ABSTRACT
This chapter reviews the process of economic transition to date, before focusing in more detail on the regional disparity situation and the evolving regional policy response. Effective regional development and policy is difficult within the current territorial administrative structure in Romania as the sub-national level is too small and corresponds only to NUTS III of the European Union categorisation. Regional disparities in Romania are caused by a wide range of factors and, while apparently diminishing during the former socialist regime, have become very apparent with the introduction of economic reforms. The considerable economic and political challenges facing Romania in its transition from a very severe socialist regime to a functioning democracy and market economy mean that priorities for development must be set. However, the continued need to ensure national economic growth and combat the deep-seated social impact of the restructuring process mean that there is likely to be a staged response to the need for regional development policy.
