ISSN 1582-6554 www.seap.usv.ro/annals
THE ANNALS OF THE
"ŞTEFAN CEL MARE"
UNIVERSITY SUCEAVA .
FASCICLE OF THE FACULTY OF
ECONOMICS AND
PUBLIC ADMINISTRATION
Year 8, no. 8, 2008EDITORIAL BOARD:
Editor-in-chief: Carmen NĂSTASE
Editorial secretary: Adrian Liviu SCUTARIU
Editors:Elena HLACIUC, Carmen CHAŞOVSCHI, Mariana LUPAN, Ovidiu Florin HURJUI
SCIENTIFIC COMMIT TEE:
Angela ALBU, „Ştefan cel Mare” University of Suceava, Romania George P. BABU, University of Southern Mississippi, USA
Christian BAUMGARTNER, International Friends of Nature, Austria Grigore BELOSTECINIC, ASEM, Chi şinău, Republic of Moldova Ionel BOSTAN, „Alexandru Ioan Cuza” University of Iaşi, Romania Aurel BURCIU, „Ştefan cel Mare” University of Suceava, Romania Gheorghe CÂRSTEA, Academy of Economic Studies, Bucuresti, Romania Simion CERTAN, State University of Chi şinău, Republic of Moldova Carmen CHAŞOVSCHI, „Ştefan cel Mare” University of Suceava, Romania Liliana ELMAZI, Tirana University, Albania
Cristian Valentin HAPENCIUC, „Ştefan cel Mare” University of Suceava, Romania Elena HLACIUC, „Ştefan cel Mare” University of Suceava, Romania
Elena IFTIME, „Ştefan cel Mare” University of Suceava, Romania Marian JALENCU, State University of Chi şinău, Republic of Moldova Miika KAJANUS, Savonia University of Applied Sciences, Iisalmi, Finland Stefanos KARAGIANNIS, Institute of Tourism Research, Athens, Gre ece Maria MUREŞAN, Academy of Economic Studies, Bucuresti, Romania Carmen NĂSTASE, „Ştefan cel Mare” University of Suceava, Romania Alexandru NEDELEA, „Ştefan cel Mare” University of Suceava, Romania Rusalim PETRIŞ, „Ştefan cel Mare” University of Suceava, Romania Abraham PIZAM, University of Central Florida, Orlando, Florida
Gabriela PRELIPCEAN, „Ştefan cel Mare” University of Suceava, Romania Gheorghe SANDU, „Ştefan cel Mare” University of Suceava, Romania
Pavlo SHYLEPNYTSYI, Bucovina State Academy of Fin ance, Chernivtsi, Ukraine Doru TILIUŢE, „Ştefan cel Mare” University of Suceava, Romania
Ion TORONCIUC, National University Yuri Fedcovici, Chernivtsi, Ukraine Viorel ŢURCANU, ASEM, Chişinău, Republic of Moldova
Diego VARELA PEDREIRA, University of A Coruna, Spain
Răzvan VIORESCU, „Ştefan cel Mare” University of Suceava, Romania
Valeriy YEVDOKYMENKO, National University Yuri Fedcovici, Chernivtsi, Ukraine
Text review and cover design :
Ovidiu Florin HURJUI Adrian Liviu SCUTARIU
Contact:
Faculty of Economics and Public Administration „Ştefan cel Mare” University of Suceava
Str. Universităţii nr. 13 720229 SUCEAVA, ROMANIA Phone: (+40) 230 216147 int. 103
E-mail:cercetare@seap.usv.ro
Journal web site:www.seap.usv.ro/annals
Faculty web site:www.seap.usv.ro
TABLE OF CONTENTS
SECTION 1. ECONOMY, TRADE, SERVICES ... ... ... 7 THE EU POLICY IN THE RESEARCH AND DEVELO PMENT - THE ROLE OF SUCEAVA UNIVERSITY I N THE REGIONAL CONTEXT ... ... 8
Professor Ph.D. Aurel BURCIU
Associate Professor Ph.D. Carmen NĂSTASE Associate Professor Ph.D. Carmen CHASOVSCHI "Ştefan cel Mare" University of Suceava, Romania
Ph.D. Researcher Miika KAJANUS
Savonia University of Applied Sciences, Iisalmi, Finland
COMPETITIVE ADVANTAG ES OF THE NATIONAL ECONOMY UNDER
CONDITIONS OF OPEN M ARKETS ... ... ... 17 Ph.D. Vitaly ALESHCHENKO
Institute of Economy and Organization of an Industrial Production of the Siberian Branch of the Russian Academy of Sciences, Omsk, Russia
Associate Professor Ph.D. Alexandru NEDELEA Ştefan cel Mare University Suceava, Romania
PROMOTING RURAL TOUR ISM IN KENYA AND ROM ANIA ... ... 22 Dr. Roselyne N. OKECH
Dept. of Ecotourism, Hotel & Institution Management, Faculty of Science, Maseno University, Kenya
Associate Professor Ph.D. Alexandru NEDELEA Ştefan cel Mare University Suceava
IMPACT OF THE TOURIS M DEVELOPMENT ON POV ERTY REDUCTION IN ALBANIA AS A COUNTRY IN TRANSITION ... ... ... 29
Ph.D. Evelina BAZINI
University of Vlora, Albania, Faculty of Economy and Law, Tourism Department
THE TOURISM IN VIEW OF REGIONAL DEVELOPM ENT IN THE NORTH -EAST REGION OF ROMANIA ... ... ... ... 36
Assistant Ph.D. Student Adrian Liviu SCUTARIU “Ştefan cel Mare” University of Suceava, Romania
Associate Professor Ph.D. Cristian Valentin HAPENCIUC “Ştefan cel Mare” University of Suceava, Romania
THE PROCESS OF EU IN TEGRATION, REGIONAL DEVELOPMEN T, AND CROSS-BORDER COOPERATION ... ... ... ... 44
Assistant Alina LARION
Lecturer Ph.D. Marilena-Oana NEDELEA
“Stefan cel Mare” University of Suceava, Romania Professor Ph.D. Liliana ELMAZI
Tirana University, Albania
SOCIAL PROTECTION AN D THE CONFLICTUAL RE ALITY FROM ECONOMY ... 50 Assistant Ph.D. Student Gabriela -Liliana CIOBAN
„Stefan cel Mare” University of Suceava, Romania
THE STATE OF LEGAL M ARKETING IN LATIN AM ERICA ... ... 57 Junior Research Worker Elina ZABOLOTNA
Bukovyna State Finance Academy, Chernivtsy, Ukraine
THE STRUCTURAL ANALY SIS OF MODERN ECONOM IC SYSTEMS ... 61 Associate Professor Ph. D. Zoya HALUSHKA
THE DYNAMICS OF THE EXTER IOR COMMERCE OF ROM ANIA IN 2007 ... 65 Lecturer Ph.D. Cecilia Irina RABONTU
Associate Professor Ph.D. Amelia Georgiana BONCEA Lecturer Ph.D. Marcel ROMANESCU
University “Constantin Brancusi” of Tg-Jiu, Romania, Faculty of Economic Sciences
SECTION 2. MANAGEMENT AND BUSINESS ADMINISTRATION ... . 70 APPRECIATIONS REGARD ING EXTERNAL CAPITAL IN ROMANIAN ECONOMY IN THE SECOND HALF OF T HE 19TH CENTURY AND THE FIR ST TWO DECADES OF THE 20TH CENTURY ... ... ... ... 71
Professor Ph.D. Maria MUREŞAN
Academy of Economic Studies Bucharest, Romania Lecturer Ph.D. Oana Mihaela VĂSIOIU
Ecological University of Bucharest, Romania
CUSTOMER RELATIONSHI P MANAGEMENT IN MACE DONIAN
TELECOMMUNICATIONS ... ... ... ... 77 Assistant Professor Ph.D. Lidija PULEVSKA-IVANOVSKA
Faculty of Economics,“Ss. Cyril and Methodius” University Skopje, Macedonia
SOME ASPECTS ABOUT T HE SMALL BUSINESS AN D EU POLICY ... 85 Lecturer Ph.D. Student Mariana LUPAN
Stefan cel Mare University of Suceava, Romania
INVESTMENT PROJECTS: GENERAL PRESENTATIO N, DEFINITION,
CLASSIFICATION, CHARACTERISTI CS THE STAGES ... ... 92 Eng. Ec. Ph.D. Student Ioan HURJUI
Accounts Chamber Suceava
Assistant Ph.D. Student Marcela Cristina HURJUI „Ştefan cel Mare“ University of Suceava
THE CONTROL OF INVES TMENT PROJECTS: TYPE S OF CONTROL, THE ST AGES OF THE PROCESS, CONT ROL SYSTEMS ... ... ... 99
Eng. Ec. Ph.D. Student Ioan HURJUI Accounts Chamber Suceava
THE IMPACT OF LEADER SHIP ON THE ORGANIZA TIONAL LEVEL ... 108 Eng. Claudia FRĂŢILĂ
„Ştefan cel Mare”University of Suceava, Romania
ROMANIA COHESION POL ICY... ... ... 113 Assistant Ph.D. Student Marcela C ristina HURJUI
Ştefan cel Mare University of Suceava, Romania
ANALYSIS OF CROSS -BORDER COOPERATION A S THE WAY OF EUROPEA N INTEGRATION OF UKRAI NE ... ... ... 118
Rector, Doctor of Sciences, Professor Volodymyr PRYADKO Vice-rector, Ph.D. Associate Professor Pavlo SHYLEPNYTSKYI Bukovyna State Finance Academy, Chernivtsi, Ukraine
SECTION 3. ACCOUNTING - FINANCES... ... ... 123 THE ACCOUNTING HARMO NIZATION IN THE PROC ESS OF NATIONAL REFO RM IN BASE OF THE IAS / IFRS STANDARDS ... ... ... 124
Economist Ph.D. Camelia DOGARIU
West University of Timisoara, Faculty of Economic Studies, Timisoara, Romania Master Student Enathe MUREKABIRI URIMUNBESHI
Faculta di Economia e Comerc io Della Universita di Parma, Italia Assistant Ph.D. Student Muvuny BONAVENTURE
SPECIFIC FEATURES AB OUT COMMUNICATION AN D THE IMPORTANCE OF THE ANNUAL FINANCIAL STA TEMENTS IN THE PROCE SS OF COMMUNICATION ... 129
Professor Ph.D. Elena HLACIUC Lecturer Ph.D. Camelia MIHALCIUC
“Stefan cel Mare” University of Suceava, Romania
THE PLANIFICATION OF A N AUDIT OF ANNUAL FI NANCIAL SITUATIONS F ROM THE VIEWPOINT OF THE INTERNATIONAL STAND ARD OF AUDIT 300 ... 136
Professor Ph.D.Viorel ŢURCANU
Academy of Economic Studies of Moldova, Republic of Moldova Professor Ph.D. Ionel BOSTAN
University Stefan cel Mare Suceav a, Romania Doctor of Science Professor Dorel MATEŞ
West University of Timisoara, Faculty of Economic Studies, Timisoara, Romania Assistant Marian SOCOLIUC
Assistant Veronica GROSU
University Stefan cel Mare Suceava, Romania
THE EVOLUTION OF THE INTERNATIONAL STANDARDS OF ACCOUNTANCY IAS/IFRS, AREA OF APPLICATION AND THE ME CHANISM OF ADOPTION ... 142
Professor Ph.D.Viorel ŢURCANU
Academy of Economic Studies of Moldova, Republic of Moldova Doctor of Science Professor Dorel MATEŞ
West University of Timisoara, Faculty of Economic Studies, Romania Professor Ph.D. Ionel BOSTAN
Assistant Veronica GROSU Assistant Marian SOCOLIUC
University Stefan cel Mare Suceava, Romania
THE IMPORTANCE OF MO DERN E-BANKS FOR DEVELOPMEN T OF NEW ECONOMY ... ... ... ... 147
Lecturer Ph.D. Camelia Catalina MIHALCIUC Lecturer Ph.D. Student Anisoara Niculina APETRI “Stefan cel Mare”University, Suceava, Romania Assistant Ph.D. Student Muvuny BONAVENTURE Faculty of Economy, University of Kigaly, Rwanda
LIQUIDATION BY AND O UTSIDE THE LAW OF BA NKRUPTCY AND OF INSOLVABILITY ... ... ... ... 152
Lecturer Ph.D. Irina-Ştefana CIBOTARIU Ştefan cel Mare University of Suceava, România
ECONOMIC ENTITY PERF ORMANCE APPROACH CON SIDERING THE
RELATIONSHIP BETWEEN EFFICENCY – PROFITABILITY –
COMPETITIVENESS ... ... ... ... 158 Lecturer PhD. Student Anişoara-Niculina APETRI
Professor Ph.D. Gheorghe SANDU Lecturer PhD. Irina-Ştefana CIBOTARIU „Ştefan cel Mare” University Suceava, Romania
THE ROLE OF RESPONSI BILITY CENTERS IN TH E OVERALL PERFORMANC E OF THE ENTITY... ... ... ... 162
Ph.D. Student Camelia OBREJA
POSSIBILITIES OF OPE RATIONAL PURSUIT OF RECALCULATED COSTS (PREVIOUSLY ESTABLIS HED, STANDARD) WITHIN T HE FIELD OF MANAGEME NT ... ... ... ... ... 170
Ph.D. Student Camelia OBREJA
University „Valahia“ of Targoviste, Romania
ROMANIAN FINANCIAL SYS TEM AND ECONOMIC GRO WTH ... .. 179 Lecturer Ph.D. Student Bogdan FÎRŢESCU
“Al. I. Cuza” University of Iaşi, Romania
THE ACCOUNTANT INFOR MATION. DEMAND AND O FFER... ... 186 Assistant Irina CHIRIŢĂ
“Stefan cel Mare“ University, The Economy and Public Administration Faculty, Suceava, Romania
Assistant Ioana ZAHEU
Romanian American University, Bucharest, Romania
SECTION 4. STATISTICS, DATA PROCESSING (INFORMATICS) AND
MATHEMATICS ... ... ... ... 190 ANALYSIS OF REPARTIT ION FORM IN DISTRIBU TIONS OF FREQUENCIES ... 191
Associate Professor Ph.D. Elisabeta R. ROŞCA „Stefan cel Mare” University of Suceava, Romania
ANALYSIS OF VARIANCE USED IN THE STUDY O F THE RELATIONSHIP B ETWEEN VARIABLES ... ... ... ... 202
Associate Professor Ph.D. Elisabeta R. ROŞCA „Stefan cel Mare” University of Suceava, Romania
ECONOMIC MODELS THAT LEAD TO LINIAR PROG RAMMING PROBLEMS ... 212 Lecturer Ph.D. Student Anamaria G. MACOVEI
"Ştefan cel Mare" University Suceava, România, Faculty of Economics and Publ ic Administration
ECONOMIC MODELING PR OCESSES USING MATLAB ... ... 218 Lecturer Ph.D. Student Anamaria G. MACOVEI
"Ştefan cel Mare" University Suceava, România, Faculty of Economics and Public Administration
Eng. Ec. Ph.D. Student Sorin T. SIRETEAN
"Ştefan cel Mare" University Suceava, România, Faculty of Mechanical Engineering, Mechatronics and Management
SECTION 5. LAW AND PUBLIC ADMINISTRATION ... ... 223
COMPARATIVE ANALYSIS OF LOCAL FINANCIAL AUTONOMY IN THE
EUROPEAN UNION COUNT RIES ... ... ... 224 Ph. D. Student Elena RUSU
“Al. I. Cuza” University, Faculty of Economics and Business Administration, Iasi, Romania THE ROLE OF POLITICA L ADVISORS IN EUROPE AN UNION COUNTRIES ... 231
Lecturer Ph.D. Răzvan VIORESCU
“Stefan cel Mare” University of Suceava , Romania Associate Professor Ph.D. Diego VARELA PEDREIRA University of A Coruna, Spain
THE NATURE OF THE PO LITICAL RESPONSIB ILITY OF THE ADMINIS TRATION AND OF ITS MEMBERS ... ... ... ... 237
Lecturer PhD. Student Gabriela NEMŢOI
SECTION 1
THE EU POLICY IN THE RESEARCH AND DEVELO PMENT - THE ROLE OF SUCEAVA UNIVERSITY I N THE REGIONAL CONTE XT
Professor Ph.D. Aurel BURCIU aurelb@seap.usv.ro
Associate Professor Ph.D. Carmen NĂSTASE carmenn@seap.usv.ro
Associate Professor Ph.D. Carmen CHAŞOVSCHI carmenc@seap.usv.ro
"Ştefan cel Mare"University of Suceava, Romania Ph.D. Researcher Miika KAJANUS
Savonia University of Applied Sciences, Iisalmi, Finland miika.kajanus@savonia.fi
Abstract:
A university is an institution of higher education and research, which grants academic degrees at all levels (associate, bachelor, master, and doctorate) in a variety of subjects. A university provides both undergraduate education and postgraduate education. The European Union gives a main role to the research, development and innovation domain (RDI) for consolidation of the competitiveness and for the economical growth.
In Romania the most important objective of the Universities is the education of the young generation and its through specialization in various fields of activity. The goals of the university in th is direction are: boost the cross border economic development process by increasing the amount of entrepreneurs who are establishing start ups cross -border; to upgrade human resources by enhancing the number of start -up entrepreneurs cross-border with viable business plans and by training local trainers. In University of Suceava there are some projects will help to consider promoting entrepreneurship project outside of formal school activity as an educational leisure and as a learning activity for young people. Those projects are a precursor for the establishment of business incubators in the region. With those project crucial insights will be gained in the need, willingness and possibilities for the establishment of business incubators in the cross -border region in the coming years .
Keywords: development, education, EU policy, research, university
1. INTRODUCTION
In our society, the education and research -development activity has become two vectors of the economic development, where all the nations – including EU – explicitly situating these components on long term strategies’ basis. If the labor force, meaning the employees of a country or company, presents a high education/qualification, it will be obviously for that country/company to dispose of a competitive advantage.
2. THE EU POLICY ON EDUCATION
The development of modern economies, especially in the area of those three “poles of power”, EU, USA and Japan, has determined the reconsideration of the educational politics and the extension of the different “schooling” forms beyond universities lectures. In EU, next to the communitarian institutions, the national authorities and diverse international organizations/ organisms (OECD, World Bank, WTO etc.) give more importance to the sector of education and is offering assistance in order to assure the quality of the educational processes for being a factor of human development, sustainable economical growth and social cohesion.
OECD has proposed for the first decade of the new millennium some strategic ob jectives in this field, objectives that, implicitly, are adopted even in EU (1):
1. The promotion of the continue education - lifelong learning. 2. The evaluation and improvement of education results 3. The promotion of a superior qualitative didactic activity.
Essentially, can be said that the world countries become established in global competition by education and science; especially the science is translating in general economic growth by multiple and complex ways, and in the USA case, the estimations shows that the science itself has represented half of the American economic growth in the last five decades (2).
The major changes that influence the conditions in which in the present is unrolling the educational process in the entire world, changes that has to be considered even by EU includes (3):
The globalization is emphasizing leading to an increment of the persons’ mobility, of the access to knowledge out of the national borders, to the growth of demand for education, including e-learning, to the growth of the adults needs for continuation of their education, to the increasing of investments etc. As a result the opportunities for the increasing and diversification of the superior education “market” are growing.
The information technology and communications are rapidly extended in entire world concomitant with their application possibilities in the education field. In many parts of the world the information technology can assure the access to education for the persons that cannot be served by the traditional institutions.
The competition in superior education has grown significantly in the last years in USA, Europe and Asia; the competition in t his field will put face to face the European universities and the American ones, in connection with public politics from other fields, such as research, innovations, and the new technologies etc.
One of the objectives mentioned in March 2000 at Lisbon is that EU should became the most competitive and dynamic economy of the world, based on knowledge, capable to assure a sustainable economic growth and many better work places and a bigger social cohesion. The European Council has underlined the determinant r ole of the educational system in reaching this goal and in promotion of the humanist values of the European society.
In this context the ministries of education from the member states has adopted the following strategic goals for this decade (4):
1. the growth of quality and efficiency of the educational system in EU;
2. the facilitation of the access to the diverse forms of education and professional formation for all the Union citizens;
3. The opening of the educational system to entire world.
Synthetic the statistic data related to the expenses for education in EU compared with USA and Japan shows that the EU average (25) is situated significant behind the financial effort made by the USA or Japan (according to data from the following).
Table no 1. Total expenses for education
Weight in GDP (Public and private total)
(%)
Annual expenses per student/pupil (EUR/PPS)
EU (25) 5,5 5518
USA 7,5 10.005
Japan 4,9 6779
Figure no. 1. The Weight expenses for education in GDP in EU, USA and Japan (%)
5.50% 7.50% 4.90%
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% EU(25)
USA Japan
The source: Europe in Figures– Eurostat Yearbook 2006-2007, http://ec.europa.eu
Figure no. 2. Annual expenses per pupil/student in EU compared with USA and Japan (EUR/PPS)
5518
10005
6779
0 2000 4000 6000 8000 10000 12000
EU(25) USA Japan
The source: Europe in Figures– Eurostat Yearbook 2006-2007, http://ec.europa.eu
In 2002 was adopted the Education and Professional Formation 2010 program, which will be applied by the „open coordination method ", respectively by Member States and European Commission formulation in common of the leading ways of actions. Systematic implementation of theEducation and Professional Formation 2010program supposes the finalization of the document which promotes the European Qualifications Frame (EQF) for facilitating the mobility in Europe, an instrument utile for classification and comparison of the learning results at national and sectoring European level.
The access to lifelong learning for all EU citizens is regarded as the fundamental princi ple of the national education and professional formations systems. All of the EU member states recognize the fact that the modifications occurred in conditions, frame and nature of the work necessarily impose the application of the lifelong learning concept, respectively learning and information from the individuals, companies, institutions, society and the all economy sides. It is appreciated that the dimensions of the current economic and social changes and the rapidly transition toward a society based on knowledge impose a new conception over the education and professional formation and also the making of an European area of lifelong learning (5).
After Lisbon, Stockholm and Feira European Council, in the present they overtake to the Memorandum on Lifelong Learning,having certain strategic objectives:
the construction of public -private partnerships (between companies, universities, schools, NGO-s, research centers etc.);
the access facilitation to education for all, inclusively by consolidation of some local centers/universities that offering learning.
The main finding of the 2006 edition of the European Commission’s annual report on progress towards the Lisbon objectives in the field of education and training is that additional efforts are urgently needed to achieve the five benchmarks by 2010. The Commissioner concluded that “without better education and training systems, and wider parti cipation in them, Europe’s competitiveness cannot be improved. Investment in human capital is therefore clearly a vital investment in Europe’s future”; among the main findings of the report(6):
In the EU, about 6 million young people (18 -24 years olds) have left education prematurely; if we are to reach the European benchmark of no more than 10% early school leavers, then 2 million of these young people would need to continue in education.
If present trends continue, some 1 million students will graduate i n math, science and technology (MST) every year in the EU in 2010, compared to the present level of 755 000 graduates.
In order to achieve the EU benchmark of an 85% upper -secondary school completion rate by 2010, an additional 2 million young people (age d 2024 years) would need to complete upper -secondary education.
An additional 4 million adults would need to participate in lifelong learning within any four-week period in 2010 if the EU benchmark of 12.5% participation rate is to be achieved.
About one in every five 15-year-old pupils in the EU is presently a poor reader. Reaching the European benchmark for 2010 would imply that 200 000 pupils would have to improve their standard of reading.
The EU would need to more than double the amount it invests p er tertiary-level student (i.e. an increase of around 10 000 euros per year) to match the spending level in the USA; public investment in education and training as a percentage of GDP has grown slightly since the adoption of the Lisbon strategy, and is com parable with levels in the USA (and higher than in Japan). However, rates of private investment in educational institutions are modest in most Member States compared with the leading countries in the world (incl. the USA), especially in higher education.
During the coming 10 years, the EU needs to attract at least 1 million newly qualified teachers in order to replace those who will leave the profession due to retirement.
Most EU students are not taught at least two foreign languages from an early age, as requested by the Barcelona 2002 European Council; at present, an average of only 1.3 and 1.6 foreign languages per pupil are taught in the Member States in general lower - and upper-secondary education respectively.
3. THE EU POLICY IN THE RESEARCH AND DEVE LOPMENT (RD)
The European Union gives a main role to the research, development and innovation domain (RDI) for consolidation of the competitiveness and for the economical growth; this domain will be called synthetically Research and Development (RD). The important investments in research, development and innovation are essential for prosperity and economical growth at the level of those 27 member states of the EU; gradually, some strategies of the member states have emerged with projects/ programs promoted by the Council and by the European Commission. Especially beginning with 1983, after some evaluation that presented a disastrously situation in EU, comparing with USA and Japan, in research and development domain, and can be discussed a Community’s policy of the EU, that, essentially have included 7 Framework Programs (7).
The legal basis of the EU in RD domain, starts with the CECO Treaty, Euratom Treaty, EEC Treaty, European Unique Document (Act) , Maastricht Treaty etc(8).
As Toffler remarked, at all analysis levels, from the life style and culture continuing with military problems, but most of all business environment and economy, the difference between Europe and USA become more obvious.
The EU goal, mentioned through the Lisboan Strategy, is that until 2010 the R&D expenses should get to an intensity of 3%(indicator calculated as weight of the R&D expenses in the GDP), and from this 70% to be financed by the business enterprise sector. In 2004 tw o of the EU member states have achieved this indicator, and even exceeded; we mention Sweden and Finland that registered intensities of the expenses with R&D of 3,7% and 3,5% respectively. Per total, in which regards this indicator, the EU is situated at a modest level, comparing with other developed economies, if we are referring to USA and Japan, where this indicator reach the level of 2,66% and 3,2% respectively (9). (Figure no. 3), although in 1995-2004/2005 in these two countries the expenses with R&D had a fluctuant evolution (10).
Table no. 2 The intensity with the R&D expense in EU, comparing with USA and Japan
Weight in GDP, total public and private, 2004
(%)
RD annual expenses per citizen (USD/loc)
UE (27) 1,84
463
USA 2,66 978
Japan 3,20 893
Source: Adapted after Science, Technology and Innovation in Europe, EUROSTAT Pocketbooks, 2007;
Europe in Figures– Eurostat Yearbook 2006-2007, http://ec.europa.eu; the value of this indicator is for EU 25; the absolute value for the RD/citizen is for the year 2003.
The data included in the table shows a suggestive image regarding the position of the EU comparing with the USA and/or Japan in which regards intensity of the RD activity, as is presented, in the following charts (11).
Figure no. 3. EU versus SUA and Japan by the R&D weight in GDP
1.84%
2.66%
3.20%
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50%
EU US A JAP AN
Source: Adapted by Science, Technology and Innovation in Europe, EUROSTAT Pocketbooks, 2007;
Figure no. 4. EU versus USA and Japan by the annual value of the RD/capital
463
978
893
0 200 400 600 800 1000
EU U S A Ja p a n
Source: Adapted by Science, Technology and Innovation in Europe, EUROSTAT Pocketbooks, 2007;
Europe in Figures– Eurostat Yearbook 2006-2007, http://ec.europa.eu; the value of this indicator is for EU 25; the absolute value for the RD/capita is for the year 2003.
Expenditure on research and development (R&D) is a key indicator of government and private sector efforts to obtain competitive advantage in science and technology. In 2004, research and development amounted to 2,3% of GDP for the OECD as a whole (12).
Research & Development in the EU in relation to GDP, EU25 R&D expenditure stable at 1.9% in 2004. In real terms, EU25 R&D expenditure grew by 1,3% per year between 2001 and 2004. In 2004 the EU25 spent nearly 200 billion Euro on Research & Development (R&D). R&D intensity (i.e. expenditure as a percentage of GDP) in the EU25 stood at 1,90% compared to 1,92% in 2003. R&D intensity remained significantly lower in the EU25 than in other major economies. In 2003, R&D expenditure was 2,59% of GDP in the United States, 3,15% in Japan, while it was 1,31% in China 3. R&D expenditure in the EU25 rose by 1,3% in real terms on average per year between 2001 and 2004, compared to –0,1% in the United States and +1.8% in Japan between 2001 and 2003(13).
In 2003 the business sector financed 54% of total EU25 R&D expenditure, while the shares of the business sector in the United States and Japan were 63% and 75% respectively.
4. THE ROLE OF SUCEAVA UNIVERSITY IN THE REGIONAL CONTEXT
For the time being, there are almost 700.000 students in Romania, within about 70 public or private universities; from those 70 univ ersity, 49 are public, achieving respectively a part of yearly financing from state budget, but disposing of autonomy as regards the own strategies, policy in HRM (Human Resource Management)etc.
The typical organizational structure of a Romanian university – similar to situation of other western countries – include as basic “cell” the chair or department; this flowchart part has real competencies at three levels: educational (teaching -learning); of scientific research; managing.
Short History of the Suceava University
Taking the name of our Moldavian prince Ştefan cel Mare, the University is very much a part of the Town and develops in close connection with the cultural and historical realities of the area (Suceava Town: 110,000 people; Suceava County: 700,0 00 people); the main part of our students came from: Suceava County; Neamt County; Botosani County.
It continues as well the cultural traditions of higher education in Bukovina, as they have been represented by:
the Academy of Putna (1500 -1778 known as the Theological Institute from Putna, Bukovina);
the University of Cernauti(1875 -1918, in that period Suceava was part of Bukovina, region with capital Cernauti); in 1918 Romania became a unitary national state;
Suceava is one of the most attractive and historic town in Romania. Situated on the Land of Bukovina, one of the landmarks of Romania spirituality owing to the beauty and variety of its scenary, as well as to its rich legacy of historical and art monuments, Suceava is famous for its touristic and cultural life.
Suceava is one of the most attractive and historic town in Romania. Situated on the Land of Bukovina, one of the landmarks of Romania spirituality owing to the beauty and variety of its scenary, as well as to its rich legacy of historical and art monuments, Suceava is famous for its touristic and cultural life.
“Ştefan cel Mare" University of Suceava
The first step for Suceava University was made in 1963, by setting up the High Education Institute of Suceava; in 1990, the Government decided to give the status of University to the previous High Education Institute and so, Stefan cel Mare University of Suceava became one
important new medium size university in Romania.
Research and Development at the Suceava University
The University Stefan cel Mare is one of the most important institutions in the higher educational field in the nort h– east of Romania. The university is offering a modern educational -curriculum, following the example of modern universities of Europe, but , in the same time, keeping her own traditions.
The University Stefan cel Mare is a public institution educating in total 12000 students in nine faculties, with a number of 315 staff, teachers and researchers and 300 administrative staff (2007). The main contributions of University in local context are to be located in: educating skilled labor force for local administrations, commerce, services and industries; improving education and continuous education for practitioners, managers, namely in tourism -related issues research activities; partnership with different institut ions and firms.
Faculties and Departments of Suceava University are: Economics and Public Administration; Educational Sciences; Electrical Engineering and Computer Science; Food Engineering; Forestry; History and Geography; Letters and Communication Sciences; Mechanical Engineering Mechatronics and Manage ment; Physical Education and Sports, and departments: DPPD; International relations; DCTI; Distance learning; Quality management.
Environmental Education (Leonardo d a Vinci, implementation period 2006 - 2007), INNO-FOREST: Integrating innovation and entrepreneurship in higher forest ry education(implementation period 2005 - 2007), INNO-TOOLS Enterprise level Inno-tools– Innovation tool-box in European peripheral areas(implementation period 2007 - 2008),Leonardo vocational training according to EU standards for young graduates in th e field of adult education - implementation period 2005-2006, Developing of skills and competences for trainers in the field of formal and informal entrepreneurship training programmes for local community , CII-SK-0044-01-0506 - Applied Economics and Management, CENTROS– Counselling Centre for the unemployed.
The important projects related to the Structural Found are the two project financed trough the Phare CBC Cross Border. The VISEC (Virtual Incubation of Student Entrepreneurs Cross Border) project will help to enable the border region between Romania and Ukraine to consider promoting entrepreneurship projects outside of formal school activity, as an educational leisure and as a learning activity for young people.
The VISEC project is a precursor for t he establishment of business incubators in the region. With the VISEC project crucial insights will be gained in the need, willingness and possibilities for the establishment of business incubators in the cross -border region in the coming years. The primary target group of the VISEC project is young people from universities and schools of higher education who are finishing or just finished their studies. The secondary target group of the VISEC project is established SMEs who are looking for strong growth op portunities cross-border.
Another project - TESCA (Tourism Entrepreneurship in Suceava and Chernivtsy Area) project is a Human resources development project and will contribute to a steady upgrade of entrepreneurial skills and sustainable business cross b order enterprise cooperation from the tourism field. Common Interests of the partners are: to develop an endogenous capacity to train, develop and coach local entrepreneurs; to proof that common activities can have direct economic and social benefits through tourism development; to demonstrate the capacities of the involved institutions to obtain similar results in other regions; to adopt an entrepreneurship development method which is both efficient and effective; to increase number of local/international high-tech companies in tourism field.
University Stefan cel Mare of Suceava are also involved with the North -East Regional Development Agency, in the project RIS DISCOVER NE. The project objective is to develop the first Regional Innovation Strategy in No rth -East Region Romania that will contribute to the valorisation of its economic potential, based on an innovation support system.
4. CONCLUSION
In European Union, each member state assumes the entire responsibility for the educational systems and for the content of educative programs, based on the subsidiary principle. The EU role is to contribute to the development of a qualitative education by encouraging the cooperation between member states and, if is necessary, by completing their actions for the porpoise of developing the European educational dimension, by favoring the mobility and by promoting the European cooperation between educational institutions. European Union has specific means for stimulation of cooperation in this field by commune actions such as: programs for communitarian actions (Socrates, Leonardo da Vinci), which are submissive to the co-decision procedure and to the communitarian juridical acts (recommendations, communications) etc.
NOTES:
(1) OECD Work on Education 2005 - 2006,www.oecd.org
(2) A. Toffler, H. Toffler– Revolutionary Wealth, 2006; translated Avuţ ia în mişcare, Editura ANTET, 2006 (3) An Overview of Higher Education and GATS, www.acenet.edu
(4) Report from Educational Council to t he European Council,http://ec.europa.eu (5) http://ec.europa.eu/education/policies/lll/life/what_islll_en.html
(6) European Commisiona Annual Report,http://ec.europa.eu/education/policies
(7) G. Popescu– Economie europeană, Editura Economică, Bucureşti, 2007, pag. 179 (8) Porfiroiu, M., Popescu I., Politici europene, Editura Economică, Bucureşti, 2003, p. 21
(9) A. Toffler, H. Toffler– Revolutionary Wealth, 2006; translated Avuţ ia în mişcare, Editura ANTET, 2006 (10)Dates for Japan are for 2003 year
(11)Science, Technology and Innovation in Europe, EUROSTAT Pocketbooks, 2007
(12)http://oberon.sourceoecd.org/vl=1075868/cl=21/nw=1/rp sv/factbook/07-01-01.htm
(13)http://europa.eu.int/comm/eurostat/
BIBLIOGRAPHY:
[1] Popescu G.–Economie europeană, Editura Economică, Bucureşti, 2007
[2] Porfiroiu, M., Popescu I., Politici europene, Editura Economică, Bucureşti, 2003
[3] Toffler A., Toffler H. – Revolutionary Wealth, 2006; translated Avuţ ia în mişcare, Editura ANTET, 2006
[4] Lisbon Strategy
[5] European Commisiona Annual Report,http://ec.europa.eu/education/policies
[6] OECD Work on Education 2005 - 2006,www.oecd.org
[7] Science, Technology and Innovation in E urope, EUROSTAT Pocketbooks, 2007 [8] An Overview of Higher Education and GATS, www.acenet.edu
[9] Report from Educational Council to the European Council,http://ec.europa.eu
[10]http://ec.europa.eu/education/policies/lll/life/what_islll_en.html
COMPETITIVE ADVANTAG ES OF THE NATIONAL E CONOMY UNDER CONDITIONS OF OPEN M ARKETS
Ph.D. Vitaly ALESHCHENKO
Institute of Economy and Organization of an Industrial Production of the Siberian Branch of the Russian Academy of Sciences, Omsk, Russia
Associate Professor Ph.D. Alexandru NEDELEA Ştefan cel Mare University Suceava, Romania
alnedelea@yahoo.com Abstract:
In the article factors of economic growth of Russia at a globa l competitiveness are analy zed. In contemporary conditions, influence on competitiveness of national economy is emerged . There were necessary system transformations in conditions of transition from scheduled to the market pattern of functioning in the Russian economy. Branch changes of development of economy in conditions of the open market allow asserting that the national economic system works in a regime of reproduction of the competitive enterprises. Due to economic reforms from the last period, competitive and noncompetitive sectors have come to light in an obvious kind in an industry and in agriculture (in agrarian sector these processes passed with a delay). Competitiveness of the Russian economy at the present stage bases on production of low technological repartitions, is mai ntained by tactical price factors, and practically does not mention material production conditions that make a similar sort of competitiveness rather unstable in the long -term period. Besides the national economic system movable only by market forces is fa r from being always in state to generate desirable structural shifts.
Key words: competitive advantages, national economy, open markets, Russian economy
1. INTRODUCTION
Gradual slowing down of rates of economic growth of Russian economy, as well as th e majority of the socialist countries, accompanied with stable decrease of productivity of major factors of production, was supervised already from second half of 1970th. However landslide falling of volumes of the Russian production began in 1990 -1991, in connection with destroying of scheduled system of economic relations. General changes during system reorganization of Russian economy (1991 - 1997) were defined by a complex of factors, first of all process of reduction of inefficient branches and sectors of industry and agriculture in conditions of open economy. However it has caused sharp reduction of cumulative internal demand and has resulted to strong decrease of production even in competitive industries.
As a result of rapprochement of internal and g lobal prices at existing technological structure there was a falling profitableness of production in noncompetitive branches and curtailing of corresponding productions. At the same time, competitive branches nevertheless have managed to save high levels of production, investments and employment. As a whole, after first seven years of economic reforms (1991-1998) the structure of production in Russia has undergone qualitative transformation: growth of competitive industrial and agricultural production in ab solute parameters has exceeded falling in noncompetitive sectors of economy. How affairs with competitiveness of the Russian economy are today?
2. ECONOMIC GROWTH AND INTERNAL COMPETITIVENESS
gross national product of Russia has increased for 68 %, but global gross national product ha s increased only for 39 %.
Table no 1. The basic economic parameters of Russia in 1999 -2006.
1999 2000 2001 2002 2003 2004 2005 2006
Gross national product
incomes (% to previous year) 106,4 110,0 105,1 104,7 107,3 107,2 106,4 106,7 Industrial production index
incomes (% to previous year) 111,0 108,7 102,9 103,1 108,9 108,3 104,0 103,9 Investments in a fixed capital
incomes (% to previous year) 105,3 117,4 110,0 102,6 112,5 117,0 110,5 113,5 The foreign trade turnover
incomes (% to previous year) 86,9 130,2 103,8 108,1 126,0 132,4 131,5 127,0 Real money incomes (% to
previous year) 87,7 112,0 108,7 111,1 115,0 110,4 111,1 110,0
International reserve assets, on the end of a period (billion dollars)
12,5 28,0 36,6 47,8 76,9 124,5 182,2 303,7
Considering the last seven years as a whole, it is possible to allocate sharp initial takeoff of parameters of economic development of Russia with the subsequent stabilization of lower level. Economic “jerk” of the Russian economy in 1999-2001 was inquest of so-called regenerative growth (i.e. really there were the capacities, capable to increase physical volume of production at increase of effective demand). The further stable development of economy occurred, as a matter of fact, under the inertial script (curren t trends were prolonged) in conditions of increase of internal and external demand. On the one hand almost double import compression in comparison with a pre -crisis level of 1998 has ensured a place for intensive expansion competitive (first of all, at val ue) domestic production on a home market. On the other hand economic growth on foreign markets based on a favorable global conjuncture since 1999. Let's analyze quality of this growth from an item of competitiveness of national economy.
First of all we shall consider competitiveness of industrial enterprises on an internal market. As a result of devaluation of 1998 when the prices for production of foreign competitors have some times increased, in the most advantageous provision there were the branches of a consumer complex traditionally focused on home markets. The gain of production of consumer goods in 1999 has constituted 8.7 % and has exceeded rates of common industrial growth and a turn -over of retail trade. The contribution of branches of a consumer c omplex to a gain of a commercial production in 1999 has constituted 13.2 %, against 8.4 % in 1998. During two next years influence of branches of a consumer complex on a gain of production in economy was saved at the achieved level. In accordance with improvement of financial circumstances of the enterprises and growth of accruing, price competitiveness of the capital goods began to grow since 1999. As a result volumes of production in an investment complex for a period of 1999 -2002 have increased for third in comparison with a level of 1998.
documentary resources of not food market constituted 45.9 % in IV quarter it was increased up to 51.4 %, and by the end of 2002 - up to 54.8 %. The developed situation provoked slo wing down of growth rates of the manufacturing industry finding in amplifying dependence on dynamics of an investment demand and innovational strategy of development. The out -of-date park of the equipment and "know-how", low labour productivity level were the factors limiting expansion of the competitive offer on the part of the domestic enterprises. In 2002 the customs statistics has recorded increase in volumes of import up to level of 1998. And in 2001 -2006 quarterly growth rates of import exceeded growt h rates of the Russian commodity producers already in some times.
Fortunately, the state of affairs has appeared not absolutely bad: started on the first stage of reforms the mechanism of natural selection made the business. Dynamics of food import restrai ned as a whole strong enough competitive items of the Russian enterprises - a share of import volume of documentary resources of articles of food during 2002 -2006 was stabilized at a level of 34 %. Though, certainly, a line of less competitive sectors of t he Russian industry shows negative dynamics of the competitive provision: the share of the domestic goods in resources of retail trade of not food market, as a result of crisis of textile, sewing, shoe production, has decreased from 51.6 % to 44.3 % for a period 2000-2006.
As a whole, it is obvious, that 1998 has appeared critical for the domestic enterprises (that disposal of the Russian industry of barter which was recently serious problem at the majority of the enterprises of processing sectors is necess ary). Since 2001 many enterprises have believed in stability of normal economic development and have risked passing from policy of minimization of stocks of finish products to maintaining their reasonable surplus peculiar to healthy market economy. In spite of the fact that the competitiveness on the majority of the markets increases, today it is possible to establish non -negative dynamics of the competitive provision of the Russian industrial enterprises on home markets: the growing demand grants a possib ility to find «a place under the sun» to all interested participants of competitive relations. Though, certainly, the Russian enterprises are fixed on growing market segments more slowly then the foreign colleagues.
3. COMPETITIVENESS ON THE GLOBAL MARKET
Meanwhile the situation with competitiveness of domestic manufacturers on foreign markets, at first sight, is essentially different: on a background of “muffled marking time” of domestic process industry the export - focused sector becomes locomotive of economic growth of Russia (table 2), that naturally reputes its high competitiveness.
Table no 2. Dynamics of the Russian export
1999 2000 2001 2002 2003 2004 2005 2006
Export, billion dollars 75,6 105,0 101,9 107,2 135,4 183,2 245,3 304,4
Growth rates of export, %
to previous year 101,6 138,9 97,1 105,2 126,3 135,3 133,9 124,1
Growth rates of gross national product, % to previous year
106,4 110,0 105,1 104,7 107,3 107,2 106,4 106,7
less than 14 % of cumulative import. In total at the expense of mineral products it is provided more than 80 % of a gain of cost volume of export deliveries.
The basic precondition of growth of the Russian export is unprecedented high prices on the world markets of raw material (table 3). The good situation on a foreign mar ket was saved for exporters of nonferrous metals: the level of the world prices for all nonferrous metals has reached a maximum for a 13-years period by 2007. In conditions of growth of global demand the world prices for metal rolling have essentially grow n (for 2006 the rise in prices on a hot sheet has constituted 56 %, on a cold sheet - 20 %, the zinced sheet - 25 %). However the most essential rise in prices has taken place in the petroleum markets. The level of the world petroleum prices, supervised in 2002-2007, is absolute for all period of development of new Russia.
Table no 3. The mid-annual world prices for the basic kinds of the export goods of Russia
2002 2003 2004 2005 2006
Petroleum (Brent), dollars / barrel 25,02 28,83 37,4 54,38 65,15
Natural gas, dollars / 1 one million BТЕ 3,4 5,5 6,0 8,9 12,2
Copper, dollars / ton 1592,9 1785,6 2808,2 3606,0 6851,4
Aluminium, dollars / ton 1350,7 1424,7 1693,2 1871,0 2619,4
Nickel, dollars / ton 6175,1 9580,8 13757 14692 22038
Thus the Russian export grows thanking the price factor: after 2002 growth rates of physical volume of export - focused productions become much more modestly growth rates of their cost volumes.
In conditions of growth of the world prices the share of the fuel and energy goods in the Russian export stably grows and in 2006 constituted 65.2 % (56.8 % in 2004). Moreover, the data (table 4) testify about essential strengthening of export - focused tendencies of a raw orientation in petroleum sector. Export of a crude oil constitut es more than 70 % of total export of petroleum and oil products.
Table no 4. A parity of production and export of power resources in 2000 -2006.
2000 2001 2002 2003 2004 2005 2006
Net export of petroleum, % of production of petroleum
42,9 44,4 47,8 50,6 55,2 53,2 51,3
Net export of petroleum and oil products, % of production of
petroleum
61,9 64,7 67,5 69,2 72,9 73,8 72,8
Current trends are confirmed also by numerous results of applied researches. So, sounded in 2004 on V International conference «Co mpetitiveness and upgrade of the Russian economy» the data allow to judge about rather stable, from times of socialism, tendencies in development of the Russian economy according to which external competitiveness of Russia is maintained basically by petroleum, gas and metals. The majority of finished products (except for the weapon) are still noncompetitive in the global markets. Thus (behind very rare exceptions) if the degree of processing is higher, competitiveness is lower.
4. CONCLUSION
1. In conditions of transition from scheduled to the market pattern of functioning in the Russian economy there were necessary system transformations. Branch changes of development of economy in conditions of the open market allow asserting that the national economic system works in a regime of reproduction of the competitive enterprises. During last period of economic reforms competitive and noncompetitive sectors have come to light in an obvious kind in an industry and in agriculture (in agrarian sector these processes passed with a delay).
2. Competitiveness of the Russian economy at the present stage bases on production of low technological repartitions, is maintained by tactical price factors, and practically does not mention material production conditions that make a similar sort of competitiveness rather unstable in the long-term period. Besides the national economic system movable only by market forces is far from being always in state to generate desirable structural shifts. As a result we notice in Russia the export - raw pattern of economic development which stipulates rapprochement of rates of economic growth not with growth of competitiveness of the Russian processing sectors of economy, but with changes of the world prices for primary goods. Therefore the active state policy on increase of national competitiveness is very necessary.
3.However traditional variants of state interference by means of industrial policy (branch priorities, state investment, scale tax privileges) are of little use in postindustrial economy. In this connection as the basic directions in the field of increase of competitiveness of the Russian economy the state should promote really to strengthening of a competitiveness and development of “enterprise spirit” in country, actively integrate into global economy, introduce effective forms of a support of the arising competitive companie s without dependence from their branch belonging. Only provided that the state policy will be directed on increase of competitiveness of domestic economy, Russia in new century can expect for positive structural changes and long -term economic growth.
BIBLIOGRAPHY:
[1] Arend R. How to maintain economic growth in resources depended economy? (The basic concepts and their application in case of Russia) // Questions of economy. 2006. -№ 7.- P. 24-36.
[2] Belousov A. Evolution of reproduction system of the Russian economy. From crisis to development. - Moscow: MAX Press, 2006.
[3] Entov R. Factors of economic growth of the Russian economy. - Moscow: IETP, 2003. [4] Gaidar E. Anomalies of economic growth. - Moscow, 1997.
[5] Russia: an economic conjuncture: the information analytical digest / Anikeev P., etc.; Centre of an economic conjuncture at Government of the Russian Federat ion. - Moscow, 2006.
PROMOTING RURAL TOUR ISM IN KENYA AND ROM ANIA
Dr. Roselyne N. OKECH
Dept. of Ecotourism, Hotel & Institution Management, Faculty of Science, Maseno University, Kenya Associate Professor Ph.D. Alexandru NEDELEA
Ştefan cel Mare University Suceava alnedelea@yahoo.com Abstract:
This paper identifies the available tourist attraction facilities within the Luanda rural region in Western Kenya and in Romania. This is to address how the locals can participate directly in the entrepreneurship either by providing accommodation and other attractions to either local or international tourists. This focus study in Luanda Division of Vihiga District tries to find out the best way of re-imaging of rural areas features and activities to make them tourist attractive, and to relate rural tourism with social cultural and economic elements of rural areas. The area is not well imaged, commodified and packaged to tap the rural tourism potential of the area. In the final analysis, the identification of character as being significant for place is of critical importance for rural areas and the notion of rurality.
Key words:rural tourism, Kenya, Romania, international tour ism
INTRODUCTION
Rural tourism related activities have been widely regarded as key -tools for rural development, specially in those countries – as Romania and all East European countries – where rural space and production is still a major par t of whole economic structure, trying by this way to revitalize declining areas and ensure them possibilities of achieving a sustainable future. At this purpose, rural tourism must be considered like a complex plurality of multi -faced activities, contributing both to growth of other activities in rural areas and to improvement of life quality for local inhabitants, all this as part of an effective rural development integrated system.
With downturns in rural economies over the last three decade s, it is perhaps understandable that governments have given a great deal of attention to the economic benefits of tourism, particularly for rural areas attemptin g to keep pace and adapt to the vigorous globalized economy. As Telfer (2002) suggested, growin g numbers of city-dwellers are getting away from it all in the countryside. One of the advantages of rural tourism is that it is based on local; initiatives, local management, has local spin-offs, is rooted in local scenery and it taps into local culture. In theory, the emphasis on the local can help to generate regional development. According to Sharpley and Sharpley (1997), rural tourism is increasingly being used for socio -economic regeneration and diversification. While the definition of rural varies in different countries, Sharpley and Sharpley (1997: 20) further describe rural as all areas ‘both land and water, that lie beyond towns and cities which, in national and regional contexts, may be described as major urban centres’. For tourism to be described as rural tourism then it should mirror the characteristics that signify a rural area including small settlements, low population densities, agrarian -based economies and traditional societies. Lane (1994) details the difficulty in attempting to create a d efinition of rural tourism as not all tourism in rural areas is strictly rural. Rural tourism extends beyond farm -based tourism to include:
Special-interest nature holidays and ecotourism, walking, climbing and riding holidays, adventure, sport and health tourism, hunting and angling, educational travel, arts and heritage tourism, and in some areas, ethnic tourism. (Lane, 1994:9)
Tourist Board are working round the clock to develop the Western Kenya tourism circuit in order to make it an international and domestic tourist destination. A greater part of Western Kenya is made up of rural areas, considering this, it means that most of the touristic activities and features that this region can offer are based in the rural areas within Western Kenya.
This paper is focusing on Luanda Division of Vihiga District to find out the best way of re -imaging of rural areas features and activities to make them tourist attractive, and to relate rural tourism with social cultural and economic elements of rural areas. Luanda division is within Vihiga district in Western Province of Kenya and covers a total area of 98.6 sq km. It is bordered by Kisumu district to the South, Siaya district to the North West and Emuhaya division to the East. The total population size is approximately thirteen thousand with a density of approximately 1035 persons per square kilometer. The population comprises a large number of youths be tween ages 10 and 24 years as opposed to the older generation. The total annual rainfall received is 1004mm. The soil drainage is good therefore the instance of water logging is not prevalent.
Statistics have shown that approximately 60% of residents in Lu anda division are living below the poverty line. The ironical part of it is that this area is well endowed with natural resources which have been majorly used for economic activities such as agriculture and trade. This however, has not helped in reducing the poverty levels in this area and hence, another economic activity should be developed especially tourism in order to improve the well being of the area. There should be ways and strategies put in place to assist residents of Luanda tap all benefits accru ed to these natural resources through rural area tourism. In view of the Kenyan tourism policy, the study focused on the following areas:
Rural dwellers’ capacity to support and respond to changes induced by tourism Cultural considerations in planning rura l tourism
Initiatives that encourage the development of any form of tourism in the region
FACTORS PREDICTING RURAL RESIDENTS’ SUPPORT OF TOURISM
An extensive array of research has been conducted on resident attitudes toward tourism. Recent research has been conducted targeting communities worldwide, including those in Europe. While earlier work focused on the large -scale, or macro, side of resident attitudes, more resident research has targeted the micro side of resident attitude research. These recent st udies have targeted specific communities and have explored the various elements and characteristics within those communities that predict resident attitudes about the presence of the tourism industry (McGehee and Andereck, 2004).
Differences in attitudes have also been examined according to degree of tourism development, level of an individual’s involvement in the tourism industry, maturity of destination, type of tourism development, specific to one major event, and as compared to tourists’ perceptions. As a step in trying to explain resident attitudes toward tourism, several studies have investigated the relationship between an individual’s characteristic, such as demographics, personal benefits from tourism, community attachment, and attitudes toward tou rism development. The majority of studies have shown residents who are dependent on the tourism industry or perceive a greater level of economic gain tend to have a more positive perception of tourism economic impact than other residents (Decio and Baloglu 2002; Haralambopoulos and Pizam, 1996; Jurowski, Uysal and Williams 1997; Lankford and Howard 1994; Liu, Sheldon, and Var 1987; McGehee and Andereck 2004; Sirakaya, Teye and Sönmez 2002).
While tourism may provide employment for young persons and women, men of the community may perceive that tourism provides them few viable, respectable and thus acceptable opportunities for economic livelihood. Why is further exploration of gender issue s or research on women and tourism important? A variety of reasons exist including a continuing gender -based salary gap, rapid changes in family life and rural lifestyles that may push women into poverty, domestic problems, or into double -duty with work and family responsibilities. Other problems associated with tourism development, such as crime, drugs, and prostitution, may affect women and men differently. Understanding how tourism development is perceived by all rural residents is important for planners and leaders alike as they struggle to balance quality of life issues with building a strong economy.
RURAL IMAGING
Research on authentic and inauthentic tourist experience and the manner in which images of attraction, culture and destinations are used i n advertising and promotion has been well presented in the tourism literature. Both the nature of the destination image and manner in which it is created are of utmost importance because the appeal of tourist attraction arises largely from the image conjur ed up, partly from direct or related experience and partly from external sources and influence. Mental image are the basis for the evaluation and selection of an individual’s choice of destination. Undoubtedly, there are many sources of the images that peo ple hold for place and product. Although rural areas have long served to attract visitor through their inherent appeal, it is only in recent years that regions have explicitly sought to develop, image and promote themselves more attractive to tourist investor and employees. Rural imaging processes are characterized by some or all of the following:
Development of critical mass of visitor attractions and facilities; The hosting of events and festivals;
Development of rural tourism strategies and policies of o rganization with new or renewed regional tourism organizations and how they relate to development of regional marketing and promotional campaigns; and
The development of leisure and cultural service and project to support the regional marketing and tourism effort.
The principle aims of imaging strategies are to attract tourism expenditure, generate employment in tourism and related industries, foster positive images for potential investor and local inhabitants and provide an environment which will attract a nd retain the interest of professionals who constitutes the core work force in the new services industries. The identification of character as being significant for place promotion is of critical importance for rural areas and notion of rurality. Place are increasingly being packaged around a source of real or imagined cultural traditions and representations often focusing on a particular interpretation of the enterprise history of a place. Tourism may therefore reinforce those aspects of rurality and, henc e, identify those which have become commodified through the process of place marketing.
LUANDA CASE STUDY
RESULTS AND DISCUSSIONS
Most respondents (80%) were between 20 and 50 years old, and no respondents over 70 years. In terms of gender (60% were women and 40% men). The gender distribution of the respondents reflects the socio -cultural structure in which there is a tendency for male domination in the socio-economic and political life of the community but clearly this is not the case here. This is the more reason why gender studies should be done frequently to determine the imbalances in terms of development initiatives in any given area. While 80% of the resp ondents had a very low income, 15% had a moderate level of income and 5% had a relatively high -income level. Moreover, 60% of the respondents stated that their family incomes were just enough to survive while 30% of the respondent considered their family i ncomes to be enough for a fair standard of living. A large majority (95%) had been living in the area since they were children. This may indicate that respondents were generally long time members of the local community.
The strong sense of belonging to Lu anda division among respondents and the answers given to place of birth seem to support the above statement. A very small percentage of the respondents (0.5%) were illiterate. Some, 55% had a primary education, and only 8% had a university education. Clearly, most respondents were not well educated in a formal sense, which could limit community participation in tourism developments. From the interviews and participatory exercises it was clearly noted that they were 3 basic attractions identified namely; Bun yore (Emabungo hills) Eswalwa hill and Luanda market. Bunyore (Emabungo) hills comprise of great boulder rocks that makes it look scenic and attractive. The hill is also a source of many streams and small rivers and people live and even farm here. Luanda market is strategically located along the busy Kisumu -Busia highway. The people who normally visit the area are from Kisumu and Siaya districts. Groceries range from local traditional food items to manufactured foodstuffs. Rural tourism demand is accessed through checking on the number of tourist facilities that are available in the area (Ogola, 2005). From the facilities around there are a total of 37 bed spaces available mostly visited by stranded travelers thus showing that the area need to be marketed m ore.
According to the district development plan (2002 -2008) there are six hotels in Vihiga district out of which only four hotels are marked as the tourist class hotels and none of these are found in Luanda division indicating low demand of tourism. The a rea has businesses which are wholesale (18), catering (25) garage (1), petty business (281) and hard labour business (40). The Luanda area lacks travel and tour services as there is no agency to coordinate the tourist activities in the area which is another indicator that tourism is on the lower side of economic development. The mission and vision of the sector of rural development, the major focus is put on the promotion of food security, agro-industrial development, trade, water supply, rural employment a nd sustainable utilization of the natural resources. This clearly indicates that most rural development activities are only linked to agriculture development. In Kenya, tourism has not been incorporated in the development agenda for rural areas. It is only seen as a way of conserving forests and planners have forgotten to incorporate it as multiplier effect of agricultural trade and industry that are found in these areas. The only way of reimaging the Luanda division rural area to be very competitive tourism destination is by incorporating agriculture and a forestation to change the image of the attraction. Agro-forestry farming needs to be incorporated to bring out the aspect of rurality.
RURAL TOURISM IN ROMANIA
