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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 ...
Romania borrowed in 1981 from the IMF a sum of $400 million out of the $1.5 billion line of credit, [9] but in November 1981, the IMF had cut off further financing because Romania failed to meet economic performance targets. [10] In January 1982, Romania and the banks reached an agreement of deferment.
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]
[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.
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 .
Ceaușescu with Jimmy Carter during a visit in Washington, D.C. in 1978. Also, the Socialist Republic of Romania was the first of the Eastern bloc nations to have official relations with the Western bloc and the European Community: an agreement including Romania in the Community's Generalised System of Preferences was signed in 1974 and an ...
Argentina's libertarian President Javier Milei laid out a bleak vision in his maiden speech a year ago amid an economic crisis. The crowd in front of Congress cheered his every word. A year later ...
However, during the 1950s, Romania's communist government began to assert more independence, leading to, for example, the withdrawal of all Soviet troops from Romania by 1958. [9] Overall, from the 1950s to the 1970s, the country exhibited high rates of economic growth and significant improvements in infant mortality, life expectancy, literacy ...