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.
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.
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 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.
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.
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.