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14
SEORET
steps toward the establishment of a Soviet-
products are stirring up resentment among
type socialist state came in July 1947 with the
the peasants and are partly responsible for
introduction of the Interdepartmental Com-
retarding agrarian recovery. Similarly, the
mission for Economic Recovery and Monetary
attempt to follow the Soviet pattern in indus-
Stabilization.
try has often placed power in the hands of in-
experienced managers and bureaucrats.
2. Present Economic Situation.
The Rumanian Planning Commission has
The Soviet Government, through its domi-
set up a One-Year Plan for 1949 in which pri-
nation of the Rumanian political leaders and
mary emphasis has been assigned to the de-
through its management of the Joint Soviet-
velopment of heavy and extractive industries.
Rumanian corporations in banking, transpor-
The old National Bank is now the State Bank,
tation, petroleum, chemicals, tractors, and
and the financial side of the economy is being
timber, has virtually become the supreme Ru-
reorganized under the Ministry of Finance, to
manian economic authority. While exercis-
permit complete coordination with the Plan.
ing this control, the Soviet Union has also at-
The earlier establishment of Industrial Cen-
tempted to superimpose its own pattern of a
ters as instruments of control over manufac-
planned economy. Concurrently the USSR
turing enterprises, followed by the national-
has steadily drained Rumania by: seizure of
ization of industry on June 1948, have already
an estimated one and three-fourths billion dol-
provided the framework through which the
lars in "war booty"; reparation deliveries; and
Plan will operate. Practically all of Ruma-
exploitation of the joint corporations. In ad-
nian industry and commerce is now directly
dition to siphoning off production and capital
controlled by the State.
goods for the direct benefit of the USSR, the
The immediate task of Rumania's economic
Soviets are forcing extensive construction of
planners is one of recovery rather than de-
military airfields and expanded output of mili-
velopment. Economic revival since the war
tary items, and have pushed to completion a
has been retarded, and Rumania's position is
strategic railway expansion program. This
still among the worst in Eastern Europe.
indirectly strengthens the USSR and at the
a. Agriculture, Fisheries, and Forestry.
same time is partly responsible for the failure
(1) Agriculture.
of the Rumanian economy to regain its pre-
The principal agricultural areas consist of
war production levels.
the important plainlands of Moldavia, Walla-
Both agriculture and the petroleum indus-
chia, Banat, and Crisana, which form a horse-
try, keys to Rumanian recovery, are signifi-
shoe around the less important hilly regions
cantly under their prewar production figure.
of Transylvania and Bukovina. The fertile
There has been a gradual improvement in
soil of these plainlands is well adapted to grain
agriculture which is expected to continue; but
production, the principal crops of which are
petroleum has been particularly hard hit by
corn, wheat, barley, oats, and rye. The soil
the lack of equipment and overexploitation.
of the hilly regions is poor and contains a
Other industries of lesser importance, such as
proportionately larger percentage of forest,
iron and steel, coke, textiles, and non-ferrous
meadow, and grazing land. The Transylva-
metals are also lagging. Transportation, as
nian mountain area is the center of the sheep
in the prewar period, continues to be weak.
raising industry, which has made Rumania
The consumer in particular has suffered.
one of the most important wool-growing areas
Wages have not kept pace with the rapid price
in southeastern Europe. The Carpathian foot-
increases, and living standards, although im-
hills are fertile and produce fruits, nuts, and
proving, are below those of the 1930's.
vineyard products, as well as grain.
While a good many of these economic diffi-
Although the greater part of the lowlands
culties have been caused by Soviet exploita-
of Rumania possesses soils of exceptional fer-
tion, many can also be attributed to problems
tility, crops in these regions are subject to ex-
connected with the transition to a planned
tremes of precipitation and temperature.
economy. Forced collections of agricultural
Spring and fall seasons are brief. Summers
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"ocrText": "14\nSEORET\nsteps toward the establishment of a Soviet-\nproducts are stirring up resentment among\ntype socialist state came in July 1947 with the\nthe peasants and are partly responsible for\nintroduction of the Interdepartmental Com-\nretarding agrarian recovery. Similarly, the\nmission for Economic Recovery and Monetary\nattempt to follow the Soviet pattern in indus-\nStabilization.\ntry has often placed power in the hands of in-\nexperienced managers and bureaucrats.\n2. Present Economic Situation.\nThe Rumanian Planning Commission has\nThe Soviet Government, through its domi-\nset up a One-Year Plan for 1949 in which pri-\nnation of the Rumanian political leaders and\nmary emphasis has been assigned to the de-\nthrough its management of the Joint Soviet-\nvelopment of heavy and extractive industries.\nRumanian corporations in banking, transpor-\nThe old National Bank is now the State Bank,\ntation, petroleum, chemicals, tractors, and\nand the financial side of the economy is being\ntimber, has virtually become the supreme Ru-\nreorganized under the Ministry of Finance, to\nmanian economic authority. While exercis-\npermit complete coordination with the Plan.\ning this control, the Soviet Union has also at-\nThe earlier establishment of Industrial Cen-\ntempted to superimpose its own pattern of a\nters as instruments of control over manufac-\nplanned economy. Concurrently the USSR\nturing enterprises, followed by the national-\nhas steadily drained Rumania by: seizure of\nization of industry on June 1948, have already\nan estimated one and three-fourths billion dol-\nprovided the framework through which the\nlars in \"war booty\"; reparation deliveries; and\nPlan will operate. Practically all of Ruma-\nexploitation of the joint corporations. In ad-\nnian industry and commerce is now directly\ndition to siphoning off production and capital\ncontrolled by the State.\ngoods for the direct benefit of the USSR, the\nThe immediate task of Rumania's economic\nSoviets are forcing extensive construction of\nplanners is one of recovery rather than de-\nmilitary airfields and expanded output of mili-\nvelopment. Economic revival since the war\ntary items, and have pushed to completion a\nhas been retarded, and Rumania's position is\nstrategic railway expansion program. This\nstill among the worst in Eastern Europe.\nindirectly strengthens the USSR and at the\na. Agriculture, Fisheries, and Forestry.\nsame time is partly responsible for the failure\n(1) Agriculture.\nof the Rumanian economy to regain its pre-\nThe principal agricultural areas consist of\nwar production levels.\nthe important plainlands of Moldavia, Walla-\nBoth agriculture and the petroleum indus-\nchia, Banat, and Crisana, which form a horse-\ntry, keys to Rumanian recovery, are signifi-\nshoe around the less important hilly regions\ncantly under their prewar production figure.\nof Transylvania and Bukovina. The fertile\nThere has been a gradual improvement in\nsoil of these plainlands is well adapted to grain\nagriculture which is expected to continue; but\nproduction, the principal crops of which are\npetroleum has been particularly hard hit by\ncorn, wheat, barley, oats, and rye. The soil\nthe lack of equipment and overexploitation.\nof the hilly regions is poor and contains a\nOther industries of lesser importance, such as\nproportionately larger percentage of forest,\niron and steel, coke, textiles, and non-ferrous\nmeadow, and grazing land. The Transylva-\nmetals are also lagging. Transportation, as\nnian mountain area is the center of the sheep\nin the prewar period, continues to be weak.\nraising industry, which has made Rumania\nThe consumer in particular has suffered.\none of the most important wool-growing areas\nWages have not kept pace with the rapid price\nin southeastern Europe. The Carpathian foot-\nincreases, and living standards, although im-\nhills are fertile and produce fruits, nuts, and\nproving, are below those of the 1930's.\nvineyard products, as well as grain.\nWhile a good many of these economic diffi-\nAlthough the greater part of the lowlands\nculties have been caused by Soviet exploita-\nof Rumania possesses soils of exceptional fer-\ntion, many can also be attributed to problems\ntility, crops in these regions are subject to ex-\nconnected with the transition to a planned\ntremes of precipitation and temperature.\neconomy. Forced collections of agricultural\nSpring and fall seasons are brief. Summers"
}