THE FAILURE OF INDUSTRIALISM IN COMMUNIST ROMANIA

Parean Mihai - Olimpiu ()
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Parean Mihai - Olimpiu: Universitatea de Vest din Timișoara, Facultatea de Economie și de Administrare a Afacerilor

Annals of Faculty of Economics, 2012, vol. 1, issue 1, 345-351

Abstract: This work aims to present the exact thinking and action of the Romanian Communist leaders that had as declared purpose the Romanian societyâ€(tm)s propseprity company. This falls into the line drawn by the Communists, but in the case of Romania the ambitions were far above the country\'s potential. In order to understand the situation of the national economy in the past two decades we must take into account the manner in which they have carried out economic policies in the Communist leadership. This marched on exacerbated development of manufacturing industry by capital goods to the detriment of the goods consumer industry, which generated a series of social tensions. The economic objectives of Communist Romania were limited for the exacerbated development of the industrial sector. Its presence of economic policy measures implemented in our country shows that the authorities had in mind a self-sufficient industrialization by providing greater care than conventional industries, with high energy consumption. This unprecedented enhancement for national economy was made possible by the contracting of foreign credits And this began to give increasing and more frequent misfires when the world was hit by the resouces of the crisis. The falling of the national economy has been Romania unable to repay loans on time. The obsessive decision of the authorities was to fully pay off foreign debt in oder to allow new investment in construction of some megalomaniac industrial sights, that could hardly be effective. Thus, there was no link between the overall targets of national economic policies and the needs of the company. In this work are chronologically and factually shown all the decisions adopted in the industrial policy in Romania.Certainly that at the beginning of massive industrialization results seemed to be at least some optimistic, but after the population had passed through various serious situations (floods, earthquake) to what degree very hard decisions devoid of rationality regarding the impulse energofag industry. Inevitably the complaints gathered, the economic system implemented by the Romanian communist authorities collapsed. Eventually, the economic system imposed by Ceauºescu colapsed because of his desire to increase in the country\'s industrialization. Basically he showen the limits. This paper seeks to show how faithfully the faulty module was designed during the development of the country\'s Communist leadership.

Keywords: industrialization; communism; Romania; national economy; energofag industry (search for similar items in EconPapers)
JEL-codes: E L N O P (search for similar items in EconPapers)
Date: 2012
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