By TomᚠHes

The capacity of a culture to expand, to imprint its own philosophy on a geographical area, exporting its own features and prospering, is mostly developed by businesspeople or those who follow elementary material interests. In today's interwoven globalized world, where the welfare of a society rests on its ability to expand internationally, businesspeople represent a class that is responsible for more than the growth of commercial activity in their companies.

As a Czech banker in charge of Czech and Slovak enterprises in Romania, I sometimes feel as if our entrepreneurs unfairly forgot this market. I then ask myself just where the Czech business DNA for international proactivity would rank in comparison to those of other nations. I haven't read any scientific studies on this, but I suspect that business complacency is somehow in our genes.

I am not surprised by the high level of developed countries like the Netherlands or Austria, which have enough investment means to take risks. But when I follow the successful invasion of Middle Eastern entrepreneurs from Lebanon, Syria, Turkey and Israel on the Romanian market and compare that with the activity of the Czech sector, which traditionally has a good reputation in the region, I ask: Where are we? Are prejudices or indolence to blame?

Whatever the answer, Czech industry is losing a pole position, which will be difficult, if not impossible, to reconquer. Our hardheaded entrepreneurs are indoctrinated with a myth: Romania is a cursed country driven by corruption and remnants of Nicolae Ceausescu's Stalinism. And I must say they are mistaken.

I agree that Romania is a difficult country, with a collective psychology troubled by the past and hardened by difficult material conditions. Nevertheless, the cancer of corruption is no more widespread than in other countries in the Balkans, and — who knows? — maybe even less of a problem than in our homeland. You certainly do not read in the news about killings and kidnappings of businessmen in Romania, as in our sweet home.

At night, walking on Piata Unirii in the center of Bucharest, I feel calmer and safer than on Wenceslas Square. The range of language skills and communication capabilities of young Romanians is surprisingly impressive, and certainly higher than in the Czech Republic. Hunger for change and for improvement is present in the air, almost palpable. Entry into the European Union nears, and privatization tenders are organized with greater care than before, as anti-corruption efforts are systematic and omnipresent.

There are some success stories, of course. Aside from the case of František Příplata, accused of the murder of a Romanian union leader, it is possible to assert that most Czech entrepreneurs who have had the courage to enter this market have no regrets. ČEZ bought Electrica Oltenia for 151 million euros ($191.8 million/4.3 billion Kč) and recently expressed interest in other power plants. Last October Zentiva bought local pharmaceuticals producer Sicomed for $102 million and plans to introduce 20 new brands on the market in the next three years, competing for a 25 percent market share.

Czech-Swiss company Hobas, which produces glass fibers, acquired a production facility for $5 million and is further expanding. Used-car dealer AAA Auto opened its first lot in September 2005, also offering financing and insurance on cars it sells. In 2005, around 2,500 vehicles were sold and three more branches are expected to open this year. Construction company PSG entered the market in May 2005, drawn by the construction boom expected to arrive after EU entry, and is already working on a project worth 5 million euros.

Czech furniture producer Techo is supplying the best office buildings in Bucharest, including the chair I sit in as I write. Czech vitamin producer Wallmark recorded turnover of 9 million euros in 2005. Hamé Babice, which acquired the Romconserv factory near Caracal city two years ago, transformed a small importing branch office into an autonomous enterprise producing meat products. Networks of the fashion companies Kenvelo and Time Out have successfully expanded and conquered commercial areas in the centers of bigger Romanian towns.

What sounds at first like a celebration for Czech capital is in reality a testimony to the stupor, indolence and lethargy of Czech businessmen. Why? Because this is all. Indisputably, the list of investments here should be many times longer. Comparing the visibility of Czechs to that of Hungarian, Greek and Turkish corporations further proves the Czech torpidity.

Nevertheless, interest is rising. This summer, Czech President Václav Klaus came for a state visit, followed by a suite of numerous CEOs and businessmen representing a very diverse sample of small and big industrial enterprises. Some of them are said to have concluded contracts.

Flat tax in Romania is 16 percent. Import customs tariffs are high — from 20 to 50 percent — but these, with EU entry nearing, will be removed step by step. The share of Romania in the Czech Republic's total foreign trade is at present 0.57 percent of total turnover; Romania thus ranks 25th on the Czech foreign trade hit parade.

The biggest investors are Austrians, followed by the Dutch, French, Germans and Americans. The Czech and Slovak communities in Romania are not very large, but keep together warmly and act as if the division of Czechoslovakia never took place.

It would seem the Czech business community is equally stuck in a time warp.