Romania's military spending

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%
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Manufacturing Production Growth 1930 - 1938

US = -5%
UK = 48%
France = -25%
USSR = 622%
Germany = 48%
Italy = 31%
Japan = 257%
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Increase in Defense spending as a percentage of Manufacturing Growth

US = 170%
UK= 190%
France = 231%
USSR = -3924%
Germany = 2394%
Italy = 193%
Japan = -1254%
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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

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: Romania - history and present, Andreea Mitrut and Violeta Piculescu, Department of Economics, Göteborg University

Thank you, dragos. I see I got (part of) my answer faster than I expected (34 min.)

Further figures for your statistics regarding pre-WWII Romanian economy:

Source: Agrigoroaiei et al Istoria Românilor - România întregită (1918-1940) Bucureşti: Editura Enciclopedică 2003

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: V. Axenciuc - The History of the Romanian National Currency Magazin Istoric 2/2000

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

This post has been edited by Dénes on September 11, 2005 01:50 pm

Wherefrom did you get these figures Dénes? They seem to indicate a stronger Romanian currency than illustrated above by Mr. Axenciuc.

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

Thank you both for the information.

The difference can be due to a larger inflation for the dollar between 1929 and 1936.

This post has been edited by bogmih on September 11, 2005 03:38 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.

Interesting. Polish-built P.24 was paid in French Franks and Polish Zlotys - not in lei.

Could the explanation be that the Romanian currency was at the time one of the weakest in Europe?

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.

Interesting. Polish-built P.24 was paid in French Franks and Polish Zlotys - not in lei.

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

Of course, I knew - I understood. I sent my post as additional information only.