Mid-Late 19th Century

In 1861, when Wallachia and Moldavia joined together to form Romania, Bucharest became the nation's capital. In 1881, Bucharest became the political center of the newly-proclaimed Kingdom of Romania. This new status caused the population of the city to increase dramatically, which in turn stimulated development. Bucharest had gas lighting, a telephone system, several factories, administrative buildings, and large private lodgings. A limited use of electricity was introduced to the city in 1882. The first train station in Romania opened in Bucharest in 1869 and helped facilitate the growth of the industries and lead the city to evolve and become more urban. Hundreds of new enterprises were built in Bucharest by the early 20th century.

Communist Era (1947-1989)

Communists came to power in Romania in 1947. After the death of Gheorghe Gheorghiu-Dej in 1965, Nicolae Ceauşescu became the leader of Romania's Communist Party. In 1967 he became the President of the State Council as well. He was popular for his nationalism and opposition of the control of Romania by the Soviet Union, and he ended Romania's active participation in the Warsaw Pact in the 1960s. He had secret police who maintained tight control over free speech and the media; no internal opposition of the government was allowed. Ceauşescu banned contraception and abortion in an attempt to boost the population, but this led to dramatically increased maternal mortality rates as women found unsafe ways to stop pregnancies. In 1982 Ceauşescu attempted to reduce the debt Romania had accumulated since the rise of Communism by exporting much of the country's agricultural and industrial production. This led to extreme shortages of food and other necessities (e.g. fuel, energy, and medicines) and lowered the standards of living. Later, Ceauşescu tried to force rural residents to move into "agrotechnical centers," and he destroyed and rebuilt many historic buildings. The Communist regime collapsed in 1989. Ceauşescu and his wife attempted to flee Bucharest, but they were captured, tried, convicted on charges of mass murder and other crimes, and subsequently shot and killed by a firing squad.

Above: Socialist Republic of Romania flag
Right: Protesters celebrate after taking control of a military vehicle in Bucharest during the Romanian Revolution

Post-Communism Era (1989-present)

In 1990, presidential and parliamentary elections were held. Ion Iliescu became the first elected President of Romania. In 1991, a new constitution was drafted and adopted. After the fall of Communism, Romania had a difficult time transitioning to a market-based economy. Romania's economy was on the point of collapse at the end of the 1980s due to the many years of Communist rule. Social conditions made it hard to privatize large, inefficient factories in the early 1990s. During this time there was negative economic growth which led to an increase in poverty (from 20% in 1996 to 41% in 1999). Starting in 2000, Romania's economy began to improve due to fiscal and monetary policies meant to stabilize the economy. Institutional reforms led to a decrease in poverty (down to 9.8% in 2007 and 5.7% in 2008). Romania has since transitioned to a market-based economy. More businesses have been created, and Bucharest has became a major center for services. Globalization has also helped to modernize Romania in recent years.