ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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ROMANIA-Socialist Corporatism and Command Economy

ROMANIA Socialist Corporatism and Command Economy Ramnath Narayanswamy UNLIKE Poland, Hungary and Czechoslovakia, which have at various periods attempted to radically overhaul the centralised model of the Soviet type, the Romanian economy like its Bulgarian counterpart, has always been characterised by a degree of centralisation of decisionmaking that is unusual even by Comecon standards.1 Plan targets are imposed on individual enterprises with virtually little or no consultation preceding the process. According to D Granick, a noted specialist on east European affairs, the role of enterprise managers in Romania "has almost exclusively centred upon improving efficiency", and as far as economic decisions are concerned, they "are taken in ministries or higher bodies or they are not taken at all".2 While Granick's study was published in 1975, a report published by the World Bank in 1979 continued to maintain that "industrial enterprises in Romania arc organisations oriented primarily towards production with limited autonomy and decision-making responsibilities outside production"3 The story of economic reform in Romania is however a late one and goes back to a decree promulgated in December 1967 authorising a series of industrial reforms for 'Improving the Management and Planning of the National Economy'. According to the new directives, the basic production unit was to be the industrial central (centrala) which was a national horizontal integration of one large enterprise with smaller ones. The implementation of economic reform in Romania went through three stages, the first which was in effect from 1969-1972, the second during 1973-1977 and the third stage which was inaugurated from 1978-1979.

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