..., ith the IMF suspending further loans, and hindered Romanias efforts to attract foreign investment. In June 1995 the Romanian parliament passed a mass privatization program ith the goal of transferring more than 2,000 companies to private onership. Due to the continued slo pace of economic reform, hoever, the IMF did not resume disbursing loans to Romania in 1996, and foreign investment remained negligible. In 1997 the Romanian government promised to institute rigorous reforms and the IMF responded by aarding the country a 430 million loan. Hoever, the government only succeeded in lifting price controls before privatization bogged don again. In January 1998 the IMF froze disbursement of loans to Romania once again. Most companies remained in state hands as of early 1999. Romania is currently a member of the IMF, the International Bank for Reconstruction and Development orld Bank, and the European Bank for Reconstruction and Development EBRD. Romania became an associate member of the European Union EU in February 1993, and in December 1997 the EU invited Romania to begin the process of becoming a full member. No timetable as established at that time for hen it ould join. A free trade agreement ith the European Free Trade Association ent into effect in May 1993. A Labor Unemployment has been a significant problem in Romania since the collapse of Communism in 1989 6.3 percent of the population as unemployed in 1998. Some 40 percent of the labor force is employed in agriculture, forestry, or fishing 29 percent in manufacturing, mining, or construction and 31 percent in services. 22 percent of the orking population belongs to one of a number of ne trade organizations in Romania. The regulations governing trade unions ere liberalized after the collapse of the Communist government, and significant labor unrest occurred in the early 1990s, particularly among miners. Approximately 22 percent of the orking population belongs to one of a number of ne trade organizations in Romania. The largest such organization is the National Free Trade Union Confederation of Romania or, CNSLR-Fratia, hich as formed by a merger in 1993 and has headquarters in Bucharest.B Agriculture Farm in Romania More than to-fifths of the land in Romania is used to gro crops. During the Communist period much of the land as organized into collective farms. Since the end of Communist rule in 1989, the Romanian government has returned most of the countrys farms, such as this one located near the Carpathian Mountains, to the original oners or their heirs.alter S. ClarkPhoto Researchers, Inc. Expand Field crops or orchards occupy 43 percent of land in Romania. In the mid-1980s more than 80 percent of farms in Romania ere either oned by the state or organized as collectives in collective farms, orkers received ages, farm products, and a portion of the farms profits. Because of the Communist governments emphasis on industrial development, agricultural improvements and investments ere neglected, and food shortages developed in the 1980s.After the Communist regime as overthron, Romanias ne government began the process of dissolving collective farms and distributing land to individual farmorkers. Although state farms ere not broken up, farmorkers hose land had been incorporated into state farms ere compensated. By 1994 about 46 percent of agricultural land had been returned to its original oners or their heirs, and by 1995 more than three-fourths of Romanias farmland had been privatized.In 1992 a severe drought caused a major decline in agricultural output by the folloing year, hoever, the sector had largely recovered. In the early 1990s Romanias principal crops ere grains, including corn, heat, barley, and rye potatoes grapes and sugar beets. Cattle, pigs, sheep, horses, and poultry ere the most important types of livestock. ine production plays a significant role in Romanian agriculture.C Forestry and Fishing Forests, hich cover 28 percent of Romanias total land area, are state property. The countrys timber provides the basis for important lumber, paper, and furniture industries. The Black Sea and the Danube delta regions are knon for their sturgeon catch, and the country undertakes considerable fishing operations in the Atlantic Ocean.D Mining Petroleum is Romanias principal mineral resource, and the city of Ploiesti is the center of the petroleum industry. Hoever, petroleum production is declining due to the gradual depletion of reserves. Important ne deposits ere found under the Black Sea in the 1980s, but petroleum reserves ere expected to remain slim. Natural gas is produced in significant quantities. Other mineral products include lignite bron coal, hard coal, iron ore, bauxite, copper, lead, and zinc.E Manufacturing Romanian Bauxite Plant A bauxite extraction plant spes a cloud of pollution over the Danube delta city of Tulcea. Severe air pollution problems stem from the rapid industrialization of Romania during the Communist period.Barry LeisCorbis Expand During the Communist period, Romanias leaders pursued a policy of rapid industrialization ith an emphasis on heavy industry, particularly machinery and chemicals a much lesser emphasis as placed on consumer goods goods manufactured for use by people. In the early 1990s Romanias chief manufactures ere machinery, chemicals, cement and other construction materials, iron and steel, ood products, processed foods, textiles and clothing, and footear. Many industries, particularly iron and steel, have been hampered by shortages of electricity and ra materials.F Energy Thermal poer plants fueled by petroleum, gas, and coal supply 59 percent of Romanias electricity, hile most of the rest comes from hydroelectric facilities. The country has to major hydroelectric plants, operated jointly ith Serbia at the Iron Gate gorge on the Danube. A nuclear poer plant opened in 1996 at Cernavoda.G Tourism and Foreign Trade Romanias tourism industry has expanded considerably since the end of the Communist period. Popular attractions include the Carpathian Mountains, the Danube delta region, and the resorts and beaches of the Black Sea.During the early part of the Communist period, Romanias foreign trade as conducted almost exclusively ith the USSR and other Communist countries. Hoever, in the 1960s trade restrictions ere eased somehat and Romania began expanding its contacts ith estern nations. In 1999 exports totaled 8.5 billion and imports totaled 10.4 billion. Principal exports include metals and metal products, mineral products, textiles, and electrical machines and equipment. Imports include minerals, machinery and equipment, textiles, and agriculture goods. Leading purchasers of Romanias exports are Germany, Italy, France, Turkey, The Netherlands, and China. Chief sources for imports are Germany, Italy, Russia, France, the United States, and Egypt.H Currency and Banking The basic monetary unit of Romania is the leu plural, lei, divided into 100 bani. The leu as de...
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