Economy
Before the Communists came to power in 1947, Romania was an extremely poor, predominantly agricultural nation. Although Romania has experienced significant industrial growth since then, it remains among the less developed nations of Europe.
Until the early 1990's, Romania had a centrally planned economy, essentially modeled after that of the Soviet Union. The national government controlled foreign trade and owned all mining, banking, communications, transportation, and manufacturing facilities. The main emphasis was on heavy industry, which was directed by a series of five-year plans. Little emphasis was placed on the production of consumer goods.
With the collapse of the Communist economy in 1990, Romania began moving toward private enterprise and a free-market economy. Numerous economic problems followed, including widespread unemployment, high inflation, and shortages, especially of fuels and foods.
Romania's basic unit of currency is the leu. It is divided into 100 bani.
About 40 per cent of Romania's work force is usually employed in manufacturing industries. Petroleum refining and metallurgy are among the chief industries and produce important export commodities. To supply these industries, substantial quantities of crude petroleum, metals, and other raw materials are imported. Other major industrial activities that produce key exports are the making of machinery, construction materials, and chemicals. The processing of food and timber and the making of textiles and clothing are activities of long-standing importance. Factories and mills are found in or near the major cities, particularly Bucharest, Brasov, Timisoara, Arad, Galati, and Iasi.
Collectivization of Romania's agriculture started in 1949 and was completed in 1962; privatization of the state farms and collectives began in 1990. About 25 per cent of the nation's work force is engaged in farming.
Agricultural land, including land used solely for grazing, accounts for about 60 per cent of the nation's total area. The chief croplands are on the plateaus and plains of Moldavia, Walachia, Dobruja, and Banat. Grains, especially corn and wheat, are the principal crops, and Romania normally ranks among the top five producers of grain in Europe. Other crops include sugar beets, potatoes, sunflowers (for the oil obtained from their seeds), vegetables, and fodder crops. There is also large production from orchards and vineyards. The chief animals raised are poultry, sheep, and hogs.
Petroleum and natural gas are Romania's most valuable minerals. Since reaching a peak in the mid-1970's, petroleum output has declined as reserves are being depleted more rapidly than new wells are being discovered and exploited. The Ploiesti fields and Moldavian fields near the Carpathians account for most of the oil produced. Natural gas, which comes from oil fields and from gas fields in Transylvania, is an increasingly important resource. Romania is among Europe's largest producers of natural gas. Oil production offshore in the Black Sea began in 1987. Coal is mined in moderate amounts. Small quantities of bauxite, copper, iron, lead, zinc, and other metallic minerals are also produced.
Despite the rough terrain, Romania is generally well served by roads and railways. Road transportation has surpassed rail transport as the chief means of moving both passengers and freight. Pipelines carry oil and natural gas from the fields to processing centers.
Romania's main seaport is Constanta, on the Black Sea. A canal, opened in 1984, links Constanta and the Danube. Principal ports on the Danube are Galati, Brăila, and Giurgiu. TAROM, the national airline, provides international and domestic service; foreign airlines also provide international flights.
