ABSTRACT
The government elected on May 20, 1990 announced its economic program to move rapidly and irrevocably to a market economy. Several cornerstones of such a policy were envisioned by the new post-Communist government. First, a commitment was made to dismantle central planning bodies and their rigid control on prices, wages, and other economic variables, and gradually to replace these with proper market institutions. Second, the conversion to private ownership of property was deemed essential. Romania’s government has begun implementing the bold and comprehensive program of economic reform. To create competitive pressure on domestic suppliers, the government of Romania gradually removed, during 1990 and 1991, restrictions on imports and exports and eliminated the state monopoly for exchange transactions and foreign trade. The financial and technical assistance they are committed to provide hopefully will establish a background and a confidence-building factor for large foreign investment penetration in Romania.
