Category Archives: economics

Rebuilding the Crimean Bridge

From Troubled Water: A Journey Around the Black Sea, by Jens Mühling (Armchair Traveller series; Haus, 2022), Kindle pp. 31-32:

Paradoxically, the two [Armenian] Hotel Fortuna employees were the most miserable people I came across in Taman. Everyone else in the small town was in high spirits; I met barely anyone during my three-day stay who did not rejoice in the bridgebuilding. Those who had found work on the huge building site, or who were hoping to make a living from tourists from every corner of Russia who would soon pass through their town on their way to Crimea, rejoiced. Those who had relatives on the peninsula rejoiced that they would no longer have to take the sluggish, chronically overloaded ferry to visit them in the summer. The director of the local history museum rejoiced because her display cases were now full to bursting with archaeological artefacts – Cimmerian horse harnesses, Roman drinking vessels, Genoan coins – found while the bridge’s groundworks were laid. Last but not least, the joy of Taman’s residents was shared by the 2,500 entrants into a nationwide poetry competition that the office responsible for the bridge’s construction had recently launched to encourage patriotic eulogies of their feat. The victor had not yet been chosen when I was there, but here is a sample of what I read:

Crimea and Russia
Forever inseparable
Wedded by a bridge
That looks like a temple

The bridge was indeed something of an unexpected windfall for Taman. The town, with a population of 10,000, had hitherto wallowed in such oblivion, even by Russian standards, that its old name of Turkish origin, Tmutarakan, had become a national byword for any godforsaken provincial backwater – a kind of Russian Hicksville. Soon though, thanks to the bridge, Taman would no longer be a dead end on the tip of a promontory but Russia’s last stop before Crimea.

There was as yet little sign of this earth-shaking change. The bridge was a building site, the holiday season had not yet begun, and Taman seemed to be only just stirring from hibernation. The local museum was open but deserted, the model Cossack village on the edge of town still closed. A Soviet tank on blocks in the market square stood as a memorial to the Great Patriotic War, and its aerial counterpart, a fighter plane, greeted you on the road into town. Both of them were mounted on concrete pedestals with the constantly cited – and constantly wrong – dates carved into them: 1941–1945. As everywhere else in the former Soviet Union, the hushedup war years of 1939 and 1940 – when Stalin was still making common cause with Hitler to carve up Central Europe – were missing.

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Georgian Immigrants in Italy

From Troubled Water: A Journey Around the Black Sea, by Jens Mühling (Armchair Traveller series; Haus, 2022), Kindle p. 92:

We ate smoked anchovies. Alik showed me how to gut them. You snap off the head and use the fish’s sharp jaws like a knife, slitting open its belly with its own mouth to remove its innards. You eat the rest, complete with tail and fins. It tasted divine.

A quiet thirteen-year-old girl had dinner with us, a neighbour’s daughter. She was being brought up by her grandmother because her mother was working as a nanny for an Italian family in Bologna. Many Georgians had gone to Italy in recent years to look after children, care for old people, and work as housekeepers. Alik had an interesting theory about the bonds between the Italians and the Georgians. ‘They like us because we cook well, talk a lot, like to sing, and because we are warm-hearted. The Italians say the Georgians are how they used to be when they were still poor.’

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Greek Travails, 1949-2009

From Adriatic: A Concert of Civilizations at the End of the Modern Age, by Robert D. Kaplan (Random House, 2022), Kindle pp. 272-274:

The end of World War II brought not peace but a civil war lasting until 1949, between the Communists and the ultimately victorious right-wing loyalists, which resulted in 80,000 dead and 700,000 internal refugees. Because of the brutality on both sides, particularly against civilians, Greek politics would remain polarized for decades, divided between parties of the hard Left and the hard Right, so that a modern liberalism and a modern conservatism would find little room to emerge. Thus did Greece, abetted by its geography—as close to Moscow as to Brussels—become an ideological battleground of the Cold War.

Greece’s Cold War years were marked by weak governments as well as deep, internecine political divisions, which were further aggravated by the independence struggle on Cyprus, with its consequent calls for Enosis (or union) of the island with Greece. (Of course, this itself was an echo of the Great Idea.) In 1967, junior officers staged a coup, toppling the Greek government in Athens. This led to a particularly brutal seven-year military dictatorship in which the Athens “Regime of the Colonels” bore greater similarities to those of the Third World than to any government in Western Europe. The Colonels’ regime dissolved in 1974 after their failed political intervention in Cyprus led to a Turkish invasion and occupation of the northern part of the island.

It was only with the reestablishment of democracy in July 1974 under the conservative politician Constantine Karamanlis (who had returned to Greece from exile in France) that Greek politics began slowly—for the first time in history—to stabilize and achieve a modern, Western character. Greece, the birthplace of the West, finally reentered the West. This process was helped by the country’s admission to the European Economic Community (later the EU) in 1981.

Like membership in NATO, membership in the EU and Greece’s subsequent admission to the Eurozone represented purely political decisions on the part of the Western alliance. In fact, neither Greece’s bureaucratic institutions nor its economy was ever up to the standards of core-Europe and the West. Yet, it was felt (if never publicly admitted) that leaving Greece outside European institutions, given the country’s vulnerable geographical position and its long history of instability, would pose a greater threat to the West than bringing Greece inside them. As it turned out, the Greek variant of the Great Depression, in which the country was brought to its knees beginning in 2009 by widespread poverty, a dramatically declining GDP, and mass unemployment—leading to a far-left-wing government initially close to Moscow—was directly related to the country’s abject lack of preparedness for the rigors of the Eurozone. The Byzantine and Ottoman legacies of underdevelopment, while not determinative and always able to be overcome, still counted for something in Greece in the second decade of the twenty-first century.

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Albania and Montenegro: Tough Transitions

From Adriatic: A Concert of Civilizations at the End of the Modern Age, by Robert D. Kaplan (Random House, 2022), Kindle pp. 247-248:

Because the decades of Communist autarky only further decimated the already weak polity, the 1990s saw massive corruption and bouts of anarchy undermine an embryonic democratic system that was buffeted by social upheaval, as masses of people deserted the countryside and rushed into the cities. But near the end of the second decade of the twenty-first century, a more nuanced picture began to emerge amid dramatically higher living standards among part of the population, and a commercial transformation and revitalization of the cities. Albania had joined NATO in 2009 and was possibly on a path toward membership in the European Union. It had avoided ethnic and religious conflict and had proper, peaceful relations with its Balkan neighbors—no mean feat considering the epic and bloody past.

Nevertheless, organized crime and endemic corruption had become major elements of daily life. Albania, as I write, is still a deeply divided and weak democracy. An opposition leader has accused the government of promoting “narcotraffickers, pimps, even killers as Members of Parliament.” The U.S. State Department and Europol have declared Albania the largest producer of cannabis and the key gateway for heroin into Europe. In 2016 Albanians “came second only to Syrians as asylum seekers in Germany and France. More than 42 per cent of the population live on less than $5 a day,” reports Besart Kadia, executive director of the Tirana-based Foundation for Economic Freedom. While the long, historical ages of extreme isolation have receded, Albania remains a world removed from Italy, less than fifty miles to the west across the narrowest point of the Adriatic.

Albania and Montenegro both are, in developmental terms, places where Europe ends and also begins. Geographically they are unquestionably part of Europe, even as their mountainous topographies have tempered the influence of the Mediterranean. Moreover, historically and culturally they have been mightily shaped by the long centuries of often weak rule by the Ottomans, whose imperial footprint was planted mainly in the Near East. These are in many respects Europe’s borderlands, which Europe cannot disown. If Europe makes any claim to universal values, it has no choice but to find a way to spiritually incorporate these two far-flung outposts of imperial Venice.

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From Ethnic to Criminal Networks

From Adriatic: A Concert of Civilizations at the End of the Modern Age, by Robert D. Kaplan (Random House, 2022), Kindle pp. 229-230:

A middle-aged writer, who comes to Montenegro often from an adjacent country, informs me soon after I arrive:

“The real issue here is the security problem on account of the cocaine wars between gangs located in the suburbs of Kotor. This is a function of the corruption, the nepotism, and the weak government institutions. Whoever runs the casinos runs Montenegro, so you don’t ask who runs the casinos. Criminal networks flourish at the same time as the building of resorts near the Adriatic. There is money here, I mean. Without the clans there is no mafia, but without the clans there is also no tradition. If you don’t hire your relatives, you’re a bad guy. Everyone privately cries for Tito. They want him back. Under Tito, there were almost no gangs, no rapes, much less drugs, more safety, more security, dignity to life. You didn’t have to worry about what could happen to your kids like you do now. People were not so rich and not so poor as today. And so what if you couldn’t vote every few years.”

With the exception of Slovenia, safely tucked inside Central Europe, this is the refrain that I have heard throughout the former Yugoslavia where the rule of law has sunk shallow roots and thus atavistic allegiances thrive. Of course, this is all a legacy of Communism, which Tito himself inflicted upon everyone. Except that in Montenegro I have reached a geographical juncture in my travels—far to the south and deep in the mountains—where the ethnic politics I observed in a place like Croatia has deteriorated into (and been replaced by) outright criminality.

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Trieste at the Edge of Empires

From Adriatic: A Concert of Civilizations at the End of the Modern Age, by Robert D. Kaplan (Random House, 2022), Kindle pp. 103-106:

Trieste signals a fault zone. It is a city that has hosted Romans from the West, Byzantines from the East, Goths, Venetians, Napoleon’s empire, the sprawling and multiethnic Habsburg Empire, Italy, Nazi Germany, Yugoslavia, and Italy again since 1954. That last handover took years of diplomatic wrangling, as if to confirm that Trieste’s very location—on a spit of territory that could have been placed in either Italy or Yugoslavia—constitutes proof of Trieste’s unstable position on the map. The mid-twentieth-century American journalist John Gunther noted that between 1913 and 1948, Trieste lived under no fewer than five different occupations. The race between Allied and Communist Yugoslav forces for control of Trieste in May 1945 was arguably the first major confrontation of the Cold War, perhaps providing a “reference point” for President Truman in the later crises of the Berlin blockade and the Korean War.

Trieste marks the borderline not only between the Latin world and the Slavic one, but also between the Latin world and the German one. Indeed, this city of Italians, Germans, Austrians, Slovenes, Croats, Serbs, Greeks, Armenians, Jews, and so on registers Mitteleuropa, with its own unparalleled cosmopolitanism, broadening out into an international civilization. Though, if this neoclassical, utilitarian, and commercial city has one cultural identity or spirit above others, it might be that of the Austrian Habsburgs, who ruled here between 1392 and 1918, except for a short Napoleonic interlude.

Trieste does indeed put empire on your mind. I visit the castle of Miramare, just north of the city, built with round porthole-like windows by Maximilian, the younger brother of Franz Joseph, who believed that the Habsburgs had no choice but to control the Adriatic. It is a monument to imperial delusion…. Maximilian, who believed deeply in liberal reform as a means of preserving and sustaining empire, was fated (of all things!) to go to far-off Mexico in 1864 as its new emperor—encouraged by his wife—only to be executed by indigenous revolutionaries three years later, completing his dark and tragic imperial fantasy.

Trieste reminded historian and travel writer Jan Morris “poignantly of the passing of all empires, those seductive illusions of permanence, those monuments of hubris which have sometimes been all evil, but have sometimes had much good to them.” Because empires, by definition, are often multinational and multiethnic, it is when empires collapse that “racial zealotry,” in Morris’s words, can rear its head. When the Italians seized Trieste from the Habsburgs in 1919, they closed Slovene schools in the city and tolerated violence against the Slavs. When the Yugoslavs arrived in the city in 1945, they reopened the Slovene schools and forced many Italians to change their names. In 1946, when Morris first saw Trieste, the writer “pined” for a cohesive and “distilled” Europe, and imagined this city as “the ghost of that ideal.” But the “false passion of the nation-state,” Morris continues, “made my conceptual Europe no more than a chimera.” History isn’t over, though. And as Morris says in old age, “One day the very idea of nationality will seem as impossibly primitive as dynastic warfare or the divine right of kings…a hobby for antiquarians or re-enactment societies.”

In the present day, the port of Trieste will soon sign an agreement with Duisburg, the world’s largest inland port, located at the confluence of the Rhine and Ruhr Rivers in western Germany, with the aim of increasing traffic on the new Silk Road that China is organizing. Trieste will acquire through Duisburg access to the northern—land—part of the Silk Road that terminates at the Pacific; while Duisburg will acquire by way of Trieste access to the southern, maritime Silk Road that runs through the Suez Canal and the Indian Ocean. A postmodern, multinational imperial system may re-emerge, this time supervised by the Chinese, and encompassing Trieste. A few months hence, I will get a message from a friend about “Chinese, Russian, American, and Mitteleuropean investors competing for bases in the port here—the second great opportunity after Maria Theresa,” during whose reign the city became a vibrant, multiethnic hub. Yes, Trieste always did prosper under a big project—this time maybe with the Chinese, who will make Trieste another imperial reference point.

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Republic of Venice, 726-1797

From Adriatic: A Concert of Civilizations at the End of the Modern Age, by Robert D. Kaplan (Random House, 2022), Kindle pp. 74-76:

Norwich writes: “Venice, alone of all the still-great cities of Italy, was born and brought up Greek…. Long after she shed her dependence on Constantinople, she continued to turn her back on Italy and to look resolutely eastward; the nightmare tangle of medieval Italian politics, of Guelf and Ghibelline, Emperor and Pope…none of this was for her.” Doges used Byzantine honorifics. The Venetian ruler’s dress was modeled on that of the Byzantine exarch. Byzantine girls were sent to Venice to marry; Venetians sent their sons to finish their education in Constantinople. Venice’s political links with Byzantium helped shield it from the quarrels among the other city-states of Italy, with their rapidly shifting tactical alliances that were the epitome of amorality. Because a rival commercial system, run by Arabs, stretched across North Africa and the Middle East, Venice became crucial to Constantinople as a Byzantine outlet to Europe. The Venetian model of beauty, as exemplified by the low domes and small windows of Saint Mark’s, recalling Hagia Sophia in Constantinople, was mainly Eastern.

Of course, the underpinning of Venice’s fortuitous separation from the rest of Italy was at root geographical. That great lagoon, the few miles of shallow water that protected Venice from the mainland in all its aspects, allowed it to focus eastward toward Byzantium, and, in addition, was the savior against Saracens, Magyars, and other invaders in the early centuries of Venetian independence. The lagoon, by confining Venetians to so restricted a space, also fostered internal cohesion. “Among Venice’s rich merchant aristocracy,” Norwich explains, “everyone knew everyone else, and close acquaintance led to mutual trust of a kind that in other cities seldom extended far outside the family circle.” The result was efficient administration by which risky trading ventures, involving vast outlays of capital, “could be arranged on the Rialto in a matter of hours.” Neither utopian nor egalitarian, Venice represented the triumph of a closed elite. Optimism was banned, unless it could be grounded in facts and percentages. (It was from such a tightly woven merchant aristocracy that Marco Polo, the late-thirteenth-century Venetian explorer of China and Central Asia, originated—of whom more later.)

Without the lagoon and the canals—without the presence of water, that is—Venice simply would not have had the beauty that endowed its population with such love of their city-state: it was a love of the polity, rather than that of one man or king. This, and the internal peace they enjoyed, fostered a “humaneness of feeling” that, as Berenson suggests, made Venetians “the first really modern people in Europe.”

What ensues, with its succession of eighty-four doges from 726 to 1797, is a thousand-year history as long, intricate, dense, intoxicating, and overwhelming as that of Byzantium itself, mind-numbing in its constant intrigues and periodic insurrections. It is a comparatively dim and opaque canvas that produced few giants and larger-than-life heroes (Pietro II Orseolo, who governed toward the end of the tenth century, being one exception to this rule), for trade and commerce, dull as these things are, reduce the long-term impact of bloodshed and its accomplice, glory. Because it is so thematically uninspiring, Venetian history is generally hard to remember, and for the literate, non-expert public is known best through the works of Shakespeare—who uses Venice as a somewhat shameless and cynical backdrop to reveal vulnerability and passion contained in everyone, Moor and Jew alike, people otherwise depicted as one-dimensional and therefore uninteresting in his day.

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U.S. vs. Japanese Submarine Warfare

From Ultra in the Pacific: How Breaking Japanese Codes and Ciphers Affected Naval Operations Against Japan, 1941-45 (The Secret War), by John Winton (Sapere Books, 2022), Kindle pp. 190-193:

‘PRESS home all attacks,’ wrote Rear Admiral James Fife USN, Commander Submarines South-West Pacific, in his standing orders. ‘Pursue relentlessly, remembering that the mission is to destroy every possible enemy ship. Do not let cripples escape or leave them to sink — make sure that they do sink.’

The American submariners in the Far East, very ably assisted by the British and the Dutch, put Admiral Fife’s orders faithfully into effect and achieved devastating results. By VJ Day, 1945, Allied submarines in the Far East were actually running out of targets. By that time, although submarines still constituted only 2 per cent of the American war effort on the Pacific, American submarines had sunk two-thirds of the total Japanese merchant ship tonnage sunk during the war, and had also sunk one out of every three of the Japanese warships sunk.

The United States and the Imperial Japanese Navies were roughly equal in submarine strength in the Pacific at the outset of the war. Neither navy had had any operational experience of submarines in the First World War. Both had prepared for submarine warfare on a long-range scale, and primarily for use against enemy warships. The crucial difference in the Second World War lay in the US Navy’s technological advances, its readiness to profit by tactical experience, and its proper strategic deployment of its submarines. In all three areas the Americans were superior.

The one advantage the Japanese submarines had was the quality of their formidable 40-knot, oxygen-powered, longer ranged torpedoes, with twice the explosive charge of the American torpedoes. American torpedoes were frequently defective and, incredibly, it was nearly two years before the US Navy established the causes of the defects and remedied them. Under operational patrol conditions American torpedoes nearly always ran eight to ten feet below their proper depth, so that their magnetic detonators, designed to be activated by the target ship’s metal hull, failed to work properly. Similarly, the contact detonators only worked best after an oblique impact, thus, ironically, penalizing the very submarine captains who aimed best and hit their targets broadside on.

Design faults were compounded by bureaucratic obstruction: shorebound officers and bureaucrats continued to insist that the whole fault lay with incompetent submarine captains who could not aim properly, and refused to believe submarine captains who said they had heard their torpedoes hitting the target and failing to explode.

For the first months of the war Japanese submarines had considerable success in sinking Allied warships, especially in ‘Torpedo Junction’ in the summer of 1942. But the fatal Japanese tendency to indulge in non-profitable peripheral activities soon began to drain away their submarine patrol strength.

The Japanese diverted their submarines to carry midget submarines, to no tactical purpose, or to act as communication links, or to wait at rendezvous to refuel flying-boats, or to carry out unimportant surface bombardments, which had no more than pinprick nuisance value, of Midway, or Canton Island or Johnston Island, or (in 1942) the coasts of Vancouver and Oregon.

The largest Japanese submarines carried aircraft — requiring an hour after surfacing to assemble and launch — which they transported thousands of miles for valueless reconnaissance flights. One submarine, I-25, launched her aircraft loaded with incendiaries with the serious intention of setting light to the forests of North America. As the war progressed more and more Japanese submarines were taken off patrols and used to carry men, ammunition and food to beleaguered Japanese island garrisons bypassed and left to ‘wither on the vine’ by the Allied advance.

Unquestionably the best strategic use the Japanese could have made of their submarines would have been to make a determined effort to cut the supply lines from Pearl Harbor to Micronesia and Australia. They made no such effort. There was never any submarine war in the Pacific remotely comparable with the struggle against the Atlantic U-boat. The US Navy began by escorting their ships in convoys in the Pacific, but by the end of 1943 there was so little enemy submarine activity that single ships were steaming across the Pacific unescorted.

To misuse of submarines in exotic sideshows the Japanese Navy added an almost complete failure to safeguard their own surface ships against submarines. The Japanese were obsessed by the idea of an ‘offensive’ war. Like the British in the First World War, they regarded convoys as ‘defensive’ and therefore somehow demeaning and unworthy of a warrior nation. Convoy did not appeal to the Samurai spirit.

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Romania’s Anti-Hoarding Laws, 1985

From The New York Review of Books, 23 October 1986, by “a writer who frequently travels in Eastern Europe and whose name must be withheld”:

One of my friends said to understand current developments I must first consult a decree by the Council of State of the Romanian Socialist Republic issued on October 10, 1981. The exact text ran as follows:

“It shall constitute illegal trading activities and, in accordance with the terms set down in the Penal Code, shall be punishable by up to six months to five years in prison, to purchase from any state commercial center or cooperative store, either with a view to hoarding or in any quantity that exceeds the requirements of a family for a period of a month, oil, sugar, wheat or corn flour, rice, coffee and all other foodstuffs the hoarding of which might affect the interests of other consumers and proper provisioning of the population.”

Since then, he said, the situation has changed drastically. Coffee can no longer be bought by private citizens and has been replaced by an ersatz substance disapproved of by physicians, which the public, guessing at the ingredients, has nicknamed “henna.” Meat, buttermilk, and bread are rationed in most districts, sugar and cooking oil throughout the country—and the ration is much more generous than the shops charged with distributing them can supply.

Since 1968, it should be explained, Romania has been divided into more than forty districts, each with a Party secretary, who is its supreme head. He is responsible for delivering a quota of food from his district to the central government—a task that must give him bad dreams. For it poses an insoluble problem: if he distributes locally less food than is called for by the plan—as he is virtually obliged to do—he will be popular with the authorities but held in contempt by the people of the district; and if he tries to help the population get more food, he will be unpopular with the authorities. Everyone has a different approach to the same dilemma—for even in the CP no district secretary is quite like another—and this psychological diversity makes for diversity in the distribution of food shortages throughout the country. In Cluj or Pitesti the situation, I was told, is frankly horrible; in Sibiu or Vilcea it is merely wretched. Thousands go from district to district on shopping excursions from which they often return empty-handed.

Romania seems unique in many ways. It is the only European country in which one can be sentenced to five years in prison for buying excessive quantities of food that is generally unavailable to the public. It is also, in my experience, the only such country in which the legal work week is forty-six hours and the urban population often spends three to four hours a day shopping for groceries. In Romania, President Ceausescu takes upon himself to compose lyrics for a new national anthem, rather than entrusting the task to a poet. And in spite of a republican form of government of which he is the constitutional head, the president carries a scepter and is grooming his son as his successor.

Workers often spend entire days waiting for raw materials that their factory cannot obtain. If they leave the premises without permission or bring alcoholic beverages, or cigarettes, or lighters, or matches onto the shop floor, they are regarded as having broken the law and can receive prison sentences from three months up to two years (Decree 400 of December 29, 1981, Article 18).

The average wage, according to experts I talked to, is less than one fifth of the average Common Market wage, while the minimum wage is ignored. The state each month withholds a percentage of wages that can be returned at the end of the year only if the government’s economic goals have been met—something that rarely happens.

Virtually every business establishment has (in addition to spies) a member of the Secret Police with a permanent desk, who reports to his superiors on the proper running of the business. All typewriters must be registered and presented for inspection at the police station every year to show that the keys have not been tampered with.

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Romania’s Energy Crisis, 1984-85

From The New York Review of Books, 23 October 1986, by “a writer who frequently travels in Eastern Europe and whose name must be withheld”:

When it comes to political independence, the Romanians find out about it through rumors. They can judge the country’s energy independence from what they see. When darkness falls, the cities are plunged into shadow—paradise for burglars—and in the daytime, in some cities, buses run only between 6-8 AM and 3-5 PM. Electric energy and water services are interrupted daily, at irregular intervals and for periods that can exceed four hours. As a result, refrigerators defrost in the summer and in every season residents of Bucharest avoid using elevators so they won’t be caught between floors: elderly people laden with packages old grandmothers crying babies prepare for the return to their homes on the tenth or eleventh floors as though for a mountain climb. The strongest light bulb is forty watts, and it is illegal to use more than one lamp per room; television programming has been cut back to two hours during the working day; each official organization is allowed to use only a limited number of the cars assigned to it (of course, there are exceptions, but not in favor of emergency hospital ambulances).

The private use of cars is now banned for the winter months and during the remaining nine months the lines to buy limited amounts of gasoline can last from twenty-four to forty-eight hours. The procession that crosses the city four times a day as the president moves between the presidential palace and the one in which he works is made up of nine cars, not to mention the unknown number of automobiles not officially part of the retinue but assigned to protect it. (A doctor I talked to said that if the presidential cortege were to be cut back to four automobiles and the gasoline thereby saved turned over to ambulances, dozens of people might be spared death each week.)

Some bolder citizens, I was told, began to complain and to say that the vaunted energy independence had gone far enough. They were wrong. The proof came with the polar temperatures of the winter of 1984-1985, when heat was virtually cut off in every city. At twenty below zero people were freezing at home and in theaters, and, most of all, in hospitals. Schools were closed; women who had to go to work in the morning learned to do their cooking after midnight, when the power would occasionally be turned back on for one or two hours, on forbidden electric plates: the fine for doing so is five thousand lei, equivalent to the average salary for two months.

The regime tried to alleviate the situation. By the late 1970s it had become clear that the replacement of the easygoing Shah by the inflexible Ayatollah in Iran would require, in Romania, the replacement of the easy flow of Iranian oil by something more dependable. Here the president’s philosophy—that history cannot really be changed without also changing geography—came into play. Ceausescu had earlier ordered construction of the canal from the Danube to the Black Sea, which soaked up immense sums of money but which foreign ships still refuse to use. He ordered the demolition of a third of Bucharest in order to build a new presidential palace flanked by a triumphal boulevard cutting across the entire city (2.5 million inhabitants). Now, in the same intrepid spirit, he issued the order that Romania was to become a great coal producer. In the country’s principal coal-producing region more than thirty thousand miners went on strike.

A new decree announced that henceforth the principal coal-producing regions would be elsewhere, nearer the president’s native village, where the local coal, according to experts I talked to, had a caloric-energy content below the economically or technologically tolerable limits. Although they did not go out on strike, the new miners did not prove to be up to the tasks assigned them. Thus the first version of the plan had called for a production level of 86 million tons of coal by 1985, its second version set a goal of 64 million, whereas the reported actual production was 44 million. In the end, energy independence based on Romanian coal turned out to be not all that different from energy independence based on Iranian oil.

One might think that the Romanian energy shortage is the worst on the Continent. Nothing could be more erroneous. During the late 1970s, when they were still obtainable, official statistical data showed that at that time Romania’s electrical energy output—2,764 kilowatt hours—was nearly equal to that of Italy, greater than that of Hungary (2,196 kilowatt hours), Spain, and Yugoslavia, twice that of Portugal, etc. If, notwithstanding, such signs of extreme energy shortage were not being observed in Lisbon, but were all-too-evident in Bucharest, this is because Romania, instead of squandering its electrical energy on the needs of its people, was allocating it to industries that consume large amounts of energy.

Given its mineral resources, Romania’s iron and steel industry had never been very efficient. ln 1965, when Ceausescu came to power, it already had the remarkable steel-production rate of 180 kilos per capita, each year. Under the new leader, that figure in fifteen years took a jump that few economies have ever managed to duplicate: over 600 kilos of steel per capita in 1980—in other words, more than France, Great Britain, East Germany, or the United States.

Unfortunately, however, the rapid expansion of the Romanian steel industry occurred at a time when established Western iron and steel industries were sharply cutting their production and the international steel market was collapsing. As a result, today Romania is suffering from an imbalance between its capacity to produce steel and its ability to make use of it. A newcomer has a hard time finding out a place for itself on the market when even old-timers are overproducing. To do so successfully, there is not much choice: one either relies on technology to improve the quality of the product or one relies on economic measures to bring about a substantial reduction in price. Thus it was hardly surprising to see Romanian producers being accused of dumping steel on the market, and the American market at that. The Romanian iron and steel industry went right on producing mountains of steel that its domestic industries were unable to digest and that the international market did not seem keen to acquire.

The Far Outliers spent the grim winter of 1983-84 in Romania, and that was bad enough. We had a 4-burner gas stove that only supplied enough gas to keep one burner lit at a time. Hot water hours were limited to two in the evening and one in the morning. And our radiators were barely warm. Romania seems only to have gotten worse after we left.

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