Nationalization in Romania
Encyclopedia
The nationalization of the means of production was a measure taken by Romania
’s new Communist
authorities in order to lay the foundation of socialism. The act that allowed this measure to take place was Law 119, adopted by the Great National Assembly
on June 11, 1948. Article 1 decreed subject to nationalization “all the wealth of the soil not in the property of the state at the time of entry into force of the Constitution of the Romanian People’s Republic
, as well as individual enterprises, societies of any type and private industrial, bank, insurance, mining, transport and telecommunications associations”. Nationalized (generally without any form of compensation) were 8,894 industrial, mining, transport, banking and insurance companies, followed in November 1948 by 383 cinemas and medical-sanitary facilities. By 1950, the measure was applied to chemical enterprises, pharmacies and remaining economic entities.
The nationalization also included a significant number of homes. The figure of around 400,000 buildings is regularly mentioned. According to Societatea Academică din România (SAR) between 241.000 and 600.000 properties were affected by the measure.
The nationalization begun in 1948, together with the collectivization of agriculture
(1949-62), were decisive in undoing the capitalist economy and establishing a socialist economy based on state-owned or cooperative property.
After the fall of communism in Romania, the state has tried to compensate homeowners and enterprise owners who could not recover their houses, industries, or lands. A special fund dedicated to compensation was created in 2005: Fondul Proprietatea
.
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
’s new Communist
Romanian Communist Party
The Romanian Communist Party was a communist political party in Romania. Successor to the Bolshevik wing of the Socialist Party of Romania, it gave ideological endorsement to communist revolution and the disestablishment of Greater Romania. The PCR was a minor and illegal grouping for much of the...
authorities in order to lay the foundation of socialism. The act that allowed this measure to take place was Law 119, adopted by the Great National Assembly
Great National Assembly
The Great National Assembly was the legislature of the Romanian People's Republic and the Socialist Republic Romania. When Communism was overthrown in Romania in December 1989, the National Assembly was replaced by a bicameral parliament, made up of the Chamber of Deputies and the Senate.The Great...
on June 11, 1948. Article 1 decreed subject to nationalization “all the wealth of the soil not in the property of the state at the time of entry into force of the Constitution of the Romanian People’s Republic
1948 Constitution of Romania
The 1948 Constitution of Romania was the first adopted after the establishment of the Communist regime, which it enshrined into law. It was modelled on the 1936 Soviet Constitution and adopted by the Great National Assembly on April 13, 1948, being published in Monitorul Oficial the same day...
, as well as individual enterprises, societies of any type and private industrial, bank, insurance, mining, transport and telecommunications associations”. Nationalized (generally without any form of compensation) were 8,894 industrial, mining, transport, banking and insurance companies, followed in November 1948 by 383 cinemas and medical-sanitary facilities. By 1950, the measure was applied to chemical enterprises, pharmacies and remaining economic entities.
The nationalization also included a significant number of homes. The figure of around 400,000 buildings is regularly mentioned. According to Societatea Academică din România (SAR) between 241.000 and 600.000 properties were affected by the measure.
The nationalization begun in 1948, together with the collectivization of agriculture
Collectivization in Romania
The collectivization of agriculture in Romania took place in the early years of the Communist regime. The initiative sought to bring about a thorough transformation in the property regime and organisation of labour in agriculture...
(1949-62), were decisive in undoing the capitalist economy and establishing a socialist economy based on state-owned or cooperative property.
After the fall of communism in Romania, the state has tried to compensate homeowners and enterprise owners who could not recover their houses, industries, or lands. A special fund dedicated to compensation was created in 2005: Fondul Proprietatea
Fondul Proprietatea
Fondul Proprietatea is a joint stock company established by the Romanian state, but which is intended to become entirely private and independent from the state. Its specificity lies in the fact that its purpose and its operations are governed by special legislation...
.