Economy

Caransebes, which is one of the oldest settlements of Banat, in the 16th century, became one of the most important local commercial centres being privileged by its geographical placement, at the intersection of South-Eastern Europe’s commercial roads and those of Central Europe.  

The Hungarian Historian Pesty Frigyes mentions that in 1449 Caransebes was known as a commercial city of first rank.

The intense economical activities are mentioned in a document from the 19th century. So, in 1874, 21 merchants and 39 craftsmen were registered here, there were workers in the small factories of the town or in the forests of the Fortune Community; most inhabitants worked in agriculture and animal growing. In 1875, the Caransebes railway station and the locomotive deposit are built. The railway lines to Timisoara (in 1876) and to Orsova (in 1878) are built.

In 1885, the first electric hydroelectric-plant in Europe and the second in the world is built, by Schmidt and Dachler, so that between 1885 and 1888 Caransebes is electrically lighted with Edison light bulbs (at Timisoara the same thing happened 6 months before here), time in which, in the big cities of the world, the priority of the illumination gas or the kerosene was argued. The old turbine with a vertical axis is replaced in 1905 with a Francis turbine which functions until 1929.

The economical development led to the apparition of some societies and associations: The Keeping House, The Commercial Room and The Association of Merchants. The industrial beginnings of wood processing in Caransebes dates from the year 1912, when the Mundus society appears, which became later the Wood Processing Compound Balta Sarata.

After the Great Union of 1918, the city develops much. The commerce and handicrafts flourish in the city. The wood in the forests of the Fortune Community will contribute to the development of wood-processing and wood selling (furniture, barrel, parquet, timber and plywood factories). Brick, tile and terracotta factories appear in the town, but most of the population was working in agriculture. In Caransebes a few banks and keeping houses for the financing of economical activities are built. Wagon repair workshops are also built.

After the Second World War new companies appeared and the existing ones where modernized. So, in 1971, the machine construction factory - ICM is being put to use, the CFR marshalling yard is extended, the automobile transport of goods and passengers is developed, and in 1979 the Caransebes airport is inaugurated.

In the period until the 1989 Revolution the accent was laid on the forced industrialization of the economy of Caransebes in the cadre of the Romanian one, generally speaking.     

After 1990 the results of the too ambitious, unjustified and disproportionate development of the industry were felt. Many of the industrial reference points closed their doors, partially or totally. This led to the depreciation, greater than the national one, of the standard of living and of the level of the development of the city. The economical developments in the last years were done without even a minimal development strategy of the city and of the area.

The privatization of the local tourism was done in a hurry, without it having good contoured objectives, without the necessary help and coordination of the state, after the privatization, without its implication in the resolving of infrastructure and environment problems, in the promoting of tourist programs.

Caransebes has many advantages to have a fast development in the future and we enumerate some of these:

- the geographical position, near the borders with Hungary and Serbia;

- the favourable climatic conditions;

- knot of road, railway and air traffic;

- population with a high rate of tolerance, reduced level of social conflicts between citizens;

- the technical infrastructure with water supply, sewerage, flood protection, electric energy and natural gas supply, quite developed;

- extended and modernized telecommunications network;

- fiber-optic network;

- integral mobile phone network coverage;      

- quite numerous workforce, highly qualified, at low costs, of all preparation grades;

- developed and diversified education network;

- extended privatization, with a great number of small and medium sized enterprises;

- a high tourist and agro tourist potential;

- a quite reduced grade of pollution;

It is necessary to elaborate a strategy to put at the disposition of those, who are interested in the economical progress of the area, a unitary way of thinking, which will be beneficial for a harmonious and durable development of Caransebes and of the surrounding area. A more powerful integration of the Caransebes area in the 5-th West Region and in the Euroregion Danube - Cris - Mures - Tisa and the establishing of an environment favourable to life and economical activities are imposed. The reaching of this purpose is possible only in a global cadre – economic, social and cultural – of durable development, under all these aspects - temporal, qualitative and ecological. For the accomplishing of these targets, the assuring of a stable economical growth is, above all, searched, through the creation and/or the development of those branches and sub branches of the local economy, which exploit to the maximum the existing local potential. The development of the area is based, primarily, on the actions of private investors. For that, the rise of the attractiveness of the business environment is stipulated, the growth of the physical (technical) and institutional infrastructure, depending on the local administrative power, the adopting of some local rules, coherent and stable, regarding the attracting of local investors and, mostly, foreign investors. Observing the development tendencies of the global economy, especially, the facilitating of implementing competitive industrial activities in the area – using advanced technologies, which make products with high rates of value – and of service activities, with a high quality, is searched for. It is necessary to implement advanced technologies in the area, but also the forming or re-qualification of the work force in conformity with the requests of real modern economy, for it to be specific to the area. It is also necessary to encourage the apparition of small companies, mobile and dynamical, and also the development of the services branch.

This durable, competitive development can be obtained only in a stable, cohesive and participative social climate. The concept has in mind the assuring of the participation of the locals to an active cultural life, the supporting of the activities of all the local cults, in the spirit of ecumenism, the assuring of the necessary conditions for all inhabitants to live in harmony in the area. The development concept accords proper importance to assuring a high level of quality conditions for the health services and for those of social assistance for the disadvantaged people and groups. The economical development of the area cannot be a purpose on itself. It will be made for improving the standard of living of the inhabitants, for assuring them a more prosper and good life. One of the essential preoccupations of the local administrative powers will need to be the making of the local legislation compatible, with the European legislation, accepted by Romania through the agreement regarding the partnership for the adhesion of Romania to the European Union. After the Revolution, Caransebes found its development resources in private initiative; the multitude of companies who activate in the city and their potential proves this. The rising exports impose the creation of a custom point in Caransebes, which got stuck, for some years, in the central bureaucracy.