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Among private enterprises, the agricultural sub-sector is the least profitable with a ROE of 8 percent in 1997. Private enterprises in all sub-sectors, except trade, also had operating and production expenses above the value of sales. Thus, in the aggregate their gross cash from operations was negative. The difference was that private enterprises had more miscellaneous revenue and lower financing costs relative to assets. This situation allowed them to serve their existing debts without additional injections of external funding.

These new entrepreneurs, however, are elderly and uneducated landowners who have small-scale operations and lack agriculture equipment. They engage mainly in subsistence farming disconnected from markets. To date, one in five farmers does not possess legal title to their land due to delays in the implementation of land titling. Moreover, the Government banned sales of restituted land until August 1998 when the restrictions were removed. These two events have had serious consequences for the development of land markets needed to consolidate private farms and provide farmers with incentives to invest.

Three main trends have shaped rural Romania and its villages over the past 30 years (Chirca and Tesliuc, 1999). First, population decreased by almost 20 percent due to a combination of migration, low birth rate, and high mortality. Those leaving the villages for towns were basically young high-school graduates. The out-migration of rural youth caused the aging of the rural population and contributed to increasing the educational differences between rural and urban areas. The beginning of the transition found an aged rural population occupied mostly in the agriculture sector, which was totally dominated by the State and collectivization B.

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Complicated Business: Chicanos, Museums, and Corporate Sponsors (Phd Thesis) by Joseph Jason Gonzales


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