Romania Overview
INTRODUCTION - SOME HISTORY about ROMANIA
Before World War II, Romania was Europe's second-largest food produce. In 1938, per-capita national income reached $94, surpassing other present-day developed European countries such as Greece ($76) or Portugal ($81). However, the Romanian economy still lagged behind its Western European counterparts.
The GDP of Romania between 1870 and 2008 in dollars.
After World War I, the application of radical agricultural reforms and the passing of a new constitution created a democratic framework and allowed for quick economic growth - industrial production doubled between 1923–1938, despite the effects of the Great Depression.
1944–1989
After the Second World War, Romania became a member of the Eastern Bloc, and switched to a socialist-style command economy. During this period the country experienced rapid industrialization in an attempt to create a "multilaterally developed socialist society". Economic growth was further fueled by foreign credits in the 1970s, but this eventually led to a growing foreign debt, which peaked at $11–12 billion. This debt was most of it paid off during the 1980s by implementing severe austerity measures which deprived Romanians of basic consumer goods. In 1989, before the Romanian Revolution, Romania had a GDP of about 800 billion lei, or $53.6 billion. Around 58% of the country's gross national income came from industry, and another 15% came from agriculture. The minimum wage was 2,000 lei, or $135.
During the latter part of the Ceauşescu period, Romania earned significant credits from several Arab countries, notably Iraq, for work related to the oil industry.
1990 - 2007
Romania's GDP drop during the 1990s
In 1990 Romania switched to a free market economy, trying to establish a capitalist way of doing business and living.
Privatization of industry was the first big stept in this new concept of economy, abd it was pursued with the 1992 transfer of 30% of the shares of some
Before World War II, Romania was Europe's second-largest food produce. In 1938, per-capita national income reached $94, surpassing other present-day developed European countries such as Greece ($76) or Portugal ($81). However, the Romanian economy still lagged behind its Western European counterparts.
The GDP of Romania between 1870 and 2008 in dollars.
After World War I, the application of radical agricultural reforms and the passing of a new constitution created a democratic framework and allowed for quick economic growth - industrial production doubled between 1923–1938, despite the effects of the Great Depression.
1944–1989
After the Second World War, Romania became a member of the Eastern Bloc, and switched to a socialist-style command economy. During this period the country experienced rapid industrialization in an attempt to create a "multilaterally developed socialist society". Economic growth was further fueled by foreign credits in the 1970s, but this eventually led to a growing foreign debt, which peaked at $11–12 billion. This debt was most of it paid off during the 1980s by implementing severe austerity measures which deprived Romanians of basic consumer goods. In 1989, before the Romanian Revolution, Romania had a GDP of about 800 billion lei, or $53.6 billion. Around 58% of the country's gross national income came from industry, and another 15% came from agriculture. The minimum wage was 2,000 lei, or $135.
During the latter part of the Ceauşescu period, Romania earned significant credits from several Arab countries, notably Iraq, for work related to the oil industry.
1990 - 2007
Romania's GDP drop during the 1990s
In 1990 Romania switched to a free market economy, trying to establish a capitalist way of doing business and living.
Privatization of industry was the first big stept in this new concept of economy, abd it was pursued with the 1992 transfer of 30% of the shares of some