of Czechoslovakia in 1968 and his subsequent condemnation of that action placed the country in the position of being a rather reluctant ally within the pact. Ceausescu has also refused to allow Warsaw Pact maneuvers to be held in his country, and during the Czechoslovak invasion he refused to allow Bulgarian troops to cross Romanian territory. These actions, plus Ceausescu's repeated reference in public speeches to the desirability of the dissolution of both the North Atlantic Treaty Organization (NATO) and the Warsaw Pact, caused publication of anti-Romanian propaganda in the Soviet Union and the omission of an invitation to Ceausescu to attend a meeting of Eastern European leaders in the summer of 1971. The Romanian people were reportedly concerned about possible Soviet intervention in their internal affairs, as they had been often since 1968, but the situation seemed to stabilize in late 1971, at least in outward appearance.

Despite the military and political uncertainties brought about by Romania's independent stance in the Warsaw Pact and COMECON, the country has enjoyed a rapid economic growth rate. Direction of the country's economy is highly centralized and rigidly controlled by the PCR. A variety of economic ministries within the governmental structure are responsible for the administering of specific sectors of the economy, but policymaking is a function of the Standing Presidium of the party. The economy operates in accordance with five-year and annual plans that are all-encompassing and binding on all economic enterprises. Some attempts at decentralization have been made since 1968 in an effort to increase initiative on the part of lower level managers, but intransigence on the part of the hierarchy in releasing its hold has all but nullified the lukewarm reform efforts.

In 1972 Romania was into the second year of its Five-Year Plan (1971-75) and was beset by a host of economic problems. The planners had set high goals for growth during the period, but past overemphasis on heavy industrialization had left a residue of problems in all other areas. Agriculture had been neglected, production of consumer goods had never reached planned goals, and balance of payment deficits with Western nations threatened the foreign trade base. In seeking political and economic independence from the Soviet Union, the regime had placed itself in a precarious position, which forced it to find ways of becoming more competitive in world markets and fulfilling the basic needs of its people at the same time it sought to mollify the resentments of its COMECON partners and retain its ideological commitments to socialism and ultimate communism. Despite its maverick approach and its growing relations with the West, Romania was still tied by treaty, ideology, and geography to the Soviet Union and to its Eastern European communist neighbors.

CHAPTER 2

HISTORICAL SETTING

Romania's history as an independent state dates from about the middle of the nineteenth century; as a communist state, from about the end of World War II. The history of the Romanian people, however, is long, complex, and important when considered in the context of the overall history of the Balkan region. The origin and development of the Romanians remain controversial subjects among Romanian and Hungarian historians, whose arguments serve to support or deny claims to rightful ownership of large areas within Romania's borders (see fig. 1).

Until the end of World War II Romania's history as a state was one of gains and losses of territory and shifting borders. As the Ottoman Empire in Europe receded, the Romanians found themselves pressured by the Russian and Austro-Hungarian empires. Borders arranged by the victorious powers after World War I increased Romania's territory but also increased its minority population, particularly the Hungarian. Between the two world wars the country experienced a period of fascist dictatorship and aligned itself with Nazi Germany early in World War II, but it eventually overthrew the fascists and finished the war on the side of the Allies.

The borders arranged after World War II formalized the loss of territory to the Soviet Union but have remained stable since the end of the war. In the postwar chaos of the late 1940s, with Soviet troops occupying the country, Romania deposed its king and emerged as a communist state under the close scrutiny and supervision of its powerful northern neighbor, the Soviet Union. After the death of Josef Stalin the Romanian leadership began a slow pursuit of nationalist goals, which continued in the early 1970s. Although the Moscow-Bucharest ties have often been strained, the Romanians have carefully avoided a break that would provoke a reaction such as the Soviet-led invasion of Czechoslovakia in 1968.

The Romanian people see themselves as a Latin island surrounded by Slavs and Magyars (Hungarians). They are proud of their long, distinctly different historical development and consider that their history is important to them as proof of their ethnic uniqueness in the area and as proof that Romania belongs to the Romanians.

EARLY ORIGIN

The earliest recorded inhabitants of the area included in present-day Romania were Thracian tribes, known as Dacians, who settled in the area well before the Christian Era and established a major center in Transylvania (see fig. 2). These people practiced a primitive form of agriculture and engaged in limited trade with Greek settlements along the western coast of the Black Sea. By the middle of the first century A.D. the Dacians had grouped themselves into a loosely formed state ruled by a series of kings who attempted to expand their power to the north and west and, most aggressively, to the south into the area below the lower Danube River.