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ISSN 2067 – 7693 www.cse.uaic.ro/WorkingPapers Volume IV, Issue 2, 2012 EDITORIAL BOARD SCIENTIFIC BOARD: Doina BALAHUR, Professor, Faculty of Philosophy, “Alexandru Ioan Cuza” University of Iaşi, Romania Ionel BOSTAN, Professor, Faculty of Law, “Alexandru Ioan Cuza” University of Iaşi, Romania Tiberiu BRĂILEAN, Professor, Faculty of Economics and Business Administration “Alexandru Ioan Cuza” University of Iaşi, Romania Daniela Luminiţa CONSTANTIN, Professor, The Bucharest Academy of Economic Studies, Bucharest, Romania, President of the Romanian Regional Science Association and member of the Council European Regional Science Association Gabriela DRĂGAN, Professor, The Bucharest Academy of Economic Studies, Romania, The General Director of the European Institute in Romania Gheorghe IACOB, Professor, Vice-Rector, Faculty of History, “Alexandru Ioan Cuza” University of Iaşi, Romania Corneliu IAŢU, Professor, Faculty of Geography and Geology, “Alexandru Ioan Cuza” University of Iaşi, Romania Ion IGNAT, Professor, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Vasile IŞAN, Professor, Faculty of Economics and Business Administration, Rector of “Alexandru Ioan Cuza” University of Iaşi, Romania Gheorghe LUŢAC, Professor, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Cosmin MARINESCU, Lecturer, ASE Bucharest Dumitru MIRON, Professor, The Bucharest Academy of Economic Studies, Romania Gabriela Carmen PASCARIU, Professor, Director of Centre for European Studies, “Alexandru Ioan Cuza” University of Iaşi, Romania Carmen PINTILESCU, Professor, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Alexandru-Florin PLATON, Professor, Dean of Faculty of History, “Alexandru Ioan Cuza” University of Iaşi, Romania Victor PLOAE, Professor, Ovidius University, Constanta, Romania Ion POHOAŢĂ, Professor, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Ioan POPA, Professor, The Academy of Economic Studies, Bucharest, Romania Spiridon PRALEA, Professor, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Rodica ZAHARIA, Professor, ASE Bucharest EDITOR IN CHIEF: Liviu-George MAHA, Lecturer PhD, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania EDITORS: Anamaria BERCU, Lecturer, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Sinziana BĂLŢĂTESCU, Lecturer, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Ovidiu BURUIANĂ, Associate Professor, Faculty of History, “Alexandru Ioan Cuza” University of Iaşi, Romania Elena COJOCARU, Assistant, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Ramona FRUNZĂ, PhD, Researcher, “Alexandru Ioan Cuza” University of Iaşi, Romania Ana SANDULOVICIU, Lecturer, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania EXECUTIVE EDITORS: Ciprian ALUPULUI, PhD Candidate, Faculty of Geography and Geology, “Alexandru Ioan Cuza” University of Iaşi, Romania Gabriel-Andrei DONICI, PhD Candidate, Faculty of Economics and Business Administration „Alexandru Ioan Cuza” University of Iaşi, Romania Cristian ÎNCALŢĂRĂU, PhD Candidate, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Sorin-Ștefan MAHA, PhD, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iaşi, Romania Volume IV, Issue 2, 2012 Table of Contents CORRUPTION - AN INHIBITING FACTOR FOR THE EFFICIENT IMPLEMENTATION OF STRUCTURAL FUNDS IN ROMANIA – Badea, Andrei Sebastian ...........................................110 METHOD OF SYSTEMATIZING THE EUROPEAN UNION STATES IN CATEGORIES ACCORDING TO THEIR ADMINISTRATIVE CAPACITY – Bosie, Irina ..................................121 CONSIDERATIONS REGARDING THE CURRENT DIMENSIONS OF HUMAN TRAFFICK IN ROMANIA – Caunic, Irina; Tulica, Mihai ......................................................................................130 BUSINESS STRATEGIES OF THE MULTINATIONAL CORPORATIONS – Diaconu, Laura .................................................................................................................................................................141 EURO ADOPTION – THE ILLUSION OF THE MONETARY INTEGRATION OF ROMANIA – Duhnea, Cristina; Ghita-Mitrescu, Silvia; Vancea, Diane Paula Corina.............................152 ILLEGAL DRUG MARKETS IN EUROPE: THE NEGATIVE CONSEQUENCES OF GLOBALIZATION – Maftei, Loredana............................................................................................164 THE ROLE OF THE ENERGY COMMUNITY WITHIN THE EU REGIONAL COOPERATION – Musteata, Victoria ..............................................................................................................................177 EUROPEAN EXPERIENCE OF SOCIAL PARTNERSHIP IN THE LABOUR FIELD: PERSPECTIVES FOR THE REPUBLIC OF MOLDOVA – Nicolaescu, Irina; Teosa, Valentina .................................................................................................................................................................188 EU ENLARGEMENT AT A CROSSROADS – Paul, Andreea Catalina ......................................196 EU CONTRIBUTION TO SUPPORT DEVELOPING COUNTRIES – Popa, Diana ...................204 KEYNES’S EUROPEANISM AS SHOWN IN “THE ECONOMIC CONSEQUENCES OF THE PEACE” – Popescu, Diana; Tache, Ileana ...................................................................................221 THE ROLE OF ECONOMIC POLICIES FOR EXTERNAL CROSSBORDER AREAS IN SHAPING THE NEW EUROPEAN UNION – Slusarciuc, Marcela .............................................231 THE MOBILITY OF THE PROCESSES OF REGIONAL INTRA-INDUSTRY SPECIALIZATION IN ROMANIA – Stangaciu, Oana Ancuta .....................................................................................241 MULTILATERAL ENVIRONMENTAL AGREEMENTS AND THE TRADE MEASURES CONTAINED IN THESE AGREEMENTS – Timbur, Margareta .................................................256 CORRUPTION - AN INHIBITING FACTOR FOR THE EFFICIENT IMPLEMENTATION OF STRUCTURAL FUNDS IN ROMANIA Andrei Sebastian Badea Alexandru Ioan Cuza University of Iaşi, România [email protected] Abstract: The aim of this paper is to give an insight into the link between corruption and the implementation of structural and cohesion funds in Romania and the other Central and Eastern European states (CEE). Although there is a great interest within the mass-media and the civil society for this topic, very few in-depth analyses have been carried out on this subject by independent researchers. This article starts with an evaluation on the various indicators and indexes that quantify corruption, continuing with a comparison at a regional level. Afterwards, the analysis continues with a brief assessment on the implementation of structural funds in Romania and the other CEE states. What we have found by analysing the corruption indices and absorption rates for 7 European Union member states is that there is a strong link between the two phenomena: states with high levels of corruption benefit less from structural and cohesion funds having lower absorption rates. Keywords: Structural funds, Cohesion Funds, Corruption in Romania JEL Classification: D73, E61, O52, R11, R58 1. METHODS OF ASSESSING CORRUPTION Corruption is a phenomenon that is today in the spotlight all across Europe and is often associated with slow growth, underdevelopment and even sovereign debt crisis. The current economic situation has focused the attention even more on European countries with high perceived corruption levels, such as the Mediterranean states or new member states from Central and Eastern Europe. For the CEE countries corruption has been linked to the legacy of the communist regimes, where corruption was widespread within the administration and the transition to a market economy. The legacy is mainly related to the extensive use of bribes and personal connections to solve problems, to do business or to deal with the public administration. As long as many of the former communist party members remained in positions of power in politics, administration and business sectors, corruption levels remained high in the transition period. CES Working Papers, IV, (2), 2012 110 For citizens in the CEE, in some areas more than others, corruption remains a fact of life, common knowledge and part of day to day routine. Thus, given the extent of the phenomenon, it is hard to accurately evaluate, measure and identify the most effective course of action. It is very difficult to objectively asses corruption because of its hidden nature, the complicity of individuals associated with it and the virtual absence of tangible data, making perception indices the main method for quantification. As with any indicator based on perception, these indices can leave a gap between the real situation and the measured value. Much debate has been carried out over how accurate these measurements are but even with different sources of data, methodologies and tools, results for CEE states are similar. In order to better understand the nature of the evaluation, the measurements will be separated into two main categories related to the level that they are calculated at: I. Global assessments: 1. Corruption Perceptions