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 matériel 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.