Romania's Economic Relationships

INTRODUCTION

In this project I have tried to illustrate how important is the existence of the international economic relationships, and to do that I chose a book written by Ioan Denuta called International Economic relationships. The book refers to the basics of the international economic relationships, and wants to prove that the modern conditions have made this concept a stand alone subject matter. As the book refers to the defining, importance, role, content, to the importance of government in the developing of the international economic relationships and the Romanian International economic Relationships, Ill only speak about the last matter.

Starting from 1878 Romania has signed Conventions of trade and sail with different countries like Italy, Switzerland, Greece and later in 1880 with Belgium. Also there have been signed Treaties of trade and sail with Germany (1877), Great Britain (1880), USA (1881), Turkey (1887). Among other treaties and conventions, Romania signed the International Convention of the transport of goods on railroad and the Convention with France in 1889 for the protection of corporate brands. This policy of international economic relationships has evolved after 1918. In the Second World War time, communist Romania, member of the treaty of Varsovia and of the Council of mutual help has continued to manifest as a reliable partner showing large opening to the international market and circuit, even if a series of actions were more or less concentrated on their socialist business partners.

We can say that especially until 1980, Romanias commerce was very developed, and after 1964, our country has thrown its previous politic, switching to an opening of the economic external politic especially oriented towards the western developed counties, politic that has been, unfortunately followed in 1988-1989 by an affront towards the international market meaning that the imports were cut down, argued by the decision to switch to a forced balanced external balance of payments and to erase the whole national external debt, fact that lead to Romanias left behind by the other countries, technologically speaking.

At home, the Communist government held sole power, censored the press, and restricted personal liberties. Ceausescu promoted a personality cult around himself and his family. Improved relations with China and Western Europe brought aid and new technology, and the economy grew substantially in the 1960s and 1970s.

Romania continued to pursue an independent foreign policy, despite the disapproval of the Soviet bloc. In addition, the Romanian government actively increased its contacts with the West. After a visit from United States president Richard Nixon in 1969, Ceausescu paid several visits to the United States. In 1975 the United States granted Romania most-favored-nation status, and in 1976 a ten-year economic pact was signed by the two countries. Romania joined the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank) in 1972 and in 1976 signed the first formal pact (on textiles) between the European Economic Community and an Eastern European nation.

As the leader of the only Eastern European country to recognize both Israel and Egypt, Ceausescu helped arrange Egyptian president Anwar al-Sadats historic peacemaking visit to Israel in 1977. Romania signed a friendship treaty with the USSR in 1970, received Soviet Communist Party chief Leonid Brezhnev in 1976, and sent Ceausescu to the USSR and East Germany. Romania also signed a treaty of friendship with Hungary in 1972 and agreements on hydroelectricity with Yugoslavia in 1976 and Bulgaria in 1977. Taking an unprecedented step outside the Soviet bloc, Ceausescu visited the Peoples Republic of China in 1971, subsequently signing economic and air transport agreements. In 1980 he refused to aid the Soviet invasion of Afghanistan.

Although diplomatic in matters of foreign policy, Ceausescu strictly enforced Communist orthodoxy in domestic affairs. In 1971 he cracked down on all deviation in party, government, and cultural leadership. He was reelected head of state in 1975, and the party and government were reorganized in 1977. Despite enormous damage caused by severe floods and an earthquake, the economy grew during the 1970s, especially heavy industry and foreign trade. However, repression, pollution, and mismanagement of agriculture gradually discredited the government. In the 1980s Ceausescu used virtually all of Romanias foreign currency reserves to pay off the foreign debt, producing major food and fuel shortages in a country whose standard of living was already among the lowest in Europe. A forced resettlement program announced in 1988, which called for the destruction of up to 8,000 villages, was also widely unpopular.