Real Convergence and Integration Romanian Journal of Economic Forecasting – 1/2008 27 REAL CONVERGENCE AND INTEGRATION

The study∗ ∗ is based on the critical observations that competitive market forces alone are not able to assure convergence with the developed countries. These observations are grounded on the results of the computation of the marginal rate of return on capital (which contradict the neoclassical model hypotheses), as well as on the real process of polarisation of the economic activities, taking place worldwide and in accordance with the law of competition. Unlike those who trust the perfect competitive market virtues, the EU’s economic policy is realistic as it is based on the harmonisation of the market forces with an economic policy based on the principle of cohesion, which supports, by means of economic levers, the less developed regions and member countries. This paper deals with the evolution of the EU cohesion funds, as well as with the results of convergence. Key words: Neoclassical model, marginal rate of return on capital, polarisation, convergence, divergence, cohesion, cohesion funds, structural funds, variation coefficient. JEL Classification: F02, F15, O57, P37 Economists wonder if real economy convergence can actually be achieved only in a competitive market according to the neoclassical models. In this respect, extensive studies and models have been completed. Considering the way the determinants and trends of real convergence are approached, the studies and models may be divided into three categories: • The first one views real convergence as a natural process, based exclusively on the market forces, in accordance with which the convergence process is surer and faster as the market is larger, more functional, less distorted. • The second one denies that, in the present competitive market, there is an actual real convergence between the poor and the rich countries, but accepts the ∗ Aurel Iancu is a Member of the Romanian Academy, Senior researcher within the Nationa