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Romania Table of Contents


The Military and the National Economy

The Ceausescu regime pursued a policy designed to ensure that the armed forces would not become an unacceptable burden on the economy. In fact, the armed forces during the 1970s and 1980s made important economic contributions, providing cheap labor and managerial cadres. As economic problems mounted in the mid-1980s, the government curtailed military spending and broadened the use of the armed forces in the civilian economy. At the same time, the arms industry earned badly needed hard currency through weapons and matériel exports.

Data as of July 1989