Possible Ways and Means for an Enhanced Partnership between the Finance Resources Owners and their Local Beneficiaries in Romania

Abstract

In this work, we present some reasons why the financial institutions and the entities active in the Romanian economy have to strengthen their institutional partnership, for the benefit of the entire community. We also analyze the economic factors that interfere into this partnership, and also the possible ways and means of optimization. The study and, particularly the proposed solutions may represent a viable option for an efficient management of the development process of the local communities in Romania. We bring scientific and practical arguments that there is a big need for this partnership, as currently, we are experiencing a big lack of mutual trust that is perceived as a gap in the cooperation between the owners of financial resources, on one hand, and the entrepreneurs and the public authorities, on the other hand. Looking from a European perspective and also from the historical evolution, in Romanian’s case, local economic development is a challenge that must be achieved by valuing any available resource at its best. Local resources are not always enough for financing the development needs of the communities. For progressing, they must be completed with borrowed sources. The banking loan, although it includes collateral costs and risks, represents a resource that must be used accordingly, for not losing the development opportunities. The capital insertion on the local market by banking loan generates an economic increase, social development, and can offer new working places to the local community members. Good knowledge of the lending needs, of the advantages, of the costs but also of the associated risks of the lending activity is essential for fully benefiting of such a resource in the local and regional economic and social development process, for the benefit of all the involved parties.