Abstract JSSP

Effectiveness of the Disadvantaged Area Policy. Brief Assessment. Case Study: Borşa – Vişeu Disadvantaged Area

Gabriela-Alina MUREŞAN1
1 Babeş-Bolyai University, Faculty of Geography, Cluj-Napoca, ROMANIA
E-mail: amuresan@geografie.ubbcluj.ro
Pages: 183-192

Abstract. Disadvantaged area (DA) policy can be considered a model of strategy for regional development, namely a strategy based on demand. It aims to capitalise on the internal resources a region has by granting external economic incentives. The objective is to make the region more attractive to investors. The main issue of such a strategy is represented by finding a way to keep the investors in the region after the termination of the DA status and the termination of financial facilities. This is the context in which the present study intends to do a brief assessment of the effectiveness the DA policy in Borşa-Vişeu DA had. This assessment is done three years after the termination of the DA status. Three indicators have been analysed: the number of economic agents that continued to be active in the region after the termination of the DA status; the number of employees and the turnover. Once Borşa-Vişeu DA terminated its status, this brought about a decrease in the economic dynamics of the two towns. This was particularly obvious in the decrease of the number of economic agents active after 2009 and in the decrease of employees. Nevertheless, the turnover of the SMSE increased continuously after 2006. Even though we do not consider that this policy failed in this particular mining area – Borşa-Vişeu – we cannot conclude that there was a real diversification of the economic activities, as the companies that remained active in the area are representing only several economic sectors and sub-sectors (Manufacture of wood, Transportation, and Tourism).

K e y w o r d s: disadvantaged area, strategy for regional development, effectiveness, economic agents, turnover








			Effectiveness of the Disadvantaged Area Policy. Brief Assessment. Case Study: Borşa – Vişeu Disadvantaged Area Gabriela-Alina MUREŞAN1 1 Babeş-Bolyai University, Faculty of Geography, Cluj-Napoca, ROMANIA E-mail: amuresan@geografie.ubbcluj.ro Pages: 183-192 Abstract. Disadvantaged area (DA) policy can be considered a model of strategy for regional development, namely a strategy based on demand. It aims to capitalise on the internal resources a region has by granting external economic incentives. The objective is to make the region more attractive to investors. The main issue of such a strategy is represented by finding a way to keep the investors in the region after the termination of the DA status and the termination of financial facilities. This is the context in which the present study intends to do a brief assessment of the effectiveness the DA policy in Borşa-Vişeu DA had. This assessment is done three years after the termination of the DA status. Three indicators have been analysed: the number of economic agents that continued to be active in the region after the termination of the DA status; the number of employees and the turnover. Once Borşa-Vişeu DA terminated its status, this brought about a decrease in the economic dynamics of the two towns. This was particularly obvious in the decrease of the number of economic agents active after 2009 and in the decrease of employees. Nevertheless, the turnover of the SMSE increased continuously after 2006. Even though we do not consider that this policy failed in this particular mining area – Borşa-Vişeu – we cannot conclude that there was a real diversification of the economic activities, as the companies that remained active in the area are representing only several economic sectors and sub-sectors (Manufacture of wood, Transportation, and Tourism). K e y w o r d s: disadvantaged area, strategy for regional development, effectiveness, economic agents, turnover