Abstract

Romania’s performances over the past 30 years are not impressive. The economy displays dramatic crises and modest increases, though there were years of important growth. The country faces unsolved chronic crises: agriculture and industry are in a state of confusion, lacking a strategic vision; underdeveloped public functions are facing severe social issues. Demographic decline, underemployment, and poverty are far from being significantly reduced. Also, the political factor, supposed to be the engine of development, seems to be locked in conflicts for power that express actually the lack of vision. The article argues that more than ever, Romania is at a crossroads. We enter inevitably into a new stage of our history. We might continue on the path we engaged on up to now, but the future does not seem by far the one we wish for. Or, we need rather to disengage from the process that kept us in a bottleneck and put forward a new vision, new options, and democratic-led decisions. In brief, a program for the social and economic development of the country. The article concludes that in order to surpass the current crisis a new model of social-economic development of the country should be enhanced, ensuring prosperity for the whole population.

Highlights

  • Romania’s performances over the past 30 years are not impressive

  • The strategic orientation of the transition was met by wide consensus: adopting the western model of society, a pluralistic political system, market-based economy grounded in private ownership

  • If up to 2000, the transition was dominated by rapid privatization and predominantly destructive, in the subsequent period, 2001-2004, the key policy was the privatization of large companies that had strategic positions within the Romanian economy

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Summary

Political cleavage

The first structural changes occurred inside the political system. A political body of the Revolution was established: the FSN (National Salvation Front) conceived as a temporary body that expresses the national consensus. Political imbalance occurred: on one hand FSN, which was not constituted as a political party but as a representative body of the Revolution consensus, and on the other, the political “historical” parties that became very active, contesting the existence of such accord In these circumstances, on the 6th February 1990, FSN changed into a party as well, and declared the intention to participate as a political party in the nationale elections from May 1990. The strategic orientation of the transition was met by wide consensus: adopting the western model of society, a pluralistic political system, market-based economy grounded in private ownership On this shared background, the Romanian politics was dominated by differences regarding priorities and mechanisms for achieving this program: shock therapy performed swiftly, “at once”, versus controlled and designed reform. The adepts of the total and swift privatization used with satisfaction the metaphor of better “crossing the whole nine yards” at once, than yard by yard, in justifying their option

The Postolache Strategy
The adopted strategy
Street revolutionaries
International bodies
Transition stages
How good was the strategy of the Romanian transition?
Economic outcomes of the transition
Changing the structure of the economy
Industry Agriculture Services
The reform of industry
Agrarian reform
The role of the state during transition
How democratic is the Romanian democracy?
Occupational opportunities
Family workers unpaid
Labor migration
Waged labor
Level of the peak year
Meat Sugar
Low or too low
Welfare policy
Countries with low expenditures
Worse Better
Findings
Is Romania at crossroads?
Full Text
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