$Unique_ID{COW03013} $Pretitle{360} $Title{Romania Chapter 1. Profile of Romania} $Subtitle{} $Author{Donald E. deKieffer} $Affiliation{Embassy of Romania, Washington DC} $Subject{romania romanian political country war world economic national population state} $Date{1990} $Log{Table 1.*0301301.tab Table 2.*0301302.tab Table 3.*0301303.tab Table 4.*0301304.tab } Country: Romania Book: Doing Business with the New Romania Author: Donald E. deKieffer Affiliation: Embassy of Romania, Washington DC Date: 1990 Chapter 1. Profile of Romania GEOGRAPHY AND CLIMATE At 91,699 square miles (237,500 square km) Romania's area is about the same as Oregon and slightly smaller than Great Britain, ranking 12th in Europe. Romania's boundaries total 1,959 miles (3,190.6 km) of which 1,294 miles (2,153 km) are fluvial or maritime. Its neighbors are the Soviet Union (with a frontier of 826 miles on the east and north); Hungary (275 miles on the west); Yugoslavia (399 miles on the southwest); Bulgaria (367 miles on the south); and the Black Sea (152 miles on the east). Geomorphology Romania forms a complex geographical unit centered on the core of the Transylvanian Plateau, around which the peaks of the Carpathians and their associated subranges and structural platforms form a series of crescents. Beyond this zone, the extensive plains in the south and the east, developed by the courses of the Danube and its tributaries, form another fertile zone bounded by the nation's frontiers and the waters of the Black Sea. This geographic unity is formed from the diversity of relief and underlying rocks, a rich flow of water and an associated carpet of vegetation, many species of animals and shades of climate and a variety of mineral resources. Flora and Fauna Forests, extending all over Romania's territory in the past, have been gradually replaced by farming lands. Today, about 25 percent of Romania's total area is forest of which deciduous trees (oak, beech, elm, ash, sycamore and lime) form approximately 71 percent. Resinous trees (29 percent of the lumbering reserves) include spruce, fir and pine. Above 4,000 feet in altitude, the land is covered with alpine meadows. For the past five years, Romania has been engaged in an extensive reforestation program. For each tree cut down in Romania today, the law requires three to be planted. Romania's fauna is one of the most varied in Europe, consisting of both common and extremely rare species. The mountain areas shelter chamois, brown bear, carpathian stag, wolf, lynx, martin and other furry creatures. Bear, fox, wild boar, deer, partridge and quail are typical of the highlands and plains. The Danube Delta is inhabited by hundreds of species of birds both migratory and local. The water fauna is also differentiated according to altitude. The swift mountain streams are populated with trout, and the hill rivers with barbel. In the plains, the rivers and lakes are alive with carp, bream and pike. Sturgeons abound in the lower Danube waters, and dolphins, herring, mackerel and mullet in the Black Sea. Climate Romania's geographic situation in the southeastern portion of Europe has endowed it with a climate that is transitional between the temperate regions and the harsher extremes of the continental interior. In the central and western portions of the nation, humid Atlantic characteristics prevail; in the southeast, the continental influence of the Russian plains makes itself felt, and in the extreme southwest there are touches of milder sub-mediterranean influences. This overall pattern is substantially modified by the rugged relief patterns of the country, and there are many climatic zones induced by a complex series of altitudinal changes. The average annual temperature is 52 degrees Fahrenheit (11 degrees Celsius) in the south and 45 degrees Fahrenheit (7 degrees Celsius) in the north, although there is much variation according to altitude and related factors. Extreme temperatures range from 111 degrees F (44 degrees C) in the south, to -36 degrees F (-38 degrees C) in the mountainous areas. The average annual rainfall amounts to 26 inches (660 millimeters), but this conceals very high rainfall in the Carpathians reaching about 55 inches (1,400 millimeters) a year, and low rainfall in the southeast -about 16 inches (400 millimeters) a year. The most frequent winds are humid, blowing from the northwest, although the strongest winds are often the drier ones coming from the northeast. A hot southwesterly wind, the Austru, blows over western Romania, particularly in summer. In winter, cold, dense air masses encircle the eastern portions of the nation, with icy northeasterly winds known as the Crivat blowing from the Western Russian Steppes, while the oceanic air masses from the Azores, blowing over the west of the country, bring rain to soften the effect of the severe cold. [See Table 1.: Average Maximum Daily Temperatures] HISTORY Recent archaeological excavations have revealed traces of uninterrupted habitation in Romania since the Paleolithic Age. The great Indo-European migration in the third mellinnium B.C. brought significant changes in the ethnic composition of the current Carpathian-Danubian area. During the Bronze Age (second millennium B.C.), the Thracian people took shape in this region. In the first millennium B.C., the Dacians acquired a definite identity among the other Thracian tribes in the Balkan Peninsula and established, in the latter half of that millennium, an original civilization of their own. The Dacians, described by Herodotus as "the most valiant and righteous of the Thracians," developed a society which honored music, astronomy and medicine. In the first century B.C., an independent Dacian state ruled by Burebista (70-44 B.C.) spread from Bohemia (current-day Czechoslovakia) to the Black Sea, including the Greek cities on the coast. The Dacian state, temporarily divided after Burebista's death, re-emerged during the reign of Decebalus (87-106 A.D.). During this period, the Dacians successfully repelled incessant Roman attempts to incorporate the region into the Roman Empire. Finally, in 101-102 A.D. and 105-106, Rome waged two wars, conquering Dacia. Most of the country became a Roman province for 165 years. By adopting the Romans' language and culture, the native Dacians became Romanized, and a new Latin-speaking Daco-Roman people was formed. After Roman military forces withdrew in 271 A.D., the Daco-Romans stayed on. They engaged in farming and herding, and survived the invasions of the Nomadic people (Goths, Huns, et al.) in the 6th through 13th centuries. Christianity began to spread in the 3rd century, and after the great schism of 1054, the Romanians remained in the fold of the Eastern Orthodox Church. Written sources mention the emergence of the earliest Romanian feudal states in Transylvania (10th century), Dobruja (10th century), and east and south of the Carpathians (12th-13th centuries). In the 11th-13th centuries, the Hungarians, who had settled in Pannonia by the end of the 9th century, conquered the Transylvanian territory. These areas were eventually incorporated into the Hungarian Kingdom. Until 1526, however, Transylvania enjoyed a significant level of autonomy under Hungarian rule. The Romanian dukedoms east and south of the Carpathians formed the independent states of Wallachia (1330) and Moldavia (1365). An independent feudal state which later united with Wallachia was also established in Dobruja, the region between the Danube and the Black Sea, in the first half of the 14th century. Middle Ages Although the Romanians lived in three separate territories (Wallachia, Moldavia and Transylvania) during the Middle Ages, their economic, political and cultural links were preserved and they retained a definitive national identity. By the end of the 14th century, the Ottoman Empire extended as far as the Danube. The three Romanian regions embarked upon a period of national survival in which several personalities distinguished themselves: Mircea Cel Batrin (Mircea the Old, 1386-1418), Iancu De Hunedoara (Janos Hunyadi in Hungarian, 1441-1453) and Stefan Cel Mare (Stephen the Great, 1457-1504). De Hunedoara repelled the Turks from the gates of Belgrade in 1456, protecting central Europe from invasion. The origins of the "Dracula" legend were born in this period. Vlad Tepes, Prince of Wallachia (1448, 1456-1462, 1476) and son of Vlad Dracul, established absolute control of southern Transylvania. Known as "Vlad the Impaler" because of his quaint practices with captured prisoners, thieves and others not of his liking, he became the subject of the 19th century novel by Bram Stoker. Today, he is widely regarded as a Romanian hero and has been described by local historians as a "remarkable statesman who defended the independence of the country." In the 16th century, Wallachia and Moldavia were forced to recognize the Ottoman Suzerainty, while keeping a high degree of internal autonomy; in 1541, Transylvania became an autonomous principality of the Ottoman Empire. By the end of the 16th century, Mihai Viteazul (Michael the Brave), Prince of Wallachia (1593-1601), began an anti-Ottoman war and united all three Romanian lands under his rule. Because of the opposition shown by the neighboring great powers (the Ottoman Empire, Austria and Poland) to the establishment of a strong Romanian state, it was short-lived, but it acquired a symbolic value in the subsequent centuries. In the 17th century the Romanian lands flourished under the rule of Matei Basarab (1632-1654), Vasile Lupu (1634-1653), Serban Cantacuzino (1678-1688), and Constantin Brancoveanu (1688-1714). Taking advantage of the weakened position of the Ottoman Empire, Austria annexed the principality of Transylvania following the Peace of Karlowitz (1699). In the 18th and 19th centuries, the wars between Russia, Austria, and Turkey were often waged in the region. Austria temporarily annexed Oltenia (1718-1739) and Bucovina (1775-1918). After the Russian-Turkish War of 1806-1812, Bessarabia (the eastern part of Moldavia between the Pruth and the Diester) was incorporated by Russia (1812-1918). The revolution led by Tudor Vladimirescu in Wallachia in 1821, and the Bourgeois-Democratic Revolution of 1848-1849 in the three Romanian lands opened the way to their modern development and gave a strong impetus to the national liberation struggle. Both revolutions were suppressed by the armed intervention of the Ottoman Empire (1821) and the Russian and Ottoman Empires (1848). Wallachia and Moldavia remained under the suzerainty of the Ottoman Empire, and Transylvania under Austrian domination. In 1859, Wallachia united with Moldavia following the election of one ruling prince, Alexandru loan Cuza. Romania In 1862 the new national state was officially named Romania (Land of the Romanians). The Constitution enacted in 1866 declared Romania a constitutional principality; Carol of Hohenzollern-Sigmaringen became prince and, in 1881, King of Romania. On May 9, 1877, Romania proclaimed its independence and participated on the Russian side in the war against Turkey (1877-1878). The Peace of San Stefano and the Treaty of Berlin (1878) recognized Romania's independence and restored its authority over Dobruja. The union of the Romanian principalities and the winning of independence further stimulated the modern economic, social and political development of the country. World War I The last phase of the process leading to the establishment of the Romanian Unitary National State took place in the years of World War I. Romania maintained its neutrality for two years, then joined the Entente, in August, 1916, aiming to recover its national territories, which until then had been under foreign domination. The people of Bassarabia (on April 9, 1918), Bukovina (on November 28, 1918) and Transylvania (on December 1, 1918) opted for unification with Romania, thus completing the establishment of the Romanian Unitary National State. Since then, December 1 has been a national holiday in Romania. The union of 1918 favored industrial development and the establishment of modern political institutions. During the interim period, Romania's government, dominated by the upper bourgeoisie and the remainder of the old land-owning aristocracy, was based nominally upon a liberal constitutional system. The Social Democratic Party, which controlled the small labor movement, was tolerated by the monarchy but never had political power. The Romanian Communist Party was an underground movement at the time. In the 1930s the fascist Iron Guard movement threatened the government, and eventually took it over in 1940-1941 in a coup led by General Ion Antonescu. World War II At the outbreak of World War II, Romania declared its neutrality. On June 28, 1940, Bassarabia and northern Bucovina were incorporated by the USSR; on August 30, 1940, the Vienna Dictate ceded the northern part of Transylvania to Hungary; and on September 7, 1940 the southern port of Dobruja was incorporated by Bulgaria. In June, 1941, Romania entered World War II on the side of the Axis powers. A coup led by King Michael and opposition politicians with the support of the army, deposed the Antonescu dictatorship on August 23, 1944. The next day, Romanian forces switched sides, entering the war against the Germans in Transylvania, Hungary, Czechoslovakia and Austria. Romania, which had suffered extensive losses in the war against the USSR, incurred additional heavy casualties. Peace Treaty The peace treaty, signed at Paris on February 10, 1947, confirmed the Soviet annexation of Bassarabia and northern Bukovina. It also reincorporated into Romania that portion of northern Transylvania granted to Hungary in 1940 under the Vienna Dictate. In addition, the treaty required substantial war reparations by Romania to the Soviet Union and other allied states. Soviet occupation forces supported Communist organizers in Romania and the non-Communist political leaders were purged. On March 6, 1945, King Michael was forced to appoint a Communist-dominated government headed by Dr. Petru Groza, president of the Ploughman's Front. People's Republic The King abdicated under pressure on December 30, 1947, and the Romanian People's Republic was declared. The "People's Republic" ("The Socialist Republic of Romania" from 1965 until 1989) became one of the most doctrinaire Communist countries in Eastern Europe. Although in foreign policy Romania retained some independence from other Warsaw Pact members, the 25-year regime of Nicolae Ceausescu maintained rigid economic and political control at home. Massive public works projects were constructed at the expense of a consumer economy and political freedoms. During this period, Romania also stressed its foreign policy, joining the IMF in 1972, the GATT in 1971 and adopting Eastern Europe's first joint venture law for Western firms in 1975. Romania was one of the last countries in Eastern Europe to be moved by the "winds of change" which had become apparent in the region; and it struck like a hurricane. Unlike the relatively peaceful revolutions of Poland, Hungary, Czechoslovakia, and East Germany, the Romanian experience was intense and bloody. In November, 1989, Ceausescu was unanimously reelected by the Communist Party to lead his nation for another five years. Within six weeks, he had been executed, and the Communist Party was all but disbanded. There followed a period of uncertainty from political and economic perspectives. Unlike many other countries, the overthrow of Romanian Communism was a sudden event; no serious opposition leaders had been allowed to operate domestically during the Ceausescu years. Much of the leadership of the rebellious forces were at least nominal Communist Party members. It could hardly have been otherwise. Romania had the highest proportion of Communist Party members of any country in the Warsaw Pact (about 3.8 million out of a work force of 11 million). The near-total collapse of the Communist Party apparatus after the death of Ceausescu, however, testifies to the tightly centralized control of ideology in the former era. Further, Romania had the most centralized economy of any country in Europe save Albania, and was a textbook dictatorship. It was at least five years behind its neighbors in both political and economic development. During the elections of May, 1990, not one of the 88 competing parties ascribed to any platform which could be remotely described as classical communism. The entire debate centered on the speed with which Romania would transform itself into a market economy and the methods by which the State would divest itself of power and property. Although confronted with charges that many of its leaders were "wolves in sheep's clothing" (i.e., Communists with new-found liberal religion), the National Salvation Front won 73% of the popular vote on a platform which emphasized political freedom and a gradual transition to private control of the economy. The NSF began implementing these policies immediately, but cautioned that the "shock treatment" advocated by the opposition (i.e., immediate abolition of all prior economic laws) would create chaos in both the agricultural and industrial sectors. The new government has not established a timetable for the dismantling of state controls on the economy, but has identified agriculture, small enterprises and tourism as the first candidates for privatization. Although the political outlook for Romania is far from certain, the NSF appears to be well on its way to consolidating its liberal democratic objectives. It remains to be seen whether a country with so little experience in truly representative democracy will allow the new government the time to implement its economic programs without political disruption. POPULATION As of July, 1989, Romania had a population of 23,151,564, ranking ninth in Europe and 38th in the world. Romania's population is about the same as that of Canada and slightly less than that of California. During the past three years, Romania has had some of the most restrictive abortion laws in Europe. This, in part, accounts for the high natural growth of the population. It is also partially responsible for giving Romania the highest infant mortality rate in Europe. Due to its high growth rate, Romania is a relatively "young" country compared with the developed nations of the world. In addition to its rather low average age, Romania is a remarkably homogeneous country, even by European standards. Like many other newly industrialized countries, Romania has seen an explosive growth in urban population. In 1989, 53.2 percent of the total population was urban, as opposed to 20.6 percent in 1930. [See Table 2.: Romanian Demographics] [See Table 3.: Population By Age (1989)] [See Table 4.: Population by Nationality (1989)] Lineage The Romanian people trace their lineage to Roman times and are related to French, Italians, Spanish and other "Latins." As a result, the Romanian language, although containing many elements of Slavic, Turkish and other languages, is related to French, Italian, Portuguese and Spanish. Apart from the Romanians, most of the minority populations reside in Transylvania. Before World War II, minorities represented more than 26 percent of the total population, but that percentage was halved in large part by the loss of the border areas of Bessarabia and northern Bukovina (to the USSR) and southern Dobruja (to Bulgaria), as well as by the postwar Diaspora of ethnic Germans. However, in Transylvania, which was a part of pre-1918 Austria-Hungary, the ethnic minority sometimes makes up a substantial portion of the local population. The official Romanian government policy toward national minorities is non-discriminatory and permits cultural autonomy; but it insists upon their integration into the national economy and provides for compulsory study of Romanian in addition to the minority languages. The Jewish community surviving World War II has been reduced by about 90 percent over the past three decades by emigration to Israel. In recent years, up to 10,000 of the nearly 400,000 ethnic Germans have emigrated annually to the Federal Republic of Germany. Since World War II, however, there has been little emigration of ethnic Hungarians to Hungary. Between 1987 and 1990, it is estimated that over 35,000 ethnic Hungarians emigrated to Hungary and elsewhere, often as "undocumented refugees." These emigres generally left for political and economic reasons. Since January, 1990, the Romanian government has changed its policies with regard to travel; citizens are now entitled to permanent custody of their passports, including refugees. This, and other policies, have been cited as an impetus for the return of the substantial emigrant population. Language The official language of Romania is Romanian, a Romance Language. It evolved directly from the Latin spoken in the Carpathian-Danubian-Balkan area. In addition to their native language, most Romanians speak at least one and often three or more foreign languages. The most common foreign languages are French, English, German and Russian. Religion Religious observance in Romania has traditionally been extensive and religious allegiances generally follow ethnic lines, with about 80 percent of all Romanians nominally belonging to the Romanian Orthodox Church. The Greek Catholic or Uniate Church, to which about 10 percent of the populace belong, was incorporated into the Romanian Orthodox Church by fiat in 1948. Roman Catholics, largely Magyar and German, constitute about 6 percent of the population; Calvinists, Jews, Baptists and Lutherans make up most of the remaining 4 percent. GOVERNMENT AND LEGAL SYSTEM As of mid-1990, the government and legal system of Romania can best be described as "transitional." The elections of May, 1990 selected a parliament whose primary purpose is to draft a constitution. In the interim, the authorities are more concerned with repealing laws than with passing them. The Ceausescu regime had adopted scores of statutes which restricted the economic and political freedom of the citizenry, and which remain the primary target of the new authorities. These ranged from the mundane (e.g., registration of typewriters with the police), to the profound (e.g., monopoly of the state in the field of international trade). Nevertheless, the new government has taken several important steps to dismantle the strict controls previously extant. These include: - Dismantling of the Security Police (Securitate) - Guarantee of free expression - Freeing of political prisoners - Abolition of travel restrictions/return of passports to the permanent custody of citizens - Abolition of the death penalty - Permission to form political parties (88 parties participated in the May, 1990 national elections) - Abolition of food rationing; banning of food exports - Dismantling of central planning of the economy The NSF has pledged to adopt a liberal democratic constitution incorporating a bill of rights guaranteeing individual liberties and a severe diminution of the power of the state over both the economy and citizens. The exact structure of the new system is unknown at press time, but Romania's progress toward democratic institutions appears irreversible. POLITICS The transition immediately after World War II from the pro-German dictatorship of Ion Antonescu to Communist rule was swift. After proclaiming a People's Republic (December 30, 1947), private enterprises were nationalized (on June 11, 1948), agricultural collectivization was initiated, industrial development speeded up and a Soviet-style, centrally planned economy was adopted across the board. However, a general "derussification" of the country began in 1964 as the Romanian leadership displayed an increasing independence of the Soviet Union, whose troops were withdrawn in 1958. During the 1960s, the growth of political nationalism increasingly asserted itself in both domestic and foreign policy. Political leadership during this period was remarkably stable, and the passage of power from long-time party chief Gheorghui-Dej, who died in 1965, to Nicolae Ceausescu was uncomplicated. Ceausescu's two-and-a-half decades in office, however, marked a period of unrepentant, if independent, Stalinism. Romania became one of the most thoroughly "planned" economies in the world. Not only did the state control literally every economic activity in the land, it also enforced its economic and political mandates with brutal efficiency. Every trace of domestic political dissent was ruthlessly crushed, and an elaborate security mechanism further strengthened control over every aspect of citizens' lives. The economic "plan" envisioned by Ceausescu emphasized massive projects such as the Danube-Black Sea canal, and "urban development" reminiscent of Mussolini's pre-war plans for Rome. Large sections of old Bucharest were bulldozed to make room for gigantic government buildings and apartment blocks. The Great Hall of the People, for example, still only partly finished, is one of the largest single buildings in the world. This "vision" extended to the rural areas as well. Villages were systematically destroyed, and the inhabitants moved to barracks-like accommodations in "planned communities" near urban centers. While the popular sentiment against Ceausescu's domestic policies was nearly universal, three factors augured against open revolt until 1989: 1. Futility: With the exception of its western border with Yugoslavia, Romania was entirely surrounded by Warsaw Pact countries. The lesson of Soviet reaction to liberalization in Czechoslovakia in 1968 was not lost on the Romanians. They were virtually defenseless against a similar onslaught by their neighbors should the Soviets have decided that things had gone too far. 2. Repression: Ceausescu maintained one of the most elaborate security forces (secret police) in the world. The Securitate alone (his praetorian guard) consisted of some 150,000 well-trained troops and agents. Every telephone in the country was bugged, as well as most meeting places such as hotels and restaurants. The police also maintained an elaborate system of informers, which made conspiracy particularly dangerous. This, coupled with the liberal use of the death penalty for sedition, made plotting the dictator's overthrow a perilous proposition indeed. 3. National Pride: Although loath to admit it today, many Romanians were-and remain-secretly proud of the nationalistic and independent foreign policy pursued by the late dictator. Romania alone among the Eastern Bloc, for example, refused to break diplomatic relations with Israel in 1967, or to participate in the invasion of Czechoslovakia in 1968. Defying a Soviet ban, it sent a team to the Los Angeles Olympics. Ceausescu was one of the most widely-traveled leaders in the world, and did much to distinguish his country from the other lands in the Warsaw Pact. While his foreign policies would certainly not have been enough to see him chosen in any democratic election, many Romanians shared his desire to assert a national identity. Notwithstanding these factors, the time was right for revolution in 1989. The Communist regimes of Poland, East Germany and Czechoslovakia had already collapsed. Bulgaria was in a state of turmoil. Ceausescu, however, felt himself above the fray, and had himself re-elected to another term as president as late as November, 1989. So confident was he of his grip on the country, that he left for a trip to Iran in December. What started as a minor incident in the provincial city of Timisoara soon spread to other urban centers and to Bucharest. He returned too late to quench the conflagration, and suffered an ignominious death before a firing squad on Christmas Day. Unlike other Eastern European countries, Romania simply had no tradition of opposition groups-even outside the power structure. There had been little thought as to what direction the country should take after the fall of the dictator. All that mattered was that he was gone. In a remarkably short time, Romania had to conceive and implement policies-and find leaders-which had been developed over almost a decade of dissent in Poland, Hungary and Czechoslovakia. To date, Romania has done this very well considering the problems it faced. The transitional government dismantled many of the most oppressive laws of the prior regime, and conducted free elections within five months. It has now embarked on the entire restructuring of the Romanian economy, and, perhaps more importantly, of Romanian society itself. This is a country without firmly-rooted democratic traditions. It "progressed" directly from a monarchy to fascism to Stalinism, without once having a significant period of freedom. The Romanians recognize this, and seem determined not to apply "shock therapy" to their economic or social institutions. Even most of the opposition parties believe that the immediate abolition of all controls would be a recipe for anarchy. Still, all parties agree that the road ahead is clear. Romania is inexorably committed to the implementation of a market economy and a liberal democracy. This will take place over a period of years, and is unlikely to mature until at least 1993. U.S. RELATIONS Between 1986 and 1990, diplomatic relations between the United States and Romania were frosty at best. Although Romania had permitted emigration of its Jewish population and had a nationalistic foreign policy, its repression at home led to denial of Most Favored Nation status and a chilling of economic relations. The overthrow of the Ceausescu regime, however, caused a reevaluation of the bilateral relationship. This was followed by the internationally-observed elections in May, 1990, and attempts by the Romanians to reintegrate themselves with the West. Reinstatement of MFN treatment is in the offing, and Romania should soon attain the status of other newly-free economies in previously-closed Eastern Europe.