Before the 1960's, Romania's economy was based on agriculture.  But since then, the government has built many new factories and power plants and taken other steps to increase industry in the country.  Under the Communist government, industry--including manufacturing, mining, and construction--passed agriculture as the leading producer of income in Romania.  Industry also passed agriculture as the leading employer. 

Under the Communists, the national government controlled Romania's economy.  It owned the country's factories, mines, and banks, and owned or controlled most of its farms.  It decided how much of each product should be produced, and it set the price of most goods.  After the 1989 revolution, the non-Communist government loosened government control of the economy and allowed some private enterprise.  In mid-1992, the government took a large step towards creating a free enterprise economy.  It began selling shares in state-owned companies and distributing vouchers that could be exchanged for shares in other state-owned businesses.  Also, many new private businesses were set up. 

Natural resources.  About 60 percent of Romania's land is fertile cropland and rich pastureland.  Another 25 percent has forests that provide timber.  The mountains and plateau have valuable mineral deposits.  Natural gas and petroleum rank as Romania's most important mineral products.  Other important minerals include bauxite, coal, copper, gold, iron ore, lead, silver, and zinc.

Industry.  Romania had very little industry when the Communists took over.  To get industry started, the Communists stressed the production of capital goods.  Capital goods include raw materials needed for industry, buildings in which industrial work is done, machines and tools needed to do the work, and power plants that supply energy for the work.  Production of consumer goods (those manufactured for use by people) lags far behind production of capital goods. 

The manufacture of machinery for farms, factories, and mines is the leading industrial activity.  Romania also produces cement and other construction materials, iron and steel, petroleum products, and wood products.  Food processing and the manufacture of clothing and shoes are the only consumer goods activities among the top industries in Romania.  Bucharest is the chief industrial center.  Other industrial centers include Brasov, Cluj-Napoca, Ploiesti, and Timisoara. 

Services.  Trade and transportation are the leading employers among service industries in Romania.  These industries are responsible for getting the country's agricultural and industrial products from producers to buyers.  Other service activities include education, health care, housing, and national defense. 

Agriculture.  Crops account for about three-fifths of the value of Romania's agricultural products, and livestock for about two-fifths.  Grains, especially corn and wheat, are the leading crops.  Other crops include grapes and other fruits, potatoes, and sugar beets.  Farmers raise more sheep than any other kind of livestock.  They also raise cattle, horses, pigs, and poultry. 

In pre-Communist days, almost all of Romania's farmland was privately owned.  But the Communist government gradually took control of 90 percent of the land.  It created collective farms and state farms.  Hundreds of families worked together on each collective farm.  The crops and livestock they produced belonged to the whole group.  Workers received wages and farm products, and part of the income earned from the sale of the products.  Officially, the people owned the collectives.  But the government told them what to produce and how to manage the farms.  State farms were owned and operated by the government.  The farmers received wages.  The government provided much modern farm equipment for the state farms.  But collective farmers still relied heavily on old-fashioned equipment. 

After the 1989 revolution, the government passed land-reform laws that allowed some collective farms to be broken up and their land redistributed to farmworkers.  Some farmers whose lands had been taken away by the Communists were again able to own their own farms.  At first, the land-reform laws did not break up state farms.  Many farmers whose land had been incorporated into the state farms were issued shares of stock in new agricultural companies.  These companies took the place of state farms.  But in the late 1990's, the government began to break up some state farms. Today, about 80 percent of agricultural land is privately owned. 

Trade.  Industrial machinery, fuels, and chemicals are both important exports and imports of Romania.  Other exports include cement, clothing and shoes, processed foods, and lumber.  Iron ore, coal, and cotton are other major imports. 

Until the 1960's, Romania carried on about 80 percent of its trade with the Soviet Union and other Communist nations.  But in the 1960's--as part of its policy to free itself from Soviet control--the country began expanding its trade with Western European nations and the United States.  The Soviet Union broke up in 1991.  Today, however, Romania's major trading partners still include countries that made up the former Soviet Union, especially Russia and Ukraine. 

Transportation and communication.  Trains are Romania's chief means of long-distance travel.  Buses provide most of the transportation within cities.  Fewer than 2 percent of Romanians own a car.  Bucharest has the nation's main airport.  The government owns Romania's railroads, bus lines, and major airlines. 

About 40 daily newspapers are published in Romania.  The government owned most radio and television stations under Communism, but many independent stations were set up in the early 1990's.