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The impact of communism on society The economy

The nationalization of the main means of production and its implications A moment of great significance, the nationalization of the main means of production, started on the 11th June 1948, came to be perceived in the history of the country as the starting point of the process of building the socialist economy.( Aron Petric, Istoria Romaniei intre anii 1918-1981, Editura Didactica si Pedagogica, Bucuresti, 1981, pag 280) The revolutionary act of nationalization of the main enterprises of the industrial, mining, banking, insurance, transport and telecommunications sectors was adopted at the Plenary Meeting of the Central Committee of the Romanian Communist Party on the 10th June 1948 and then voted by Great National Assembly on the 11th June 1948. The nationalization law adopted by the Great National Assembly provided that all the riches of the soil and subsoil, all major capitalist companies, societies and associations from the sectors mentioned before, which translated into about 8500 legal entities, to pass into the possession of the state. The nationalization act of the main means of production of 11th June 1948 was subsequently followed by a series of decrees regarding the nationalization of other material goods. Thus, by the law of 13th August 1948, banking companies and private credit institutions were dissolved and put into liquidation. In November 1948, the film industry and private sanitation institutions were passed into state ownership. In April 1949, pharmacies, chemical-pharmaceutical laboratories and drug stores were nationalized. Gradually, the monopoly of the state over foreign trade was established. (Aron Petric, Istoria Romaniei intre anii 1918-1981, Editura Didactica si Pedagogica, Bucuresti, 1981, pag 281) The nationalization of the main means of production had opened a new stage in the history of the relations of production in Romania. It led to the liquidation of industrial and financial power of the big bourgeoisie and to the creation of a powerful socialist state sector which had a decisive role in economy, which in turn led to the planned management of the national economy. It also suppressed the impact of foreign capital in the Romanian economy.

Natural consequence of establishing the concept of socialist property, the situation and the social nature of the working class had changed radically. In theory, the working class became the sole ruler over the means of production and its spoils. The collectivization of agriculture The stalinist model was followed in agriculture as well, and it was represented by the colectivization process which started in 1949 and ended in 1962. Colectivization meant the establishment of common agricultural households and the compulsory enrollment of the peasants which were forced to work the land of the state at these newly invented institutions of the communist regime. Since the shift to socialism, the Romanian Communist Party had developed an extensive program which would make the transition from small private property and production to the socialist production, founded on common property, with the purpose of shifting from extensive to intensive farming agriculture for the socialist transformation of the state. This program was based on a comprehensive analysis of the situation of agriculture made by the Romanian Communist Party. In this regard, the program adopted in plenary session of the Central Committee of the Romanian Communist Party of 5th March 1949 envisioned agricultural colectivization on the basis of socialism as a progressive and continuous process. It was conditioned on the development of an industry capable of providing agriculture with the tractors and the machines needed in order to function properly. It also needed people to work in this domain. Those who opposed the regime were arrested and as a direct result, from 1949 to 1962, 80000 people were the victims of these barbaric regulations. Based on the program adopted by the Plenary of the Central Committee of the Romanian Communist Party from 5th March 1949, the first cooperative households were inaugurated in June 1949. At the end of 1950 there were already more than 1000 cooperative households. (Aron Petric, Istoria Romaniei intre anii 1918-1981, Editura Didactica si Pedagogica, Bucuresti, 1981, pag 283)

The colectivization process developed continuously thereafter. At the end of the agricultural colectiviziation program 96% of the arable land was in the possession of the state.

The first stage of industrialization in the communist era of Romania This period lasted from 1945 up until 1964 and it was characterized by the exploitation of the Romanian economy, especially its industry, by the soviet economic enterprises called SovRoms. Romania provided 50% of the capital and the work force and the russian side provided the remaining 50% in this joint economic venture. The spoils of these businesses were supposed to be split between the two partners. These mixed institutions represented the way in which the Soviet Russia could control the main sectors of the Romanian economy. Also, the SovRoms drained Romania of a large amount of resources. Nineteen SovRoms were created in industrial branches of utmost economic and strategic importance for Romania.( Ministerul Educatiei si Invatamantului, Economie Politica, Editura Didactica si Pedagogica, Bucuresti, 1985, pag 40) Absolute control was exercised by the soviets over the SovRoms. Only russians representatives were allowed in the decision making process. The lack of control over its own resources and over the production lines, hence over the economy itself, was a problem for the romanian nation and state. The romanian side tried and succeded in 1953 to convince their counterparts in the Russian Federation to transfer the control of these companies over to the romanian government. Their claims and arguments could not be denied. Almost all the SovRoms were bought by the romanian side and thus ended the drainage of precious resources. The abolishment of the last SovRom in 1956, coupled with the withdrawal of the Soviet Army from Romania two years later, marks the removal of soviet control over the internal affairs of the romanian state and the end of the soviet occupation.

Bibliography

Aron Petric, Istoria Romaniei intre anii 1918-1981, Editura Didactica si Pedagogica, Bucuresti, 1981 Ministerul Educatiei si Invatamantului, Economie Politica, Editura Didactica si Pedagogica, Bucuresti, 1985