Agrarian Change and Economic Development in Rural Romania: A Case Study of the Oas Region

Abstract

Collectivisation and mechanisation of agriculture combined with large-scale development of the manufacturing sector in selected growth centres have formed the cornerstones of the strategy for rural development in postwar Romania. Al- though best suited for the agricultural plains, this strategy has been pursued along the same lines throughout the country. This paper examines agrarian change and economic development in an economically depressed rural region with poor conditions for agriculture in the light of the pursued strategy. It is found that the actual development in terms of employment and income genera- tion and economic growth has been far below both the potentials and the requirements and that many villages have witnessed eco- nomic and demographic decline. A main reason behind this deve- lopment has been extremely low returns to both labour and land in collectivised agriculture, which has sharply reduced the impor- tance of land as a source of employment and incomes. Manufac- turing has developed at a fast pace, but has been confined to one centre only. While this centre and the immediately surrounding villages have seen impressive development, the economic base of the villages beyond commuting distance has been eroded as the fall in the importance of agriculture has not been compensated for. Hence, a highly uneven development pattern in the rural areas has emerged. It is concluded that the most important short- coming of the pursued strategy is likely to be the extremely small room it has allowed for initiatives on the local level. Thus it has served as an obstacle to as well as an instrument for economic de- velopment. In many villages the former function is likely to have been more important than the latter.