Diagnosis and Strategies of Development in the Region of Gheorgheni

Case study


This specific area that makes the subject of the study is placed in the Eastern Carpathians, in the south part of the Valley Giurgeu, a depression lying between the mountains of Gurghiu and the mountains of Giurgeu, by the River Mures, close to its spring. It includes the town of Gheorgheni and the seven communes that enter in its circle, which are (coming from North to South): Ditrau (Ditrau, Jolotca, Cengeller), Remetea(Remetea, Fagetel, Martonca, Sineu), Lazarea (Lazarea, Ghidut), Joseni (Joseni, Borzont, Bucin), Ciumani, Suseni (Suseni, Chileni, Valea Strâmba, Senetea) si Voslobeni (Voslobeni, Izvorul Muresului). County Harghita is situated in the central region of development, in the neighbourhood of the micro-region formed in the attractive area of the town Toplita, at north, of micro-region "The Salt Land" at west, of micro-region "Felcsik" at south and of county Neamt at east.

The proposed goal is to analyse the present situation of the communes from this area finding solutions in order to solve the problems and indicating some possible directions for future development.

This micro-area surrounded by mountains is one of the coldest areas (5.5 C annual temperature's average) and also one of the rainiest (560-590 mm annual rainfall's average) of the country. The dominant relief forms are: the mountains (49% of the territory) and the depressions (42%). Hills and plateau represent 8% (while the depressions between the valleys 1%) of the total territory of these micro-regions, meaning 113012 ha.

The brown soil represents 67% of the micro-area's soil. The analysis of the soil reveals a great lack of nitrogen and phosphorus. Only 9% from the total of 73192 ha can be considered as containing enough nitrogen and the phosphorus is to be found in sufficient quantities only 6% of the agricultural area. The soils with a sufficient content of potassium represent 17%. These are no areas representing specific natural risks with accidental slips of the land (excepting 16 ha in Voslobeni). Therefore there aren't any zones with frequent and severe slides.

This area is relatively poor in minerals, but one of the advantages is the density of forests. Many mineral water springs can be found.

The stable population of the micro-region on 31st December 1999 was of 55715 people (2.1% from the central region population), 0.4% less than in 1997, and 3.6% more than in 1992, when it was recorded the maximum population in the history of the micro-region. The density of the population is 49.3 inhabitants /square km compared to 77.8 at the level of the central region, 94.3 at the national level and 117.4 at the EU level.

62% of the micro-region population live in the countryside and the urbanising level is 17% lower than the country-average and 22% lower than the average of the central region.

Between 1991-1999 the average rate of the growth of population has a value of -2.5 to 1000 people (-1.1 to 1000 people at the regional level), the emigration rate is -1.33 to 100 inhabitants.

The segment of population between 0-14 years old at the micro-regional level represents 22.1% (20,9% in the countryside, 24.5% in urban areas). Its value is 19% at both regional and national levels. The segment of those over 60 years old is made of 17.2% (20,2% for countryside, 12.3 % for urban areas). At the level of the region is 12.1%, while at national level its value indicates 13%.

The average birth rate between 1991-1999 was of 11 to 1000 people (annual) and the mortality rating was of 13.5 to 1000 people. The ageing rating of the population (60+ /0-14 years old) is of 0.95. The rate of the renewal of the labour force (15-29/30-44 years old) is 1.28.

In Harghita County, where the study is placed, the density of the trading companies in the main urban attraction area (Miercurea Ciuc, Odorheiu Secuiesc, Gheorgheni, Toplita, Balan) shows many differences. On 15th May 2001 in the studied micro-region there were 26 registered companies on 1000 people and a subscribed nominal share capital of 3126.6 millions Lei for 1000 people. The area of Gheorgheni comes on the second place (because Balan is considered a poor area) among the five areas of the country thanks to its 18 registered trading companies.

The total of the economic agents registered in this zone represents 16% of the county's total. Things are not so good concerning the subscribed capital in this micro-region, which is 9% from the total subscribed nominal share capital, the population being 17% of the population of the country. The lack of capital partially explains the problems regarding the labour force engaged in the studied area.

At a percentage of 17% of the total of the population of the county, in this micro-region we find 16% of the total of the limited companies, 15% of the total of the joint stock companies, 21% of the total of the partnerships, 17% of the total of co-operative organisations, 15% of the family associations and only 8% of the total of the natural people registered.

95% of the 1481 limited companies registered in this micro-region are functioning. The limited companies are widely spread as the main form of registration of the companies (88%).

From the amount of 178990 million Lei subscribed social capital in the micro-region, 40094 mil. Lei (22.4%) represent the foreign capital, accordingly to the average of the county. Those 158 trading companies with foreign capital represent 7% of the total registered here. In the country side the number of the economic agents with foreign capital per 1000 inhabitants making a value of 1.6, show the most favourable situation of this kind in the studied area. The same indicator at the micro-region level (including the urban areas) is only 2.8 (4 in the area of Ciuc; 2.9 as a county-average). The foreign capital in the area of Gheorgheni is held in limited companies (93% of the total companies using foreign capital) and in joint stock companies (7%).

The economic agents registered have as first fields of activity: production (37%-mainly in wood industry), trade (37%), services (23%), constructions (2%) and import-export (1%).

On January the 1st 2001 27552 people could be engaged in different forms of labour, 51 % being men. The unemployment rate is of 12%, 2 % higher than the average of the county. The lowest rate is in Remetea (10%) and the worst situation is in Joseni and Lazarea, the villages that are in the very proximity of the town and those affected by the post-revolutionary problems of the urban industries. The living standards are in continuos decline due to the decreasing number of available jobs. Only between 1997-1998 was recorded a fall of 15% on the job market of Gheorgheni.

From the total active labour population in the countryside only 60% are employed since an increased number of rural households has become self-providers of food and they have a minimum income, usually occasional.

It would not be a problem to have the population involved in a great number in agriculture if the others aspects were favourable, including the selling of goods on the market.

A weak capacity of ensuring and diversifying the incomes of the population, especially in the countryside, has been observed accordingly to the analysis made on the flow of the labour force based on the dates provided by AJOFM Harghita and the town halls, 16% of the active rural population work outside the villages where they live. Foreigners take 1% of the jobs in the villages, the flow of the labour force between the villages being low. A part of the labour force market offered meets the demand of Gheorgheni. But according to the results of the analysis the rural population engaged outside their villages of residence and employed in the micro-region urban centre of Gheorgheni can't be over 38% of the total who work away from home. According to the estimations done at least 6% of the active population of the micro-region are working out of it.

Regarding the active population, structured by their field of activity, we don't find great differences between the level of the micro-region and that of the region, 37% are engaged in agriculture, 25% in industry. 21% from the stable rural population are the retired people. In the rural area of the studied micro-region, 39% of the retired persons benefit pensions of CAP.

66% of the unemployment benefit goes to the male segment, since men represent 51% of the population and 53% from the total of the unemployed. 35% of those 3533 unemployed workers registered on 11th May 2001 are out of the dole, 25% have received the unemployment benefit, 9 % have received integration help and 31 % received a support allowance. This micro-region has a central geographical position and infrastructure of roads that connects Moldavia and Transylvania (on East-West direction) and also the northern areas of the county with the centre (on North-South direction). The infrastructure is affected by the relief of the land and the roads are not so well maintained comparing to those in the areas of Bicaz and Ciuc. The road density is 39 km/ 100 sq.km, higher than the average of the centre region - 30 km/ 100 sq. km From the total of 472 km of the roads in the micro-region 25% are modern ones (28% in the countryside). The railway is part of the line 400 and its density is 33 km / 1000 sq. km (the national average is 51.8 km/ 1000 sq. km and for the centre region 47.7 km/ 1000 sq. km).

There are 2481 households in the micro-region, which means 3 inhabitants at one household and 13 sq. m for one person. The investments made in house building and constructions between 1997-2000 are half of what they used to be between 1993-1996 in the micro-region, while they remained the same for the urban areas. 98% of the households are connected to the electricity, the situation is worse for water installations (51% at the micro-region level, 37% in the countryside) and the sewage system. In 2000 the number of subscribers has decreased compared to those in 1997 with 15%, increasing in railway areas with 19%. Gasoline stations can be found in Gheorgheni and Ditrau.

From a total of 113012 ha, 65% meaning 73192 ha is used for agriculture, the forest (32%) and other territories, representing the rest. The arable land consists of grasslands and hay fields (79%) and arable plots (21%). In 1999 the arable plots were used as follows: 19% (wheat), 12% (oat), 20% (potatoes), 3% (vegetables), 25 % (fodder), 19% (barley), 2% (left uncultivated). There are good results in cultivating potatoes. There is 1.3 ha land for agriculture per person. Each tractor covers 32 ha of the arable land, comparing to 57 ha at national level.

There are excellent conditions for growing animals but their number has been decreasing from 1997 until 2000: it fell down 68% for the horned cattle (the year 2000 total: 8832), to 61 % for the swine (2000 total: 7033), to 81% for the sheep (2000 total: 13895) and to 93% for chickens (2000 total: 49600).

In 1997 there were 38 UVM/100 ha, 5 UVM more than the average of the center region. The cow milk production went down from 1997 until 2000, but this decrease is relatively slower (at 87%) than the decrease of the total number of horned cattle. The explanation is the improvement of the quality of the horned cattle left and the tendency of the producers to specialise on cow milk production. 52% of the total of 165461 hl cow milk (obtained in 2000) is turned to good account - 15% of the total production is sold directly, 36% is sold through the collecting centres- and self consumption represents 33 %. The most important unit for milk processing is S.C. Industrialisation of Milk S.A. of Remetea, that uses modern technologies, but at only 40% of its capacity. The main product is powder milk, but they are also producing butter and consumption milk etc. As about processing 2753 t meat produced in the studied area, we mention seven relatively small units from Gheorgheni (for slaughtering and processing the resulted meat).

The environment is quite satisfactory clean, there are large forests and clear mountain springs. Only 65% of the agricultural area of the micro-region is not degraded.

We must mention the impressive potential of tourism: Lacu Rosu, Cheile Bicazului, Izvorul Muresului, Castle Lazarea, the churches of the villages, Kilometer 4 station, the forests and the rivers of this area. Being surrounded by resorts and places like: Praid, Sovata, Borsec, Lacul Izvorul Muntelui, Baile Tusnad, Moutains Calimani, gives to this micro-region the advantage of receiving and hosting tourists who will go for discovering the attractions of Eastern Carpathians. Having all these given, and considering the opportunities, is relatively easy to organize programmes for the tourists. We can find here 22% of the accommodation units of the county, but only 14% from their total seats/places (17% out of the county population). At level of the county in 1999 there were recorded 40 over night stands for each accommodation seat (from these 35 were done by Romanian tourists). These dates show us that the capacities are not fully used and exploited. There are 58 households included in the agro-touristic net.

The two associations located in the studied area are co-operating. I consider one of these two associations as being weaker (the one from north-west of Harghita) because the links and the roads between the communes are insufficient. Therefore I reckon that a full collaboration is absolutely necessary at the level of the whole depression, or at least the creation of micro-regional associations of the communes of the attraction area of Gheorgheni. Another association could be made of the villages from the attraction area of Toplita. The proposal is based on the geographical, infra-structural, cultural, economical conditions and also on the flow of the labour force

The proposed fields of development:

1. agricultural development and the development of goods processing;
2. development of wood processing industry;
3. tourism, rural tourism and the development of its infrastructure.

Aimed objectives and priorities:

1. supporting the growth of the income of the population, varying activities and creating lasting jobs in private sphere;
2. environment protection, architectural and cultural values of the micro-region;
3. improving the living conditions;
4. increasing economical efficiency.
The proposed measures in order to achieve the objectives in the fields mentioned above (ex: measure x.y.z. is the measure no z. in order to achieve the objective y of x field).

Agricultural and Goods Processing Development
1.1.1. Support the initiatives regarding market survey of food products
1.1.2. Sustain the investments for depositing potatoes in towns nearby
1.1.3. Supporting initiatives, which create favourable conditions for diversified crop
1.1.4. Encouraging initiatives of association, organising training in order to explain the role of association
1.1.5. Sustaining vertical integration and rising the degree of the processing of the end-product ( for example agricultural units that want to buy animals)
1.1.6. Encouraging investments in units of processing and supplying agricultural and food products and supplying of the area (for example processing units of meat, potatoes, mushroom and forest fruits etc.)
1.2.1. Measures for preventing erosions and soil degradation
1.2.2. Merging of the ground and better roads locations
1.2.3. Preventing water and soil pollution
1.2.4. Extension of forests
1.3.1. Supporting construction investments (offices of the households and new constructions), which refer to the typical architectural style of the places
1.4.1. Sustaining initiatives for the improvement of agricultural machinery parks and of the latest production technologies
1.4.2. Managers' and agents' professional improvement

The Development of the Wood Processing Industry
2.1.1. Creating an efficient international marketing in order to sell wood products under better conditions
2.1.2. Rising the processing degree
2.2.1. Supporting carftsmanshift, the revival of the old traditions
2.2.2. Supporting investments in the residue materials of this industry
2.4.1. Improving the technology
2.4.2. The development of human resources

Tourism, Rural Tourism and the Development of Its Infrastructure
3.1.1. Creating a correct, well-oriented promotional campaign abroad ( we must avoid the clients disappointment, the target proposed on short terms is youth and the slogan might be "adventure and challenge")
3.1.2. The development of roads and telecommunications (especially those towards the west)
3.1.3. The diversification of tourism services
3.2.1. Preserving places' peculiarities
3.2.2. Protecting natural and architectural values
3.3.1. Developing a gas (absent) and water sewage network
3.3.2. An efficient exploiting of the possibilities of rural tourism
3.4.1. Improving the quality of the services and developing human resources
3.4.2. Creating a data base on micro-regional level
3.4.3. The necessity of a digital phone company in rural area (there is Internet only in Ciumani and Lazarea)

Bibliography:

1. Evidenţa statistică a primariilor şi oficiilor poştale comunale (anul 1999).
2. Vincze Mária (2000): Dezvoltarea regionalã şi ruralã. Idei şi practici. Presa universitarã Clujeanã, Cluj-Napoca

3. ***CAP 2000. Rural Developments, European Commission DG VI, Working Document, July 1997
4. ***Fişa localitãţ ilor (1997-1999), INSSE, Direcţia Generală Harghita
5. ***Criterii şi indicatori în determinarea disparitãţ ilor teritoriale ale gradului de favorabilitate-dezvoltare din judeţul Harghita. DGAA Harghita, Dezvoltare ruralã, 1998
6. ***Situaţia societăţilor comerciale înregistrate în judeţul Harghita (15.05.2001), Camera de Comerţ şi Industrie Harghita 7. ***Evidenţa statistică a AJOFM Harghita (3.05.2001

Györfy Lehel-Zoltán

Faculty of Economics

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