Romania consistently excels in international academic Olympiads—competitions in subjects like mathematics, physics, informatics, and chemistry—often ranking among the top countries globally despite its modest population of around 19 million and generally below-average performance on international assessments like PISA. Since 2020, Romania has achieved remarkable results in events such as the International Mathematical Olympiad, International Physics Olympiad, European Girls’ Mathematical Olympiad, and others, outperforming many larger and wealthier nations. This striking success is puzzling given that Romanian students overall do not perform well in standard international evaluations, which show a symmetrical distribution of scores without unusually high variability or a distinctive overperforming subgroup. The explanation lies in Romania’s uniquely structured education system. Romania’s educational tradition of competitive stratification began with mass literacy campaigns in the late 19th century but was fundamentally shaped by communist-era reforms in the mid-20th century, which eradicated illiteracy and expanded educational access, though often with low-quality facilities and resources. After communism’s fall, the system was streamlined but retained a strong focus on competition and stratification. Today, Romanian high schools are highly stratified into tiers—prestigious National Colleges, standard Liceu Teoretic, military colleges, vocational, technical, and apprenticeship schools. Admission to these schools is determined by a national placement test taken at the end of 8th grade, with highly precise publicized scores dictating which schools students can attend. This creates intense sorting by ability both between and within schools, resulting in highly homogeneous peer groups where high-achieving students study together, enhancing their academic performance through peer effects. Teachers themselves are also sorted by ability and preference, with the best educators choosing to work at the highest-ranked schools and with the strongest students, further amplifying the system’s competitive advantage. Romania also provides monetary rewards incentivizing Olympiad success for students, teachers, and schools. Although elite tutoring and private specialized schools exist, common worldwide among Olympiad competitors, these alone do not explain Romania’s exceptional results. Notably, funding disparities marginally disfavor top schools, and parental involvement with homework decreases as students enter higher-tier schools, yet these factors do not diminish the overall success. Romania’s formula for Olympiad excellence is thus threefold: grouping top students together, pairing them with top teachers, and creating strong incentives to excel. However, the system is zero-sum; while it significantly boosts high performers, it worsens outcomes for lower-performing students, and opportunities vary by locale—with smaller towns offering fewer school choices and