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Jeffrey Franks (IMF): Improvement in labor efficiency and productivity, a key to Romania's economic growth

Romanian economy could grow especially by increasing labor productivity and efficiently using workforce and investments, head of the IMF mission to Romania, Jeffrey Franks, declared on Wednesday, as cited by sources who attended the meeting of the IMF mission with members of the Economic and Social Council (CES).

Romania's economy can grow by building up capital value, increasing workforce or boosting productivity. Workforce can be increased by expanding the number of employees or work hours, but the key lies in boosting productivity, the manner workforce and capital are being used, said the IMF mission head, according to the cited sources.

During the meeting, Franks underscored that productivity can be heightened through better organization, by increasing workforce training and by equipment modernization.

The sources that participated in the meeting also said that Jeffrey Franks advised investments not be diluted in too many spots and pointed to the important role the improvement of infrastructure - both the road, and the information technology & telecommunication network - can play in enhancing productivity.

Also, curbing bureaucracy and facilitating company compliance with labor legislation may contribute to better productivity, and when the public sector works well, the private one also sees improved operation, Franks added.

Improving infrastructure requires a higher absorption rate of EU funding, which can generate investments without widening the budget deficit, Jeffrey Franks also said.

The head of the IMF mission mentioned that participation in the labor force in Romania is among the weakest in the EU 27 and efforts have to be made for the reintegration into the labor pool of the jobless, of the people who gave up seeking a job, and of the young.

Sursa: http://www.agerpres.ro

Tags: productivity workforce labor franks jeffrey