From neo-stalinism to sluggish markets: Transition in Romania

Abstract

The study of post-communist economies in Eastern Europe continues to be a generous and insightful source of valuable lessons in social and economic transition, particularly when approached through the lenses of integration and globalization. The present chapter uses a vivid historical perspective to follow the Romanian economy and society through a long string of successive and consequential changes, culminating with the transition from communism to free markets. A crucial factor in this approach is to understand history as a complex, path dependent interaction. The main focus of the analysis is on the accumulation and depletion of social capital, before and after the communist regime. The rise of free markets is discussed in connection with the rise of consumerism, and it is argued that the long–term sustainability of any system, including, but not limited to postcommunist Romania, depends on the interplay between social and natural capital. The looming economic and environmental challenges ahead can be handled only if social trust makes collective action possible.