DEVELOPERS BUILDING COMMUNITIES IN INVESTMENT MIX
May, 2018 / Volume 22, Issue 4
www.business-review.eu
6
ANA ASLAN INSTITUTE REGAINS ITS YOUTH
18
LOCAL COMPANIES SPEED UP INVESTMENTS ABROAD
24
20/20 VISION: 20 LESSONS FROM 20 TOP MANAGERS
28
The power of machines
www.business-review.eu Business Review | May 2018
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi • Deputy Editor-in-Chief •
6 Property developers building communities in investment mix
COVER STORY
Digits versus workers Around 85 percent of the jobs that today’s students will be doing in 2030 haven’t been invented yet, says a study conducted by the Institute for the Future and Dell Technologies. Should this figure
10 How digitalization is reshaping the jobs of the future
FOREIGN INVESTMENTS
concern us or should we see it as a great opportunity for the global workforce? A major part of our daily lives, regardless of our age or professional background, technology has left its imprint on every aspect of our doings, at home and at work. But when it becomes a real threat to our jobs – as we know them today – a series of negative scenarios emerge. As Jack Ma of Alibaba Group puts it, “If we do not change the
24 Local companies
way we teach, 30 years from now, we’re going to be in trouble. The
speed up investments abroad, but from low base
knowledge-based approach of 200 years ago would fail our kids, who would never be able to compete with machines.” While other, more developed economies have already adopted technology in many fields, Romania is still lagging behind its Eu-
CITY
ropean peers. More importantly, Western countries have reshaped their education systems in order to prepare the next generations of employees to cope with the ongoing “digital revolution”. Will Romania be able to adopt the same strategy, given that in 2014 it was ranked 31st out of 40 countries for the quality of its education system, based on expenditure per student, GDP and graduate ratio? The acquisition of digital skills is not enough on its own. But changing all other courses in order to deliver the information, carry out the assessment and offer feedback, all by using technology, could be a solution.
40 TIFF top tips 42 Film review 44 Expat eye 45 Restaurant review 46 Calendar
FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Ioana Erdei, DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Ovidiu Posirca, Anda Sebesi JOURNALISTS: Anca Alexe, Georgeta Gheorghe, Romanita Oprea, Oana Vasiliu COPY EDITOR: Debbie Stowe, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu, SALES MANAGER: Alexandra Rosca, EVENTS DIRECTOR: Alina Moldovan, EVENTS MANAGER: Mara Dragoiu, MARKETING: Eugenia Pupeza, PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
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ISSN NO. 1453-729X
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4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
The restaurant chain counts more than 70 units Ram Addanki has been appointed director of operations for Central and Southern Europe at British American Tobacco (BAT). The South Central Europe Area (SCEA) includes eight countries that report to Romania as of the end of 2017: Bulgaria, Serbia, Albania, Macedonia, Bosnia-Herzegovina, Montenegro, Slovenia and Croatia, as well as Kosovo. Addanki joined BAT in 1994. Since then, he has had responsibilities for several regions, with a global perspective of the company.
Salad Box chews over expansion in India and Japan
India and Japan as he is look-
By Ovidiu Posirca
large player on each market. In
ongoing negotiations with one
more than 70 restaurants, and
India, the talks are with Indian
fast-food restaurant chain
operations in international cities
conglomerate Mahindra, which
specialized in salad and fresh
such as London, Amsterdam,
also has an agricultural arm.
food, plans to open up on the
Paris and New York. “Next week
Meanwhile, Narcoffee Roast-
Indian and Japanese markets
we will launch the first restaurant
ers, the café chain in which
this year, continuing an expan-
in Rotterdam. Next month we
Isai is a shareholder, will open
sion process that has taken the
will expand to Ireland with three
a new branch in Cluj-Napoca,
brand to 11 countries on three
units – two in Dublin and one
while in Bucharest it will add
continents.
in Cork,” he told BR on April 20.
two or three new locations.
For this year, Isai said the focus
The company also opened a
started in 2012, when Dan Isai
would be on the consolidation
unit in Prague and its develop-
opened the first restaurant in
of the management team for the
ment plans include the launch
Cluj with three close friends.
mother company and the acceler-
of cafés in Milan, London, Los
The location was so popular
ation of operations on new chan-
Angeles and New York. The
that the founders added 12
nels, including online delivery
group that includes Salad Box
more restaurants in just one
and drive-through facilities. Later
currently has nine concepts in
year. The company now has
this month, Isai will travel to
the food industry.
Viavi Solutions opens R&D center in Bucharest By Aurel Dragan US-based Viavi Solutions has
as well as the success of our
opened a Bucharest office,
customers,” said Oleg Khaykin,
which includes a center of
president and CEO of Viavi.
excellence of research and development. The company is a global sup-
Locally, the company aims to hire around 120 professionals, with medium and high qualifica-
plier of testing solutions, mo-
tions in software developing, on
toring and optimizing networks
top of the 25 already in place.
for communications operators, both cable and wireless.
page 5
markets. He said that there are
Salad Box, the Romanian
The story of Salad Box
Juan Canellas Balanza is the new chief sales officer of NN Life. Prior to joining the leadership team and board of NN Life Insurance, Balanza had been chief sales officer of Nationale Nederlanden Poland for the past three years, playing a key role in further strengthening sales of protection and expanding multichannel distribution. He joined NN Group in 2000, going onto hold multiple management positions within NN’s operations in Spain and the Netherlands. Balanza has a marketing and commercial management degree from ESIC Business School in Madrid and an Executive MBA from the Madrid-based Instituto de Empresa (IE).
ing to take Salad Box to new
Officials say Viavi is ready for the transition to fifth generation
“Bucharest is a technologi-
wireless systems and expect tests
cal hub in full development and
for 5G antennas to start in Roma-
it will boost our leader status
nia this year.
The company aims to create 120 new jobs
www.business-review.eu Business Review | May 2018
NEWS 5 Photo: Dreamstime
There is unfair competition in the industry, say players
Labor market pressure hits local hotel managers
and they have a more certain future,” Murad told BR. He says that hiring more foreign
Oana Iancu has been named as Business Lease’s new commercial manager for Bucharest and Cluj. She will coordinate commercial and marketing operations, being responsible for the development of the company’s operations on the local market and reporting directly to Philip Aarsman, general director of Business Lease Romania. Iancu has over 19 years of experience in the mobility solutions market, having held strategic positions in several companies.
workers could ease the pressure, but the problem is that
By Anca Alexe
Romania limits the number
Coastal business owners are
the future, according to Muham-
of work permits to 10,000 per
having an increasingly hard
mad Murad, the leading investor
year, whereas “we need around
time finding seasonal workers
in the Romanian seaside and the
300,000.” Meanwhile, Ioan
to provide essential services
president of the Romanian Tour-
Micula, owner of several hotels
in the Romanian tourism
ism Business Owners’ Federa-
in popular seaside resorts such
industry. As a result, they are
tion. “When Romanians go to
as Mamaia and Neptun, says
urging the government to make
other countries, they work really
that a significant cause of the
it easier for them to hire foreign
hard. Those who stay in Romania
workforce crisis is the exis-
workers. Romania’s business
don’t put as much effort into it
tence of a black market. “Those
environment is not in the best
due to the general state of the
who are paid off the books are
shape and this is also felt by
nation and the lack of stability.
unfairly competing with those
employees – workers are suf-
Romanians who want to work
employed legally, which is why
fering from fear, desperation,
hard tend to go abroad, where
these problems appear,” he
instability and uncertainty for
there are more rules, more clarity
commented.
Ana-Maria Paslaru is the new managing director for the Baltic countries at Unilever. The Baltics are a business entity in Central and Eastern Europe, a region of which Unilever South Central Europe is part. Paslaru has been marketing director of home & personal care USCE & CEE home care since 2015. She began her career at Unilever in 2007.
Nilanjan Nag is the new head of the transfer pricing team of PKF Finconta. Nag hails from India, where he had worked for Deloitte’s transfer pricing department for the past nine years, after spending two years in a similar department at PwC. He graduated from the University of Calcutta’s Accounting Faculty and has a master’s degree in Business Management from the National Institute of Technology in West Bengal.
www.business-review.eu Business Review | May 2018
6 REAL ESTATE
Property developers building communities in investment mix Investors in the Romanian real estate sector are upping their game and looking to integrate communities more deeply in the development of their projects. By Ovidiu Posirca
Oromolu House, built in 1927, was restored as part of the development of the Aviatorilor 8 office project
F
rom urban rejuvenation to invest-
infrastructure made up between 3 and 10
urban, high sums were spent on connection
ments in road infrastructure, develop-
percent of hard costs,” Oana Stamatin, associ-
to utilities, electrical substations and gas con-
ers have produced a raft of initiatives
ate director, real estate management services,
nection works.”
that help their core business but also improve
at Colliers International Romania, the real
life in the city. This entails additional costs on
estate consultancy firm, told BR. “Mainly,
ditional investments are needed to make the
the developer’s side.
the costs were attributed to work on roads,
overall piece of real estate more viable.
“Based on our analysis, construction
roundabouts, deceleration lanes and bridges
Stamatin suggested that, sometimes, ad-
“There are cases when the building
costs increased the most for shopping center
over national roads. Also, depending on
permits obtained for developments are
developments, where investments in urban
the location of the projects, even if they are
conditioned by additional investments in the
www.business-review.eu Business Review | May 2018 2016
COVER REALSTORY ESTATE14 7
ISHO project also features investments in urban infrastructure
infrastructure that surrounds the project, in
redesign of a green area close to its mall.
Immochan has invested EUR 340 million in Brasov
Talking about a sense of community, the
order to more easily connect the project to
In the mixed-use Palas Iasi project, the
developer said that ISHO will have a center
the community and to avoid traffic conges-
company put over EUR 73 million into the
that will host cultural events alongside one
tion,” said the associate director.
construction of the largest underground
for conferences.
HOW DEVELOPERS APPROACH INVESTMENTS IN THE COMMUNITY
parking lot in the country, with 2,500 spaces.
Moving to Brasov, real estate developer
A park of 50,000 sqm was built following an
Immochan says that it is working on the con-
investment of EUR 2.5 million.
cept of community animator for the Quartier Coresi. The company has projected the devel-
Among the developers that have made large
Elsewhere, Ovidiu Sandor has planned
investments in infrastructure is Iulius Com-
several investments of public utility at the
opment of 100 hectares, around 8 percent of
pany, controlled by Iulian Dascalu.
mixed-use project ISHO Timisoara, which
Brasov’s useful area, for the next decade.
The developer has invested in urban
has office and residential components. It
The first stage of Coresi Shopping Resort,
infrastructure in Iasi, Cluj and Timisoara. For
will feature a nine-storey car park and a
which has commercial, residential and busi-
instance, it put EUR 12.6 million into the first
pedestrian area close to the project. Sandor’s
ness amenities, covers 24 hectares and is
multistorey car park in Timisoara, built on
company Mulberry Development will also
based on a EUR 70 million investment.
the grounds of Openville, the EUR 220 million
build a four-lane boulevard that will cross the
mixed-use project under development.
ISHO neighborhood on the north-south axis.
lights and sound system, Coresi offers all
“Equipped with a physical stage with
The developer has said that this investment
the city’s organizations (associations, clubs,
investments in urban infrastructure are
will bring back to life the city’s historic Traian
schools ...) an event venue in the colors of
planned there, including the widening of two
Market. The boulevard will be donated to the
the city. This concept – the center as a stage
streets near the complex and a car tunnel that
municipality once completed. The bike lanes
for the community – was first formalized at
will cross the project from east to west. The
and vaporetto station will be available for all
Coresi Shopping Resort. In addition to the
underground structure will be donated to the
citizens to use.
city’s actions, Coresi supports the ‘365 events’
Company officials told BR that additional
municipality once completed.
Mulberry Development told BR that it also
animation program with an action plan that
handled a large part of the design of the city’s
combines entertainment with education – un-
is also looking to build the county’s first
second ring road, alongside the bridges that
der the concept of edutainment,” Immochan
suspended park, which will cover over 55,000
will also be donated to the city.
representatives told BR.
At Openville Timisoara, the developer
The company is currently developing the
sqm. The park will include a lake, a square for
ISHO Office is designed to consist of
events and fountains. It will be located on top
50,000 sqm that will be delivered in three
residential project Coresi Avangarten, along
of an underground parking lot. In Cluj, Iulius
stages by 2020. It will feature 1,200 apart-
with Kasper Development, on the site of the
Company invested over EUR 2 million in the
ments.
former Tractorul plant. The investment in
www.business-review.eu Business Review | May 2018
8 REAL ESTATE
overall community has been more visible in the field of heritage buildings. For instance, Oromolu House, built in 1927 by Mihai Oromulu, governor of the National Bank, was restored as part of the development of the Aviatorilor 8 office building in central Bucharest. The office block was developed by New Europe Property Investments (NEPI) following an investment of EUR 37 million. Moving to the center-west of the city, Hanner is looking to build a mixed-used project with a strong focus on Romanian entrepreneurship. The project will be developed on the grounds of the former Luther brewery. Three buildings from the former project are historic monuments and will be integrated in the new scheme, which includes investments in residential and co-working components. Elsewhere, S IMMO AG is working on The Developers are looking to turn their projects in meeting points for the communities
Mark office building in the Buzesti-Grivitei area, which has long suffered from a negative perception and had been avoided by major investors. With the new Uranus Boulevard opened, the developer has kicked off the
the first 1,000 apartments, which includes all
ing cities and communities on the long term
construction of the office building, which will
infrastructure and public works for the urban
and having a positive impact on all the stake-
have a gross leasable area of around 22,500
regeneration of about 28 hectares, amounts to
holders involved,” said Immochan officials.
sqm. The company will invest over EUR 45 million in the project. Its developer has been
EUR 50 million. “Furthermore, 2.5 km of road construction was done and 10 hectares of land donated
DEVELOPERS’ EXPERIENCE IN BUCHAREST
one of the supporters of finding sustainable
In Bucharest, developers’ contribution to the
solutions for revitalizing the Buzesti area.
to the City Hall for the execution of the road infrastructure needed for the new project. The cost of systematization work amounted to EUR 10 million,” said the developer. The company has also integrated Coresi Business Park in its district, following an investment of EUR 50 million. In the next decade, the park will cover around 100,000 sqm. Up to now, the company says it has regenerated 70 hectares after investments of EUR 340 million, and if the development pace is maintained it will reach EUR 700 million. In Satu Mare, where Immochan has bought 7 hectares of land, the developer wants to build a strip mall and residential project. It will also feature a community hub that aims to support the city’s cultural and social life. “From our experience and perspective, local authorities are becoming more and more aware that cities need private investors for sustainable and swift development. They are open to partnerships that contribute to build-
Development of road infrastructure in Coresi complex
10 COVER STORY
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www.business-review.eu Business Review | May 2018
COVER STORY 11
HOW DIGITALIZATION IS RESHAPING THE JOBS OF THE FUTURE By Anda Sebesi
Digitalization has already refashioned some industries and jobs, and on the medium to long term it will reset the entire business environment. So it is crucial for the local education system to give generations of future employees the right education to help them cope with life in the “digital workforce”.
“
If we do not change the way we teach, 30 years from now,
of two extreme perspectives about the future: the anxiety-driven
we’re going to be in trouble. The knowledge-based approach
issue of technological unemployment or the optimistic view of
of 200 years ago would fail our kids, who would never be able
tech-enabled panaceas for all social and environmental ills.
to compete with machines,” says Jack Ma of Alibaba Group. More than a third of UK jobs could be at high risk of automation
By framing the relationship between humans and machines as a partnership, Dell’s study says that we can begin to build capacity in
by the early 2030s and robots could take over 38 percent of current
machines to improve their understanding of humans, and in society
US jobs in the next 15 years, says a report released by PwC, cited by
and organizations, so that more of us are prepared to engage mean-
Emerging Technologies’ Impact on Society & Work in 2030, a study
ingfully with emerging technologies. However, society is about to
conducted by the Institute for the Future and Dell Technologies.
enter a new phase, characterized by even greater efficiency and
In addition, the tasks and duties workers will perform will be markedly different from what they have studied. The same study
possibility than before. As processing power increases tenfold every five years, hu-
says that around 85 percent of the jobs that today’s learners will be doing in 2030 haven’t been invented yet. By 2030, people will create new work infrastructures to acquire the skills and knowledge they will need to do their jobs successfully. They will routinely improvise, learn from each other, and make their own way. Some will rely on past work experience, frameworks, or mental models. Others will experiment across different platforms, discovering their own workarounds and pioneering their own innovations. These factors combined will seriously challenge traditional establishments. By 2030, in-the-moment learning will become the modus operandi, and the ability to gain new knowledge will be valued above the knowledge people already have, says the study. Recent conversations, reports, and articles about the intersection of emerging technologies and society have tended to promote one
mans will be eclipsed by computers in many areas, says the study. Machines will bring lightning speed and accuracy to all manner of tasks. However, it would be a fallacy to assume that technol-
www.business-review.eu Business Review | May 2018
12 COVER STORY
ogy is making human effort
seeking out the best talent for
redundant. It’s doubtful that
a task. Instead of expecting work-
computers will have fully mastered the fundamental,
ers to bear the brunt of finding
instinctive skills of intuition,
work, companies will com-
judgment, and emotional intel-
pete for the best resources to
ligence that humans value by
complete the job. Reputation
2030. Over the next decade,
engines, data visualization,
partnering with machines will
and smart analytics will make
help humans transcend their
individuals’ skills and com-
limitations. Human-machine
petencies searchable, and orga-
partnerships will enable people
nizations will pursue the best
to find and act on informa-
talent for discrete work tasks. The ability to orchestrate
tion without the interference of emotions or external bias,
both physical and human
while also exercising human
resources will make it possible
judgment where appropriate.
for organizations to activate,
They’ll learn to team up with
deactivate, and deploy re-
technologies integrated with
sources to wherever and when-
machine learning tools to help
ever they are needed. Not only
activate and deactivate the
will this make the organization
resources they need to manage
leaner and more competitive,
their daily lives.
it will also reduce fixed costs and overheads, and put them
By 2030, work expectations will reset and the landscape for
on the path to becoming more
organizations will be redrawn,
agile and profitable. However,
as the process of finding work
none of this is assured. To pre-
gets flipped on its head. As an extension of what is often referred to
pare for 2030, organizations will need to build out their capacity to
as the “gig economy” today, organizations will begin to automate
disaggregate the tasks and duties of jobs, as they are designed today.
how they source work and teams, breaking up work into tasks, and
ROMANIA LAGS BEHIND ITS EUROPEAN PEERS…
Local education system in numbers
So, in such a challenging context and amid an unknown perspective of the future workforce, how should Romania train the new generation to prepare it to cope with a totally different working environment driven by the digitalization process? According to the National Institute of Statistics (INS), there were about 540,000 preschoolers in the 2015-2016 school year, while the
Over 40 percent of Romanian students don’t have the basic skills of so-called modern alphabetization (according to the OECD);
number of primary and secondary school pupils reached 1.7 mil-
In 2014 Romania was ranked 31st of 40 countries for the quality of its education system (based on expenditure per student, GDP and graduate ratio), according to Pearson;
Romanian high schools. This means that about 3 millions Romanian
Romania was ranked 108th of 144 countries for the quality of its education system (a system that meets the needs of a competitive economy), according to the World Economic Forum’s 2013 Global Information Technology Report;
“Stats show that Romania is not very competitive when it comes
Romania’s public investment in education is 2.9 percent of GDP, or USD 1,445/student, compared with 4.8 percent of GDP or USD 15,667 in Germany; Romania has one of the smallest proportions of highly qualified workers in the EU and one of the highest shares of low qualified workers (according to the EC Report). Source: D&D Research
lion. The same stats say that there were some 680,000 students in youngsters will plunge into the tumultuous waters of the future workforce ocean, facing a totally different working environment. to training children and youngsters. It has one of the poorest education systems in the European Union and there is little chance it will change in the near future,” says Dragos Iliescu, professor at the Faculty of Psychology and Education Sciences within the University of Bucharest and president of the International Test Commission (ITC). “At the same time, in Romania some highly qualified jobs are not needed yet so we could cynically ask why we should train youngsters if the local labor market is not able to offer them a job,” adds Iliescu.
www.business-review.eu Business Review | May 2018
14 COVER STORY
… HOW TO CATCH UP?
own development,” adds the
According to Iliescu, focusing
KPMG partner. This is all part of what Carol
the local education system on the skills that will be most
Dweck at Stanford has called
useful in the next decade
a growth mindset – the belief
could be a solution. “But this
that one’s talent is not 100
would mean giving up some
percent inherited at birth and
traditional subjects – which is
that individuals can grow and
a radical and unlikely move
develop, with failure being a
in Romania. My opinion is
natural part of the develop-
that even the rethinking of
ment process. Having more
the whole curriculum in order
teachers embrace such con-
to focus on digital skills will
cepts can make a huge impact
not have a significant impact,
on children’s development of
because it is difficult to predict
the critical skills required in
what the labor market will be
the new era of work. According to the World Eco-
like in the next 45 to 60 years,” says Iliescu. Flexibility, the
nomic Forum, over 35 percent
capacity to reorient on the
of the skills that are important
labor market, to learn new
for success at work will change
things and remain competitive
in the next three years, with
in a fast changing environment
creativity and emotional intel-
and to constantly access new
ligence being high on list of the
information will be crucial
top skills needed in 2020. “We would also like to see
skills for the future. “Those students who learn how to
more initiatives like ‘Scoala
solve problems using complex
Altfel’, which will help stu-
arguments and have critical
dents and pupils adapt to the
thinking along with the capac-
requirements of the workplace more easily, for example:
ity to be self-learners are more likely to adapt to the labor market in the future,” says Iliescu. According to Madalina Racovitan, partner at KPMG and head
practical days for high school students, at least three months of mandatory internships for bachelor`s degree students and at least
of people services, there are several important steps to prepare
six months for master’s degree students, mandatory financial and
children and students for the new era of work. “If you look at what
IT classes from day one in school, mandatory internship programs
is happening on the labor market, and how the nature of work is
in companies for teachers, business hubs hosted by schools, where
changing, memorizing and ‘processing’ large amounts of informa-
students can learn more about business, technology, finance and
tion and IQ alone will not be sufficient to ensure success at school or
accounting,” adds Racovitan.
at work. With the introduction of advanced technology in the work-
As Racovitan says, Romanian talent is quite competitive globally.
place, we need education systems that take skills like creativity,
“Romania is a very attractive outsourcing destination and it is the
emotional intelligence, critical thinking, and teamwork seriously,”
fastest-growing market for outsourced IT services in the European
says Racovitan.
Union,” she says.
Although there are many passionate teachers who are truly com-
But Iliescu of the University of Bucharest warns that there is a
mitted to the development of their students and encourage them to
significant gap between Romania and its European peers when it
be creative, the local education system needs more than dedicated
comes to the qualifications of the local workforce. “A less quali-
individuals. “Stakeholders like public authorities, schools, civil
fied workforce means individuals with fewer opportunities on the
society and the business community should all play a role,” says the
labor market and with a poorer contribution to economic growth.
KPMG representative. In her opinion, it is time for our education
Plus, they are obliged to accept low-skilled and low-waged jobs
system to focus more on “right brain abilities” like creativity and
which contribute less to their wellbeing and are at high risk of being
emotional intelligence, which will be real assets to individuals com-
destroyed by technology,” says Iliescu.
peting with robots in the workplace. “We should also get used to
As Racovitan of KPMG puts it, technology can offer us new trans-
thinking differently in schools and at work – a new mindset, accept-
formative and interactive ways of learning and the main challenge
ing various answers to one question, thinking less about the ‘right’
is enhancing education by integrating technology into classrooms.
one, and accepting failure as a part of the creative process and our
“A first step can be improving internet access in schools and provid-
www.business-review.eu Business Review | May 2018
ing students with laptops or tablets. I also believe it is crucial to enable students and pupils to gain access to up to date information
COVER STORY 15 some advanced economies. Even if there is enough work to ensure full employment by
and to offer the infrastructure that will allow both students and
2030, major transitions lie ahead that could match or even exceed
teachers to take advantage of all the opportunities and resources
the scale of historical shifts from agriculture and manufacturing.
brought by technology. For this, I believe cooperation between the
The firm’s scenarios suggest that by 2030, 75 million to 375 mil-
private and the public sector is important, as it is hard to believe
lion workers (3 to 14 percent of the global workforce) will need to
that the education system will receive the required budgets to cope
switch occupational categories. Moreover, all workers will need to
with technological advancements.”
adapt, as their occupations evolve alongside increasingly capable
Iliescu argues that digital skills are much more than a separate
machines. Some of that adaptation will require higher educational
set of skills that complement traditional ones. The digitalization
attainment, or spending more time on activities that require social
process that modern society now faces can spread rapidly, so that
and emotional skills, creativity, high-level cognitive capabilities
different facets of technology become part of all aspects of our
and other skills that are relatively hard to automate.
lives – from programming the washing machine, to buying a plane
Last but not least, the study shows that income polarization
ticket, writing an article, interacting with friends or implementing a
could continue in the US and other advanced economies, where
project at work. “The acquisition of digital skills is not enough on its
demand for high-wage occupations may grow the most while
own. In my opinion, the introduction of a digital skills course will
middle-wage occupations decline— assuming current wage struc-
not have as significant an impact as changing all the other courses
tures persist. Increased investment and productivity growth from
in order to deliver the information, carry out the assessment and
automation could spur enough growth to ensure full employment,
offer feedback by using technology,” adds the academic.
but only if most displaced workers find new work within a year. If reemployment is slow, frictional unemployment will likely rise in
WHAT MCKINSEY SAYS ABOUT THE FUTURE
the short-term and wages could face downward pressure. These
According to a recent study conducted by McKinsey Global Institute
wage trends are not universal: in China and other emerging econo-
(MGI), Jobs Lost, Jobs Gained: Workforce In a Time of Automation,
mies, middle-wage occupations such as service and construction
released in December last year, automation technologies including
jobs will likely see the most net job growth, boosting the emerging
artificial intelligence and robotics will generate significant ben-
middle class.
efits for users, businesses, and economies, lifting productivity and economic growth. The extent to which these technologies displace workers will depend on the pace of their development and adoption, economic expansion, and growth in demand for work. Even as it causes declines in some occupations, automation will change many more – 60 percent of jobs have at least 30 percent of constituent work activities that could be automated. It will also create new roles that do not exist today, much as technologies of the past have done. While about half of all work activities globally have the technical potential to be automated by adapting today’s technologies, the proportion of work actually displaced by 2030 will likely be lower, because of technical, economic, and social factors that affect adoption. McKinsey’s scenarios across 46 countries suggest that between almost zero and one third of work activities could be displaced by 2030, with a midpoint of 15 percent. The proportion varies widely across countries, with advanced economies more affected by automation than developing ones, reflecting higher wages and thus economic incentives to automate.
Top 10 Skills In 2020 1. Complex Problem Solving 2. Critical Thinking 3. Creativity 4. People Management 5. Coordinating with Others 6. Emotional Intelligence 7. Judgement and Decision Making 8. Service Orientation 9. Negotiation 10. Cognitive Flexibility
In 2015
could help offset the displacement of workers. Additional invest-
1. Complex Problem Solving 2. Coordinating with Others 3. People Management 4. Critical Thinking 5. Negotiation 6. Quality Control 7. Service Orientation 8. Judgement and Decision Making 9. Active Listening 10. Creativity
ments such as in infrastructure and construction, beneficial in their
Source: Future of Jobs Report, World Economic Forum
The same study says that even with automation, the demand for work and workers could increase as economies grow, partly fueled by productivity growth enabled by technological progress. Rising incomes and consumption, especially in developing countries, increasing health care for aging societies, investment in infrastructure and energy, and other trends will create demand for work that
own right, could be needed to reduce the risk of job shortages in
www.business-review.eu Business Review | May 2018
16 COVER STORY
OPINION Dan Petre, Phd., partner at D&D Research
The impact of the digitalization process on the local workforce portunity costs for the entire local economy, which translates into a significant slowdown of the rate of development generated by the lack of workforce, be it qualified/digitalized or not. All sectors are already or will be highly affected by the digitalization phenomenon. Here are some of those which digitalization has already impacted or will have a significant positive or negative impact: TECHNOLOGY INDUSTRIES / IT – Romania has a significant advantage in this field, which I think could be maintained and developed if this sector continues to be seen by the Romanian state as a strategic one for economic development. CREATIVE INDUSTRIES (MAINLY MARKETING AND ADVERTISING) – Romania has a competitive advantage in this sector in Eastern Europe, being one of the countries with the most awards won at international festivals and with the largest number of regional creative directors. AGRICULTURE – the reality is that the conventional agricultural model is obsolete and has become a real brake on the development “I would start from one of the most famous
mainly the ‘old economy’ in general and sectors
of this sector. The polarization of the work-
aphorisms about technology and digitali-
like services and construction in particular. I
force is probably strongest in this sector and
zation, coming from William Gibson, a SF
would also include here the majority of employ-
so it is easiest to see it. Digitalized agri-busi-
prophet: ‘The future is already here – it’s just
ees who work in the public sector.
nesses (applications that integrate recommen-
not evenly distributed.’ Romania is one of the
While for the first category digitalization has
dations depending on weather conditions,
most polarized countries when it comes to
already had a critical impact and will continue
types of crops, type of the infield, cropping
the impact of digitalization on the workforce.
to increase the added value of their work, for the
time) are the only ones that can achieve the
We have a small segment of highly educated
latter the effect is the opposite. The majority of
productivity needed to do business in the
individuals, who are connected to the social
these workers will be impacted negatively and
new economy. An increasing number of such
media and digital environment and are very
the value of their work will decline. Here we see
companies are moving away from using
oriented towards the West. They fuel the
a paradox. The need for workers to fill less quali-
traditional, interim, low- or no-skilled workers
‘new economy’ in general, and the IT sector in
fied jobs will increase dramatically in the near
to the advantage of the highly qualified and
particular. However, we have a much larger
future because of the migration of local workers
digitalized workforce.
segment of the workforce comprised of less
abroad, especially the less qualified ones, and
educated individuals who have outdated
the lack of so-called ‘retraining’. Estimates sug-
like Airbnb have revolutionized this sector at
skills and haven’t managed to adjust them to
gest that up to 1 million positions were vacant
international level, it must adapt to the new
the needs of the current economy. They fuel
in 2017. We can already talk about massive op-
conditions or suffer.
TOURISM – Given the fact that applications
www.business-review.eu Business Review | May 2018
18 WELLNESS
Ana Aslan Institute regains its youth Once one of Romania’s most famous communist brands, and having remained in the shadows for about three decades, the Ana Aslan Institute of Gerontology and Geriatrics aims to recapture its youth by investing in state-of-the-art medical equipment, upgrading some of its facilities and improving its range of medical services. By Anda Sebesi
F
ounded in 1952 as the first institute of gerontology and geriatrics in the world, in 1964 the president of the
World Health Organization proposed it as a model for such institutes for developed countries. With Ana Aslan having been at its helm All photos: Mihai Constantineanu
from its foundation through to 1988 when she died at 91, the institute had and still has three main pillars: geriatric medical care, research and social gerontology. “In the ‘80s, the institute generated a turnover of about USD 17 million a year. Plus, when needed, Ana Aslan was the Romanian diplomat who ‘opened doors’ abroad, or the mediator who ‘revitalized’ damaged relationships,” says institute
Anca Stefan, Ana Aslan Institute
manager Anca Stefan. During its existence, many international
Claudia Cardinale, Charlie Chaplin, Kirk
who needed Aslan therapy were hospital-
stars had the so-called ‘Ana Aslan treatment’,
Douglas, Marlene Dietrich, Salvador Dali, Gina
ized here. Ana Aslan very much wanted to
either at their homes or on their personal
Lolobrigida, Indira Ghandi, Nikita Hrusciov,
help less well off seniors to benefit from the
yachts, like Aristotle Onassis and the Ken-
Tito, Konrad Adenauer and Charles de Gaulle
treatment. She offered them free accommo-
nedys, under the direct supervision of Aslan.
are among the big names who have frequent-
dation and medication,” says Stefan. “During
Today, the institute serves more than 14,000
ed the 33-hectare Otopeni Clinic since its
the communist period, the Otopeni clinic
patients a year in its three medical clinics in
establishment in 1974, close to Henri Coanda
was a popular destination for thousands of
Bucharest: one on Caldarusani Street, which
International Airport. “Our Caldarusani build-
foreigners. As a Romanian citizen, it was very
is also the head office (with 246 beds), the
ing had two functions at that time: it was
difficult to be admitted there. Just high-rank-
Otopeni one (334 beds) and the ambulatory
both the administrative head office and the
ing members of the Communist Party and
clinic on Spatarului Street.
research base. Individuals with low incomes
other significant figures of that time had this
www.business-review.eu Business Review | May 2018 2016
COVER WELLNESS STORY 19 14
privilege.” Ana Aslan therapy includes, among
are working on the gardens at both the Oto-
other medical procedures, the administration
peni clinic and our head office in Bucharest,”
of Gerovital H3 – a treatment said to stop the
says Stefan.
natural ageing process. After a set of in-depth
The institute will also buy new medical
investigations, each patient is prescribed
equipment and virtual reality solutions will
a specific package of integrated services to
be integrated for use in pain therapy and the
improve their medical conditions.
stimulation of mobility. An IT system upgrade
Known for catering largely to the elderly,
and the adoption of telemedicine are also
Stefan says that she hopes the institute will
planned. “We will be able to integrate home
focus on prevention and the extension of its
care solutions with geronto-technology, in
target groups in the future. “The institute is
order to offer competitive medical care,” says
going through a rejuvenation process which
the manager.
started with the restoration of its buildings
She adds that the construction of a new
and wards on Caldarusani Street and the
pavilion, planned to include a treatment base,
restoration and endowment of the treatment
relaxation areas and new rooms, is a medium-
base in Otopeni,” says the manager.
term goal. “The new pavilion will have a
According to her, the cosmetics division
treatment base and a capacity of 120 beds
is getting a facelift and will be equipped
and it will be a five-star facility. Our current
with the latest technology in the field. It will
estimates put the investment in building and
subsequently be able to offer modern services
equipment at EUR 6 million.”
like high-intensity laser therapy, shockwave
The institute will use its research to offer
therapy, facial and body rebuilding using
customized medical services which will be in
radio frequency systems, the acoustic treat-
close connection to both the biological and
ment of scars and lymphatic massage. “Plus,
chronological age of its patients. According
this year we intend to complete the restora-
to Stefan, this year it has investment plans of
tion of our interior pool in Otopeni, changing
about EUR 3 million, fuelled by both its own
it into a physiotherapy one. Meanwhile, we
financial resources and European funds.
The pioneers, symbol of the communist period, in the institute’s garden
www.business-review.eu Business Review | May 2018
20 WELLNESS
Main building of the Ana Aslan Institute
“In 2017 the institute generated a EUR 1.2
Famous apartment no. 6
co-owner of the European Letters Patent – a
million turnover, not including the clearing
method for the determination of biological
of medical services from the CNAS (Casa Na-
age in human beings – and has developed a
tionala a Asigurarilor de Sanatate). This year,
gauge of this indicator using a set of 20 bio-
we intend to reach EUR 1.7 million, or 10 per-
markers of ageing.
cent of the turnover posted by the institute in
Library of the Ana Aslan Institute (Otopeni)
“We are now in the process of setting out
its heyday. It seems like a small amount, but
both the operational and logistical needs so
it rests upon a 100 percent change in mentali-
our patients can benefit from the results of
ties and the capacity to reinvent,” says Ste-
this research and be aware of their body’s
fan. The clearings from the CNAS, Ministry of
real resources. The Ana Aslan therapy will
Health financing and the turnover generated
become a therapy of age,” adds the manager.
by patient accommodation charges are the
The personal collection of Ana Aslan
institute’s three income streams for now. “By opening the cosmetic division and launching additional services, we will diversify our sources of income. At present, 13 percent of the institute’s total budget comes from our turnover,” adds Stefan. At present, the institute employs 580 specialists and Stefan says that one of its problems is a major deficit of personnel in the research department. “Just 45 percent of the jobs are filled.” Services are open to all, based on referral from a family doctor. Patients at the Otopeni
Former translation room of Ana Aslan’s team
Ana Aslan, the Romanian diplomat who ‘opened doors’ abroad
clinic pay from RON 30 to RON 65 a day, depending on the type of room or apartment they choose, for two weeks’ treatment. “Now we have a waiting list, so medical appointments should be made two to three months in advance,” says Stefan. She adds that unlike Romanian patients, foreigners must pay for medical services too. “At present, we are in negotiations to create special packages for patients from the Middle East, and we aim to reach about 200 this year.” Last but not least, the institute is the
Ana Aslan Institute: facts and figures • Employees: 550. • The Otopeni clinic covers 30 hectares and has over 20 accommodation units which, following restoration, will be used by its employees from outside Bucharest; • 8 wards that allow 580 patients to be hospitalized simultaneously; • A research division with a laboratory that can evaluate biological age; • Laboratories for medical tests, radiology and medical imaging and functional investigations; • A treatment base for medical recovery and physio-kinetic therapy with over 70 cutting-edge pieces of medical equipment; • Specialized medical offices.
www.business-review.eu Business Review | May 2018 2016
MACROECONOMY COVER STORY 21 14
Beyond GDP: How the Romanian economy gained EUR 18 bln in 2017 and who saw the extra money Romania’s gross domestic product (GDP) grew by EUR 18 billion last year versus 2016, an impressive result for the second poorest European Union member state. However, almost all the extra money was spent straight away on consumer goods and services and little was invested in development. Experts warn that Romania’s economic picture is concealing three major risks. By Sorin Melenciuc on the residential building side,” Braun comments. In the last few years, the government has adopted a strategy of wage-led growth, stimulating household consumption and GDP growth rates. In December 2017, average net earnings in Romania grew 11.7 percent yearon-year, to a record high of RON 2,629 (EUR 567) per month. But this model has generated high public spending on wages and pensions and larger fiscal and current account deficits. At the same time, the government has cut public investment, especially in infrastrucRomania’s economy grew by 6.9 percent in 2017, but much of it is the product of a consumer bonanza
O
ture projects, threatening economic growth in the coming years.
fficial data released in March show
was given by the retail sector, but retail has
MAJOR RISKS TO GROWTH
Romania’s GDP, the index widely
also boosted upstream sectors, logistics and
Experts warn that the general economic pic-
used to measure the size of national
wholesale, for example,” Horia Braun, chief
ture hides three major risks over the coming
economist at BCR, told Business Review.
years. “The first risk is related to the public
economies, recorded growth of 6.9 percent in 2017 in real terms, the highest since 2008, to
budget, and we’re already seeing that budget
reach RON 858.3 billion (EUR 187.9 billion),
CONSUMER BONANZA
execution is shattering. This situation could
from EUR 169.8 billion in 2016. Romania’s
Experts point out that much of the economic
lead to fiscal constraints, like tax increases or
GDP last year was larger than Greece’s, esti-
growth in Romania is the product of a con-
spending cuts,” Braun predicts. The second
mated at EUR 177.7 billion, for the first time
sumer bonanza, stimulated by years of wage-
risk is an even greater reduction in public
since the 1970s, and ranked 16th among the
led growth government policy.
investment, at a moment when Romania
28 EU member states. The impressive GDP growth recorded last
Official data show that household end-
needs significant public spending, especially
consumption expenditure, the index measur-
on infrastructure. “The third major risk is
year was mainly due to increases in agricul-
ing what people spend on goods and services
accelerating inflation. We already have a 5
tural production, up 18.3 percent compared
to meet their needs and wants, rose 10.2 in
percent inflation rate, and the problem is that
to 2016, the information and communica-
2017 on the previous year. This benefited
this level is embedded in the expectations of
tions sector (10.9 percent), professional,
retailers active in Romania and employees.
both companies, which are introducing price
scientific and technical activities (9.9 percent)
The Romanian consumer market increased by
increases into their budgets, and of unions,
and wholesale and retail, repair of vehicles,
more than EUR 10 billion in 2017, to EUR 114.5
which are demanding wage increases to cover
transport, storage, hotels and restaurants (8.2
billion, due mainly to higher wages paid by
inflation. It creates inflationary expectations,”
percent). Construction was the only sector
employers. The total wage bill rose from EUR
the economist adds. Analysts forecast a slow-
which declined locally in 2017, falling by 0.6
57.7 billion in 2016 to a record level of EUR
down for the Romanian economy in 2018 and
percent compared to the previous year. “Eco-
67.7 billion in 2017, according to Eurostat data.
2019. BCR estimates the GDP growth rate will
nomic growth has been broadly spread across
“We also had an increase in investment last
ease to 4.7 percent in 2018, while UniCredit’s
sectors; only construction did not contribute
year, but only on the private investment side,
economists expect 4.4 percent. The govern-
positively. Services, especially trade, made
coupled with an advance in credit for invest-
ment’s estimate is 6.1 percent GDP growth in
the most important contribution. The impulse
ment purposes. There was a spike in activity
2018.
www.business-review.eu Business Review | May 2018
22 INTERVIEW
Bumpy road for the first caravan made in Romania Gabriel Bugnar has a dream: he wants to put Romania on the European map of recreational vehicles (RVs). To that end, he founded Tracia, the first recreational caravan factory in Romania and South-East Europe. His idea won the hearts of the jury at local start-up competition Startarium Pitch Day in 2016, who granted him funds. However, since then, Bugnar has struggled to build the prototype and continues to look for financing to start mass production.
ABOUT Gabriel Bugnar Entrepreneur, founder of Tracia Caravan He graduated the “George Enescu” Art High School and the “I.L.Caragiale” Academy of Theater and Film. his professional background includes different positions for both public and private broadcasters (producer, reporter, editor, artistic director at the national broadcaster TVR, executive producer at ProTV and general producer at RealitateaTV. Since 2015 he started his entrepreneurial career.
By Daniela Oancea From the first idea until I took an actual step in this direction, 12 more years passed. I’d been working in television for some 25-30 years, and because that was not exactly what I wanted anymore, I began to think more and more about the story of the caravan factory.
In 2015 you participated in a pitch competition for start-ups, organized by Ilfov County Council, with European funds. You were awarded EUR 25,000. How did you invest it? Indeed, that year, Ilfov County Council launched a pitch competition for start-ups, committing to finance 40 business ideas with EUR 25,000 each, from European funds, so the 40 start-ups could put their business ideas into work. I made a plan and participated with this idea of the first Romanian caravan factory. I was successful and so I started the company and began working on the original concept. At the time, I did not know what it meant to set up a business, but I wanted to go through all the stages personally, so that I could understand and learn things. I did not go to a consulting firm. I
You wanted to open the first caravan factory in Romania. What was your initial motivation?
campsites. During my journey, I realized that
went to the Trade Registry personally; I did
there was no factory for this RV in this part of
not go to lawyers. I had an accountant who
the world. I studied the market and I realized
advised me, as I did not even know how to
When I first thought about the existence of a
that, at that time, the closest factories were in
make an invoice. I learned on this project, for
caravan factory in Romania, I had no plans.
Germany and Slovakia, but they did not sell
six months, everything that could be learned
It happened 15 years ago when I bought my
on the Eastern European market. That’s how I
about starting a business. I invested in office
first second-hand caravan from Rotterdam.
realized there was a fantastic potential, and it
equipment (laptops and printer), and I was
I travelled three weeks from Holland to
was the first time I thought about the need for
able to pay my own and three colleagues’
Romania with that van and I stopped at many
a caravan factory in Romania.
wages. I paid rent for office space, taxes, and
www.business-review.eu November Business Review | May 2018 2017
INTERVIEW 23
I developed our website. Six months later, I
or an investment fund. Several private inves-
caravans. If we have one caravan per thou-
had the product project and had spent EUR
tors have shown an interest in the project, but
sand inhabitants in Romania, I presume that
18,000.
my short-term goal was to finish building this
the market could grow at least 30 fold.
first caravan. Then I will have something to
You won the big prize of EUR 70,000 at the Startarium Pitch Day competition in 2016. What did you invest it in?
show them. Until then, a body that is in the at all spectacular. The money earned through
How much have you invested so far in the project and what are your business goals for 2018?
In 2016, the caravan project remained in
the Startarium program would normally have
I have invested EUR 88,000 so far. In 2018, I
stand-by for a while, because I had no more
been enough if the problem of building the
want to finish the prototype and it would be
money to continue making the prototype
front wall had not come up.
extraordinary to raise the necessary funds for
process of having its furniture mounted is not
and start serial production. In the autumn of 2016, I learned that Impact Hub and ING were
the construction of the first 20 caravans by
Which designer did you work with and how much does the Tracia Familia model costs?
the end of the year. It remains to be seen if I
organizing this Startarium Pitch Day contest. It was a pitch competition, basically, from
Cristian Silviu Valentin is an architect and an
production hall and organizing serial produc-
which 80 projects were selected. Ten projects,
assistant professor at the Faculty of Architec-
tion will not be easy. I suppose it will take at
including mine, made the finals. Out of the
ture. He did the design. A team of four other
least one year, realistically speaking. I want
ten, three were awarded a prize. The fact
people, me among them, worked last year day
to reach production of at least 100 vehicles
is that I earned this sum, with which I built
and night to build the first Romanian caravan.
per year over the next five years, which would
a production workshop in Silistea Snagov,
The sale price is EUR 12,500 plus VAT.
not be too much for Romania. I’m not inter-
succeed, because going from a workshop to a
on a land that I had owned
ested in just the Romanian
for many years. I built the
market, because people from
workshop from scratch, and
Bulgaria and Greece have
throughout 2017, I worked
contacted me. So have some
on the prototype. The first
Romanians who live in Aus-
caravan, Tracia Familia,
tria and Sweden. Everyone
is 80 percent finished. I
asks me when the caravan
bought raw materials for two
will be ready, because they
caravans, because my desire
want to sell it in those coun-
is to make two prototypes.
tries. I cannot wait to finish
It was good that I made the
the prototype and start serial
purchases, because after working on the pro-
production.
totype of the first caravan, I drew some con-
What are the standard facilities?
clusions and made some decisions about the
It’s a four- or five-seater caravan, designed for
components from outside Romania, but not
The caravan is a product that needs
changes I had to make. Although I would have
a family, two adults and two or three children,
all of them. Some can be purchased here, at
liked the first caravan to have been ready in
let’s say. There are two suspended beds, but
a better price than outside the country. Also,
one year from the Startarium Pitch Day, this
this is the standard configuration. It can be
the workforce is cheaper. I assume that the
was not feasible, because one of the suppliers
customized upon request. For example, it
rental price for production facilities is lower.
in the country delivered me a mold that broke
can be configured for two adults or four. For
Overall, production costs are lower than in
off in the thermoforming process. I paid EUR
the prototype model, however, this would be
Germany or France. On the other hand, large
7,000 to this vendor, who should have com-
the ideal space. In the caravan you will find
producers have very large margins because
pleted the front of the caravan. However, the
home comforts: a bathroom, hot water, toilet,
they also have major marketing expenses.
first result was disastrous; I just could not use
shower, kitchen, refrigerator, electricity, this
For them, to rent an exhibition space at the
the front walls they made for me. My mistake
being the standard equipment. Upon request,
Dusseldorf Caravan Salon requires a budget
was that I paid them in advance.
you can install air conditioning, for example.
of EUR 500,000. I do not have these kinds of
You can also equip the vehicle with a mover,
expenses. I, a manufacturer of 100 caravans
Is there any financial institution in Romania interested in supporting your project?
a wheel-mounted system that helps you posi-
per year, will not pay the same amount to
tion it correctly in the parking space when
attend the Dusseldorf fair. So I will allow
I have not searched on purpose and I do not
you get to the campsite.
myself to maintain a competitive price for the same type of product, a caravan with the
want to do this until the prototype is ready.
How big is the community of caravan owners in Romania?
same characteristics. A van like ours, in the
be ready with the prototype through my own forces. I have to fix the mistake of spending
For example, in 2007, there were 3,800 cara-
a foreign producer, was EUR 21,000. I say that
the EUR 7,000 from the Startarium budget in
vans in Romania; in 2015, there were 22,000.
the price difference from EUR 12,500 to EUR
vain, and then talk to an investor, be it a bank
Now I think there are over 26,000 registered
21,000 is quite significant.
I hope that by the end of this summer, I will
Dusseldorf salon this year, manufactured by
www.business-review.eu Business Review | May 2018
24 FOREIGN INVESTMENTS
Local companies speed up investments abroad, but from low base Romanian businesses are showing increasing interest in investing abroad in 2018, after decades of negligible capital export, while trade unions are urging the government to back the internationalization of local firms. By Sorin Melenciuc Photos: Dreamstime
R
omanian companies have already made two transactions in the Republic of Moldova this year, and a
binding offer with Romanian involvement was submitted for a strategic Greek gas grid operator. Romanian gas grid operator Transgaz, a state-owned monopoly, took the first step abroad, acquiring a Moldovan gas player in February. The company won the bid for the purchase of Vestmoldtransgaz, which operates the Moldovan section of the Iași-Ungheni pipeline. The successful bid marks the first step towards the internationalization of Transgaz, which will operate in Moldova through its local branch, EuroTransgaz. After the acquisition of Vestmoldtransgaz, Transgaz has full control of the gas interconnection between Moldova and Romania, including the future extension of the IașiUngheni pipeline to Chisinau. Vestmoldtransgaz was put up for sale by
Transgaz and Banca Transilvania made investments in the Republic of Moldova in 2018 and other Romanian companies may follow the trend
the Moldovan government for MDL 180 mil-
the third largest lender in the Republic of
lion (EUR 9 million) and the successful bidder
Moldova, with a total participation of over 66
announced their intention to expand abroad.
is obliged to invest EUR 93 million within the
percent alongside the EBRD.
State-owned generic drugs manufacturer
next two years. The same state-owned com-
Other Romanian companies have also
Antibiotice Iasi said in March it would expand
pany was part of a consortium led by Spanish
THE RAPID EXPANSION OF BT
player Reganosa, including the European
Banca Transilvania and the EBRD are now
Bank for Reconstruction and Development
majority shareholders and strategic partners
recorded last year a net profit of RON 33.5 mil-
(EBRD), which in February submitted a bind-
in Victoriabank. In February, Banca Trans-
lion, up by 1.1 percent compared with 2016.
ing offer for a 66 percent stake in Greece’s gas
ilvania said it would offer RON 147 million
Other Romanian-owned firms have ven-
grid operator DESFA.
(EUR 31.6 million) for a minority stake of 33.2
tured abroad over the last decade, the best ex-
percent in Victoriabank, obtaining full control
ample being telecom group RCS&RDS, which
of the lender.
has extensive operations outside Romania,
The consortium lost the bid, with Athens accepting a EUR 535 million offer from a rival consortium, led by Italy’s Snam, on April 19. Another major Romanian entity, private-
The Romanian bank has undertaken a rapid expansion process in the last few years,
to the Republic of Moldova and Ukraine. A major exporter of pharmaceutics, it
especially in Hungary, Spain and Italy. Some analysts claim Romanian entrepre-
owned Banca Transilvania – Romania’s
acquiring the local subsidiaries of Austria’s
neurs don’t have enough trust to invest in
second largest bank in terms of assets – has
Volksbank (Volksbank Romania) in 2015 and
other markets, but others say the country
become a shareholder in Victoriabank,
Greece’s Eurobank (Bancpost) this year.
lacks a state-backed strategy to support Ro-
www.business-review.eu November Business Review | May 2018 2017
manian exports and investments abroad.
FOREIGN INVESTMENTS 25
Serbia, we’re aiming for sales of around EUR
made total direct investment of EUR 736 mil-
28 million. Most panels made at the factory
lion in other countries, a 1.2 percent increase
strategy, but also a government strategy.
will go onto the Serbian market, as well as
compared to the previous year, National Bank
Compared with other governments, Roma-
for export in the Balkans,” said Dorel Goia,
of Romania (BNR) data show.
nia’s government has no idea how to support
president of the Teraplast board.
“International expansion is a company
local companies aiming to invest abroad,”
The Serbian factory has a production ca-
International statistics reveal that Romania is the smallest international investor in
Cristian Parvan, general secretary of the
pacity similar to that of the TeraSteel Bistrita
Europe, as local investors prefer to focus on
AOAR (an employers’ association), told Busi-
subsidiary, one of the leaders on the sand-
the local market or lack the capital to expand
ness Review.
wich panels market, meaning 2.2 million sqm
abroad.
According to a Romanian central bank study, only 134 local firms had invested in
per year, as well as similar equipment. The new factory will sell its products in
In December 2016, Romanian residents’ foreign direct investments (FDI) abroad
other countries at the end of 2015, a negligible
Serbia, Bulgaria, Macedonia, Bosnia, Croatia
amounted to EUR 727.3 million. Data do not
number even compared with other former
and Montenegro, and secondary markets such
include investments by central banks.
communist Eastern European countries. But
as Hungary, southern Romania and northern
entrepreneurs point out that internationaliza-
Greece.
tion means taking risks and spending money. “To open up a subsidiary in an Arab country, for example, costs hundreds of thousands
The factory received EUR 2.7 million
Romania is a very small investor abroad even compared with its neighbors. According to the World Investment Report 2017 released
investment for development and a working
by the United Nations Conference on Trade
capital of EUR 4 million.
and Development (UNCTAD), Romania’s
of euros in bureaucratic proce-
outward FDI stock amounted
dures, hiring personnel and other
USD 910 million in December
details,” Parvan said.
2016, the lowest value among the 28 EU member states, far below
Economists also say the rapid economic growth the country
Hungary (USD 25 billion), Poland
is experiencing in this period is
(USD 24.8 billion), the Czech
keeping Romanian entrepreneurs
Republic (USD 18.6 billion), Es-
focused on the fast-growing local
tonia (USD 6.4 billion), Slovenia
market, already the biggest in the
(USD 5.7 billion), Croatia (USD 5
region.
billion) and even Bulgaria (USD 2.1 billion).
In 2017, the Romanian con-
FDI outward stock is the value
sumer market increased by more than EUR 10 billion, to EUR 114.8
of resident investors’ equity in
billion, making it almost as large
and net loans to enterprises in
as the consumer markets of Hun-
foreign economies, according to
gary (EUR 62 billion), Bulgaria
the Organization of Economic
(EUR 33 billion) and Serbia (EUR
Cooperation and Development
25 billion) put together.
(OECD), which sets the international standard for FDI.
REGIONAL PLAYERS
Romanian managers are also involved
FDI is an investment in a business by an
But some local private investors are betting
in the regional expansion of multinational
investor from another country where the for-
on expansion on such neighboring markets in
companies that choose Bucharest as their
eign investor has control (owning 10 percent
order to become major regional players.
regional headquarters. Although they are not
or more of the business) of the company pur-
Romanian investments abroad, many Bulgar-
chased. Official data show foreign investors
in Romania, Teraplast Group, began produc-
ian, Serbian and Moldavian subsidiaries are
made total direct investments of EUR 73.54
tion at TerraSteel Serbia, the first Romanian-
managed from Romania and their markets
billion in Romania in 2017, a historical high,
owned factory abroad since 1990. The factory,
are coupled in management strategies with
up 4.9 percent (EUR 3.4 billion) on 2016.
located in Leskovac, specializes in sandwich
Romanian markets.
In October 2017, the biggest PVC processor
At the end of 2016, the main countries of origin of FDI in Romania were the Nether-
panels. Last year, Teraplast bought the Serbiabased sandwich panels maker Interlemind for
LOW BASE
lands (24.3 percent), Germany (13.2 percent),
EUR 4.3 million.
These examples could mean a fresh start for
Austria (11.9 percent), France (6.9 percent),
local investments abroad, and 2018 could be
Cyprus (6.5 percent), Italy (6.3 percent),
Group in Serbia (...) is a new step in our pro-
a starting point for the internationalization of
Luxembourg (4.3 percent), Switzerland (3.6
cess of development, in line with the group’s
Romanian businesses.
percent), Greece (2.8 percent) and Belgium
“Expanding the activity of the Teraplast
long-term objectives. In 2018, at TeraSteel
At the end of 2017, Romanian investors had
(2.7 percent), according to the central bank.
www.business-review.eu Business Review | May 2018
26 ART MARKET
Positive picture: local art scene grows, but keeps emerging status Still young and emerging, the Romanian art market has been growing over the past few decades. Sharing a common trajectory with most other markets in Central and Eastern Europe, its success and that of local artists is strongly anchored in the well established and mature Western European market. Still, further growth, local actors argue, must come the way of welleducated art collectors. By Georgeta Gheorghe to major art galleries and collectors, via his participation in New York’s Armory Show. Almost ten years later, in October 2016, Ghenie’s Nickelodeon (2008) sold for a record USD 9 million, four times its highest estimate, at Christie’s London. The same year, Ghenie broke into the ranking of Romania’s best selling artists in fifth spot, by selling two paintings. He was also the fifth most successful artist financially in 2017. Last year, Ghenie sold six paintings in Bucharest, totalling around USD 365,000, with Enigma fetching most, around Photo: Sotheby’s London
USD 97,000. His most remunerative canvas remains Christ, sold by Artmark in 2016 for over USD 150,000. (The local artist who has sold the most in Romania, remained, in both 2016 and 2017, Nicolae Grigorescu, one of the founders of modern Romanian painting.) Adrian Ghenie’s The Sunflowers in 1937 (2014)
I
Meanwhile, Ghenie’s Plan B Gallery, one of just two galleries in Eastern Europe to have taken part in both Frieze and Art Basel,
n 2017, Constantin Brancusi, one of the
record. Bought in 1955 by a US collector for
(the other being Gregor Podnar in Ljubljana),
fathers of modern sculpture, topped the
USD 5,000 from the artist himself, it is now
managed the feat only after opening a chapter
list of the best-selling Romanian artists
valued at USD 70 million and projected to
in Berlin. This goes to show that in an ocean
internationally. That was no tall order, given
bring its owners a fabulous return of 1.4 mil-
of possibility, in order to attain success, Ro-
that he came fourth in a ranking of the best-
lion percent.
manian artists and galleries must venture far
selling modern artists in the world, behind
The fact that the top-selling Romanian
from the safe shores of home and learn how
Van Gogh, Leger and Klimt. His bronze
artist is breaking records in New York rather
to navigate currents which already have a
sculpture La muse endormie, the sleeping
than Bucharest is hardly a surprise, given
well established and interconnected pattern.
head of a woman distilled into a perfect oval
Brancusi’s exceptional artistic pedigree. But
In terms of turnover, more than any other
face with subtle physical features, was sold by
the case of Adrian Ghenie, for instance, one
art marketplaces, New York has attracted the
Christie’s New York for a record-breaking USD
of Romania’s most successful contemporary
world’s biggest art sales for decades. Together
57.3 million.
artists, may be indicative of the complex dy-
with London and Hong Kong, it represents the
namics shaping the Romanian market as well
international exchange hub most able to at-
as local artists’ path to success.
tract both the world’s best supply of artworks
In May, his polished brass sculpture La jeune fille sophistiquee (Portrait de Nancy Cunard) will go under the hammer at the same auction house and will likely topple that
It was not until 2007 that the Baia Mareborn, Cluj-educated artist became known
and the most demand from buyers. According to Artprice’s Art Market Report
www.business-review.eu Business Review | May 2018 2016
COVER ART MARKET STORY 27 14
2017, the recent rise in sales of contemporary
Currently, there are six auction houses on the
lacks the coherence of well-established
art, for instance, is driven by just four global
local art market, and around 120 galleries, out
markets, today “we have the artist, we have
cities, namely New York, London, Hong Kong
of which nine are also active internationally.
the potential collector and, finally, we have
and Beijing, accounting for 83 percent of the
While this may sound like a bold state-
a playground for them to meet and let the
global contemporary art auction turnover.
ment, it alludes to a long period of transition
This means that all the other art marketplaces
and reflects a trajectory shared by nearly
“In Romania, collectors are emerging as
– estimated by Artprice at 540 cities that or-
all art markets in the region. All relative
well as the art scene,” co-founder and curator
ganized fine art auctions in 2016/2017 – share
latecomers to the table, they too had to find
of the Bucharest International Biennial for
the remaining 17 percent of the turnover from
a way to fit into a mature global art market
Contemporary Art Bucharest Razvan Ion
80 percent of the contemporary art lots sold.
that plays according to its own rules. That is
agrees. “Collectors are a vital component of
Zooming in on Europe, the Global Art
because, bluntly put, after 1989, for Romania
the art market,” he argues, “and the demo-
Market Outlook 2018, by art market analy-
and other Eastern European art markets, the
graphics of art collectors have shifted from
sis firm ArtTactic, set the value of the UK’s
only way was up. “Given the historical and
the leisure class to the ‘working rich.’ If the
London-driven art market at USD 771 million
political circumstances, the evolution of the
collectors are well educated, work with art
in 2017. In continental Europe, last year Paris
Eastern European art market has been a slow,
advisors and have knowledge of the art scene,
was elevated to the status of main art hub.
complicated process. I don’t think we can
the market will grow.”
The French capital increased its
even speak of an Eastern European art market
market share in 2017 to account for 68.3 percent of
before 1989,” says Roxana Gamart, co-founder of the Bucharest-
the continental Euro-
based Mobius Gallery,
pean market, valued
which specializes in
magic happen.”
As far as trends go, Gamart says, Romanian collectors tend to be more interested in established artists, while foreign
at USD 184 million,
promoting con-
collectors give more
shooting ahead of
temporary art in
credit to emerging
major hubs Milan
Eastern Europe.
ones. One in three
and Amsterdam.
That is why,
art buyers at Mobius
Post-war and contemporary art auctions in Paris totalled USD 125.3 mil-
when we speak about the art market in Eastern Europe, she argues, we need to
Gallery, she tells BR, are foreigners. Ana Maria Sileanu, of Witte gallery,
lion, the highest recorded figure
keep in mind that we are still talking about a
agrees. While “the large majority
for its auctions. The remaining USD 58.7 mil-
newly-born market, which is not even a unit.
of traditional collectors still prefer Romanian
lion came from other European capitals and
“In fact, we are talking about a lot of small
modern art, with a big interest in traditional
cities that host art auctions.
local markets that can play only one winning
paintings, the interest of foreigners on the
hand – that of becoming a context: merging
local art market is centred on contemporary,
EASTERN EUROPE VIA BUCHAREST
all these small markets into one could poten-
internationally established artists and emerg-
Where does Bucharest stand in the well-
tially catch the attention of the bigger players
ing ones.” Apart from individuals, says Ion,
established global art ecosystem? According
on the global art scene,” Gamart says.
who has advised a major foreign bank on its
to independent curator and 2018 Art Safari
This also rings true when it comes to the
Romanian art purchases, companies are an
director Ioana Ciocan, the value of the Roma-
sale of Eastern European art on the world’s
important category of collectors. “Most inter-
nian art market stood at over USD 14.6 million
global markets. The latest auction dedicated
national firms, especially banks, have great
in 2016, and the growth perspectives are
to Central and Eastern European art took
collections. Romanian artists are appealing
positive. As for Romanian contemporary art,
place two years ago in London. Held in June
to them, of course. They mostly look for con-
it has registered significant growth in recent
2016 at Sotheby’s London, Contemporary
temporary art,” he says.
years, she says.
East, which featured work by Romanian
However, starting a collection need not
names Romul Nutiu, Geta Bratescu Alexan-
involve a large investment. The Romanian art
an 80 percent market share, posted Romanian
dru Chira and Marilena Preda Sanc, raised
market is still very young, he notes. “What
contemporary art sales of over USD 1 million,
USD 1.8 million. Surprisingly, perhaps, this
we need is education. Collectors need to learn
representing “spectacular growth, compared
was also the first ever such auction held by
more about the international scene so they
with the regional art market,” notes Ciocan.
a major platform anywhere in the world, the
get the artworks that can become a future in-
That is why, over the past two decades, she
auction house confirmed to BR.
vestment or a possible donation in their name
In 2016, auction house Artmark, which has
to a museum. Also, I believe start-up collec-
argues, the local art market has been healthier than it has ever been before, and the in-
FRAMING PROGRESS
tors should learn that money is not an issue.
creasing number of national and international
According to Gamart, although the start
You can start with any amount of money if
art transactions is reflected by overall figures.
has been slow, and Romania’s art scene still
you know what to buy.”
www.business-review.eu Business Review | May 2018
28 TWENTY YEARS IN REVIEW
20/20 vision: 20 lessons from 20 top managers Want to know the secrets to running a successful business? Business Review talked to the top managers who head up 20 of the most important organizations in their sectors to get the lowdown on the main lessons they have learned since taking the helm. By the BR team
Lesson 1:
Lesson 2:
Real estate value generated by coherent concepts
Balance and responsibility when building a center for a big brand
Ovidiu Sandor, CEO, Mulberry Development
Marian V. Popa, general manager, DB Global Technology
Real estate works in cycles (even though in Romania nobody
When building up a new center for a big brand, the first things that
expected this because the market was not mature enough to have
come to almost everyone’s mind are ambition, almost endless pos-
gone through this experience before). The real value belongs only to
sibilities and the desire to achieve – or even better – to overachieve.
projects that have a coherent concept (location, location), a coherent
But this is a trap, as reality is not as pink as it seems at first glance.
urban/functional/architectural concept, adapted to the real needs of
Therefore, my conclusion is: balance and responsibility. Balance
the market, while understanding the needs on the medium and long
in order not to run before you can walk, i.e. growing at a mature
term, and quality constructions.
pace, in synchronization with your hiring and integrating capabili-
Wise approaches are those timely aligned with the market absorp-
ties. And secondly, responsibility, as we are all responsible for being
tion capacity, meaning don’t build more than the market can take at
creators of resources too, not just users of them. Meaning building
a certain point.
up capacities to grow and train people. And then, it works.
www.business-review.eu Business Review | May 2018 2016
TWENTY YEARS COVER IN REVIEW STORY 14 29
Lesson 3:
Lesson 4:
Make it simple for the end consumer to reach you
Liberation within limitation
Iulian Stanciu, CEO, eMAG
Gilda Lazar, director corporate affairs & communications, JTI Romania, Moldova & Bulgaria
In all these years I’ve learned that the most important thing in every
“When you understand how to work within the limitations, there are
relationship, including with your end customers, is to keep all the
infinite possibilities.” This was the answer of Steve Vai, the famous
promises you’ve made. Success comes when people trust you, and
guitar player, to Catalin Stefanescu’s question during Garantat 100%,
that’s why every decision you make should respect your customers’
an iconic talk show, recommended by JTI Encounters. This is one of
trust. I’ve also learned that people love to have many choices, so it’s
the lessons learned in 20 years of working at JTI Romania. Liberation
vital for your business to offer them a wide range of products, mul-
within limitation. We are a legal business, but we happen to produce
tiple payment and delivery options, but it should also be very simple
controversial products. One might think that the huge regulatory
for them to reach all these.
challenges we face and the increased demonization of the tobacco industry would discourage anyone, but I work for a great company with clear and high ethical standards.
Lesson 5:
Lesson 6:
When the boom stops, challenging times follow
Be ready to face any crisis
Wolfgang Schulz, general manager, BMW Group Romania
Steven van Groningen, CEO and president, Raiffeisen Bank
The golden years of the automotive industry, our consumption
The crisis confirmed once again that you need to be prepared for any
boom, were 2007-2008. I joined BMW Group Romania much later,
situation, even if it means giving up some short-term benefits, and
in September 2014. I can speak about a post-boom era. One thing I
it is worth pondering before doing something. It reminded us that
understood very fast – when the boom stops, very challenging times
we can’t anticipate everything and any model has its limitations.
follow. But this should turn into a price war. The winners are the
In my opinion, you can see an opportunity in an economic crisis as
ones with excellent business management and service quality. That
its effect can be a positive one because it forces you to react, make
is what makes the difference on the long term.
changes and adapt. Today’s world is rapidly changing and hence, crises are expected to happen more often. The key is to be ready and adapt quickly to the new situations.
www.business-review.eu Business Review | May 2018
30 TWENTY YEARS IN REVIEW
Lesson 7:
Lesson 8:
Business performance is a mix of factors
Being socially responsible can be a business approach
Serban Toader, senior partner, KPMG in Romania
Marco Hoessl, CEO, Kaufland Romania
As in any field, performance in business is built on effort and dedica-
One of the most valuable lessons I have learned is how important our
tion, on personal and professional growth, and on adaptability to
decisions, as an organization, are for people. I have also learned that
swift changes in the economic environment. We are now on the
revolutionizing is the only way to stand out. Focusing on projects,
brink of a new industrial revolution, based on innovation in technol-
causes or communities that nobody has supported before means
ogy, and the next 20 years have the potential to generate systemic
that looking outside the box can make a strong contribution to the
changes to our lives in all aspects. Over the next few years, flexibility,
community. There are causes that people do not give much atten-
investments in technology and the rapid integration of change will
tion to, such as the lack of green spaces. Maybe the most important
“have their say� in the development strategy of any business.
thing is to wish to be better. They say: he who has stopped wishing to be better has stopped being good. Everybody must understand now that being socially responsible can be a business approach and always brings benefits on all sides.
Lesson 9:
Lesson 10:
Innovation should be the most important concern
Exigency, excellence and fast reactions are crucial in retail
Marius Dosinescu, CEO and founder, FlorideLux
Ionut Ardeleanu, general manager, Auchan Retail
Every day we learn a new lesson. Moreover, the evolution of the on-
Eleven years of Auchan in Romania have taught us, among other
line environment is so dynamic that it is a challenge to keep up with
things, that there are certain things consumers expect from a trader:
everything that happens in the e-commerce industry. From experi-
exigency regarding the quality of the offer in a broad sense, excel-
ence, I have learned that you can never be the number one without
lence in the purchasing experience and the ability to permanently in-
constantly investing in technology, marketing, product develop-
novate the relationship with customers. Last but not least, a speedy
ment and business development in general. Investments are closely
reaction is very important when it comes to the rapid adaptation of
related to innovation, which should be one of the most important
Romanians in general and their changing purchasing habits.
concerns of a manager, regardless of the profile of the company he or she is leading.
www.business-review.eu Business Review | May 2018 2016
TWENTY YEARS COVER IN REVIEW STORY 14 31
Lesson 11:
Lesson 12:
Responsibility and trust are the keys to international success
The way you think can generate global recognition
Mircea Turdean, general manager, Farmec
Constantin Chiriac, general manager, Radu Stanca National Theater Sibiu; founder, International Theatre Festival Sibiu
The first international trade relations have been established since the
We have always started from the specifics of this community (Sibiu),
communist era. Although most of the production went to Eastern
which has, first and foremost, a heritage unequaled in our country
European countries, the first commercial contacts with Western
and recognized at European level. The fact that we are looking for
European countries (Spain) and Asia (Japan) were established, where
the world’s most important structures, for projects, to give content
there was a particular demand for face creams and Gerovital H3 lo-
to the great international events, is a certainty that what we have
tions for hair care. In strengthening our position at the external level,
thought, think and will think, generates this global recognition by
we contributed substantially to the responsibility and trust we have
developing a construction that, beyond its durability in terms of
always had with international partners, the efficiency and quality of
projects and programs, has built up trust over time.
Farmec products, and the adaptation of the product portfolio to the specifics of each market.
Lesson 13:
Lesson 14:
There is no “impossible” or “cannot”
Trust the Romanian business environment
Tudor Giurgiu, founder, Transylvania International Film Festival
Mihai Marcu, CEO, MedLife
The most important lesson I have learned from the international film
In the last few years as CEO, I have learned that Romanian busi-
industry is that there is no “impossible” and “cannot” – these words
nesses are very trustworthy and professional. Personally, I have had
we hear very often. However difficult a project is, however much
more failed business partnerships with foreign businessmen than
like science fiction it might seem to you to reach your goals with IT;
local ones. I think this myth that Romanian businesses aren’t reliable
however implausible it might be that you could get Sean Penn or
should fade away because it’s false.
Uma Thurman in your movie, for example, nothing is impossible. To get where you want, it matters that you have a good chance and good networking, never give up, take the right steps and adjust your rhythm.
www.business-review.eu Business Review | May 2018
32 TWENTY YEARS IN REVIEW
Lesson 15:
Lesson 16:
Build your employer brand to keep the talent
Surround yourself with people who act more than talk
Dragos Anastasiu, CEO, Eurolines
Dan Sucu, CEO, Mobexpert
Experience has taught me that talent is rare, when it comes to
The biggest lesson I’ve had as a top manager is that it is crucial to
employees. I believe that, in the coming years, each company must
surround yourself with people who understand that it’s more valu-
build an employer brand in order to keep the talent. People need
able to act than just have ideas. I learned that success is translated
more than good salaries; they need work effort recognition, inde-
in execution and not just good ideas. Plus, today, clients engage
pendence, investments in personal development, etc. Management
with businesses in their own terms.They are those who decide when
nowadays isn’t about giving orders, it’s about letting decisions come
they want to engage with you and they are increasingly demanding.
from the bottom. I truly believe that changing the employer’s vision
Therefore, the biggest disruptor is a positive factor.
will decide the fate of Romanian companies in the next period.
Lesson 17:
Lesson 18:
Embrace simplicity, innovate, befriend technology and love your competition
No crisis resembles another
Cosmin Vladimirescu, general manager, MasterCard Romania
Radu Ghetea, CEO, CEC Bank
There are four important lessons that I have learned from Master-
In my experience, nothing happens twice when it comes to world
Card’s 22 years of existence on the Romanian market and they are
crises. Of course, there are the things that we learn after a crisis and
related to simplicity, innovation, technology and competition. 1.
we implement them, and that only creates the opportunity for other
Simplicity is incredibly sophisticated, especially in the payments
issues to occur. From the last world crisis I learned that we need
industry, where we have to continue innovating in order to offer our
to try to identify future threats to our clients and to the economy.
clients the simplest and the best solutions. 2. Technology makes
This is why stress tests have become a regular thing in the banking
our lives easier and, if used properly, it can be our best friend. 3.
system. We simulate the worst-case scenario, for example, a big drop
Innovation is the key to success in today’s world, where everything
in the economy growth or a large unemployment rate and try to find
is changing so incredibly fast. Any company that chooses to imitate
solutions to prevent their possible negative outcomes.
will end up becoming completely irrelevant. 4. We have to embrace and love our competition. It will only help us become better and better.
www.business-review.eu Business Review | May 2018 2016
TWENTY YEARS COVER IN REVIEW STORY 14 33
Lesson 19:
Lesson 20:
Success comes not from being successful, success comes from failure
Simplistic is easy; simple is difficult
Florin Talpes, CEO, Bitdefender
Daniel Dines, CEO, UiPath
One of the things that helped us get to where we are today was the
A very important lesson that I’ve learned – and I did that the hard
fact that we made mistakes from the start of Bitdefender’s evolution.
way – is that you need to know a subject very, very deeply in order
Life gives you plenty of opportunities to make mistakes. One does
to then be able to build a simple solution. If you don’t understand all
not reach success by being successful; success comes from failure.
the details, all the kind of branches of a particular solution, you will
So, when you start your journey, a lot of things will not turn out as
end up building something very simplistic. Simplistic is very easy. To
planned. But if you learn well and fast enough from what is happen-
build something simple, on the other hand, is very difficult. That is
ing, then you have a high chance of always adjusting your path and
why we need to spend 10 hours a day simply thinking about all the
reaching the target you and your team have set.
implications of a product.
34 PARTNER CONTENT
www.business-review.eu Business Review | May 2018
Being a banker of the future Ufuk Tandogan, CEO Garanti Bank tells Business Review about the 20 most important business lessons he has learned since taking the helm of the bank in Romania and highlights the main changes of the banking sector in the future. The past years have been an on-going lesson for me, on both professional and personal level. Since I first came to Romania 6 years ago, as the CEO of Garanti Bank, I have discovered a continuously growing and developing business environment, commensurate with a very eclectic and vivid culture. These past years taught me that, while the local market strives to be aligned with the international business environment, it is still rich in local character and very open to growth and change. As in the case of any industry and governmental policies, the decisions taken by local authorities have a major impact on the local economy. Every decision, whether big or small, impacts the business environment. Nonetheless, the past 20 years have represented a huge turn in Romania’s history, as the country has grown into one of the fastest growing economies in the region. If Romania keeps up the good pace and adopts healthier decisions for its local economy, in 20 years’ time, it has the potential to become the region’s business hub and be attractive to more and more investors, as it still has huge potential. In regards to the banking sector, by 2028, banks will likely need to be fundamentally different than they are today. As hard as it may be to believe, the next ten years in banking may be subject to more transformation than the last decade. Unless banks start to act now and prepare for these longerterm changes, they may be overwhelmed by the new requirements and demands they
www.business-review.eu Business Review | May 2018
PARTNER CONTENT 35
20 Lessons:
will face. Fortunately, banks have the ability to position themselves as a partner in the new established economy, which will most likely gear towards cashless transac-
1. The most important pillar of the banking industry is trust.
tions and a full digital experience.
2. I would have to say that being successful is not always the hardest thing in the world, but adding value to what you do and who you are is a lot harder.
I came to Romania in 2012, as CEO of Ga-
3. Business relationships should be more transparent.
ranti Bank Romania. In the meantime, the banking sector has grown and developed into an extremely dynamic environment. A few of the most important lessons I have learned during my time here are those regarding the way we perceive and interact
4. Financial services have embraced a new spirit. 5. The worldwide trend is for cash to become more and more obsolete, as technology encourages the drive for instant services. 6. We are now in a digital era, in which people are increasingly in need of safety, flexibility and efficiency.
with customers and how employer branding is impacting businesses in a very digital
7. Personalization is key.
environment.
8. Strategizing should always be done according to our clients’ needs. In the past years, the change in dynamics between employees and employers has translated into a transparency boost between them and attentiveness towards employees’ needs has increased. In today’s global and digital 24/7 world, challenges are more complex; it’s becom-
9. Development of new products and services and changing expectations will be key factors going forward. 10. A mix of good communication skills, discipline, commitment and confidence should be at the base of our every action. 11. Acknowledging that you are your own biggest competition is a key factor to overcoming a professional impasse.
ing increasingly important to bring more diverse minds to the table and to break down silos. The digital revolution in banking has only just begun. Today, we are in phase one, where most traditional banks offer their customers high-quality web and mobile sites/apps.
12. One of the most important principles we can base our day-to-day activity on is being empathetic. 13. Our clients are at the heart of our business and we are all responsible for growing and managing solid, trustworthy and friendly relationships. 14. Banks should use big data and statistics to become a partner for the long road, rather than just a service provider.
Improving emotional affinity in the digital landscape requires a hyper-vigilant culture regarding monitoring and pleasing customers. Therefore, targeting becomes more personal. With the help of big data and statistics, personalization helps banks become a partner for the long road, rather than a just service provider. Having your bank there specifically for you, offering you what you need, exactly when you
15. Do not make concessions when it comes to giving your customers the best options. 16. If my day-to-day activities bring satisfaction and motivation to my team, then I have ended that day still being a leader. 17. If I still want to be a better professional each and every day, I am still a leader. 18. Embrace a healthy lifestyle and incorporate exercise into your daily activity. It will help you focus better and be more balanced.
need it, is the best evidence that financial services have become an integrated part of the client’s life and that each and every client is taken into account when creating dedicated financial services.
19. The next ten years in banking may be subject to more transformation than the last decade. 20. Do everything with passion and strive to be the best.
www.business-review.eu Business Review | May 2018
36 ENTERTAINMENT
Sounds good: Liveurope takes emerging European musicians to another level With annual revenues of over EUR 25 billion and employing more people than the film industry, the music business is receiving more and more attention at European level. Technological change and digitalization have brought radical shifts in the field and music execs are busy exploring new business opportunities. By Romanita Oprea an audience of more than 2.5 million people per year. In order for their show to qualify as a ‘Liveurope supported’ performance, artists need to meet certain criteria. Firstly, they must be based on the European continent and must have proven the dedication and aspiration for an international music career, but may not have been professionally active for more than five years. Moreover, artists must have published at most three professional studio albums, but must have provided a valid demonstration of a professional entourage. To be eligible to perform under the Photos: Dreamstime
Liveurope framework, an artist must be from a country other than the one where the venue is based.
The EU wants to create a financial framework for the music sector in Europe in the coming years
I
WORKING IN CONCERT: VENUE STIPULATIONS Venues, meanwhile, must have been estab-
n this context, Liveurope is an initiative
of emerging, non-national, European acts.
lished for two years in their territories and,
supporting concert venues in their efforts
The purpose is to give established concert
besides having good infrastructure, Liveurope
to promote up-and-coming European
venues the opportunity to host emerging art-
representatives must be assured that they
ists every year.
have had an impact on their region, because
artists. The platform works as a quality label awarded to live music venues committing
The venues, in turn, are completely au-
they are interested in quality venues that
to European diversity. Its objective is to help
tonomous in their choice of scheduling and
host both emerging European artists and
young European acts get bookings across the
booking artists, as long as the acts are both
also international performers. The venues
continent and reach new audiences. Estab-
emerging and European.
have their own agendas, but they sometimes
lished in 2014, the Liveurope platform is the
The initiative is supported by Creative
promote more emerging European acts or do
first initiative of its kind in Europe, a member-
Europe, the European Union’s framework
so through special events. For instance, at
ship organization, bringing together interna-
program for cultural and audiovisual support.
Village Underground London, since the UK
tional concert venues across the continent.
Liveurope was built on a progressive bonus
voted for Brexit – to which the venue owners,
The platform is coordinated by Anci-
mechanism: the more risks its members take
like most of the British creative community,
enne Belgique, an internationally acclaimed
on new bands from new territories, the more
are opposed – they have switched more
concert venue in Brussels. Member venues
money they receive. From Copenhagen to
towards European emerging acts, to take a
are selected for their dedication to booking
Warsaw, through Ljubljana and Barcelona,
stand, and, at the same time, also remain part
European talent, as well as their professional
Liveurope brings together 14 concert halls
of the Trans Europe Halls, which is another
infrastructure and international reputation.
across the continent and has organized 1,300
related project. “Our platform features differ-
Liveurope provides financial support to
concerts so far. They are considered referenc-
ent sized venues, from smaller ones such as
member venues proportional to their booking
es on the European live music map and serve
MusicBox in Portugal and Bla in Oslo, which
www.business-review.eu Business Review | May 2018
ENTERTAINMENT 37
have a capacity of 200-300, to bigger venues
with different labels, and the Belgium rap
music business across the EU. On 14 February,
such as Vega in Copenhagen and Aéronef in
scene, which is currently booming. “We give a
after two years of collaboration with the Euro-
Lille, which can host 2,000-3,000 people,”
label to our venues, so that they can promote
pean Commission, EU Culture Commissioner
said Elise Phamgia, project coordinator for
emerging European artists internally. The
Tibor Navracsics announced that Parliament
Liveurope.
artists that get to play can reach new audi-
had approved preparatory measures for the
ences, which is the main thing, because many
pilot Music Program project, Music Moves
perform live, because they know better what
of them tour a lot in their home countries,
Europe (MME). Supported by the 30 European
will work in their market. All the venues in
but struggle to get a break abroad and find
associations and organizations that attended
the scheme promote contemporary music,
external channels to promote them,” said the
the meeting, the program will be allocated
with genres ranging from pop to electro and
representative. The inspiration for the project
a budget of EUR 1.5 million to begin the
hip hop. “There is no particular music that
was the cinema sector, which has managed
preparatory phases of a specific law on music,
stands out, in the sense that the purpose
to flourish in recent years, thanks to the EU’s
similar to the process undertaken for the
is not to promote a certain genre, but to
Media Program, one of its successes being Eu-
audio-visual law.
promote music at large. There are no criteria
ropa Cinema – a platform/network of cinemas
relating to repertoire for the artists. In three
that use the same mechanism as Liveurope.
Venue owners choose the acts that will
and a half years we have managed to promote
After this first successful phase, Liveurope
Support for the MME project from the European Parliament and the Directorate General for Education and Culture paves the
over 1,300 acts, which represents a 60 percent
was renewed in the new round of applications
way to create a legitimate music program that
increase in European emerging artists playing
for EU-funded platforms and was ranked first
will facilitate larger investments in the sector,
the venues, compared to the period before the
out of 64 competing projects. “Now that the
and increase the diversity and mobility of
project was implemented,” added Phamgia.
project has been renewed we want to do more
artists and their repertoire across national and
and grow it. For us this is the main challenge
European borders. The EU wants to create a
genres, it’s interesting to see the trends on
in terms of booking artists: growing the num-
financial framework for the music sector in
the music scene. According to the project
ber of nationalities enlisted in the program.”
Europe in the coming years, and the newly
Moreover, from the 1,300, who span the
launched Preparatory Action by MME is
coordinator, electro blues is very popular in
intended to put ideas and projects to the test
one of the venues in Belgium, while a lot of
THE RIGHT NOTE: EUROPEAN LEGAL AND FUNDING CHANGES SUPPORT MUSIC
emerging scenes stand out, such as Slovenia,
Further efforts are underway to support the
future funding program.
Lisbon with one local band going on to play
and to work out the general conditions of the
www.business-review.eu Business Review | May 2018
38 MARCOMM
Local marcomm firms embrace freelancing trend Accounting for a projected 40 percent of the American workforce by 2020, freelancing is going mainstream all over the world. BR talked to local marketing professionals to find out how the trend is reshaping the Romanian scene. By Romanita Oprea
Maria Predoiu, International Advertising Association (IAA) Romania
A
Anca Rancea, Freelancers’ Association Romania
t over 2.1 million workers and grow-
employment for freelancing will necessitate a
ing reality as freelancing thrives. “One of the
ing, the freelance market is beginning
serious re-thinking of how HR are best lever-
biggest advantages in working with freelanc-
to come into greater focus across
aged and developed in the very near future.
ers is that we all gain access to creativity and
the Romanian marketing & communications
Moreover, as Anca Rancea, president of
specialized creative talents, since they are an
(marcomm) industry. More agencies are
the Freelancers’ Association in Romania
open resource. Apart from accessibility, there
working with freelancers on major projects,
points out, the demand for freelancing comes
is always the ‘finding the best resources fit for
while more senior consultants, creatives and
from a prioritization of lifestyle development
every project’ criterion that goes beyond to
strategists are choosing this professional
over traditional career advancement, and is
other roles as well: strategic planner, project
path. It’s a trend that even industry associa-
evidenced in trends such as co-working spac-
manager, DTP and BTL. We always try to as-
tions are noticing and responding to.
es and telecommuting (which, also known
semble the best team for each type of project.
According to Maria Predoiu, president of
as working from home, or e-commuting, is
If we lack someone in-house, our first choice
the board of the International Advertising As-
a work arrangement in which the employee
is contracting freelancers rather than starting
sociation (IAA) Romania, the transformation
works outside the office, often from home or
the recruitment process. It’s more efficient in
the world is going through at this time reflects
nearby, including coffee shops, book shops
terms of cost and timing. And, in the long run,
also on how the workforce is evolving: from
and various other locations). Growth in
it offers more flexibility and independence to
lifetime jobs (no more than two genera-
Human Cloud platforms is also driving the
get the best project team, said Belodan.
tions ago) to the gig economy or workforce
freelancer model.
‘uberisation’ trend that is gaining ground at an accelerated pace today.
Cristina Belodan, executive director at
Her view is echoed by Stefan Iordache, CEO of Lion Communication and UAPR’s
GMP, remembers that a few years ago she
president,, who believes that there are four
imagined how disruptive and prolific it would
big advantages in working with freelancers:
resource engagement is still done through tra-
be to be able to work with the best creative
growth in capacity, new competencies, cost
ditional means (employment contracts, career
minds regardless of the agency they were
control (elasticity) and the testing of new
growth within one company, etc), the speed
working for. At that time it seemed like an im-
internal structures. By bringing freelancers in,
with which talents are abandoning traditional
possible dream, but one that is now becom-
agencies are expanding their capacity to an-
And even though the majority of human
www.business-review.eu 2018 Business Review | May 2016
COVER MARCOMM STORY 39 14
swer clients’ needs in a certain period of time,
if the advertising industry has a creativity
together a common workshop in order to
on several projects. “With freelancers’ help
crisis, we will all suffer the consequences. We
break the ice and bring the two communities
we, as agencies, can access new competences
are very conscious of the ‘exiting the indus-
closer together.
brought by specializations that agencies
try’ phenomenon and we are deploying our
didn’t have at that time. It also helps with cost
interests and resources to support a healthy
ers’ voices are truly starting to be heard by
control, by bringing a series of specialists or
environment for this new form of collabora-
two major projects: the Freelancers’ Law
additional capacity only for a limited time.
tion: freelancing,” said Belodan.
and a Human Resources Cloud Platform: The
The agency assumes the cost of a freelancer
It’s been more than five years since the AF
For the AF, 2018 is the year when freelanc-
association has a partnership in place with
only when it has additional revenue over the
(Freelancers’ Association) was founded and
the FPFA (the Federation of Female Entrepre-
average generated revenues,” added Iordache.
it’s more than five years since its president be-
neurs) and is working on developing a plat-
gan to constantly lobby for this community in
form where freelancers meet clients and vice
forefront of adopting and nourishing the free-
front of clients and authorities, partners and
versa for all industries, including marcomm,
lancing trend, as there is significant creative
colleagues. “Firstly, I am truly happy that the
designed primarily, but not exclusively, for
value to be attracted from freelancing when
main independent advertising agency in Ro-
the members of these two entities.
the mindset is ahead and not behind. As such,
mania and one of the most important creative
according to Predoiu, companies should, first,
and strategic leaders – GMP – is open not just
2018 – FREELANCERS’ BOOM?
become truly aware that freelancing is a sig-
to working with freelancers, but having a real
According to GMP’s executive director, these
nificant trend, not a side one. Second, firms
collaboration with chosen, validated freelanc-
are revolutionary times for the traditional
should experiment with how to employ, col-
ers, in order to serve its clients’ interests in a
way of creating and delivering added value for
laborate, evaluate, reward, etc the freelancers
more efficient manner. And we are not talking
brands and clients. “There has probably never
that suit their business priorities.
just about project-based work. It’s about
been a better time for freelancing. I do believe
designing a flexible and innovative working
it’s time to make advertising great again.
GMP AND IAA WORKING CLOSELY WITH FREELANCERS’ ASSOCIATION
model at multiple levels, for a real collabora-
And this can only be done by making talents
tion between freelancers and an open-minded
shine, freelancers more than ever,” concluded
In this context, GMP is the first agency in
advertising agency,” said Rancea.
Belodan.
Marcomm companies should be at the
Romania to have contacted the Freelanc-
How will the collaboration work? Accord-
ers’ Association in order to start a special
ing to the two parties the intention is for the
that freelancing has reached a point of no
partnership. How did it happen? “I think that
AF to create the proof of concept alongside
return – the only way from now on being up.
it is time to open our brainstorming rooms
GMP and create a hybrid working model with
And it is great that there are forms of orga-
and team structures to freelancers if we want
a hybrid team consisting of freelancers and
nizations that advocate for the benefits and
to attract more and more talents. Being able
employees, designing common programs
rights of freelancers, such as the AF. “The fo-
to access a pool of validated, certified and
and even common playgrounds for IAA and
cus of businesses should not be on ‘should we
specialized freelancers for different types of
AF members. Secondly, the IAA and AF are
consider freelancers or not’. It should be on
jobs, roles and experience levels is some-
currently working on finding ways to help and
‘how to identify the best freelancers for our
thing I can only dream will benefit our entire
support each other. For starters, the associa-
challenges, how to integrate the phenomenon
industry, not only GMP. At the end of the day,
tions are discussing the possibility of putting
in our culture and processes,” added Predoiu.
In her turn, the IAA representative believes
www.business-review.eu Business Review | May 2018
40 CINEMA
TIFF top tips Mihai Chirilov, artistic director of the Transylvania International Film Festival (TIFF), guided Business Review through this year’s edition of the iconic Romanian film festival, and shared his highlights. By Oana Vasiliu TWO ROMANIAN MOVIES IN THE INTERNATIONAL COMPETITION Andrei Cretulescu’s Charleston and Adina Pintilie’s Touch Me Not will have their Romanian premieres at TIFF and compete for the Transylvanian Trophy. Two flamboyant debuts, presented and awarded in prestigious festivals, they differ stylistically from the usual local fare. No Romanian movies were this cool (Charleston) or edgier (Touch Me Not).
THE GUILTY Don’t rush to form a conclusion with this DanAll photos: TIFF
ish movie that subverts expectation: it keep you on the edge of your seat, gripped with suspense, with a story about a single character who speaks nonstop on the phone and
Mihai Chirilov, the artistic director of TIFF
desperately tries to solve a bizarre case from a distance. Directed by Gustav Moller.
303 in this romantic and epic road movie, in-
a journey littered with accidental deaths and
TOKYO VAMPIRE HOTEL
spired by Richard Linklater’s cult film, Before
other unorthodox events. By comparison, the
The unclassifiable Japanese director Sion
Sunrise. He’s a hitchhiker and she picks him
promo shot they make using a CCTV camera
Sono came to Cluj two years ago with a retro-
up on the way to her lover in Portugal. Their
which they must burgle a police station to re-
spective series, travelled around, heard all the
conversations and clashes are pure delight,
cover seems fairly ordinary. Directed by Juuso
Dracula stories, applied a Japanese filter, and
and the chemistry between the pair is fantas-
Laatio and Jukka Vidgren.
returned to Transylvania last year to film this
tic. Directed by Hans Weingartner.
bloody saga of thirsty vampires coming from
MARIA BY CALLAS
Cluj to Tokyo via a portal in the Turda salt
HAVE YOU SEEN MY MOVIE?
Forty years after the loss of the most famous
mine. Delirious and extravagant.
Cine-lovers will relish this unique film about
opera singer of all time, director Tom Volf
movies where people go to the cinema. Clips
tells the story of Maria Callas in her own
LOLA PATER
of over 1,000 scenes from classic films – some
words: rare or unpublished archive materials,
French film diva Fanny Ardant returns to
well known, others less so – meet in this tour
intimate letters, recorded conversations, and
Romania to receive an award for her career,
de force, perfectly welded together. It is not
interviews. In an age of celebrity gossip and
presenting not only her new film as director
only the most appropriate homage to the
scandal, this “pure” autobiography is more
(Couch, starring Gerard Depardieu) but also
seventh art, but also a nostalgic reminder of
than welcome.
one of her most challenging roles: a transsex-
the magic of the movies. Directed by Paul
ual who reconciles with the son he left when
Anton Smith.
opting for his sex change.
SHOCKPROOF FILM FESTIVAL After last year’s TIFF, which showcased an
HEAVY TRIP
erotic film festival in Helsinki, Viva Erotica,
303
A heavy metal band from a small Finnish
in 2018 a special guest is this Czech festi-
Two students cross Europe in an old Mercedes
village travel to a music festival in Norway on
val specialized in rare B movie projections.
www.business-review.eu Business Review | May 2018
CINEMA 41
Highlights include a VHS projection of cult movie Trash Humpers, featuring four real live dumpsters.
AURORA Cristi Puiu returns to TIFF – after last year’s event hosted the Blu-ray presentation of Sieranevada – with the Blu-Ray edition of his third film, Aurora. The Aurora movie and book collection was launched this year at the
The Open Air atmosphere of the biggest film festival from Romania
Leipzig International Book Fair and contains not only a retouched version of the film, but
director Sion Sono, which is inspired by local
rible crimes committed in the name of love
also a few unique photos from it.
myths and was shot on location in Transyl-
by an enigmatic figure living in the bowels
vania. Moreover, following the success of
of the Paris Opera House will be presented
EDITOR’S NOTE
its first run last year, infiniTIFF – the section
for the first time at TIFF with a live musical
Other highlights: the incredible Castle week-
dedicated to new storytelling forms, includ-
performance. Last but not least, one of the
end, a rich program of interactive games, cre-
ing interactive and virtual reality – returns in
biggest films of the 1980s, Luc Besson’s Le
ative workshops, and shows for children will
a special space in Cluj Hub, where audiences
grand bleu / The Big Blue (1988) returns to
run during the day, while at night the grounds
can discover an exciting selection of VR, live
Romania 30 years after its premiere, on the
of Banffy Castle in Bontida will host hotly
cinema, and loop cinema experiences.
largest screen, in Cluj’s Unirii Square, closing
The cine-concert series are well worth a
the 17th TIFF. The screening will take place
May 26 an aerial acrobatics show will open
listen, while Samuel Liégeon’s brilliant impro-
on June 3 in the presence of star Jean-Marc
the screening of Alfred Hitchcock’s first cred-
visations will also accompany the screening
Barr, and will be presented as a double feature
ited film, The Pleasure Garden (1925), accom-
of one of the best-known silent horror films,
with Lefteris Charistos’s spectacular Dolphin
panied by Notes & Ties chamber ensemble.
The Phantom of the Opera (1924). Rupert
Man (2017), which tells the story of legendary
The weekend will conclude with the premiere
Julian’s classic adaptation of Gaston Leroux
diver Jacques Mayol, Besson’s inspiration for
of Tokyo Vampire Hotel, from Japanese
’s eponymous novel about a series of hor-
the film.
anticipated screenings and ciné-concerts. On
www.business-review.eu Business Review | May 2018
42 FILM
In the Fade (Aus dem Nichts) FILM REVIEW
By Debbie Stowe little family unit. With such highly emotive
DIRECTOR: Numan Acar STARRING: Diane Kruger, Denis Moschitto, Johannes Krisch, Ulrich Tukur, Samia Chancrin, Numan Acar, Rafael Santana ON AT: Cinemateca Union, Europa, Grand Cinema & More, Cinema City Cotroceni
D
subject matter, it would be hard to leave an audience unmoved, and the immediate aftermath of the incident makes for harrowing viewing, thanks also to a powerful yet astutely understated turn from Kruger. A bereaved mother could be played (justifiably) for high drama with frequent screaming and
iane Kruger gives a compelling
wailing, but the actor manages to convey just
performance as a mother living every
as much heartache and anger in looks and
parent’s worst nightmare in this Ger-
facial expressions.
man Palme d’Or nominee, part family tragedy,
Narrative wise, several directions are
part courtroom drama, part revenge thriller.
hinted at without being fully explored. Bitter
In a stylistically striking prologue, incar-
family exchanges with grieving grandparents
cerated Turkish drug dealer Nuri (Numan
make for fraught viewing, but the relatives
Acar) is cheered on by his fellow inmates as
are soon dispatched: this is a journey that
he heads for his oddly romantic prison wed-
Katja must make on her own.
ding to Katja (Kruger) a free-spirited German.
The incipient investigation into the crime
Fast forward six or seven years and the couple
also suggests that we might be in for a police
part of the film, losing some of the narrative
have swapped their edgy lifestyle for middle-
procedural, but before that idea is expanded
momentum and atmospheric tightness, and
class respectability: Nuri has an office job and
upon the suspects are identified with unex-
taking Kruger’s character into territory that
Katja takes care of their winsome six-year-old
pected ease (an unlikely development that is
doesn’t accord with the discipline of her im-
son Rocco (Rafael Santana).
explained later on).
pressive performance – which earned her the
We sit through a series of fairly banal fam-
Making up the central part of the story
Best Actress prize at Cannes.
ily scenes and innocuous shots, which are
is the trial, where there is tension in the
almost unbearable to watch as we expect di-
defense’s strategy to derail the prosecution
to probe the psychology of the perpetrators:
saster to strike at any moment. When it does,
case, and Katja’s exchanges with a relative of
we learn their broad background and motiva-
it is handled sensitively by director Fatih
the defendants.
tion, but Akin tells us nothing about what led
Akin; it’s all over early on and the movie’s
The final act, which centers on the protag-
Another notable omission is any attempt
them down that path or what they hoped to
main business is with how Katja responds to
onist’s response to the trial outcome – while
achieve by their act. The politics of this story
the atrocity that has ripped apart her precious
still gripping and dramatic – is the weakest
are very much overshadowed by the personal.
Gringo FILM REVIEW
By Debbie Stowe
A
US pharmaceutical company dispatches a hapless middle manager to Mexico as it prepares to tell the
local mafia that the firm will be discontinuing its dodgy deals with them owing to having to undergo due diligence prior to a takeover. Meanwhile, a naïve young music store clerk also heads south of the border with his girlfriend to earn some extra cash as a drugs
DIRECTOR: Nash Edgerton STARRING: David Oyelowo, Joel Edgerton, Charlize Theron, Amanda Seyfried, Thandie Newton, Sharlto Copley ON AT: Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall
mule. What could possibly go wrong? There are many flaws in this silly crime comedy, including casual racism and sexism and a surfeit of violence. But it’s also very funny, especially thanks to big hitters Charlize Theron and Joel Edgerton, who play a couple of big pharma bosses who are so utterly amoral that it’s a joy to behold.
www.business-review.eu Business Review | May 2018
44 EXPAT EYE
Steering clear of a dangerous celebrity In the magazine’s monthly musings on Romania through the eyes of an outsider, BR’s resident Brit ponders health issues and wonders whatever happened to spring. By Debbie Stowe
I
’ve written previously on what I love about living in Romania. Three years ago, nothing would have induced me to con-
sider moving back to the UK. The weather, the prices, the career opportunities, the lifestyle – it’s all much more favorable here (at least, from my point of view as a British expat). The balance has, however, tipped slightly now I’m the custodian of two little people and have to start doing some reluctant “adulting”. Whereas, before, meals out in swanky restaurants and afternoon cinema trips loomed large in my quality of life calculations, now I have to be sensible and consider the more serious issues of healthcare and education. My one intersection with state medical facilities in Bucharest was absolutely fine, but of course media reports – especially since
tend to watch Romanian TV shows or read
minds: an anti-vaxxer awarded at an event
the Colectiv disaster and the Hexi Pharma
the tabloids (for obvious reasons). After 15
dedicated to healthy living.
hospital disinfectant scandal – show that not
years here I could probably tell the difference
everyone has a good experience.
between Andreeas Esca, Raicu and Marin,
and furor, sponsors including Medicover Ro-
but I don’t think my knowledge goes much
mania and Aqua Carpatica rationally threat-
deeper than that.
ened to withdraw their support if the award
Romania performs pretty poorly for many health indicators when compared with its fellow EU member states. The measles epidemic
So I had never heard of one, Olivia Steer
After a collective social media facepalm
was not retracted. Money talked, and it was. No surprise that Steer is good buddies with
has been particularly awful to read about –
until this month. For those of you who
and not just because child health is pertinent
haven’t either, she’s a TV presenter who has
the hateful, misogynist, homophobic Coali-
to me at the moment. In April it was reported
also become a self-styled healthy living guru,
tion for the Family, who share her views on
that a nine-month old baby had died of the
with a sizeable Facebook following (a sort of
vaccination. Opposing a simple measure that
disease, taking the death toll this year to 46.
local Gwyneth Paltrow). She’s also a vocal op-
would save babies’ lives… how wonderfully
ponent of vaccination.
pro-family!
What’s especially sickening about this is that measles is preventable. Since 2000, there
While people are entitled to make their
have been no more than two deaths a year
own health decisions (provided they don’t
SPRING HAS SPRUNG AWAY
from measles in England and Wales. This,
harm others), to be a public figure in a
Expats often rave about Bucharest in spring
of course, is thanks to the vaccinations that
country where large swathes of the populace
– the lovely temperatures (not too hot, not
UK children get, free of charge, on Britain’s
remain relatively uninformed, with little
too cool), the fragrance of the trees… It’s a
much-loved National Health System.
access to reliable sources of medical facts
shame, then, that spring is cancelled this year.
and advice, and to actively deter people from
It seems like we had deep snow and blizzards
lack of availability and access, contribute to
having their children immunized against a
right up until the end of March, while since
the low vaccination rates in Romania, but the
potentially fatal disease is grossly irrespon-
the beginning of April the mercury has been
worst of them is a strong “anti-vaxxer” move-
sible, if not downright wicked.
nudging 30 degrees.
Various reasons, including poverty and
ment – people campaigning against parents having their children immunized. Most expats have little interest in or
The reason Steer was in the news recently
And while human nature means that we
was because, in an Orwellian development,
immediately switch from grumbling about the
she won a prize for her active role in society…
cold to grumbling about the heat (the non air-
knowledge of local celebrities – or “personu-
at a gala celebrating women who promote
conditioned buses! the sweat!), give me this
litates” as some wryly call them. We don’t
good health. Yep, just run that over in your
over British weather any day!
www.business-review.eu Business Review | May 2018
RESTAURANT REVIEW 45
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had received mixed reports about
impersonating parmesan and a complete
pretty sight as the marinade dripped down
this place, so I had to grace it with a
fraud. We had a new waiter now who remon-
her wrist – but did the teenage waiters offer
visit, and I wish I had not! The décor
strated that it was parmesan. I sent him to the
her a finger bowl? Not a chance. Away we went to a simple hummus
is delightful, and packs a punch of ‘youth
kitchen to ask the ‘chef’ and he sheepishly
appeal’. To add to this, the waiters are ab-
returned to tell me I was correct. Even the
which both looked like, and had the texture
surdly young and inexperienced, but more
olives were second rate. I expected meaty
of, wet cement. If the chef knew the five
of that later.
Greek ‘Kalamata’, but no – I got tiny cheap
simple ingredients to make this simple
olive bullets which nature had designed to
dish, he didn’t know the correct amounts
break your teeth on the stone.
to blend. It was so bad that I suspect the
So Blondie and I went there on a Tuesday at 2 pm. We expected to see the remnants of a busy lunch, but no – there was
Blondie was also disenchanted with her
kitchen used ordinary white beans rather than chickpeas.
only one table of two people eating. I real-
choice of simple vegetable spring rolls with a
ized that the locals who should have popu-
sweet chili dip. The dip was cloying thick sug-
lated the place knew something about Pow
ar water with a few chilies which did nothing
‘muschi de vita’ – OK, a steak which was in-
Wow that I did not, namely that the food is
to add to the flavor, and all colored with a
explicably accompanied by a creamy mush-
crap. The menu revealed safe choices, which again would appeal to the
And now for my punishment. I ordered a
room dip. What an absurd combo. A
splash of tomato pu-
steak should be complimented
ree.
young, but whether they
by a dish that respects
could afford it is another
and enhances its strong flavor, such as
matter.
horseradish (hrean)
So I started with a ‘selection’ of Italian
or mustard, but not
salami, with olives,
this weak, wimpy
mozzarella and
mushroom mush. The boy waiter
parmesan – all a few
did not bother to ask
grams in weight (save
me how I wanted my
for the heavy cheap
steak (at RON 60) to be
mozzarella) and at RON
cooked. I always ask for
43 they were taking the piss! I asked our waiter to tell me the varieties of salami in my ‘selec-
‘medium’ but it arrived ‘well
But the
done’. Again, I blame the chef, who
culprit that destroyed
tion’. “But it is salami,” he protested. It was
this dish was the rolls, which should be deep
should have sent the kid back to ask me
blindingly obvious that the kitchen had not
fried and arrive thick, firm and crispy. No,
how I wanted it to be cooked, but he did not
prepped him, and that he knew nothing
she got a bunch of rolls which had not seen
do so.
about food. Hardly surprising, as the chef
a fryer, as thin as your smallest finger and
knew nothing either.
resplendent with a texture like chewing gum.
of house red to wipe away the ghastly taste
I suspected they just microwaved them from
from my palate, and it arrived at a whop-
frozen, or heated them in an oven.
ping RON 25.
The ‘selection’ was one variety only on my plate. The cataracts of ignorance fell from his eyes when I informed him salami
Nor did she win first prize in the lottery
To add to my misery, I asked for a glass
There is no hope that this place will
is not a brand, but a collective term to
of culinary excellence with her choice of
survive unless it replaces every member
describe literally hundreds of varieties of
marinated pork ribs at RON 41. Meat should
of its staff, both kitchen and waiters, with
meat/pork products. The lazy kitchen had
be marinated to enhance its flavor and to
seasoned professionals. But I fear it will not
popped around to Mega Image and bought
tenderize it. Her ribs should have been mari-
do so, in which case I predict this temple of
some packs, and slapped three razor thin
nated overnight, but not these, which were
mediocrity will not be here in 12 months’
slices of salami on my plate at RON 43.
tough, overcooked and coated with a slimy,
time.
Worse still, as I am a chef, one look at the
unpleasant sauce. She was forced to tear the
‘parmesan’ told me it was ‘Padano Grano’ (I
ribs apart with her hands in order to eat them
didn’t need to taste it) – a cheap look-alike
by biting the meat off the bone. It was not a
Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | May 2018
46 CITY
Cultural calendar Burgerfest May 11-13, VerdeStop
By Oana Vasiliu
Ballet Flamenco Español May 15, Sala Palatului
Over 70 burgers – some made according to traditional recipes,
Spanish artists will stage an
others surprising and innovative
explosive show, combining tra-
– await sampling. The number
ditional flamenco with modern
and, last but not least, technol-
of participating restaurants has
elements in a complex music
ogy. The idea for this convention
Musical Mamma Mia! May 24-27, Sala Palatului
increased significantly, with at
and dance performance. Ballet
came from the famous Comic
The ABBA-inspired hit musical
least 27 restaurants across the
Flamenco Español was set up
Con San Diego International.
Mamma Mia! is a Slovene-Ro-
country taking part, includ-
in 2017 by Tito Osuna, with the
East European Comic Con is one
manian co-production, starring
ing eateries from Brasov, Cluj,
aim of showing the world both
of the most important events
Horia Brenciu, Aurelian Temisan,
Constanta and Ramnicu Valcea.
traditional Spanish and flamenco
of its kind in Europe and the
Cornel Ilie, Ciprian Teodorescu,
Entrance costs RON 18 per day.
dance, which are often confused.
biggest in Eastern Europe. At-
Ernest Fazakas, Adrian Nour and
A ballet company made up of
tendance starts from RON 25
the wonderful Loredana Groza.
soloists from the best flamenco
per day, while a full weekend
Ticket prices run from RON 69 to
bands in the world was born. The
subscription costs RON 80.
RON 289.
EUROPAfest - Bucharest International Jazz Competition 2018 May 14-17, Sala Dales
show is structured in three parts – Bolero, Zapateado a Mozart, and Flamenco Live – each with the role of presenting another side of Spanish dance. Tickets start from RON 50.
East European Comic Con 2018 May 18-20, Romexpo EUROPAfest – the Bucharest International Jazz Competition, ranked by the BBC among the top three jazz contests in Europe, has won its place among worldclass jazz events, being widely acclaimed by audiences, artists and specialists. Presenting different jazz styles, artists of the new wave and musical projects from
East European Comic Con,
the world’s iconic jazz centers,
organized by Yuzu Events & Kick
the event has also built a strong
off Events, aims to bring together
identity in the native cultural
fans of comic books, movies, TV
landscape, bringing a large num-
series, sci-fi and fantasy, gaming,
ber of spectators to concert halls.
Japanese culture, anime, manga,
Tickets cost RON 40.
board games, trading card games