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In the 1980s, severe austerity measures were imposed in the Socialist Republic of Romania by President Nicolae Ceaușescu in order to pay off the external debt incurred by the state in the 1970s. Beginning in 1981, the austerity led to economic stagnation that continued all throughout the 1980s, a " sui generis shock therapy " which lowered the ...
The effect of the cuts in imports in Romania, a net importer of food from the West, was however not correctly estimated by the foreign analysts and it led to food shortages. [5] Romania's record - having all of its debts to commercial banks paid off in full - has not been matched by any other heavily-indebted country in the world. [6]
The economy of the Socialist Republic of Romania was centrally planned, similar to the one of the Soviet Union. Most of the means of production (including all large and medium enterprises) were owned by the state , which established production plans as part of the Five-Year Plans .
The Romanian authorities began a very tough austerity program, which gained the approval of IMF, releasing the second tranche of the loan on 24 June 1982. [11] Following negotiations, the Paris Club agreed to delay 80% of the arrears due for 1981 and 1982 and the IMF released the last tranche in December 1982.
[143] The austerity policy was largely caused by Ceaușescu's efforts to pay off Socialist Romania's foreign debt. The policy was resented by both Andrei and Rădulescu; according to Andrei, US Vice President George H. W. Bush, who visited Romania in 1983, personally met with Rădulescu to offer cheap loans through the Commodity Credit Corporation.
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In world cinema, austerity isn’t just a quality — it’s an aesthetic ideal that gets passed around from country to country. The epicenter of high cinematic austerity was once the Sweden of ...
Exceptions were at the beginning of the 1980s austerity policy in Romania, when prices were risen in order to reduce consumption and allow the government to pay back the foreign debt. Following the onset of liberal economic reforms in November 1990, as prices and exchange rates were gradually liberalized, inflation began to rise. [3]