With a GDP of $392.8 billion and still growing, Romania is sure to show major advancements in the years to come in the 21st century.
Friday 5 June 2015
Conclusion
In conclusion, it seems that Romania is a very economically powerful country with many more similarities with China than North Korea, especially with its economic background resembling a much more industrialised version of the Asian giant. Romania is a city with a diverse and rich history consisting of its very advanced beginnings, its occupation by both the Nazis and Soviets and the influences both races had on the country and its transition into Western Democracy. Going through clingy dictators, horrifying totalitarians, presidents and prime ministers, Romania has greatly improved and gone through various economic statures before finally reaching the point that it has kept to this day.
With a GDP of $392.8 billion and still growing, Romania is sure to show major advancements in the years to come in the 21st century.
With a GDP of $392.8 billion and still growing, Romania is sure to show major advancements in the years to come in the 21st century.
Comparison to China and North Korea
Romania in a way is very similar to both these countries; it started off as a core-command economy with a heavy focus on dictatorship. This grew once Nazi Germany occupied various parts of Romania as part of their alliance during the Second World War. Romania then started to follow a path closer to China than North Korea as it started to gain Soviet influence and move towards Communism. Furthermore, Romania started to drop in GDP during its communist period as many of its inhabitants were unable to even purchase basic needs. And lastly, like China, Romania had a revolution between Western and Soviet ideals which eventually resulted in a transition from a pure command economy to a free-market privatisation style economy.
Despite the similarities it had in its history, Romania had a very powerful head start unlike its Asian counterparts with rapid industrialisation during the era of The Great Depression where many countries had trouble even finding jobs for most of its inhabitants. Additionally, Romania took a significantly longer amount of time to transition between dictatorship, communism and democracy than China did but eventually transitioned unlike North Korea. In terms of economic policies added to improve development of the country, Romania's policies were much more tame than China's Great Leap Forward and while it did leave many without basic needs, didn't result in a famine that killed 1/10th of its population. Romania's policies were aimed at debt reduction as it borrowed mass amounts of money to help quickly improve its development during the 1980s.
Despite the similarities it had in its history, Romania had a very powerful head start unlike its Asian counterparts with rapid industrialisation during the era of The Great Depression where many countries had trouble even finding jobs for most of its inhabitants. Additionally, Romania took a significantly longer amount of time to transition between dictatorship, communism and democracy than China did but eventually transitioned unlike North Korea. In terms of economic policies added to improve development of the country, Romania's policies were much more tame than China's Great Leap Forward and while it did leave many without basic needs, didn't result in a famine that killed 1/10th of its population. Romania's policies were aimed at debt reduction as it borrowed mass amounts of money to help quickly improve its development during the 1980s.
Bibliography: Wang, Weihang. "The Revolutions of 1989 in Poland, Romania and China."The Revolutions of 1989 in Poland, Romania and China. The Ohio State University, Autumn 2014. Web. 05 June 2015. <https://ehistory.osu.edu/exhibitions/revolutions-1989-poland-romania-and-china>.
Ascension from Communism - 1990-Present
In the late 1980s, Romania had become a police state; institutions, organisations and even the Communist regime have become mere tools under Ceaușescu's reign. Under his rule, physical hardship and moral despair ran rampant throughout the streets, making the residents live in constant horror. Despite this seemingly overbearing outlook, the dictatorship was overthrown in merely a week in 1989. The National Salvation Front (NSF) lead the Romanian revolution and helped the country transition from a communist to a democratic economic/political stature.
Elections were held in 1990 and the NSF won, swearing on its part to control the media, incorporate policies that weren't there during the communist era and put an end to unemployment and inflation which, according to them, would increase drastically should their opposition win. NSF and its head, Ion Iliescu, claimed presidency on June 20, 1990. Disagreements over the pacing of the economic reforms caused the NSF to split but supporters of Iliescu remained and formed the Democratic National Salvation Front (DNSF).
In the first years of the 21st century, Romania's GDP showed significant signs of improvement; inflations fell and privatisation was accelerated. Furthermore, Romania joined the North Atlantic Treaty Organisation (NATO) on March 2004 and the European Union (EU) in January 2007.
Source: http://www.britannica.com/EBchecked/topic/508461/Romania/253523/New-constitution
Bibliography: Cucu, Vasile S. "New Constitution." Encyclopedia Britannica Online. Encyclopedia Britannica, 16 Feb. 2015. Web. 03 June 2015. <http://www.britannica.com/EBchecked/topic/508461/Romania/42876/Shifts-in-society-and-economy>.
Elections were held in 1990 and the NSF won, swearing on its part to control the media, incorporate policies that weren't there during the communist era and put an end to unemployment and inflation which, according to them, would increase drastically should their opposition win. NSF and its head, Ion Iliescu, claimed presidency on June 20, 1990. Disagreements over the pacing of the economic reforms caused the NSF to split but supporters of Iliescu remained and formed the Democratic National Salvation Front (DNSF).
In the first years of the 21st century, Romania's GDP showed significant signs of improvement; inflations fell and privatisation was accelerated. Furthermore, Romania joined the North Atlantic Treaty Organisation (NATO) on March 2004 and the European Union (EU) in January 2007.
Source: http://www.britannica.com/EBchecked/topic/508461/Romania/253523/New-constitution
Bibliography: Cucu, Vasile S. "New Constitution." Encyclopedia Britannica Online. Encyclopedia Britannica, 16 Feb. 2015. Web. 03 June 2015. <http://www.britannica.com/EBchecked/topic/508461/Romania/42876/Shifts-in-society-and-economy>.
Post WWII - 1944-1989
After the end of the second World War, Romania switched its economic system to a socialist-command base economy thanks to Soviet occupation of several areas in Romania. In addition to this economic change, Romania experienced rapid industrialisation in an attempt to create a "multilaterally developed socialist society". Later on in the 70s, Romania grew even more and development increased by a substantial amount thanks to some foreign credits. Unfortunately, this lead to many foreign debts which peaked at approximately 11-12 billion dollars.
Romania managed to pay it all off during the 1980s by implementing severe economic changes which deprived Romanians of basic consumer goods for a while. This ended in 1989 when the last of the countries occupied by the Soviets abandoned the communist regime after the planned economic system resulted in political stagnation and economical bankruptcy.
Bibliography: Andrews, Sandy. "Post WWII European Ag." Post WWII European Ag. Iowa University State Department of History, n.d. Web. 05 June 2015. <http://rickwoten.com/PostWWIIEuropeanAg.html>.
Romania managed to pay it all off during the 1980s by implementing severe economic changes which deprived Romanians of basic consumer goods for a while. This ended in 1989 when the last of the countries occupied by the Soviets abandoned the communist regime after the planned economic system resulted in political stagnation and economical bankruptcy.
Bibliography: Andrews, Sandy. "Post WWII European Ag." Post WWII European Ag. Iowa University State Department of History, n.d. Web. 05 June 2015. <http://rickwoten.com/PostWWIIEuropeanAg.html>.
Before World War II - 1920s-1940s
After the end of World War I, Romania applied the use of agricultural farms and passed a new constitution which in turn created a democratic framework and allowed for rapid economic/industrial growth. Industrial growth in Romania, doubled between 1928-1938, despite the effects of rapid economic halts such as The Great Depression. Romania ranked 2nd in Europe and 7th in the world with its economic growth thanks to its 7.2 million tonne(s) of oil production in 1937. The oil extracted from Romania proved to be useful for the Axis forces especially Germany, whom gained control over Rome for a period of time during their settlement in Italy in the second World War.
In 1918-1921, massive land reforms were made to reinforce peasant agriculture. This was done by transferring 15 million acres (6 million hectares) from large landowners to small shareholders. Despite these improvements, the technology and tools were still very primitive and underdeveloped, making Rome inefficient in organising and problems such as overpopulation and excess debt started to see a rise.
Bibliography: Cucu, Vasile S. "Shifts in Society and Economy." Encyclopedia Britannica Online. Encyclopedia Britannica, 16 Feb. 2015. Web. 03 June 2015. <http://www.britannica.com/EBchecked/topic/508461/Romania/42876/Shifts-in-society-and-economy>.
In 1918-1921, massive land reforms were made to reinforce peasant agriculture. This was done by transferring 15 million acres (6 million hectares) from large landowners to small shareholders. Despite these improvements, the technology and tools were still very primitive and underdeveloped, making Rome inefficient in organising and problems such as overpopulation and excess debt started to see a rise.
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| Source: http://www.britannica.com/EBchecked/topic/508461/Romania/42876/Shifts-in-society-and-economy |
World war II - 1940-1945
Development in Romania became academic during the 2nd World War. This escalated when a military dictatorship was established in 1941 under the rule of Antonescu. Antonescu based his foreign policies on an alliance with Nazi Germany in which he believed would help him win and ultimately end the war. Furthermore, he supported and assisted Germany during their invasion of the Soviet Union to take back Bessarabia and Northern Bukovina which were, at the time, occupied by Soviet forces.
Antonescu showed full compliance with Germany's war intentions and committed mass amounts of Romanian manpower/resources as he had expected to take back Northern Transylvania during the midst of the invasion. His plan backfired and the consequences were disastrous. After the Battle of Stalingrad, which left a major dent in the German forces, Antonescu had lost hope that his Nazi allies would win the war. Consequently, the Red Army was pushing forward into Romania with the assistance of the democratic opposition, led by Luliu Maniu. Complex negotiations between Maniu and the Western Allies in 1944 led to the Romanians having to deal with angered Soviet Forces head-on. Antonescu, whom was still clinging to German Alliance, was finally overthrown on August 23 by Maniu and King Michael. A new government was established that in turn committed to the Allied War effort against Germany. With Bucharest under Soviet control one week later, it marked a new era in Romanian history.
Luliu Maniu
Prime Minister of Romania (1873-1953)
Source: http://www.britannica.com/EBchecked/topic/362407/Iuliu-Maniu
Bibliography: Cucu, Vasile S. "Shifts in Society and Economy." Encyclopedia Britannica Online. Encyclopedia Britannica, 16 Feb. 2015. Web. 03 June 2015. <http://www.britannica.com/EBchecked/topic/508461/Romania/42876/Shifts-in-society-and-economy>.
Antonescu showed full compliance with Germany's war intentions and committed mass amounts of Romanian manpower/resources as he had expected to take back Northern Transylvania during the midst of the invasion. His plan backfired and the consequences were disastrous. After the Battle of Stalingrad, which left a major dent in the German forces, Antonescu had lost hope that his Nazi allies would win the war. Consequently, the Red Army was pushing forward into Romania with the assistance of the democratic opposition, led by Luliu Maniu. Complex negotiations between Maniu and the Western Allies in 1944 led to the Romanians having to deal with angered Soviet Forces head-on. Antonescu, whom was still clinging to German Alliance, was finally overthrown on August 23 by Maniu and King Michael. A new government was established that in turn committed to the Allied War effort against Germany. With Bucharest under Soviet control one week later, it marked a new era in Romanian history.
Prime Minister of Romania (1873-1953)
Source: http://www.britannica.com/EBchecked/topic/362407/Iuliu-Maniu
Bibliography: Cucu, Vasile S. "Shifts in Society and Economy." Encyclopedia Britannica Online. Encyclopedia Britannica, 16 Feb. 2015. Web. 03 June 2015. <http://www.britannica.com/EBchecked/topic/508461/Romania/42876/Shifts-in-society-and-economy>.
Romania Stats
GDP:
$392.8 (As per 2014)
GDP Per Capita:
$19, 712 (As per 2014)
Main export partners:
$392.8 (As per 2014)
GDP Per Capita:
$19, 712 (As per 2014)
Main export partners:
- Germany (18.9%)
- Italy (11.7%)
- Hungary (5%)
- France (6.9%)
- Turkey (5.2%)
- United Kingdom (4.2%)
Export Goods:
Machinery & Equipment, Metals and Metal products, Textiles & Footwear, Agriculture, Chemicals, Minerals and Fuels
Main Import partners:
- Germany (18.7%)
- Italy (11%)
- Hungary (8.3%)
- France (5.8%)
- Poland (4.5%)
- Russia (4.3%)
- Austria (4%)
Import Goods:
Machinery & Equipment, Chemicals, Fuels & Minerals, Textile and Products, Agriculture
Total Revenue: $60.11 billion (As per 2013)
Total Expenses: $64.85 billion (As per 2013)
Source: http://scottandmona.com/photographyyku/.c/4/2/how%20to%20tell%20growth%20rate%20of%20real%20gdp.html
Bibliography:
Anonymous . "ROMANIA." Central Intelligence Agency. Central Intelligence Agency, 2014. Web. 01 June 2015. <https://www.cia.gov/library/publications/the-world-factbook/geos/ro.html>.
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