Europe an Research Studies, [612054]

Europe an Research Studies,
Volume XI, Issue (1-2) 2008
Place and Significance of the Liberal Aspect of Econom ic Thought
In Mode rn Romania (1859- 1918)
By
Lecturer Ph. D, Diana Pociovălișteanu1
Abstract
Liberalism has occupied the central place in econom ics in Romania during
the transitional period, indeed from the traditional econom y (Middle Age) to
modern econom y especially in the first decades of the existence of modern
Romania. Given these conditions, it is thoroughl y justified the enhanced interest,
shown both by the experts as well as by the public opinion regarding the history,
its contents and the practical role, fulfilled by the econom ic liberalism within the
context of the progre ss of the Romanian society.
In this paper differentiated conclusions for Romania are drawn in a
duplicate matter. On the one hand, bearing in mind the econom ic processes in real
life and on the other the controversies of ideas among the aspects and the
econom ic thinking, respectively in the process of materializing and clarifying the
political and ideological profi le of different ideas of econom ic thought during a
very long pe riod of ove r half a century.
Keywords: Liberalism, transitional econom y, econom ic thought .
JEL Classification: B10, B 13, B 15.
1. Int roduc tion
The econom ic liberalism is an aspect of econom ic thought having a long
tradition and its own identity, which results both from its historical roots and the
political and moral profi le of the social forces affiliated to this aspect in different
phases of the modern world and in different geographic area of this present world,
especially the indus trial bourge oisie. The way in which it spread and developed
differs from one country to another differing from the point of view of internal
factors and international concurrence. In theory and practice, in each and every
country, liberalism had rhythms and premises which are different in grow th, with
salient features of appearances and grow th, while the general rules and the basic
characteristics remained the same. This was due to the concrete historical
premises when liberalism occurred. For instance, in France, in the wake of its
existence liberalism occurred in the agriculture area. In England and in the USA
1 Econom ics Faculty,
Constantin Brancusi University
Tg-Jiu, Gorj, Romania
E-mail: [anonimizat]

90European Research Studies, Volume XI, Issue (1-2) 2008
the same liberalism served the indus trial area. In other countries such as Romania,
liberalism adopted the external protectionist econom ic policy contrary to the basic
principle of liberalism respectively, the free competition.
2. The Liberal Aspect of E conom ic Thought
Rearranging the old regime that the traditional society prove d to be
necessary for all the Europe an countries, including Eastern Europe an countries the
rhythm and the profoundne ss of the alterations were though different from one
country to another and from period to period. The changing aspect of the internal
situation of each country in the modern epoch as well as the econom ic, social and
political tendencies manifested at world’s scale have determined the existence of
national particularities in the evolution of capitalism and in modernizing the
society in different countries. In this respect, there were significant differences
between the western and eastern Europe an countries especially during the XIXth
century, the moment for modernization taking place in more difficult conditions
because of their conditioning by the external milieu. On the one hand it is about
the Tsarist and Ottoman Empire, which had traditional, conservative points of
view and on the other hand it was about the western countries, which support ed in
some extent the forces, which fought for modernization. Why in some extent?
Because they were for modernizing the eastern Europe an countries, but only on
condition that this modernization be concurrent to the western interests (for
example creating new markets for the western goods ). The western influences and
the meeting with the western civilization had a very strong impetus and in many
regards positive upon the econom ic perspectives of Romanian society in
modernization ori entation.
The analysis of liberalism in modern Romania may be accomplished in a
doubl e perspective. First, to study this aspect of econom ic thought in conne ction
with the local Romanian probl ems which had to be solved as well as the most
efficient methods , this had to be used on t his line.
Second analyzing the liberal aspect of econom ic though, taking into
consideration the critical points of the conservatives’ view. This view was mainly
in the form s devoid of substance theory, a theory, which was rejected by the
Romanian liberalists. Also studying the Romanian liberalism one has to take as
reference point the western liberalism that reached the maturity given its historical
priority and its indisputable influence upon the course of modern history on the
whole. In specialized literature it is specified that we cannot consider liberalism
and free trade as being equal.2 Even if we speak about liberalism as about an
aspect of econom ic thought , we cannot say that the external econom ic policy
prom oted by a country has to be necessarily free trade (this being a feature of the
classic econom ic liberalism). Beginning with the market econom y, the western
bourge oisie itself practiced the protectionism as an external policy for developing
and advancing their econom y, in their econom y, in the period know n unde r the
denomination of mercantilism. A few centuries later, the developed countries did
2 See Sută-Selejan, Sultana, Econom istul, Anul XIV, NR. 1609 (2635) , Suplimentul săptămânal al
ziarului „Econom istul”, Econom ie teoretică și aplicată, Nr. 392 di n 3 m ai 2004, p. I I.

Place and Significance of the Liberal Current Econom ic Thought
in Modern Romania (1859- 1918) 91
not practice the protectionism, because they had developed a thorough econom y
based on a flourishing, these countries being interested in applying the policy of
free trade for trading the obtained produc ts on Europe an markets. Passing from
mercantilism to free trade was not accidental and it was closely linked by the
alterations, which took place within western modern society and by some layers
ascending in bourge oisie, respectively indus trial bourge oisie. It enjoyed a
powerful econom ic potential and thus it was able to influence the external
econom ic policy in a certain direction in the sense of it liberalization,
liberalization pre sented as an obj ective necessity uni versally valid.
Although practiced a long time by the developed countries in west, at the
beginning of the modern epoch, protectionism was denied for the less developed
countries in Europe . The liberals in Eastern Europe turned to good account being
absolutely necessary for creating and developing their own indus trial branch, thus
being an inconve nient for the competition of indus trial produc ts in west and
stirring large theoretical and doctrinal disputes on this topic both between the
current of econom ic thought inside our c ountry and at Europe an scale.
The representatives of a conservative group have started being very
combative, but life pushed them in the outskirts, especially in the first decades of
the XX century. The Junimist theory of form s devoid of substance generated
numerous controversies between the representatives of conservative aspect and
the liberal ones of econom ic thought .
Formally, both the liberals and the conservatives wished the changing; the
difference between them was that the liberals prom oted ways and methods of
developing which were useful for the entire nation (especially indus trialization),
whereas the conservatives foresaw ways and methods of econom ic development
more limited in the advantage of one social layer (land gentry). In conclusion the
liberal aspect of econom ic thought is a progre ssive national aspect, which
struggl ed for the rights of all social layers, for increasing the standards of living
for the entire popul ation, for integrating Romania within the econom ic
international circuit. Even if they had some good standpoi nts, especially at the
beginning of their gove rnance, the representatives of the conservative aspect,
through their policy they aimed only their own interests, without taking into
account the drawbacks and the needs of the layer at bottom, being the most
numerous.
Despite the criticizing in all the directions, the liberal aspect of econom ic
thought , emphasizing the general interests of the Romanian nation, consolidated
and its influence became more visible decade after decade.
The socialist, as well, who initially oppos ed both the liberals and the
conservatives, recognized that in the given circumstances, in Romania, the liberal
policy of indus trialization of the country was not only inevitable, but beneficial
too, the working layer included and that one of the greatest impediment in the way
of rapid development of the country’s econom y came from the conservative area
through the persistence of some feudal reminiscence, which as it is know n, the
socialist thought , to be more precise, C. Dobroge anu Gherea classified them neo-
serfdom .
Many of the liberal thinkers perceived more clearly and accurately the
major tendencies of the Romanian society on its way of econom ic, social and
political progre ss, they seized the impediments, which existed on the way of the

92European Research Studies, Volume XI, Issue (1-2) 2008
evolution of the Romanian society, were open to new ideas, at the same time
criticizing the conservative thinkers concerning the development and
modernization of our country’s econom y, finding solutions as well for the
econom ic probl ems which they dealt with. Their thought was original and
constructive and m any of t heir ideas are valid now adays.
On the basis of the analysis of the confront ation of ideas in the Romanian
econom ic thought in the modern era, with regard at the necessary changing
conve rsions necessary to econom ic, social and political development of the
country, we noticed the variety, the multitude of the standpoi nts, its richness of
contents, the undoubt ed scientific value of these doctrinaire debates, which
emphasized accurately the great challenges, the Romanian society confront ed with
between 1859-1918 and which foresaw numerous efficient practices, able to
respond and meet all these challenges, especially their preoccupation for
modernizing the technical and econom ic structures of the Romanian society for
diversifying and make the econom y more efficient, for its organization and
leadership starting with the most recent accomplishments of econom ic and social
sciences, as well as the most perform ing econom ic policies practiced by different
states in modern era.
For most of the authors, especially those liberal radicals as B.P. Hașdeu,
P.S. Aurelian, and A.D. Xenopol , who wrote about the modern epoch, modern
Romania was not conceivable without the development of capitalism. The
evolution of econom ic liberalism in modern Romania began to get going because
of stringent needs of the society and local econom y, of Romanian Principalities
and of the united Romania, but at the same time unde r the influence of the
econom y and western ideology. The ideological controversies referring to the
norm al or abnorm al character of the Romanian econom ic development in the
modern epoch offers through the multitude and variety of the expressed
standpoi nt, through the refinement of analyses, important theoretical and
methodol ogical perspectives for the second transition of Romania to capitalism,
the post-communist transition, which still unfol ds nowadays. Now, the debates
concerning our country’s transition toward capitalism regard the heritage from the
communist regime, the difference of the departures in technology, econom y and
culture, the model which has to be adopted or imitated, the methods and the ways
through which the model should be adjusted, the econom ic, psychological,
cultural and ideological particularities resulted in the application of the model in
recent or re moved past of these countries.
Thus we notice a close conne ction between the end of the XIX century and
the beginning of the XX century and what occurs nowadays regarding the
influence of the west upon capitalist development in Romania concerning the way
the ideas of econom ic liberalism are perceived. The ideas of econom ic liberalism,
regarding the development of some free market mechanisms, based on freedom in
activity of econom ic agents have not solved the probl em of econom ic
development and progre ss as a whole. For instance, a free market functioning
does not necessarily gua rantee the econom ic progre ss.
So that liberalism manifested in our c ountry in the modern epoch had some
limits without solving correspondi ngly some econom ic, social and political

Place and Significance of the Liberal Current Econom ic Thought
in Modern Romania (1859- 1918) 93
probl ems, similarly the liberalism in Romania cannot claim to have found answers
for all the probl ems at that time. With all these limitations, the Romanian
econom ic probl em is a progre ssive aspect, which enjoined a special importance
through the obtained successes especially in modern era, through its merits in
framing the Romanian modern and pos t-modern society.3
This is the proof that the history repeats, in another context though,
nowadays Romanian society is characterized through freedom, democracy,
advanced civilization, higher standard of life comparatively to the past. At the
same time, contemporary society, regarded at national, regional and global scale
has to face new challenges conne cted both by the distortions which took place in
the country’s econom y within the process of transition and its restructuring and
the conditions of emphasizing the differences which separate it from the countries
strongl y indus trialized.
3. Conclusions
Whether concerning the technical and the managerial aspects, as well as in
the foreign trade probl ems, the present liberalism goes on registering outstanding
successes, some of them entirely exceptional. The fact that the econom ic and the
social probl ems, starting with the probl ems concerning the environm ent and
ending with deepening the inequalities among people as well as the differences
among countries, the present liberalism becomes more and more embarrassed, its
operational attitudes diminish foreshadowing increasing difficulties, if not a
failure in the approa ch of social cohesion and balanced functioning of democracy.
It seems likely that taking into account these increasing difficulties on social and
political approa ch, a number of political and econom ic analysts, foreshadow the
diminish of the horizon of expectation of the great audience for the liberalism and
also sugge st the inevitability of a third way in the future evolution of the present
society.
4. Bibliography
1)Iliescu, A.P., (1998), Liberalismul între succese și iluzii, Editura ALL,
București.
2)Pociovălișteanu, Diana, (2005), Liberalismul – Principalul curent de
gândire econom ică din România modernă, Teză de doctorat, Academia de
Studii Econom ice, București.
3 See Iliescu, A.P., Liberalismul între succese și iluzii, Editura ALL, București, 1998, p. 1, 269-
271.

94European Research Studies, Volume XI, Issue (1-2) 2008
3)Sută-Selejan, Sultana, (May 3, 2004), Econom istul, Anul XIV, NR. 1609
(2635), Suplimentul săptămânal al ziarului „Econom istul”, Econom ie
teoretică și aplicată, Nr. 392.