Post World War II

After the Second World War, Romania was left firmly within the Soviet block and the communists quickly increased their power.  The forced abdication of King Mihai occurred in 1947 and Romania was declared a “People’s Republic”.  The process of collectivisation of agriculture and nationalisation of industry began.  In true Soviet style, a focus on heavy industry was maintained throughout the Communist era. 

The Ceausescu Era

By 1969 Nicolae Ceausescu had established undisputed power within the Romanian Communist Party.  Ceausescu stuck faithfully to Soviet ideology in his economic policy making and a series of economic disasters engulfed the country. Living standards plummeted and the people of Romania suffered at Ceausescu’s hands until 1989. 

The Revolution

The Revolution that swept through Eastern Europe in that year saw a violent uprising in Romania, which culminated in the removal and ultimately the execution of Ceausescu.  Ion Iliescu was soon named President and a slow and painful process of economic reform began.  In the early 1990s the economy remained in tatters with inflation reaching 300%.  By the mid 1990s the country started to see the benefits from economic reform.  In 1996 democratic elections were won by Emil Constaninescu, who embarked on a campaign of radical economic reform that was perhaps too intense to allow his political popularity to be maintained. 

Economic and Social Reform

The elections of 2000 saw the return of Iliescu and stability in economic and social policy has ensued.  In 2004, the former mayor of Bucharest, Traian Basescu, was elected President of Romania.  Basescu’s reputation was built on a renovation program in Bucharest and on fighting corruption. As a sign of Romania’s increasing role in the international community, the country became a member of NATO in 2004.

Membership of the EU

Membership of the EU is hugely popular among the peopleof Romania, has set targets for many aspects of government policy, and has seen the inflow of EU development funds.  A sense of optimism dominates the political and economic climate in Romania, with EU membership seen by local and foreign commentators and investors as the final stamp of economic stability and progress.

 
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