[M

eurostat

Country profile Statistisches Bundesamt

Romania 1992

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 m
eurostat

Country profile Statistisches Bundesamt

Romania 1992

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• •
• •
• •
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Statistisches Bundesamt

Gustav Stresemann-Ring 11, D-65180 Wiesbaden

and

Eurostat, Statistical Office of the European Communities

Plateau de Kirchberg, L-2920 Luxembourg
Edited by: Statistisches Bundesamt

Cataloguing data can be found at the end of this publication.

The French version of this publication is available from the Office for Official
Publications of the European Communities.

The German version of this publication may be obtained from the publisher,
Verlag Metzler-Poeschel, Stuttgart. Delivery: Hermann Leins GmbH & Co KG,
Holzwiesenstrasse 2, D-72127 Kusterdingen; fax 49/70 71/336 53.

Luxembourg: Office for Official Publications of the European Communities, 1994

ISBN 92-826-7316-2

© ECSC-EC-EAEC, Brussels · Luxembourg, 1994

Printed in Belgium
CONTENTS

Page

Symbols and abbreviations 3

List of tables 6
Introductory Remark 9
Maps 10

1 General survey 14
2 Area 18
3 Population 21
4 Health 29
5 Education 33
6 Employment 37
7 Agriculture, forestry, fisheries 41
8 Production industries 65
9 Foreign trade 74
10 Transport and communications 82
11 Tourism 88
12 Money and credit 91
13 Public finance 94
14 Wages and salaries 99
15 Prices 104
16 National accounts 108
17 Balance of payments 113
18 Sources 115

EXPLANATION OF SYMBOLS

0 = Less than half of 1 at the last occupied

digit, but more than nil

Magnitude zero

| = General break in the series

affecting comparison over time
Figure unknown

Tabular group blocked, because

information is not meaningful
GENERAL ABBREVIATIONS )

g gram h hour
kg = kilogram kW = kilowatt (103 Watt)
dt quintal (100 kg) kWh = kilowatt-hour
t tonne (1,000 kg) (103 Watt-hour)
mm millimetre MW = megawatt (106 Watt)
cm centimetre MWh = megawatt-hour
m metre (106 Watt-hour)
km kilometre GW = gigawatt(109Watt)
m2 = square metre GWh = gigawatt-hour
ha hectare (10,000 m2) (109 Watt-hour)
km2 = square kilometre St piece
1 litre Ρ pair
hi hectolitre (100 I) Mill. = million
m3 cubic metre Mrd. = thousand million
tkm = tonne-kilometre (USA: billion)
grt = gross registered ton A average
nrt net registered ton MA = monthly average
tdw tonnes deadweight cif cost, insurance, freight
(t = 1,016.05 kg) included
1 leu fob = free on board
us$ = US dollar
DM = Deutsche Mark
SDR = Special-Drawing
Rights

Special abbreviations are allocated to the respective sections. With only a few exceptions,
provisional, revised and estimated figures are not marked as such. Detail may not add to total
because of rounding.
Selected international weights and measures

1 inch (in) = 2.540 cm 1 imperial gallon (imp. gal).... = 4,546 I

1 foot (ft) = 0.305 m 1 barrel (bl) = 158.983 1
1 yard (yd) = 0.914 m 1 ounce (oz) = 28.350 g
1 mile (mi) = 1,609 km 1 troy ounce (troy oz) = 31.103g
1 acre (ac) = 4.047 m 2 1 pound (lb) = 453.592 g
1 cubic foot (ft3) = 28.317 dm3 1 short ton (sh. t) = 0.907 t
1 gallon (gal) = 3.785 I 1 long ton (I t) = 1.0161
LIST OF TABLES

Page

1 General Survey
1.1 Basic data 14
1.2 Important economic and social indicators for the countries of Central
and Eastern Europe 17

2 Area
2.1 Climate 19
3 Population
3.1 Population development and population density 21
3.2 United Nations' population projections 21
3.3 Birth and deaths 22
3.4 Population by age group 23
3.5 Area, population and population density by district 24
3.6 Urban and rural population 26
3.7 Population in selected cities 27
3.8 Population by ethnic group 28

4 Health
4.1 Registered illnesses 30
4.2 Mortality by selected cause of death 30
4.3 Beds in medical establishments 31
4.4 Doctors, dentists and nurses 32
4.5 Pharmacies and staff 32

5 Education
5.1 Schools and other educational establishments 34
5.2 Pupils and students 34
5.3 Students by type of studies 35
5.4 Teaching staff 35
5.5 Students abroad by selected host countries 36

6 Education
6.1 Persons of working age as a proportion of the total population 37
6.2 Employed persons and employment rates in 1977 by age group 38
6.3 Persons in employment in 1977 by occupational status 38
6.4 Persons in employment by area of the economy 39
6.5 Manual and non-manual workers by area of the economy 39
6.6 Manual and non-manual workers by sex 40

7 Agriculture, forestry, fisheries

7.1 Area of agricultural holdings by form of ownership 44
7.2 Numbers employed by form of ownership of agricultural holdings 44
7.3 Land use 52
7.4 Agricultural machinery 54
7.5 Consumption of commercial fertilizers 55
 Page

7.6 Index of agricultural production 56

7.7 Harvest volumes for selected crops 58
7.8 Yields for selected crops 58
7.9 Livestock population 60
7.10 Slaughterings 60
7.11 Production of selected animal products 61
7.12 Afforestation 63
7.13 Timber extraction 63
7.14 Fishing vessels 64
7.15 Catches 64

8 Production industries
8.1 Enterprises and employment in industry 66
8.2 Industrial enterprises by size classes 66
8.3 Craft cooperatives and services enterprises 67
8.4 Employees by group of industries 67
8.5 Index of industrial production 68
8.6 Power station capacity 69
8.7 Electricity production 69
8.8 Electricity consumption 70
8.9 Mining products, extraction of stones and earth 71
8.10 Production of selected products from the manufacturing industries 71
8.11 Completed dwellings 73
8.12 Completed dwellings by number of rooms 73

9 Foreign Trade
9.1 Foreign trade 75
9.2 Main import goods/commodity groups 76
9.3 Main export goods/commodity groups 76
9.4 Imports by major country of origin 77
9.5 Exports by major country of destination 78
9.6 Trade between Germany and Romania 80
9.7 Major goods/commodity groups imported from Romania by S ITC heading 80
9.8 Major goods/commodity groups exported to Romania by SITC heading 81

10 Transport and communications

10.1 Length of railway network 82
10.2 Amount of traffic carried on the railways 83
10.3 Length of road network by type of road 83
10.4 Number of motor vehicles and car ownership 84
10.5 Amount of traffic carried on the public network 84
10.6 Inland waterway transport 84
10.7 Number of merchant ships 85
10.8 Sea traffic 85
10.9 Civil air traffic 86
10.10 Communications 86
10.11 Long-distance pipelines 87
 Page

11 Tourism
11.1 Foreign visitors by route 88
11.2 Foreign visitors by selected country of origin 88
11.3 Accommodation establishments 89
11.4 Beds in accommodation establishments 89
11.5 Visitors in accommodation establishments and foreign currency receipts 90

12 Money and Credit

12.1 Official exchange rates 92
12.2 Gold and foreign exchange holdings 92
12.3 Selected data on money and credit 93

13 Public Finance
13.1 Consolidated state budget 94
13.2 Consolidated state budget revenue 95
13.3 Consolidated state budget expenditure 95
13.4 Gross fixed capital formation by selected sector 97
13.5 Government foreign debt 97

14 Wages and Salaries

14.1 Index of nominal and real wages 99
14.2 Index of average earnings by area of the economy 100
14.3 Average net monthly earnings by area of the economy 100
14.4 Average net monthly earnings of manual workers by area of the economy 101
14.5 Employees by net earnings category 101
14.6 Average monthly earning of employees by selected occupations 102

15 Prices
15.1 Cost-of-living index 104
15.2 Cost-of-living index for goods and services from the state and
cooperative sector 105
15.3 Average prices of selected agricultural products in 1990 on free
markets in 95 towns 105
15.4 Prices of selected energy products 106
15.5 Import and export price indices, terms of trade 107

16 National Accounts
16.1 Development of national income 109
16.2 Gross domestic product at market prices 109
16.3 Generation of national income 110
16.4 Generation of gross domestic product at market prices 111
16.5 Use of gross domestic product at market prices 112

17 Balance of Payments
17.1 Balance of payments 114

18 Sources 115
INTRODUCTORY REMARK

The country reports published in the "Statistics of Foreign Countries" series contain a
compilation of statistical data on the demographic and, more particularly, economic structure
and development of individual countries based on statistical publications produced by both the
countries concerned and international organizations. The most important national sources are
indicated at the end of the report.

The statistical methods and classifications of the former Socialist countries are still, in some
cases, different from those commonly used in economic accounts, and this makes it difficult - or
even impossible - to compare existing data. With regard to the reliability of Romanian statistical
data it should be pointed out that many official data from the time of the Ceausescu regime had
subsequently to be corrected. A detailed discussion of this problem is outside the scope of this
publication.

Chapter 7 (Agriculture, forestry, fisheries) of this country report was drawn up by the Institut für
Ausländische Landwirtschaft e.V. Berlin/IALA. The sources used by the lALA are listed
separately in Chapter 18 (Sources). The data taken from these sources may in some cases be
presented differently from those in the other sections.

For users who require more detailed figures or more information on questions of methodology,
the Statistisches Bundesamt in Wiesbaden has the original publications, while its branch office
in Berlin has an information service.

The maps in this report have been produced solely for illustrative purposes. In using the
designations and borders shown, the Statistisches Bundesamt is not passing judgment on the
legal status of any of the territories or confirming or recognizing any borders.'
12
 - 1 —
2Β·
ROMANIA
MOLDAVIA TRANSPORT
U K R A I N E
"^7 1 National border
© Capital city
O Town
-48 NORTH — ι. Railway

Motorway, under construction,

HUNGARY ~ — -planned
Trunk road
Other major road
River

r Canal under construction

-f- Major airport
«J, Sea port
«t Inland waterway port
){ Pass
— Dam

SO 1OOkm

BLACK SEA

SERBIA

30* Statistisches Bundesarnt 92 0188 Β

13
1 GENERAL SURVEY

State and Government

Name of country Parliament/Legislature

In full: Romania Two-house Parliament: Senate with 119
Short form Romania members and Parliamentary Assembly with
387 members

Statehood/Independence Parties/Elections
Independent since 1878 Results of the May 1990 Parliamentary
elections:
Front for National Salvation - Assembly 263
Constitution seats; Senate 91 seats; Hungarian People's
of November 1991 Union of Romania 29,10; National Liberal
Party 29,10; Romanian Environmental
Movement 12,1; Christian-democratic
Form of State and Government National Peasants Party 12,1 ; others 42, 4
Republic
Administrative subivisions
41 districts, 5 cities with extended self-
Head of State administration, ("municipalities"), 189 towns,
President Ion lliescu 2,705 rural communes.

Head of Government Membership of international organizations

Prime Minister Theodor Dumitru United Nations and UN special agencies.
Stolojan

1.1. BASIC DATA

Unit
Territoire
Total area km2 1992: 237,500
Arable land km2 1989: 94,580

Population
Total population
Results of population censuses 1,000 1966: 19,103 1977: 21,560
Mid-year 1,000 1990: 23,272 1992: 23,490
Population increase % 1966-1977: 12.9 1990-1992: 0.9
Population density Inhabitants per km2 1966: 80.4 1992: 98.9
Births per 1,000 inhabitants 1965/70 A: 21.3 1985/90 A: 15.5
Deaths per 1,000 inhabitants 9.2 10.8
Deaths in 1st year of life per 1,000 live births 52 22
Life expectancy at birth
Males Years 66 68
Females Years 70 73

14
 Unit

Health
Hospital beds 1,000 1975: 245.3 1989: 285.'
Inhabitants per hospital bed Number 87 8
Doctors Number 28,004 41,931
Inhabitants per doctor Number 762 55-
Dentists Number 6,051 7,111
Inhabitants per dentist Number 3,528 3,261
Education
Illiterates, aged 15 or over % 1988: 2
Pupils at general schools 1,000 1970/71: 2,941 1989/90: 2,89!
Students at technical colleges 1,000 506 1.34«
Students at universities or equivalent 1,000 152 16Í

Employment
Employed population 1,000 1975: 10,151 1989: 10,94f
of which:
Agriculture 1,000 3,837 3,01 Í
Production industries 1,000 3,110 4,16$

Agriculture, forestry, fisheries

Index of agricultural production 1979/81 D = 100 1986: 118 1990: 11Í
Food production 1979/81 D = 100 118 112
per capita 1979/81 D =100 115 107
Harvest volumes
Wheat 1,000 t Æ1D: 5,471 8.00C
Maize 1,000 t 11,823 9.20C
Potatoes 1,000t 4,381 7.60C
Cattle 1,000 6,047 6,291
Timber removal 1,000 m3 1985 23,004 1989: 19,307
Fish catches 1,000t 238 22E

Production industries
Production index 1980 = 100 1985: 120 1989: 133
Power station capacity MW 1970: 7,346 22,904
Electricity production Mill. kWh 35,088 1990: 64,142
Extraction of
brown coal and lignite Mill, t 1985: 37,924 33,737
oil 1,000t 10,718 7,925
natural gas 1,000t 36,875 28,886
Production of
motor fuel 1,000t 5,305 4,667
cement Millt 11,189 10.38Í
crude steel Millt 13,795 9,687

Foreign trade
Imports Mill. US$ 1985: 8,599 1990: 9.14E
Exports Mill. US$ 10,414 6.09E

15
 Unit

Transport and Communications

Length of railway netway km 1970: 11,012 1989: 11,343
Length of road network 1,000 km 75.9 7Z8
Motor cars per 1,000 inhabitants Number 1985: 41.7 1990: 55.7
TAROM passengers 1,000 1986: 1,240 1,322
Telephones 1,000 1970: 639 1989: 2,903
Radio and television licences 1,000 1,484 3,696

Tourism
Foreign visitors 1,000 1980: 6,742 1988: 5,514
Foreign currency receipts 1,000 1985: 182 1989: 170

Money and Credit

Official exchange rate, buying and
selling I per DM1 JE 1990: 23.48 June 1991: 5,514
Foreign exchange holdings Mill. US$ JE 1987: 1,402 July 1991: 261

Public Finance
Consolidated state budget
Income Mrd. I 1985: 399.4 1989: 408.0
Expenditure Mrd. I 375.5 45Z1
Foreign debt Mill. US$ 1984: 6,255 0

Prices
Cost of living index1' 1970=100 1985: 141 1989: 146
Food 1970 = 100 162 162

National accounts
Generation of national income
at current prices Mrd. I 1980: 513.6 1989: 63Z6
at constant prices 1980 = 100 100 108
per capita 1980 = 100 100 104

State and coopératives sector

16
1.2 IMPORTANT ECONOMIC AND SOCIAL INDICATORS FOR COUNTRIES
OF CENTRAL AND EASTERN EUROPE*)

Nutrition Health Education Energy

\ Indicator Calorie intake 1986 Percentage of

literacy in registered pupils
Inhabitants
Life the in the population Energy
per
expectancy population of primary consumption
Per capita/day hospital
at birth (aged 15 school age per capita
bed
1988 and over) 19871' 1988
1989
1988
% require- kg oil
Country \ kcaP Years Number %
ments3' unit4'

Albania 2,713 114 72 (90) 190 (88) 75 (86) 100 894 (86)
Bulgaria 3,642 145 72 (86) 100 98 104 4,074 (87)
Yugoslavia 3,563 139 73 (90) 169 (86) 93 (90) 95 2,159
Poland 3,336 126 72 122(90) 99 (86) 101 3,453
Romania 3,373 127 70 81 98 97 3,459
Soviet Union 3,399 133 70 76 100 (86) 105 4,512
Czechoslovakia 3,448 141 72(89) 97 99 96 4,302 (87)
Hungary 3,368 (a9) 135 70(89) 99 (90) 99 (90) 99 (89) 2,984

Agriculture Foreign Transport Communications National

\ trade income5)
\ Indicator % share of
produced total % of total Motor cars Number of main Television Per capita
national labour exports 1989 telephone lines licences index of
income force accounted 1989 1989 produced
accounted working in forby national
\ forby agri- manu- income
agriculture u Itu re factured 1989
1989« 1989 products71
Country \ Per 1,000 inhabitants

\ % Number 1980 = 100

Albania 35 (85) 49.8 (88) 2(70) 2 83 (87)
Bulgaria 13 13.2(88) 129 235 185 133
Yugoslavia 14 (87) 23.6 (88) 78(88) 127 (86) 138 175 (87)
Poland 15 26.8 (90) 62(87) 138 (90) 86 (90) 259 (90) 102
Romania 16 27.9 56 (90) 122 160 118
Soviet Union 23 18.8 (88) 24(87) 50(87) 106 321 120
Czechoslovakia 10 11.5 89(86) 200 136 298 115
Hongrie 16 15.3 67 (90) 188 (90) 96 (90) 283 (90) 111

') Figures in brackets indicate the year in question.

1) Figures over 100% occur as a result of the survey method based on educational stages, some pupils being recorded in the wrong age
group. · 2) 1 kilocalorie = 4,187 kilojoules. - 3) 1984/86 average · 4) 1 kg oil unit = 0.043 gigajoules. - 5) The national accounts of the
countries of central and eastern Europe are based on the concept of material production. For further explanations of the terms and
definitions used, please refer to the section on National Accounts. · 6) In current prices. -7) SITC Headings 5-8.

17
2 AREA

Romania's national territory covers a total area of 237,500 km2 equivalent to two-thirds the siz6
of the Federal Republic of Germany. Romania's location in south-east Europe bordering on the
Danube, the Carpathians and the Black Sea ranges from latitude 48° to 43° N and from
longitude 20° to 29° E.

The following types of topography can be distinguished.

The Tisa Plain, a fertile farmland, is an offshoot of the Hungarian Plain and is drained by the
Tisa. In the south of the Tisa Plain lies the Banat region, through which the Timis flows.

The Transylvanian Plateau forms a fertile hilly country, with an altitude of 400 to 700 m and
criss-crossed by rivers, in the inner rim of the Carpathians; it is linked to the rest of Romania by
gorges and passes.

The wall of the Carpathians stretches across the country in a vast arc from the northern border
to the Danube.

In the south and east of the Carpathians the foothills form a transitional area.

Walachia (Romanian Plain) forms the fertile core of Romania. Between the Southern
Carpathians/Carpathian foothills and the Danube (border with Bulgaria) lies Lesser Walachia
(Olteniat) to the west of the Olt, joined by Greater Walachia (Muntenia) to the east.

The Danube Delta is about 80 km long and covers an area of 4,000 km2. It grows about 4 m
into the sea each year.

The Moldavian Plateau is a hilly area lying between the Carpathians and the Prut River, which
forms the country's eastern border.

The tableland of the Dobruja Massif drops down to the Black Sea coast with steep limestone
cliffs, which are separated from the Sea by a flat strip of land with lagoons and sandy beaches.

The Danube is the country's most important river, flowing through Romanian territory for more
than a third of its total length (1,075 out of 2,857 km). A multitude of rivers, almost all of them
rising in the Carpathians, form a dense network of watercourses with the Danube.

The climate is temperately continental (cold winters, warm summers) with seasonal
temperature fluctuations that increase and year-round precipitation that decreases to the east
and south-east. The average temperatures are 21 °C in summer and -2°C in winter.

The difference between Romanian national time and Central European Time (CET) is +1 hour.

18
2.1 CLIMATE*)
(Long-term average)

Station Bucharest Sibiu Jasi Cluj

Location
^x^Hekjht above sea level

44°N 26°E 46°N 24°E 47°N 28°E 47°Ν24Έ

Month 82m 416 m 100 m 363m

Air temperature (°C), monthly and annual averages

Coldest month (January).. -2.7 -4.0 -4.1 -3.9

Warmest month (Jury) 23.2 19.8 21.6 19.9
Year 11.1 8.9 9.4 8.8

Air temperature (°C), average daily maximum/minimum

Coldest month (January).. 0.7 0.0 -0.4 0.4
Warmest month (July) 30.0 26.0 28.3 26.9
Year 16.6 14.2 14.7 15.1

Humidity (%), average maximum (mornings)

Wettest month (December).. 94 90' 81 93

v+v
Driest month (May) 66 77IV+V 66 " 70
Year 80 83 73 82

For notenotes, please see end of Table.

19
2.1 CLIMATE*)
(Long-term average)

Station Constanta PredeaH) Timisoara Turnu Severin

Location
^ x H e i g h t above sea level

44°N 29°E 46°N 25°E 46°N 2 1 Έ 45°N 23°E

Month 32m 1,093 m 91m 70 m

Air temperature CO, monthly and annual averages

Coldest month (January).. - 0.4 - 5.4 -1.6 -1.6

Warmest month (July) 22.4 14.6 21.7 23.2
Year 11.2 4.9 10.9 11.6

(°C), average daily maximum/minimum

Coldest month (January).. 3.0 - 0.6 2.2 1.9

Warmest month (Jury) 26.5 20.8 28.9 30.1
Year 15.0 10.4 16.9 16.9

;%), average maximum (mornings)

Wettest month (December).. 89 XkXll 89.90 χ μ 95-96 χ-' 90

Driest month (May) 70 74 80 64
Year 82 82 89 79

) Roman figures indicate different months.

1) Tomo Pass, south of Brasov, passage over the Southern Carpathians to Bucharest.
The German Meteorological Service, Zentralamt, Postfach 185, D-W-6050 Offenbach am Main has more detailed climatic data for these
and other weather stations. These data are generally released only against payment of a fee.

20
 POPULATION

In mid-1992 Romania had a population of 23.5 million (extrapolated figure) and an average
population density of 99 per km2 over its whole area. The last population census took place on
5 January 1977, when a population of 21.6 million was recorded (10.6 million males and 10.9
million females). The March 1966 population census had recorded a figure of 19.1 million. The
population thus increased by 2.5 million (12.9%) between these two censuses, giving an
average annual growth rate of 1.1%.

According to World Bank figures, the average annual rate of population increase was 1.1%
between 1965 and 1980 and 0.4% between 1980 and 1988. It is estimated at 0.5% for the
period from 1988 to 2000.

Average life expectancy at birth for men went up from 66 to 68 years between the periods
1965/1970 and 1985/1990; for women it increased from 70 to 73 years.

3.1 TOTAL POPULATION AND POPULATION DENSITY*)

Survey item Unit 1966 1977 1980 1985 1990 1992

Population 1,000 19,103 a) 21,560» 22,201 22,725 23,272 23,490

male 1,000 9,351 10,626 10,954 11,214 11,491
female 1,000 9,752 10,934 11,248 11,511 11,781
Population density in Inhabitants
relation to total area 1 ' per km2 80.4 90.8 93.5 95.7 98.0 98.9

*) As at the middle of the year.

1) 237,500 km2.
a) Results of the population census of 15 March.
b) Results of the population census of 5 January.

According to United Nations' population projections, Romania's population will increase to

between 24.1 million (low variant) and 27.5 million (high variant) by the year 2025.

3.2 UNITED NATIONS' POPULATION PROJECTIONS

1,000

Population projections 1995 2000 2010 2015 2025

Low variant 23,689 24,084 24,344 24,326 24,125

Medium variant 23,816 24,346 25,013 25,284 25,745
male 11,769 12,036 12,381 12,525 12,761
female 12,047 12,310 12,632 12,759 12,984
High variant 23,984 24,649 25,740 26,285 27,485

21
Demographic trends in Romania in the last few decades can be divided into the following
phases:
Immediately after the war up to the second half of the 1950s, relatively high numbers of
births were recorded (up to 28 per 1,000 inhabitants). The reason can be traced back to
the resurgence in the numbers of marriages and births, which had fallen off because of
the war.

In the following period up to about the mid-1960s, the numbers of births declined
appreciably, with the legalization of abortion in 1957 being an important contributory
factor. By 1966 the birth rate had fallen to 14.3 per 1,000 inhabitants.

In the next period, a series of population policy measures brought in by a 1966 Decree of
the State Council resulted initially in a leap in the numbers of births. These measures
included a ban on abortion, more difficult divorce, additional taxation on childless
couples and socio-economic measures designed to improve living conditions.

This was followed by a substantial long-term decline in the numbers of births, since in
view of the country's economic problems a general improvement in the population's
living conditions and medical facilities was not achieved. This decline could not be
stemmed even by repeated attempts to boost population growth by means of legislative
measures. However, this policy resulted in sudden fluctuations in the numbers of births,
with concomitant effects on the age structure of the population (cf. Table 3.4). This made
it impossible in many cases to draw up realistic plans in many areas such as education
and health and also the economy and administration.

3.3 BIRTHS A N D DEATHS

Survey item Unit 1965/70 D 1970/75 D 1975/80 D 1980/85 D 1985/90 D

Births per 1,000 inhab. 21.3 19.3 19.1 15.8 15.5

Deaths per 1,000 inhab. 9.2 9.4 9.7 10.2 10.8
Deaths in the 1 st year of life per 1,000 live births 52 40 31 26 22

22
3.4 POPULATION BY AGE GROUP*)
% of the population

1977 1985 1990

Age
Total Male Total Male Total Male

9.1 4.7 7.6 3.9 7.5 3.8

5 -10 10.2 5.2 8.7 4.5 7.4 3.8
10 -15 6.3 3.2 8.3 4.3 8.5 4.3
15 - 20 7.5 3.8 8.8 4.5 8.1 4.2
20 - 25 8.5 4.3 6.2 3.2 8.5 4.3
25 - 30 7.7 3.9 7.6 3.9 6.0 3.1
30 - 35 5.8 2.9 7.7 3.9 7.4 3.8
35 - 40 6.7 3.3 6.5 3.2 7.5 3.8
40 - 45 7.1 3.5 5.4 2.7 6.2 3.1
45 - 50 6.9 3.4 6.6 3.3 5.2 2.6
50 - 55 6.2 3.0 6.3 3.1 6.2 3.0
55 - 60 4.1 1.8 5.8 2.8 5.9 2.8
60 - 65 3.9 1.7 4.9 2.2 5.3 2.5
65 - 70 4.0 1.8 2.6 1.1 4.2 1.9
70 - 75 3.0 1.3 3.2 1.4 2.1 0.8
75 - 80 1.8 0.7 2.2 0.9 2.3 0.9
80 - 85 0.8 0.3 1.1 0.4 11.7 0.7
85 and over 0.4 0.2 0.4 0.1 )

) As at the middle of the year.

AGE STRUCTURE OF THE POPULATION OF ROMANIA

AND THE FEDERAL REPUBLIC O F GERMANY
Age groups as % of the population

ROMANIA FEDERAL REPUBLIC OF GERMANY

As at the end ' of 1990:38.18 mill. As at 31.12.1988: 61.72 mill.
Age from...to under...years Age from...to under...years

Female Female

'////Λ
777.
■ / / / /
f
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I'/////
Scale referred to age groups in 5-year increments

i)
Estimat·
SutisWchíS Bundesamt 92 0189 Β

23
In the last few decades Romania's administrative subdivision has twice been radically
amended.

In 1950 the more than 50 districts were replaced by 18 administrative regions (plus the capital
region of Bucharest). The number of administrative regions was subsequently reduced to 16.
The reasons for creating relatively few regions to replace a large number of districts were given
as the low level of development and the need to create a base of heavy industry. This led to the
loss of their position as administrative capitals for those towns which were centres of
(agricultural) trade and also often had other important service functions for their environment
but did not have a strong industrial base. In the years that followed, most of these towns fell into
a state of (at least relative) stagnation.

In a further administrative reform, 40 districts (plus the municipal district of Bucharest) were
created in 1968 instead of the previous 16 regions. This reorganization was intended to serve
as an instrument of sophisticated regional development - under the conditions of the level of
development attained in the 1960s. One of the results of this reform was that small provincial
towns where growth had been slight now received more substantial investment, which in many
cases speeded up their development appreciably. In general, efforts were made to reduce the
differences in development between the regions, although disparities within the regions were in
many cases not lastingly eliminated.

3.5 AREA, POPULATION AND POPULATION DENSITY BY DISTRICT*)

1977"» 1989 1977 1989

Area
District Capital Population Inhabitants
km2
1,000 per km2

Municipal district of
Bucharest Bucharest 1,521 2,095 2,319 1,377.4 1,524.7
Alba Alba Julia 6,231 410 428 65.8 68.7
Arad Arad 7,652 512 507 66.9 66.6
Arges Pitesti 6,801 632 678 92.9 99.7
Bacau Bacau 6,606 668 731 101.1 110.7
Bihor Oradea 7,535 633 660 84.0 87.6
Bistrita-Nasaud Bistrita 5,305 287 328 54.1 61.8
Botosani Botosani 4,965 451 468 90.8 94.3
Brasov Brasov 5,351 583 695 108.9 129.9
Braila Braila 4,724 378 404 80.0 85.5
Buzau Buzau 6,072 508 524 83.7 86.3
Caras-Severin Resita 8,503 386 408 45.4 48.0
Calarasi Calarasi 5,075 339 351 66.8 69.2
Cluj Cluj-Napoca 6,650 715 743 107.5 111.7
Constanta Constanta 7,055 609 737 86.3 104.5
Covasha Sfintu-Gheorghe.. 3,705 199 238 53.7 64.2
Dimbovita Tirgoviste 4,035 528 570 130.9 141.3
Dolj Craiova 7,413 750 772 101.2 104.1

For footnotes, please see end of Table.

24
3.5 AREA, POPULATION AND POPULATION DENSITY BY DISTRICT*)

19771> 1989 1977 1989

Area
District Capital Population Inhabitants
km2
1,000 per km2

Galat' Galati 4,425 582 642 131.5 145.1

Giurgiu Giurgiu 3,810 327 325 85.8 85.3
Gorj Tirgu-Jiu 5,641 349 388 61.9 68.8
Harghita Miercurea-Ciuc. 6,610 326 363 49.3 54.9
Hunedoara.. Deva 7,016 514 567 73.3 80.8
Jalomita Slobozia 4,449 296 309 66.5 69.5
Jasi Jasi 5,469 729 810 133.3 148.1
Maramures.. Baia Mare 6,215 493 556 79.3 89.5
Mehedinti Drobeta-Turnu-
Severin 4,900 322 329 65.7 67.1
Mures Tirgu Mures 6,696 605 621 90.4 9Z7
Neamt Patra-Neamt 5,890 532 580 90.3 98.5
Oft Slatina 5,507 519 535 94.2 97.1
Prahova Ploiesti 4,694 817 877 174.1 186.8
Satu-Mare... Satu-Mare 4,405 394 417 89.4 94.7
Salaj Zalau 3,850 264 269 68.6 69.9
Sibiu Sibiu 5,422 482 509 88.9 93.9
Suceava Suceava 8,555 634 699 74.1 81.7
Teleorman... Alexandria 5,760 518 504 89.9 87.5
Timis Timisoara 8,692 697 726 80.2 83.5
Tulcea Tulcea 8,430 254 275 30.1 32.6
Vaslui Vaslui 5,297 437 468 82.5 88.4
Vilcea Rimnicu Vilcea.. 5,705 414 430 72.6 75.4
Vrancea Focsani 4,863 370 394 76.1 81.0

*) As at the middle of the year.

1 ) Results of the population census.

In Romania, urbanization has gathered pace again in the last few decades. An important factor
in this was the collectivization of agriculture in the late 1950s and early 1960s. It was
accompanied by such things as the mechanization of agricultural activities, which led to
underemployment in this sector, while at the same time priority was given to creating jobs in
industry, thereby boosting the internal migration towards the towns.

In the 1977 population census, the degree of urbanization was calculated at around 44%. For
1990, the proportion of town-dwellers in the total population was estimated at 53%.

Far-reaching changes in the method of settlement, both urban and rural, were brought in with
the law enacted in 1974 on the "systematization" of the land and urban and rural settlements. It
served initially as the basis for a radical reform of the capital in accordance with the ideas of the
then Head of State, Ceausescu. In the second half of the 1980s the "systematization" of the
rural settlements was stepped up. The agricultural cooperatives were supposed to give way to
agro-industrial complexes in which farms and factories were to be merged under "cultivable"
conditions. Ultimately, this plan would have resulted in the elimination of half of the 13,000 or so

25
villages ¡n Romania. Even before the revolution in 1989, a great many villages in Romania were
destroyed as part of this reform, despite many protests (including some from the international
community).

3.6 URBAN AND RURAL POPULATION*)

Urban/Rural Unit 19771> 1980 1985 1987 1989 1990

In towns 1,000 9,396 10,172 11,370 11,771 12,312 12,353

% 43.6 45.8 50.0 51.3 53.2 53.2
In urbanized rural 1,000 844 843 691 - - -
communes % 3.9 3.8 3.0 - - -
1,000 11,321 11,187 10,663 11,170 10,840 10,859
In rural communes % 52.5 50.4 46.9 48.7 46.8 46.8

*) As at the middle of the year.

1) Results of the population censi s.
2) As at the beginning of the year

In mid-1989 the population of the capital was put at 2.04 million, an increase of 28% compared
with 1975. However, the rate of population increase of Brasov over the same period was
considerably higher at 74%. The eight next-biggest towns also had appreciably higher rates
than the capital, with increases ranging from 40 to 60%.

Bucharest, which in 1977 was struck by an earthquake, subsequently became a special target
of the radical reorganization and redevelopment plans of the former Head of State, Ceausescu,
which were bound up with the concept of "systematization". In particular, the mature structure
of not only the old city but also other parts of Bucharest was destroyed, after the inhabitants
had been evicted from their homes and allocated to other dwellings at random.

26
3.7 POPULATION IN SELECTED TOWNS*)
1,000

Town 1975 1978 1981 1984 1986 1989

Bucharest, capital., 1,589 1,858 1,861 a» 1,961 1,990 2,037

Brasov 203 268 320 335 352 353
Constanta 198 273 280 319 328 316
Timisoara 213 278 288 309 325 333
Jasi 216 278 280 310 313 330
Clui-Napoka 222 273 290 300 310 318
Galati 202 253 268 286 295 307
Craiova 198 231 240 267 281 300
Braila 170 200 219 228 236 243
Gradea 159 180 193 206 214 225
Arad 147 174 182 183 188 191
Bacau 111 136 156 170 180 193
Sibiu 158 164 173 178 184
Tirgu Mures 114 137 141 152 159 165
Pitesti 98 133 144 152 157 162
Baia Mare 93 108 123 131 140 150
Buzau 84 103 116 130 136 145
Satu Mare 92 108 116 126 130 137

*) As at the middle of the year,

a) 1980.

The 1977 census gave the following breakdown of the total population by nationality: Romanian
88.1%, Hungarian 7.9% (1.7 million), other 4.0% (0.9 million). Although in the next ten years up
to 1987 the proportion of Hungarians fell by 0.1 percentage points to 7.8%, their absolute
number (in an increasing total population) went up to 1.8 million (it was put as high as 2 to 2.5
million by some western experts). Owing to extensive migratory movements the proportion of
the 20 or so other minorities fell by 0.9 percentage points between 1977 and 1987 to 3 . 1 % of
the total population, or in absolute terms from 0.85 million to 0.71 million. Germans formed the
largest group in 1987, with 1.5% (0.34 million). At the end of the 1980s there was a significant
increase in emigration by inhabitants of German origin. Particularly after the revolution in 1989,
Romanian Germans emigrated in large numbers to the Federal Republic of Germany.

At the beginning of 1992 it was estimated that only between 80,000 and 100,000 Transylvanian
Saxons and Banat Swabians still lived in Romania. Their minority rights are scrupulously
respected by the present Romanian leadership; they were guaranteed in the Treaty on Good
Neighbourliness concluded between Romania and the Federal Republic of Germany in April
1992. Other minorities are Ukrainians, Serbs, Croats, Jews and gypsies.

The strongest religion is the Romanian Orthodox Church, to which about 70% of the total
population belonged in 1980. Over the previous 20 or 30 years close personal ties had
developed between the leading members of this faith and the state apparatus. It therefore
received the greatest government support of all the religions.

Some 3 million Catholics form the next largest group, which is divided into factions of the
Roman Catholic and United Churches. Most of the Roman Catholics belong to the Hungarian

27
minority. In recent times the state has placed considerable obstacles in the way of both factions
exercising their religion.

The various Protestant Churches have more than a million members. Moslems number about
40,000, while there were some 20,000 to 25,000 Jews in Romania at the beginning of the
1980s.

3.8 POPULATION BY ETHNIC GROUP

19771' 19872) 19771' 19872)

Ethnic group

1,000 %

Romanians 18,997 20,436 88.1 89.1

Hungarians 1,713 1,789 7.9 7.8
Others 850 711 4.0 3.1

1) Results of the population census.

2) As at the middle of the year.

28
4 HEALTH

In Socialist Romania state health care was officially free and available to all citizens. The right
of all Romanians to health protection and equality of treatment was even enshrined in the
Constitution of Socialist Romania. Although especially between 1940 and-1980 there was a
substantial increase in expenditure on public health services and in the number of doctors and
hospital beds, the country's health care facilities are now inadequate. This is due to the rapid
reduction of Romania's foreign debts during the 1980s and to the general economic crisis. In
view of the concomitant scarcity of funds, which was exacerbated by the expenditure on large
prestige projects, interest in investment for social policy measures has faded into the
background.

At the beginning of the 1990s Romanian hospitals were likened by western experts to technical
museums representing a level of development achieved half a century previously in western
Europe. There is also a shortage of surgical instruments, syringes, ECG and blood pressure
measuring equipment, other types of equipment and all sorts of drugs and medicines.

Even in Socialist Romania, equality of health services for the various sections of the population
was nowhere near achieved. There are still serious diferences between the towns and rural
areas. Although at the beginning of the 1990s almost half of Romania's inhabitants still lived in
rural areas, barely a sixth of the country's doctors practised there.

For the rural population medical treatment therefore involves long journeys in most cases. The
farmers (about half a million) and the more than 40,000 private artisans were granted no
access at all to free state health care. For the rest of the population too, the use of health
services - and the quality of those services - became increasingly dependent on their ability to
make "payments of gratitude". On the other hand, preferential treatment was given to members
of the secret police "Securitate" and of the state and party apparatus. For them, medical
facilities of western European standard and medicines from western countries were readily
available.

Table 4.1 gives a picture of registered illnesses in the period from 1971 to 1981. More recent
comprehensive data are not available. The health of the population was critically impaired by
the increasing shortage of food during the 1980s and by restrictions on heating imposed on
account of the energy shortage. In recent years there has also been a significant increase in
alcohol abuse.

Over the last few years there has been a substantial rise in the number of AIDS sufferers. Up to
the end of 1990 a total of 1,168 AIDS cases had been recorded. The main cause was the
widespread practice of giving underweight infants "mini-transfusions" with in many cases
infected syringes (used many times over) or blood. An investigation at the end of the 1980s
revealed that, out of 1,025 tested young children living in orphanages or hospitais, 367 (28%)
were HIV positive, whereas 98% of their mothers were HIV negative.

Even disregarding the AIDS cases, the state of health of the children living in orphanages is
generally very poor. At the beginning of the 1990s their number was estimated at between
50,000 and 130,000. The rapid increase in the number of orphans over a period of many years
is the result of the population policy measures brought in under Ceausescu. The policy of
encouraging births (backed among other things by the ban on abortion) did not pay any heed to
the economic and social situation of the mothers, who found themselves unable to bring up
their children. As a result, there was a sharp rise in the number of orphans, who were
accommodated in orphanages under frequently inhumane conditions.

29
A further particularly disadvantaged section of the population are t h e elderly. In view of the
inadequate increases in retirement pensions, they suffered very m u c h from t h e general
problems such as f o o d shortages. T h e y were not allowed to m o v e to bigger t o w n s ; where their
children might h a v e b e e n able to support t h e m a n d the supply situation w a s generally not as
b a d . T h e y w e r e also badly off as regards access t o health services.

4.1 REGISTERED ILLNESSES

Illness 1971 1974 1980 1981

Typhoid and paratyphoid fever 315 414 75 82

Other salmonella infections 2,241 2,734
Bacterial dysentery 21,828 25,246 17,768
Pulmonary tuberculosis 19,570 8,280 8,544
Pertussis (whooping cough) 17,628 ■ 14,564 11,441 7,350
Streptococcal angina and scarlet fever 13,548 18,358 14,417 9,559
Meningococcal infection 396 212 496 503
Tetanus 33 33
Acute poliomyelitis 21 10 40 125
Varicella (chicken pox) 76,615 74,344 55,745 53,527
Measles 97,084 122,470 10,476 21,584
Viral hepatitis 58,429 55,865 50,085 53,877
Mumps 78,972 76,007 64,333 77,197
Syphilis (lues) 7,845 2,247 1,613
Gonococcal infection 36,194 20,226 18,929
Influenza 501,039 350,379 235,584 119,205

T h e table b e l o w s h o w s that t h e majority of the deaths by selected c a u s e w e r e attributable to

diseases of t h e circulatory s y s t e m . Other important causes w e r e malignant neoplasms,
diseases of t h e respiratory organs, injuries a n d poisoning, a n d diseases of t h e digestive
organs.

4.2 MORTALITY BY SELECTED CAUSE OF DEATH

Cause of death 1980 1985 1988 1989

Infectious and parasitic diseases 1,571 1,226 1,356 1,414

Tuberculosis 830 947 1,185 1,285
Malignant neoplasms 29,976 31,064 32,739 32,775
Endocrinal diseases, nutritional
and metabolic diseases and
disorders of the immune system 1,502 2,054 2,166 2,240
Diseases of the nervous system
and sensory organs 2,798 3,235 4,002 3,803

For footnote, please see end of Table.

30
4.2 MORTALITY BY SELECTED CAUSE OF DEATH

Cause of death 1980 1985 1988 1989

Circulatory diseases 130,543 143,294 146,219 142,988

of which:
diseases of the cerebro-vascular
system 31,889 36,216 40,376 38,998
Diseases of the respiratory organs., 30,342 28,884 25,734 24,462
of which:
influanza 204 40 19 23
Diseases of the digestive organs 10,079 11,948 12,425 12,388
Diseases of the urinary and sexual
organs 3,587 3,811 3,728 3,680
Complications during pregnancy,
childbirth and Puerperium 527 493 591 626
Congenital disorders 2,337 2,312 2,771 2,545
Specific diseases1' 2,482 1,625 1,603 1,423
Symptoms and poorly described
diseases 125 78 77 61
Injuries and poisoning 14,893 15,418 16,393 17,285

1) Arising during the perinatal period.

Between 1 9 7 5 a n d 1 9 8 9 the number of hospital beds increased b y 1 6 % t o a r o u n d 290,000. As

a result, t h e ratio of inhabitants per hospital b e d went down from about 8 6 to around 8 1 .
However, this trend d i d not automatically mean an improvement in hospital services for the
general public, since - as already mentioned - the hospitals' equipment a n d facilities have for
many years not been adequately replaced or modernized.

4.3 BEDS IN MEDICAL ESTABLISHMENTS

Establishment Unit 1975 1980 1985 1988 1989

Total 1,000 245.3 2614 274.2 283.5 285.7

General hospitals 1,000 174.7 194.8 203.2 206.2 206.9
Tuberculosis sanatoria Number 10,810 6,520 5,319 4,990 4,990
Maternity homes Number 7,307 4,602 2,738 2,263 2,879
Prevention centres Number 4,478 2,461 2,146 1,996 1,996
Children's homes Number 9,514 12,271 13,061 13,878 13,963
Hearth resort establishments 1,000 38.5 42.7 47.7 54.2 55.0

The number of doctors went u p by 5 0 % between 1975 and 1989 to about 4 2 , 0 0 0 , which meant
that t h e ratio of inhabitants per doctor fell from 762 to 554. T h e numbers of dentists, nurses a n d
pharmacists' staff also w e n t u p .

31
4.4 DOCTORS, DENTISTS AND NURSES

Survey item Unit 1975 1980 1985 1987 1989

Doctors Number 28,004 32,762 40,050 41,059 41,938

Inhabitants per doctor Number 762 680 569 560 554
Dentists Number 6,051 7,029 7,340 7,212 7,116
Inhabitants per dentist Number 3,528 3,169 3,103 3,188 3,263
Nurses 1,000 121.3 132.9 133.9 135.2 135.7

4.5 PHARMACIES AND STAFF

Survey item 1975 1980 1985 1987 1989

Pharmacies 1,819 1,857 1,922 1,930 1,935

Pharmacists 5,376 6,451 6,558 6,517 6,432
Pharmacists'assistants 604 685 668 656 684
Dispensaries 6,700 6,800 6,600

32
5 EDUCATION

Under the 1948 Education Reform Law the whole of the public education sector was
nationalized along Soviet lines. Following the introduction of seven years' compulsory schooling
(in 1961/62), this was subsequently increased to eight years and finally to ten years at the
beginning of the 1970s. Compulsory schooling was preceded by pre-school education for
children aged between three and six. The compulsory general school with eight classes has a
horizontal grading with two cycles: the primary cycle with years one to four and a follow-on
cycle with years five to eight. The changeover is marked by the introduction of specialist
subjects. Those completing general education have the choice of eight types of "stage I
grammar schools", two in the general sector ("technical" and "humanistic") and six in the
specialist sector (industry, agriculture, economics, health, education, art). Further education
leads either directly to production, to vocational school (courses lasting a year or a year and a
half) orto stage II grammar school (with secondary leaving certificate and university entrance).

Since 1973 there have also been training centres for highly qualified technicians with a short
training period (usually two years). They train "medium-grade" technicians (between craftsman
and qualified engineer) for industry. These "lower schools of engineering" have been set up
within large polytechnics and technical universities.

Schooling is free. Illiteracy is considered to be more or less eradicated, after about 27% of the
population in 1945 were still unable to read and write. In 1988 the proportion of illiterates was
put at 2%.

In some cases the national minorities have their own schools or special classes in which the
children are taught in their mother tongue.

In Romania there are four categories of higher education establishments with legal personality:
universities, institutes, academies and conservatories. However, there are few clear-cut criteria
for distinguishing between them. The studies generally last for four to six years, depending on
the subject. "Day courses" are the rule. Correspondence and evening courses are also
available, but they last a year longer than the day courses for the same subject.

In Socialist Romania education was seen as the most important way of social reform. Through
education in Socialist behaviour and values the "New Man" of the Socialist type was to be
created. In addition, the "democratization" of education was propagated. In this context the
offer of free educational facilities for the entire population became an important plank in the
legitimization of the regime.

Public education for all led at the same time to the emergence of a working population that was
supposed to become the cornerstone of permanent economic development. From pre-school to
university, education was interpreted as a political socialization process. As early as nursery
school, goals were set such as love of the fatherland, faithfulness to the state party and
reverence of the Head of State, Ceausescu. As part of the Marxist view of the working world to
be created, equal opportunities for the sexes at work and the equality of mental and physical
work were also propagated. Also to be imparted were Socialist ideals which placed discipline
and active involvement in the building of Socialism above individual well-being and job success.

Alongside ideological education, older children were increasingly involved in direct political work
as part of organizations such as the "Young Pioneers" or later the Communist Youth
Organization. Participation in the work of these organizations, which were controlled by the
Communist Party, was compulsory. Ideologically correct behaviour became a condition for
advancement in the education system and was thus of crucial importance for future job

33
prospects. After the overthrow of the former Head of State, Ceausescu, a thorough overhaul of
the education system was announced, to be accompanied by de-ideologization of this sector.

5.1 SCHOOLS AND OTHER EDUCATIONAL ESTABLISHMENTS

Establishment 1970/71 1980/81 1985/86 1987/88 1989/90

Pre-school establishments 10,336 13,467 12,811 12,291 12,108

General schools 14,958 14,381 14,076 13,895 13,357
Vocational schools 403 603 753 764 798
Technical colleges 282 300 296 322 225 a)
Specialized schools 831 971 981 981 981
Higher education establishments. 51 44 44 44 44

a) 1988/89.

As already mentioned, the "democratization" of education was one of the main demands of
education policy in Socialist Romania. This policy led temporarily to a rapid increase in pupil
numbers - especially in elementary schools, but also at secondary level, which was to be
increasingly opened up to children of manual workers and farmers. In 1975 it was observed
that 100% of the relevant age group were following a ten-year elementary education. The
proportion completing secondary education and higher education had risen to 49% and 10%
respectively. Subsequent fluctuations in pupil numbers must also be viewed in the context of
the Government's population policy, the shape of which had corresponding effects on the birth
figures - and hence on the later numbers of pupils.

5.2 PUPILS AND STUDENTS

1,000

Establishment 1970/71 1980/81 1985/86 1987/88 1989/90

Pre-school establishments 448.2 935.7 864.3 828.1 835.9

Female pu pils 224.5 461.1 426.8 409.8 413.5
General schools 2,941.3 3,308.5 3,030.7 3,027.2 2,891.8
Female pupils 1,435.5 1,610.1 1,476.5 1,474.9 1,408.8
Vocational schools 195.9 139.8 287.8 278.0 304.5
Female pupils 27.3 45.8 86.2 94.5 114.5
Technical schools 33.0 28.4 2Z8 22.9 1Z23)
Female pupils 10.9 1.8 1.4 1.3 0.8
Specialized schools 505.9 979.7 1,226.9 1,228.5 1,346.3
Female pupils 260.7 465.6 623.4 623.4 671.0
Higher education establishments. 151.9 192.8 159.8 157.0 164.5
Female students 65.4 8Z1 71.7 73.9 79.5

a) 1988/89.

34
In the higher education sector the number of students as a proportion of their a g e group was
finally limited to about a tenth of eligible persons. The bar on access was enforced by m e a n s of
particularly difficult entrance examinations, which could only be passed with the -help of many
years' extra tuition by private teachers (the proportion of university entrants who had received
eight years' extra education was estimated at 9 0 % ) . In practice the restrictions on access
meant that many children of manual or farm workers were to all intents and purposes prevented
from going on to higher education for reasons of cost. The completely different conditions for
access to educational establishments in urban and rural areas meant that the rural population
in particular had limited prospects of going on to higher education.

5.3 STUDENTS BY TYPE OF STUDIES

1,000

Survey item 1970/71 1980/81 1985/86 1987/88 1989/90

Total 151.9 192.8 159.8 157.0 164.5

Day studies 107.4 161.1 100.0 90.5 95.0
Evening studies 6.8 18.7 48.7 55.6 59.3
Correspondence studies. 37.6 13.0 11.1 11.0 10.2

The rapid growth in pupil numbers in the decades following the Second World W a r was
accompanied by a sharp increase in teaching staff. In 1970 the number of primary and
secondary teachers had trebled compared with the first half of the 1940s. In general schools
the average pupil/teacher ratio fell to 21.3 by 1 9 7 0 / 7 1 . It subsequently fluctuated before falling
to 20.4 by 1 9 8 9 / 9 0 .

5.4 TEACHING STAFF

1,000

Establishment 1970/71 1980/81 1985/86 1987/88 1989/90

Pre-school establishments (female teachers only). 18.9 38.5 33.5 31.3 31.3
General schools 137.8 156.8 147.1 141.1 141.7
Female teachers 88.1 109.0 103.5 101.7 10Z9
Vocational schools 11.8 2.0 2.5 2.4 1.9
Female teachers 3.2 0.5 0.8 0.9 0.7
Technical schools 1.8 0.3 0.1 0.05 0.02 a)
Female teachers 0.5 0.04 0.03 0.01 0.01
Specialized schools 23.1 46.5 47.5 43.8 4Z5
Female teachers 12.1 20.6 23.2 21.7 21.7
Higher education establishments 13.4 14.6 13.0 1Z0 11.7
Female lecturers 4.0 4.4 3.8 3.4 3.2

a) 1988/89.

35
5.5 STUDENTS ABROAD BY SELECTED HOST COUNTRY

Host country 1984 1985 1986 1987 1988

Federal Republic of Germany.. 238 a ' 193 218 271

France 201 175 191 223
United States 74 60 63 72 85
Switzerland 67 69 61 62 67
Austria 27 22 22 25 30
Hungary 12 16 23 19 16
Vatican City 9 7 6 9

a) 1983.

36
 EMPLOYMENT

As part of the reform of the economy after the Second World War there were sweeping
changes in employment. With the collectivization of agriculture and the nationalization of
industry, mining, banking and transport, private economic activities were extensively eliminated.
As early as the first half of the 1950s the first five-year plan along the lines of the Soviet model
sparked off rapid industrialization of the country. This economic strategy led to far-reaching
changes in the structure of employment. The number of persons employed in agriculture as a
proportion of all those in employment fell sharply from about three-quarters in 1950 to
somewhat under a third in 1980. At the same time the proportion employed in production
industries went up from 12% to 36%. This shift was bound up with extensive migration to the
towns. In particular, young, relatively well-educated and ambitious people left the villages. As a
result, the working population that remained there comprised a high proportion of older people.
The proportion of women in the agricultural labour force rose to well above the corresponding
percentage in the total number of employed persons.

After the revolution in 1989 unemployment rocketed. The number of recipients of

unemployment benefit was estimated at about 180,000 in October 1991, which was almost
three times as high as the figure at the beginning of the year. However, this increase was still
well below the level originally feared, an important factor being the delay in closing down
unprofitable firms. The growth of unemployment was also stemmed by the rise of subsistence
farming, the absorption of available labour by the booming private economy, early retirement
and people going to work in other countries.

6.1 PERSONS OF WORKING AGE AS A PROPORTION OF THE TOTAL

POPULATION

Survey item Unit 1977"» 1985 1986 1988 1989

Persons2* 1,000 10,793.6 13,994.5 14,116.3 14,214.6 14,250.7

Proportion of total population % 50.1 61.2 61.7 61.5 61.4

1) Working population aged 14 or over. Results of the population census.

2) Women aged between 16 and 60. Men aged between 16 and 65.

Table 6.2 shows the breakdown of employees by age group. As age increases, the proportion
of employed persons in the relevant age group rises, reaching a peak of 90.8% in the 30-35
age group. In the case of elderly persons the employment rate falls to 11.7% for the 70-75 age
group. 6.8% of persons aged 75 or over were still in employment in 1977.

As already mentioned, one of the consequences of the process of industrialization and

urbanization was that young men in particular moved away from the villages. The average age
of male farmers thus rose to 43 (results of the 1977 population census).

37
6.2 EMPLOYED PERSONS AND EMPLOYMENT RATES IN 1977 BY AGE
GROUP

Total Male Female Total Male Female

Age
1,000 % of age group

14-15.. 5.7 2.6 3.1 0.4 0.4 0.5

15-
5-20 581.9 317.6 264.2 34.8 37.5 32.1
20-
)-25 1,458.6 788.9 669.7 81.4 87.1 75.6
i -30
25- 1,449.5 789.2 660.3 90.1 97.0 83.1
30-
1-35 1,147.1 623.1 524.0 90.8 97.9 83.5
35-
i-40 1,338.7 719.6 619.1 90.4 97.2 83.6
40-
)-45 1,370.1 740.8 629.3 88.8 95.8 81.7
45-
i-50 1,256.0 686.4 569.6 85.7 93.8 77.6
50-
)-55 1,047.6 568.7 478.9 78.9 88.8 69.7
55-
i-60 524.3 286.2 238.1 64.1 78.7 5Z5
60-
1-65 305.2 179.6 125.6 33.9 44.7 25.2
65-
i-70 143.8 81.9 61.9 16.7 20.9 13.2
)-75
70- 72.9 37.6 35.3 11.7 13.4 10.3
75 and over.. 4Z5 20.3 22.2 6.8 8.2 5.9
Unknown 49.9 24.4 25.5 47.2 49.2 45.4

*) Results of the population census.

T h e 1977 p o p u l a t i o n c e n s u s revealed that only 6 % of persons in e m p l o y m e n t c o u l d be

classified as s e l f - e m p l o y e d , while 6 4 % were w a g e - and salary-earners a n d 2 9 % f a m i l y w o r k e r s .

At t h e e n d of t h e 1 9 8 0 s almost all workers w e r e m e m b e r s of the t r a d e u n i o n s . H o w e v e r , t h e s e

associations w e r e t r a d e unions in n a m e only; in actual fact, t h e y s e r v e d a s o r g a n i z a t i o n s for
pushing t h r o u g h t h e leadership's ideas. T h e w o r k e r s w e r e , h o w e v e r , f o r c e d to join t h e s e
o r g a n i z a t i o n s in order to be able to receive social benefits a n d s h a r e s of profits.

6.3 PERSONS IN EMPLOYMENT IN 1977 BY OCCUPATIONAL STATUS*)

Total Male Female

Occupational status

1,000 % 1,000

Total 10,793.6 100 5,866.9 4,926.7

Self-employed 701.0 6.4 230.6 470.3
Family workers 3,114.8 28.9 1,043.4 2,071.4
Wage- and salary-earners 6,945.9 64.4 4,576.0 2,369.8
Not specified 31.9 0.3 16.8 15.1

*) Persons aged 14 or over. Results of the population census.

38
In the 1980s the pace of industrialization slackened. Between 1980 and 1989 the number of
persons employed in agriculture fell by only 1.2%; in production industries, however, there was
still an increase of 13%. With an increase of 37% over the same period, the local authority,
housing and services sector showed a strong upward trend.

6.4 PERSONS IN EMPLOYMENT BY AREA OF THE ECONOMY*)

1,000

Area of the economy 1975 1980 1985 1988 1989

Total 10,150.8 10,350.1 10,586.1 10,805.4 10,945.7

Agriculture 3,837.4 3,048.1 3,020.8 3,024.2 3,012.3
Forestry 26.5 39.5 38.7 42.7 44.0
Production industries1' 3,109.7 3,678.7 3,927.8 4,064.6 4,169.0
Construction 825.5 857.6 787.6 771.8 766.7
Distributive trades 558.7 619.9 617.4 635.4 648.9
Transport 431.8 629.8 639.0 670.2 675.3
Communications 68.7 79.9 81.6 80.3 81.8
Local authorities, housing, services 348.7 390.9 429.0 503.7 533.6
Education, culture, arts 408.6 430.5 412.5 370.9 372.8
Science and research 77.3 98.3 134.8 140.8 141.2
Hearth and social services, physical education. 267.3 281.7 286.1 288.9 292.3
Public administration 67.6 64.8 56.8 56.3 53.8
Other 123.0 130.4 154.0 155.6 154.0

*) As at the end of the year.

1) Excluding construction.

6.5 MANUAL AND NON-MANUAL WORKERS BY AREA OF THE

ECONOMY*)
1,000

Area of the economy 1975 1980 1985 1988 1989

Total 6,300.8 7,340.0 7,661.3 7,842.6 7,997.1

Agriculture 484.2 550.6 612.9 609.6 601.6
Forestry 51.2 53.1 55.4 58.9 59.1
Production industries 2,802.1 3,329.2 3,583.7 3,698.6 3,799.4
Construction 736.4 787.6 692.7 696.4 717.4
Distributive trades 553.2 624.6 623.7 635.5 643.3
Transport 402.2 578.5 593.5 614.5 618.1
Communications 67.9 79.3 81.0 79.9 81.0
Local authorities, housing, services 286.1 339.4 371.5 435.8 459.8
Education, culture, arts 387.5 418.7 404.4 361.7 364.2
Science and research 84.3 110.0 151.8 158.3 159.1
Hearth and social services, physical education. 262.0 278.4 283.0 287.3 289.7
Public administration 64.1 61.6 53.7 52.9 51.2
Other 119.6 129.0 154.0 153.2 153.2

') Annual average.

39
Between 1975 and 1989 the proportion of female manual and non-manual workers went up
appreciably from 34% to 40%.

Considering manual workers only, the proportion of women is again quite high; between 1975
and 1989 it went up from 31% to 38%.

6.6 M A N U A L A N D NON-MANUAL WORKERS BY SEX*)

1,000

Survey item 1975 1980 1984 1985 1989

Total 6,323.4 7,378.5 7,574.0 7,689.3 8,023.8

male 4,134.4 4,631.8 4,623.5 4,661.8 4,785.2
female 2,180.0 2,746.7 2,950.5 3,027.5 3,238.6
Manual workers 4,982.8 5,891.5 6,013.8 6,104.1 6,408.2
male 3,461.4 3,888.4 3,839.3 3,871.6 3,992.8
female 1,521.4 2,003.1 2,174.5 2,232.5 2,415.4

*) As at the end of the year.

40
7 AGRICULTURE, FORESTRY, FISHERIES

Until well into the 1970s Romania was regarded as a primarily agricultural country. Even today,
agriculture and forestry still play an important part in the economy: some 62% of the total land
area is used for agriculture, while about 27% is wooded land. Almost half the population lives in
rural areas and 28% of the economically active population are employed in agriculture and
forestry. In 1990, 17.5% of the national income was produced by this sector. Agriculture's
share of total investment rose slowly but steadily from 10% in the 1950s and '60s to around
13% in the 1970s and early '80s and about 17% at the end of the 1980s. The ratio of national
income contribution to share of investment shows clearly that agriculture has acted as a source
of growth for other sectors and over a long period of time has therefore lost the capacity to
accumulate as a result of the price and taxation policy pursued. It was also seen as an
important source of foreign exchange, with agricultural products forming the major proportion of
Romanian exports to western countries. In 1988, products of agricultural origin accounted for
about 11 % of the value of total exports.

By western European standards, the use of land and labour is high, output moderate and
productivity low. Whereas in western European countries increasing surpluses are being
produced with much lower rates of utilizable land (western Europe as a whole: 0.43 ha;
Romania: 0.64 ha of utilizable land per inhabitant), Romania had to switch to rationing most
basic foodstuffs. This happened at the same time as substantial export surpluses of US$ 234
million were achieved in agricultural trade.

The following quantities were approved in 1988 as annual per capita consumption: 6 kg of flour,
55 kg of bread, 6 kg of sugar, 2 kg of butter, 36 litres of milk, 6 litres of edible oil, 18 kg of meat
and meat products, and 108 eggs. Only 2,000 kcal per person were available for average daily
consumption. There were supply crises in some regions, not least because of the system of
territorial self-sufficiency introduced in the 1980s, which to a large extent put an end to the
distribution of agricultural products from one region to another. Despite increased imports in
recent years, the supply of food to the population is not adequately ensured at present.

After the Second World War an important task for agriculture was to absorb as many workers
as possible. Between 1950 and 1960 more than 6.2 million persons (65% of the total number in
employment) were active in this sector. At the same time, this vast supply of labour (for every
agricultural worker there were 2.3 ha of utilizable agricultural land in 1960) also released
investment for industry. The increasing development of industry and the extremely poor income
situation in agriculture meant that in the 1960s and 70s there was a massive exodus,
particularly of young workers, to industry. In this period (1960 to 1980) the number employed in
agriculture fell by more than half to around its present level. Government measures which
made it more difficult to move to the towns prevented a further reduction. Whereas in western
Europe in the late 1980s there were 8 persons employed for every 100 ha of agricultural land,
the corresponding figure for Romania was 20. However, this reflects not only the low labour
productivity of Romanian agriculture but also the consequences of excessive specialization,
inflated management structures and inadequate planning and organization of work. Any
analysis of these ratios should also take account of the fact that many collective farms and
large state-run holdings were not engaged exclusively in primary agricultural production but
also in other activities.

As far as the short- and medium-term future is concerned, agriculture as a means of

subsistence will be relatively important for the time of conversion and reorganization of the
economy as a whole. The measures adopted to dissolve the agricultural cooperatives show that

41
the present government sees agriculture as a sort of catchment basin for the labour freed by
restructuring.

Hardly any other branch of the economy was subjected to such radical processes of change
under the Communist systems as agriculture. After more than 40 years' existence and the
collapse of the Socialist economic order, the reform of agriculture has its own special
dimension.

The origins of the Socialist agricultural system go back to the events of the Second World War.
When the Communists seized power on 6 March 1945, far-reaching changes in forms of
ownership and the organization of agriculture were set in motion. The Land Law of 23 March
1945 marked the first step in this direction. All privately owned land of more than 50 ha
(excluding model farms initially) and the land owned by certain groups of people was
expropriated without compensation. This also affected 85% (536,000 ha) of the agricultural land
owned by German small and medium-sized farmers from Banat and Transylvania. The
expropriated land was used to create new holdings with a maximum size of 5 ha. Existing
smallholdings could be increased to this size.

What was trumpeted in the propaganda as a continuation of the great Romanian agricultural
reform of 1918 to 1922 (some 6.1 million ha of land had been distributed) was in fact the
preparation for the introduction of a completely new social order in rural areas. The
redistribution of land was intended to satisfy the desire of the smallest farmers and landless
tenants for land and win them over to the new government's goals. The existence of a large
number of miniature farms with low economic power and productivity served a few years later
as the main argument in favour of the need for collective farming.

After model farms and the properties of up to 50 ha, which until that time had remained in the
possession of the former owners, were transferred to the Agricultural Reform Fund in March
1949, the total area of expropriated land amounted to 1.5 million hectares. Of these, 1.1 million
ha went to 918,000 peasant families, which thus received an average of 1.2 ha of land. The
state claimed 0.4 million ha and, in addition, the landed property of the Crown, the Church and
the estates that were already state-owned before the war.

At the end of the post-war stage and the beginning of the Socialist stage of the agricultural
reform, 22% of agricultural land was state-owned and 78% in the possession of farmers. 53%
of holdings were very small farms with less than 3 ha of land, 41% had between 3 and 10 ha,
and only 6% had more than 10 ha. Control of the farms was exercised initially via state
supervision of the marketing of agricultural products and from 1947 onwards by means of
compulsory deliveries. Small farmers with less than 4.35 ha were exempted from these
deliveries, whereas the quotas for large-scale farmers, against whom the battle had never let
up, were downright prohibitive.

The Socialist reform was initiated with the plenary meeting of the Central Committee of the
Romanian Workers Party in May 1949. This officially laid the ground for the further
development of the different forms of ownership, the inroduction of the socialist agricultural
sector and its increasingly closer tie-in with the planned economy.

State, cooperative and private farms constituted the different forms of agricultural holdings
during Romania's Socialist period.

The state agricultural sector comprised the former large estates, the royal domains, Church
property and former state property. Further land was added by the conversion of cooperatives
into state-run holdings. Under the title "state agricultura! holdings" the state's agricultural
property emerged in two forms: as actual state farms and as production sectors of research

42
institutes and stations, processing plants and mechanization stations. By the mid-1980s the
state farms had taken over a considerable proportion of state land. A further part, especially
pastureland, was leased to the agricultural production cooperatives. Altogether, the state sector
comprised 4.5 million ha of agricultural land at the end of the 1980s, some 30% of the total
utilizable area. 2.1 million ha of agricultural land were worked by the state farms. Between 1965
and 1989 their number declined by 60%, while their average size increased from 2,880 to
5,000 ha. In 1989 there were 411 state farms in Romania. Being better equipped than the
agricultural production cooperatives and also given preferential treatment in the supply of
means of production, they achieved a higher level of productivity. For the rest of the agricultural
sector they were supposed to act as models and as experimental farms. They were given tasks
connected with animal and plant breeding.

Cooperative ownership constituted the dominant form of ownership in Romanian agriculture

between 1960 and 1989. In order to overcome the peasants' scepticism and resistance towards
collectivization, it was initially possible to choose between various forms of collectivization.
Farming cooperatives and farmers' associations were set up as the lower echelons of collective
cooperation. Since, however, they were intended to be only temporary phenomena on the road
to the Soviet-type cooperative, the pressure soon intensified on the farmers to join the
"Gospodarii agricole colactive" (GAC) and to change over from "low-type" cooperatives to GAC.
Four years before the deadline originally set and at more or less the same time as the other
Socialist countries, the collectivization of Romanian agriculture was declared completed in
spring 1962. In 1965 the collective farms were renamed agricultural production cooperatives
and new model statutes were introduced. Unlike previously, however, these statutes no longer
contained any sort of guarantees for the legal ownership of the land contributed. Land, livestock
and equipment were declared communal property. Only the land on which the farmhouse and
other farm buildings stood remained expressly the private property of the member of the
cooperative. In 1989, 8.9 million ha of agricultural land belonged to the cooperative sector.
Here too a process of concentration took place. By means of mergers the number of
cooperatives fell to just under 80%. Between 1965 and 1989 the average land capacity of the
cooperatives increased from 1,920 ha to 2,825 ha of agricultural land. In 1989 there were 3,172
agricultural production cooperatives.

The cooperative farmers were allowed to use "farmland" privately. The land was allocated to
the member from the communal property. From 1972 onwards the parcel remained limited to
1,250 m2 per member. Altogether, 6% of the agricultural land was worked as farmland. For a
long time there were also limits for individual livestock farming. However, because the
cooperative and state sectors were unable to fulfil the production tasks assigned to them, the
limits were abolished. In 1983 a special programme for the development of the individual
household farms was even drawn up. A significant proportion of important agricultural products
(milk, pork, sheepmeat, wool and eggs) is produced by secondary farms. The sector's output
covers a large part of the producers' own requirement for certain agricultural products.

As in all the Socialist countries of Europe, the collectivization of agriculture was accompanied in
Romania too by the development of state machinery and tractor stations. Following
reorganization (a decision to this effect was adopted in 1970), they continued their work with
extended responsibilities as stations for the mechanization of agriculture. Their main task was
to provide mechanical services for the cooperatives, in return for which they received a share of
the harvest. In the livestock sector they were responsible for the assembly, servicing and
general maintenance of plant and equipment. There were considerable problems in obtaining
the technical basis from the agricultural production units. Time and time again, new decisions
had to be taken to improve mechanization activity and normalize relations between the
mechanization stations and the production cooperatives. Some progress was achieved through
the demarcation of fixed areas of responsibility and the formation of complex brigades in which

43
the members of the relevant mechanization departments worked together with the members of
the cooperatives. In 1982 the Law on the improvement of work in the mechanization stations
finally came into force, aimed at establishing closer relations between mechanization stations
and farms. The technology concentrated in the mechanization stations was now housed in the
cooperatives on the basis of long-term contracts but remained the stations' property. Moreover,
the cooperatives' technical equipment was also placed under the control of these outside
agencies of the mechanization stations. A transfer of technology to the cooperatives, such as
happened in other Socialist countries after a consolidation phase, was not acceptable to the
Romanian leadership. As "bases for the rural working class", the mechanization stations were
supposed to remain an instrument and an institution for safeguarding state interests in the
cooperative sector. This was exemplified by, for example, the creation of the territorial
cooperation councils and the agro-industry councils, on which the directors of the
mechanization stations were given management functions by decree.

In 1989 there were 573 mechanization stations throughout the country. They controlled, for
example, 77% of the total number of tractors and 61% of the total number of combine
harvesters.

Private property was tolerated in Romanian agriculture only where the natural conditions were
not suitable for large-scale production. Private farmers could therefore survive only in hill and
mountain regions as small and very small holdings. Up to 1989 about 9% of agricultural land
was farmed by private farmers, with the emphasis on fruit and vegetables and livestock
production.

7.1 AREA OF AGRICULTURAL HOLDINGS BY FORM OF OWNERSHIP

1,000 ha

Form of ownership 1970 1975 1980 1985 1989

Total 14,905 14,946 14,963 15,020 14,759

State holdings 4,492 4,492 4,488 4,467
State farms 2,089 2,058 2,036 2,051 2,056
Cooperatives 9,033 9,047 9,061 9,133 8,964
Private farms 1.380 1,407 1,414 1,420

7.2 NUMBERS EMPLOYED BY FORM OF OWNERSHIP OF AGRICULTURAL

HOLDINGS
1,000

Form of ownership 1970 1975 1980 1985 1989

Total 4,848.6 3,837.4 3,048.1 3,020.8 3,012.3

State farms 292.3 251.7 199.9 266.4 261.2
Workers 266.7 234.7 184.0 245.3 238.3
Cooperatives 3,376.2 2,813.2 2,195.2 2,045.4 1,910.7
Mechanization stations 96.1 126.4 208.5 164.3 163.3

44
The process of concentration in agriculture is the result of economic activity and the pressure of
progress. Its aim is increased efficiency of the factors of production employed. Such processes
can be seen in all countries. Their degree depends on the level and pace of development of the
economy in question. Their outward signs are increasing holding sizes, decreasing labour input,
specialization of production and inter-holding cooperation. The organization of production in
large units was one of the typical features of the Socialist agricultural system. When it was set
up, the issue was not so much economic difference as the quest for further nationalization of
the means of production and the adaptation of agricultural production to the needs of the
central planning and leadership. At the same time the coordination of agricultural production
with the updtream and downstream sectors of the economy was made easier for the central
planning and leadership. It was not so important whether the property in question was private,
collective or cooperative - the only crucial factor was that the representatives of the central
authority had control over the means of production. The function of the central authority as the
supreme head of production also explains the tendency to increase the size of holdings. There
were no fundamentally different reasons for the forms of organization of agricultural production
adopted in Romania too.

At no time did Romania's agriculture have mechanization resources that would have required
farms of 3,000 or 5,000 ha. On the contrary, the farms' machinery was and remained very
meagre throughout the period. Instead of freeing labour, agriculture suffered increasingly in the
1980s from the shortage of labour. The planned yield increases could not be achieved. In the
early 1970s the decision had been taken to set up large livestock farms that would use
"industrial" production methods across the board or partially. The state farms saw the
emergence of poultry breeding and production complexes, large units for milk production and
cattle fattening and a whole series of pig breeding and fattening units. The cooperatives set up
inter-holding units for the production of animal products (pig and cattle fattening, poultrymeat
production and egg production), which proved to be very cost-intensive. At one of the last
plenary assemblies of the Party a call was made for simpler and cheaper production methods.
Inter-cooperative units were also set up, however, to build and operate improvement facilities
(especially irrigation systems), greenhouses, processing plants and construction and service
facilities. The setting up of specialized sections of holdings dates back to a 1967 decision. As
relatively independent units with their own management and accounts, they grew up within
state farms and cooperatives. The state holdings produced mainly seeds and plants and
breeding and utility livestock on these farms. In the cooperatives they were set up primarily to
produce fruit and vegetables.

One of the typical features of the economic policy of centrally planned economies was to react
to inadequacies and poor performance by setting up new institutions and further instruments for
in most cases more extensive administration of the economic subjects. In Romanian agriculture
too, an attempt was made to overcome the low level of performance with the help of
organizational streamlining and increased control. In 1971, for example, territorial cooperation
councils were brought into being. They were given responsibility for all decisions concerning
development for the agricultural units in their territory.

At the same time decisions were taken about the local party and state organs' authority to issue
directives to the territorial cooperation councils and the letter's resulting accountability.
Formally, the cooperatives were granted economic, legal and organizational autonomy and a
say in important matters, but in practice an instrument of control had been created which further
restricted the farms' freedom of movement.

The cooperation councils were dissolved in 1979 as "historically obsolete" and replaced by the
"unified state and cooperative agro-industrial councils". In addition to the primary agricultural
sector, the upstream and downstream sectois were now brought under a single leadership and

45
control. Depending on their territorial location, these could be any of the following: the
agricultural production cooperatives, the state agricultural holdings and their farms, the
mechanization stations, the inter-cooperative establishments, branch associations for the
industrial processing of meat, milk, sugar beet, vegetable fats and tobacco, other economic
units of a horizontal agricultural nature, agricultural research institutes. and stations, and
vocational schools. The organs of the council included the general assembly, the management
board and the executive bureau. The council had its own funds for its staff requirements.

The councils had management, coordination and supervisory functions within their territory,
particularly as regards the following:

all-round fulfilment of the plan and of cooperative and state holdings' delivery obligations;

optimal utilization of all available resources, especially the full use of land;

matters of site distribution, concentration, specialization and cooperation;

ensuring equal intensivization conditions for all units belonging to the territorial council;

extension or establishment of processing capacities in the territory;

ensuring the supply of plant and equipment to holdings;

rational use of technology in the mechanization stations;

planning.

Within the council, the agricultural holdings, associations, etc. kept their legal autonomy. They
controlled their receipts and expenditure and were responsible for fulfilment of the tasks laid
down for them by the plan.

As a form of organization of vertical cooperation, agro-industry associations and combines were

founded from the mid-1970s onwards. They encompassed the cooperation links between
agricultural holdings and the processing firms.

The highest authority for agriculture was the Ministry of Agriculture, Food Industry, Forestry and
Water Resources. Subordinate to it were "Government Departments" for the various branches
producing and processing agricultural products and "Central Offices" for the horizontal sectors.
The corresponding state management and planning functions were carried out at district level
by the "Directorates-General for Agriculture and Industrial Processing of Agricultural Products",
which were accountable to both the Ministry and the District People's Council for fulfilment of
the plan in the territory.

Although the integration of the agricultural cooperatives into the state planning and supervision
system had been briefly relaxed, this state of affairs changed drastically with the 1976-1980
planning period. The indicators on delivery obligations to the state for wheat, grain maize,
sunflowers, sugar beet, potatoes and vegetables and on the development of livestock numbers
were supplemented by plan indicators on gross output and sale to the state of barley and
brewing barley, soya beans, fibre plants and hemp, fruit and grapes, meat, milk, eggs and wool.
There were guidance indicators for yields per hectare of wheat, rye, grain maize, sunflowers
and sugar beet and for the target average output of milk, eggs and wool.

The supply of agricultural products to the state was based on delivery contracts between the
agricultural holdings and the state collection centres. The contracts were valid for a period of
several years and laid down quantities, quality, delivery deadlines, prices and other criteria.

46
The contract prices for crop products varied from one location to another. Uniform prices were
laid down for animal proaucts on the basis of the nationwide prime costs of agricultural
production calculated for the last four to five years and taking account of projectecLprime costs.
Under normal production conditions, this was intended to ensure a level of profitability of more
than 15% for crop production and 7-15% for animal production.

Between 1989 and 1990 the price index for agricultural products as a whole went up to 159.3%,
broken down into 158.0% for crop products and 160% for animal products.

In 1981 a programme for territorial self-sufficiency, self-administration and self-management

came into force, making the territories accountable for the steadily worsening supply situation
and giving them responsibility for resolving it. The centrepiece of the Order was that once
deliveries had been made to the centralized state fund from which the processing industry, the
tourist centres and a type of reserve fund were supplied, each district had to form its own food
consumption fund, which then served in principle as the sole source of supply of the resident
population.

The poor income situation of the collective farmers and the uncertainty over their retirement
arrangements were the cause not only of the increasing exodus from agriculture to the
industrial centres but also of the lack of motivation on the part of those stayed behind to place
their labour at the disposal of the collective. Their main concern was understandably the
working of the farm and garden. Even the setting up of an old-age pension fund for agricultural
production cooperative members in 1966 did not give the farmers an adequate sense of
security. In addition, the burden of contributions had to be borne exclusively by the
cooperatives and their members. At the end of the 1960s the level of income in agriculture was
still much lower than in industry. In view of the considerable disparities the Party and
Government found themselves forced to reorganize the system and level of remuneration in
agriculture.

The precondition for the abolition of payment according to the number of days worked as
shown in the cooperative's annual results had been created by the new organization of work in
the cooperatives. After being tried out in the state agricultural holdings, the system of payment
by performance was first used in 1973/74 in all cooperatives in conjunction with the formation of
mixed brigades (mechanizers and cooperative farmers). Since 1975/76 payment has been
made according to standard basic rates under the "global agreement". With this system, which
makes a distinction according to type of crop in arable farming and according to type of animal
in livestock farming, payment could be made at fixed rates for the total output or at fixed rates
until the planned output was achieved plus a share of any extra output. The latter form never
attained the importance expected of it, since only very few of the production cooperatives
achieved the high targets.

In these cooperatives cash payment or a mixture of payment in cash and in kind was the norm,
with monthly advances being granted in the course of the year.

Cooperative farmers who worked throughout the year and could prove that they had been
employed on the same farm for a minimum of five and a maximum of twenty years or more
received a graded supplement of 2-3% to the guaranteed annual income.

Despite the global system and loyalty bonus the income of agricultural workers remained below
the level of earnings in industry. In 1989 the average monthly income in industry was 3 069 lei,
compared with 1,920 lei (63%) in agriculture.

The long period of uncertainty about the balance of power which followed the December 1989
revolution complicated and delayed the process of reform in agriculture. Measured against the

47
problems to be solved, the legislative activity of the new government remained rather marginal.
The main priority was to repeal legal provisions from the Ceausescu dictatorship, such as the
1978 Systematization Law, the limitations on landowners' rights of disposal contained in Articles
44-50 of the 1974 Land Law, the provisions of the 1984 Decrees on compulsory contractual
delivery of agricultural products from small-scale production, the Decree on the sale of
agricultural products by individual producers, the Decree on territorial self-administration and
food supply measures, and other laws.

Laws also came into force to extend and facilitate individual land use. The land already used
individually in the hill and mountain regions (1.5 million ha of agricultural land) was privatized.
Instead of the previous 0.125 ha, the members of agricultural cooperatives received 6.5 ha for
individual use. The rest of the rural population was given 0.25 ha for use free of charge.
Additional production incentives were expected from the increase in state buying-in prices. All
these schemes and measures did not, however, change the fundamental situation in
agriculture.

While the political parties and groups were still talking about the content and implementation of
an agricultural reform, a largely uncontrolled process of dissolving the previous agricultural
order began in the villages, the social and economic consequences of which are still not clear
even today. The cooperative sector in particular was the target for arbitrary seizure and wanton
damage to land, productive livestock, farm buildings, equipment and stocks.

The February 1990 Land Law finally brought about the most important legal precondition for an
ordered reorganization of farming. It decreed the dissolution of the agricultural cooperatives
and the transfer of a maximum of 10 ha of land to each of the farmers. The intercooperative
associations were exempted from dissolution and were provisionally given the status of trading
companies. Some 8 million ha of agricultural land thus came under the Land Law.

Local commissions were given powers to decide on applications for restitution or assignment of
land. Preference was to be given to the claims of those farmers (or their heirs) who had brought
land to the cooperative at the time of collectivization in the 1950s. Members of the German
minority, whose land had been confiscated as long ago as 1945, were placed on an equal
footing by a retrospective amendment of the law. The churches too were given the right to
claim back up to 5 ha of their former land.

The land commissions received a total of more than 6.2 million applications. Different ways of
interpreting the text of the law, the far-reaching significance of the decisions and the results of
earlier arbitrary acts complicated the reprivatization process considerably. At the end of 1991
not even half of the applicants were in possession of an official title deed.

The fundamental issue is, however, the fact that the actual tenures have still not been
regulated. In the territory of Romania before 1918 there was never such a thing as a land
register, and in Transylvania it has not been kept since the 1950s. Land is in fact distributed by
demise, but the actual tenures are obscure. The divided land is not registered in the farmers'
names and it cannot be sold, so there is no real private property.

The division of more than 50% of the agricultural land into units that are much too small for the
establishment of viable holdings, and their transfer to owners the majority of whom do not have
tractors, draught animals or agricultural equipment, requires - if only in the interest of the overall
economy - the development of inter-farm cooperation. The opportunities for this are derived
from a law that provides for the creation of agricultural companies and other private-law forms
of association. It is possible to merge holdings to form associations without legal status, to set
up trading companies and to create agricultural companies with legal personality for the

48
purpose of joint working of the land. Unlike the simple forms of association, the agricultural
companies are founded by means of a deed authenticated by the state notary's office.

The agricultural mechanization stations formerly responsible for the cooperative sector are
continuing their activity for the time being as trading companies for agricultural service under
state supervision.

As the discussions currently stand, the privatization of these stations seems to be just a matter
of time. Possibilities being considered are auctioning them off or simply transferring them to the
communal ownership of the newly-founded agricultural associations.

The state farms are still classified as "publicly owned holdings with strategic importance". They
do not come under the Law on large-scale privatization and even after their conversion into
trading companies they are under state supervision. However, there is already a bill on the
leasing of state-owned land, which could be the first step towards privatization.

With a 1991 law on foreign investment, Romania has created favourable conditions for foreign
investors, who may also invest in agriculture. However, the law rules out property rights on
land, but allows the purchase of production centres and farm buildings.

According to the Government's strategy papers on the reconstruction of agriculture, high priority
is given to the creation of conditions in keeping with a market economy, such as a working
banking and financial system, adequate facilities for agricultural training, advice and
information, efficient processing structures and an adequate supply of capital and services.

Of the natural conditions, climatic and soil conditions are leading factors of agricultural
production. The third factor is the surface shape, which not only influences the climate and soil
but also facilitates or complicates the working of the land.

Romania has three main types of relief: the lowlands, the hills and tablelands, and the
mountains. In the lowlands, which make up some 33% of the territory, lie the main cereal-
growing areas. They include the Walachian Plain in the south and the Tisa Plain in the west.
The hilly land between 200 and 500 m above sea level covers about 37% of the country. It
takes in the Transylvanien Plateau, West Piedmont, the outer Subcarpathians, the Geti
Uplands, the Moldavian Plateau and the Dobruja Plateau. In addition to the cultivation of
cereals and industrial and commercial crops, the uplands form the prime areas for fruit and
wine-grape production. In the mountain areas, which with an average altitude of 800 m above
sea level make up 30% of the total land area, there are few opportunities for arable farming.
These areas comprise the Eastern and Southern Carpathians, including the Banat and Bihar
mountains. They are predominantly meadow and pastureland and forestry areas, the former
particularly in the south and the latter economically important in the north and east.

The geographical location and variety of relief are the main reasons for a number of types of
regional climate and their local differences. The generally moderate climate is subject in the
west to slightly oceanic influences, while in the north it is markedly continental. From the south-
west comes an interseasonal Mediterranean climate. The vegetation period begins about a
month later in the north than in the south. The coldest month is January, the warmest July.
Average temperatures are -3°C in winter and between +22° and +24°C in summer. Minimum
temperatures as low as -30°C in winter and maximum temperatures of between +30° and
+35°C in summer are not uncommon, however.

Precipitation increases from the south and south-east to the west and north-west and from the
plains to the mountains. The south-eastern part of the country (the Danube Plain and Dobruja)
has the lowest annual precipitation with between 350 and 500 mm. To the north and east of the

49
Danube Plain and in the Tisa Plain annual rainfall is between 500 and 550 mm. Under the
influence of the north-westerly airstreams the Transylvanien Basin receives between 600 and
700 mm of rain. In the uplands and the Piedmont Hills annual rainfall is 700 to 1 TJ00 mm, with
as much as 1 200 to 1 400 mm in the higher mountain areas.

The differing bioclimatic conditions in Romania's territory are reflected in the diversity of the soil
blanket. The types of soil found can be roughly classified as follows:

Area Proportion of total area

1,000 ha %

Chernozems (including meadow chernozems).. 6,132 25.8

Brown soils 8,315 35.8
Alluvial soils 2,106 8.9
Mountain soils 4,363 18.4
Very highly eroded soils 1,085 4.6
Saline soils 311 1.3
Gritty and sandy soils 449 1.9
Marshy soils 75 0.3
Lakes and swamps 716 3.0
Total 23,750 100

The largest areas of valuable chernozems (3.2 million ha) are found in the south of the country,
in the Walachian Plain (51.9%), the Dobruja (46.4%) and the southern Moldavian Plateau
(13.5%).

As far as soil-climate potential is concerned, Romania is regarded as an agricultural surplus

area ¡n eastern Europe.

The table below summarizes data on the natural regions and their agricultural use.

NATURAL REGIONS AND THEIR AGRICULTURAL USE

Natural region Predominant soils Type of terrain Climate Suitability for Land use and stock
agricultural use breeding

1) Eastern Tisa Chernozems Gently undulating Moderate Good to very good Cereals,
Plain locustrine and continental climate commercial crops,
saline soils vegetables,
livestock for
slaughtering

2) West Piedmont Brown forest Hills and foothills Cooler than 1) Not as suitable for Fruit, wine, dairy
podzols arable farming cattle

3) Transylvanien Brown forest soils, Hilly to Harsher and more Suitable for arable Potatoes, slaughter
Plateau brown forest mountainous (rising humid than 2) farming in the river and dairy cattle
podzols to the east) valleys

50
NATURAL REGIONS AND THEIR AGRICULTURAL USE

Natural region Predominant soils Type of terrain Climate Suitability for Land use and stock
agricultural use breeding

4) Geti Uplands North: brown forest Hilly in the uplands, Mediterranean in Suitable for fruit- Cereals,
and West soils and secondary flat in the south; uplands, continental ane! wine-growing commercial crops,
Romanian Plain podzols; centre and narrow valleys in the plain wine, slaughter
(Lesser east: brown forest cattle
Walachia) soils; south:
chernozems

5) Outer Sub- Brown forest soils, Mountainous, wide Moderate Suitable for fruit- Wine and fruit,
carpathians secondary podzols, valleys continental and wine-growing potatoes, dairy
rendzina-type soils cattle

6) Carpathians Brown mountain Mountains, jagged Humid mountain Unsuitable for Potatoes, dairy and
(¡nel. Banat and forest soils, primary climate arable farming slaughter cattle
Bihar mountain meadow (alpine farming)
mountains) soils

7) Great Chernozems, Tableland with Continental Highly suitable for Cereals, wine
Walachian Rain alluvial soils steep incisions arable farming, (vegetables in
and Dobruja especially in Bucharest),
Dobruja slaughter and dairy
cattle

8) Moldavian Chernozems, grey Low ridges Continental Less suitable for Cereals and
Râteau forest soils, brown arable farming potatoes, wine,
forest soils slaughter and dairy
cattle

According to its physical and geographical features, Romania's territory can be divided roughly
into five agricultural production zones: Walachia, Transylvania, Moldavian Plateau, Banat and
Dobruja.

With 43% of all agricultural land, Walachia is by far the most important agricultural area of
Romania. It contains 40% of the land under cereals, about 60% of that under oilseed crops,
40% of the sugar beet area and 30% of the land under potatoes and vegetables, as well as
about 50% of orchards and 40% of vineyards. The predominantly rich chernozems make for
good yields, provided the crops have an adequate supply of water during the frequent summer
droughts.

Agriculture in the Transylvanien region is shaped by the predominantly hilly and mountainous
terrain and the resulting humid and harsh climate. Some 54% of the agricultural area is pasture
and meadow. A further 13% is used for the cultivation of fodder plants. Its natural resources
make the area predestined for dairy and slaughter cattle farming. Only the eastern Tisa Plain
with its gently undulating relief and rich chernozem soils is suitable for arable farming, which
can also be carried out in smaller fields on the Transylvanian Plateau. The main crops are
cereals, potatoes and sugar beet. Viticulture is possible in sheltered areas.

51
In third place as regards its share of the total agricultural area comes the Moldavian Plateau.
Soil conditions vary (grey and brown forest soils in addition to valuable chernozems). As the
rainfall is not evenly spread, the conditions for agriculture are on the whole not so favourable,
although the land is used predominantly for arable farming, the main crops being maize,
sunflowers, potatoes, sugar beet and fodder crops. A third of the country's vineyards are found
in this area.

The best conditions for arable farming are in the Banat region of western Romania. Rich
chernozems and adequate rainfall spread evenly over the seasons make for good harvests.
Two-thirds of the agricultural land in this production zone is used for arable farming and some
23% as pasture land. Roughly 70% of the arable area is under cereals (wheat and maize). The
remainder is shared between fodder crops, soya beans, various types of vegetables and sugar
beet.

The main features of the Dobruja region are good soil properties but long dry periods. Arable
farming is virtually impossible without irrigation, which means that the yields of the most
important crops (maize, wheat, sunflowers) are limited by the irrigation facilities available.

At present, 14.8 million ha or 62% of Romania's total area are used for agricultural purposes,
predominantly arable farming (64%), followed by pasture land (22%), meadows (10%),
orchards and vineyards (2% each).

7.3 LAND USE

1,000 ha

Type of use 1970 1975 1980 1985 1989 1990

Utilizable agricultural area- 14,905 14,946 14,963 15,020 14,759 14,750

Arable land 9,737 9,741 9,834 9,985 9,458 9,500
Permanent crops 775 759 663 637 596 600
Orchards 428 430 347 344 318
Vineyards 347 329 306 293 278
Permanent grassland 4,419 4,447 4,467 4,398 4,705 4,700
Meadows 1,416 1,414 1,423 1,402 1,448
Pasture land 3,003 3,033 3,044 2,996 3,257
Wooded area 6,315 6,549 6,568 6,564 6,327
Fishponds 785 787 796 843 904
Other land 1,720 1,468 1,423 1,323 1,498
Irrigated area 731 1,474 2,301 2,956 3,169 3,100

*) As at the end of the year.

The maintenance, systematic extension and full utilization of agricultural land, especially arable
land, was always a major priority of past Socialist agricultural policy. A broad land base was
regarded as a guarantee of adequate agricultural output and was supposed to at least partly
offset the unsatisfactory pattern of productivity. The basis for action was provided by the 1974
Law on the rational use of land resources. Although some agricultural land was lost, the
utilizable area was increased by a total of 163 000 ha between 1975 and 1988 as a result of the
cultivation of non-agricultural and especially of unproductive land. The area of arable land was
extended by converting grassland, increasing by 367 000 ha between 1975 and 1988.

52
Since 1989 the Romanian statistics show a significant reduction in utilizable agricultural area,
especially of arable land. It will have to be clarified in future whether this is an actual reduction
or whether it is due to the statistical methods used.

Romania's soil and climatic conditions are conducive to the cultivation of a wide range of crops,
from the warmth-loving types such as grain maize, rice, soya beans and vines to the types
specific to the subpolar climate zone such as rye and oats. The stability of the harvest yields is,
however, strongly influenced by the irregularity and unfavourable distribution of rainfall.

In the major cereal-growing areas in the south and east of the country, there are 54 drought
years and 15 years with heavy rainfall in every 100 years. In the latter case there are long-term
water surpluses, especially in the plains. Around 6.4 million ha are affected, which therefore
require drainage. In drought periods some 5 to 7 million ha suffer from an acute lack of
humidity. Even in normal years, however, there is a water deficit of 100 to 400 mm. Irrigation is
thus of great importance even in such agricultural areas as the Danube Valley, the Dobruja,
eastern Moldavia and part of the western Romanian Plain. As a result of the alternation of long
drought periods with quite humid periods it is necessary to make arrangements for the same
land to be both irrigated and drained.

In 1983 Romania adopted a programme of soil and land improvement, providing for 55 to 60%
of the arable land to be made suitable for irrigation by 1989. Drainage schemes were to be
carried out on some 5 million ha. The Romanian statistics for 1989 showed that 3.1 million ha
had been placed under irrigation, including 2.9 million ha of arable land. Drainage schemes
were carried out as a matter of priority on 3.4 million ha in the river valleys (Danube and Tisa).
The ambitious plans had thus been only partly realized. However, even the completed systems
have not been used satisfactorily in recent years. The shortages of diesel fuel and electricity
meant that the pumping stations could be operated only sporadically. The water could not be
brought to the fields at the right time. In periods of exceptional drought special appeals were
made to the population to support agriculture by carrying out manual irrigation. As energy
demand calculations show, the Romanian energy supply industry was hopelessly overtaxed by
the agricultural irrigation and drainage network. If all systems were in operation at the same
time, they would take up all the electricity produced throughout the country.

For the new agricultural structure forms of organization will have to be found that make it
possible to incorporate the existing systems into the production process without delay as a
yield-boosting measure.

Looked at over the long term, Romania has increased its stock of agricultural machinery and
equipment. Nevertheless, it is still well below the western European average and even below
the level of the neighbouring eastern European countries. The corollary of the shortage of the
requisite production technology is its high degree of wear. Since under the austere policy to
clear foreign exchange debts in the last years of the Ceausescu government deliveries of
means of production to agriculture suffered further cuts, this inevitably resulted in a reduction in
the stock of machinery. There was a fall (quite appreciable in some cases) in numbers of the
entire range of important agricultural machinery and equipment in the second half of the 1980s.
Compared with 1985, the number of tractors had fallen by 32,700 in 1989, that of green fodder
harvesting machines by 9,100, spraying and dusting appliances by 8,800 and combine
harvesters by 4,300. By the end of 1990 the number of tractors had fallen by a further 24,600
and the number of self-propelled and towed combine harvesters by 24,300.

On average throughout the country in 1990 there were 13 tractors for every 1,000 ha of arable
land, 8 combine harvesters for every 1,000 ha of land under cereals and 3 straw balers for
every 1,000 ha of land under straw. The shortage of spare parts and difficulties in getting
repairs done by the mechanization units meant only part of the available technology was ready

53
for use at any one time. Especially in years with good yields, there were therefore considerable
problems with the harvest and with transporting the crops harvested. In some cases, horses
and carts were used once again.

The demand for agricultural machinery has leapt with the privatization of the agricultural sector.
The prime requirement if for equipment and machinery for small farms with a utilizable area of
up to 10 ha. Being geared to the size of farms in a Socialist agriculture, the Romanian tractor
and agricultural machinery industry is unable to meet this demand at present.

7.4 AGRICULTURAL MACHINERY*)

1,000

Type of machinery 1970 1975 1980 1985 1989 1990

Tractors 107.3 119.5 146.6 184.4 151.7 127.1

Combine harvesters (self-propelled)... 1.3 17.9 35.2 49.1 44.8 41.9
Maize harvesters 3.8 14.4 17.2
Silage harvesters 7.1 9.4 16.9 20.8 11.7
Straw balers 17.5 18.4 2Z1 222.3 23.3
Tractor ploughs 97.2 96.6 103.1 120.4 83.3
Drilling machines 54.5 46.5 49.0 50.4 43.6
Spraying and dusting appliances 10.7 16.7 23.0 29.6 20.8

As at the end of the year.

Although official reports spoke of the changeover to industrial production methods in the
livestock sector as long as the end of the 1970s, the level of technology in this sector is even
more rudimentary than in the crop sector. While progress has been made in the mechanization
of milking, there is generally still a high proportion of heavy physical labour in livestock farming.
Apparently there were considerable problems in years gone by with the industrial livestock
complexes. Speeches and documents by political leaders called increasingly frequently for
ineffective and expensive technologies to be replaced by simpler and more efficient methods.

In addition to the unsatisafctory degree of mechanization, the scant use of mineral fertilizers is
one of the factors hampering the improvement of yields per hectare in Romanian agriculture.
Consumption of commercial fertilizers has been stagnating ever since the mid-1970s. In the
case of nitrogen fertilizers the high export quotas meant that supply could not match demand.
Only about 50% of the mineral fertilizer produced in the country was available to domestic
agriculture. In the case of potash fertilizers the policy of minimizing imports prevented higher
consumption. At the Farmers' Congress in 1986 the shortfall was made part of the programme.
Farms were urged to use mineral fertilizers only if the available organic sources were
exhausted.

In 1989, for every 100 ha of utilizable agricultural area a total of 78.5 kg of pure nutrients were
used, comprising 45.1 kg of nitrogen, 22.3 kg of phosphate and 11.1 kg of potash. In 1990, the
agriculture sector received a total of 1.2 million t of pure nutrients of chemical origin. As the
utilizable area had decreased, that worked out at an average of 81.4 kg per hectare.

54
7.5 CONSUMPTION OF COMMERCIAL FERTILIZERS
1,000 t of pure nutrient

Type of fertilizer 1970 1975 1980 1985 1989 1990

Total 594.3 928.7 1,113.5 1,199 1,159 1,200

nitrogen 366.9 571.8 646.3 675 665
phosphate. 203.2 314.4 389.4 342 329
potash 24.2 4Z5 77.8 182 164

The obvious backwardness in the level of development of Romanian agriculture and the
increasing disparities in the social tissue prompted reflection on a change of direction in
agricultural policy as long ago as the beginning of the 1980s. At the Second Agricultural
Congress in February 1981 the party and state leaders expressed their readiness to abandon
the prevailing thesis of the priority development of industry. In its place a new agricultural
revolution was to begin from that time on. The main concern was to modernize agriculture on
the basis of the latest scientific and technological achievements, to increase yields and output
and to harmonize rural working and living conditions with those in the towns.

There was a proliferation of special programmes with such aims as increasing the production of
cereals, vegetables, fruit and wine grapes, developing an adequate fodder base that met the
quality requirements, and boosting production in the individual branches of livestock farming.
Ambitious targets were set. For example, the total production of the agricultural sector was to
increase by 4 to 5% a year between 1981 and 1985 and by 6 to 7% a year between 1986 and
1990. The planned harvests for 1990 were in some cases twice as high as average production
between 1976 and 1980. The target figures were 32.5 million t for cereals, 8.5 million t for
potatoes, 1.4 million t for sunflowers, 11.0 million t for open-field vegetables, 3.2 million t for
fruit and 2.4 million t for wine grapes. Substantial increases were planned for livestock numbers
in the Socialist sector, e.g. to 170% for cattle, 160% for pigs and 200% for sheep and goats.

In actual fact this agricultural revolution never took place. Given the generally worsening
economic situation, there was little scope for such rapid development of agriculture. On the
contrary, as a result of the lack of investment and practically of all necessary means of
production, the objective production conditions for this sector of the economy deteriorated
visibly. Moreover, the Government brought in a whole series of laws that heavily regulated the
off-farm activities of cooperatives' members, created a feeling of great uncertainty among the
rural population and inhibited their sense of initiative.

At the beginning of 1991 Romania officially admitted that the earlier publications on the
development of agriculture in recent years contained incorrect figures for production and
growth. Spectacular production figures of 60 million t were published for cereals in 1989,
whereas the corrected results gave a figure of 18.4 million t. There were even greater
discrepancies for other products such as sugar beet, potatoes, rice and fruit, where the actual
yields per hectare were only between 10 and 60% of the quantities shown as record harvests.
The data on available nutritional energy had also been embellished. There were not 3,200 kcal
but a maximum of 2,000 kcal available for average daily per capita consumption.

The agricultural production index for the 1980s shows a fairly moderate increase on the whole,
although there were some sizable fluctuations. As the population grew more quickly, per capita
production did not keep pace with total production.

55
7.6 INDEX OF AGRICULTURAL PRODUCTION
1979/81 A = 100

Type of index 1985 1987 1988 1989 1990

Total production 109 109 113 110 113
per capita 105 109 105 107
Foodstuffs production., 109 109 113 110 112
per capita 105 109 105 107

Crop production traditionally accounts for the major proportion of total agricultural production.
The figures for 1 9 9 0 w e r e 5 3 % for crop production a n d 4 7 % for animal production.

The production of cereals is o n e of the pillars of Romanian agriculture. For m a n y years now,
some two-thirds of t h e arable land has been given over to cereals. In order to be able to meet
d e m a n d from o w n resources, Romanian economists reckon that 20 to 2 2 million t would have
to be harvested e a c h year. T h e results for the last f e w years were, however, below this target.
T h e average production for 1988/90 w a s 18.3 million t, some 1.5 million t less than at the
beginning of the 1980s.

Compared with t h e pre-war period, the area under cereals has declined by around 2 million ha.
This long-term decline affected more or less all types of cereals with the exception of barley,
cultivation of which dipped to its lowest point in the 1960s a n d '70s but is n o w m o r e extensive
than in 1938.

T h e traditionally most important types of cereals are maize a n d wheat (as t h e Romanian
statistics always s h o w wheat together with rye, all data on wheat always to both types of crop).
With an area under cultivation that in recent years has fluctuated between 3.1 a n d 2.6 million
ha, maize accounts for between 49 and 4 4 % of cereal-growing land. R o m a n i a is thus at present
the biggest maize-grower in Europe. In the last five years wheat a n d rye were grown on an
area of 2.4 million h a , representing 41 % of the total. T h e most important maize-growing areas
are in the Walachian Plain a n d in Dobruja along the Danube, where it is rotated with wheat.
Another important area is in the Banat region.

In the second half of t h e 1980s the area under barley w a s between 680,000 a n d 770,000 ha. In
1989 oats were g r o w n o n 106,000 ha and rice on 49,000 ha.

Cereal yields per hectare are characterized by substantial fluctuations at an overall

unsatisfactory level. R o m a n i a is still counted as one of the low-yield countries of Europe. With
25.6 dt in 1988, 24.1 dt in 1989 a n d 27.6 dt in 1990, the yields of maize were at roughly the
same level as in t h e early 1970s and up to 11.6 dt below the average level for 1 9 7 9 / 8 1 . For
wheat the average yield per hectare for 1988/90 w a s 8.6 dt higher than in t h e base period
1979/81. Although t h e figure of 33.9 dt means that compared with other years record yields
were achieved, at least another 12 dt are needed to bring it up to western European standards.
For barley an a v e r a g e yield of 39.7 dt was achieved for 1988/90, although t h e fluctuation
margin of 2 1 % shows that the yield factors were not sufficiently controlled. T h e main causes of
the problems with cereal yields were shortcomings in cultivating a n d tending t h e crops a n d , in
particular, the inadequate supply of good-quality seed.

Potatoes are grown n o w a d a y s on a relatively large area of around 350,000 h a , or 3 . 6 % of total

arable l a n d - B e t w e e n 1988 a n d 1990 the average yield per hectare w a s 119 dt, 2 0 % lower than
in 1979/81. Owing to a n u m b e r of discrepancies, there are no data for 1987 for t h e time being.

56
Over the years the area under technical crops has increased to 16% of all arable land. These
crops include soya beans, sunflowers, sugar beet, fibre plants and tobacco. With the
development of new varieties suited to the moderate climatic conditions, the cultivation of soya
has become more important and has ousted sunflowers from their customary top spot. In both
cases, however, the harvests have remained below their former level, especially for soya
beans. Once again, there are no usable data for 1987. The area under sugar beet increased to
its present level around the mid-1970s. In good years the yields per hectare were about half the
average west European level. Average yields for the period 1988/90 were 220 dt per hectare.
They fluctuated by as much as 30%. The main reasons for this situation were non-observance
of sowing deadlines, shortage of labour for tending the crops and poor-quality seeds. The area
under fibre plants increased steadily from 1970 onwards, reaching a peak of 123,000 ha in
1985. In 1989 it was 116,000 ha. Although until well into the 1950s the emphasis was on the
production of hemp, the pattern then changed with the cutback in hemp-growing and the
increase of the area under flax. No progress was made with yields, however. In the case of flax
they fluctuated around 16 dt per hectare, compared with 33 dt for hemp. As a result of falling
productivity there was a decline in the production of hops compared with 1979/81. With a
smaller area and a higher yield, production of tobacco remained at 31,0001 a year.

With the intention of increasing exports of various types of vegetables and making use of its
natural advantages of location over its eastern economic partners, Romania considerably
stepped up its open-air cultivation of vegetables. Between 1965 and 1986, when it reached its
peak, the area under vegetables increased by almost 100,000 ha to 279,000 ha. Between 1987
and 1989 it fell back by 26,000 ha. This effort was concentrated on tomatoes, cucumbers and
peppers. Compared with 1965, production of tomatoes had quadrupled and that of peppers
increased 3.7 times in 1989. The growing of cucumbers did not come into prominence until this
period. Total production of vegetables averaged 3.9 million t in 1988/89, but in 1990 it fell to just
63% of the 1989 figure at 2.4 million t. Some 30% of vegetable production comes from private
farms and the kitchen gardens of cooperative farmers.

Romania produces medicinal and aromatic plants on an area of 40,000 to 41,000 ha.

One of the perennial problems of the Socialist agricultural sector was to match fodder demand
and supply for all types of animals. Coarse fodder crops are an important and essential part of
the diet of cattle and sheep. Following a decline in the 1970s, the area under fodder crops has
increased again in the last few years. In 1989 it stood at 1.1 million ha. The first regulations of
the new political leadership on the extension of individual land ownership, the abolition of trade
restrictions for animal products from the individual sector and the general concern about even
greater fodder shortages led in 1990 to a further increase in the arable area under fodder crops
to around 2 million ha. The most important of these crops are lucerne, silo maize, clover and
annual and perennial grasses. Root fodder crops are grown on only about 80,000 ha. The 4.7
million or so ha of natural grassland are also available as coarse fodder land.

Romania has extremely favourable conditions for fruit and wine growing, both of which have,
however, been cut back over the last 20 years. In 1989, 318,000 ha of orchards were recorded
statistically. The most important types of fruit in terms of quantity are apples and plums, with
annual production of 700,000 to 800,000 t in each case. The harvest figures for peaches
fluctuate quite appreciably depending on weather conditions. In 1988/89, 85,000 t of peaches
were harvested. A significant quantity of walnuts is also produced, amounting to 46,000 t in
1988/89. In 1989 there were 213,000 ha of vineyards in production. This was 46,000 ha less
than the 1980 figure and the 1989 harvest was down by 322,0001 at 915,0001.

Whereas in the fruit sector almost 50% of total production was accounted for by private
farmers, the major proportion of wine production came from the state holdings and agricultural
cooperatives.

57
7.7 HARVEST VOLUMES FOR SELECTED CROPS
1,000 t

Product 1979/81 A 1987 1988 1989 1990

Cereals 19,798 18,624 19,286 18,379 17,174

of which:
wheat 5,471 6,000 8,575 7,880 7,379
barley 2,360 1,800 3,000 3,436 2,680
grain maize.. 11,823 10,500 7,170 6,750 6,801
Potatoes 4,381 3,621 3,892 a) 2,831 a)
Sugar beet 5,704 7,149 4,869 6,771 3,278
Hops 540 300 300 300
Tobacco 35 27 32 31 31
Sunflowers 838 580 659 556
Soyabeans 366 295 303 141
Beans (dried).. 99 248 225 244 258
Peas 17 174 100 100 100
Cabbages 855 1,400 1,300 1,200
Tomatoes 1,515 2,420 2,300 2,000 2,350
Cucumbers 284 532 500 486
Peppers 224 400 415 400 -
Onions (dried). 302 470 435 420 435
Melons 140 400 400 350
Apples 511 716 800 780 800
Peaches 60 49 86 82
Plums 615 727 800 765
Walnuts 38 37 47 45
Wine grapes.... 1,237 b» 969 1,196 915

a) Main-crop potatoes.
b) 1980.

7.8 YIELDS FOR SELECTED CROPS

dt/ha

Product 1979/81 A 1987 1988 1989 1990

Wheat 25.3 25.0 35.7 34.0 3Z1

Barley 28.3 32.1 39.0 44.3 35.8
Grain maize- 35.7 36.7 25.6 24.1 27.6
Potatoes 150 109 132 a» 115 *>
Sugar beet... 221 269 196 265 202
Hops 6.0 4.3 4.3 4.3
Tobacco 8.2 7.7 9.4 9.1 9.1
Sunflowers... 16.4 12.6 16.3 14.1

For footnotes, please see end of Table.

58
7.8 YIELDS FOR SELECTED CROPS
dt/ha

Product 1979/81 A 1987 1988 1989 1990

Soya beans.... 11.2 7.1 5.9 7.4

Beans (dried). 2.3 4.1 3.8 3.0 4.0
Peas (dried)... 10.5 21.3 19.8 18.8
Cabbages 322 700 650 600
Tomatoes 202 327 307 239 309
Cucumbers.... 101 177 161 157
Peppers 106 160 160 148
Onions 84 147 136 131 136
Melons 108 235 222 194
Wine 49.1 46.3 35.6 41.7

a) Main-crop potatoes.
b) 1980.

The smaller harvests of most crops in 1990 are attributable partly to the unfavourable weather
conditions during the growth period and partly to the effects of the difficulties caused by the new
order in the country. The wholesale destruction of production potential and the serious delays
and neglect in working the soil, seeding, tending and harvesting as a result of the uncertain
legal situation and the shortages of diesel fuel, seeds, fertilizers and pesticides had an adverse
effect on the volume of production in 1990.

The measures adopted by the Government in November 1991 to supply agriculture with the
essential means of production and to set up special commissions for stepping up and
monitoring progress in agriculture came too late for the proper performance of the autumn work
in the 1991/92 farm year. Lower yields are therefore to be expected in the 1992 crop year.

The programmes adopted during the Ceausescu era to develop animal production did not have
the desired effect. The main feature of livestock farming in the previous years had been a
steady decline in the temporarily increased numbers of animals in the state-run and
cooperative holdings. The following problems were at the root of this decline: the inadequate
supply of concentrated feed for moncgastrids (non-ruminants), the insufficiently large forage
area for ruminants, excessive losses of calves and pigs as a result of poor tending, and the lack
of suitable stabling. In the revolutionary mood of 1989 the unstable tendencies in Socialist
livestock farming became even more pronounced. According to press reports, livestock
numbers in the cooperatives in particular were decimated by deliberate starvation, senseless
slaughtering and burning of animals. The element of security in Romanian stockfarming had
always been the relatively high proportion of privately kept animals.

In view of the difficulties in the cooperative sector, the Communist government eased the
restrictive regulations on the keeping of animals by households and private farms. An appeal
was made to the people to keep more breeding and draught animals and to make full use of the
available land for agricultural production. At the end of 1989, 33% of all cattle (including 45% of
cows), 29% of pigs and 47% of sheep were kept by private farms and the holdings of the
cooperative farmers. Figures on changes in total livestock numbers and production trends had
not been available for many years. The statistical surveys now accessible show that at the end
of the 1980s the country's stock of all the major types of draught animals was declining. In the
case of cattle and sheep, numbers had fallen below the 1979/81 level.

59
7.9 LIVESTOCK POPULATION*)

Type of livestock Unit 1979/81 A 1987 1988 1989 1990 1991

Cattle 1,000 6,047 6,703 6,559 6,416 6,291 5,381

cows 1,000 2,080 2,821 2,727 2,758 2,468
Buffaloes 1,000 228 208 210 210 212
Pigs 1,000 10,926 14,095 14,328 14,351 11,671 12,003
Horses 1,000 564 686 693 702 663
Sheep 1,000 15,766 17,219 16,839 16,210 15,435 14,062
Goats 1,000 378 904 990 1,078 1,017
Poultry Mill. 89 125 127 128 114

*) As at the beginning of the year.

Compared with 1979/81, production of livestock for slaughter (cattle, pigs, sheep and goats)
was well down in 1988/90. Altogether, 1.6 million fewer animals were slaughtered, including
983,000 pigs and 530,000 cattle.

7.10 SLAUGHTERINGS
1,000

Type of animal slaughtered 1979/81 A 1987 1988 1989 1990

Cattle and buffaloes 2,020 1,520 1,510 1,527 1,490

Pigs 12,436 11,539 10,769 11,794 11,795
Sheep 4,459 3,880 4,118 4,118 ) 4,768
Goats 303 508 547 620 }

The shortfall in the supply of feed and the unfavourable composition of the herds in terms of
breeds had a negative effect on the slaughtering weights of the animals and caused
considerable meat shortages. Even the 1980s saw no progress in this respect. The quantity of
meat produced per animal was about 160 kg for cattle and buffaloes and 78 kg for pigs.

On average over the period 1988/90 meat production was 191,000 t down on 1979/81. The
decrease was 92,0001 for pigmeat, 69,0001 for beef and veal (including buffalo meat), 26,0001
for poultrymeat and 5,0001 for sheep and goat meat.

Looked at over the longer term, structural changes in meat supply attributable to changes in the
structure of the livestock population become apparent. Between 1970 and 1988/90, the
proportions changed from 33 to 15% for beef and buffalo meat, from 45 to 56% for pigmeat,
from 11 to 25% for poultrymeat and from 11 to 4% for sheep and goat meat.

Until 1989 more than half the total quantity of meat was produced on private farms and one-
man holdings, the figures for the different types of meat being 45% for beef, 50% for pigmeat,
66% for sheep and goat meat and 62% for poultrymeat. Comparing the relative proportions of
production and stock numbers, it is clear that in some cases considerably higher productivity
was achieved in the private sector than in the state farms and cooperatives.

60
In Romania ewe's milk ¡ε produced in relatively large quantities in addition to cow's and
buffalo's milk. The dairy industry was one of the branches of agricultural production that were
able to achieve some growth even in the last ten years. Between 1979/81 and 1988/90 the
production of cow's milk increased by 10% and that of ewe's milk by 31%. In 1989 national
average milk production per cow was 1,892 litres, roughly the same level as for the previous
ten years or more. There is a huge difference between individual holdings and the various
forms of ownership. On some state farms, for example, annual milk production is reported to
have been as high as 5,800 litres per cow. The state farms as a whole had an average
production of 2,791 litres per cow in 1989, i.e. one and a half times the national average. The
private sector achieved yields of 1,969 litres per cow. The lowest figure was for the
cooperatives, at 1,511 litres.

For eggs, wool and honey, production during the period 1988/90 was respectively 17%, 29%
and 21% higher than in 1979/81. The inadequate supply of feed and both veterinary and to an
increasing extent labour problems led to a decline in laying yields in the major production
centres from 209 eggs per hen in 1980 to 155 eggs per hen in 1989. In the private sector,
where poultryfarming is mostly practised with traditional, more robust breeds, in smaller
concentrations and usually free-range, the yield parameters are automatically lower than in the
case of intensive farming. The impossibility of buying-in concentrated feed was reflected here
too, however, in a decline in laying yields. Compared with 1980 the average yield fell by 11
eggs to 130 eggs per hen.

In 1989 the highest wool yield per sheep was achieved in the state sector with 3.10 kg. In the
domestic and private sector it amounted to 2.43 kg. With a figure of 2.16 kg per sheep the
cooperatives were once again below the national average.

In order to ease the supply situation for feed and to stem a further decline in livestock farming
with its lasting consequences, substantial quantities of fodder were imported in 1990, including
611,000 t of maize, 411,000 t of soya-bean meal, 25,000 t of oats and 29,000 t of fish meal.
The improved supply situation resulted in increases in yields, albeit of fairly modest proportions
for the individual products. Compared with 1989, the national average milk yield for cows and
buffaloes went up by 171 litres to 2,063 litres, the egg yield to 163 eggs, and slaughter weights
by 34 kg for cattle, 28 kg for pigs and 3 kg for sheep.

Average production per head of population in 1988/90 was 789 kg of cereals, 149 kg of
potatoes, 215 kg of sugar beet, 133 kg of vegetables, 65 kg of fruit, 46 kg of grapes, 68 kg of
meat, 186 litres of milk and about 300 eggs.

7.11 P RODUCTION OF SELECTED ANIMAL P RODUCTS

1,000t

Product 1979/81 A 1987 1988 1989 1990

Meat 1,768 1,645 1,537 1,571 1,624

beef and buffato meat., 309 250 240 243 240
pigmeat 970 900 840 875 920
sheep and goat meat.., 76 70 67 73 74
poultrymeat 413 425 390 380 390
Cow's milk 4,038 4,275 4300 4,350 4,250
Ewe's milk 347 455 460 462 446

61
7.11 PRODUCTION OF SELECTED ANIMAL PRODUCTS
1,000 t

Product 1979/81 A 1987 1988 1989 1990

Hen's eggs. 331 431 400 380 380

Wool, pure- 22 26 28 28 29
Honey 14 15 17 17 17

On top of the unsatisfactory production figures and low level of efficiency, agriculture is
responsible for important environmental problems, attributable partly to the special features of
the organization of production (large production units, high degree of concentration and
specialization) and partly to the improper and in some cases excessive use of production-
boosting agents.

The inadequate storage capacities in the industrial livestock complexes, state-owned farms and
inter-cooperative establishments have so far hampered the development of the environment-
friendly use of liquid manure. Instead of being used, animal excrement has been disposed of,
resulting in contamination of the soil and surface and ground water in the plants' catchment
area.

Although mineral fertilizers and pesticides were available only in relatively small quantities
nationwide, the pollution of the soil and water with nitrates and other residues from the crop
production process is, according to Romanian experts, a serious problem. The development of
the crop protection forecasting and warning system is intended to help limit the uptake of
pollutants.

As expressly stated by soil improvement specialists at a symposium in December 1991, the

extensive irrigation projects of the past have not had solely positive effects. As a result of
irrigation, the erosion of humus in the soil has speeded up. The soil is becoming visibly
impoverished and is deteriorating. The intensively irrigated areas are becoming oversalted,
marshy, encrusted and eroded. Also ecologically controversial are the large-scale drainage
schemes in the Danube Plain that have led to radical changes in the landscape. The initially
high yields on the reclaimed land have declined considerably in the meantime.

Romania's surface topology calls for special care in setting out fields if extensive soil erosion is
to be prevented. Altogether, an area of 5.3 million ha is regarded as being under threat of
erosion. Experts estimate that each year 160 million t of fertile earth are lost through being
washed away because the fields are too large for the terrain and for many years serious agro-
technical shortcomings were tolerated. In the last few years efforts have been stepped up to
protect particularly endangered areas by establishing protective strips of woodland.

Until around the end of the last century, when almost 40% of Romania's territory was still
covered with woodland, Romania was regarded as one of the most wooded areas in Europe.
Indiscriminate felling far in excess of natural regeneration capacity led to a reduction of the
wooded area, especially in the inter-war and post-war periods.

In terms of wooded area as a proportion of the country's total area, Romania is nowadays in a
mid-table position in Europe with a figure of around 27%. Woods cover a total of 6,252
million ha (98% of the wooded area), comprising 4,323 million ha of deciduous trees and 1,929
million ha of conifers. In addition, 83,000 ha are covered with plantations for protection against

62
erosion etc. and 34,000 ha are other land. With their very extensive beech, fir and oak forests,
the Carpathians constitute the main forestry area.

7.12 AFFORESTATION
ha

Survey item 1970 1975 1980 1985 1989 1990

Total 61,239 86,636 62,241 52,850

Plantings 49,946 67,228 49,030 41,994 41,297 35,200
Replantings.. 10,786 17,803 11,987 10,470
Sowing 507 1,605 1,224 386 112 '.

Once it had completed compensatory deliveries to the Soviet Union, Romania resumed timber
exports for its own account, and these played and still play an important part in the trade
balance.

Although the quantity of timber extracted fluctuated between 20 and 23 million m3 in the 1960s,
in recent years it settled down at just over or under 20 million m3. The proportion of commercial
timber in the total quantity extracted increased over the years.

The excessive utilization of forest stocks and inadequate rejuvenation measures not only
brought about a reduction of the wooded area but also caused annual yields per hectare to fall
below their natural potential. In view of the clear signs of lasting damage to woodland, a long-
term programme to conserve and extend the forests was adopted in 1976. It included increased
efforts to extend the wooded area through afforestation of wasteland and other land that could
not be used for agriculture. In addition, the rejuvenation of the high forest was to be reduced by
complete deforestation and annual removals limited to 20 million cubic metres. This programme
too did not do much to help conserve forestry resources in the long term. Until the mid-1980s
its provisions regarding the limitation of removals were not heeded. It was not until recently that
there was an appreciable decline in removals. If anything, the scale of annual plantings has
become smaller. Whereas in 1975 about 86,000 ha were reafforested, the figure fell to
62,000 ha in 1980 and around 35,000 ha in 1990.

7.13 TIMBER EXTRACTION

Mill, m3

Survey item 1970 1980 1985 1988 1989 1990

Total _ 21.075 18.282 23.004 19.884 19.307 16.300

Commercial timber 15.680 14.240 18.435 15.794 16.517 13400
Firewood and wood for charcoal 5.395 4.042 4.569 4.090 2.790 2.900

By international standards Romania's fishing industry is quite modest. Although the deep-sea
fishing fleet has grown in the last 20 years, it had only 52 trawlers and other fishing vessels of
up to 4,000 grt in 1989, with a total tonnage of 139,500 grt. There are also a few factory ships

63
and parent vessels. In addition to the Black Sea the main fishing areas are the north-west
Atlantic, the eastern mid-Atlantic, the south-east Atlantic and the north-east Atlantic. In 1986
catches of sea fish reached a temporary peak of 204,100 t, but fell back to 196,100 t in 1987
and 190,0001 in 1988.

Inland fishing extended its production area, especially after 1980. New fish ponds were set up
on an area of 108,000 ha, bringing the total to 904,000 ha. The catches from pond and river
fishing leapt by 37% between 1980 and 1988/90 from 53,1001 to 72,2001.

7.14 FISHING VESSELS

Survey item Unit 1970 1975 1980 1985 1990

Vessels Number 8 26 40 50 52
Tonnage... 1,000 grt 23 69.2 120.8 131.6 139.5

7.15 CATCHES
1,000t

Type of catch 1985 1986 1987 1988 1989 1990

Total 232.1 271.1 264.4 267.6

Freshwater fish 54.6 64.9 65.9 76.0 78.5 63.5
Brackish water fish 2.0 2.0 2.4 1.7
Sea fish 175.6 204.1 196.1 190.0

64
8 PRODUCTION INDUSTRIES

After the Second World War Romania's economy initially developed in more or less the same
way as that of the other countries with a centrally planned economy. Almost all means of
production passed into state ownership or were placed under state control. Responsibility for
state planning was vested in the State Planning Committee, which set the targets in
accordance with the directives of the Communist Party. Execution of the plan was the task of
the Government through the various sectoral ministries. The strictly regulated prices played no
part in the allocation of means of production.

In the following decades there were repeated attempts to reform the system and in particular to
introduce elements of decentralization. At the end of the 1960s a new administrative level
between sectoral ministries and industrial firms was created: the "central offices for industry",
which were supposed to draw up differentiated plans for firms in the same sector in a particular
region. With the help of a series of bonuses or reductions attempts were made to link workers'
incomes to the relevant degree of plan fulfilment. There were also tentative efforts to make the
price system effective, but until the revolution in 1989 the basic features of the central state
planning system remained unchanged.

In previous decades the preferential treatment of heavy industry, the concentration on large
prestige projects, the industrial policy aimed at a large measure of independence from foreign
countries and the accelerated reduction of foreign debts all led to fundamental mismanagement
of the overall economy and especially of production industries.

While light industry was neglected, even in the early 1950s some nine-tenths of all industrial
investment went to heavy industry, especially to huge combines in the metalworking and
chemical industries. However, many large combines apparently often utilized only half or
slightly more than half of their capacity, the main reasons being sales difficulties or shortages of
energy or raw materials. Shrinking oil production contrasted starkly with vast over-capacity in
the petrochemical industry. Even the mechanical engineering and car and tractor
manufacturing sectors were far too big in relation to the low sales potential. Romanian industry
as a whole has been repeatedly hampered by the permanent energy shortage, since the
energy production targets were frequently not met.

The import-avoidance policy associated with the rigorous reduction of foreign debts had serious
effects on the efficiency and competitiveness of production on account of the concomitant
obsolescence of production plant and technology. The technology gap with western industries
is estimated by experts at a minimum of two decades on average. The consequence is an
excessive consumption of raw materials and energy per production unit. After the 1989
revolution, measures designed to thoroughly overhaul the structure of industry were introduced.
The former sectoral ministries were dissolved. The newly created Ministry for Raw Materials
and Industry was given the responsibilities of the former twelve industrial ministries. The more
than 100 central offices for industry were dissolved in October 1990 or converted into state-
controlled industrial enterprises or limited companies.

Table 8.1 shows the trends in the number of industrial enterprises (excluding private craft and
small firms) and their work force between 1975 and 1989. Nine-tenths of those employed in this
sector in 1989 belonged to state-run firms, and more than 95% of this number were
subordinate to central government. In this period the average size of enterprises increased still
further from 1,550 employees (1975) to around 1,750 employees (1989).

65
8.1 ENTERPRISES AND EMPLOYEES IN INDUSTRY*)

1975 1980 1985 1989 1975 1980 1985 1989

Survey item Enterprises1' Employees2*

Number 1,000

Total _ 1,731 1,752 1,913 2,102 2,691 3,198 3,504 3,690

State-owned enterprises 1,375 1,334 1,456 1,541 2,453 2,897 3,181 3,326
subordinate to central government. 1,276 1,321 1,418 1,474 2,191 2,881 3,125 3,246
subordinate to regional authorities.. 99 13 38 67 262 16 56 80
Cooperatives 356 418 457 561 238 302 323 364

*) Excluding private craft and small enterprises.

1) As at the end of the year.
2) Annual average.

Between 1975 and 1989 the number of industrial enterprises with up to 200 employees
fluctuated quite a bit but fell by 19%. In all the bigger size classes, however, the number of
enterprises increased. The largest percentage increase was recorded by the number of large
enterprises with 5 000 or more employees, which rose by 140% to 144 enterprises.

8.2 INDUSTRIAL ENTERPRISES BY SIZE CLASS*)

1975 1980 1985 1989 1975 1980 1985 1989

Size class... to... employees Total of which: subordinate to

central government

Total 1,731 1,752 1,913 2,102 1,276 1,321 1,418 1,474

up to 200.... 174 149 97 141 146 129 85 88
201- 500.... 357 342 337 395 212 173 183 202
501-1,000.... 415 403 443 491 281 235 249 245
1,001-2,000.... 424 408 466 471 327 347 360 365
2,001-3,000 182 202 244 263 157 191 218 237
3,001-5,000 119 149 190 197 103 147 187 193
5,001 and over. 60 99 136 144 50 99 136 144

*) Excluding private craft and small enterprises. As at the end of the year.

In addition to the production cooperatives, craft cooperatives sprang up in Socialist Romania as

amalgamations of craft enterprises. The number of craft cooperatives was estimated at 409 in
1970, with a total of 195,000 members. In the next two decades the number of members
increased steadily to reach 380,000 in 1989, a rise of 95% compared with 1970.

66
8.3 CRAFT COOPERATIVES AND SERVICE ENTERPRISES*)

Survey item Unit 1970 1975 1980 1985 1989

Cooperatives Number 409 395 442 490 541

Members 1,000 195.2 279.0 337.2 365.8 379.8

Service enterprises Number 12,399 13,200 14,725 17,010 17,644

Employees 1,000 10Z0 121.4 138.2 143.3 147.1

*) As at the end of the year.

In industry t h e n u m b e r of e m p l o y e e s increased by 8 4 % b e t w e e n 1970 a n d 1989 t o a r o u n d 3.8

million. Even in 1 9 7 0 , m o r e t h a n a quarter of t h e s e were a c c o u n t e d for b y t h e m e c h a n i c a l
engineering a n d m e t a l w o r k i n g g r o u p of industries. T h e n u m b e r of e m p l o y e e s in this subsector
subsequently i n c r e a s e d o n e and a half times to stand at 3 7 % of t h e total industrial w o r k f o r c e .

8.4 EMPLOYEES BY GROUP OF INDUSTRIES*)

1,000

Group of industries 1970 1975 1980 1985 1989

Total 2,066.0 2,802.1 3,329.2 3,583,7 3,799.4

of which:
Production of electricity and heat 39.0 41.9 44.4 52.4 57.3
Coal mining, oil and gas production 96.9 101.5 124.5 138.6 177.7
Food industry 175.8 215.0 228.0 223.4 230.3
Textile industry 22Z7 317.1 386.5 411.8 41Z4
Clothing industry 118.9 179.6 203.0 223.8 247.3
Leather, fur and footwear industry 84.6 102.7 119.9 134.1 134.4
Woodworking 29Z3 313.5 314.9 323.8 343.1
Paper and pulp industry 28.9 35.1 37.5 41.5 4Z9
Printing and reproduction 20.9 19.8 19.9 19.4 18.7
Chemical industry 134.8 191.8 224.5 254.0 267.6 a)
Glass, porcelain and ceramics industry 28.6 4Z7 56.3 61.0 6Z6
Building materials 109.7 121.5 130.9 106.7 125.2
Iron-producing industry1' 80.1 96.6 130.7 145.7 147.4
Non-ferrous metals industry1' 61.1 73.7 79.3 87.7 88.9
Mechanical engineering and metalworking., 546.4 91Z2 1,186.0 1,314.4 1,389.0

') Annual average.

I) Including ore extraction.
a) Including petroleum processing.

According to d a t a f r o m t h e R o m a n i a n statistical office, industrial production i n c r e a s e d by 1 3 %

between 1985 a n d 1 9 8 8 before falling back by 2 % in 1989. More recent d a t a s u g g e s t , h o w e v e r ,
that production fell by 1 0 % in 1989. T h e fall was put at about 2 0 % in 1 9 9 0 , while in t h e first ten
months of 1991 p r o d u c t i o n w a s 1 8 % d o w n on the corresponding period of 1990.

67
The cause of this downward trend was the shortfall in the supply of raw materials, intermediate
goods, energy, machinery and spare parts to enterprises. The energy shortage meant that a
good many firms were closed down for weeks in winter. Strikes too were a contributory factor in
the production cutbacks made by a whole series of enterprises. The reorganization of industrial
structures introduced after the revolution also had an adverse effect on production, as did the
low morale of workers. Romanian industry lost a lot of orders to foreign tenderers because of
failure to meet delivery deadlines (in many cases because of power cuts), poor quality and the
stopping of subsidies.

8.5 INDEX OF INDUSTRIAL PRODUCTION

1980 = 100

Type of index 1985 1986 1987 1988 1989

Total 120 129 132 136 133

Production of intermediate goods 120 130 132 136 131
Production of consumer goods 120 126 132 137 140
of which:
Production of electricity and heat 115 125 126 135 133
Coal mining 113 122 132 147 151
Food industry 108 112 121 121 121
Textile industry 114 121 123 126 125
Clothing industry 145 156 155 165 170
Leather, fur and footwear industry 132 141 142 141 146
Woodworking 116 119 119 124 126
Chemical industry 120 130 125 129 125
Building materials 108 121 126 131 133
Iron-producing industry1' 117 126 121 124 120
Non-ferrous metals industry1' 101 108 110 106 103
Mechanical engineering and metalworking.. 131 141 146 152 142

1) Including ore extraction.

Romania was one of the first countries to produce oil on a large scale. Between the two World
Wars it became the sixth-biggest oil producer in the world. From the 1880s to 1959 it was an
oil-exporting country. Long and intensive exploitation has now seriously depleted the deposits.
From its peak of around 15 million t in 1976, annual oil production has fallen rapidly. In 1990 it
was only about 8 million t (cf. Table 8.9).

The capacity of the petrochemical industry, which had been considerably expanded in the early
1970s in particular, could subsequently be only partially utilized owing to declining domestic oil
production. Despite substantial imports of crude oil, these production plants were never used to
capacity. Even in the early 1960s Romania's exports of petroleum products were based partly
on imported crude. In 1977 the cost of oil imports exceeded the earnings from exports of
refined products for the first time. In 1980 the deficit on foreign trade in oil and petroleum
products amounted to US$ 1.5 billion. The causes were temporary price increases for crude, a
steady decline in Romania's own oil production and increasing domestic consumption. Although
a cutback on imports of crude oil (and other sources of energy) and increased exports of
refined products managed to reduce this deficit in subsequent years, these measures were to
the detriment of domestic utilization of energy sources.

68
Industry came relatively well out of all this (although in many cases it was forced to make
production cutbacks or to close down temporarily), while households had to bear the brunt. For
many years the population had had to make drastic energy savings. Rooms could only be
heated by the hour and the room temperature permissible in winter was lowered considerably;
other forms of energy consumption too were subject to severe restrictions.

Between 1970 and 1989 power station capacity was increased by more than 200% to 22.9
gigawatts. At the same time, however, electricity production rose by only slightly over 100% to
64.1 billion kWh, owing to the relatively modest increase of 96% in thermal power stations'
output (mainly due to the primary energy saving measures). On the other hand, hydro-electric
power stations' production increased by a factor of four and a half over the same period.

In 1990 electricity production fell by 15.4%, with a figure of 15.8% for hydro-electric and 13.7%
for thermal power stations.

8.6 POWER STATION CAPACITY

MW

Type of power station 1970 1975 1980 1985 1989

Total 7,346 11,578 16,109 19,576 22,904

Thermal 6,146 8,945 12,654 15,154 17,320
Hydro-electric 1,200 2,632 3,455 4,421 5,583

*) As at the end of the year.

8.7 ELECTRICITY PRODUCTION

Mill. kWh

Type of power station 1970 1975 1980 1985 1989 1990

Total 35,088 53,721 67,486 71,819 75,851 64,142

Thermal 32,315 45,009 54,849 59,922 63,222 53,242
Hydro-electric 2,773 8,712 12,637 11,896 12,629 10,900

In order to narrow the gap between electricity demand and production, Romania imported
substantial quantities from neighbouring countries. Between 1985 and 1989 these imports rose
by 140% to 7.8 billion kWh.

The country's total electricity consumption was estimated at 83.7 billion kWh in 1989, 11 % more
than in 1985. Industry accounted for 66%, but households for only 5%. Whereas industrial
consumption had increased by 13% to 55.6 billion kWh during the reference period,
households' consumption had fallen by 11 % to 4.3 billion kWh.

Following the lifting of energy rationing at the end of 1989 consumption of electricity went up
considerably. This increased consumption was covered by extra imports. The shortage of
foreign currency meant that electricity imports had to be reduced by about a third in 1991 (there

69
were also cutbacks in imports of other major energy sources). The requisite funds for the
urgently needed modernization of the power stations are not available. In order to procure at
least part of them, there would have to be a considerable rise in electricity prices, which up to
now have covered only a quarter of production costs.

In order to complete the first unit of the Cernavoda nuclear power station - which has been
under construction since the late 1970s - the Canadian Government has granted a loan of
about Can$ 300 million. This unit, which is equipped with a Canadian reactor, will (like the other
four planned units) have a capacity of 685 MW. It is scheduled to come on stream in 1995.

8.8 ELECTRICITY CONSUMPTION

Mill. kWh

Consumer group 1985 1986 1987 1988 1989

Total 75,078 79,908 79,229 82,521 83,662

of which:
Industry 49,31 52,861 52,707 55,056 55,574
Agriculture and forestry 3,348 4,135 3,904 3,666 4,169
Construction 1,308 1,354 1,512 1,568 1,511
Transport and communications. 2,430 2,580 2,583 2,824 2,921
Households 4,814 4,992 4,807 4,482 4,296

In the period between the two World Wars Romania was the sixth-biggest oil-producing country
in the world. The largest deposits were in Oltenia, Pitesti, Mentenia and Moldavia. The
Romanian oil industry had a longstanding tradition with the old oil areas of Prahova and
Dimbovita, to which were added the more recent oilfields in Moldavia, Baragan and Oltenia.

Natural gas comes from the Transylvanien Uplands and the Walachian oilfields (as a special
gas from oil production). In view of its high degree of purity the gas is very suitable for ammonia
production. Extraction of natural gas rose steadily from 20.0 billion m3 in 1970 to 29.3 billion m3
in 1981 before falling to 27.7 billion m3 in 1983 and then rising again to 33.3 billion m3 in 1984
and 36.9 billion m3 in 1985, since when it has fallen without interruption. In 1990 it was
estimated at 28.9 billion m3, 22% down on 1985.

The depletion of Romania's hydrocarbon reserves is bringing coal more and more to the fore.
Romania is relatively rich in natural resources, with particularly large deposits of lignite. The
biggest deposits of brown coal and lignite are in Oltenia, southern Tirgau Jui, Cimpulung, west
of Cluj, near Oradea and in the east near Bacau. The biggest hard coal deposits are in the
Banat Mountains. However, coal production fell sharply in 1990, owing to an appreciable
reduction in the working week, substantial cuts in the work force and considerable productivity
losses.

Indigenous resources of metal ores are pretty much in balance. As a result of the iron deposits
in the west of the Transylvanian Alps, the steel-making centres of Resita and Hunedoara
sprang up. There are copper ore deposits near Baia Mare, at Balan in the Eastern Carpathians,
north of Hunedoara and in Dobruja. There are smaller quantities of manganese, chromium,
molybdenum, nickel, lead, bismuth, zinc, mercury and pyrite. Extensive bauxite deposits have
been developed in the Bihar Mountains south-east of Oradea. There are small quantities of
uranium ore in the vicinity of Baia Mare and in southern Bukowina. In the 1970s and '80s iron

70
ore production fell sharply, with the result that in the 1980s Romania bought iron ore for its
steelworks from the Soviet ore mines.

8.9 MINING PRODUCTS, EXTRACTION OF STONES AND EARTH

Product Unit 1985 1987 1988 1989 1990 19911'

Hard coal and anthracite 1,0001 8,657 9,099 9,142 8,300 3,949 } 15,922
Brown coal and lignite 1,0001 37,924 42,425 49,612 53,044 33,737 )
Ire ore (26% Fe content) 1,0001 2,287 2,281 2,252 2,482
Lead ore (Pb content) 1,0001 34.3 30.2 32.8 37.7 24.7 8.6
Crude oil 1,0001 10,718 9,504 9,389 9,173 7,929 3,427
Natural gas Mill, m3 36,875 35,468 34,885 31,233 28,888 12,962

1) First six months.

The Table b e l o w o n production of selected products s h o w s m a r k e d reductions in output of

nearly all t h e g o o d s listed over t h e last f e w years, in line with general t r e n d s in t h e country's
economy.

8.10 PRODUCTION OF SELECTED PRODUCTS FROM THE

MANUFACTURING INDUSTRIES

Product Unit 1985 1986 1987 1988 1989 1990 19911'

Motor oil 1,0001 5,305 5,991 6,692 6,594 6,074 4,667 1,698
Heating oil, light 1,0001 6,842 7,886 8,203 8,471 8,435 6,232 2,090
Heating oil, heavy 1,0001 8,432 8,198 10,330 9,954 10,172 8,121 3,047
Blast furnace coke 1,0001 5,182 5,670 5,826 5,750 5,322 3,700 1,233
Cement 1,0001 11,189 13,054 12,435 13,124 12,223 10,383 3,689
Roof tiles Mill. 115 122 107 114 100
Pig iron 1,0001 9,212 9,329 8,673 8,941 9,052 6,355
Crude steel 1,0001 13,795 14,276 13,885 14,314 14,415 9,687 3,695
Rolled steel finished products 1,0001 9,900 10,207 9,675 10,355 10,263 6,787 2,736
Steel pipes 1,0001 1,513 1,565 1,394 1,569 1,360 1,059 326
Aluminium 1,0001 247 253 260 266 280 178 85
Aluminium oxide 1,0001 548 555 584 620 611
Diesel and electric locomotives St. 91 145 159 165 182 140 22
Tractors 1,000 70 39 38 32 24 26 11
Motor cars 1,000 134 124 129 141 144 99 43
Bicycles 1,000 155 156 169 181 190
Household refridgerators...: 1,000 400 404 420 442 470 364 197
Washing machines 1,000 210 263 242 236 204 193

For footnotes, please see end of Table

71
8.10 PRODUCTION OF SELECTED PRODUCTS FROM THE
MANUFACTURING INDUSTRIES

Product Unit 1985 1986 1987 1988 1989 1990 19911'

Radios 1,000 571 580 618 648 627 478 197

Televisions 1,000 522 530 484 511 511 401 206
Sulphuric acid (100% H2S04) 1,0001 1,835 1,971 1,693 1,825 1,687 1,112 393
Sodium carbonate (100% Na2C03) 1,0001 836 895 894 918 898 640 252
Sodium hydroxide (100% Na OH) 1,0001 814 846 817 821 763 556 246
Commercial fertilizers
nitrogen (100% N) 1,0001 2,197 2,315 2,097 2,130 2,035
phosphate (100% P2O5) 1,0001 788 849 655 725 648
Synthetic resins and plastics 1,0001 628 664 638 653 640
Synthetic rubber 1,0001 156 173 152 161 149 102 29
Window glass (2 mm thick) Mill, m2 62 69 73 76 76 57 22
Sawn timber 1,000 m' 4,638 4,263 4,227 3,891 3,784
Plywood 1,000 m3 230 219 208 194 181
Paperand board 1,0001 763 800 740 758 725 499a) 192a»
Shoes2* Mill, prs 112 116 113 109 104 70«
Synthetic fibres and yarn 1,0001 257 303 287 297 273
Cotton fabric3' Mill, m2 695 726 705 689 725 544 235
Wool fabric3' Mill, nf 128 137 135 133 149 115 47
Silk fabric3' Mill, m2 135 138 142 140 137
Sugar 1,0001 582 489 646 581 693
Tinned fruit 1,0001 168 188 170 176 192
Tinned vegetables 1,0001 316 346 361 370 343
Edible oils 1,0001 397 379 429 376 286 269 126
Butter 1,0001 47 43 38 44 45 33 12
Tinned meat 1,0001 53 64 72 47 37 40
Tinned fish 1,0001 16.7 17.4 20.2 12.1 7.8 19.4
Beer 1,000 hi 9,847 10,603 10,364 10,655 13,800 12,511 4,652
Wine 1,000 hi 5,349 11,846 8,055 6,425 6,435 4,356 167
Salt 1,000 t 5,019 5,355 5,395 5,353 5,038
Tobacco products 1,0001 32.5 31.0 32.9 33.3 3Z6

1) First six months.

2) From 1989, excluding plastic shoes. -
3) Including mixed fabrics.
a) [Excluding board.
b) January to November.

The number of completed dwellings rose by 24% to almost 200,000 units between 1970 and
1980. During the 1980s there was a sharp fall in this sector too. In 1990 some 40,000 dwellings
were completed, 78% fewer than in 1980.

Until the 1970s private building was of great importance, especially in rural areas. In 1970, 48%
of the total area available for residential buildings was developed by private builders. After that,
the proportion fell sharply, one of the main reasons being the fear that the right to use second
residences or holiday homes would be withdrawn. Even so, 60% of all new buildings in rural
areas in 1984 were privately financed.

72
8.11 COMPLETED DWELLINGS

Survey item Unit 1970 1975 1980 1985 1989

Dwellings 1,000 159.2 165.4 197.8 105.6 60.4 a)

in towns 1,000 111.3 135.1 184.1 94.8
state and cooperative 1,000 96.3 130.5 186.6 97.0 55.0
private 1,000 6Z9 34.9 11.2 8.6 5.4

Living area Mill, m2 useful area 4,982 5,568 6,680 3,718 2,338
in towns Mill, m2 useful area 3,178 4,312 6,060 3,241
state and cooperative Mill, m2 useful area 2,577 4,034 6,084 3,256 2,071
private Mill, m2 useful area 2,405 1,534 596 462 267

a) 1990:42,565.

8.12 COMPLETED DWELLINGS BY NUMBER OF ROOMS

Type of dwelling 1970 1975 1980 1984 1985

Total _ „ 159,152 165,431 197,846 131,901 105,610

1 room 26,548 14,952 32,079 12,262 13,955
2 rooms 83,935 83,148 84,884 62,154 46,132
3 rooms or more 48,669 67,331 80,883 57,485 45,523

73
 FOREIGN TRADE

Information on Romania's foreign trade is provided by Romanian (national) and German foreign
trade statistics. The national statistics give information on Romania's foreign trade relations with
its partners throughout the world. The German statistics give data on the Federal Republic of
Germany's bilateral foreign trade relations with Romania. The Romanian and German data on
trade between the two countries are not necessarily identical. There may be divergences as a
result of the use of differing concepts and methods.

The Romanian foreign trade data relate to general trade in the calendar year (imports for
domestic consumption and for warehousing; exports of domestic products, including all re­
exports). They cover the whole of the
national territory. Imports refer to the country
of origin and exports to the country of
destination. The value data represent the
FOREIGN TRADE OF ROMANIA
frontier-crossing value of the goods and are
National Statistics shown fob for both imports and exports. The
DM thousand million DM thousand million goods classification is based on the
15 15 "Standard International Trade Classification"
(SITO.
Exports
12 The German foreign trade statistics show the
Federal Republic of Germany's international
trade in goods (special trade) with Romania
as country of origin/destination. The value
data refer to the frontier-crossing value, i.e.
the value free at the frontier of the reporting
area, exclusive of German import levies.

In the authoritarian central foreign trade

system with a state monopoly, all trade
transactions were concentrated with the
1975 80 85 90 state, which delegated its rights to sectoral
state-controlled foreign trade enterprises that
Surplus of imports (-) or exports (+) were separate from the production
6 ι ,6 enterprises. Imports and exports had to fit in
with the foreign trade plan, which in turn was
part of the overall economic plan.

1 li 1
The foreign trade plan as the basis of the
foreign trade monopoly was drawn up by the
relevant ministries in cooperation with the
"U[ state-controlled foreign trade enterprises.
-3 The March 1971 reform loosened this rigid
system a little bit; central offices for industry
and large firms authorized by the Council of
Ministers were now allowed to conclude
1975 80 85 90 trade and cooperation agreements with
foreign firms and to maintain agencies
abroad. In the mid-1980s the foreign trade
Slailsilsches Bundesaml 92 0190 Β
system was once again more strictly
centralized. All foreign trade agencies were

74
made subordinate to the Ministry of Foreign Trade. When in 1989 most of the countries of
eastern Europe were already liberalizing or decentralizing the foreign trade activities of their
firms, Romania tightened central control of foreign trade still further. A decree prohibited
Romanian exporters and importers from having direct contacts with foreign trading partners.
Trips abroad on foreign trade business were now the sole prerogative of foreign trade officials.
The Ministry of Foreign Trade and International Economic Cooperation, however, maintained
its central position with all its associated powers of intervention.

After the 1989 revolution Romania's foreign trade policy too was radically overhauled. At the
beginning of 1991 the state's foreign trade monopoly was abolished. Enterprises were in
principle authorized to engage in import and export business independently, although such
activities had to be reported to the appropriate authorities. The former foreign trade companies
were converted into independent firms which could now act as independent agents for the
production enterprises. In 1991 customs duties were substantially reduced and the customs
tariff was brought into line with the corresponding EC system.

In the 1980s the scale and structure of Romania's foreign trade were influenced quite
considerably by the austerity policy to reduce foreign debts. In order to bring the trade balance
into surplus, exports were given a sustained boost. Foodstuffs too were exported in
considerable quantities, and this contributed to malnutrition and hunger in Romania even in
relatively good years for the economy. At the same time imports were cut back drastically, both
of consumer goods (or the intermediate products for them) and of capital goods for industry,
whose technology gap thus widened.

Whereas the strict foreign trade policy of the Ceausescu regime resulted in substantial foreign
trade surpluses throughout the second half of the 1980s, there was an import surplus of US$
3.2 billion in 1990.

As a result of, among other things, the reversal of the earlier policy of virtually unconditional
furtherance of exports, the volume of exports fell by 48% in 1990 to US$ 6.1 billion.

9.1 FOREIGN T R A D E

Imports/Exports 1985 1986 1987 1988 1989 1990

Mill. US$

Imports 8,599 8,406 9,679 8,508 9,348 9,249

Exports 10,414 10,153 12,216 12,683 11,619 6,095
Export (+) or import (-) surplus. + 1,815 + 1,747 + 2,537 + 4,175 + 2,271 - 3,154

Mill. I

Imports 147,023 135,781 132,984 122,263 134,982 209,912

Exports 178,031 163,989 167,850 182,258 167,780 135,191
Export (+) or import (-) surplus. f 31,008 + 28,208 + 34,866 + 59,995 + 32,798 -74,721

In the second half of the 1980s petroleum and natural gas constituted the biggest import
commodity group. They were needed in order to at least partly utilize the excessive capacity of
Romania's petrochemical industry. Machinery, plant and vehicles formed the second largest
group of import products. As already mentioned, these were nevertheless not enough to bring a

75
halt to the increasing technology gap between Romanian production plants and their western
counterparts.

9.2 MAJOR IMPORT GOODS/COMMODITY GROUPS

Mill. US$

Import goods/commodity group 1984 1985 1986 1987 1988 1989

Foodstuffs 139.5 163.8 157.9 128.9 88.2 137.1

Raw materials for the foodstuffs industry 259.8 25Z2 344.3 274.9 223.6 160.8
Raw materials and products of their
processing, excluding foodstuffs (insofar
as not included in other groups) 410.4 488.5 476.4 384.7 415.0 507.5
Fuels, mineral raw materials, metals 4,361.9 4,864.9 4,257.9 5,497.8 4,540.3 5,237.6
Chemicals, fertilizers, rubber 572.9 574.3 556.8 501.6 529.6 517.3
Pharmaceuticals, medicines 63.9 71.4 95.8 8Z8 10Z0 101.0
Building materials etc 57.7 59.4 67.4 87.0 78.6 87.4
Machinery, plant and vehicles 1,501.6 1,904.6 2,211.2 2,445.6 2,246.7 2,379.5
Tractors and agricultural machinery - 47.0 61.8 67.3 66.8 81.8
Equipment for the mining industry 4Z0 44.4 63.3 80.1 98.3 8Z0
Equipment for the metallurgical industry. 3Z1 25.4 2Z9 20.1 20.8 16.0
Lifting/conveying machinery 77.8 108.7 159.9 225.7 178.3 206.1
Equipment fa the chemical industry 25.9 30.6 41.2 60.6 8Z3 84.1
Equipment for the energy and
electrical industries 155.7 281.3 38Z6 305.1 248.3 256.7
Communications equipment 65.6 76.6 100.6 105.7 107.6 140.8
Railway rolling stock 64.7 88.3 55.6 66.5 58.9 49.4
Industrial consumer goods 259.5 289.8 33Z6 355.8 383.7 319.4

Romania's most important export goods between 1984 and 1989 were petroleum products and
other products of the chemical industry. Just behind these came exports of machinery and
plant, which easily outstripped the value of imports of this group of products. The value of
exports of industrial consumer goods fluctuated between US$ 1.6 and 2.4 million. The
substantial exports of foodstuffs - their annual volume was between US$ 0.5 and 0.7 billion -
led to serious shortages in Romania itself.

9.3 MAIN EXPORT GOODS/COMMODITY GROUPS

Mill. US$

Import goods/commodity group 1984 1985 1986 1987 1988 1989

Foodstuffs 641.4 642.7 634.3 682.6 577.5 496.0

Raw materials for the foodstuffs industry 116.9 160.1 65.8 95.3 53.8 65.1
Raw materials and products of their
processing, excluding foodstuffs (insofar
as not included in other groups) 521.3 484.6 521.0 551.9 519.4 479.8
Fuels, mineral raw materials, metals 3,294.7 3,139.5 2,560.8 3,288.3 3,560.5 3,734.1

76
9.3 MAIN EXPORT GOODS/COMMODITY GROUPS
Mill. US$

Import goods/commodity group 1984 1985 1986 1987 1988 1989

Chemicals, fertilizers, rubber 1,270.2 1,095.1 99Z6 1,077.7 1,338.4 1,103.4

Building materials etc 200.7 164.5 180.6 217.4 277.0 235.4
Machinery, plant and vehicles 3,051.9 2,985.8 3,433.5 4,115.8 4.00Z0 3,397.9
Machinery and equipment for
geological exploration and drilling 225.1 341.8 451.4 553.0 57Z2 49Z7
Tractas and agricultural machinery 284.1 314.0 306.4 273.3 315.3 283.6
Equipment f a the chemical industry 47.7 55.1 64.1 85.3 99.7 87.7
Equipment f a the cement industry 40.2 15.7 15.1 25.4 1Z2 8.0
Equipment f a the energy and
electrical industries 186.5 241.5 270.1 268.6 278.8 227.6
Boats, etc. and equipment (including
repairs) 71.8 59.9 73.0 94.2 137.4 114.3
Industrial consumer goods 1,638.2 1,739.9 1,760.2 2,168.8 2,353.5 2,105.3
Clothing 338.7 394.0 441.9 495.1 566.5 471.9
Hosiery 148.4 17Z7 197.9 243.2 235.9 173.1
Furniture 33Z2 379.2 377.0 503.0 547.6 559.4

In the period from 1985 to 1990 the Soviet Union was the most important country of origin of
Romanian imports. During the second half of the 1980s there was a sharp fall in imports from
the EC countries, which reached their all-time low in 1989 at US$ 0.5 million. As a result of the
trend reversal in foreign trade which followed the 1989 revolution, the volume of imports from
the EC increased by a factor of three and a half in 1990.

9.4 IMPORTS BY MAJOR COUNTRY OF ORIGIN

Mill. US$

Country of aigin 1985 1986 1987 1988 1989 1990

EC countries 885 821 564 529 511 1,838

Federal Republic of Germany.. 294 276 228 192 197 1,068
France 116 107 79 80 53 179
Belgium and Luxembourg 54 45 25 27 21 49
Netherlands 44 39 35 55 47 136
Italy 146 123 44 57 56 112
United Kingdom 157 136 79 69 77 174
Ireland 1 2 1 1 15
Denmark 6 7 2 3 5 14
Greece 43 44 61 43 45 67
Portugal 8 9 6 2 2 4
Spain 15 32 4 1 8 19
Soviet Unton 1,941 2,813 2,756 2,705 2,848 2,207
Poland 475 464 436 426 362 405
Czechoslovakia 287 315 342 358 414 294
Bulgaria 263 230 246 238 231 213

77
9.4 IMPORTS BY MAJOR COUNTRY OF ORIGIN
Mill. US$

Country of origin 1985 1986 1987 1988 1989 1990

Hungary 240 268 338 324 294 228

Yugoslavia 139 197 123 183 164 214
United States. 265 252 240 233 183 428
Egypt 902 205 244 175 164 340
Iran 741 522 724 1,042 1,087 549
Syria 368 149 115 124 151 16
China 320 251 377 405 345 238
Japan 92 105 92 57 48 79
Iraq 149 216 402 113 61 158

In recent years the EC was the main destination for Romanian exports. Between 1985 and
1989 the value of exports to the EC countries varied from US$ 2.3 to 3.1 billion. When in 1990
the policy of vigorous support for exports was abandoned, the value of exports to EC countries
fell by a third to US$ 1.9 billion. Of the EC countries, the Federal Republic of Germany was the
most important destination in 1990, whereas in previous years it had been Italy. In that year
Germany accounted for 35% of the total value of Romania's exports of goods to the EC.

After the EC countries, the Soviet Union was the most important destination for Romanian
exports. In this case too, however, they fell sharply in 1990 to US$ 1.5 billion, a drop of 33%.

9.5 EXPORTS BY MAJOR COUNTRY OF DESTINATION

Mill. US$

Country of destination 1985 1986 1987 1988 1989 1990

EC countries 2,705 2,293 2,992 3,060 2,838 1,894

Federal Republic of Germany.. 942 650 736 678 736 663
France 289 322 255 351 268 207
Belgium and Luxembourg 46 51 72 94 82 60
Netherlands 201 169 482 465 160 160
Italy 838 686 961 950 1,071 533
United Kingdom 302 280 316 301 271 131
Ireland 3 3 18 1 2 1
Denmark 35 25 18 15 19 6
Greece 109 67 93 110 175 88
Portugal 2 2 2 2 2 1
Spain 37 37 38 91 52 43
Soviet Union 2,396 2,373 2,527 2,776 2,545 1,520
Poland 398 445 473 467 340 85
Czechoslovakia 291 323 340 413 351 194
Bulgaria 190 220 261 237 187 112
Hungary 267 279 329 336 303 158
Yugoslavia 124 154 131 170 189 141

78
9.5 EXPORTS BY MAJOR COUNTRY OF DESTINATION
Mill. US$

Country of destination 1985 1986 1987 1988 1989 1990

Turkey 81 105 226 282 333 167

Austria 193 184 218 225 180 74
United States. 647 544 567 627 612 351
Cuba 84 84 155 198 149 66
Egypt 399 349 295 360 207 83
Iraq 409 394 435 484 145 43
Iran 237 103 141 342 336 80
Syria 120 48 48 54 50 23

FOREIGN TRADE OF THE

FEDERAL REPUBLIC OF GERMANY
Between 1985 and 1989 the volume of WITH ROMANIA
goods trade between Romania and the DM thousand million Germa n Statistics DM thousand million
Federal Republic of Germany fluctuated 2 ι - n 1 1 12
from DM 2.5 to 2.0 billion. Up to 1989
Germany always had hefty import
surpluses, but in 1990 - when the import
surplus stood at a mere DM 2 million - the
balance of trade between Romania and
Germany was virtually nil.

1975 80 85 90
Surplus of Imports (-) or exports (+)
1 1

n^ 0.5

n χ
I
η ζ

-1
"Iuil
u

JUU
-0.5

1975 80 85 90

Siaiislìsches Bungesamt 92 0191 9

79
9.6 TRADE BETWEEN GERMANY AND ROMANIA

Imports/exports 1985 1986 1987 1988 1989 1990

Mill. US$

Imports (Romania as country of origin) 545 764 796 790 818 691
Exports (Romania as country of
destination) 317 342 327 327 311 688
Import surplus 229 422 469 462 508 3

Mill. DM

Imports (Romania as country of aigin) 594 1,659 1,430 1,389 1,539 1,116
Expats (Ranania as country of
destination) 916 744 583 572 584 1,114
Import surplus 678 915 847 816 955 2

Clothing and clothing accessories were Germany's main imports from Romania in 1990. With a
value of DM 0.38 billion, this category accounted for 34% of total imports in that year.

The value of furniture and furniture parts imported from Romania in 1990 amounted to DM 0.29
billion, equivalent to 26% of total Imports.

9.7 MAJOR GOODS/COMMODITY GROUPS IMPORTED FROM ROMANIA

BY SITC HEADING

1988 1989 1990

Import goods/
commodity group
1,000 US$ 1,000 DM 1,000 US$ 1,000 DM 1,000 US$ 1,000 DM

Fertilizers (except those in group 272). 11,310 19,804 13,187 24,615 8,311 13,648
Paper and board; pulp products 12,673 22,295 16,689 31,524 8,258 13,550
Yam, fabrics, other finished woven
products 8,147 14,295 8,408 15,752 11,731 18,912
Non-metallic mineral manufactures 36,061 63,548 40,654 76,584 35,045 56,627
Iron and steel 58,788 101,981 52,364 98,833 35,332 56,908
Other metal products 15,868 27,901 20,642 38,850 18,539 30,000
Machines, appliances, etc. f a
various purpose 10,184 17,987 16,193 30,474 18,247 29,548
Furniture and parts thereof; bed
fittings etc 177,298 310,531 191,221 359,112 176,720 286,105
Clothing and clothing accessaies 203,866 360,729 207,878 390,027 237,961 384,062
Footwear 37,262 65,903 23,617 44,472 28,385 45,361

In 1990 Germany exported yarn, fabrics, etc. valued at DM 0.20 billion to Romania, which
meant that this category accounted for 18% of the total value of goods exported to Romania in
that year. There was a sharp increase in exports of meat and meat preparations in 1990, the
value of which trebled compared with the previous year to DM 0.16 billion.

80
9.8 MAJOR GOODS/COMMODITY GROUPS EXPORTED TO ROMANIA BY
SITC HEADING

1988 1989 1990

Import goods/
commodity group
1,000 US$ 1,000 DM 1,000 US$ 1,000 DM 1,000 US$ 1,000 DM

Meat and meat preparations 28 49 27,985 53,124 94,692 158,381

Various edible products and
preparations thereof 484 853 418 773 13,858 21,972
Cork and wood 959 1,712 429 805 13,873 21,469
Electricity 23,222 39,413
Organic chemicals 16,939 29,467 13,440 25,207 19,814 32,240
Dyes, tanning agents and paints 16,631 29,101 14,602 27,590 24,968 40,375
Medicines and drugs 3,872 6,865 3,835 7,248 12,157 19,620
Primary plastics 7,967 13,886 7,614 14,299 13,332 21,322
Other chemical products 21,312 37,315 15,089 28,388 33,991 55,352
Yam, fabrics, other finished woven
products 99,492 174,998 106,063 199,451 126,350 204,178
Iron and steel 15,840 27,788 13,024 24,686 25,045 39,842
Special machines 6,220 11,045 4,873 9,023 19,926 30,643
Machines, appliances, etc. f a various
purposes 8,235 14,379 10,391 19,267 19,992 31,441
Other electric machines, appliances,
equipment etc 7,060 12,360 8,233 15,245 14,721 23,435
Road vehicles (including air-cushion
vehicles) 1,527 2,688 1,599 2,994 12,849 20,829

81
10 TRANSPORT AND COMMUNICATIONS

Romania is still not fully developed as regards transport, one of the reasons being the special
nature of the terrain. The Carpathians divide the landscape into two parts and constitute an
obstacle to the construction of railways and roads. The areas to the east and south of the
Carpathian rim (Moldavia, Dobruja and the Romanian Plain) are better developed in terms of
transport than the regions to the west of it (such as Transylvania, Maramures and Banat). In
addition to the mountain regions, the swampy areas of the Danube Delta also present obstacles
to transport.

The railways are the most important means of overland transport in Romania. In 1989 the
network totalled some 11,000 km; since 1970 it has not been extended very much. Since the
mid-1970s, however, the main lines have been increasingly made double-track. Another major
project was electrification. In 1970 the length of electrified lines was just under 500 km; by 1989
this had been increased to over 3,600 km, about a third of the total network.

Over 95% of the network is standard-gauge and there are about 400 km of narrow-gauge and
50 km of wide-gauge lines.

In the first half of 1991 the Romanian State Railway was made into an independent
undertaking. It remained in state ownership but received full budgetary powers. As rail fares are
state-subsidized, however, the Government still reserved the right to have a say in how they
are set.

10.1 LENGTH OF RAILWAY NETWORK*)

km

Survey item 1970 1980 1985 1988 1989

Total 11,012 11,110 11,192 11,298 11,343

electrified 494 2,367 3,194 3,459 3,654

*) As at the end of the year.

The five-year plan provided for a 10 to 13% increase in the volume of rail traffic in 1990.
However, measured by the number of passengers or passenger-kilometres the actual figures
were 11 and 2% respectively lower than in 1985. In the case of goods transport, the volume of
freight fell by 23% and the number of tonne-kilometres by 11 % over the same period.

82
10.2 AMOUNT OF TRAFFIC CARRIED ON THE RAILWAYS

Type of traffic Unit 1980 1985 1988 1989 1990 19911>

1,000 347.9 460.3 473.5 481.0 407.9 i7ae

Mill, t 274.6 283.4 315.2 306.3 218.8 57.3
Passenger kilometres.... Mrd. 23.2 31.1 34.6 35.5 30.6 11.8
Tonne kilometres Mrd. 65.0 64.3 69.4 67.2 57.3 20.1

1) First six months.

The total length of roads in Romania was estimated at just under 73,000 km in 1989, a drop of
7% compared with 1975. However, over the same period the network of metalled roads was
extended by 40% to around 37,000 km, but even so only slightly over half of all roads were
metalledin 1989.

In 1990 the Romanian Government adopted a programme for the extension of trunk roads and
construction of motorways. Over 2,500 km of the metalled roads are to be modernized;
Bucharest and Constanta are to be linked by a motorway by 1994.

At least part of the foreign capital to be spent on motorways and expressways is to be repaid
from toll charges levied on these roads.

10.3 LENGTH OF ROAD NETWORK BY TYPE OF ROAD*)

1,000 km

Type of road 1970 1975 1980 1985 1989

Total 75.9 77.9 73.4 72.8 72.8

metalled roads 26.3 34.0 35.7 36.9
Motorways 0.1 0.1 0.1 0.1
Trunk α national roads 1Z2 12.8 14.6 14.6 14.6
Regional α second category roads. 63.7 65.0 58.7 58.1 27.0
Other roads 31.2

*) As at the end of the year.

Between 1985 and 1990 the number of private motor cars increased by 36% to 1.3 million. The
ratio of motor cars per 1,000 inhabitants thus went up from 42 to 56.

Beginning in 1992, the Anglo-Dutch Royal Dutch/Shell Group has plans to build up a network of
petrol stations in Romania. Steps have already been taken to set up a subsidiary, Shell
Romania.

83
10.4 NUMBER OF MOTOR VEHICLES AND CAR OWNERSHIP*)

Type of vehicle/car ownership Unit 1985 1986 1987 1988 1989 1990

Private mota cars 1,000 949.6 1,002.8 1,044.4 1,089.3 1,218.1 1.29Z3
Cars per 1,000 inhabitants Number 41.7 43.8 45.4 47.1 52.5 55.7
1,000 22.9 21.8 21.7 20.9 27.4 28.3
1,000 197.0 200.3 201.3 191.9 209.4 322.0
Motabikes and scooters 1,000 297.5 293.8 298.1 297.2 294.6 311.6

*) As at the end of the year.

10.5 AMOUNT OF TRAFFIC CARRIED ON THE PUBLIC ROAD NETWORK

Type of traffic Unit 1986 1987 1988 1989 1990 19911»

Passengers2^ Mil. 869 869 879 879 781 375

Freight Mill, t 333 420 385 382 202 57
Passenger-kilometres.. Mrd. 2Z3 22.4 23.0 23.1 24.0 9.7
Tonne-kilometres Mill. 5,522 5,511 5,649 5,813 5,920 2,081

1) First six months.

2) Excluding passengers carried by municipal bus services.

T h e most important inland w a t e r w a y is the Danube, connecting t h e s e a ports with the

hinterland. Its usefulness to t h e country is only relative, however, b e c a u s e for t h e most part it
flows along t h e country's borders. T h e Rhine-Main-Danube Canal gives R o m a n i a access to the
central a n d western E u r o p e a n w a t e r w a y network. T h e Danube-Black S e a C a n a l , which is
navigable b y sea-going vessels, shortens t h e Danube route by about 3 8 0 k m . It w a s o p e n e d in
1984 a n d w a s t h e country's most expensive technical project up to that t i m e . T o build this
6 4 km-long w a t e r w a y , twice as m u c h earth a n d rock h a d to be m o v e d as for t h e P a n a m a
C a n a l . It c a n be sailed by sea-going vessels with a draught of 5.5 m a n d a size of 5,000 tdw. It
w a s s u p p o s e d to carry u p to 7 5 million t of freight a year, but its use has s o far fallen well short
of expectations, particularly by foreign ships. O n e of the reasons is that t h e tariff structure is
unattractive for foreign c u s t o m e r s .

10.6 INLAND WATERWAY TRANSPORT

Survey item Unit 1986 1987 1988 1989 1990 19911>

Navigable waterways km 1,755 1,755 1,745 1,783

Passengers3 Mill. 1.6 1.8 2.0 1.8 1.6 0.7
Freight2» Mill, t 22.3 24.1 33.4 37.4 12.0 4.6
Passenger-kilometres.... Mill. 84.0 73.0 78.0 72.0 57.7 16.5
Tonne-kilometres Mill 2,598 1,656 3,318 3,666 2,090 1,153

1) First six months.

2) On domestic vessels.

84
Over the last 20 to 30 years sea transport has become increasingly important for Romania. The
bulk of the country's international goods traffic passes exclusively or mainly via waterways,
which means that the importance of the merchant fleet has grown steadily. The number of
merchant vessels increased from 65 (with 0.34 million grt) in 1970 to 483 (around 4 million grt)
in 1990. At the same time the number of tankers rose from 4 to 15 and their tonnage from
69,000 to 645,0001.

10.7 NUMBER OF MERCHANT SHIPS*)

Survey item Unit 1970 1975 1980 1985 1990

Vessels Number 65 122 317 410 483

Tankers Number 4 7 10 11 15
Tonnage 1,000 grt 341 777 1,856 3,024 4,005
Tankers 1,000 grt 69 244 247 384 645

*) Vessels above 100 grt; as at the middle of the year.

During the second half of the 1980s there was a substantial increase in sea traffic. Between
1986 and 1989 the volume of freight went up by 16% to 36 million t, while the number of tonne-
kilometres rose by 28% to 149 billion. The reduced volume of foreign trade in 1990 led to a
sharp fall in international sea transport, with the volume of freight droping by 23% and the
number of tonne-kilometres by 25%.

10.8 SEA TRAFFIC

Survey item Unit 1986 1987 1988 1989 1990 19911>

Freight Mill, t 30.9 30.0 33.9 35.9 27.6 12.6

Tonne-kilometres Mrd. 116 116 138 149 111 61

1) First six months.

In the last 20 or 30 years Romania has considerably expanded and modernized its air transport
infrastructure. In addition to the four international airports at Bucharest, Constanta, Timisoara
and Suceava it has a whole series of airfields and landing strips. Civil air traffic is in the hands
of the Romanian airline TAROM and the LAR charter company founded in 1975.

In the second half of the 1980s the country's civil aviation recorded substantial growth rates, but
political and economic developments led to an appreciable fall in air traffic in 1990.

85
10.9 CIVIL AIR TRAFFIC

. ..
Type of traffic 1986 1987 1988 1989 1990 19911>
Unit
Passengers 1,000 2,608 3,071 3,215 3,369 2,738 669
1,0001 36.0 31.0 31.0 51.0 37.0 5.0
Passenger-kilometres.... Mil 3,301 3,851 4,019 3,842 3,419 900
Tonne-kilometres Mill. 73.0 63.0 61.0 78.0 56.4 11.2

1) First six months.

The number of telephones increased by a factor of four and a half between 1970 and 1989,
when it stood at 2.9 million. Over the same period the number of radio licences, which was
already 2.2 million in 1970, showed only a relatively slight increase of 10% to 2.8 million. On the
other hand, the number of combined television and radio licences went up one and a half times
over the same period to 3.7 million. The country's first regional transmitter came into operation
in 1989 in Timisoara. There are plans to introduce satellite television.

There are still 3,000 villages in Romania without a telephone link. In mid-1991 the Romanian
Government adopted a long-term development plan to bring the country's telephone system up
to European standards over the next 15 years. By 2005 the number of telephones is supposed
to treble. The existing telephone exchanges are to get digital equipment and there are plans for
a whole series of new exchanges. The network will be modernized with glass-fibre cables.

10.10 COMMUNICATIONS*)
1,000

Survey item 1970 1975 1980 1985 1989

Telephones 639 1,196 2,074 2,522 2,903

Main sets 2,450 2,840
Radio licences 2,241 2,327 2,511 2,570 2 476
Radio and television licences 1,484 2,692 3,714 3,879 3,696

*) As at the end of the year.

The large-scale development of the petrochemical industry meant that the long-distance
pipeline network had to be extended accordingly. Even in the second half of the 1980s there
was a substantial increase in the size of the network. In 1989 the total length of long-distance
pipelines was estimated at around 3,700 km, 15% more than in 1985. At the same time the
volume of products transported went up by 44% to 31 million t and throughput by 40% to 6.7
billion tkm.

86
10.11 LONG-DISTANCE PIPELINES

Survey item Unit 1985 1986 1987 1988 1989

LengthD km 3,202 3,569 3,569 3,694 3,694

Products transported Mill, t 21.3 24.5 28.9 29.2 30.6
Throughput lill.tkm 4,771 5,419 6,458 6,356 6,654

1) As at the end of the year.

87
11 TOURISM

Tourism has become an important area of Romania's economy in the last 20 or 30 years. In
addition to the many high-altitude and climatic health resorts in the Carpathians, the spas and
the historic sights, the Black Sea beaches are a particular attraction.

The total number of foreign visitors was estimated at 6.7 million in 1980. By 1986 this had fallen
by 33% to 4.5 million. Over the next two years it rose by a total of 22% to 5.5 million. In 1989 it
fell back by 12% to 4.9 million, but in 1990 it slumped by over 40% to under 3 million as many
visitors from the former Comecon countries stayed away. The rate of utilization of Romania's
accommodation capacity was correspondingly low in that year.

In 1988, 56% of all foreign visitors travelled to Romania by road, 36% by rail, 5% by air and a
mere 2% by sea.

11.1 FOREIGN VISITORS BY ROUTE

1,000

Route 1980 1985 1986 1987 1988 1989

Total 6,742 4,772 4,535 5,142 5,514 4,852

Overland 5,944 4,248 4,117 4,668 5,084
Rail 1,825 1,665 1,719 1,856 2,001
Road 4,119 2,583 2,398 2,812 3,083
Sea 215 151 145 161 127
Air 583 373 273 313 303

Between 1980 and 1988, travellers from Yugoslavia constituted the largest group of foreign
visitors with roughly a quarter of the total (1988). In 1989 this figure fell to 9%, with visitors from
the Soviet Union (20%) and Poland (19%) now forming the largest groups.

11.2 FOREIGN VISITORS BY SELECTED COUNTRY OF ORIGIN

1,000

Country of origin 1980 1985 1986 1987 1988 1989

Total 6,742.0 4,772.0 4,535.0 5,142.0 5,514.0 4,8512

Soviet Union 540.5 545.0 556.0 577.4 630.0 950.0
Poland 718.4 516.0 515.0 715.7 819.0 90Z7
Bulgaria 1,007.0 547.4 515.0 644.3 70Z1 757.6
Germany 599.5 43Z5 410.0 401.2 445.1 457.0
Federal Republic 372.6 17Z2 151.0 131.7 327.4 341.4
Democratic Republic. 226.0 260.3 259.0 269.5 117.7 115.6
Hungary 904.5 876.0 856.0 909.1 650.0 438.3
Yugoslavia 1,431.4 947.9 83Z0 1,007.7 1.33Z0 430.6

88
11.2 FOREIGN VISITORS BY SELECTED COUNTRY OF ORIGIN
1,000

Country of origin 1980 1985 1986 1987 1988 1989

Italy 39.6 2Z9 21.8 30.2 30.1 3Z8

Greece 8Z1 34.0 31.0 34.8 30.0 31.5
United Kingdom. 84.2 28.9 19.5 17.0 20.5 18.6
France 53.4 36.3 24.5 26.5 19.2 13.0
Spain 20.7 14.1 8.9 10.5 9.0 10.7
Netherlands 16.9 13.4 7.0 9.6 7.8 7.4
Belgium 10.5 11.3 8.1 10.6 7.1 4.4
Denmark 9.1 5.9 4.6 2.8 4.1 4.1
Ireland 6.2 0.5 0.3 0.4 0.8 0.7

The expansion of the hotel industry is reflected in the number of accommodation

establishments between 1970 and 1989. Total bed capacity increased by about two-thirds
during this period. While the number of guest-houses and campsites increased roughly fourfold
in each case, the number of hotels went up by about two-thirds.

11.3 ACCOMMODATION ESTABLISHMENTS

Type of establishment 1970 1980 1985 1988 1989

Total 2,385 3,190 3,330 3,365 3,490

Hotels 497 707 784 820 828
Guest houses 34 105 115 123 134
Holiday houses 1,309 1,531 1,464 1,492 1,525
Campsites 76 152 174 193 218
Other establishments1'.. 469 695 793 737 785

1) Hostels, sanatoria, private accommodation, etc.

11.4 BEDS IN ACCOMMODATION ESTABLISHMENTS

1,000

Type of accommodation 1970 1980 1985 1988 1989

Total „ 248.2 404.4 410.6 427.5 41&9

Hotels 85.5 146.5 161.5 167.8 168.9
Guesthouses 1.4 7.2 7.4 7.6 8.0
Holiday houses 49.0 47.5 48.3 47.8 49.0
Campsites 17.9 37.3 40.7 50.5 53.9
Other establishments1' 94.7 165.9 15Z6 153.7 139.1

1) Hostels, sanatoria, private accommodation, etc.

89
The number of visitors staying in accommodation establishments showed an even greater
increase than the number of beds, more than doubling between 1970 and 1989. More than two-
thirds of all visitors stayed in hotels, 6% in guest-houses, 5% in holiday houses and 7% on
campsites.

11.5 VISITORS IN ACCOMMODATION ESTABLISHMENTS AND FOREIGN

CURRENCY RECEIPTS

Survey item Unit 1970 1980 1985 1988 1989

Visitas 1,000 5,444 10,154 10,361 11,618 11,597

Hotels 1,000 3,641 6,671 7,373 8,119 8,028
Guest houses 1,000 125 757 506 718 685
Holiday houses 1,000 385 662 470 60S 609
Campsites 1,000 309 711 726 711 758
Other establishments1) 1,000 984 1,353 1,286 1,461 1,517

Faeign currency receipts Mill. US$ 182 176 170

1) Hostels, sanatoria, private accommodation, etc.

90
12 MONEY AND CREDIT

Romania's official currency unit, the leu (I) (plural lei), is divided into 100 bani. Both banknotes
and coins are in circulation.

In Socialist Romania the administrative bodies in the financial and banking sector and their
responsibilities were laid down by the 1972 Finance Law. They were given the task of creating
and distributing the monetary funds, maintaining the financial, monetary and foreign currency
balance, and ensuring financial discipline.

Overall control of finance and banking was in the hands of the Council of Ministers, which was
advised by a Finance and Banking Council set up in 1973.

In this system the banks were specialist administrative bodies involved in finance and banking
which administered a significant proportion of companies' monetary funds, effected payments
between Socialist organizations, granted loans to trade and industry and kept the accounts for
the state budget. On behalf of the state and in its interests, they exercised control over the
formation and accounting of the monetary funds and over the way in which these were used by
the Socialist organizations.

As the central and issuing bank, the National Bank coordinated the circulation of money, carried
out credit and account operations for Socialist organizations and granted supplementary loans
to other monetary institutes.

The following banks had specialized spheres of activity: the Bank for Agriculture and the Food
Industry (investment, production and sales credits in these sectors); the Investbank (loans to
industry, the building, transport and telecommunications sectors, goods trade, craft and
consumer cooperatives, socio-cultural organizations, state administration and other
government bodies); the Romanian Bank for Foreign Trade (payment, credit and bank control
operations in monetary transactions with foreign countries). The savings banks and the state
insurance companies administration also acted as specialized monetary institutes.

Following the 1989 revolution, the banking sector was reorganized at the beginning of the
1990s. With the enactment of a Banking Law and a National Bank Law in spring 1991, a two-
tier banking system - with the National Bank on the one hand and commercial banks on the
other - was established in accordance with market-economy requirements. The National Bank
now has only the traditional functions of a monetary authority or a "bank of banks". The
formerly specialized divisions of the National Bank were converted into independent enterprises
which may engage in the whole spectrum of activities of a commercial bank.

The banking reform also abolished the monopoly of certain state banks with regard to specific
sectors of the economy. The Government expected that the free choice of commercial banks
now given to firms would increase competition and improve banking services. All the same, the
spheres of activity of the Bank for Agriculture, the banks of the consumer and production
cooperatives, the Foreign Trade Bank and the Development Bank remained exclusively or
predominantly in specific sectors.

In mid-1991 the number of commercial banks operating in Romania was 14. In January 1992 a
post office bank with a capital of 900 million lei was founded.

In Socialist Romania the Ministry of Finance was jointly responsible for foreign exchange policy
with the National Bank and the Foreign Trade Bank. Different exchange rates existed side by
side and were modified as the need arose. With the freeing of the national currency's exchange

91
rate in November 1991, the official exchange rate introduced in 1990 and maintained at an
artificially high level was abandoned, which meant a substantial depreciation of the leu.
Immediately prior to this the official rate had been about 60 lei to the US dollar. It was replaced
by an auction rate, which on 11 November 1991 was set at 180 lei to the US dollar. There is
also a rate for foreign travel currency, which is independent of the auction rate and stood at 250
lei to the US dollar at the end of 1991.

12.1 OFFICIAL EXCHANGE RATES*)

Type of rate Unit 1986 1987 1988 1989 1990 19911'

Official rate
Buying and selling.... I f a DM1 - - - - 23.48 34.59
I f a US$1 - - - - 34.71 62.05
Non-commercial rate
Buying and selling.... I f a DM1 5.3462 5.1704 4.9329 4.9329 - -
I f a US$1 10.50 8.42 8.84 8.88 - -
Commercial rate
Buying and selling.... H a DM1 7.7800 8.4372 8.0967 8.3734 - -
1 f a US$1 15.28 13.74 14.37 14.44 - -
Special Drawing Right
rate (SDR) 1 for SZR1 18.690 19.492 19.492 19.042 49.381 8Z0643)

*) As at the end of the year.

1) As at June,
a) As at August.

Foreign currency reserves, which still stood at US$ 1.76 billion at the end of 1989, fell to
US$0.26 billion over the next one and a half years. In November 1991 the Government
decided, in view of the shortage of foreign exchange, to tighten up exchange controls
considerably. Firms' foreign exchange holdings were to be converted into lei in the short term.
Only in cases of proven need was foreign exchange allocated. Special arrangements came into
force for foreign investors.

12.2 GOLD AND FOREIGN EXCHANGE HOLDINGS*)

Type of holding Unit 1987 1988 1989 1990 19911>

Gold Mill, fine troy oz. 1.364 1.449 2.174 2.208 2.226
Foreign exchange Mill. US$ 1,402 780 1,759 524 261
Special Drawing Rights (SDR)... Mill. US$ 100 - 3 a)

*) As at the end of the year.

1) As at July,
a) As at August

92
Between the end of 1987 and the middle of 1991 the amount of cash in circulation in Romania
more than doubled. The per capita sum in circulation increased accordingly from 2 6 4 6 to 5 304
lei. Over the same period sight deposits with banks increased more than fivefold,"while savings
deposits with commercial banks rose by 45%.

At the same time the volume of commercial banks' loans to private individuals went up by 64%
to 839 billion lei. At the beginning of 1991 the National Bank of Romania set the discount rate at
8.0% p.a.

12.3 SELECTED DATA ON MONEY AND CREDIT*)

Survey item Unit 1987 1988 1989 1990 19911>

Cash in circulation, notes and coins

(excluding bank reserves) Mrd. I 60.58 64.96 74.74 97.55 124.30
Cash in circulation per inhabitant I 2,646 2,824 3,234 4,203 5,304
Bank deposits of Government and
monetary authaities 2 ) Mrd. I 226.49 281.46 227.99 -3.51 1.24
Sight deposits with banks
Commercial banks Mrd. I 34.35 37.33 48.61 124.84 178.80
Savings deposits
Commercial banks Mrd. I 176.50 185.55 201.74 249.09 255.18
Foreign currency deposits
Commercial banks Mrd. I 5.41 4.45 3.93 15.11 37.75
Bank loans to private persons
Monetary authaities 2 ) Mrd. I 260.69 266.50 331.50 241.47a)
Commercial banks Mrd. I 512.96 546.61 478.90 683.96 838.96

*) As at the end of the year.

1) As at July.
2) Up to November 1990: National Bank,
a) As at September.

93
13 PUBLIC FINANCE

Between 1985 and 1989 the revenue in the consolidated state budget fluctuated between 385
and 425 billion lei. Expenditure varied between 334 and 452 billion lei. From 1985 to 1988
revenue was consistently greater than expenditure, but in 1989 a deficit of 44 billion lei was
recorded, equivalent to 10% of expenditure.

In Socialist Romania the revenue and expenditure of the various government institutions were
laid down in the overall context of the general finance plan. This was merely an instrument for
regulating financial transactions between the sectors of the economy resulting from the
production plan with valuation at the official prices. In this system there was virtually no scope
for an independent finance policy. At the beginning of the 1990s a start was made on adapting
taxation policy instruments to the requirements of the fledgling reform process. The budget for
1990, which had been prepared by the former regime, was declared null and void.

The state budget drawn up for 1991 was the first one for 50 years to be submitted to
Parliament. When it was submitted, a deficit of 37 billion lei had been assumed, but the shortfall
turned out to be as much as 65 billion lei. It was to be financed by state borrowings.

As from January 1991 a personal income tax was introduced in Romania, with rates ranging
from 6 to 32%. In December 1991 further changes to the tax system came into effect, the main
ones being a simplification of turnover tax and the reintroduction of a consumption tax for semi-
luxury and luxury goods. Goods intended for export were exempted from turnover tax, as was
the import of investment capital for joint ventures.

13.1 CONSOLIDATED STATE BUDGET*)

Mrd. I

Survey 'riem 1985 1986 1987 1988 1989

Revenue... 399.4 416.6 425.4 384.6 408.0

Expenditure 375.5 378.6 366.0 334.1 45Z1
Surplus (+) ir deficit (-] + 23.9 +38.0 +59.4 +50.5 -44.2

*) Budgetary yean calendar year

The state budget revenue of 408 billion I in 1989 comprised 65% tax revenue and 35% non-tax
revenue. The biggest item among tax revenue was turnover tax with 57%, followed by the wage
fund tax and social insurance contributions with 19% and 17% respectively.

Income from state-owned assets, mainly in the form of transfers of profits, accounted for 79%
of non-tax revenue.

94
13.2 CONSOLIDATED STATE BUDGET REVENUE*)
Mrd. I

Budgetary item 1985 1986 1987 1988 1989

Total 399.4 416.6 425.4 3846 408.0

Tax revenue 26Z1 280.4 269.7 256.9 265.0
Production tax (net) 7Z8 83.7 116.3 34.2
Turnover tax 88.8 94.5 48.7 114.7 150.6
Wage fund tax 45.0 45.7 46.0 47.3 50.1
Taxes on agricultural cooperatives 1.3 1.1 1.3 1.3 1.1
Land tax 0.3 0.2 0.3 0.3 0.2
Wage fund tax 1.0 0.9 1.0 0.9 0.9
Consumption taxes 0.6 0.6 0.7 0.7 0.7
Contributions to the social insurance fund
(employers' contributions)1' 40.0 40.5 40.7 4Z1 44.3
Contributions to the supplementary social
insurance fund (employees' contribution)1).. 6.1 7.3 8.5 8.6 9.6
Other tax revenue 7.5 7.0 7.6 8.0 8.5
Non-tax revenue 137.3 136.2 155.7 127.7 143.0
Income from state-owned assets 121.5 108.4 12Z7 10Z4 112.4
Transfers of profits 72.3 77.7 98.9 79.2 88.7
Administration fees 0.1 0.1 0.2 0.2 1.0
Penal fees 4.2 4.0 4.1 5.9 4.9
Other non-tax revenue 11.5 23.7 28.8 19.2 24.7
Corpaations (self-financing) 8.0 9.1 9.6 8.9 10.7

*) Budgetary yean calendar year.

1) State sector only.

With a total v o l u m e of 4 5 2 billion lei, consolidated state budget e x p e n d i t u r e for 1 9 8 9 w a s 3 5 %

higher than for t h e p r e v i o u s year. It w a s divided into 3 5 % current e x p e n d i t u r e , 3 1 % capital
expenditure a n d 3 4 % other expenditure. T h e largest single item w a s t h e f i n a n c i n g of fixed
capital f o r m a t i o n , with 3 0 % of total expenditure.

13.3 CONSOLIDATED STATE BUDGET EXPENDITURE*)

Mrd. I

Budgetary item 1985 1986 1987 1988 1989

Total1» 375.5 378.6 366.0 3341 452.1

by type
Current expenditure 156.6 164.2 158.2 156.0 159.1
Goods and services 80.8 84,0 77.2 80.0 78.5
of which:
Wages and salaries 36.8 30.9 28.8 31.1 3Z2
Employers' contributions to the social
insurance fund 1.1 3.5 4.9 3.4 3.5

For footnotes, please see end of Table.

95
13.3 CONSOLIDATED STATE BUDGET EXPENDITURE*)
Mrd. I

Budgetary item 1985 1986 1987 1988 1989

Interest payments to other countries. 10.9 7.2 7.1 3.8 1.0

Subsidies and transfers 64.9 73.0 73.9 7Z2 79.5
of which:
Subsidies 6.7 7.4 6.8 4.1 3.8
Pension payments2) 43.6 44.3 45.7 46.2 5Z9
Child allowances 14.1 20.8 21.2 21.5 2Z4
Capital expenditure 143.8 153.3 138.5 143.8 140.2
Fixed capital formation 134.6 146.2 134.1 137.6 136.1
Other expenditure 75.2 61.2 69.3 34.3 15Z93)
Non-budget funds3' 70.8 54.7 60.8 26.8 34.0
by selected purpose
Financing of the national economy 258.9 256.6 245.1 210.4 324.4
of which:
Financing of fixed capital formation 134.6 146.2 134.1 137.6 136.1
Science and geological prospecting 7.4 6.9 7.5 9.6 8.6
Agriculture 5.6 6.0 5.3 5.1 5.3
Subsidies 6.7 7.4 6.8 4.1 3.8
to firms 5.9 6.7 6.0 4.1 3.8
to individuals 0.7 0.7 0.6
Miscellaneous 95.4 82.8 85.3 47.8 165.1a)
Social welfare and cultural activities 116.7 12Z0 120.9 123.7 127.8
of which:
Health, physical education and sport.... 18.5 18.7 18.1 17.8 19.4
Education, culture and art 18.9 19.2 17.5 18.2 18.1
State pension and social insurance 59.7 64.8 66.7 69.1 71.0
Administration and justice 3.8 3.8 3.8 3.8 3.9
National defence 1Z1 1Z1 11.5 11.5 11.7

*) Budgetary year: calendar year.

1) Including net loans.
2) State sector only.
3) Provision of finance to offset the balances of the price equalization fund and the amortization payments from the foreign debt
repayment fund.
a) Including 111.0 Mrd. I as a counterpart to the Government's bank deposits to guarantee financial cover for the debt-reduction
programme for agricultural cooperatives.

In 1 9 8 9 g r o s s f i x e d capital f o r m a t i o n a m o u n t e d to 236 billion I, 2 % less t h a n in the previous

year. 4 3 % of total f i x e d capital f o r m a t i o n w e n t to manufacturing industry, 1 7 % to agriculture a n d
forestry a n d 1 0 % to transport. Within m a n u f a c t u r i n g industry, 8 6 % of capital expenditure was
d e v o t e d t o t h e m a n u f a c t u r e of capital g o o d s a n d only 1 4 % to t h e m a n u f a c t u r e of c o n s u m e r
goods.

96
13.4 GROSS FIXED CAPITAL FORMATION BY SELECTED SECTOR
Mrd. I

Secta 1985 1986 1987 1988 1989

Total 246.3 249.0 245.5 240.2 236.4

Agriculture and faestry 43,8 42.3 40.8 38.6 39.8
Manufacturing industries 119.1 124.7 116.0 114.6 102.5
Capital goods (means of production). 107.0 110.9 10Z7 101.5 88.4
Consumer goods 1Z1 13.7 13.4 13.1 14.1
Construction industry 11.3 11.3 11.6 11.3 11.0
Trade 5.2 5.6 5.7 5.3 5.7
Transport 25.3 21.2 23.0 23.0 24.1
Communications 1.1 1.4 1.0 0.9 0.9
Local government 11.5 13.1 16.0 16.4 15.5
Housing 20.4 20.4 22.8 22.2 19.5
Science and scientific services 1.4 1.6 1.4 1.3 2.3
Education, culture and art 0.9 0.9 0.8 0.9 2.7
Health and social welfare 1.0 0.8 0.5 0.6 0.7
Administration 1.5 1.5 2.2 2.1 9.7

During the 1980s Romania completely wiped out its foreign debts, which in 1981 had stood at
US$11 billion.

The rapid reduction of these debts was the result of a severe cutback on imports and
encouragement of exports. The Government of that time was prepared to put up with the
resulting significant deterioration in the supply of the population, even with staple foodstuffs. On
top of all this, production plant and basic infrastructures became obsolete.

After the end of the Ceausescu regime, experts observed that the Romanian economy was in a
disastrous state. A solution could only be found with the help of international loans.

The World Bank said it was prepared to support projects in the energy, road-building,
telecommunications and health sectors, but not projects in heavy industry, which it considered
to be oversized.

13.5 GOVERNMENT FOREIGN DEBTS*)

Mill. US*

Type of loan/credita 1984 1985 1986 1987 1988 1989

Total 6,255 5,805 5,653 5,343 1,680 0

Official creditas 2,552 2,737 2,948 2,937 1,223 0
Multilateral loans 1,417 1,633 1,836 2,039 761 0
International Bank f a Reconstruction
and Development (BRD) 1,417 1,633 1,836 2,039 761 0

') For footnote, please see end of Table.

97
13.5 GOVERNMENT FOREIGN DEBTS*)
Mill. US$

Type of loan/creditor 1984 1985 1986 1987 1988 1989

Bilateral loans 1,135 1,103 1,112 897 461

Private creditors 3,702 3,068 2,705 2,406 458
Commercial banks 3,153 2,620 1,942 1,721 326
Other private creditors. 549 448 763 686 132

*) Medium- and long-term debts. As at the end of the year.

98
14 WAGES AND SALARIES

In Socialist Romania wages were strictly regulated by the state. In the government sector they
were determined by whether the employees belonged to the group of manual workers or to the
group of technicians, scientists and other specialists. The level of wages was also dependent
on the sector, the degree of difficulty of the work and other factors. Basic wages were laid down
for all these categories, but in practice they were often not paid in full because deductions were
made when the unrealistically high production targets were not met.

In this system of wages, the distribution of labour over the country and to the various sectors
was not controlled by the relative wage level. Mobility was restricted by the compulsory labour
passes. Although in theory workers had the right to change their job voluntarily, no applicant
was taken on if his previous employer had not issued such a pass. By holding up the issue of
this document, the employer could at least defer a change of job. In the case of the agricultural
cooperatives a change of job even required proof that the worker in question was not needed in
his current job. A further restriction was imposed on mobility by the system of "closed towns",
where only persons with close relatives there or with evidence of special skills could move (or
work). At the end of the 1970s, virtually all Romanian towns with more than 100,000 inhabitants
were closed in this way.

After the end of the Ceausescu regime the system of closed towns was abolished in the first
half of 1990. In order to offset the price increases wages in the firms still owned by the state
were increased several times over. Even so, real wages in this sector fell rapidly, because in
the first one and a half years after the revolution there was a roughly fivefold increase in prices
but wages rose only by a factor of two and a half. In the private sector, wages are settled by
voluntary agreement.

14.1 INDEX OF NOMINAL AND REAL WAGES*)

1985 = 100

Index group 1986 1987 1988 1989

Nominal wages.. 101.0 101.6 104.2 108.4

Real wages 100.3 99.7 99.7 102.8

') Annual average.

99
14.2 I N D E X O F A V E R A G E E A R N I N G S BY A R E A O F T H E E C O N O M Y * )

1980 = 100

Index group 1985 1986 1987 1988 1989

Total 104 105 106 107 109

Manual workers 104 105 105 106 109
Agriculture 112 112 108 110 109
Forestry 105 113 105 111 112
Production industries 108 109 111 111 114
Construction 88 89 90 88 91
Transport 103 104 104 106 107
Communications 102 102 101 101 102
Health and social welfare, physical education., 102 103 104 103 104
Education, culture and art 97 95 79 87 87
Science and research 138 143 144 144 145
Local authorities, housing, services 110 113 121 128 136
Administration 87 87 87 84 82
Other areas 119 120 118 119 119

*) Annual average.

Between 1985 and 1989 average net monthly earnings went up by a total of 8% to 3,063 I. In
1989 earnings were 2 1 % above average in the construction industry and 6% above average in
science and research. On the other hand, earnings in forestry and the distributive trades were
15% and 14% respectively below the average.

14.3 AVERAGE NET MONTHLY EARNINGS BY AREA OF THE ECONOMY*)

I

Area 1985 1986 1987 1988 1989

Total 2,827 2,855 2,872 2,946 3,063

Agriculture 2,752 2,790 2,798 2,817 2,983
Forestry 2,345 2,503 2,418 2,440 2,617
Production industries 2,824 2,836 2,835 2,946 3,037
Construction 3,288 3,388 3,504 3,577 3,697
Distributive trades 2,419 2,428 2,435 2,479 2,629
Transport 2,935 3,000 3,038 3,062 3,195
Communications 2,570 2,575 2,621 2,679 2,816
Hearth and social welfare, physical education. 2,682 2,679 2,675 2,725 2,870
Education, culture and art 2,794 2,812 2,835 2,874 2,980
Science and research 3,040 3,076 3,131 3,123 3,253
Local authorities, housing, services 2,647 2,691 2,707 2,773 2,945

100
14.4 AVERAGE NET MONTHLY EARNINGS OF MANUAL WORKERS BY
AREA OF THE ECONOMY*)
I

Area 1985 1986 1987 1988 1989

Total 2,746 2,771 2,791 2,867 2,980

Agriculture 2,664 2,703 2,711 2,737 2,903
Faestry 2,303 2,342 2,226 2,310 2,484
Production industries 2,769 2,774 2,774 2,883 2,971
Construction 3,205 3,293 3,422 3,492 3,599
Distributive trades 2,336 2,347 2,354 3,492 2,538
Transport 2,901 2,961 2,999 2,399 3,158
Communications 2,501 2,509 2,550 3,024 2,751
Local authorities, housing, services. 2,559 2,599 2,610 2,676 2,854

*) Annual average.

T h e net earnings c a t e g o r y up to 2,000 I comprised 4 9 % of e m p l o y e e s in 1 9 8 0 . By 1989 this

proportion h a d s h r u n k to 7 % . T h e over 4,000 I category c o m p r i s e d a m e r e 3 % of e m p l o y e e s in
1980 but 1 2 % in 1 9 8 9 .

14.5 EMPLOYEES BY NET EARNINGS CATEGORY*)

%

Category (lei) 1980 1984 1985 1987 19891'

Total 100 100 100 100 100

Less than 1,300.. 3.8 } 3.6 3.8 4.4
1,301-1,500 8.2} 6.8
1,501-1,700 13.1 5.2 4.5 5.0
1,701-2,000 23.5 14.4 12.1 12.5
2,001 - 2,500 28.8 32.0 30.8 30.6 25.1
2,501 - 3,000 12.1 } 22.3 21.8 25.7
3,001-3,500 5.4) 44.8 13.6 13.2 19.4
3,501-4,000 2.6) 6.7 6.5 11.5
4,001 and over... 2.5) 6.2 6.0 11.5

') March.
1) September.

Of the selected o c c u p a t i o n s , coal miners had well a b o v e - a v e r a g e m o n t h l y e a r n i n g s in 1990

with 5,681 I. At 5,860 I, t h e m o n t h l y earnings of specialist t e a c h e r s of m a t h e m a t i c s , l a n g u a g e s
a n d literature at upper s e c o n d a r y level were only 3 % higher.

101
14.6 AVERAGE MONTHLY EARNINGS OF EMPLOYEES BY SELECTED
OCCUPATIONS*)
I

Area/branch, occupation 1985-1986 19901'

Agriculture and forestry

Supervisas male 4,230 4,560 a '
Farmworkers male 2,114 2,794a»
Faest wardens male 2,412 2,522
female 2,024 2,522
Loggers 2,946 2,747
Mining, extraction of rocks and earth
Coal mining
Miners 2,740 5.681
Oil and gas extraction
Oil and gas engineers.. 3,850 4,220
Other mining and prospecting activities
Quarry workers 2,375 2,649
Manufacturing industries
Food industries
Butchers 2,434 2,434
Dairy wakers and millers 2,199 2,610
Clothing and footwear industries
Clothing industry
Cutters 2,111 2,649
Footwear industry
Machine cutters, lastmakers and machine stitchers 2,238 2,551
Paper industry
Wood grinders 2,580 2,991
Leather industry
Tanners 2,659 2,903
Iron and steel production
Skilled steelworkers, hot rollers 2,688 3,108
Metal goods industry
Machine fitters, welders 2,717 3,216
Electronics industry
Electronics engineers 2,912 3,314
Vehicle construction (repair wakshops)
Mota vehicle and repair mechanics 2,258 2,659
Building industry
Reinfaced concreters 2,942 2,932
Energy supply
Power station engineers 3,680 4,050
Trade, credit institutions
Retail trade
Sales staff 2,290 2,680
Credit institutions
Bank cashiers, book-keepers 2,040 2,425

For footnotes, please see end of Table.

102
14.6 AVERAGE MONTHLY EARNINGS OF EMPLOYEES BY SELECTED
OCCUPATIONS*)
I

Area/branch, occupation 1985-1986 19901'

Transport
Rail transport
Engine drivers
4,030 4,390
Passenger transport
Conducta
4,230 4,560
Air transpat
Air traffic controllers
1,810 3,175
Communications
Postmen
2,040 2,425
Public services
General administration
Programmers
3,680 4,050
Data analysts, office staff
2,040 2,485
Health care
General practioners
3,520 3,880
Dentists
2,690 3,065
Nurses
2,225 2,615
Education
Specialist teachers f a mathematics, languages and literature
at upper secondary level
5,610 5,860
Specialist teachers f a mathematics, languages and literature
at middle secondary level
3,060 3,420
Primary school teachers
2,290 2,680
Other services
Hotel and catering industry
Hotelreceptionists
2,290 2,680
Chambermaids
1,400 2,014

*) October.
1) Prevailing monthly earnings rates.
a) Male and female.

103
15 PRICES

An important feature of Socialist Romania's economic system was central price formation. As
there was no market in the western sense of the term, prices were calculated administratively
and laid down in binding form by the State Committee for Prices. Insufficient account was
therefore taken of the relative shortages of goods. In the consumer goods sector, where there
were increasing difficulties in supplying the population, this led to a supply shortfall and the
creation of black markets.

Price formation was based on a sector's average costs, even though it was not possible to
determine these fully. "Scarce" goods (e.g. motor vehicles) were subject to price supplements
in order to curb demand. The instrument used for this purpose was the graduated turnover tax
applied to the various groups of goods. Basic foodstuffs (provided they were of Romanian
origin) and housing were relatively cheap, while industrial goods of any kind and imported
goods were expensive. Price formation was based not solely on economic criteria but also to a
large extent on political objectives. In the past the prices of raw materials in particular were kept
down by state subsidies, with even the final prices being lower than if they had been based on
a genuine cost calculation. Reform measures brought very little change to this centralism. It
was not possible to find more realistic valuation standards and more elastic price formation
mechanisms.

As in other Socialist countries, a distinction was made in Romania too between "producer
prices" (i.e. wholesale prices), "delivery prices" in goods trade between firms and "retail prices"
for consumer goods. In addition, there were special tariffs for services. A further distinction was
made between fixed prices or tariffs, which were not subject to change, and limited prices,
which represented maximum prices but could be adjusted downwards. Prices and tariffs could
be uniform throughout the country but could also be varied from region to region.

There was free, market price formation only on the "farmers' markets", where private farmers
sold their produce. In the 1970s free price formation was restricted here too by the setting of
guide prices, from which the actual prices were supposed to diverge only to a certain extent.

After the revolution, price liberalization was introduced in November 1990, involving the freeing
of many prices and the raising of prices that were still tied. Although other prices (for basic
foodstuffs, rents and energy) were not to be freed until spring 1992, the partial liberalization had
the effect that by October 1991 consumer prices had risen by 250% compared with the
previous year.

15.1 COST-OF-LIVING INDEX*)

1985 = 100

Index group 1986 1987 1988 1989

Total 101 102 105 105

State and cooperative sector 100 101 103 103
Private farmers'markets 108 119 128 132
Privaste markets f a services and craft trades 103 103 111 109

*) Annual average.

104
The cost-of-living index for goods from the state and cooperative sector went up by 46%
between 1970 and 1989. Above-average increases were recorded for food and services, the
prices of which were 62% higher in 1989 than in 1970.

As already mentioned, prices increased rapidly after the price reforms were launched in
November 1990. Altogether, consumer prices in October 1991 were 253% higher than at the
corresponding time a year previously. There were above-average increases of 287% and 261 %
for food and other consumer goods respectively, while that for services amounted to 163%.

15.2 COST-OF-LIVING INDEX FOR GOODS AND SERVICES FROM THE

STATE AND COOPERATIVE SECTOR*)
1970 = 100

Index group 1985 1986 1987 1988 1989

Total 141 142 142 145 146

Food 162 161 163 163 162
Other goods 117 117 117 118 119
Services 155 154 155 164 162

*) Annual average.

15.3 AVERAGE PRICES OF SELECTED AGRICULTURAL PRODUCTS IN

1990 ON FREE MARKETS IN 95 TOWNS
lei

Cattle, live 1 kg 35.86 33.33 33.10

Pigs
Slaughter animals, live 1 kg 62.49 51.62 51.10
Reproductive animals1' head ,114.13 1,105.61 95Z67
Sheep, live 1 kg 45.96 47.88 44.90
Boiling fowl, live 1 kg 81.67 80.07 79.14
Turkeys, live 1 kg 101.37 100.81 99.96
Hens' eggs per egg 3.81 2.03 2.45
Milk, sweetened 11 11.67 11.58 11.66
Condensed milk (cream) 1 kg 61.29 60.72 61.10
Fresh cow's milk cheese 1 kg 44.04 47.32 47.70
Sheep's milk cheese 1 kg 76.15 67.37 71.98
Honey 1 kg 86.20 89.54 99.93 a)

For footnotes, please see end of Table.

105
15.3 AVERAGE PRICES OF SELECTED AGRICULTURAL PRODUCTS IN
1990 ON FREE MARKETS IN 95 TOWNS
lei

Wheat 1kg 9.32 7.57 7.34

Maize 1kg 9.13 7.92 8.12
Potatoes
Summer harvest 1kg 14.02 8.66 a)
Winter harvest 1kg 8.29 7.40 8.49
Onions
Green 1kg 16.24 15.01 14.88
Dried 1kg 8.67 7.87 10.40
White cabbage, early harvest.. 1kg 8.10 14.21 7.57
Beans, dried 1kg 30.10 27.40 28.98
Tomatoes 1kg 41.62 15.55
Peppers, green 1kg 92.02 20.33
Spinach 1kg 17.44 7.80 10.04
Lettuce, green 1kg 10.00 12.80 13.95
Garlic, dried 1kg 30.52 29.82 32.09
Cucumbers, fresh 1kg 33.56 20.37
Carrots and parsley 1kg 11.87 27.37 15.76
Apples 1kg 11.67 16.52 13.22
Strawberries 1kg 38.95 24.80 a)
Grapes 1kg 34.82 21.37
Nuts, with shell 1kg 33.92 41.92 40.75

1) Under two months old.

a) As at September.

15.4 PRICES OF SELECTED ENERGY PRODUCTS*)

lei

Product Unit 1985 1986 1987 1988 1989 1990

Crude oil, domestic

production 11 2,000 2,000 2,000 2,000 2,000 2,000
Petrol 11 9.0 9.0 9.0 9.0 9.0 9.0
Diesel 11 7.0 7.0 7.0 7.0 7.0 7.0
Fuel oil
heavy 11 1,825 1,825 1,825 1,825 1,825 1,825
light It 1,890 1,890 1,890 1,890 1,890 1,890
Natural gas 1,000 m3 1,000-1,500 1,000-1,500 1,000-1,500 1,000-3,000 1,000-1,500 1,000
Liquified gas, in bottles 11 2,300 2,300 2,300 2,300 2,300 2,300
Brown coal (lignite) 11 375 375 375 375 375
Electricity 1 kWh 0.65-1.00 0.65-1.00 0.65-1.00 0.65-3.00 0.65-2.50 0.65

*) 1 January.

106
The terms of trade are defined as the ratio of export prices to the change in import prices and
are thus calculated as the quotient of the export and import price indices (x 100). Depending on
whether the value of the terms of trade is above or below 100, export prices haverisen more or
less than import prices compared with the base year. From the point of view of goods trade,
increasing terms of trade mean that the proceeds of a constant volume of exports can be used
to import and pay for more goods. Terms of trade above 100 are therefore described as
favourable because they indicate that the external trade exchange ratio has improved
compared with the base year. Terms of trade below 100 indicate the opposite. In trade on the
basis of convertible currencies the terms of trade for Romania rose to 152 by 1988, before
falling back to 143 in 1989.

15.5 IMPORT AND EXPORT PRICE INDICES, TERMS OF TRADE*)

1984 = 100

Index group 1985 1986 1987 1988 1989

Import prices.... 99 77 81 75 87
Export prices.... 99 91 100 113 123
Terms of trade. 100 118 124 152 143

*) C o n v e r t i b l e c u r r e n c i e s only; on U S $ basis. A n n u a l a v e r a g e .

107
16 NATIONAL ACCOUNTS

Romania's national accounts are compiled by the Central Statistical Board of Romania,
Bucharest, and published in both national and international sources. The Tables given below
are based mainly on national publications.

Both the SNA (A System of National Accounts and Supporting Tables - New York, 1964 or
revised version 1968), devised for market-economy countries, and the MPS (System of Material
Product Balances - New York, 1969), which is used by the other Socialist-Communist countries,
are used in drawing up Romania's national accounts.

An important difference between the MPS and the SNA is the coverage of the sectors of
production. The MPS does not include the productive activity of the state, private non-profit
institutions, domestic services, housing rental, credit institutions, insurance and various other
services sectors. From the point of view of production (generation of income account) it
therefore covers only the "material product" sectors, which include agriculture and forestry,
production industries, construction, trade, transport and communications, catering and other
material product services. The consistency and uniformity of content between the generation
and use of income accounts in this system means, however, that goods produced in the
material product sector have also to be shown in the use of income account even if the end-
users do not belong to that sector. An overview of the concepts and methods used in the MPS
is given by a methodological study1) published by the United Nations and drawn up by the
member countries of the Council for Mutual Economic Assistance (Comecon). Another
document2) sets out the conceptual differences from the SNA. Various official and unofficial
sources also give explanatory notes on important national accounts variables and a limited
amount of information on the method of calculation (1990 Statistical Yearbook for the Federal
Republic of Germany, p. 668 et seq., preliminary remarks to the national accounts of the
German Democratic Republic). An explanation of the SNA concepts can be found in the
preliminary remarks to the national accounts of the Federal Republic of Germany in the 1991
Statistical Yearbook for unified Germany (p. 623 et seq.), which more or less follow the United
Nations' recommendations.

The following Tables give a picture of the development of produced national income at current
and constant prices and of the generation of national income, together with trends in gross
domestic product and its resources and uses in accordance with the SNA.

1) United Nations (ed.), Basic Principles of the System of Balances of the National Economy, Studies in Methods, Series F No
17/Rev.1, New Yak 1989.
2) United Nations (ed.), Comparisons of the System of National Accounts and the System of Balances of the National
Economy, Part One, Conceptual Relationships, Studies in Methods, Series F No 20, New Yak 1977.

108
16.1 DEVELOP MENT OF NATIONAL INCOME
in accordance with the MPS

National income

at current prices at constant prices Inhabitant

Year

total per capita total per capita

Mrd. I I 1980 = 100

1980 513.6 23,133 100 100 100

1985 67Z0 29,569 116 113 102
1986 694.3 30,421 119 116 103
1987 697.2 30,390 120 116 103
1988 697.4 30,251 118 113 104
1989 63Z6 27,325 108 104 104
Change over the previous year/annual growth rate, %
1987 + 0.4 -0.1 +0.8 ±0.0 + 0.5
1988 + 0.0 -0.5 -1.7 -2.6 + 0.5
1989 -9.3 -9.7 -8.5 -8.0 + 0.4

1980/1985 Α.. + 5.5 + 5.0 + 3.0 + 2.5 + 0.5

1985/1989 Α.. -1.5 -Z0 -1.8 -2.1 + 0.5

16.2 GROSS DOMESTIC P RODUCT AT MARKET P RICES

Gross domestic product at market prices

at 198ͻprices Price components Inhabitants

Year at current prices

total per capita

Mrd. I I 1985 = 100

1981.. 623.7 700.6 31,347 89 98

1983.. 768.7 77Z6 34,262 100 99
1985.. 817.4 817.4 35,977 100 100
1987.. 845.1 844.1 36,796 100 101
1988.. 857.0 839.8 36,434 102 102
1989.. 798.0 790.8 34,160 101 102
Change over the previous year/annual growth rate%
1987.. + 0.8 + 0.8 + 0.4 -0.1 + 0.5
1988.. + 1.4 -0.5 -1.0 + 1.9 + 0.5
1989.. -6.9 -5.8 -6.2 -1.1 + 0.4

1981/1985 A + 7.0 + 3.9 + 3.5 + 2.9 + 0.4

1985/1989 A -0.6 -0.8 -1.3 + 0.2 + 0.5

109
16.3 GENERATION OF NATIONAL INCOME
in accordance with the MPS

of which

Year National income

Agriculture Production Construction Transport and
industries communications

at current prices
Mrd. I

1980 513.6 70.8 305.8 43.7 35.4

1985 67Z0 104.1 396.2 55.4 43.1
1986 694.3 100.2 416.7 57.4 45.2
1987 697.2 95.5 417.3 58.3 45.8
1988 697.4 103.4 411.3 56.9 47.7
1989 53Z6 96.2 367.3 45.1 47.5

the previous year/annual <

1987 + 0.4 -4.7 + 0.1 + 1.6 + 1.3

1988 + 0.0 + 8.3 -1.4 -2.4 + 4.1
1989 -9.3 -7.0 -10.6 -20.7 -0.4

1980/85 A. + 5.5 + 8.0 + 5.3 + 4.9 + 4.0

1985/89 A. -1.5 -2.0 -1.8 -5.0 + 2.5

at constant prices
1980 = 100

1980 100 100 100 100 100

1985 116 112 115 119 120
1986 119 108 120 124 124
1987 120 100 122 126 126
1988 118 106 117 123 133
1989 108 96 108 97 131

the previous year/annual <

1987 + 0.8 -7.4 + 1.7 + 1.6 + 1.6

1988 -1.7 + 6.0 -4.1 -Z4 + 5.6
1989 -8.5 -9.4 -7.7 -21.1 -1.5

1980/85 A. + 3.0 + 2.3 + 2.8 + 3.5 + 3.7

1985/89 A. -1.8 -3.8 -1.6 -5.0 + 2.2

110
16.4 GENERATION OF GROSS DOMESTIC PRODUCT AT MARKET PRICES
in accordance with the MPS

of which of which
Gross Agriculture,
domestic forestry and
Year Industry1'
product at fisheries Construction Services Transport and
market prices communications

at current prices

1980 616.9 78.0 389.6 47.4 149.3 43.6

1985 817.4 114.3 517.3 57.9 185.8 55.4
1986 838.6 106.8 549.5 59.5 18Z3 57.0
1987 845.1 103.4 55Z8 60.8 188.9 58.0
1988 857.0 115.6 547.5 60.4 193.9 60.3
1989 798.0 110.9 498.7 50.6 188.4 60.0

iver the previous year/annual average gr

1987 + 0.8 -3.2 + 0.6 + 2.2 + 3.6 + 1.8

1988 + 1.4 + 11.8 -1.0 -0.7 + 2.6 + 4.0
1989 -6.9 -4.1 -8.9 -16.2 -2.8 -0.5

1980/1985 A. + 5.8 + 7.9 + 5.8 + 4.1 + 4.5 + 4.9

1985/1989 A. -0.6 -0.8 -0.9 -3.3 + 0.3 + 2.0

% shares

1980.. 100.0 1Z6 63.2 7.7 24.2 7.1

1985. 100.0 14.0 63.3 7.1 22.7 6.8
1986. 100.0 1Z7 65.5 7.1 21.7 6.8
1987. 100.0 12.2 65.4 7.2 22.4 6.9
1988. 100.0 13.5 63.9 7.0 22.6 7.0
1989. 100.0 13.9 62.5 6.3 23.6 7.5

1) Energy and water supply, mining, manufacturing industry, construction.

111
16.5 USE OF GROSS DOMESTIC PRODUCT AT MARKET PRICES

Balance of
Gross
Gross fixed expats and
domestic Private State Final domestic
Year capital imports of
product at consumption consumption utilization
formation goods and
market prices
services

at current prices
Mrd. I

1980 616.9 a) 357.3 31.1 245.7 634.1 -34.8

1985 817.4 a) 459.9 32.0 269.8 761.7 + 33.2
1987 845.1 489.1 27.8 268.9 785.8 + 59.4
1988 857.0 501.4 31.0 243.3 775.7 + 81.4
1989 798.0 508.9 32.9 213.2 755.0 + 43.0
1990 836.7 608.6 40.7 289.3 938.6 -101.9

Change over the previous year/annual average growth rate, %

1988 + 1.4 + 2.5 + 11.5 -9.5 -1.3

1989 -6.9 + 1.5 + 6.1 -12.4 -Z7
1990 + 4.8 + 19.6 + 23.7 + 35.7 + 24.3

1980/1985 A. + 5.8 + 5.2 + 0.6 + 1.9 + 3.7

1985/1989 A. + 0.5 + 5.8 + 4.9 + 1.4 + 4.3

% shares

1980.. 100.0 a) 57.9 5.0 39.8 10Z8 -5.6

1985.. 100.0 a) 56.3 3.9 33.0 93.2 + 4.1
1987.. 100.0 57.9 3.3 31.8 93.0 + 7.0
1988.. 100.0 58.5 3.6 28.4 90.5 + 9.5
1989.. 100.0 63.8 4.1 26.7 94.5 + 5.4
1990.. 100.0 72.7 4.9 34.6 112.2 -12.2

a) Including a statistical difference.

112
17 BALANCE OF PAYMENTS

The balance of payments gives a summary picture of economic transactions between residents
and non-residents. It is divided into the current account and the capital account. The current
account shows the goods and services transactions and the transfers that took place in the
reference period. Transfers include the unrequited counterparts to goods and capital
movements. The sum of the balances of trade in goods and services and transfers gives the
balance on current account. In the capital account, capital movements are usually shown as
changes in the stock of the various types of claims and liabilities. The balance on capital
account is an increase (+) or decrease (-) in net foreign assets.

Like any closed accounting system, the balance of payments is in principle always in
equilibrium. The following equation shows the mathematical relationship between the above-
mentioned parts of the balance of payments:

Balance on current account

= Balance on capital account

(+ Unsettled amounts)

As a rule, mathematical signs are used only with net figures and changes. In the capital
account, a plus sign in front of changes always means an increase in claims or liabilities and a
minus sign a decrease therein. (In the case of net figures for changes in claims and liabilities, a
plus sign always means an increase and a minus sign a decrease in net assets.)

The trends and structures shown in the balance of payments figures diverge in many cases
from foreign trade statistics and from the national accounts data on trade in goods and
services. This is due on the one hand to the different additions, subtractions and conversions
made to trade in goods and services in the balance of payments and the national accounts and
on the other hand to conversions into different units of account which over the years have not
maintained their reciprocal value ratios. Divergences from the foreign trade statistics (goods
trade heading in the current account) can be attributed to such things as the conversion of cif to
fob values, corrections and additions, and conversion into different units of account. For these
and other reasons, international comparisons are not possible or only possible with
reservations.

The data shown below are based on publications of the International Monetary Fund/IMF
(International Financial Statistics). The breakdown is broadly in line with the methodology set
out in the IMFs "Balance of Payments Manual".

113
17.1 BALANCE OF PAYMENTS
Mill. US$

Survey item 1982 1983 1984 1985 1986

Current account

Trade in goods (fob values) exports 11,559 11,512 12,646 12,167 12,543
imports 9,745 9,643 10,334 10,432 10,590
balance + 1,814 + 1,869 + 2,312 + 1,735 + 1,953
Trade in services income 944 824 957 849 928
expenditure 1,718 1,533 1,550 1,345 1,392
balance -774 -709 593 496 464
Transfers (net) private
government
balance
Balance on current account + 1,040 +1,106 +1,719 + 1,239 + 1,489

Capital account (net figures)

Direct investment
Portfolio investment
Other capital investment
Capital transactions
of the state + 44 + 78 + 48 + 226
of commercial banks + 189 + 1,070 + 1,643 + 1,322 + 909
of other sectors
Other capital transactions1' + 755 + 388 - - -
Offsetting item to monetary reserves3 and monetary
reserves3' + 52 -378 + 128 -309 + 612
Balance on capital account + 1,040 + 1,158 + 1,819 + 1,239 + 1,521
Unsettled amounts +2 -100 -32

1) Liabilities to foreign monetary authorities and state-backed borrowing to equalize the balance of payments.
2) Counterpart entries to the allocation of special drawingrights,the monetary authorities' gold transactions with residents and the
offsetting of valuation-related changes in monetary reserves.
3) Change in holdings, including valuation-related change.

114
18 SOURCES*)

Publisher: Title:

Directia Centrala d e Statistica, Bucharest Anuarul Statistic al Republicii Sociliste R o m a n i a

*) National sources only; the reader is referred to international statistical sources (see list in the Annex to the "Vierteljahreshefte
zur Auslandsstatistik") and to other Federal Statistical Office publications on foreign countries' statistics (see back cover).

Publications of other Federal Offices on Romania

Bundesstelle für Aussenhandelsinformation (BfAl)

D-W-5000 Köln 1, Blaubach 13, tel. (0221) 2057-316

Communications

10.124.84.154 Economic situation in Romania

10.131.85.154 Economic situation in Romania

Information on eastern Europe

13.449.84.154 Economic planning 1984

15.269.85.154 Economic data sheet Romania

Plus legal and customs information (on request)

Bundesverwaltungsamt
D-W-5000 Köln 60, Barbarastr. 1, tel. (0221) 7780-0

Leaflets for persons working abroad and emigrants

Leaflet No 114 - Romania - Situation as at March 1982

Sources used by the IALA:

Acker, Udo:

Das ländliche Genossenschaftswesen in Rumänien von seinen Anfängen bis heute. Acta
sientarium sacialium, Graf ing 1971, Vol. 4

115
Antal, Endre:
Der Aussenhandel der Bundesrepublik mit SCidosteuropa - Rumänien. In: Südosteuropa,
Zeitschrift für Gegenwartsforschung (1990) 3-4, p. 260 ff.

Entwicklungstendenzen des Agrarhandels der BRD mit den Staatshandelsländern. In:

Osteuropa Wirtschaft (1990) 3, p. 224-246

Gabanyi, A. U.:

Zur Lage der deutschen Minderheit in Rumänien. In: Südosteuropa, Zeitschrift für
Gegenwartsforschung (1991) 10, p. 493-517

Gumpel, W.:

Ursachen der Krise der rumänischen Wirtschaft. In: Südosteuropa Mitteilungen (1990)
1, p. 22 ff.

Intescu, V., Giurcaneanu, C , Banu, Α.:

Geographia Republica Romania. Bucharest 1968, p. 12

Hunya, Gabor:

Privatisierung und Privatwirtschaft in Rumänien. In: Südosteuropa (1990) 11-12,

p. 643 ff.

Lhomel, Edith:

Roumanie 1990. In: Le courrier des pays de l'est. Paris (1991)

Mavrocardat, Georgeta:

Die Böden Rumäniens. Institut für kontinentale Agrar- und Wirtschaftsforschung der
Justus-Liebig-Universität Giessen. Vol. 58,1971

Rautei, C:
Intensivierung der Landwirtschaft und Umwelt in Rumänien. In: Internationale Agrar-
Industrie-Zeitschrift (1990) 4, p. 285-286

116
Schmutzler, G. E.:

Südosteuropa-Handbuch Vol. II. Rumänien, Land- und Forstwirtschaft, Munich 1977

Schneider, Matthias:

Der Agrarsektor Osteuropas im Umbruch. Oesterreichsiches Institut für

Wirtschaftsforschung, Monatsberichte (1991) 1, p. 37 ff.

Schubert, Michael:

Umbruch in Rumänien. Volkswirtschaftliche Reformsätze und aussenwirtschaftliche

Orientierungen. In: Südosteuropa (1990), p. 301

Sonneberg, Joachim:

Rumänien, Bauern werden Landbesitzer. In: Horizont, Berlin (1991) 15, p. 38-39

Vlad, Mircea:

Oekologische Sorgen der rumänischen Landwirtschaft. Osteuropa-Information (1987)

70-71, p. 79-82

..., Bericht über die Entwicklung der Landwirtschaft in Rumänien, Institut für
Ausländische Landwirtschaft, Berlin 1976,1980,1985

Directives of the Party Conferences of the RCP on the development of the national
economy, Bucharest Political Press - Xllth to XlVth Party Conference

..., Erweitertes Plenum des Landesrates der Landwirtschaft, Nährungsgüterindustrie,

Forstwirtschaft und Wasserwirtschaft. In: Neuer Weg, Bucharest (1989) of 12.8.

..., Kommunique über die Erfüllung des einheitlichen Landesplanes der sozialistischen
Entwicklung der SSR für das Jahr 1988. In: Neuer Weg, Bucharest (1989) of 5.7.

..., Rumänien. In: Agra-Europe (1991) 37, Country report, p. 36

..., Rumänien. Osteuropa-Zeitschrift (1991) 7, p. 405

..., Rumänien. Land im Blick. In: Märkte der Welt. Bundesstelle für
Aussenhandelsinformation, Berlin (1992) 14, p. 1-16

..., Strategie der Rekonstruktion in der Landwirtschaft. In: Tribuna economica, Bucharest
(1991)37, p. 6

..., Vortrag des rumänischen Ministers für Reformen, Adrian Severin, vor der
Südosteuropa-Gesellschaft. In: Südosteuropa-Mitteilungen, Munich (1991) 2, p. 156 ff.

117
 ..., Wirtschaftsreformen in Rumänien. In: Agrarinformationsdienst, Institut für
landwirtschaftliche Information und Dokumentation, Berlin (1991) 1, p. 9

Voprosi ekonomiki (1991) 6, p. 119-121

Regular analyses of the newspaper "Neuer Weg" from 1990 to April 1992

Statistics:

Anuarul Statistic al Romania, Bucharest - various years

The state of Romania's economy and the socio-economic course in 1989. Communiqué
of the National Commission for Statistics, Romania

Social and economic state of Romania in the year 1990. National Commission for
Statistics, Romania 1991

118
European Commission

Country profile - Romania 1992

Luxembourg: Office for Official Publications of the European

Communities

1994-118 pp.-17x24 cm

ISBN 92-826-7316-2

Price (excluding VAT) in Luxembourg : ECU 12

During the 1980s Romania completely wiped out its foreign debts,
which had stood at US$ 11 billion in 1981. To that end, there was a
severe cutback on imports and a sustained export drive. The
concomitant deterioration in the supply of the population - even with
basic foodstuffs - was tolerated by the leadership of that time, as was
the obsolescence of production plant and infrastructures.

The long-standing preferential treatment of heavy industry also

contributed to the poor state of the Romanian economy, as observed
by experts after the end of the Ceausescu regime. In the
petrochemical industry extensive oil-refining capacity was created,
which in view of Romania's declining oil production was unjustified.
On top of that, there were the costly prestige projects in the urban
development and transport infrastructure sectors, which placed an
intolerable burden on the country's resources without bringing any
tangible benefits.

In view of the sorry state of the Romanian economy, a solution can

only be found with the help of international loans. The World Bank
said it was prepared to support projects in the energy, roadbuilding,
telecommunications and health sectors but not in the already
behemoth-like heavy industry sector.

An increased inflow of foreign capital is still hampered by the delay in

changing over to a market-economy system.
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 During the 1980s Romania completely wiped out its foreign debts,
which had stood at US$ 11 billion in 1981. To that end, there was a
severe cutback on imports and a sustained export drive. The g
concomitant deterioration in the supply of the population - even with °°
ι
basic foodstuffs - was tolerated by the leadership of that time, as was S
en
the obsolescence of production plant and infrastructures. ^

The long-standing preferential treatment of heavy industry also ό

contributed to the poor state of the Romanian economy, as observed
by experts after the end of the Ceausescu regime. In the
petrochemical industry extensive oil-refining capacity was created,
which in view of Romania's declining oil production was unjustified.
On top of that, there were the costly prestige projects in the urban
development and transport infrastructure sectors, which placed an
intolerable burden on the country's resources without bringing any
tangible benefits.

In view of the sorry state of the Romanian economy, a solution can

only be found with the help of international loans. The World Bank
said it was prepared to support projects in the energy, roadbuilding,
telecommunications and health sectors but not in the already
behemoth-like heavy industry sector.

An increased inflow of foreign capital is still hampered by the delay in

changing over to a market-economy system.

Price (excluding VAT) in Luxembourg: ECU 12 T^RN RP-APf-i-?^!!^-?

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