depression, represents 63% of the total surface and it lays in the West and Southeast part of the county, being crosses by Somes and Crasna rivers. The mountain area occupies the North-East part of the county, being represented by Oas Mountains and a small part of Gutai Mountains. The mountains height become higher and higher from East to West reaching 827 m in Oas Mountains and 1200 m in Pietroasa Peak from Gutai Mountains. Towards West, the mountains close the depression named as “Tara Oasului”. The hydrographical network of Satu Mare County is represented by Somes river, with a length of 60 km on the county territory, Tur 66 km and Crasna 57 km. The climate is temperate-continental, with warm summers, cold winters and rich rain flows. The highest maximum temperature reached +39,4°C and it was recorded in August 1952 in Carei, while the lowest temperature of -30,4°C was recorded in December 1961 in Satu Mare. The soils are not very diversified, the predominant ones being the brown silvester ones and the brown-yellow podsol. In the meadow of Somes River, we find alluvial soils and in Eriu Plains, we find sandy soils.

Culture and tradition As concerns the cultural life, Satu Mare County has a rich cultural tradition and a series of cultural institutions, such as: theatres, one philharmonic orchestra, 60 public libraries (at county level) with a number of books exceeding 1.000.000 copies, 2 cinemas, four multi-functional cultural clubs, 17 museums (including one dedicated to preserving the national tradition of German origin), two art galleries and a centre of creation promotion. The cultural life is completed by the annual editions of some theatre, music and poetry festivals, some of them with international participation. The education has a long tradition in the history of Satu Mare County, the first medieval schools being documentary attested in the XIV –th century, and in 1636 the first gymnasium was set in Satu Mare. The educational system of the county was carried out in 2005 in 149 institutions of pre- university education, out of which 26 institutions of pre-school education, 96 primary and gymnasium schools, 26 high schools and 1 vocational school and post-high school. In year 2005, in Satu Mare County there were 6 institutions of high education, out of which we mention: ,,Vasile Goldis" West University Arad, Satu Mare Branch, The Commercial Academy, ,,Babes Bolyai" University, Cluj Napoca, Satu Mare Branch and the Technical University from Cluj Napoca, Satu Mare Branch. Mass media is well represented through two daily newspapers, weekly magazines, literature magazines, radio and TV broadcasters.

Infrastructure Means of communication: Roads: - 269 km of national roads;

11 - 1338 km of county and communal roads. The total length of the railway network is of 220 km. The Satu Mare Airoport provides internal and international routes. In the county there are three customs points: Petea-Csengersima and Urziceni- Vállaj at the Hungarian border (for road transport of passengers and goods) and Halmeu- Diakovo, at the Ukrainena border (both road and railway transport of passengers and goods).

Ivano-Frankovsk region (oblast’) 1

History Ivano-Frankovsk oblast’ (former Stanislavs’ka) was established on December 4, 1939. On the three-hundredth anniversary celebrated in November 1962, the regional centre Stanislaw was renamed in Ivano-Frankovsk.

Political division Ivano-Frankovsk oblast’ comprises 14 regions: Bohorodchansky, Verkhovynsky, Halytsky, Horodenkivsky, Dolynsky, Kalushsky, Kolomyjsky, Kosivsky, Nadvirnyansky, Rogatynsky, Rozhnyativsky, Snyatynsky, Tysmenytsky, Tlumatsky. The Administrative Structure The authority of Ivano-Frankovsk oblast’ is structured in regional state administrations and district state administrations. The leadership of Ivano-Frankovsk regional state administration is provided by the President, the first Vice-President of the regional state administration and the Vice-Presidents of the following sectors: information, religion, nationalities, culture, sport; energy, industry, transport, and communication; constructions, communal services and motor road economy; territory development and foreign economic relations; agriculture and food, trade, consumer services of the population; political and legal issues and organizational staff activity of regional state administration on organization, legal, personnel and inspection work.

Borders Ivano-Frankovsk oblast’ occupies the Northeastern part of the Ukrainian Carpathians, the Pre-Carpathians and partly Opillya. Area – 13,9 thousand sq. km. The region borders L’viv, Zakarpattya, Ternopil and Chernivtsi regions. On the south – frontier with Romania. Administrative centre – Ivano-Frankovsk.

Population Total number of the population is – 1393 thousand people, density of the population – 100 inhabitants on sq. km. There are 804 settlements (towns, communes) and 765 villages, out of which 253 with 1-499 inhabitants, 407 with 500-1999 inhabitants, 141 with 2000-49999 inhabitants and 3 with more than 50000 inhabitants. The largest cities are – Ivano-Frankovsk, Kalush, Kolomyya.

Economic potential Industry Industry is one of the leading branches of the regional economy. In the national production, the region takes leading places in the production of potash fertilizers, caustic soda, wood particleboards, wood fibreboards, cement, slate, asbestos-cement pipes and sleeves, and industrial gas-meters.

1 Sources: The Ukrainian Government, The State Regional Administration of Ivano-Frankovsk, The Document entitled “The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program”

12 Over the last years, it has been observed a stable tendency to increase the industrial products output in the chemical and petrochemical industry. The fields of oil and gas and oil refining also hold one of the important places among the regional branches. In 2001, the share of products manufactured by enterprises from this field made almost one third of the regional output. In the region, there is a complete production cycle: well boring, oil and gas extraction and processing as well as transportation and supply. The woodworking industry is a priority branch in the region. It takes one of the leading places at the state level. This industry was one of the first to reach the stabilization. This branch is characterized by the production re-orientation and listed products change. The raising of production mainly takes place at the enterprises of log-processing, production of building details from wood and boards, veneers, paper and cardboard, furniture enterprises. In addition, the state and regional levels measures took during the last years have provided the stable work of the machine-building enterprises. The light industry has great potential in production of clothes from the fur, leather goods, tafting covering, cotton yarn, outer and light clothing, working clothes, knitted wear, curtain nets. The fur production near the regional centre has been famous for its fur garments for more than four centuries. Nowadays there are enterprises with integrated production fields vertically structured, which dresses and dyes skins of rabbit, mink, nutria, astrakhan, fox, polar fox, muskrat, and lambskin.

Agriculture In 1999 the gross grain yield in the region amounted to 244,7 thousand tons, sugar-beets – 245,2 thousand tons, sunflower seeds – 0,4 thousand tons, potatoes – 621,6 thousand tons. It also produced 81,8 thousand tons of meat, 521,7 thousand tons of milk and 236,1 million eggs. At the beginning of 1999 there were 578 farms in the region. Principal direction of agriculture development is cattle breeding with unit weight in total volume of agriculture production 53%. Vegetation: flax, sugar beet, cereals.

Tourism The climatic conditions of Ivano-Frankovsk Oblast facilitate year-round rest and vacation, as well as treatment. Snow covers the slopes of the Carpathians up to five months of the year, which promotes the development of downhill skiing. In the Oblast there are five resorts and two sanatoriums. For resort therapy, they use climatic treatment and mineral baths. There are following resorts: lowland: Kosiv, Tatariv, Yaremche; midland: Vorokhta, and the balneology pre-mountain resort Cherche. Yaremche is also known as the tourist capital of the Carpathians, and Vorokhta - the winter sports capital. Both towns have well-developed infrastructures. The Oblast has a large tourist and recreation base. More than 100 objects (hotels, sanatoriums, hostels and resorts) are able to accept more than 12 thousand vacationers at a time. In 2005 there were 147581 tourists registered in Ivano-Frankovsk region.

In 2005 there were 7259 SME-s registered within the region, with an average number of 5.2 SME-s per one thousand inhabitants.

Culture and traditions Over 10 state and 60 public museums, National reserve "Old Galych" function in the region. Over 162 thousand exhibits are kept in their funds. Ivano-Frankovsk Museum of Local Lore is in the Tower, the former house of city self- management that is the original visit-card of our city. Expositions of the museum are rich in interesting exhibits; special attention is paid to the sarcophagus of Galych prince Jaroslav Osmomysl. Ivano-Frankovsk art museum is located in the Renaissance church of the XVIII century, where unique Galych icons and baroque sculptures, works of Ukrainian artists of the second half of the XX century, as well as masterpieces of Polish, Austrian and Italian artists of the XVIII-XX

13 centuries, baroque works of Thomas Gudder, Konrad Kutchenreiter, Joana George Pinzel, Mateus Polejovsky, Dionis StanettЁ, pictures of brothers Unterberg and many others are collected. In the exposition of the Art Museum a wide palette of decoratively - used arts is presented. Kolomyja museum of Folk Art of Hutsulshchyna and Pokuttya after J. Kobrynskyj is one of the oldest storehouses of arts and crafts in the Pre – Carpathians. The confirmation of this fact is that it is included to the Royal Encyclopaedia of Great Britain as a museum of world masterpieces. The scientists of this institution contact with the museums and scientific institutions of USA, Canada, Australia, Japan, France, Germany, Italy, Poland, Russia, Estonia, Czech Republic, Slovakia, Romania and Austria. The work of cultural - educational establishments goes on the further revival of spiritual values, ethnic and cultural traditions of our land, disclosing of unknown pages of Pre- Carpathian history and the state. A wide spectrum of genres of world and national art masterpieces finds its reflection in the creativity of the regional music-drama theatre (after I. Franko), the regional theatre of dolls (after. M.Podhorjanka), the regional theatre of folklore, national holidays and shows, the Kolomyja drama theatre (after Gnat Hotkevych). Ivano-Frankivs’k region has kept many interesting folk customs, traditions, legends, crafts that in urbanized society have absolutely disappeared. Modern holidays, in villages, as well as in cities are held with the participation of national craftsmen, local skilful people - embroiderers, potters, carpet-makers, carvers, “pysanky” makers - all those who has inherited the talent from the Halych land. In the region, there are 1152 religious communities, 13 confessions, 10 cloisters, 2 theological seminaries and theological institute.

Nature and ecology The region is rich in landscape: the Alps of the Carpathians, the picturesque banks of foothills. The forests of the region form the greatest part of the forest fund of Ukraine. The water resources are provided by Nistru and Prut rivers with the correspondent inflows. The soil – forest, sod-podzol. Minerals: 160 deposits of 24 kinds of minerals have been found. On Ivano- Frankivshchyna there are the main oilfields and gas fields of the Carpathian oil and gas province. The largest deposits are: Dolynske oilfield, Bytkiv-Babchynske oil and gas fields, Bohorodchanske gas field. Non-metallic mineral resources are represented by significant potassium and magnesium salt deposits, healing mineral waters. The Oblast covers a territory of 13.9 thousand square kilometres. The Oblast is divided into three distinct relief types: plain, foothills, and mountains. The relief gets higher from northeast to southwest. The plain occupies the southwest area and adjoins the Nistru River. Here the Oblast centre – the city of Ivano-Frankovsk (255 m above the sea level) is situated. The central part consists of rolling hills (400-600 m high). The mountain region is occupied by the Eastern Carpathians, which are divided into four ridges: Chornohora, Horhany, Hryniava, Chyvchyny. In the Chornohora ridge, there is Mt. Hoverla (2061 m) – Ukraine’s highest peak. The climate of the Oblast is continental. Winters are mild and summers are warm. The average temperature over the year is maximum +21 0 Celsius and minimum –4 0 Celsius. In the Carpathians, the climate is more severe and it changes with the elevation. Average temperatures are lower than in the pre-mountain zone. Such climatic conditions facilitate year-round rest and vacation, as well as treatment. Snow covers the slopes of the Carpathians up to five months per year, which promotes the development of downhill skiing. Most of the rivers are mountain-fed, thus creating cascades and waterfalls, and they can be used for water tourism. The biggest rivers are the Nistru River and the Prut River. The source of the Prut River is located in the Oblast close to Mt. Hoverla. The Ivano-Frankovsk Oblast is one of the richest forest regions in Ukraine. 41% of the territory is covered by forests; the plain is covered by leaf-bearing forests and the foothills - with conifer forests. Among the conifer woods, there is a lot of fir trees. There are sub-alpine pastures more than 1500 m high.

14 The great variety of habitats provides considerable number of different animals, probably the richest in Ukraine. Hunting of certain kinds of animals and birds is allowed during the hunting season. You can hunt wild boars and roes but only if you have a license. A 503 square kilometre part of the mountainous territory is apportioned for the Carpathian natural national park. It encompasses the sources of the Prut River and Chornyi Cheremosh River and Mt. Hoverla. The main role of the Park is to assist in the preservation of the landscapes, vegetation and wildlife, thereby creating suitable conditions for rest and tourism while introducing tourists to the Region’s natural resources and monuments of history and culture.

Transport, communication and telecommunication systems The distance from Ivano-Frankovsk to the checkpoints at Ukrainian borders is between 140 and 180 km. The total length of the railway network crossing the region is 1.1 thousands km. In the regional centre, meet railway routs of 6 directions. International trains run between Chernovtsy - Peremysl, Saint Petersburg-Sofia, and Moscow-Kyiv-Sofia. The length of the roads of common use is 4 169 km, including 373 km of roads with the status of state importance. The bus transport serves 442 routs, including 54 municipal, 116 for long distance and 19 international. The region has bus connection with a number of towns in Moldova, Poland, Slovakia, and Czech Republic. International Airport in the region’s centre offers international flights to Russia, USA and charter flights to almost any country of the world. Sixty-eight automatic telephone stations function in the towns of the region and 324 in the countryside. Their total capacity is of more than 180 thousand phone numbers. The following types of means of communication are also provided: e-mail, mobile, paging and trucking connection, Internet, etc.

Zakarpattya region 1

History Zakarpattya is situated on the south of the Ukrainian Carpathians and over the time it was named in different ways: “ Uhorska Rus’”, “ Karpatska Rus’”, “ Karpatska Ukraine”, “ Zakarpatska Ukraine” and since 1946 it has been denominated Zakarpatska oblast’ forming part of the USSR. Originally, it was a binding bridge between the east and the west. The past of Zakarpattya is inseparably linked with the eastern Slavs.

It was an important event in the history of Zakarpattya when it was adjoined in the IX - XI- th centuries to the active influential sphere of the powerful east Slavic state – Kyiv Rus’, which at that time had a high material and spiritual culture. From the end of the X-th century, it was alienated from its main root – the eastern Slavs and until the middle of the XX-th century Zakarpattya was a part of the Hungarian Kingdom, the Austrian Habsburg Monarchy, the Dual Monarchy, the Czechoslovakian Republic, the Hortystka Hungary but “ rusyny ” have never lost their Slavonic essence and the economic and cultural relations with nations on that side of the Carpathians. At the beginning of 1939 on the territory of the region a new state was established – Karpatska Ukraine, Seym elected its first president Avgustyn Voloshyn. On March 15, 1939, troops of Hortystska Hungary occupied the territory and suspended the existence of this state.

1 Sources: The Ukrainian Government, The State Regional Administration of Zakarpattya, The Chamber of Commerce and Industry of Zakarpattya , The Document entitled “The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program”

15 After the Red Army liberated the region in October 1944, Zakarpattya was proclaimed as an independent state – Zakarpatska Ukraine with its government – the National Council. This state existed only until July 1945, the moment of the union with the USSR. Zakarpattya is a real “Ukrainian window to Europe”. This region is situated at the geographic crossroad of borders and this is the reason why the border cooperation is a priority direction.

Political division Zakarpattya is divided into 13 administrative-territorial units: 4 regions in the towns (Uzhgorod, Mukachevo, Khust, Berehovo) and 13 districts.

Authority The leadership of Zakarpattya regional state administration is provided by the President, the first Vice-President and five Vice-Presidents. According to the Law of Ukraine, the Presidents of the local state administrations decide the composition of these administrations. The budget assignments aimed for the support of the corresponding local state administrations are defined by the Presidents of such administrations. The number of offices, departments and other structural subdivisions of the local state administrations as well as other typical provisions are ratified by the Cabinet of Ministers of Ukraine.

Borders Zakarpattya region is situated in the western part of Ukraine. Its area covers 12,8 thousand sq. km. The region borders Lviv and Ivano-Frankovsk oblast’. On the north, west and south of the region runs the frontier with Poland, Slovakia, Hungary, and Romania. The administrative centre is at Uzhgorod.

Population Total number of the population is 1246 thousand people, density of the population – 97.3 people on 1 sq. km. There are 594 settlements (towns, communes) and 765 villages, out of which 164 with 1-499 inhabitants, 286 with 500-1999 inhabitants, 142 with 2000-49999 inhabitants and 2 with more than 50000 inhabitants. The largest cities are Uzhgorod, Mukachevo, Svalyava, Vynohradiv, and Berehove.

Economic potential Industry The forestland of the region facilitates the development of the woodworking (furniture, saw-timber production) and resin (wood charge stock) industries. Additionally, it helps at the development of such spheres as food industry (wine and cognac making, potted goods), light industry (shoes, headdresses, ready-made garments, knit work), mechanical engineering (engineering tools, electric motors, pipelines armature etc.). The segment of food products in the structure of the ware production of national consumption is 45%. Agriculture The basic crops in the agro industrial field are cereals (winter wheat and maize), potatoes and vegetables, developed gardening and viticulture. In 1999, the gross grain yield amounted to 175.8 thousand tons, the sunflower seeds – 1.3 thousand tons, the potatoes – 378.2 thousand tons. The region also produced 76.1 thousand tons of meat, 363.4 thousand tons of milk and 241.9 millions eggs. At the beginning of 1999, there were 1400 farms in the region. Tourism Today, Zakarpattya is considered an ecological and natural area of Ukraine. The geographical structure of the region offers the opportunity of recreation all over the year. Mountain sports, climatic conditions, mineral waters and the curative waters are opportunities for real development of tourism.

16 More than 100 touristic resorts within the region (hotels, sanatoriums, hostels and resorts) were able to accept in 2005 more than two thousand persons at a time. The rural and ecological tourism is developed especially in the mountain areas of Rahiv district. In 2005 there were 63796 tourists registered in Zakarpattya region with 266786 nights of accommodation. In 2005 there were 8436 SME-s registered within the region, with an average number of 6.8 SME-s per one thousand inhabitants.

Culture and traditions The cultural originality of Zakarpattya is characterized by the preserved traditions of rusyniv -Ukrainians, who are ethnically divided into hutsuly, lemky, bojky. Every ethnic group has its peculiar melody kolomyjky , embroidery techniques, and ceremonies. They live in harmony with the culture and traditions of the Hungarians, German, Slovaks, Romanians and other nations. One can find important sources about the history of the region in the chronicles written in Latin, Hungarian, German, Czech, Slovakian, Old Slavonic and other languages. Zakarpattya is the native land of the universally known academician Ihor Hrabar, of painters famous in Europe such as Adalbert Erdel’, Yosyp Bokshaj, Fedor Manaj, Andrij Kotsky, of composers prominent for the Ukrainian culture such as Dezyderij Zador, Stepan Marton, Yevgen Stankovych, of singer Hizepa Tsipola etc.

Nature and ecology The landscape of Zakarpattya is one with mountains and foothills covered with deciduous and coniferous forests and Alpine meadows. The water resources are provided by Tisa, Borzhava, Tereblya - the largest rivers; there are also several lakes. The soil is predominantly brown detritus but there are turf soils as well. The climate is moderately continental; the rainfalls debit reaches 700-1000 mm/sq 2. Minerals: there are deposits of poly-metal, soda alunite, pearlite, zeolite, liparite, rock salt in Solotvynsky deposit, kaolin, 13 carbonate strata deposits have been found (lime, dolomite, marble). About 360 mineral water sources different from the chemical and medical characteristics point of view have been found and investigated.

Transport communication and telecommunication systems The traffic system of Zakarpattya region is relatively advanced. The overall length of roads is more than 3.5 thousand km, 97 % of them being provided with consolidated road surfaces. International traffic corridor runs on the route Lisbon -Trieste (Terst)-Ljubljana-Budapest- Kiev-Volgograd connecting the West and East European roads but there are also railways and river traffic networks aiming to assure the transit load transport also in the Europe-Asia direction. In the frontier area, 19 border crossings and customhouses are situated on a length of 467.3 km. The aeronautical international border crossing is operated on the "Uzghorod airport". The railway system on the given area is 1476 km long. 785 km of them are main railroads and half of them are electrified. As far as the telecommunication infrastructure is concerned, ZAT- „Utel“ covers the Uzghorod town and two operators of mobile phones (UMS and GSM) are the regional centre of the network infrastructure. There are fourteen Internet providers in the region.

17 THE ANALYSIS OF THE COMMON SITUATION

The surface to which the herein strategy refers reunifies areas and communities sharing strong historical and cultural bonds. It is also characterized by many common geographical and ecological features. Thus, the herein strategy has been developed starting from these common characteristics and being supported on the trans-border cooperation programs carried out in this common border area which have aimed at eliminating the social and economical disparities and at bringing the populations of these two neighbouring countries closer. The inhabitants of these separate regions are connected through a common cultural inheritance and by common religious traditions.

POPULATION 1 The surface to which the herein strategy refers includes 3.523.412 inhabitants. Out of this figure, 25% is represented by Romanian citizens and 75% by the Ukrainian ones. The average density of the population is of approximately 82 inhabitants/km 2 in Maramures, 83 inhabitants / km 2 in Satu Mare, 97 inhabitants / km 2 in Zakarpatska and 100 inhabitants / km 2 in Ivano-Frankovsk. These figures give an average of 94 inhabitants /Km², at the level of Romania’s average, above Ukraine’s average and below the European one (EU27). The average figure reveals a slight majority of the rural population (57.9%), in the entire region. The differences are higher in the Ukrainian part; in the Romanian part, in Maramures county there is a majority of the urban population as compared to the rural one. When analysing the average figures, one can state that the structure of the population in the area to which the herein strategy refers is a balanced one; as compared to the European average EU-27, the differences are not major. As concerns the density of the population, the rural areas at the level of EU-27 2 represent 93% of the territory. 20% of the population live in predominantly rural areas and 38% live in significantly rural areas. As concerns the area to which the herein strategy refers, the majority of the population lives in the rural areas in the regions from Ukraine (the average figure up to 60%) and in Satu Mare County (56.7%) and in urban areas in Maramures County (58.8%).

The age structure As concerns the age structure of the population, one can state that, in the largest part of the area to which the herein strategy refers, the ratio of the pre-productive age inhabitants is larger than the ratio of the post-productive age inhabitants (see the Annexes). The only exception is Ivano-Frankovsk where the number of the post-productive population is larger than the pre-productive one. However, the age index of the population in the area to which the herein strategy refers, is relatively high (in average 90.7%, varying from 65.3% in Maramures up to 108.4% in Ivano-Frankovsk), which shows that the ratio of the pre- productive population is larger than the ratio of the post-productive one. The smallest ratio of post- productive population is recorded in Maramures and Satu Mare (11-12%). The highest ratio of pre-productive population is recorded in Zakarpatska and the smallest in Satu Mare and, in total, the ratio of the pre-productive population in the area to which the herein strategy refers is of 19.6%. There is a variation of the productive population between 58.7% (Ivano-Frankovsk) u to almost 71% (Maramures and Satu Mare). As compared to the European averages EU-27 3 one can observe that the ratio of the pre-productive population is higher in the region and the one of the post-productive population is lower. The average figure of the productive population in the region is below the EU-27 one (62.5 % as compared to 67.2%). The largest part of the area to which the herein strategy refers can be characterized through a tendency of population decrease (see Annex 2) caused by the natural losses but there is a high degree of losses due to migration (52.8% of the total losses). High levels of losses due to migration are recorded in Maramureş (82.6% of the total losses) and Zakarpatska (76.7% of the total losses). It is to be mentioned that none of the areas records natural growth, this fact being even further stressed by the high level of

1 The initial source: The document “The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program” 2 COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT - Employment in rural areas: closing the jobs gap, Brussels, 21.12.2006 COM(2006) 857 final 3 Eurostat yearbook 2007

18 migration. The high level of migration is very dangerous considering the fact that most of the inhabitants who are leaving the area are of productive age. It can cause a crisis of the labour force and a significant ageing of the society in the future. At the same time, the reducing of the labour force migration should be completed by measures of supporting the labour force mobility inside the area to which the herein strategy refers.

The nationalities As concerns the nationalities 1, in the Ukrainian part, at the level of Zakarpatska region, the character of the population presents a multi-national composition. As per the data of the 2001 census, representatives of more than 100 nationalities and ethnic groups live in the region. The data reveal the fact the Ukrainians represent the majority in the structure of the population (80.5%), while the Hungarians represent 12.1%, the Romanians – 2.6% and the Russians – 2.5%. As concerns the languages, the structure is homogenous. 81% of the population in the region has the Ukrainian as mother language, 12.7% the Hungarian language and 2.6% the Romanian one. At the level of Ivano-Frankovsk region, one can find the same multi-national structure of the population. As reveals the data of the same census, in the region there are more than 90 nationalities or ethnic groups. In the structure of the population, 97.5% are Ukrainian. The mother language is the official language for 97.8% of the population in the region, while 1.8% has the Russian language as mother language. In the Romanian area subject to the herein strategy, at the level of Maramureş county the population structure nationality wise, as per the 2002 population census 2 was as follows: Romanians 82.02 %, Hungarians 9.07 % and Ukrainians 6.67 %. As concerns the structure of the population from the mother language point of view, 83.42 % of the persons living in this county have the Romanian language as the mother language, 8.80 % the Hungarian language and 6.56 % the Ukrainian one. At the level of Satu Mare County, the population structure nationality wise, according to the 2002 population census is as follows: Romanians 58.83 % and Hungarians 35.19 %. As concerns the structure of the population from the mother language point of view, 59.4 % of the people living in this county have the Romanian language as the mother language and 39.05 % the Hungarian language. As it can be observed, in the Ukrainian part, the largest amount of the population is of Ukrainian nationality 80.5%, respectively 97.5%. The important minorities are the Hungarian, the Romanian and the Russian ones, the weight of the minorities being higher in Zakarpatska. The situation concerning the majorities is similar in the Romanian part, the population of Romanian nationality representing, in the two counties, 82.02%, respectively 58.4% of the total population. However, as far as the minorities are concerned, the regions differ significantly from the value point of view. Three of the four regions part of the herein strategy are inhabited to a larger extent by minorities, namely: Zakarpatska (Hungarians 12.1 %, Romanians 2.6%), Maramureş (Hungarians 9.07 % and Ukrainians 6.67 %) but the most clearest case is the one of Satu Mare County where the difference between the Romanians who are majority and the most important minority is of only 24 % (Romanians 58.83 % and Hungarians 35.19 %). The linguistic barriers can affect the trans-border contacts and economic cooperation. Sometimes, for communicating, the foreign languages are used (most frequently the English language).

The structure of the human settlements The main urban centres of the region subject to the herein strategy are Satu Mare and Baia-Mare in the Romanian part and Uzhgorod and Ivano-Frankovsk in the Ukrainian part. The main cities play an important role at national level and have a trans-border impact regarding the consumption, the culture, the traffic and the labour force occupation. At regional level, there are several centres. These cities supply different services to the micro- regions. However, the level of the services supplied is a reduced one and the institutional and economic environments are poorer than in the big West European cities. The small towns did not go through the same development rhythm and they got the status of representative town at county level only in the past 10 years. In the 90’s the greatest part of these towns lost their economical basis; presently, the labour force market depends on the economical conditions

1 All-Ukrainian Population Census 2001

19 offered by the big cities or, in the future, by the existence of the local SME-s. Many of these places have a potential for tourism development, the mountains and the thermal springs offering extraordinary opportunities for the tourism sector. The small places in the trans-border region (500 – 2000 inhabitants) are typical human settlements for the trans-border region: more than 73% of the total number of settlements has less than 2000 inhabitants. Many of them are located in peripheral areas, in mountains or along the border. These settlements have gradually lost a part of their population and they are marked by poverty. Their economic, social and occupational situation is a problematic one. The region subject to the herein strategy comes under the tendencies existing at the level of the European Union. Over a 15 years period there have not been any major modifications in the structure of the rural/urban population in any of the four counties /oblast. However, given the pressure of an urban life style, two large scale processes of demographic modifications are going on in this area: a tendency of long term urbanization (the extraction of the population and of some economic activities from the more isolated rural areas towards the urban areas and the more accessible rural areas) and a reverse tendency of outgoing from the urban areas towards the more accessible rural areas (this tendency took advantage of the transport and ITC infrastructure development). As a result, parts of the rural area record economic growth and improvement of the infrastructure up to the level of the urban ones. In opposition, the other rural areas, mainly the isolated ones, are “emptied” by population and by the economic activity. As concerns the age structure, the rural places have a stronger ageing tendency than the urban places. It is to be mentioned the existence of an increased migration of the labour force from the region, both from the urban areas but mainly from the rural ones. There are no clear statistical data concerning such migration, the average estimations being made for tens of thousands persons.

As a conclusion, one can state that the population ageing tendency and the increased ratio of the rural population, worsened by a general peripheral situation of the regions subject to the herein strategy, at national level, represent important obstacles in the way of the economical development while the existence of the common cultural inheritance and the traditions of a peaceful cooperation of the different nationalities offer, at the same time, unique opportunities.

NATURE AND ENVIRONMENT 1 Some reduced parts of the region subject to the herein strategy are plain ones (parts of Ivano- Frankovsk, Zakarpatska and Satu Mare), while the hills and the mountains cover the main area of the region. At the beginning of the 90’s, the situation of the surrounding environment improved because of the decrease of the industrial activities that damaged the environment largely. The water reserves of the described territory belong to Tisa basin. The floods are a real danger for the population in the region. It has happened several times in the last year that the population could not be warned about the danger of floods also due, among other reasons, to the non-durable use of the main forest resources in the respective areas. Thus, the floods control remains one of the major issues in the border region Romania – Ukraine. In Romania, besides the floods, the soil sliding is considered the main reason for the emergencies. Many of the inhabited territories are in danger due to the powerful fluvial erosions. The ongoing mining activities, the abandoned mines as well as the preserved exploitations represent another important threat for the water quality ay both local and regional level. The area subject to the herein strategy possess a wide biodiversity, with well-preserved ecosystems. There are areas protected due to their natural and cultural values on different levels. There are several natural parks in the region. The Carpathians provide a unique ecosystem, valuable at European level. Several systems of natural parks have been created for the purpose of preserving and protecting the landscapes. The Carpathians host areas of pre-historic forests famous in Europe, unique alpine areas of

20 flora and fauna. Many protected areas and important areas populated by birds as well as sites of Communitarian interest are aimed for protecting the plants, the animals and their habitats. Moreover, the relative isolation of the areas in the proximity of the borders provides favourable conditions for various rare and vulnerable species. Until now, the only habitats for these plants and animals that are going to disappear are those where the movement of goods and population is subject to restrictions (“the border area effect”). The use of the land for agricultural purposes characterizes the entire surface of the region. The present perspectives and scenarios for the development of the agricultural sector are going to have an important impact on the quality of the natural environment and, thus, over the area attraction in general.

As a conclusion, one can state that the regions owns unique natural resources which exploitation can contribute considerably to the economic development of the area, mainly through the development of the tourism sector. However, the systems vulnerability requires a careful approach and a strict application of the principles of durability.

THE ECONOMIC STRUCTURE 1 PIB 2 (GIP) In general, the economic development in the region is a critical one. The statistics indicate that the GIP (gross internal product) per capita in 2004 (date on which there were data available for all the regions) in each county / oblast of the region was below the national average of each country and the GIP / capita is below 14% of the EU average. The highest level of GIP / capita was recorded in Satu Mare, 13.8% of the EU average. An extremely poor level is recorded in the regions from Ukraine, with an average of only 3.2% of the EU average (Ivano-Frankovsk), respectively 2.6% (Zakarpatska). The contribution of Maramureş and Satu Mare Counties to the national GIP amounts to 3.3%. The contribution of Zakarpatska and Ivano- Frankovsk to the national GIP amounts to 3.6%. The economic structure differs from one country to another. The laying out of the value added by the market sectors to the GIP, at national level, at the level of year 2005 3, indicate the fact that the services sector has the most important contribution to the GIP of the region, from 57% (in the Romanian area) to 55% (in the Ukrainian area). The value added by the industrial sector varies from 32% from the national GIP, in the case of Ukraine, to 35% of the national GIP, in the case of Romania. The data follow the same structure also when referring to the GIP on branches, in the case of Maramureş and Satu Mare counties, where data are available: Maramureş – 25.56% of the GIP for industry, 13.18 % of the GIP for agriculture, 5% of the GIP for constructions, 56.26% of the GIP for services; Satu Mare – 27.8 of the GIP for industry, 11.4% of the GIP for agriculture, 6.1% of the GIP for constructions and 54.7% of the GIP for services.

The labour force market The situation of the labour force occupation in the area of the region is not a balanced one, the occupational degree being higher in the big cities of the region. It is to be mentioned that there is a big difference between the hired population and the occupied one. According to the Romanian Statistic Yearbook for 2006, “the occupied population includes (…) all the persons of 15 years and above who carried out an economic activity of goods or services production for at least one hour in the reference period (…) for the purpose of obtaining an income in the form of salary, payment in kind or other benefits ”4. As the agricultural activities are, in general, activities of subsistence, this analysis considers the structure of the occupied population, being a more comprehensive one, and not the one of the employees. As per the data in the Eurostat Yearbook 2008 5 more than a quarter (29.4 %) of the small agricultural farms at the level of EU-27 and more than 1/5 of the labour force in agriculture were located in Romania. With an occupation degree in agriculture of 40.1% (Maramureş), respectively 41.6% (Satu Mare), as compared to an average of 6.14% at the level of EU-27 in 2005, the situation is an unbalanced one. The

1 The initial source: The document “The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program” 2 Source: State Statistics Committee of Ukraine (the exchange rate used 1 EUR = 7,62 UAH), The National Romanian Institute of Statistics (the exchange rate used 1 EUR = 3,3395 RON) 3 Source: The World Bank 4 Romania’s Statistic Yearbook 2006 5 Source: Eurostat yearbook 2007

21 situation is the same in the Ukraine, with a degree of labour force occupation in agriculture of 36.5% in Zakarpatska, respectively 36.0% in Ivano-Frankovsk. As concerns the population in the rural areas, the volume of the population in these areas is not an issue as it frames within the levels recorded at the level of EU-27 1, where 20% of the population lives in predominantly rural areas and 38% lives in significantly rural areas. The main aspect that must be underlined is the very high degree of occupation in agriculture that reveals both a rural area poor from the point of view of the tertiary and industrial sectors as well as a labour force without the adequate education to take over a possible development of such sectors. As a consequence of the big number of persons occupied in agriculture, the occupational structure in the four counties / oblast from Romania and Ukraine is unbalanced also from the point of view of the population occupied in industry: 24.1% in Maramureş, 25.3% in Satu Mare, 14.6% in Zakarpatska and 17.4% in Ivano-Frankovsk and in services: 32.6% in Maramureş, 29.5% in Satu Mare, 42.3% in Zakarpatska and 41.0% in Ivano-Frankovsk. The European EU-27 2 averages indicate ~ 22% population occupied in industry and ~ 68% population occupied in services. The only exceptions are Maramureş and Satu Mare, which, from the point of view of the degree of occupation in industry, are close to the European averages. The rate of unemployment increased in the transition period. Most industries have undergone restructuring processes and the mono-industrial areas faced the need to re-orientate. Consequently, the unemployment increased rapidly. The unemployment rate in the areas subject to the herein strategy varies from 3.4% in Satu Mare and 4.5% in Maramureş, to 8.2% in Zakarpatska and 9.8% in Ivano-Frankovsk. There are differences in the unemployment rate between the regions in the two countries. The two Romanian counties are below the national average, as compared to the reference year 2005 (5.9% 3 or, another average, 7.2% 4), as well as below the EU-27 one (the average unemployment rate at the level of EU-27, in 2005 amounted to 8.9%). Contrary, in the two Ukrainian oblasts 5, Zakarpatska and Ivano-Frankovsk, the unemployment rate exceeds both the national one and the EU-27 one (7.2% in Ukraine, in 2005, respectively 8.9% at the level of EU-27).

The economic structure and the innovation The regions subject to the herein strategy have an average share of contribution to the national GIP for each country separately (1.8% Maramureş and 1.5% Satu Mare to Romania’s GIP in 2004, respectively 1.5% Zakarpatska and 2.1% Ivano-Frankovsk to Ukraine’s GIP in 2004). There are significant differences as far as the number of SME-s per / 1000 inhabitants is concerned. The highest number of SME-s per / 1000 inhabitants is recorded in the Romanian part (Maramureş 17.3 SME-s/1000 inhabitants, respectively Satu Mare 18.4 SME-s/1000 inhabitants, in 2005) and the smallest number is recorded in Ukraine (Zakarpatska 6.8 SME-s/1000 inhabitants, respectively Ivano-Frankovsk 5.2 SME-s/1000 inhabitants, in 2005). In the Romanian part, the density of SME-s was situated both below the country average in 2005 (18.9 SME- s/1000 inhabitants 6), and much below the EU-27 average (39.3 SME-s/1000 inhabitants 7). In the Ukrainian part, the density of SME-s was situated above the country average in Zakarpatska and below the country average in Ivano-Frankovsk in 2005 (6.3 SME-s/1000 inhabitants 8 in Ukraine), and much below the EU-27 average. Concerning the number of employees in the SME-s as compared to the total number of employees, both Romania and Ukraine record differences at national level as compared to the EU-27 averages. Thus, compared to an EU-27 9 average of 66.7% employees in the SME-s sector out of the total number of employees, in Romania the average is 58.2%, and in Ukraine of only 19.6%. At the same time, the contribution of the SME-s sector to the value added was 56.9% at the level of EU-27 and of only 44.5% in Romania. In Ukraine 10 , out of the total volumes sold in 2005, only 5.5% were realized by the SME-s sector.

1 COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT - Employment in rural areas: closing the jobs gap, Brussels, 21.12.2006 COM(2006) 857 final 2 Personal calculations made based on Eurostat data on Employment and unemployment (Labour Force Survey) 3 Romania’s Statistic Yearbook 2006 4 Eurostat yearbook 2007 5 State Statistics Committee of Ukraine 6 Eurostat – Statistics in focus 31/2008 - Enterprises by size class - overview of SMEs in the EU 7 Eurostat – Statistics in focus 31/2008 - Enterprises by size class - overview of SMEs in the EU 8 State Statistics Committee of Ukraine 9 Eurostat – European Business 10 State Statistics Committee of Ukraine

22 Even if it is situated below the European or the national averages, the SME-s sector in the four counties / oblast in the region to which the herein strategy refer have an important role, as the data above reveal, concerning the labour force occupation, the income at regional and national level and the economic development. However, there are a series of barriers in the development of these units and, implicitly, barriers in reducing the deficiencies of the economic competitiveness. Unfortunately, there are no studies or analysis available for this region concerning the needs or the obstacle faced by the SME-s in their activity or development. The only elements that could ground the analysis in this stage refer to the interviews with the representatives of the business environment and the ones of the local public administrations involved in all the stages of the strategy development, the studies made by the European Union on representative samples of SME-s or strategies already framed for different sectors 1. Re-engineering has been the key word in this period in the entire region. Starting from the big, state owned companies, developed on a mono-industrial, geo-economical scheme, the SME-s set up in the region, either benefiting from the experience gained or even from the specialists of the former state owned companies, had to adopt in their production process last generation technologies in order to cope with the competitors or in order to be able to develop themselves. This is the case, for instance, of the food industry or of the companies producing machines and equipments. Hence, the relatively increased weight of the small and medium sized companies can mean a modern production basis, prepared for innovation and development. The poor level of technologization or the use of some outrun technologies and equipments reduce the productivity in almost all the economic sectors of the region. This is due mainly to the lack of the financial resources that also means the impossibility to accede the external financing sources. The SME-s access to capital is poor and, implicitly, the access to new technologies and the potential to introduce innovative products is also low. The development of the business infrastructure, including the one in the innovation field as well as the support services are in an incipient stage, the access of the SME-s to specialized consultancy being extremely limited. The managerial culture is still in a stage of “attempts”. The capacities are limited in the sense of various types of management and the integration of a strategic thinking. The lack of information and of managerial culture determines most of the companies to adopt a strategy based on reducing the costs rather than introducing innovative products and increasing the productivity. It is also to be noticed that these deficiencies existing in the managerial culture superpose both an increased opposition to organizational change as well as a poor level of delegating the responsibilities to specialized managerial departments (financial, technical, human resources etc.). Moreover, just a simple policy of managerial effectiveness can no longer ensure long-term competitive advantages just as a “process benchmarking” mechanism cannot be accomplished by itself. Facing the increase of the salary costs, the energetic costs, the lack of qualified personnel, the major competition from the multi-national companies or from the producers operating in the markets with cheaper labour force, the companies need to undergo radical changes. The period in which the region was attractive for its cheap labour force, is over. Dealing with these challenges, the companies must change the manner of approaching their own development strategies. It is necessary to shift from the entrepreneurial- managerial cumulated stage to delegating the responsibilities to specialized managers, to creating strong local brands and trademarks, to integrated actions of debate and information on innovation in order to underline as much as possible its importance in developing competitive advantages. Even if one can invoke that the region lacks the specialized personnel capable to generate either technical or organizational innovation, thus blocking the development, the reduced management mobility stresses even more this deficiency. The mechanisms of support, development and promotion of the SME-s in the area (research and technologic centres, chambers of commerce, inter-company structures etc.), entities meant to provide services to the business environment, although present, they face difficulties in developing some processes meant to develop the innovation and to increase the competitiveness. In most of the cases, the cooperation between such entities, an important condition for the development and implementation of projects with relevance and with a real impact, is reduced or limited to actions with shallow effects. The reasons are multiple: reduced experience, lack of qualified personnel, difficulties of financing and

1 The Regional Strategy for the Innovation of the North-West Development Region (The North Transylvania)

23 implementing, poor business infrastructure, problems of image and communication, the difficulty to exceed a “ modus operandi ” well known. Besides, once they offer services to the business environment in the region, the characteristics of this business environment affect directly their activity. Even when the services offered by these entities are of the best quality, the business environment must be prepared to take them over and put them in practice. At the same time, there are some deficiencies in the technology transfer from universities, research centres and institutes towards the business environment: the poor cooperation with the business environment; the lack of requests coming from the companies; the reduced number of partnerships for research and innovation projects; a reduced visibility of the institutional relationships between the economic environment and the research centres; the low number of intermediary structures or the poor cooperation with the local public authorities. Another identified issue is that most of the SME-s develops their businesses isolated from the other market players. A study performed for Romania 1 indicates the fact that only one third of the SME-s has become affiliated members in an association from the category of extra-company, “business organizations”. The association spirit is increased with the larger companies. Thus, more than half of the middle sized companies (54.9%) are members in the generically named “business organizations” while only 25.1% of the micro-companies participate in such associations. In other words, the isolation of the SME-s is more striking at the small sized entities, this making them even more vulnerable in front of the external players; they also lack information sources and experience sharing. Moreover, the SME-s that were not part of an association group on the date the study was made, had no positive or clearly defined prognosis. 56.5% of the interviewed companies claimed that they did not intend to become member in an associative group while for more than a quarter of the SME-s (28.0%) the enrolling in an association was a decision still under reflection. Only 12.8% were decided to become members in the near future. The study also indicated that the micro-companies were more determined to choose the statute of member in an associative form. As concerns the SME-s expectations as effect of their affiliation and participation within a business organization, it is to be mentioned that it is more about a bunch of benefits and less about singular or isolated benefits. The most important set of benefits brings together 96.7% of the SME-s and this set includes “the exchange of information and experience” and “the possibility to establish communication relationships with other partners”. Following the association, most of the SME-s expect generic benefits. An important number of SME-s, respectively 33.8%, seek to obtain even more tangible benefits, concretized in “services” while 22.5% seek “the need for visibility and recognition in the community” where they operate. It is relevant to mention at this point the fact that, as far as the last two options are concerned, “services” and “visibility”, the study does not analyse the forms of inter-company associations, the umbrella type, associations meant exactly for such purposes, in the interest of the own members / associates. There are no data / studies known, neither for Ukraine, nor for Romania, concerning the setting u of SME-s namely for constituting inter-company associations (credit alliances, logistic centres, joint supply companies, supplier chains etc.). The observer for the European 2 SME-s can supply, in his turn, important information regarding he average tendencies at European level. Even if Ukraine is not subject to monitoring, we consider that the results can be applied, for analysis purpose, in this region as well. The structure of the turnover in the new and old member states indicate significant differences. The number of SME-s from NMS12 2 that recorded a turnover smaller than 150,000 EUR is two times bigger as compared to the SME-s from the states in the EU-15 3 group. In 2005, in Romania, 59% of the SME-s was in this category. As concerns the constraints in carrying out and developing a business, the demand, defined as “buying power” is the most important constraint of the SME-s, especially of the micro-enterprises (more than half of the micro-enterprises identified this as a constraint). Besides the issue of demand, there are other two issues that affect most of the SME-s at the level of the European Union: the administrative and legislative regulations (36% of the SME-s claim to have faced issues from this point of view in the last two years) and the issue of availability (35% of the SME-s) and the costs with the qualified labour force (33% of

1 “The SME-s Association Spirit”– The National Agency for Small, Medium-Sized Enterprises and the Co-operative System (Romania) 2 NMS12 = 12 New Member States (Bulgaria, Cyprus, The Check Republic, Estonia, Leetonia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia, Hungary) 3 EU-15 = Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Great Britain, Holland, Portugal, Spain, Sweden

24 the SME-s). Other barriers indicated refer to the difficulties associated to the limited access to financing and the lack of qualitative management. In 2006, the SME-s in the European Union dedicated an average of 69 person-day units for fulfilling the administrative formalities. An average figure of 8% of the total labour time in the SME-s is dedicated for this purpose. As per the revenues from exports (including here the intra-communitarian deliveries), a big number of the SME-s in the European Union do not export at all. The EU-27 average of the SME-s out of the total SME-s that record revenues from export sales is of 8%. Romania was below the EU-27 average, with 7%. The main constraints identified by the SME-s in carrying out export activities are as follows: the insufficient knowledge about the foreign sales markets; the decrease of prices competitiveness due to the import tariffs; the differences between the national regulations within the Union; deficiencies in the managerial resources; the regulations on the non-EU markets; the nature of the products and services offered which don’t give the possibility to identify an external market; the existence of the communication barriers (the language). As far as the external partnership are concerned, an average of 5.2% of the SME-s in the European Union (EU-27) obtained revenues from external partnerships, either through working points, branches, affiliates, or joint-ventures. From this point of view, Romania was below the EU-27 average, with 3.3% SME- s, but above NMS12 average, at 2.9%. The destination of the external partnerships concluded by the SME-s in the European Union is the European Union itself. 77% of the working points, branches, affiliates, or joint ventures set by the SME-s in the European Union are situated on the EU-27 territory, while the percentage of the SME-s exporting on the EU-27 territory is of 72% of the total number of SME-s. Only 4% of the SME-s declared that they export to Europe, in other states than the ones members of EU-27. The annual marketing expenses of the European SME-s had a weight of 3.6% of the turnover. Averagely speaking, the SME-s in the EU-15 member states allocated 3.7% of the turnover to the promotion budget while the EU-12 member states only 3.0%. In absolute values, the SME-s in the EU allocated approximately 57,000 EUR/year for the marketing budgets. As far as the commercial exchanges are concerned, as per the data supplied by the Romanian Ministry of External Affairs 1 the economical relationships between Romania and Ukraine were as follows: Value (mil. USD) 2005 2006 2007 Total, out of which: 692,1 1131,9 1526,5 Export 167,5 424,3 741,5 Import 524,6 707,6 784,9 Balance - 357,1 - 283,3 - 43,4 On December 31, 2007, there were 306 Romanian – Ukrainian companies registered in Romania, the value of the foreign capital invested amounting to 8.64 million US dollars, Ukraine occupying position 54. Similarly, as per the information provided by the Romanian Embassy in Kiev 2, on 30.11.2006, the volume of the commercial exchanges between Romania and Ukraine amounted to 978.8 million US dollars, out of which from export activities 370.3 million US dollars and from import activities 608.5 million US dollars. The balance of the commercial statement was – 238.2 million US dollars. The structure of the commercial exchanges was as follows: Chapter The Category of Goods Thousand$ Weight Thousand$ Weight EXPORT % IMPORT % TOTAL, out of which: 370299 100 608501 100 1 Living animals and products of the animal 21 0,005 33 0,005 regnum 2 Products of the vegetal regnum 1525 0,41 536 0,09 4 Food products, beverages, tobacco 957 0,26 1078 0,18 5 Mineral products 156620 42,3 222566 36,57 6 Products from the chemical industry and 20447 5,52 84775 13,93 other associated ones

1 The Romanian Ministry of External Affairs: http://www.mae.ro/index.php?unde=doc&id=5750&idlnk=1&cat=3 2 Romania’s Embassy in Kiev: http://kiev.mae.ro/index.php?lang=ro&id=24163

25 7 Plastics and rubber articles 20675 5,58 1823 0,3 8 Dressed / undressed skins, furs and the 1796 0,48 74 0,01 associated wares 9 Wood, charcoal, crib, basketry works 7696 2,08 17193 2,82 10 Wood paste, paper, cardboard and the 1912 0,52 1634 0,27 associated wares 11 Textiles and the associated wares 4419 1,2 1200 0,2 12 Footwear, headwear, umbrellas 2191 0,6 1520 0,25 13 Stone, plaster, cement, glass, ceramic 903 0,24 11816 1,94 wares 15 Common metals and metallic wares 19518 5,27 250590 41,18 16 Machines, appliances, electrical 56991 15,39 12771 2,1 equipments 17 Vehicles, airships, ships and equipments 59534 16,07 155 0,03 18 Optic, photo and measurement appliances 107 0,03 230 0,04 20 Furniture, home and sport articles 5796 1,56 491 0,08 21 Other goods 190 0,05 11 -

Although the export and import activities between the two countries are increased in the border areas as compared to the data at national level, they remain insignificant. The same goes for the direct investments. The level of economical development in the border areas is rather low. As stated before, the development of the SME-s sector could bring about the acceleration of the economical development in the area. The border economic structure is diversified in the four regions from the Romanian and Ukrainian art. As per the above presented data, a great art of the population is occupied in the agricultural sector (of a majority in the Romanian part and secondary, after services, in the Ukrainian art), while the main sector wise VAB 1 at national level, in both countries, is that of the services sector. The economic structure in the Romanian area is agricultural - industrial. The economy structure in Maramures County is dominated by the services sector, which produces the biggest part of the county internal gross product - 56.26%, while the industrial sector holds 25.56% of the county internal gross product. In Satu Mare County, agriculture plays a major role from the occupation point of view: 41.6%. The largest part of the county internal gross product - 54.7% originates from services, while the industrial sector holds 27.80% of the county internal gross product. The Ukrainian border area has a diversified economical specialization. The main sector wise VAB 2 at national level in Ukraine, applicable for Zakarpatska and Ivano-Frankovsk is that of the services sector (57%), followed by industry (32%) and agriculture (10%).

Tourism The natural landscapes are the main touristic attractions in the border area. Each art of the regions subject to the herein strategy has touristic destinations in the mountain areas (the Carpathians). The protected areas situated in the Romanian part, The “Muntii Rodna” Natural Park (46,399 ha) and “Munţii Maramureş” National Park (148,850 ha) are considered as attractive touristic destinations. Moreover, there is an important cultural inheritance. The Romanian wooden churches from Maramureş have been included by UNESCO in 1999 in the world cultural patrimony. The area to which the herein strategy refers is rich in resources of mineral and thermal waters (for instance, Solotvyno Mines). The natural landscapes offered by the mountains, the rivers, the forests, the caves, the rich biodiversity, the cultural inheritance and the health centres located in the region offer good premises for the development of the different types of tourism, for instance the ecotourism, the thermal tourism, the rural tourism etc. As concerns the accommodation capacities, more than 70% of the total accommodation facilities existing in the region are located in Ukraine, out of which Ivano-Frankovsk holds more than 60% of the total (12500 of approximately 19000 accommodation facilities). As compared to Ivano-Frankovsk, the

1 VAB = Gross Added Value 2 VAB = Gross Added Value

26 other regions have a small number of accommodation facilities (between 2005 in Zakarpatska and 2873 in Maramureş). The number of accommodation nights / tourist, indicate a use below the existing capacities. In the regions from Romania, the average is below the national one, respectively 2.3 in Maramures and 1.6 in Satu Mare, as compared to an average of 3.2 at national level). Ukraine records the highest values (5.6 in Ivano- Frankovsk, respectively 4.2 in Zakarpatska, much above Ukraine’s average of 1.1 in 2005). The lack of potential utilization in some of the parts is partially due, to a poor promotion of the border area but also to a critical system of touristic information. As the development of the tourism sector has an important role in decreasing the migration by creating new labour places it is very important to meet the tourists’ expectations and to attract a higher number of visitors in the area.

As a conclusion, one can state that the main features of the economical structures are un-balanced, the great differences regarding the GIP being the first to be underlined in this respect. The lack of innovation, the poor development of the SME’s sector, the lack of some impact studies, the deficiencies in the managerial culture, the unemployment in many fields of activity as well as the great weight of agriculture in general represent serious blockages in the development process while the dynamics of the SME-s sector, the existence of a high touristic potential, the existence of some developed cities and of the labour force can be the basis for a gradual improvement of the economic performances in the region.

THE INFRASTRUCTURE 1 The Transport Because of the geographical location of the border area, its degree of accessibility depends on the number of roads and on their quality. The roads are relatively well developed but this is not the case of the main and secondary roads. There are not any qualitative transport connections (highways or express roads). The roads do not meet the European requirements in any art of the strategy area. The road transport conditions are inadequate especially in the mountain areas and in the winter season. The railway transport is well developed in the big cities but the population in many small settlements do not benefit from the railway connections. At the Romanian – Ukrainian border the railway transport connections can be characterized through the existence of two railway systems with different rail gauge. In the Romanian part of the border, Satu-Mare is connected to Ukraine through the European road E81, and in Maramureş, the secondary roads allow the access to Ukraine through the European roads E81 and E85. Maramureş and Satu-Mare have access to Ukraine through secondary railways. The air transport in the region is based on the international airports from Baia Mare, Satu-Mare, Uzhgorod and Ivano-Frankovsk. The number of flights and passengers depends upon the regional traffic.

The border line As per the data supplied by the Romanian Border Police 2, on a length of approximately 250 km there existed 4 customs points: 1. VALEA VIŞEULUI – DILOVE – railway transport of passengers and goods, 2. CÂMPULUNG la TISA – TERESVA - railway transport of passengers and goods; 3. SIGHETU MARMAŢIEI – SOLOTVINO - pedestrians, road transport of passengers and goods; 4. HALMEU-DIAKOVO – road, goods and railway transport. As per the same source, in august 2008 only two of the four customs points were operational: SIGHETU MARMAŢIEI – SOLOTVINO (Maramureş-Zakarpatska), respectively HALMEU-DIAKOVO (Satu Mare- Zakarpatska). VALEA VIŞEULUI – DILOVE and CÂMPULUNG la TISA – TERESVA were declared un-operational. From the infrastructure point of view, the density of the customs points is a very poor one as there exist only one customs point every 62 km. However, it is to be mentioned that approximately 100 km of the 250 km of border line are situated in a mountain area difficult to access, plus the natural border of Tisa river on a length of more than 60 km. If we analyse the density from the operability point of view, the

27 density decreases to one customs point every 125 km as the customs points VALEA VIŞEULUI – DILOVE and CÂMPULUNG la TISA – TERESVA are un-operational. The technical conditions and the available capacities for performing the customs formalities are inadequate for a good administration of the traffic volume. The long queues and the expecting hours are significant for the development of economy and tourism in the strategy area. The visas regime, still in force for Ukraine, represents an extra burden for the Ukrainian part.

The Environment Infrastructure The most important factors affecting the environment condition in the strategy area are as follows: the inadequate water management (the insufficient capacity of the sewerage system and of the wastewaters treatment stations); the road transport; the industrial emissions (thermal centrals). In the Romanian part, almost 80% of the urban population has access to the public networks of sewerage and drinkable water. However, the situation in the rural areas is rather critical. The system of public utilities is critical. Thus, the situation of the public services in the rural areas (drinkable water supply (average accessibility 20%) and sewerage facilities) is as follows: in Satu-Mare – 2.4% and in Maramures 5.6%. As long as there are factors that still damage the environment (the waste produced by houses and institutions, the deforesting and the polluting activities), investments are required for preserving the ecosystem. In Zakarpatska and Ivano-Frankovsk, only the towns and a few communes have sewerage and waste waters treatment systems. In the rural settlements, the important common issue is that of the lack of such systems. In the field of the drinkable water supply, the basic task is that of protecting the resources and the building of the public water supply system. In Zakarpatska the industrial pollution is decreasing but the pollution with the communal waste waters is significant. The phreatic waters are strongly contaminated, which represents a danger for the touristic potential. The waste management is still an issue on wide areas of the region. The small villages along the border are in the worst situation from the waste management point of view. Although the implementation of the waste recycling systems brings a positive tendency, the issue is still unresolved, as there remains the processing issue.

The Telecommunication Networks In the last decade, the situation of the telecommunication system improved very fast in the strategy area. Thus, the use of the mobile phones and the Internet services grew up considerably. Averagely speaking, in 2005, there were 160 subscribers / 1000 inhabitants with fixed telephone lines in the Romanian part of the strategy area (155 in Satu Mare and 163 in Maramureş). The figure is close in the Ukrainian part as well, at least as far as Ivano-Frankovsk is concerned, with an average figure of 167. The statistics indicated in 2005 4-5 subscribers / 100 inhabitants in the Romanian part of the strategy area, below the national average of approximately 7 subscribers / 100 inhabitants. In the Ukrainian part, the Internet access based on subscription is very low (less than 1 person / 100 inhabitants). Despite the statistics, the studies and analysis indicate growing indicators, the data pointing out the Internet users being relevant in this respect. Thus, the analysis entitled “The Indicators of the Informational Society” 1 show the following tendencies for Romania:

Indicator 2005 2006 Number of fixed telephone lines / 1000 inhabitants 203,1 194,8 Number of mobile telephone subscribers / 1000 inhabitants 617,6 806,2 Number of Internet users / 1000 inhabitants 207,6 323,6 Number of broadband Internet users / 1000 inhabitants 35 82

Another important element is the distribution of the indicators corresponding to this analysis for the North-West development area, as compared to the national development level, for 2006:

1 The Romanian Statistics Institute - http://www.insse.ro/cms/rw/resource/ind_soc_inf.pdf

28 Region The weight of the The number of PC-s The weight of the The number of Internet connected for every 100 Internet connected Internet connected enterprises in the total employees in the PC-s in the total PC-s for every 100 number of enterprises region number of PC-s in employees in the in the region the region region - % - - % - North–West 24,4 23,7 70,6 16,7 Total 25,6 25,4 66,3 16,9

The Ukrainian statistics 1 show the same tendency on short term:

As of April 1, 2007 As of July 1, 2007 As of October 1, 2007 As of January 1, 2008 total including total including total including total including home home home home Mobile subscribers 50952,4 28227,9 50946 28082,8 53029,2 29212,6 55240,4 30844,5 cellular 50935,8 28225,9 50928,8 28079,7 53012,1 29210,6 55222,2 30842,5 trucking 9,4 0 10,2 1,1 10,1 0 11,3 0 paging 7,2 2 7 2 7 2 6,9 2 Altai star-type telephone 4,2 1,7 4,3 1,8 2,6 1,6 2,7 1,6 subscribers Cable TV subscribers 2969,6 2957,6 3004,7 2993 3133,7 3126,1 3237,1 3215,2 Internet subscribers 1057 722,2 1124,7 780 1227,1 869,8 1374,6 997,2 As a conclusion, one can state that, while the big traffic values on the “East-West” direction can initiate a certain economical development, the most important obstacle in the way of a better cooperation is the overloading and the poor development of the transport infrastructure, mainly the serious traffic blockages at the border. At the same time, all types of environment infrastructure are backward as compared to the European standards. Both above-mentioned factors are important from the point of view of the regional plans concerning the economic development.

EDUCATION AND RESEARCH 2 As concerns the level of education, the majority of the strategy area population graduated the secondary education. Approximately 7% of the inhabitants are university graduates. The most important university centres in the Ukrainian art are located in Ivano-Frankovsk, Mukachevo and Uzhgorod. In the Romanian part, the high education is well developed, the following universities existing here: “Universitatea de Vest Vasile Goldis”, “Universitatea Babeş-Bolyai” from Cluj Napoca, Satu Mare Branch, “Universitatea Tehnică” from Cluj Napoca, Satu Mare Branch and “Academia Comercială şi Universitatea Spiru Haret” in Satu-Mare County and “Universitatea de Nord”, “Vasile Goldis” and “Bogdan Vodă” Universities in Maramures County. In 2005, the budget of the expenses with the research and development activities was relatively low in the Romanian part of the strategy, especially in Maramureş County. This county was on the last place in the North-West region of Romania, with a budget of expenses for the research and development activities of only 264 thousand EUR. In comparison, the total R&D expenses in the Ukrainian part were 18 times higher only for Ivano-Frankovsk. The highest number of persons working in this field is recorded also in Ukraine, in Ivano-Frankovsk (2102 persons), followed by Zakarpatska (988 persons). The number of the employees in the research and development field in the Romanian art of the strategy was of 184 persons, equally distributed in the two counties (92 persons in Maramureş, 92 persons in Satu Mare) As a conclusion, one can state that, although the existing innovation capacities are reduced, the existence of some universities and projects at regional level can be the basis for a gradual improvement of the performances in this sector. The concordance between the results of the educational system and the economical demands is far from being perfect; hence, the improvement of the correlation between

1 State Statistics Committee of Ukraine 2 The initial source: The document “The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program”

29 the industry requirements and the results of the educational system can bring about effective benefits for the regional economy.

THE COHERENCE WITH OTHER EXISTING PROGRAMS AND STRATEGIES The hereby strategy has been issued considering the national and regional strategies and programs. The documents considered are as follows:

Trans-border and regional cooperation programs: - The Common Operational Program ENPI CBC Hungary-Slovakia-Romania-Ukraine 2007-2013 The global objective of the program is as follows: “the intensification and the strengthening of a durable cooperation from the environment, social and economic points of view between Ukraine’s regions Zakarpatska, Ivano-Frankovsk and Chernivetska and the eligible and adjacent areas from Hungary, Slovakia and Romania”. The measures within this program are grouped in priorities, each of them with its own target, as follows: - Priority no. 1: The promotion of the economical and social development - Priority no.2: The improvement of the environment quality - Priority no. 3: The increase of the border management efficiency - Priority no.4: The supporting of the “people to people” cooperation This is the program with the highest relevance for the implementation of the herein strategy, the first two priorities of the program being especially important from this point of view.

- The Neighbourhood Program PHARE/TACIS Romania-Ukraine 2004-2006 This program financed or is still financing projects targeting at the economical and social development, the development of an integrated infrastructure system in the border area as well as the “people to people” cooperation. The first relevant projects in this trans-border region implemented based on this project. It has offered examples of good practice and taught lessons, important for the implementation of the future projects.

- The Transnational South-East Europe Cooperation Program 2007-2013 This program includes regions from 17 countries. All the four counties / oblast of the strategy area are part of the eligibility area. The general strategic objective of the program is “ the setting up of transnational partnerships in fields of a strategic importance for the purpose of improving the process of territorial, economical and social integration and for supporting the cohesion, stability and competitiveness ” The priority axis I and IV are relevant for the herein strategy: The Priority Axis No. 1 The Supporting of Entrepreneurship and Innovation - The development of the technologic and innovation networks in specific fields; - The development of a favourable environment for the innovative entrepreneurship; - The improvement of the frame conditions and the opening of the way towards innovation. The Priority Axis No 4 The development of the transnational synergies of the areas with potential - The approach of the issues affecting the metropolitan areas and the regional settlements systems; - The promotion of a balanced frame of the areas with potential as far as their accessibility and attractiveness are concerned; - The promotion of the cultural patrimony for development purposes.

National Programs and Strategies - Romania’s National Strategic Reference Frame for the period 2007 - 2013

30 The CNSR 1 objectives are the following: the strengthening of the economical and social cohesion, the reducing of the regional disparities and the setting of a correct and adequate connexion to the policies of the European Commission, especially the Lisbon strategy. The thematic priorities set within CNSR and relevant for the herein strategy are as follows: - The long term increase of the economical competitiveness in Romania; - The development and the more efficient use of the human capital in Romania.

- The National Strategy of Ukraine’s Regional Development in the period 2004 - 2015 The purpose of SNDR 2 is that of establishing the conditions for realizing a competitive potential of the regions, the maintaining of a steady level of development based on new technologies, a high productive capacity of the industry and the population occupation. The priority directions within SNDR, relevant for the herein strategy are as follows: - The restructuring of the economic resources in the regions and the promotion of diversity based on new technologies; - The human resources development; - The regional cooperation development.

Other initiatives and international programs - The European Bank for Reconstruction and Development (EBRD) In Romania, EBRD supports the investments in infrastructure, the direct foreign investments and the support of the financial sector. It also supports the strengthening of the public administration and local authorities’ capacity in using the EU funds. In Ukraine, EBRD supports the improvement of the business environment and the private sector competitiveness, the increase of the institutional capacity of the financial sector and the SME-s financing level, the roads, railways, ports, airports modernization as well as the modernization of the energetic, petrol and natural gas sectors.

1 CNSR = Romania’s National Strategic Reference Frame for the period 2007 - 2013 2 SNDR = The National Strategy of Ukraine’s Regional Development in the period 2004 - 2015

31 The SWOT Analysis

This chapter presents the SWOT analysis common for the entire region.

Strong points – weak points

STRONG POINTS WEAK POINTS - Ethnic diversity - Poor technological level in certain sectors of - Resources of raw materials (metallurgic the production units industry, wood processing industry, - Critical organizational management construction materials industry etc.) - Decreased level of information changing - Relief diversity - Poor acquaintance with the two economic - Relatively chip labor force and business environments - The existence of the protected areas - Reduced confidence in the business - Potential for producing alternative sources of relationships energy, renewable energies - Poor image of the economic environment - Developed academic infrastructure outside the Region - An increased level of cooperation between - The existence of the communication barriers universities in the Region (the language) - Potential for applied research - Reduced access to relevant business - The existence of the utilities transport information networks (gas, electricity) - Opposition to change (conservatism) - Increased level of the transport services - Reduced level of innovation (especially on road) - Poor associative spirit - Expertise in attracting financing sources and - Reduced capacity to access financing sources implementing relevant projects - The labor force migration outside the Region - Strong and consolidated partnership and - The lack of concordance between offer and associative structures, representative for the demand on the labor market business environment - The lack of efficiency of the labor force - The existence of the Carpathian Euro-region steadiness programs - Entrepreneurial spirit - Reduced mobility of the labor force inside the - Tradition in viticulture, fruit growing and Region animals breeding - The labor force ageing in the rural areas - A common background of the economic - The mentality that manager (entrepreneur) = development and experience “owner” - Available production spaces - Relevant start-up market - Complementary typology of the industry and services - A great replication capacity - The development of the agro and balneal tourism - Experience in organizing common economic events

32 Opportunities and Threats

OPPORTUNITIES THREATS - Opening Consulates (at Sighetul Marmatiei - Maintaining the customs restrictions between and Uzghorod) the two states - Bilateral agreements mutually favoring the - Preserving the visas regime (for the Ukrainian investments and the commercial exchanges citizens) between the two countries - Unstable or un-stimulating taxation at the - Investments in the field of environment level of fiscal policies protection - Maintaining a reduced number of customs - The increase of legislative stability points between the two states, at the level of - The increase of the investment policies at this Region central and local levels - Restrictive environment policy - The development of the real estate market - Certification / standardization policies - The macro-economic stability - Inflation increase - Preserving the trend of economic growth - The increase of the unloyal competition, the - Reducing the unemployment black labor and the undergound economy - The increase of competition as a - The investments relocation affecting the development engine horizontal economy - The stability of the foreign currency market - Withdrawing investments from the market - Improving the country ratings, seen as an - Preserving politics of the “paternalist state” opportunity to attract investments type, both at public level as well as at the level - The increase of the stock exchange market of expectations from the business - The change of the attitude towards work environment - The development of CSR policies - The reduced speed of new technologies - The promotion of the local and cultural values implementation - The increase of cultural tolerance - The differences in the technological - The development of the technologies for development between the rural – urban renewable and unconventional energies, as environments an opportunity for economic development - Improving the mechanisms of know-how transfer - The development of IT&C (Internet) technologies - The development of the green technologies - Improving the mechanisms for applying the results of the technological research – development in the real economy

33 THE OBJECTIVES ANALYSIS

The vision of the strategy has been defined starting from the territorial analysis and from the SWOT matrix issued, as follows: „To support the economical development and the improving of the business environment in the Romania – Ukraine Trans-border Region (Maramureş, Satu Mare, Zakarpatska and Ivano-Frankivsk), starting from the analysis of the present territorial situation and relying on the institutional cooperation of the relevant players at local level.”

The general objective : “To increase the economic competitiveness in the Romania – Ukraine Trans-border Region (Maramureş, Satu Mare, Zakarpatska and Ivano-Frankivsk)”

The reaching of each separate specific objective is supported by the obtaining of some results:

2. To identify and correlate the deficiencies on the labor force market Results: - Reducing the migration of labor force outside the Region; - Increasing the labor force mobility inside the Region; - Making more efficient programs for labor force steadiness; - Attracting and keeping the young persons in the rural areas.

Each specific objective has been detailed with types of actions and exemplifying actions, with risk and stakeholders analysis. The next step was the issuing of the charts for each specific objective. The results are as follows:

34 EXEMPLIFYING ACTIONS SPECIFIC OBJECTIVE 1 - 1. TO REDUCE THE TECHNOLOGICAL AND FINANCIAL DEFICIENCIES

Organizing Project Management courses Setting up data base and associated materials regarding the financing sources Improving the capacity to access Developing programs and mechanisms of communication with the public and private financers financing sources Consultancy concerning the business plan, the feasibility studies etc. Assistance in drawing up documentations Information events on the financing opportunities Developing mechanisms for the promotion of the good practice examples Courses of financial management

Proposing and promoting fiscal facilities for technological development Developing mechanisms for the facilitation of the know-how and/or production licenses transfer Promoting/supporting the training of the highly qualified specialists with the support of the universitary environment The increase of the Promoting the structures of “spin-off” type technological level of the Developing mechanisms for cooperation between the academic and business environments companies Setting up centers of technological transfer Developing mechanisms for the practical application of the research projects Organizing technological scholarships Setting up data base with the potential partners in the research projects.

Organizing competitions of innovative projects among students Assistance in drawing up research projects in the academic environment or in companies Stimulating the increase of the Organizing training sessions on innovation innovation level Organizing themes based conferences Developing mechanisms for promoting the innovation within companies (events, campaigns)

35 EXEMPLIFYING ACTIONS SPECIFIC OBJECTIVE 2 - 2. TO IDENTIFY AND CORRELATE THE DEFICIENCIES ON THE LABOR FORCE MARKET

Proposing and developing measures aimed at supporting the development of the companies in the Region Proposing and promoting measures for populating the difficult areas Reducing the migration of labor Promoting the improvement of the working conditions force Promoting the policies for providing salaries based on specializations, fields of activity etc. in the private environment Organizing courses for developing the entrepreneurial abilities among young people Organizing events such as “projects competition” among young people Organizing courses for improving the financial management in the companies within the Region

Organizing fairs of the trans-border working places Lobby – Actions for simplifying the customs formalities in the case of small traffic of persons Increasing the labor force Lobby - Actions for developing the customs infrastructure (opening new customs points in the Region or developing the existing ones) mobility Promoting the setting up of mix companies dealing with the selection and placement of labor force Proposing and promoting the development of real estate projects in the field of “dwellings for employees” Proposing and promoting the improvement of public transport on short, medium and long routes

Proposing and promoting the opportunity to develop the packages of salary bonuses for the companies’ employees Drawing up more efficient Promoting the H.R. specialists and consultants programs for labor force Awareness campaigns regarding the importance of human resources steadiness Organizing courses for the specialization in the field of Human Resources Management Promoting and supporting the setting up of entities such as professional associations

Organizing courses for the development of the entrepreneurial skills Promoting and supporting the setting up of entities such as agricultural associations Attracting and keeping the Proposing and promoting sets of measures for supporting the young people in the rural areas young people in the rural areas Developing mechanisms of promoting the investment opportunities in the rural areas in order to attract direct investments Promoting the improvement of the living standards in the rural areas Organizing courses for supporting the development of small and micro businesses in the rural areas Developing consultancy packages for supporting the development of small and micro businesses in the rural areas

36 EXEMPLIFYING ACTIONS SPECIFIC OBJECTIVE 3 - 3. TO INTENSIFY THE EXCHANGE OF BUSINESS INFORMATION

Issuing some strategies to promote the economic opportunities in the Region Attending international relevant events, such as fairs - exhibitions, with stalls or common events Improving the business Developing common events following the pattern “MADE IN …” environment image inside and Setting up, outside the Region, promotion points for the economic environment in the Region outside the Region Issuing and communicating the evaluation mechanisms for the “health condition” of the business environment Promoting innovative instruments of communication among companies (branding, image development etc.)

Developing data basis following the KOMPASS model. Developing B2B electronic communication instruments (sites, portals) Facilitating the access to Unitary promotion campaign for the economic impact events organized in the Region relevant business information Organizing events for promoting the impact information on the business environment (legislative, fiscal, customs, commercial etc.) Developing relevant and specialized consultancy packages Promoting and training independent consultants in various fields

Organizing economic missions Organizing business fairs Increasing the visibility of the Joint organization of fairs – exhibitions or attending such events two economic and business Media campaigns environment Developing mechanisms for the promotion of the investment opportunities Developing investment guides (taxation, start up, customs, commercial etc.)

Constituting, developing, supporting and promoting the networks of translators (En-Ro-Ukr) Lobby – Actions for simplifying the customs formalities in the case of small traffic of persons Reducing the communication Lobby – Actions for developing the customs infrastructure (opening new points in the Region or developing the existing ones) barriers (the language) Organizing events such as “summer schools” with a relevant structure for business development Organizing courses of communication, facilitation, mediation and negotiation Issuing dictionaries in En – Ro – Ukr for the economic, commercial, technical and juridical fields

37 EXEMPLIFYING ACTIONS SPECIFIC OBJECTIVE 4 - 4. TO INCREASE THE LEVEL OF MANAGERIAL AND ORGANIZATIONAL CULTURE

Identifying, promoting and training specialists in the management of change Accepting the new / the change Promoting the opportunity to realize impact studies for the change processes with a major impact at organizational level Organizing courses/events in the management of change Promoting the successful cases Improving the image of Promoting the case studies manager’s “profession” Identifying and promoting patterns Developing and implementing communication campaigns

Identifying and promoting patterns Organizing events with joint participation (economic delegations, fairs, business events) The increase of confidence in Promoting the successful cases the business relationships Constituting and developing data base with business incidents Promoting the opportunity and issuing an ethical code and a code of good business practice Promoting the mechanisms to solve the commercial litigations of the “Commercial Arbitrage Courts” type

Organizing specialized courses Organizing specialization probation periods Improving the organizational Organizing experience exchanges Management Promoting scholarships for managers Promoting the good practice cases and the successful ones Involving the specialized managers in the academic environment (associated academic staff) Promoting the necessity to exist managerial skills at entry, middle, top levels

Supporting the constitution of specialized professional associations Organizing events in partnership Promoting the successful cases, especially concerning the projects implementation and development Stimulating the associative spirit Promoting the associative spirit through the education system Promoting and facilitating the associations between companies for the development of public / private projects Organizing courses of communication, facilitation, mediation and negotiation Organizing joint events “of society” for the business environment Promoting and supporting the setting up of “integrating” companies (purchase, sales, supplier chains) and specialized companies for the performance of specialized services for the own members

38 STAKEHOLDERS ANALYSIS SPECIFIC OBJECTIVE 1 - 1. TO REDUCE THE TECHNOLOGICAL AND FINANCIAL DEFICIENCIES

STAKEHOLDERS INTEREST EFFECT +, - , PRIORITY 1 (the +/-, ? most important) – 5 (the least important) PRIMARY 1. THE COMPANIES IN THE REGION - increase of competition + 1 - increase of business + - profit maximization + 2. THE LOCAL COMMUNITIES (POPULATION) - increase of revenues + 4 - the improvement of working conditions + 3. THE EMPLOYEES IN THE REGION - the increase of buying power + 2 - the situation of the working places +/-

SECONDARY 4. INSTITUTIONS OF PROFESSIONAL, AVERAGE AND ACADEMIC - the adapting and diversification of the educative package +/- 4 EDUCATION 5. LOCAL AND REGIONAL PUBLIC AUTHORITIES - budget revenues + 4 - social issues +/- - regional development + 6. CENTRAL PUBLIC AUTHORITIES - budget revenues + 5 7. THE COMPANIES ON HORIZONTAL - business preserving +/- 2 8. NGO’s REPRESENTATIVE FOR THE BUSINESS ENVIRONMENT - development and increase of the representation degree + 3 (CHAMBERS OF COMMERCE, ASSOCIATIONS ETC) 9. TRADE UNIONS - the preserving of the working places - 3 10. RESEARCH INSTITUTES - projects development + 4 11. BANKING SYSTEM (REIMBURSABLE FINANCERS) - capital/credits placement + 1 12. OTHER FINANCERS, MAINLY NON-REFUNDABLE - reaching objectives + 2 13. MEDIA - publicity + 4 14. CONSULTANCY COMPANIES - businesses development + 2

39 STAKEHOLDERS ANALYSIS SPECIFIC OBJECTIVE 1 - 1. TO REDUCE THE TECHNOLOGICAL AND FINANCIAL DEFICIENCIES

1. THE COMPANIES IN THE REGION 2. THE LOCAL COMMUNITIES (POPULATION) 3. THE EMPLOYEES IN THE REGION 4. INSTITUTIONS OF PROFESSIONAL, AVERAGE AND ACADEMIC EDUCATION 5. LOCAL AND REGIONAL PUBLIC AUTHORITIES 6. CENTRAL PUBLIC AUTHORITIES 7. THE COMPANIES ON HORIZONTAL 8. NGO’s REPRESENTATIVE FOR THE BUSINESS ENVIRONMENT (CHAMBERS OF COMMERCE, ASSOCIATIONS ETC) 9. TRADE UNIONS 10. RESEARCH INSTITUTES 11. BANKING SYSTEM (REIMBURSABLE FINANCERS) 12. OTHER FINANCERS, MAINLY NON-REFUNDABLE 13. MEDIA 14. CONSULTANCY COMPANIES

40 STAKEHOLDERS ANALYSIS SPECIFIC OBJECTIVE 2 - 2. TO IDENTIFY AND CORRELATE THE DEFICIENCIES ON THE LABOR FORCE MARKET STAKEHOLDERS INTEREST EFFECT +, - , PRIORITY 1 (the +/-, ? most important) – 5 (the least important) PRIMARY 1. THE EMPLOYEES IN THE REGION - improving the working conditions + 1 - improving the skills +/- - reducing the labour force migration +/- - increasing the benefits + - increasing the competition on the labour force market +/- 2. THE EMPLOYERS IN THE REGION - the labour force stability + 1 - the increase of businesses + - improving the quality of the labour force + - reducing the labour force deficits + 3. THE LOCAL COMMUNITIES (THE POPULATION) - increasing the revenues + 4 - improving the working conditions + - reducing the labour force migration +/-

SECONDARY 4. THE LOCAL AND REGIONAL PUBLIC AUTHORITIES (including the - the social impact +/- 1 rural ones) - increasing the revenues + - reducing the migration +/- 5. THE CENTRAL PUBLIC AUTHORITIES - framing within the policies of labour force promotion +/- 4 6. TRADE UNIONS - protecting the members + 1 7. CONSULTANTS - developing the businesses + 2 8. EDUCATION INSTITUTIONS (all levels) - adjusting and diversifying / developing the educational package +/- 4 9. THE POLITICAL ENVIRONMENT (at local, county and central level) - offering support in the development of legislative propositions for +/- 2 lobby activities 10. NGO’s REPRESENTATIVE FOR THE BUSINESS ENVIRONMENT - development and increase of the representation degree + 2 (CHAMBERS OF COMMERCE, ASSOCIATIONS ETC) - diversifying the services performed +/- 11. COMPANIES SPECIALIZED IN THE PROFESSIONAL TRAINING - developing the businesses + 2 12. REIMBURSABLE FINANCERS (Banks, other financial institutions, - capital/credits placement + 4 IFN etc.) 13. MAINLY NON-REFUNDABLE FINANCERS - financing viable projects for reaching the undertaken objectives + 3 14. MEDIA - publicity + 5

41 STAKEHOLDERS ANALYSIS SPECIFIC OBJECTIVE 2 - 2. TO IDENTIFY AND CORRELATE THE DEFICIENCIES ON THE LABOR FORCE MARKET

1. THE EMPLOYEES IN THE REGION 2. THE EMPLOYERS IN THE REGION 3. THE LOCAL COMMUNITIES (THE POPULATION) 4. THE LOCAL AND REGIONAL PUBLIC AUTHORITIES (including the rural ones) 5. THE CENTRAL PUBLIC AUTHORITIES 6. TRADE UNIONS 7. CONSULTANTS 8. EDUCATION INSTITUTIONS (all levels) 9. THE POLITICAL ENVIRONMENT (at local, county and central level) 10. NGO’s REPRESENTATIVE FOR THE BUSINESS ENVIRONMENT (CHAMBERS OF COMMERCE, ASSOCIATIONS ETC) 11. COMPANIES SPECIALIZED IN THE PROFESSIONAL TRAINING 12. REIMBURSABLE FINANCERS (Banks, other financial institutions, IFN etc.) 13. MAINLY NON-REFUNDABLE FINANCERS 14. MEDIA

42 STAKEHOLDERS ANALYSIS SPECIFIC OBJECTIVE 3 - 3. TO INTENSIFY THE EXCHANGE OF BUSINESS INFORMATION

STAKEHOLDERS INTEREST EFFECT +, - , PRIORITY 1 (the +/-, ? most important) – 5 (the least important) PRIMARY 1. COMPANIES FROM THE REGION - promoting their own businesses + 1 - opportunities of businesses development + - increase of competition +/- 2. COMPANIES FROM OUTSIDE THE REGION - identifying potential business partners in the Region + 4 - identifying new markets + - identifying investment opportunities + 3. LOCAL COMMUNITIES (THE POPULATION) - improving the living standards through economical development + 5

SECONDARY 4. THE LOCAL AND REGIONAL PUBLIC AUTHORITIES - the increase of visibility and the promotion of the region + 1 - economic development + 5. THE CENTRAL PUBLIC AUTHORITIES - framing within the policies of economical development (exports and + 5 commercial exchanges) 6. EDUCATION INSTITUTIONS (mainly high education) - the development of the educational package +/- 5 7. CONSULTANTS (PR, communication strategies, branding etc.) - the businesses development + 2 8. THE POLITIC AL ENVIRONMENT (at local, county and central level) - offering support in the development of legislative propositions for +/- 4 lobby activities 9. COMPANIES SPECIALIZED IN ORGANIZING EVENTS - the businesses development + 2 10. NGO’s REPRESENTATIVE FOR THE BUSINESS ENVIRONMENT - development and increase of the representation degree + 1 (CHAMBERS OF COMMERCE, ASSOCIATIONS ETC) 11. MEDIA - publicity + 4 12. MAINLY NON-REFUNDABLE FINANCERS - financing viable projects for reaching the undertaken objectives + 2 13. REIMBURSABLE FINANCERS (Banks, other financial institutions, - capital/credits placement + 5 IFN etc.)

43 STAKEHOLDERS ANALYSIS SPECIFIC OBJECTIVE 3 - 3. TO INTENSIFY THE EXCHANGE OF BUSINESS INFORMATION

1. COMPANIES FROM THE REGION 2. COMPANIES FROM OUTSIDE THE REGION 3. LOCAL COMMUNITIES (THE POPULATION) 4. THE LOCAL AND REGIONAL PUBLIC AUTHORITIES 5. CENTRAL PUBLIC AUTHORITIES 6. EDUCATION INSTITUTIONS (mainly high education) 7. CONSULTANTS (PR, communication strategies, branding etc.) 8. THE POLITIC AL ENVIRONMENT (at local, county and central level) 9. COMPANIES SPECIALIZED IN ORGANIZING EVENTS 10. NGO’s REPRESENTATIVE FOR THE BUSINESS ENVIRONMENT (CHAMBERS OF COMMERCE, ASSOCIATIONS ETC) 11. MEDIA 12. MAINLY NON-REFUNDABLE FINANCERS 13. REIMBURSABLE FINANCERS (Banks, other financial institutions, IFN etc.)

44 STAKEHOLDERS ANALYSIS SPECIFIC OBJECTIVE 4 - 4. TO INCREASE THE LEVEL OF MANAGERIAL AND ORGANIZATIONAL CULTURE

STAKEHOLDERS INTEREST EFFECT +, - , +/-, ? PRIORITY 1 (the most important) – 5 (the least important) PRIMARY 1. COMPANIES FROM THE REGION - the businesses development +/- 2 - the staff training +/- 2. THE EMPLOYEES IN THE REGION (middle and - the development of the managerial abilities +/- 1 top) - the development of abilities + 3. LOCAL COMMUNITIES (THE POPULATION) - improving the living standards through economical + 4 development

SECONDARY 4. THE LOCAL AND REGIONAL PUBLIC AUTHORITIES - economic development + 2 5. THE CENTRAL PUBLIC AUTHORITIES - framing within the policies of economical development + 4 6. NGO’s REPRESENTATIVE FOR THE BUSINESS - development and increase of the representation degree + 1 ENVIRONMENT (CHAMBERS OF COMMERCE, ASSOCIATIONS ETC) - the employees training +/- 7. COMPANIES SPECIALIZED IN ORGANIZING - the businesses development + 2 EVENTS 8. CONSULTANTS - the businesses development + 2 9. TRADE UNIONS - the development of members’ training + 3 - change of mentalities +/- 3 10. EDUCATION INSTITUTIONS (mainly high - the development of the educational package + 3 education) 11. MAINLY NON-REFUNDABLE FINANCERS - financing viable projects for reaching the undertaken + 3 objectives 12. MEDIA - publicity + 5

45 STAKEHOLDERS ANALYSIS SPECIFIC OBJECTIVE 4 - 4. TO INCREASE THE LEVEL OF MANAGERIAL AND ORGANIZATIONAL CULTURE

1. COMPANIES FROM THE REGION 2. THE EMPLOYEES IN THE REGION (middle and top) 3. LOCAL COMMUNITIES (THE POPULATION) 4. THE LOCAL AND REGIONAL PUBLIC AUTHORITIES 5. THE CENTRAL PUBLIC AUTHORITIES 6. NGO’s REPRESENTATIVE FOR THE BUSINESS ENVIRONMENT (CHAMBERS OF COMMERCE, ASSOCIATIONS ETC) 7. COMPANIES SPECIALIZED IN ORGANIZING EVENTS 8. CONSULTANTS 9. TRADE UNIONS 10. EDUCATION INSTITUTIONS (mainly high education) 11. MAINLY NON-REFUNDABLE FINANCERS 12. MEDIA

46 OBJECTIVE 1 CHART SPECIFIC OBJECTIVE 1 - 1. TO REDUCE THE TECHNOLOGICAL AND FINANCIAL DEFICIENCIES

GENERAL OBJECTIVE SPECIFIC OBJECTIVE RESULTS ACTIVITIES TYPES OF ACTIVITIES

The increase of economic To reduce the Improving the capacity Organizing Project Management Courses Organizing courses, competitiveness technological and to access the financing training programs Setting up data base and associated materials regarding the financing In the Romanian – Ukrainian financial deficiencies sources sources Trans-border Region Developing programs and mechanisms of communication with the (Maramureş, Satu Mare, public and private financers Zakarpatska and Ivano- Consultancy concerning the business plan, the feasibility studies etc. Frankovsk) Assistance in drawing up documentations Legislative propositions, Information events on the financing opportunities other measures and lobby Developing mechanisms for the promotion of the good practice examples Courses of financial management The increase of the low Proposing and promoting fiscal facilities for technological Organizing event technological level in the development (promotion, business production units Developing mechanisms for the facilitation of the know-how and/or contacts, conferences etc.) production licenses transfer and media campaigns Promoting/supporting the training of the highly qualified specialists with the support of the academic environment Promoting the structures of “spin-off” type Developing mechanisms for cooperation between the academic and Setting up data basis business environments Setting up centres of technological transfer Developing mechanisms for the practical application of the research projects Organizing technological scholarships Stimulating the increase Setting up data base with the potential partners in the research Consultancy and of the innovation level projects assistance Organizing competitions of innovative projects among students Assistance in drawing up research projects in the academic environment or in companies Organizing training sessions on innovation Organizing themes based conferences Projects of institutional Developing mechanisms for promoting the innovation within development in the companies (events, campaigns) innovation field

47 OBJECTIVE CHART – SUPPOSITIONS / RISKS ANALYSIS SPECIFIC OBJECTIVE 1 - 1. TO REDUCE THE TECHNOLOGICAL AND FINANCIAL DEFICIENCIES

GENERAL OBJECTIVE SPECIFIC OBJECTIVE RESULTS ACTIVITIES TYPES OF ACTIVITIES

The increase of economic To reduce the technological and financial Improving the capacity to access the THEN competitiveness deficiencies financing sources

In the Romanian – Ukrainian THEN IF Trans-border Region (Maramureş, Satu Mare, THEN Zakarpatska and Ivano- Frankovsk) The increase of the low technological level in the production units IF Stimulating the increase of the innovation level IF

EXTERNAL FACTORS AND

- The increase of the disloyal competition, the

black labor and the underground economy AND shall not have a major effect on the economic EXTERNAL FACTORS AND growth; EXTERNAL FACTORS - Certification / standardization policies; - The increase of competition, as a - Improving the investment policies at central development engine; - there shall exist financing sources and local level; - The increase of the legislative stability; - the relevant partnership structures shall be consolidated - The development of the technologies for - The improvement of the know-how - there shall exist the necessary expertise renewable and unconventional energies, as an transfer mechanisms; - the relevant partners shall prove availability for financial opportunity for economic development; - The development of IT&C (Internet) involvement - there shall exist openness on the side of the final - Macroeconomic stability; technologies; beneficiaries - The stability of the foreign currency market; - Preserving the trend of economic growth; - The relocation of investments for horizontal economy shall not have a major effect on the economic growth

The herein Objective Chart is completed by the STAKEHOLDERS ANALYSIS due to SPECIFIC OBJECTIVE 1 - 1. TO REDUCE THE TECHNOLOGICAL AND FINANCIAL DEFICIENCIES presented above.

48 OBJECTIVE 2 CHART SPECIFIC OBJECTIVE 2 - 2. TO IDENTIFY AND CORRELATE THE DEFICIENCIES ON THE LABOUR FORCE MARKET

GENERAL SPECIFIC RESULTS ACTIVITIES TYPES OF ACTIVITIES OBJECTIVE OBJECTIVE The increase of To identify and Reducing the Developing mechanisms for promoting the investment opportunities in the rural areas in order Consultancy and economic correlate the labour force to attract direct investments assistance competitiveness deficiencies on migration Developing consultancy packages for the support of the small and micro businesses in the rural In the Romanian – the labour force areas Ukrainian Trans- market Organizing courses for developing the entrepreneurial abilities among young people Organizing courses, border Region Organizing courses for improving the financial management in the companies within the Region training programs (Maramureş, Satu Organizing specialization courses in the Field of the Human Resources Management Mare, Zakarpatska Organizing courses for the development of the entrepreneurial skills and Ivano- Organizing courses for the support of the small and micro businesses development in the rural Frankovsk) areas Lobby – Actions for simplifying the customs formalities in the case of small traffic of persons Legislative The increase of Lobby - Actions for developing the customs infrastructure (opening new points in the Region or propositions, other labour force developing the existing ones) measures and lobby mobility Proposing and promoting sets of measures for supporting the young people in the rural areas Proposing and developing measures aimed at supporting the development of the companies in the Region Proposing and promoting measures for populating the difficult areas Organizing fairs of the trans-border working places Organizing events Organizing events such as “projects competition” among young people Awareness campaigns regarding the importance of human resources Actions of promotion Promoting the H.R. specialists and consultants and support Making the Promoting and supporting the setting up of entities such as professional associations programs for Promoting the policies of providing salary packages based on specializations, fields etc. In the labour force private area stability to be Promoting and supporting the setting up of entities such as agricultural associations more efficient Promoting the setting up of mix companies of labour force selection and placement Proposing and promoting the improvement of the public transport on short, medium and long routes Promoting the improvement of the life standards in the rural areas Attracting and Proposing and promoting the opportunity to develop packages of salary indemnities for the keeping the employees young people in Promoting the improvement of the working conditions the rural areas Proposing and promoting the development of real estate projects for “job dwellings”

49 OBJECTIVE CHART – SUPPOSITIONS / RISKS ANALYSIS SPECIFIC OBJECTIVE 2 - 2. TO IDENTIFY AND CORRELATE THE DEFICIENCIES ON THE LABOUR FORCE MARKET GENERAL SPECIFIC OBJECTIVE RESULTS ACTIVITIES TYPES OF ACTIVITIES OBJECTIVE The increase of To identify and correlate the Reducing the labour force migration economic deficiencies on the labour force competitiveness THEN market The increase of labour force mobility IF In the Romanian – THEN Ukrainian Trans- THEN border Region Making the programs for labour (Maramureş, Satu force stability to be more efficient Mare, Zakarpatska Attracting and keeping the young and Ivano- people in the rural areas Frankovsk) IF IF AND EXTERNAL FACTORS

AND - the relevant partnership structures shall be consolidated - the relationships with the political environment shall be strengthen for AND supporting the lobby activities - the required expertise shall be available EXTERNAL FACTORS - the relevant partners shall be available for a financial involvement EXTERNAL FACTORS - the final beneficiaries shall prove openness towards change - Opening new Consulates in the - there shall exist financing sources - Maintaining the trend of economic Region growth - Reducing the customs restrictions - The development of the real estate between the two states and market simplifying the visas regime - Macroeconomic stability - The increase of the customs points - The change of the attitude towards between these two states at the level work of this Region - Bilateral agreements mutually - Reducing the differences of favouring the investments and the technological development between commercial exchanges between the urban-rural areas two countries

The herein Objective Chart is completed by the STAKEHOLDERS ANALYSIS due to SPECIFIC OBJECTIVE 2 - 2. TO IDENTIFY AND CORRELATE THE DEFICIENCIES ON THE LABOUR FORCE MARKET .

50 OBJECTIVE 3 CHART SPECIFIC OBJECTIVE 3 - 3. TO INTENSIFY THE EXCHANGE OF BUSINESS INFORMATION

GENERAL SPECIFIC RESULTS ACTIVITIES TYPES OF OBJECTIVE OBJECTIVE ACTIVITIES The increase of To intensify the Improving the Lobby – Actions for simplifying the customs formalities in the case of small traffic of persons Legislative economic exchange of business Lobby – Actions for developing the customs infrastructure (opening new points in the Region or propositions, competitiveness business environment image developing the existing ones) other measures In the Romanian – information inside and outside and lobby Ukrainian Trans- the Region Media campaigns Promotion border Region Promoting the communication innovative instruments among (branding, image development campaigns (Maramureş, Satu etc.) Mare, Facilitating the Issuing dictionaries in En – Ro – Ukr for the economic, commercial, technical and juridical fields Institutional Zakarpatska and Access to relevant Developing B2B electronic communication instruments (sites, portals) development and Ivano-Frankovsk) business Developing data basis following the KOMPASS model development of information Issuing a strategy for the promotion of the economic opportunities in the Region promotion Developing mechanisms for the promotion of the investment opportunities mechanisms Developing investment guides (taxation, start up, customs, commercial etc.) Constituting, developing, supporting and promoting the networks of translators (En-Ro-Ukr) Issuing and communicating the evaluation mechanisms for the “health condition” of the business environment Increasing the Developing relevant and specialized consultancy packages visibility of the two Unitary promotion campaign for the economic impact of the events organized in the Region economic and Setting up, outside the Region, points for the promotion of the economic environment in the business Region environment Organizing events for promoting the information that have an impact on the business Organizing environment (legislative, fiscal, customs, commercial etc.) events, courses Organizing business fairs and training programs Reducing the Attending international relevant events, such as fairs - exhibitions, with stalls or common events communication Promoting and training independent consultants in various fields barriers (the Joint organization of fairs – exhibitions or attending such events language) Organizing economic delegations Developing common events following the pattern “MADE IN …” Organizing courses of communication, facilitation, mediation and negotiation Organizing events such as “summer schools” with a relevant structure for the business development

51 OBJECTIVE CHART – SUPPOSITIONS / RISKS ANALYSIS SPECIFIC OBJECTIVE 3 - 3. TO INTENSIFY THE EXCHANGE OF BUSINESS INFORMATION GENERAL SPECIFIC OBJECTIVE RESULTS ACTIVITIES TYPES OF OBJECTIVE ACTIVITIES The increase of To intensify the exchange of business Improving the business environment

economic information image inside and outside the Region IF competitiveness In the Romanian – THEN Ukrainian Trans- THEN border Region Facilitating the Access to relevant THEN (Maramureş, Satu business information Mare, Zakarpatska and Increasing the visibility of the two Ivano-Frankovsk) economic and business environment

AND EXTERNAL FACTORS Reducing the communication barriers (the language) IF - the relevant partnership structures shall be consolidated IF - the relationships with the political environment shall be strengthen in order to support the lobby activities EXTERNAL FACTORS EXTERNAL FACTORS - the required expertise shall be provided AND AND - the relevant partners shall be available for a financial involvement - Maintaining the trend of economic - Opening new Consulates in the Region - the final beneficiaries shall prove openness growth - Reducing the customs restrictions - there shall exist financing sources - Bilateral agreements mutually between the two states and simplifying favouring the investments and the the visas regime commercial exchanges between the - The increase of the customs points two countries between these two states at the level of - Macroeconomic stability this Region - The increase of competition, as a - Reducing the fiscal instability or the un- development engine; stimulating fiscal policies - The development of the IT&C (Internet) technologies - Improving the investment policies at central and local level;

The herein Objective Chart is completed by the STAKEHOLDERS ANALYSIS due to SPECIFIC OBJECTIVE 3 - 3. TO INTENSIFY THE EXCHANGE OF BUSINESS INFORMATION.

52 OBJECTIVE 4 CHART SPECIFIC OBJECTIVE 4 - 4. TO INCREASE THE LEVEL OF MANAGERIAL AND ORGANIZATIONAL CULTURE GENERAL SPECIFIC RESULTS ACTIVITIES TYPES OF OBJECTIVE OBJECTIVE ACTIVITIES The increase of To increase the Accepting the new / the change Promoting the good practice cases and the successful ones, in various fields Promotion economic level of at organizational level Promoting the mechanisms to solve the commercial litigations of the campaigns competitiveness managerial and “Commercial Arbitrage Courts” type In the Romanian organizational Promoting the opportunity to realize studies of change impact for the change – Ukrainian culture processes with a major impact Trans-border Developing and implementing communication campaigns Region Identifying and promoting patterns (Maramureş, Promoting the necessity to exist managerial skills at entry, middle, top levels Satu Mare, Improving the image of Promoting and supporting the setting up of “integrating” companies (purchase, Institutional Zakarpatska and manager’s “profession” sales, supplier chains) and specialized companies for the performance of development and Ivano-Frankovsk) specialized services for the own members support actions Constituting and developing some data bases containing business incidents Promoting and facilitating the associations between companies for the development of public / private projects The increase of confidence in the Promoting the opportunity and issuing an ethical code and a code of good business relationships business practice Supporting the setting up of specialized professional associations Identifying, promoting and training specialists in the management of change Courses, training Improving the organizational Promoting scholarships for managers programs and management Organizing specialization probation periods complementary Organizing courses/events in the management of change actions Organizing specialized courses Stimulating the associative spirit Involving the specialized managers in the academic environment (associated academic staff) Promoting the associative spirit through the education system Organizing courses of communication, facilitation, mediation and negotiation Organizing events with joint participation (economic delegations, fairs, business Organizing events events) Organizing experience exchanges Organizing events in partnership Organizing joint events “of society” for the business environment

53 OBJECTIVE CHART – SUPPOSITIONS / RISKS ANALYSIS SPECIFIC OBJECTIVE 4 - 4. TO INCREASE THE LEVEL OF MANAGERIAL AND ORGANIZATIONAL CULTURE

GENERAL SPECIFIC OBJECTIVE RESULTS ACTIVITIES TYPES OF OBJECTIVE ACTIVITIES The increase of To increase the level of Accepting the new / the change at organizational economic managerial and organizational level IF competitiveness culture Improving the image of manager’s “profession” In the Romanian THEN THEN – Ukrainian The increase of confidence in the business THEN Trans-border relationships Region Improving the organizational (Maramureş, management Satu Mare, Stimulating the associative spirit Zakarpatska and IF AND Ivano-Frankovsk) EXTERNAL FACTORS IF

AND - the relevant partnership structures shall be consolidated - the required expertise shall be provided EXTERNAL FACTORS - the relevant partners shall be available for a financial involvement EXTERNAL FACTORS AND - the final beneficiaries shall prove openness - Opening new Consulates in the Region - there shall exist financing sources - Maintaining the trend of - Reducing the customs restrictions between the two economic growth states and simplifying the visas regime - Bilateral agreements mutually - The increase of the customs points between these favouring the investments and two states at the level of this Region the commercial exchanges - Reducing the fiscal instability or the un-stimulating between the two countries fiscal policies - Macroeconomic stability - Developing the associative spirit - The increase of competition, - Implementing the innovation elements among the as a development engine; final beneficiaries, companies from the Region. - Diminishing the policies of the “paternalist state” type, both at public level as well as at the level of the business environment expectations.

The herein Objective Chart is completed by the STAKEHOLDERS ANALYSIS due to SPECIFIC OBJECTIVE 4 - 4. TO INCREASE THE LEVEL OF MANAGERIAL AND ORGANIZATIONAL CULTURE.

54 ANNEXES

Annex 1. – Basic Characteristics (2005) Territorial Units Surface Number of inhabitants Out of which: Out of which: The Density of (km 2) (persons) in the urban areas in the rural areas population persons (%) persons (%) (inhabitants / km 2) Maramures 6304 515610 303119 58.8 212491 41.2 81.8 Satu Mare 4418 368702 169597 46.0 199105 54.0 83.5 Zakarpatska 12800 1245500 462081 37.1 825642 62.9 97.3 Ivano-Frankovsk 13900 1393600 590886 42.4 802714 57.6 100.0

Total 37422 3523412 1525683 43,3 2039952 57,9 94,2 Romania 94,1 Ukraine 78 EU (27 countries) 42 58 114,3

Sources: - The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program, Final Project, October 19, 2007; - Eurostate - United Nations Department of Economic and Social Affairs Population Division - COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT - Employment in rural areas: closing the jobs gap, Brussels, 21.12.2006 COM(2006) 857 final - The Zakarpatska Regional State Administration - The Ivano-Frankovsk Regional State Administration - Maramures County Council - Satu Mare County Council

55 Annex 2. – The natural migration of the population and the distribution of inhabitants age wise (2005)

Territorial Natural Migration * Migration / Total Total The pre- The productive The post- Indicator for Units growth (persons) 1000 growth / loss growth / productive population productive the (persons) inhabitants (persons) loss population (age 15-64) population population / 1000 (age 0-14) (aged above 65) ageing ** inhabitants persons % persons % persons %

Maramures -130 -620 -1,2 -750 -1,5 91866 17,8 364729 70,6 59967 11,6 65,3 Satu Mare -590 -877 -2,4 -1467 -4 65137 17,5 263141 70,8 43481 11,7 66,8 Zakarpatska -706 -2333 -1,9 -3039 -2,4 259973 20,9 756699 60,8 225942 18,1 86,9 Ivano- -3039 -1167 -0,8 -4206 -3 275167 19,8 817092 58,7 298631 21,5 108,5 Frankovsk (2004)

Total / -4465 -4997 -1,4 -9462 -2,7 692143 19,6 2201661 62,5 628021 17,8 90,7 the average EU-27 16 67,2 16,8 *only the internal migration **the indicator of population ageing: the post-productive population /the pre-productive population

Sources: - The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program, Final Project, October 19, 2007; - Eurostate Yearbook 2008 - The Zakarpatska Regional State Administration - The Ivano-Frankovsk Regional State Administration - Maramures County Council - Satu Mare County Council

56 Annex 3. – The structure of the human settlements considering the number of inhabitants (2005)

Territorial Units 1-499 500-1999 2000-49 999 above 50 000 Total inhabitants inhabitants inhabitants inhabitants Maramures (2004) 0 13 62 1 76 Satu Mare (2004) 0 12 50 1 63 Zakarpatska 164 286 142 2 594 Ivano-Frankovsk 253 407 141 3 804

Total 417 718 395 7 1537

Sources: - The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program, Final Project, October 19, 2007; - The Zakarpatska Regional State Administration - The Ivano-Frankovsk Regional State Administration - Maramures County Council - Satu Mare County Council

57 Annex 4. –Economical Statistics (2004)

Territorial Units The Gross The Gross % of the % of the The The The The GIP The GIP The GIP The GIP Internal Internal GIP national industrial agricultural services structure/ structure/ structure/ structure/ Product Product average GIP sector VAB sector VAB sector fields fields fields fields (mil €) per per capita from % GIP from % GIP VAB from Industry Agriculture Constructions Services Capita(€) in EU27 (at national (at national % GIP (at (2005) (2005) (2005) (2005) level) level) national (2005) (2005)) level) (2005) Maramures 1349 2616 12,2 1,8 35 10 55 25,56 13,18 5 56,26 Satu Mare 1094 2968 13,8 1,5 35 10 55 27,8 11,4 6,1 54,7 Zakarpatska 695 556 2,6 1,5 32 10 57 Nedet Nedet Nedet Nedet Ivano-Frankovsk 959 687 3,2 2,1 32 10 57 Nedet Nedet Nedet Nedet

EU27 10529351 21503 Ukraine 45290 954 Romania 73804 3405

Sources: - State Statistics Committee of Ukraine (the exchange rate used 1 EUR = 7,62 UAH) - The National Institute of Statistics from Romania (the exchange rate used 1 EUR = 3,3395 RON) - World Bank - Eurostate - The Zakarpatska Regional State Administration - The Ivano-Frankovsk Regional State Administration - Maramures County Council - Satu Mare County Council

58 Annex 5. – The Labour Force (2005)

Territorial Units The occupation rate The unemployment Total number of Population occupied Population occupied in Population (%) rate (%) registered in industry agriculture occupied in employees % 2 %2 the tertiary (thousand persons) sector % 2 Maramures 56,0 1 4,5 92,7 24,1 40,1 32,6 Satu Mare 56,0 1 3,4 69,1 25,3 41,6 29,5 Zakarpatska 58,7 8,2 537,8 14,6 36,5 42,3 Ivano-Frankovsk 54,5 9,8 361,7 17,4 36,0 41,0 1 Note: the average figure at the level of the North – West Region 2 The values corresponding to the Ukrainian regions have been calculated as per All-Ukrainian Population Census 2001

Sources: - The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program, Final Project, October 19, 2007; - The Zakarpatska Regional State Administration - The Ivano-Frankovsk Regional State Administration - Maramures County Council - Satu Mare County Council - All-Ukrainian Population Census 2001 - Romania’s Statistic Yearbook for 2006

59 Annex 6. – Small and Medium-sized Enterprises (2005)

Territorial Units Number of SME-s Number of SME-s / 1000 inhabitants Maramures 8899 17,3

Satu Mare 6795 18,4

Zakarpatska 8436 6,8

Ivano-Frankovsk 7259 5,2

Sources: - The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program, Final Project, October 19, 2007; - The Zakarpatska Regional State Administration - The Ivano-Frankovsk Regional State Administration - Maramures County Council - Satu Mare County Council - Romania’s Statistic Yearbook for 2006

60 Annex 7. – The Tourism (2005)

Territorial Units Accommodation capacity for Tourists Arrivals (persons) Nights of Accommodation Nights of Accommodation the entire year /tourist Maramures 2873 91000 209000 2,3 Satu Mare 2304 64000 102000 1,6 Zakarpatska 2005 63796 266786 4,2 Ivano-Frankovsk 12500 147581 826450 5,6

Total 19682 366377 1404236 3,8 Romania 282661 5805000 18373000 3,2 Ukraine 106048 17630760 19737000 1,1

Sources: - The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program, Final Project, October 19, 2007; - The Zakarpatska Regional State Administration - The Ivano-Frankovsk Regional State Administration - Maramures County Council - Satu Mare County Council

61 Annex 9. TIC (The Technology of Information and Communication) (2005)

Territorial Units Telephone Special access to Employed in C&D Employed in C&D Total expenses Subscriptions* the internet activities activities / 10000 with the C&D (number of employees activities persons, at the (thousand €) end of the year) Maramures 84023 23017 92 4,6 264 Satu Mare 57297 20599 92 6,3 510 Zakarpatska. uncounted uncounted 1100 uncounted Ivano-Frankovsk 233000 uncounted 2102 uncounted 4776

Romania 3957870 1463239 41,035 49 326896 Ukraine 12341000 955700 130,400 6 737776 *Note: telephone subscriptions in the fix ROMTELECOM network

Sources: - The European Instrument of Neighbourhood and Partnership, the Program of Trans-border Cooperation, Hungary – Slovakia – Romania – Ukraine 2007 – 2013, The Common Operational Program, Final Project, October 19, 2007; - The Zakarpatska Regional State Administration - The Ivano-Frankovsk Regional State Administration - Maramures County Council - Satu Mare County Council - “Universitatea de Nord” Baia Mare - Ivano-Frankovsk National Technical University of Oil and Gas - Romania’s Statistic Yearbook for 2006