The nationalization of the
means of production
The means of production is a term which describes land, labor and capital that can be used to produce products (such as goods or services); however, the term can also refer to anything that is used to produce products. It can also be used as an ...
was a measure taken by
Romania
Romania ( ; ro, România ) is a country located at the crossroads of Central, Eastern, and Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, Serbia to the southwest, Moldova to the east, and ...
'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 Great National Assembly or Grand National Assembly may refer to:
* Great National Assembly of Alba Iulia, an assembly of Romanian delegates that declared the unification of Transylvania and Romania
* Great National Assembly (Socialist Republic of ...
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
[SAR Brief Policy n°34, September 2008, page 5 ]
direct link to the survey
/ref> were affected by the measure.
The nationalization begun in 1948, together with the collectivization of agriculture
Collective farming and communal farming are various types of, "agricultural production in which multiple farmers run their holdings as a joint enterprise". There are two broad types of communal farms: agricultural cooperatives, in which member- ...
(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.
See also
*Economy of the Socialist Republic of Romania
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 ...
* Nationalization
* SovRom
Notes and references
* Stoica, Stan (coordinator). Dicţionar de Istorie a României, p. 233-4. Bucharest: Editura Merona, 2007.
* Other references:
External links
*
Text of the law, from the Romanian Chamber of Deputies
* {{in lang, ro}
Socialist Republic of Romania
Economy of Romania
Romania
Romania ( ; ro, România ) is a country located at the crossroads of Central, Eastern, and Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, Serbia to the southwest, Moldova to the east, and ...
1948 in Romania
Reform in Romania