A Closer look at Bucharest

I woke up thinking that the entire country would be on strike. However, to my surprise the trains, buses and trams were running. I took this opportunity to see more of Bucharest. Many of the landmarks in the city, seem to be the Romanian take on edifices that are landmarks in other cities. I stopped by one of Bucharest’s icons, the Triumphal Arc, and then moved on to the Stalinist “Palace of the Free Press” which resembles a larger, but squattier version of the Palac Kultury i Nauki, in Warsaw. This international flavor persists in many of the names in the city. there is a Charles de Gaulle square, a Latin American Square, and even a Beijing Boulevard. After this I walked through one of the city’s main parks. In the afternoon, I went to southern Bucharest. I started by taking a more in depth look at the Piata Unirii, and the Fountains which Ceausescu built in it. All of the dictator's other architectural blunders aside, I have to say that he did well here. This is officially my favorite place in Bucharest . I walked around the Palace of Parliament, the 2nd largest building in the world. Then, a stroll along Bucharest’s river, which Ceausescu completely concreted in, including the river's bed. I then walked through the old town, which remains relatively untouched by the former dictators’ predilection for tearing down the historic buildings in favor in cinder-block edifices. I visited about five churches. My tour ended with a brisk walk to the subway as it started to rain.

On The Black Sea

At the last moment of Friday, I was informed that next Monday would be a holiday at the Embassy. It also would most likely be one of the days on which the Romanian Government workers all around the country would go on strike to protest the pension and salary cuts imposed by the government. Given this extra time, I decided to make good on my ambitions to go see other parts of Romania and the surrounding area. For this weekend I booked a train ticket and an overnight at a hotel in Constanta, Romania’s main coastal city. After a sightseeing excursion, and an enjoyable evening with students from Texas A & M University, I set out the next morning for the Black Sea.
It took four hours on a train to reach Constanta. Upon arrival I wondered if I was in the right place, as the platform consisted of little more than a few weeds. However, I quickly found my way to the city streets. At that point I was faced with the question of how to find my hotel. The tour book gave some limited information on how to take the bus. But local sources on how to do so, such as maps were practically non-existent (See previous post: “just knowing”). It took a full hour but I finally found my hotel, which was located about halfway between central Constanta, and Mamia, the resort town to the north. I also learned a great deal about Constanta’s bus system in the process. I left by belongings in the hotel and set off to explore the city center.
After another, much more civilized bus ride. I arrived, and having not eaten since breakfast, looked for a place to eat. I found a cheap, but good restraint in the old town. There are a few interesting things in central Constanta. First, the city was originally inhabited by the Romans, and a great deal of roman ruins survive to this day. These include a rather large mosaic floor, and the remains of the baths, which are apparently now mostly used by mother dogs nursing their puppies. Getting to see these ruins can be a bit problematic, as in another hold over from the communist days doing so requires arguing with babuszka at to gain admittance at the entrance. The Famous museum of Archeology is evident on the main square. The old town is also the Seat of Islam in Romania. the Seat of the Romanian Matufi, or Muslim spiritual head rests in a rather large Mosque on the southern end of the main square, which competes for attention with the orthodox cathedral right next to it.
There was a wedding going on at the orthodox cathedral, and I ducked into a dark corner to watch. It was a fascinating experience. After that I spent some time walking along the black sea coast, and viewing some other attractions. Upon reaching the beach I decided to climb out on a jetty for an unobstructed view of the Black Sea. The view was amazing. Unfortunately, my camera fell into the sea while I was climbing on the rocks. At least I still have my camera phone. After enjoying an ice cream with a view, I headed back to the hotel for a good night sleep.
The next day, I went sightseeing around a lake north of my hotel. It was Sunday so there were church services in progress. I attended an orthodox service in a church by the lake (above). The service was very uplifting, constantly accompanied by the chants and hymns of a live choir, some aspects of it appeared to be taken from the western tradition, while other aspects and hymns seemed practically middle-eastern. The church itself is not native to the region of Northern Dobrega, but was transported in from Martures in the extreme north of the Country I then continued up the lake, and crossed over into Mamia. After exploring the boardwalk for a time I was time to head back. I checked out of my hotel and prepared for the 4 hour train ride back to Bucharest. Upon arrival home I was tired but glad I went.

Presentation

It has been a while since I’ve had a chance to get to a computer. So here are some updates. On Friday morning, the Commercial Service gave a lecture to graduate students from Texas A&M University. Many of the speakers did not actually prepare a separate presentation but instead told them some of the statistics which they dole out when necessary. Here are some of the more interesting ones:
Romania currently has the smallest average size of farm plots in Europe. This is because most rural Romanians (40% of the population) still engage in subsistance farming.
In order to bring agricultural mechanization up to the standards of the rest of Europe , Romania would have to buy 33,000 tractors each year for the next ten years.
Romania has the largest number of tax collectors in the EU… but the lowest amount of collected taxes. (God knows where this money is going).
When the Iron Curtain fell, one of the former Communist leaders seized power, claiming to be a convert to capitalism. For this reaction few real reforms were instituted until the late 90’s. this explains why you can see more vestiges of the old system here than you can in many former eastern bloc countries.
A company that was hired to build a system of super highways in the country had only built 40 feet after a decade. The Romanian government has trouble remembering to pay them due to the absence any capability for multi-year budgeting in the government.
Romania is currently on a 16% flat tax system. They could not move to a graduated schedule to help resolve the budget problems if they wanted to because they do not have the fiscal infrastructure. (This leads me to ask the question: Why would they want to?).

A Night At The Opera

Last weekend I went to the opera for the 1st time. A few things about the experience are impressive. First of all, the price. The most expensive seat in the house is the equivalent of 20.00 USD; this makes a front and center seat at the opera, cheaper than an average trip to the grocery store. The low price does not adversely affect the quality of the performance. The cast is quite large, and accompanied by a full orchestra. The leads were quite talented; with the major exception of the singer portraying the role of the villain. I saw Wagner’s “The Flying Dutchman” and thoroughly enjoyed it . The opera house is somewhat plain on the outside. However the inside is much more ornate, though not quite up to the level of some other European opera houses, such as the one in Budapest. The opera house was about two thirds full for the Sunday night performance. I was feeling cheap , and sat in the center of the balcony (only 10 USD) which was a perfectly good seat. While there, I noticed groups of younger children were there of their own accord. I love Europe.

Government, Falling Wages and The Black Market

I got some more information recently about the cost of living here. Out of a 700 Lei wage per month, about 400 goes to housing and utilities. This leaves only 300 Lei for food and other necessities. Ion confirmed that many deal with this problem by eating large amounts of bread. “Romanians need very little”, he told me. Despite having to cut this already low wage rate, the government appears to be finding new ways to spend like a drunken sailor. Recently, I sat in on a meeting with a Romanian government official, who said that the government had just authorized funds, for electronic information, and payment system for all citizens, as well as a nationwide electronic voting system. Even though money is tight, the restaurants around town remain full. Ion seems to think that this has something to do with the black market. Indeed, it seems to be a rather powerful institution here. It is possible to see brand new empty office buildings with nice cars parked out front. Apparently these “companies” are simply fronts for black market activity. Mysteriously, Government officials seem to look the other way as these companies have healthy profit margins, but no (official) sales, and pay no (official) taxes. Other than that, all is rather quiet here, day to day at work. Because the embassy celebrates both American and Romanian holidays the upcoming weekend is apparently another long one.

Just Knowing

All countries have their various cultural facets. Romania, of course, is no exception. Here you are often expected to simply ‘know’ certain pieces of information. As a result of this, people sometimes don’t always give you all the facts. Signs are often vague, wrong, or simply non-existent. For a newcomer this can make doing simple things, like taking the subway daunting. Two of the lines often share the same track here. While there are TV screens that tell you which line is arriving next, they lag just enough to be exactly wrong. It took me a few tries; getting on the wrong line, before I realized that the cars from the different line looked different. Taking the train can be even more confusing. I bought a ticket and then noticed on the departure board that my train was not going to, or stopping at Targoviste. When I asked about whether I had the correct ticket, the clerk looked at me as if I was crazy and told me that was in fact the correct train. Apparently, because I was going there I was just expected to know. Things like this happen often. When asking directions, responses are often vague and filled with short hand. This phenomenon also seems to carry over into the office where direction for assignments can sometimes be vague on the specifics. That being said, Romania is a country has spent years being oppressed in the eastern bloc, and as a result of this situation it makes sense that Romanian culture be more geared towards explaining things to other Romanians who are from the same city and work in the same office. They are in the process of gaining experience when it comes to making logistics easier for the increasing amount of foreigners on the streets of their cities.

Street Dogs

One of the loudest sounds if you open your windows in Bucharest is the sound of stray dogs barking. Seriously, it sounds like a kennel. Apparently there are over 100,000 stray dogs in the capital. Often times there are as many stray dogs around as there are people. The amount of strays in the city is yet another byproduct of the communist city center restoration, in which many people lost their yard and were forced to turn their dogs out into the street. While to many Romanians they are a nuisance, a large amount of them also consider them community dogs and feed them. One person told me that the dogs have learned to work this system and have multiple people that feed them every day. This explains why many of them appear (too) well fed. Strays do not seem to be the exclusive property of Bucharest, while less in number Targoviste also has more than its share. When I was at the train station, there were about ten dogs wandering around the platform alone.

Trip To Targoviste

This weekend is my first weekend here, and it is a long one. Monday is the Eastern Orthodox All Saints day and is a national holiday here. Before coming here I had thought that I would use long weekends here to go further afield. Because I had just finished a week of traveling, and am still getting oriented here, I did not particularly feel like setting out on a multi-day excursion. So, I decided to compromise and take a day trip to a town about 50 miles north-East of Bucharest called Targoviste. While this town is not one of the main tourist attractions of the country, it has two main claims to fame. First, it was the medieval capital of Romania. The ruins of the ancient royal court are situated near the center of town. As with many tourist attractions in Eastern Europe, parts of it are currently under restoration, including the Princely Church. There are also remnants of an ancient palace. The sunset tower, originally commissioned by one of the more famous Romanian Kings, Vlad Tepes, is still standing. I was able to climb to the top of it for a good view of the surrounding area. You can tell it is a medieval building because the doorways are somewhat small and I hit my head rather hard on one of them on the way down. There are also a few churches in the town. Targoviste is also the town where the Ceaucescus were captured, held and executed in 1989. It is illegal to take pictures of the military barracks where this happened, but they are right next to the train station. After lunch, it was time to head back to the train station. I stayed in Targoviste for about four hours, and then headed back to Bucharest, where I took a quick look at the Piata Victorii. I got home feeling exhausted and am taking it easy today, before I go to see Wagner’s The Flying Dutchman at the National Opera.

Outcry as Financial Situation Worsens

The protest a few days ago was not the end of the financial crisis here. The good news is that the government was able to get another loan from the IMF. The bad news is that the terms of the agreement required the government to make drastic budget cuts. Yesterday the government announced that drastic cuts in all of its expenditures. It also continues to hold firm on the wage and pension cuts. While these may seem like necessary austerity measures, the workers have good reason to protest. In contrast with countries like Grease, where the government salary is around 2,500 Euro per month, Romanian workers currently make only 700 Lei. This is barely enough to cover the cost of living in Romania-- if that. Things are made more complicated by the retirement pensions. “ It’s not right.” said Ion, one of the Embassy drivers. He told me that during Communist times, workers gave 80% of their salaries to the pension plan, and thus were not able to save on their own. The cost of living problem will no doubt be exacerbated by inflation. The government has started running the printing presses at full capacity to stay solvent in the short term. Cuts in other areas of the government have various ministers up in arms. Protesting in the country continued yesterday. The news today reads that there is general outcry.

Sticker Shock at The Grocery Store

One of the advantages available to European countries is that they are able to maintain a lower price level. This does not appear to be the case in Romania. Prices at the grocery stores are surprisingly high for most items. While basic staples such Bread, potatoes, and wine are cheaply available. Everything else costs more. 100 grams of cheese cost 15 Lei. The price of meat is even higher. For small slices of ham cost around 15 Lei, making it unaffordable to most Romanians. Any imported foodstuffs are considered to be luxury items. Some of what is cheap is determined by the local culture. For example, Water is often slightly more expensive that wine and beer. When I asked about this the response I got was, “Of course, wine and beer are considered to be a staple here.” To many Romanians only hard liquor counts as alcoholic, which the government does regulate and tax.

Getting Closer to The Long Weekend.

Yesterday, I went to the kick-off reception for Optaros, a company expanding its business in Romania. My job there was essentially to check everyone in at the door. This was actually harder than it sounded. Because of a last minute guest list change, we didn’t have half the name badges. After, most of guest arrived I was allowed to go and mingle. Many of the people at the reception were close to my age, and they seemed to take great pleasure in telling me where to go in Romania, and seemed to think that only 6-weeks in the country were a very short time. The conversation ranged from how we learned foreign languages to how to deal with stray dogs. They I had an enjoyable time.My supervisor is out of the office for a few weeks, so I get to use her desk and fill in for her. Because Monday is a national holiday, a long weekend is coming. Many of the people in the office decided to start the weekend early this Friday. Today is kind of relaxing; I just hope no one calls because I am afraid of the complicated phone system.

An Afternoon in Bucharest

After putting in a full work day I still had some energy and finally free of pressing matters, decided to look around a bit. I left my apartment, and and crossed Stefan Cel Mare, the main corridor of the area. I headed toward the Circus, which is nearby. Just beyond it I found myself in one of the parks, for which the city is famous. The park was full of people. They appear to be the center of social life more so than outdoor cafes. It was an enjoyable place to spend the afternoon apparently as a result of the communist “restoration” of the center city, the some of streets are relatively car friendly, but gave little thought to parking. Now that they country is becoming more prosperous, many Romanians appear to own some type of private transportation. As a result, parking is at a premium. In many places, where the where the sidewalk is wide enough, the parked cars can reach three deep. Pedestrians and motorists appear to share the roads and sidewalks and do a good job of making it work.

Financial Situation Leads to Tensions in Bucharest

Before arriving here I was following the financial situation in Greece. Romania is apparently facing a similar budget crisis. The government may have to cut its workers salaries, To balance the budget. Today, the Placa Victorii, Bucharest’s main square, was packed with protesters for the union of government workers. They were protesting a government proposal to cut the salaries of current employees by 20% and retirement pensions by 15%. This is not the first strike of this type. Strikes for these reasons have apparently been common lately. While the demonstration today remained peaceful, my co-workers said that many in the recent past have turned violent. By the end of the day the graphics on the television in the office read “ the government takes responsibility”, as it appeared to back off on its plans to cut the budget. This however does not solve it’s problems, apparently the country has maxed out its credit with international organizations such as the IMF, and now has little recourse but to simply print money, thus spurring inflation, in order to pay its debts. Still this puts the country in a better position that its Euro-using counterparts Greece, Spain, and Portugal, which do not have the authority to increase the supply of the official EU currency. While Romania’s financial situation may look bleak, it is fortunate that they are not on the Euro.

Learning Curve

As is often true with a new job, it takes some time to learn the ropes. Today I spent most of the time preparing for a reception, celebrating the laugh of a new company’s business in Romania, my main task was to make the guest list. This took the better part of the day, due to the length of the guest list, and amount on information on each visitor. After I finally finished, I was told that I had put to much information into the list. I also needed a lot of help a lot of help making the name tags. Asking so many questions is a bit of a departure for me, as I am used to being more independent. However, the staff at the embassy has been very understanding. They never hesitate to help me out or explain an obscure computer program, or procedure. In fact they are very light spirited about it. As my supervisor, Mrs. Florea about interns and their questions: “it’s normal, they learn their way around just about when their time here is up.” I can see how this is true,and , I learned a few new tricks of the trade today.They will include making sure that everything runs smoothly at the event tomorrow evening. An interesting side note, I met an official for Turkey today as well.

First Day and A Fresh Start

I arrived at the Commercial Service feeling rather nervous. As I am going to be working here for six weeks I wanted to make a good impression, and circumstances dictated that I had to report in two day old informal wear, asking about where I could find a replacement cord to charge my computer. The staff couldn’t have been more understanding. In no time at all they had found me a replacement cord. Two members of the staff, my supervisor, Monica Florea, and Monica Eremia, took great pleasure in showing me around and helping me get my bearings on my first day at CS Bucharest. They also quickly put me to work, sending trade-fair invitations to Romanian companies in the information technologies industry. While I still have more of the learning curve to go, I finished my first work day feeling accomplished. Coming back to the apartment I found that the lock had been repaired and that the bags were delivered. Now more situated, I am in my iron curtain era apartment, which I like better that the apartment I had last year in college. The sound of rain and barking street dogs is filtering in though the window. I am exhausted and ready to make a fresh start in the morning. Above is the view of Central Bucharest from my 8th floor studio.

Arrival in The City

On the way to my apartment I had a chance to talk with my driver, and the man that rented me the studio. He grew up near the U.S. Embassy during the end of the Chauchescu regime. from his reflections of growing up in 1980’s Romania. I was amazed at how much the country has recovered. in only two decades. The country has gone from having unreliable utilities, and only two hours of state-run television per day, becoming an EU member with a growing economy in only two decades. I was also struck by how green the city is, where almost European city centers are composed of densely packed buildings, the center of Bucharest is composed of freestanding construction, ranging in stile from traditional Eastern Orthodox, to Socialist Realist, in a seemingly random order. Just from seeing the city pass by through the car window I wanted to see more.
Later that night, I realized the front door to my apartment building had a jammed lock, and that it was impossible to get in unless someone was there and decided to open the door for you. I also was treated to another negative surprise. Half of my new laptop charger was missing when it took it out of the box. Instead of getting to explore a bit, I appeared to have much more pressing matters. So, After having a meal of traditional Romanian polenta I called it a day

Getting There is Half The Fun

It took me three days to arrive in Bucharest, but I’m not complaining. The travel went off without a hitch and I met many interesting people My journey began with a late night flight to Chicago, where I spent the night. The next morning, I met with one of my friends, who is from southeastern Europe, and whose family has spent some time in Romania. She took me to her house for a breakfast of neleśników and a crash course on what to expect. This advice has already proven valuable in the short time I have been here. Thanks to Klaudia and her family for helping me out.
After this it was back to the airport, for the Polish airlines flight to Warsaw. Despite an hour long delay the flight itself went rather smoothly. I sat next to a gentleman who teaches people how to sell insurance overseas. Compared notes about the cultural differences between many of the Eastern European nations and how it impacts upon the development of the sales approach. He also asked me to help him with the pronunciation of Polish cities.
Due to the late arrival in Warsaw, The plane to Bucharest almost left without me. Me, and the Russian and Romanian travelers I met literately had to run to make the final boarding calls for out connecting flights. After a quiet flight to Bucharest, Murphy’s law seemed to take full hold of my Journey. I arrived in Bucharest to find that while I had barely made my connection, my bags had not. Actually, I can’t say I wasn’t completely surprised. My bags have been lost twice before when I have flown to Poland. Never the less, this obviously did complicate matters. Having made arrangements for the return of my lost luggage I pushed on to my apartment in the city center.

Here's The Plan.

Now that I have a bit more time, I am beginning to gear up for over three months In Eastern Europe. The basic plan looks something like this. This Saturday, I leave my home in the Los Angeles area for Bucharest, Romania. There, I will be interning with the U.S. Commercial Service for a roughly 6-week period. During this time I will pay special attention to the inner-workings of trade and international partnering in this region, especially as they relate to infrastructure development. I also hope to make it to Moldova and Bulgaria while in the area. From there, I will spend a few days touring Brussels, Belgium, the capital of the EU. I am also very interested in doing business in the Polish market, so I will spend the latter part of the summer improving my Polish skills at an intensive language program at Jagiellonian University, in Krakow.
This is not my first experience with the culture of international Business. In 2008 I worked as the English Desk Business Reporter, and intern in Maldives (http://tvmintern.blogspot.com/). Through my daily reports, I was able to witness not only the advantageous aspects of how the system functions, but also of how barriers to trade and currency fluctuations can have adverse effects. This summer I will be taking the next step by actually participating in the process as it happens, and by cultivating the skills I'll need to succeed in the Eastern European business environment. The adventure begins in 5 days.

Off to Bucharest

I am heading to Bucharest Romania to intern with the US Commercial Service at the US Embassy. But first I have to take my final exams at USC. Stay tuned for more. The adventure begins May 15.