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Energy Crisis In Communist Romania

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  • Pãrean Mihai - Olimpiu

    () (Universitatea de Vest din Timisoara, Facultatea de Economie și de Administrare a Afacerilor)

Abstract

If during the interwar period Romania has managed to move from an agrarian economy to an industrial-agrarian one, after the 2nd world war in Romania, as in other communist countries, has monitored the further development of the industry. It wanted to be a true industrial revolution.Over time one can identify several types of industrial revolutions, each giving impetus to a given development cycle, which had its beneficiaries and the losers. At first it was steam power, and then use the internal combustion engine, which used oil instead of steam. While other countries developed would increase of production capacity of nuclear power, a higher stage of economic development, in Romania continued the industrial development on the same grounds as in the inter-war period. This has had very serious tracks for the Romanian economy and society, since before and during World War II, the German war machine operated within the national resources of energy. The time and manner in which each country is part of this race are defining the social welfare. Unfortunately, Romania has failed to take advantage, each time losing the start. Creation of some production capacity and the development of industries (metallurgy, chemical industry, iron and steel industry), which consumed significant energy amounts was the wrong decision for the future well-being of the country. Oil impacts which have affected the world economy, hit also Romania. The first oil shock (impact) was more easily broken because of the continued use of internal resources (oil, coal, natural gas), but the second shock was catastrophic. It was too much for Romania after being forced to use those resources in the last decades (including the interwar period). Romanian leaders probably had in mind that Western countries were developed by enhancing industry of this type, but they did it in a different historical period when also the prices of such resources were much smaller and the lack of them was not a possibility. The outphasing of economic policies have resulted in a major negative impact on the population. In order to cope with the shortage of energy has been passed to the rationalization of energy products for the population consumption (from public lighting and restaurants program to heat and hot water rationalisation). Perhaps the crisisof energy resources necessary to support an antiquated economic system was one of the major causes that resulted in social complaint from the Communist Romania.

Suggested Citation

  • Pãrean Mihai - Olimpiu, 2012. "Energy Crisis In Communist Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 271-276, December.
  • Handle: RePEc:ora:journl:v:1:y:2012:i:2:p:271-276
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    File URL: http://anale.steconomiceuoradea.ro/volume/2012/n2/039.pdf
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    Keywords

    energy resources; communism; Romania; oil shocks (impacts); rationalization of domestic energy consumption;

    JEL classification:

    • N - Economic History
    • P - Economic Systems
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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