THE ECONOMY

 

 

The Romanian economy is a socialist economy based on the "socialist ownership" of all means of production, including industry, transport, commerce, the financial and credit system, and agriculture. "Socialist ownership" is either State ownership or cooperative ownership ‑ that is, belonging to the people or to cooperative organizations, respectively.

 

 

INDUSTRY

 

Principal means of production in the industrial sector, all mines and transport, banking and insurance were nationalized in 1948.

 

Industry has become the key factor in the Romanian economy and its progress is duo mainly to the use of the most modern technology, machines and equipment. The use of automation has increased in various branches of industry, including chemicals, iron and steel, and electric power.

 

It is a revealing fact that before 1939. agriculture provided the highest proportion of the total national income : today, it is industry.

 

Romania has several sources of power. Largo quantities of black coal and lignite are extracted by some of the most modern methods; the largest pits have been completely mechanized.

 

Electric power has steadily increased and many new plants established : thermoelectric stations in the Ploieshti, Hunedoara, Constantza counties, etc.; the Gheorghiu‑Dej hydro‑electric station and the "Irou Gatos" hydro‑electric installation, a cooperative undertaking between Romania and Yugoslavia, one of the largest in Europe; etc.


 

Romania is the second largest oil producer in Europe. Refineries in old and new oil centers have been established and others improved. At the same time, the petro‑chemical industry has emerged and a vast plant operates at Borzeshti, near Gheorghiu‑Dej. Natural gas is used as an industrial raw material for ammonia, lamp‑black, nitrate fertilizers, etc.

 

Old iron and steel centers are being up‑dated, new ones constructed and as a result, the Romanian iron and steel industry, a basic branch of the economy, is producing at a much greater rate than could have been expected twenty years or more ago. The mining of nonferrous and rare metals is increasing and the nonferrous metal industry is now well‑established.

 

Engineering includes some new industrial forms, among them, oil and mining equipment, electrical equipment, agricultural) machinery and machine tools etc. Not so long ago, Romania had to import all the industrial equipment and machinery she needed; today, she not only supplies two‑thirds of her own needs but also exports to others.

 

The Romanian chemical industry produces about half of the items on the international list of chemical products ‑previously Romania had to rely on imports for supplies. Romania's raw materials include salt, oil, and natural gas used for chemical fertilizers, synthetic fibers etc. New factories have been built including a synthetic fiber factory at Roznov, a paper and cellulose plant utilizing the reeds of the Danube Delta, and many others.

 

Romania's timber industry draws upon the natural resources of her many forests and large quantities of products are now made from wood ‑ plywood, hardboard, furniture etc.

 

The building materials industry has established itself well into the Romanian industrial field. Cement is produced for export as well as for the home market. Other materials include bricks, tiles, glass, as well as prefabricated materials in concrete and reinforced concrete.

 

Light industry and foodstuffs are another important side of Romanian output ‑ as a result of the rapid development of heavy industries, lighter industries, such as clothing, leather, glass, china and foodstuffs have also shown a remarkable increases in output over the last few years.

 

 

AGRICULTURE

 

Before the Second World War, Romania was largely a grain growing country; agriculture accounted for two fifths of the national income and half the total value of the country's exports.

 

Several land reforms were proposed, none of which alleviated the suffering of the Romanian peasantry. The only one which can be considered of any success at all was that of 1945, when expropriated land was allocated to those who were landless or had very little land.

 

Then followed the molding of a "co‑operative" agriculture and the establishment of State farms. The State farms are like combined factories and experimental research stations. The obvious result of such methods is all round improvements and general progress.

 

The large sums of money which the Government loans to agricultural development has enabled the use of modern equipment and machinery and an overall mechanization of farming.

 

Romania's favorable natural conditions encourages a wide scope in the type of crops farmed. Even in the mountainous areas, there are large plots of arable land.

 

Much of the arable land is devoted to cereals and is located in the plains and the low hill regions of the Danube and the Tisza Plains, and the Moldavian, Dobrogean and Getic Tablelands. What with the fertile soil and the sufficient rainfall, high yields are produced. Here, too, the land formation is particularly suitable for mechanization. More lands suitable for arable farming are being recovered by land reclamation.

 

Pastures and meadows are found mainly in the mountains and above the conifers. Pastures in the Danube Delta are of poorer quality owing to the high salinity.

 

Vineyards and orchards are to be found mainly on the sub‑Carpathian hills, in Oltenia, Galatz, Ploieshti, and Wallachia respectively.

 

Romania is also very concerned with soil fertility and the prevention of soil erosion. Damming, drainage and irrigation are an essential part of the agricultural program and as a result the land available for farming is continually being increased.

 

Crops remain an important part of Romania's total agricultural output, although the rise in living standards has brought about an increase in plants such as potatoes and vegetables, rather than emphasizing the cereals for grains. More than 50% of Romania's agricultural area is under grains, vegetables, industrial plants, medicinal herbs and Forage crops.

 

Cereal crops, especially wheat and maize, are grown in the Tizsa, Jijia and Transylvanian Plains as well as the Dobrogean Tableland and the sub‑Carpathians of western Transylvania. Other cereals grown include maize, spring wheat and rye, and to a lesses degree, barley, rice, oats, sorghum and millet. Wheat and maize are two of the most important crops with autumn wheat high on the export list because of its quality and its gluten content.

 

The land under the industrial crops such as hemp, flax, sunflower, Soya and castor beans, tobacco and especially sugar‑beet is still being extended. The seeds of these plants are also used for vegetable oils, the most importer of which is the sunflower, grown mainly in the Danube, Tisza and Jijia Plains.

 

Chicory, tobacco and cotton are three of the more important industrial crops; the rest occupy a very small area.

 

Medicinal and aromatic plants such as mint, lavender, poppy etc. are grown for home produce and export. Vegetables ‑ especially early potatoes, tomatoes, onions, cabbage and green peppers ‑ are cultivated round all the major cities, and of course Bucharest.

 

One cannot talk about agriculture and not mention Romania's wine ‑ which is considered amongst the best produced in Europe. Fruit trees are generally grown above the vineyards, at about 500 meters. in the hills of the Carpathians, and the Moldovian and Transylvanian Tablelands.

 

More than 600 varieties of fruit trees a: grown, approx. two‑thirds of which are indigenous.

 

The animal population of Romania in 1945 was at a very low level today, thanks to careful breeding and improvement of fodder, the numbers have increased and are steadily increasing. Only the number of horses has declined, as in most parts of the world.

 

Horned cattle are to be found everywhere; cows for milking are generally raised close to the towns, or on the hilly areas, as well as in Olt, Argesh, Jassy and Bacau counties.

 

Pigs are bred under favorable conditions, Bucharest, Bihor and the Muresh counties being the largest centers. Various breeds are reared for meat and lard, most of which belong to the Big White breed.

 

Sheep are raised everywhere in Romania, especially in the areas around the Godeanu, Retezat, Paring ano Sebesh mountains. The number of sheep has steadily increased and supplies meat and wool, and raw material for the food and light industries. Much time has been devoted to experimentation, one of the most valuable results being the Palas Merino breed ‑ a cross between the Caucasus Merino with the Stavrapol Merino.

 

Poultry includes chickens, ducks, geese and turkeys and is considered an essential part of animal farming in Romania.

 

Bee keeping and silkworm breeding are both "industries" in Romania. State sericulture stations have been established and mulberry trees grow on land barely suitable for the cultivation of other plants.

 

The fishing industry in Romania is well‑developed, considerably helped by natural conditions, which determine the type of fish to be found in each area. Most of the annual catch comes from the Danube flood land and Delta, the rest from the Black Sea, the rivers and natural and artificial ponds. The fresh‑water fish, in particular, is eaten fresh and the sea‑fish is mainly preserved and canned. The caviar and smoked fillets from the Black Sea sturgeon in particular, are very popular at Nome and abroad.

 

 

AGRICULTURAL FARMS

 

Agricultural farms are divided finto two categories the State Farm and the Cooperative Farm.

State Farms are economic units belonging to the Government ‑ land, tools and produce. All workers or any category, are employees of the State.

 

All State farms are subdivided into different enterprises specialized in such agricultural domains as cereals, vineyards, fruit trees, industrial plants, animals, fowls, etc.


 

The Agricultural production Cooperatives (C.A.P.) are economic units based on the cooperative ownership of land, tools, and produce. These are the property of the members of each respective unit. Payment is made both in money and in agricultural produce, as a function of the number of days contributed by the worker.

 

Agricultural cooperatives, too, may be subdivided into specialized sections, according to the climatic conditions and the land.

 

 

TRANSPORT

 

Road and rail communications have developed considerably, the number of passengers carried by each increasing steadily each year. The most important highway in Romania runs diagonally across the county from Episcopia Bihorului to Giurgiu and Constantza. The Friendship Bridge across the Danube is an important road and rail link between the Balkan Peninsula and the countries north of the Danube.

 

River and sea trade is expanding and the ports of the Danube and the Black Sea are ports of cal) on international traffic routes.

 

TAROM, the Romanian Air Line has several main and secondary internal flights which connect Bucharest with the principal towns in the country. Direct flights link Bucharest to other capitals and main cities of the world.

 

 

TRADE

 

Within Romania, State owned shops and cooperatives are engaged in retails) and food trades. Foreign trade has increased, and besides being a member of COMECON, Romania also cooperates economically and commercially with numerous other countries. She plays a part in various international trade fairs and exhibitions. as well as international bodies such as UNESCO.

 

The majority of Romania's exports consist of machinery and complete plants, semi‑fabricated products and finished articles. Imports are mainly equipment required for power stations, the chemical industry, light industry, industrial plants, etc.

 

Other exports include : Complete plants for thermo‑electric power stations, plants for cement factories, machine tools, river and sea‑going ships, equipment for the oil industry, etc.

 

Petroleum, timber, chemical and pharmaceutical products etc. Foodstuffs ‑ cereals (in particular maize), vegetables, wine, tobacco, etc.