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| WorldWar2.ro Forum > The Interwar Period (1920-1940) > Romania's military spending |
| Posted by: bogmih September 06, 2005 09:19 am |
| Does anybody know what was the ammount Romania was spending for its defense in the late 1930's? Also, how large was Romania's national income in that period (in $, preferably) and what proportion of it went to the army? If anybody could also tell me the evolution of Romania's industrial production in the interwar years, I'd be really gratefull. I'm asking because I already have the data for the Great Powers and I want to make a comparison with Romania. I know Romania's national income and military spending were much smaller than Russia's or Germany's, I just want to know how much smaller. That's the data for the Great Powers. I hope you'll find it interesting. Increase in defense expanditure 1930 - 1938 US = 162% UK = 363% France = 186% USSR = 752% Germany = 4577% Italy = 280% Japan = 798% -------------------------------------------------------------------------- Manufacturing Production Growth 1930 - 1938 US = -5% UK = 48% France = -25% USSR = 622% Germany = 48% Italy = 31% Japan = 257% -------------------------------------------------------------------------- Increase in Defense spending as a percentage of Manufacturing Growth US = 170% UK= 190% France = 231% USSR = -3924% Germany = 2394% Italy = 193% Japan = -1254% -------------------------------------------------------------------------- Nat. Income in 1937, totals and % spent on defense US _____= $68bn __ 1.5% ____ $1.02bn UK _____= $22bn __ 5.7% ____ $1.25bn France __= $10bn __ 9.1% ____ $910mn USSR ____= $19bn __ 26.4% ___ $ 5.01bn Germany = $17bn __ 23.5% ___ $4bn Italy ______= $6bn __ 14% _____ $840mn Japan ____= $4bn __ 28.2% ____$1.13bn |
| Posted by: dragos September 06, 2005 09:53 am |
| Some info on the economic development in Romania, 1918-1938: • Industry - between 1923-1938 Romanian industry grew at an annual rate of 5.4% - 1st in Europe and 6th in the world in oil production; - 2nd in Europe in gold extraction (after Sweden) and in natural gas extraction; • Agriculture - the most important branch of the national economy-1st in Europe in corn production and 4th in wheat production; Overall economic trends • Non-agricultural sectors of the economy accounted for 41.7% of national income Romania ceased to be an agrarian state during the inter-war period, but an agroindustrial state • GDP per capita in USD in 1938: $110 Romania,$62 Turkey, $76 Greece, $94 Poland,$89 Bulgaria, $108 Hungary, $146 France, $490 England • Literacy rate in 1938: 80% in Romania, 34.8% Portugal, 56.7% Greece, 57% Spain Source: http://www.hgu.gu.se/files/nationalekonomi/sem/romania_feb2005.pdf |
| Posted by: bogmih September 06, 2005 12:27 pm |
| Thank you, dragos. I see I got (part of) my answer faster than I expected (34 min.) |
| Posted by: Carol I September 10, 2005 10:53 pm | ||
Further figures for your statistics regarding pre-WWII Romanian economy:
Source: Agrigoroaiei et al Istoria Românilor - România întregită (1918-1940) Bucureşti: Editura Enciclopedică 2003 |
| Posted by: Carol I September 11, 2005 11:47 am |
| I have found some information on the old exchange rates needed to convert the budget from lei into US dollars. In 1929 the official exchange rate after the stabilisation was 1 US dollar for 167.2 lei. In 1936 the Romanian currency was depreciated by 38 %. Thus, 1 US dollar was valued at 230.7 lei (assuming the same value for the US dollar). Source: http://www.itcnet.ro/history/archive/mi2000/current2/mi43.htm |
| Posted by: Dénes September 11, 2005 01:48 pm |
| In November 1936, the exchange rates were, as follows: 1 Polish Zloty = 19,25 Lei, 1 US Dollar = 102,50 Lei, 1 French Frank = 4,75 Lei, 1 German Reichsmark = 39,50 Lei, or 1 Swiss Frank = 23,35 Lei. Gen. Dénes |
| Posted by: Carol I September 11, 2005 03:02 pm | ||
Wherefrom did you get these figures Dénes? They seem to indicate a stronger Romanian currency than illustrated above by Mr. Axenciuc. |
| Posted by: Dénes September 11, 2005 03:21 pm |
| I took the info from the original contract assigned by SSA to IAR-Brasov to build 25 P.24 fighters under Polish licence. Gen. Dénes |
| Posted by: bogmih September 11, 2005 03:37 pm | ||||
Thank you both for the information.
The difference can be due to a larger inflation for the dollar between 1929 and 1936. |
| Posted by: Carol I September 11, 2005 04:07 pm | ||
I guess this must be the explanation. It appears that during the Great Depression the US dollar had been devalued almost 41% by government decree. This suggests that Dénes' figures refer to the exchange rates before the 1936 devaluation of the Romanian currency. |
| Posted by: woj September 11, 2005 05:32 pm | ||
Interesting. Polish-built P.24 was paid in French Franks and Polish Zlotys - not in lei. |
| Posted by: Carol I September 11, 2005 06:13 pm | ||
Could the explanation be that the Romanian currency was at the time one of the weakest in Europe? |
| Posted by: woj September 11, 2005 06:36 pm | ||
Not at all, I suppose. Most of the Polish "military" contracts was paid in Zlotys. From 11 May, 1935 Polish-Romanian trade was realized according to clearing agreement. But, for instance, the Polish AT guns, sold to Romania in July, 1939, was paid in British pounds. |
| Posted by: Dénes September 12, 2005 01:14 am | ||||
The contract I was referring to was an internal affaire, namely issued by the ARR's SSA directly to the I.A.R. Works; therefore, it was calculated in Lei. The exchange rate was given only as reference. Gen. Dénes |
| Posted by: woj September 12, 2005 05:32 am | ||
Of course, I knew - I understood. I sent my post as additional information only.  |
| Posted by: Imperialist November 09, 2005 09:44 pm | ||
I dont think the conclusion is correct. Though the manufacturing industry was growing, agriculture and extractive industry were still providing the bulk of revenues. One could far more accurately say that Romania became an agricultural and oil-exporting country. |