ABOUT MOLDOVA
Moldova is a small but beautiful country with a fascinating history, culture and people. Moldova is often cited as the poorest country in Europe but great advances have been made in recent years and steady economic growth achieved. Following Independence in 1991 Moldova is slowly re-building its economy and social and political structure after decades under Soviet rule. Growing numbers of tourists pay tribute to its hilly, unspoilt valleys, wine culture and historical buildings and churches. Beyond the bright lights of the modern capital Chisinau the reality for many Moldovans is somewhat different. Many families and communities, affected by mass emigration and high unemployment, are desperate for a way out of the cycle of poverty…
Geography & Population
The Republic of Moldova (Republica Moldova) is a small landlocked country in eastern Europe, located between Romania to the west and Ukraine to the north, east and south. Historically part of the Principality of Moldavia, it was annexed by the Russian Empire in 1812 and reunited with other Romanian lands in Romania in 1918. After changing hands during World War II and being annexed by the Soviet Union, it was known as the Moldavian SSR between 1945 and 1991, and finally declared its independence on 27 August 1991. In land area, it is roughly half the size of the Republic of Ireland but with the same population (4.1m) so the population density is about twice that of Ireland. The capital city is Chisinau which has a population of around 800,000. 2/3 of the population are Moldovan with Ukrainians and Russians making up most of the balance.
Recent History & Politics
Following Moldova’s declaration of Independence in 1991, a short but brutal civil war erupted between those embracing Moldovan nationality and those still loyal to Russia. The result is one of the last remaining ‘frozen conflicts’ from the Soviet era - an area called Transdnistria in eastern Moldova bordering the Ukraine. It accounts for about one-eight of both the land mass and population of Moldova and has declared itself to be an independent state although it has no official recognition.
The President of Moldova is Vladimir Voronin who has held this post since 2001. The main party in parliament is the Party of Communists of the Republic of Moldova, which holds a majority of 55 seats. Moldova has shown a strong interest in joining the EU, a policy which is supported by 77% of the population. At present Moldova is a member of the European Neighbourhood Policy but it is unlikely Moldova would become an EU member any time before 2020 at the earliest.
Economy
Moldova ranks 111th out of 177 countries in the Human Development Index compiled by the UNDP. Moldova is the poorest country in Europe with a GDP per capita of less than €2,500 in 2006 (Ireland: €41,200). Moldova, like many other countries, suffered an economic collapse after the break-up of the Soviet Union, leading to high levels of inflation and unemployment. In 2005, about 30% of the population were below the absolute poverty line. Poverty is concentrated in the rural areas where many families depend on subsistence farming. The economy is heavily dependent on agriculture – mainly fruit, vegetables, wine and tobacco.
Even though Moldova has experienced moderate economic growth over the last three years, for the majority of the population, the economic situation has further deteriorated and poverty has increased. The average cost of living is $110 per month while the average income is only $80 per month. The workforce is highly educated but job opportunities at home are scarce. It is estimated that up to 25% of the population have left Moldova to seek work abroad. Money transfers from expatriates, estimated at more than €500m each year, are an important source of support for the domestic economy (an estimated 30% of GNP).
