ROMANIA: How Bleak Is My Valley
Feb 7
IPS
Petrosani, a town of about 50,000, presents a stark picture today of what the abrupt replacement of state socialism by unbridled capitalism can do.
The Romanian government recently announced that 4,000 more mining jobs would be cut in Jiu Valley between 2007 and 2020 as a wrap-up to a process of restructuring begun in the mid-1990s, in which more than three-quarters of the coalmines in the area were deemed unprofitable and closed down.
Between 2004 and 2006, roughly 30,000 people were fired. [..] "Some of the mines that were closed down would have needed just some limited investment in order to function properly," said Iacob, a former electrician at the mines.
But the radical restructuring agreements signed between the Romanian government, the International Monetary Fund and the World Bank in 1997 paid little attention to such details. After the "revolution" in 1989, all post-socialist governments, regardless of their political orientation, adopted a Western-engineered path of reforms. [..]
Workers from many industries lost their jobs as a result of the restructuring of the economy, but few today get as little sympathy as the miners from Jiu Valley.
Miners are commonly resented for their role in the suppression of pro-democracy demonstrations in the early 1990s. Sold out by their own union leaders, they were manipulated by then president Ion Iliescu, who brought them to Bucharest to put down public protests.
"Let them rot in Petrosani now," said Manuela, a student at the University of Bucharest. "When they came to Bucharest in 1990 to beat up the students, they thought they would have power forever. They deserve what they get."
What the miners from Petrosani get is poverty [..]. Formerly a prosperous town of miners, Petrosani is today a ghost town. There is no productive activity other than mining, and workers who lost their jobs could find no other.
"I was 17 when they closed the mine, I had only started working there a year before," said Lucian, a 24-year old construction worker from Petrosani. "I understood quickly I would have no chance unless I try to go somewhere abroad." Many young people left Petrosani through the 1990s.
What they left behind is little to speak of. [N]eighbours chat in the parks, without a workplace to rush to. There is little money to spend, and as a consequence, no entertainment industry either. Petrosani is a grey town, dominated by decrepit socialist architecture.
Many families live in extreme poverty. In one area called the 'colony', local people live in apartments without water, electricity or heating. And for lack of funds for repairs, sometimes without windows or walls. [..]
The labour structure made the population highly vulnerable to any alterations in the coal production system. But changes were not expected in communist Romania, which gradually became a closed economy, relying heavily on exploitation of domestic mineral resources for development.
In 1989, however, the revolution against communism came, and the neat balance of the centrally planned system collapsed. The most difficult task, to which there is still no solution, has been to relocate people from industries that were closed down to other areas of activity.
Ex-miners have sometimes refused to accept the alternatives on offer. Once from one of the wealthiest sectors of the economy, the miners have been reluctant to settle for low wages in other domains.
Many miners in Petrosani enrolled in the voluntary redundancy scheme set up by the government in 1997, which allowed them to receive a severance package of 12-20 months' wages. Some managed to use this money to set up business.
The rest began to feel cheated once this money was gone. [..] Most people in Petrosani are left today with no hope. Only the young still find reasons to be optimistic.
Lucian is committed to staying in Petrosani with his pregnant wife. But he told IPS he can lead a decent life only because he has been working abroad in Spain and Italy, and has learnt how to build houses.
"The houses are not for people from Petrosani," he laughed. "They are for businessmen from Bucharest who want to spend their holidays in comfortable villas in the beautiful mountains around our Jiu Valley."