“Romania lacks a network of highways. At first sight, that doesn’t seem essential but here’s a comparison. Let’s look at Transylvania (central Romania – e.n.) and Moldavia (eastern Romania). In Transylvania the infrastructure has been brought to a certain standard and unemployment is lower and income is higher. In Moldavia there is a single expressway connecting the south to the north, a good road, but we also see higher unemployment and lower available income. That’s the difference infrastructure makes,” said Libocor, speaking at a conference of the Association of Leaders in Services for Business Afaceri (ABSL).
He said the flexibility of the workforce is largely dependent on infrastructure that is up to par.
“In the United States, for instance, the workforce is very flexible and people commute. If Romania had decent transport infrastructure, workforce flexibility would no longer be an issue. High unemployment in one region would be countered if excess workforce in Moldavia could commute to work to Transylvania in two hours,” said Libocor.