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Romania is a constitutional democracy with a multiparty, bicameral parliamentary system, a prime minister who is the head of government, and a president who is the head of state. Traian Basescu was elected President on December 12 in elections characterized by irregularities, but which were judged generally free and fair.
The Constitution provides for an independent judiciary; however, in practice, the judiciary remained subject to political influence. Widespread corruption remained a problem, although the Government took initial, but only partial, steps to address the problem. The National Police are primarily responsible for law enforcement, the Gendarmerie for preserving public order, and the Border Police for maintaining border security.
The military has primary responsibility for protection against external threats. An internal intelligence service assesses threats to national security but has no law enforcement powers. Civilian authorities maintained effective control of security and intelligence organizations, although some concerns were expressed regarding the possible misuse of intelligence agencies for political purposes.
Some members of security forces committed serious human rights abuses. Romania is a developing country in transition from a centrally planned to a market economy with a population of approximately Economic activity was primarily in the manufacturing, agriculture, services, and energy sectors.
For the year, the economy grew approximately 8 percent, and the inflation rate was 9. Average monthly gross salaries rose by The Government generally respected the human rights of its citizens; however, there were problems in some areas.