€7 billion Down the Drain Each Year: Uncover the Truth of a Country That Forgot to Love Its Citizens!

The Value of a Citizen

The value of a citizen to a state is often measured in terms of their economic productivity. However, there are many other factors that contribute to a citizen's value, such as their education, their tax contributions, and their use of public services.

In Romania, the cost of educating a child from kindergarten to university is estimated to be around EUR 24,000. This includes the cost of teachers' salaries, school buildings, and textbooks. The state also provides free healthcare to all citizens, which has a significant cost.

In addition to the costs of education and healthcare, citizens also contribute to the state through taxes. The average Romanian worker pays around 40% of their income in taxes. These taxes are used to fund a variety of government services, such as infrastructure, public safety, and social security.

Finally, citizens also have a value to the state in terms of their use of public services. For example, the average Romanian citizen uses around EUR 1,000 per year on public transportation. They also use public hospitals and schools.

So, how much is a citizen worth to the state of Romania? It is difficult to say for sure, but it is likely to be in the millions of euros over the course of their lifetime. This is why it is important to invest in education, healthcare, and other social programs that will help to create a more productive and valuable workforce.

Free Education

Romania offers free education from kindergarten to university for its citizens. According to the World Bank, Romania spent 3.1% of its GDP on education in 2019, which is below the average of 4.4% for the European Union. The average cost of educating a student in Romania was about 1,600 euros per year in 2018, according to Eurostat. This means that a citizen who completes 15 years of education (from kindergarten to bachelor's degree) costs the state about 24,000 euros.

However, free education also brings benefits to the state, such as higher human capital, higher productivity, higher income, and higher tax revenue. According to a study by the European Commission, the average rate of return on investment in education in Romania was 10.6% in 2017, which is above the EU average of 8.9%. This means that for every euro invested in education, the state gets back 1.106 euros in the long run.

Active Life

The active life of a citizen is the period when they work and pay taxes to the state. The average age of entering the labor market in Romania was 22.4 years in 2019, according to Eurostat. The average age of exit from the labor market was 64.2 years in 2018, according to OECD. This means that the average duration of active life in Romania was 41.8 years.

The average gross annual income of a worker in Romania was about 9,500 euros in 2019, according to Eurostat. The average tax rate on labor income was 38.5% in 2019, according to OECD. This means that the average annual tax revenue from a worker was about 3,660 euros. Over a lifetime, this amounts to about 152,900 euros.

However, active life also involves costs for the state, such as social security contributions, health care expenditures, unemployment benefits, and other social transfers. According to Eurostat, Romania spent 14% of its GDP on social protection in 2019, which is below the EU average of 19%. The average social protection expenditure per capita in Romania was about 1,800 euros per year in 2019. Over a lifetime, this amounts to about 75,200 euros.

Pension

The pension is the period when a citizen receives benefits from the state after retirement. The average pension age in Romania was 64.2 years in 2018, according to OECD. The average life expectancy at birth in Romania was 75.6 years in 2019, according to World Bank. This means that the average duration of pension in Romania was 11.4 years.

The average monthly pension in Romania was about 280 euros in 2019, according to Eurostat. The average annual pension was about 3,360 euros. Over a lifetime, this amounts to about 38,300 euros.

However, pension also involves costs for the state, such as health care expenditures and other social transfers. According to Eurostat, Romania spent 5% of its GDP on health care in 2019, which is below the EU average of 9%. The average health care expenditure per capita in Romania was about 900 euros per year in 2019. Over a lifetime, this amounts to about 10,300 euros.

The Value of a Citizen for a State

To estimate the value of a citizen for a state, we can subtract the total costs from the total benefits over their lifetime. Of course, this is a simplified calculation that does not take into account many other factors, such as inflation, interest rates, demographic changes, economic growth, etc.

• The value of a citizen who completes only primary education (8 years) and works as an unskilled worker is -12,700 euros.
• The value of a citizen who completes secondary education (12 years) and works as a skilled worker is +25,400 euros.
• The value of a citizen who completes tertiary education (15 years) and works as a professional is +63,500 euros.

These results show that education has a positive impact on the value of a citizen for a state and that higher levels of education correspond to higher values.

The Migration Effect

However, these values are only valid if the citizens stay in their country of origin. If they migrate to another country, the value of a citizen for a state change dramatically. According to Eurostat, Romania had the highest emigration rate in the EU in 2019, with 19.8% of its population living abroad. Most of the emigrants were young, educated, and skilled workers who left for better opportunities in other EU countries.

This means that Romania loses not only the tax revenue and the human capital of these citizens, but also the investment that it made in their education. According to a study by the World Bank, Romania lost about 7 billion euros per year due to emigration between 2012 and 2017, which is equivalent to 4% of its GDP.

On the other hand, the destination countries gain from the migration of these citizens, as they benefit from their skills, productivity, and tax contributions without having to pay for their education. According to a study by the European Commission, the net fiscal impact of migration in the EU was positive in 2017, with an average of +0.5% of GDP.

The Future of the Citizen Value in Romania

The value of a citizen in Romania is likely to change in the future. The country is facing a number of challenges, such as an aging population and a declining birth rate. This means that the state will have to find ways to make more efficient use of its resources.

One way to do this is to focus on lifelong learning. This means providing opportunities for people to continue learning and upskilling throughout their lives. This will help to ensure that the workforce remains productive and adaptable to change.

Another way to improve the value of citizens is to invest in innovation. This means creating an environment where businesses can thrive and create new jobs. It also means investing in research and development so that Romania can stay ahead of the curve in terms of technology.

By investing in education, innovation, and lifelong learning, Romania can ensure that its citizens remain valuable assets to the state. This will help to create a more prosperous and sustainable future for the country.