in limba Romana Romania is a country of extraordinary beauty, rich in natural resources, with a well educated, talented population. It would be a wealthy country too, if its people had the chance to compete fairly in a free market system. Four and a half decades of state socialism stifled talents and crippled initiative. Yet post communist governments have not enacted the reforms which are so essential for prosperity, preferring instead to protect their own interests and prevent competition. Sometimes, they have justified their inaction by claiming they want to safeguard living standards. But the quality of life for the majority of Romanian citizens is very low, with little protection for the most vulnerable members of society. Street children, old people who cannot pay their winter heating bills, and hospitals unable to afford medicines make a mockery of politicians’ claims to be interested in social welfare. Worst of all, this complete lack of real reform has resulted in Romania falling very much behind its former communist-bloc partners, the majority of which will become full EU members on May 1, 2004. We believe that prosperity comes when the government interferes less in citizens’ lives. Most enterprises are run best by the private sector, because they have to compete, instead of relying on state hand-outs. They cannot afford to be corrupt, because they will lose money. They have to provide quality service to their customers because they know that in a free society people can choose to take their business elsewhere. Far too much of the Romanian economy is still controlled by the government. This has been a disaster. For instance, the state owned Bancorex made loans to the government’s political cronies which were never repaid. Millions of Romanian tax payers indirectly suffered when it collapsed. There are still many unfair subsidies to loss-making state companies, keeping taxes high, thereby stifling real economic growth and perpetuating inefficiency. We believe that prosperity comes when taxes are low, so citizens have greater choice over how their money is spent. As experience in developed countries has shown, low taxes are a win-win situation, because the state in fact ends up collecting more money when the economy is stronger and there is less tax evasion. The well known Laffer curve, named after the economist who devised it, clearly demonstrates that if the government puts taxes up too much, it ends up collecting less, because more people find legal or illegal ways to avoid paying. Yet Romanian taxes are among the highest in the region, while salaries are among the lowest. What the government should do is to provide an impartial legal system, which punishes corruption and upholds fair competition in the free market economy. Romanian justice is far from unbiased. Too many have escaped justice through their connections, and many major scandals have never been properly investigated. At the same time, access to the judiciary for the ordinary citizen is difficult and expensive. The government should also act as a genuine voice for Romanian citizens in the wider world, promoting free trade and equal opportunities for all in the global economy. It should aim to maximize the benefits of membership of the EU Single Market by arguing against protectionism, which does not serve the interests of Romanian citizens. “Transition periods” before full application of Single Market principles should be resisted. Romanians should be free to seek work in other EU member states on the same terms as others, and should also have opportunities to earn money in non-EU countries too, on the basis of free market economics. Why should an employer in London be forced by the state to hire a British worker rather than a Romanian, when the Romanian is best for the job? Place of birth is immaterial to professional competence. We also believe that a free media is essential part of a prosperous, democratic society, holding the leadership accountable before the people. Although there is much fine journalism in Romania, there is still too much government interference. Lack of competition, particularly in the broadcast media has allowed cosy arrangements involving favourable reporting of politicians’ activities in exchange for financial concessions. We would like to see a quality mass media, offering choice to the public and acting as a watchdog on the political class. The Romania Think Tank aims to promote this vision through regular publications, both printed and on line, and by encouraging a wide public debate on the issues we care about. We will make contact with sympathetic groups and individuals in business, politics, the media, academia and culture both in Romania and abroad. We will organize conferences involving both Romanian and foreign participants, and work closely with similar institutions worldwide, especially in the United States, the EU and other post communist countries. Romanians have suffered forty five years of brutal communist rule, followed by fourteen years of disappointment and wasted opportunities. This cannot go on. Concerned citizens of all political persuasions should work together to build the future Romania deserves, a future of economic prosperity, and government genuinely accountable to the citizen.