from foreign delegations
at the conclusion of their visits to the country or the retirement of
older, senior-ranking officers.

THE MILITARY ESTABLISHMENT AND THE NATIONAL ECONOMY

Although the labor force is smaller than the national leadership
considers adequate, almost all physically fit young men are conscripted.
Only a few, those who are essential to the support of a family or who
have other exceptional circumstances, are deferred or exempted. On the
other hand, the approximately 4 percent of men in the military age group
that serve in Romania's armed forces is about the European average and
is lower than average for the Warsaw Pact nations.

Some Romanian officials have suggested that the burden on the economy
may be greater than that indicated by a comparison of national
statistics arguing that, because labor productivity is low, the loss of
4 percent of the labor force may diminish total production. On the other
hand, some Western analysts have argued that, because most of the
conscripts are unskilled and underemployed, the military's drain on the
manpower pool entails no great loss to productive enterprise (see ch.
14).

In monetary terms the armed forces have been somewhat less of a burden.
Between 1967 and 1970 their costs averaged approximately 3.1 percent of
the gross national product (GNP), which is low when compared either with
the average for Europe or with the average of the other Warsaw Pact
members. Beginning in 1970, however, in an effort to reduce dependence
upon the Soviet Union, Romania began to stimulate local production of
military materiel and to purchase some items from other countries. This
resulted in a sharp increase in defense spending in 1970. Unless the
size of the armed forces is reduced, some continuing increase in
expenses over pre-1970 levels will be necessary if Romania chooses to
continue its policy of nondependence upon the Soviet Union.

The armed forces engage in construction projects on a scale that local
leaders say is an important contribution to the economy. They are
employed in industrial construction, roadbuilding, railroad maintenance,
and important agricultural and irrigation projects. Large numbers of
troops participated in the disaster relief efforts made necessary by the
great floods during the spring of 1970.

SECTION IV. ECONOMIC

CHAPTER 14

CHARACTER AND STRUCTURE OF THE ECONOMY

In 1972 Romania entered the second year of a five-year economic