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Examining Poverty in Moldova

Working to Alleviate Poverty in MoldovaMoldova gained its independence in 1991. Since then, it has struggled to stand independently. Moldova has a difficult history of being stuck between Russia and Western Europe. Today, Moldova continues to be pulled between the two powerhouses for its loyalty and produce from its fertile soil. This rivalry has split the country in half with part of Moldova loyal to Russia and part of it looking toward a future with Europe. In the past, this rivalry has continued poverty in Moldova, but now it is using both sides to its advantage and growing its economy.

The Situation in Moldova

Because of Moldova’s previous alliance with Russia, many of Moldova’s citizens believe that they should trade exclusively with Russia. The rest of the population believes that the country should look toward the future and trade with European countries. Doina Grecu, a woman who has spent the majority of her life in Moldova, told The Borgen Project in an interview that these people have seen the prosperity of Europe and how their trade policies have benefited them, and so they believe that they should “jump on the bandwagon.” Not to mention, Russia has threatened Moldova not to trade with Europe. During her interview, Grecu recalled seeing a video of Russian smashing Moldovan apples because Moldova signed a trade deal with the EU.

Families used to be separated in order to find work, and technology was not advanced enough for them to stay connected across borders. Grecu recounts that two of her uncles moved to France and Italy respectively; her own father had to leave the country in order to find work. People had to move in order to support their families that stayed in Moldova. Grecu explained that back when technology was not as advanced as it is now and electricity was not very affordable or reliable, people would go for long periods of time without being able to contact their family members who were abroad. This caused large amounts of immigration in Moldova.

As an agricultural economy, Moldova has high prospects in the world market as more and more people are now seeing the value of organic produce. Farming is Moldova’s highest paying trade. Despite this, Moldova’s urban areas still have less poverty than the rural areas by five times.

Child Poverty in Moldova

Child poverty in developing countries is often depicted as an entirely separate issue. And that is because it is. As previously mentioned, adults can leave countries like Moldova and find work elsewhere, while children do not have that luxury. The children of Moldova are no different.

Grecu taught children English through the Access Microscholarship Program. She observed that some children were part of orphanages even though their parents were still alive. This was because their families were so poor and the grandparents were too old to take care of the children. Sometimes the children would stay at the orphanage on weekdays, and then they were able to go home on the weekends.

The Access Microscholarship Program has not only been implemented in Moldova but in 84 other countries as well. This two-year program has been operating for 17 years. It provides development in the English language for young teens. This program is sponsored by American Councils for International Education and the U.S. Embassy awards certificates to those who finish the program successfully.

Alleviating Poverty in Moldova

In more recent years, things have gotten better for the country of Moldova. Technology has allowed people to stay in touch and Moldova has better trade relations with the EU. As Grecu put it—it is surprising when someone knows where Moldova is in the world because so few people are taught or learn about it. We asked a class of students studying Russian (spoken in Moldova), “Do you believe that Moldova’s poverty situation has improved over the past 10 years?” Half of the respondents answered yes and the other half answered yes.

However, all the students concluded that more aid needs to be given to improve Moldova’s living standards. People’s perception of Moldova seems to accurately reflect Moldova’s situation. While there is still much room to improve poverty in Moldova, the country’s future looks bright.

– Moriah Thomas
Photo: Flickr

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How Poverty Affects Everyday Life in Moldova

How Poverty Affects Everyday Life in MoldovaPoverty in Moldova is a common reality for those that live there. Many have had to leave their family, friends and homes to find a job because it is nearly impossible to find one in Moldova due to high unemployment rates. Now imagine being the ones left behind: the family members and life-long friends who are left in a politically torn country. Since Moldova gained its independence in 1991 it has struggled to fight poverty within its borders, affecting everyday life in Moldova. Moldova’s main causes of poverty are immigration due to high unemployment and governmental strife. These factors especially affect the children of Moldova.

Immigration and High Unemployment

Many of Moldova’s citizens are moving out of the country. There are simply not enough jobs for everyone. Doina Grecu, a woman born in Moldova who moved to the U.S. to further her education, said that her father had to find work abroad for several years when she lived in Moldova. Electricity was not stable and was expensive then, so people would only be able to talk to their loved ones every now and then and waited to hear that they were alright. Grecu also recounted that some people traveled from Moldova all the way across Europe to France. Poverty in Moldova has caused many people to leave their homes.

Governmental Strife

Even though Moldova has strengthened its relationship with the EU, it still struggles with poverty because of its conflicting interests in trade. Half of the country believes that they should exclusively trade with Russian because of their history together, and the other half have seen that Europe has prospered in trade and believe that Moldova should trade with them.

To further complicate things, Russia has been known to retaliate if Moldova trades with other countries. Doina Grecu stated that there were videos of Russians destroying apples from Moldova for this very reason. Moldova has uniquely rich soil that makes it an agricultural economy, so this kind of retribution is extremely harmful to these farmers. And while farming is Moldova’s main source of income, the rural areas have an almost five times higher poverty rate than Moldova’s urban areas.

Moldova’s Impoverished Children

Child poverty is significantly high. UNICEF states, “Children in Moldova remain disproportionately poor.” Some children were sent to orphanages, not because they had no parents, but because their parents were unable to care for them, as recounted by Grecu. Other children had to live with their grandparents, who may be unable to properly care for them, while one or both of their parents went abroad to find a job to send money home.

Poverty in Moldova has improved over the years. The non-governmental organization EcoVillage Farms has come up with a way to help Moldova capitalizes on what makes it special. As mentioned before, Moldova’s fertile soil is definitely an asset to Moldova. As such, the country is making the transition to the “quality over quantity” mindset when it comes to what they eat, states Grecu. Since Moldova is mainly an agricultural country, investing in farmers and small businesses will help boost Moldova’s economy and improve everyday life in Moldova. EcoVillage’s goal is to give these upcoming businesses a place to start. A furnished kitchen space will be available for rent for these business owners to practice their craft. Renters can also pay to use other renters’ equipment so as to build a sense of community and learn from each other. In addition, EcoVillage will provide counseling in finance and the logistics of how to start a business.

This NGO’s dream is still in the works, but they are more than halfway to their fundraising goal. When they are finished, this opportunity for small food businesses in the country with help reduce poverty in Moldova by building its economy on its biggest asset: a quality grounds for agriculture.

—Moriah Thomas
Photo: Flickr

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Hunger in Moldova: What You Need to Know

Hunger in MoldovaMoldova is a small landlocked country in Eastern Europe which has a trend of increasing hunger since the late 1990s. Legal frameworks within the country support the right to food. Despite an average economic growth rate of 4.6% annually and continued decreases in the rate of poverty since the early 2000s, hunger in Moldova persists, with a relatively high percentage of the population suffering from food insecurity.

6 Things to Know About Hunger in Moldova

  1. The prevalence of hunger in Moldova is linked to insufficient productivity in agriculture and impacts national health, economic and security interests.
  2. There is a legal basis for ensuring the right to food within Moldova.
  3. Agriculture is a major source of economic growth in Moldova, accounting for 18% of the country’s total GDP.
  4. The prevalence of wasting and stunting in children under the age of five in Moldova were 3.0% and 6.8%, respectively, from 2013-2017.
  5. An average of 200,000 million people from 2017-2019 and 4% of the population from 2017-2018 qualified as severely food insecure in Moldova.
  6. Thousands of Moldovans cannot afford either an energy sufficient diet or a nutrient adequate diet.

Why Should We Focus on Hunger?

The legal basis for the right to food in Moldova is based on both national and international law. The Republic of Moldova’s constitution unequivocally guarantees food as a right of the Moldovan people. Further, the country is a state party to the International Covenant on Economic, Social and Cultural Rights which also calls on members to guarantee adequate food for all those living within the country.

In addition to legal obligations to support the alleviation of hunger in the country, there are also economic incentives and national health interests at stake. According to Dr. Rodica Perciun of the National Institute for Economic Research and Dr. Maria Oleiniuc of the Alecu Russo State University of Bălți, food security acts as a “mirror” into a country’s welfare and reveals a lot about the quality of life. They state that alleviating hunger in Moldova should be considered a priority national strategy; it is an integral component of national security.

Further, hunger can have long-term impacts on the population, directly affecting the health of the population. Malnutrition in children can lead to poor outcomes regarding development and health.

 While food insecurity in adults can lead to the development of chronic conditions. The impact of hunger can have serious ramifications for a nation’s economy. In one study on the impact of hunger in Ontario, Canada, it was found that the effects derived from hunger can potentially cost the government around $2.9 billion annually in healthcare spending.  In middle-lower-income countries like Moldova, addressing hunger is integral to the country’s economic development.

What Can be Done?

 There are a number of frameworks in place to address the level of hunger in the country including those occurring at the national and international levels. The Government of Moldova is addressing hunger alleviation through a focus on entrepreneurial activity. The aim is that by continuing to improve the economy and the agricultural sector, hunger will be alleviated.

Dr. Rodica Perciun and Dr. Maria Oleiniuc proposed a Food Security Strategy for Moldova designed to provide adequate access to resources, thereby fostering healthy lifestyles, favorable socio-economic conditions and the development of a sustainable agri-food complex. Many of the strategies embedded in their proposed action plan to focus on the agricultural sector; notably, the diversification of food production, the creation of food resource resilience to natural disasters and climate-change-induced shocks. The development and promotion of food security policies are also important to this strategy.

The International Fund for Agricultural Development (IFAD) also has strategic objectives for hunger alleviation in the country, which focuses on improving the capacity of the agricultural sector, especially as it pertains to the links between the development of producers, markets and suppliers. The U.S. contributions to the IFAD account for 8.7% of the organization’s total resources from 2016 to 2018. The U.S. Department of Treasury’s proposed budget for 2021 allocates $30 million in support of the IFAD. However, the president’s proposed budget allocates zero dollars to the IFAD. The Treasury Department highlights that international assistance is integral to the U.S. economy and national security. Continued advocacy in support of international assistance is integral to the realization of these goals.

– Leah Bordlee
Photo: Flickr

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A Look at Credit Access in Moldova

Credit Access in MoldovaThe Republic of Moldova, a small, post-Soviet landlocked country bordering Ukraine to the north and Romania to the south, currently grapples with issues of economic freedom. According to the Index of Economic Freedom, Moldova ranks as the 97th freest economy in the world with Russia at 98th and Burkina Faso at 96th. With 180 countries ranked, the Heritage Foundation categorizes Moldova as a mostly unfree economy. Credit access in Moldova suffers along with its corrupt economic and political culture, affecting the most at-risk individuals in the population.

A Shift Away From the Agricultural Sector

Farming and agriculture once made up the bulk of Moldova’s domestic economy with agriculture accounting for 42 percent of the Moldovan GPD in 2000, according to a multi-national case study including USAID. The CIA World Factbook cites that in 2017, Moldovan agriculture made up only 17.7 percent of the GDP while Services took up 62 percent. In just 19 years, the Moldovan economy has experienced a rapid change. Moldova is transferring from an agrarian economy into a service-based economy, but during this transition, farmers are being left behind and their credit access in Moldova is dismal.

Farmers face the unique challenge of navigating a banking system that is new for their country. Before the year 2000, the Moldovan state owned all agrarian land. A USAID report explains how 800,000 private farmers became landowners and suddenly needed additional financial resources, yet struggled to acquire them since the amounts requested were only a few hundred dollars each–unattractive investments for local banks. The banks refused to work with the burgeoning independent farmer sector, making credit access impossible for many who needed small loans to fund and improve their businesses.

No Access to Investment

Along with the difficulties of learning a new market system, Moldovan farmers also encounter immense corruption in both government and business. The World Bank reports in its Country Partnership Framework (CPF) that “a massive bank fraud in 2013-14 enabled by political interference…led to depreciation of the currency, inflation, financial destabilization and loss of investor confidence.” Those who have no credit access in Moldova also have lower chances of receiving investment from outside the country because the risk of investing in a corrupt country carries too much risk for international investors.

The World Bank CPF explains that “limited access, inefficiency and poor quality have contributed to social exclusion, persistent poverty and vulnerability to shocks, especially in rural areas.” Rural farmers cannot rely on either the state or the banks to offer much-needed investment, and therefore are left without a critical resource essential to operating a thriving business.

The World Bank’s Moldovan Engagement

The World Bank currently sees transparency, accountability and corruption as the most pressing issues to the Moldovan economy. In an effort to stabilize the region and bring economic prosperity, the World Bank has ten active projects in Moldova. The organization cites three objectives: “strengthening the rule of law and accountability, improving access and quality of public services and enhancing the quality and relevance of education and training for job-relevant skills”. The objectives of The World Bank CPF, while broad, would allow for Moldovan farmers to either gain the credit access needed to operate their farms or expand into other sectors of the economy.

Three projects from The World Bank in particular help to solve the issue of credit access in Moldova. To help rural community members that wish to expand their horizons past farming, the World Bank has instituted the Moldova Education Reform Project, which gives out result-based specific loans to certain sectors of Moldovan education to improve the efficiency of the education sector and improve “the ministry of education’s capacity to monitor the reform”.

To help squash corruption and inefficiency, the World Bank also created the Tax Administration Modernization Project which reviews the Moldovan tax code to ensure an equal and comprehensive tax policy that supports the development of small businesses.

In an effort to help all Moldovans, the World Bank’s Moldova Economic Development Policy Operation Project (DPO) helps “to support the government of Moldova in reducing fiscal risks and leveling of the playing field for private sector development [by] strengthening oversight [and supporting] private sector development in access to business opportunities and resources”.

Lessons Learned

While credit access in Moldova is a complex issue, institutions like the World Bank that specialize in economic reform and recovery are getting involved in the country. Supporting institutions such as the World Bank helps the World’s poor help themselves by improving local economies and the governmental and business practices around them.

– Spencer Julian
Photo: Flickr

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Poverty in Moldova: Progress for Europe’s Poorest Country

Poverty in Moldova

If ever there were a time capsule left in the world, it would be Moldova. Pictures of Moldovans in traditional clothes, locals driving horse-drawn carriages and a country dedicated to agriculture and the production of wine are among the first photos that come up in an image search. Though online photographs of Moldova are charming, poverty in Moldova has been a definitive characteristic of the nation since its independence from the Soviet Union in 1991. What was once a wealthy state became the poorest country in Europe after Soviet liberation.

The Statistics
According to The World Bank, Moldova has experienced economic growth and a significant poverty reduction since the start of the millennium.

Poverty in Moldova has dropped from 30 percent in 2006 to 9.6 percent in 2015. The percentage of those living on less than $1.90 a day has dropped from 39.1 percent in 1999 to zero. At its peak, the poverty rate for those living on $5 a day was at 90.4 percent in the year 2000. It has since dropped to 16.3 percent.

Remittance and pensions are responsible for lifting 51.6 percent of families out of poverty, and pensions are sustaining the aging population.

These two factors are acknowledged as the main drivers of economic growth. In fact, the Republic of Moldova is one of the few European countries that recognizes remittances as a main influencer of the economy, accounting for 26 percent of gross domestic product in 2014.

Challenges Halting Further Progress
Unfortunately, exporting labor leads to the issue of weak labor markets. Labor and demand are some of the challenges that plague Moldova and inhibit its economic progress, keeping poverty a constant.

Dependence on remittance weakens the industrial market and keeps the Moldovan economy in a cycle that increases the trade deficit and proves remittance to be untenable.

Despite an increase in those attaining higher education, younger generations are having a difficult time finding specialized occupations that are not farm-based. Post-secondary education is not a guarantee of a better job, as the business industry is not creating long-lasting positions and many firms do not typically subsist themselves.

Moving Forward
Improving the industrial state of affairs in the nation will continue to decrease poverty in Moldova.

Alex Kremer, the Country Manager for Moldova, told the World Bank that “urbanization, connectivity and off-farm jobs are the best escape routes from poverty”.

The United Nations Development Programme has innovative business development in place for local sustainable economic growth. This project is designed to facilitative innovative business development for new and existing businesses to generate internal economic development and growth in the job market.

So far, the program has already granted 83 private sector companies innovation awards and produced a campaign focused on the employability of Moldovan youth.

The initiative is scheduled to end in 2017, but with movements like this, the future of poverty in Moldova will surely improve.

– Sloan Bousselaire

Photo: Flickr

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Education in Moldova Shows Encouraging Improvement

Education in MoldovaEducation in Moldova includes five tiers. Students enter school at the age of six and graduate at 17, and the school year runs from September to July, similar to American school systems. Introduction to the educational system begins with primary school until age 10. Secondary education is split into lower and upper secondary cycles. Lower secondary, grades five to nine, is called gymnasium. Gymnasium graduates must pass an entrance exam to qualify for Lyceum before admittance.

Upper secondary—or lyceum—includes grades 10 through 12. Graduating from lyceum qualifies students to receive their “Scoala Medie de Cultră general,” or general certificate of completion. Students may also be awarded a Diploma de Bacalaureat if they opt to take and pass the national baccalaureate exam.

Higher education is offered by both private and public universities, academies and institutes. Getting a degree from any of these can take four to five years depending on the chosen upper secondary education. Undergraduate, Masters and Doctoral studies are also available.

The Moldovan Constitution guarantees that state public education be free and all citizens have the right to access to education. Higher education in Moldova is more or less free. Tuition fees for students living off-campus is an average of 5000 Moldovan Lei, or $280.

The Organisation for Economic Co-operation and Development’s Programme for International Student Assessment (PISA) occurs every three years in order to test the effectiveness of education in Moldova, with a two-hour-long exam on math, science and reading for 15-year old students. The program is a global effort that engages over half a million students from 72 countries in order to evaluate education systems worldwide.

PISA encourages the development of facilitative learning environments and improved educational systems for low and middle-income countries and aims for inclusive learning for all students. PISA is designed to assess students’ ability to apply what they have learned in school to real-life situations. The organization’s main goal is to measure a country’s effectiveness in preparing students for success in higher education and a professional career.

In 2009, Moldova scored below average in all areas of study according to PISA test results. However, in 2015, Moldovan students had a 15-point increase in the sciences, a 28-point increase in reading and a 23-point increase in math. Equity rankings between boys and girls and social backgrounds are about equal.

In 2013, the Moldovan government devised and instituted pivotal changes that may be responsible for improved scores: increased funding and academic accountability. Increased financing for public educational institutions has undoubtedly improved conditions.

The implementation of the Education Management Information system (EMIS) which includes information about a school’s ranking and performance marks, has motivated schools to improve their quality of education. This also allows parents to make informed decisions when choosing a school for their child.

The students’ PISA scores offer a hopeful insight into education in Moldova. Although it may not be the best, it is improving.

– Sloan Bousselaire

Photo: Flickr

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The Most Threatening Diseases in Moldova

Most Threatening Diseases in Moldova
The former Soviet republic of Moldova is the poorest country in Europe. The average Moldovan lives to be almost 70 years of age. This life expectancy rate is an average of three years longer than considerably wealthier countries in the Commonwealth Independent States (CIS). Despite this longevity, Moldovans have the second-highest rate of mortality in all of Europe, losing 980.094 out of 100,000 citizens annually. The most threatening diseases in Moldova that contribute to the high mortality rate include cardiovascular disease, cancer and cirrhosis.

Noncommunicable Diseases
The most threatening diseases in Moldova are noncommunicable. According to the World Health Organization (WHO), cancer, circulatory and digestive system diseases, injuries and poisoning accounted for 73 percent of all deaths in 2012.

WHO declared tobacco and alcohol consumption to be the main contributors to the most threatening diseases in Moldova. Though cirrhosis and other chronic liver diseases are not in the top three leading causes of death in the nation, these diseases still claim almost 210 men and women per 100,000 Moldovans a year and remain substantial overall causes of death.

Infectious Diseases
The incidence of tuberculosis has increased by 83 percent since 2013. Diarrhea, lower respiratory and other common infectious diseases also account for major infectious diseases.

Syphilis and gonorrhea collectively affect an average of about 90 people per 100,000 Moldovans. In 2009, the country faced a syphilis epidemic, during which 139 citizens per 100,000 were infected. Though the reported cases of Moldovans infected with syphilis have decreased, it is still more than double the average of the CIS.

The rate of HIV is double the average frequency in the CIS, affecting nearly 20 of 100,000 Moldovans. AIDS affects 6.6 of 100,000 individuals and is above the CIS average.

Government Action for Disease Prevention
In February 2007, the Law on the Prevention and Control of HIV/AIDS outlines a legal system that aims to educate Moldovan citizens on HIV/AIDS prevention. It works to ensure basic human rights and assuage discrimination for those affected. The degree is also designed to promote medical, social and psychological resources for those living with the disease.

The National Coordination Council is devoted to the enhancement of epidemiological studies and strategies to better control diseases like tuberculosis. The council aims to enhance government policies concerning the control of HIV/AIDS, sexually transmitted infections and tuberculosis through efficient dialogue between the government and nongovernmental organizations.

Through these national programs, the most threatening diseases in Moldova will become less of an issue as prevention and care become more widespread.

– Sloan Bousselaire

Photo: Flickr

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How to Help People in Moldova

How to Help People in Moldova

Finding out how to help people in Moldova does not necessarily require a singular approach. But whatever the method, it must be efficient, as a press release from The World Bank highlighted it as “one of the poorest countries in Europe.” Over 5 percent of the country’s people endure extreme impoverishment, and its administration “pledges to take out of poverty over 150,000 men and women” by the year 2020.

The United States AID explorer page marks the country as lower-middle income. For 2015, U.S. disbursements to the nation reached over $136 million, with its top sector focusing on agriculture. Furthermore, 11 percent of these U.S. funds took the form of military aid, while the rest fell under the economic umbrella.

The United Nations Development Programme (UNDP) released an analysis with potential growth changes needed to help Moldovans have a better quality of life. It broke down the needs into categories with the percentage of growth for each:

  • More decent jobs (89 percent)
  • Higher and fair pensions and social benefits (64 percent)
  • A reliable justice system (36 percent)
  • Access to high quality health services (36 percent)
  • Promotion of a healthy lifestyle (24 percent)
  • Investment in infrastructure (22 percent)
  • Transparent governance (20-21 percent)

UNDP mentioned that with U.N. support, the National Bureau of Statistics would consult with those “from vulnerable groups” in the spring of this year to allow better evaluations of “the complexity of poverty phenomenon and its dimensions, given that economic indicators…are not always in line with those experiences and perceptions of people…”.

The World Bank named some of the highlights from the Moldova Poverty Assessment 2016:

Pensions
Pros: Increased income
Cons: There are better methods that benefit disadvantaged groups

Labor markets
Pros: “Contributed to the progress”
Cons: This progress occurred “mostly through productivity increases rather than job creation”

Because a significant part of confronting Moldova’s poverty revolves around the workforce, it is paramount to support legislation that addresses this. This may seem like a daunting task for ordinary people outside of the country to fulfill. But for those questioning how to help people in Moldova, supporting important legislation like the Economic Growth and Development Act—which strives for “market-based economic growth in developing countries”—can be one of the most effective methods in making headway.

– Maleeha Syed

Photo: Flickr

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Causes of Poverty in Moldova

Causes of Poverty in Moldova

Moldova is the poorest country in Europe. Its gross domestic product per capita stands at only $5,200. Around 20 percent of Moldova’s 3.5 million people are poor. There are several causes of poverty in Moldova. Here are a few:

Limited agricultural investment
Poverty is more common among farming families. The country’s history can partly explain why this is.

When Moldova gained independence from the Soviet Union in 1991, the government divided a lot of agricultural land into plots too small to be commercially viable. The small size of the plots–most under 2.5 hectares–meant farmers had to depend on manual labor instead of large, advanced machinery and technology. This led to inefficiencies and poor yields compared to the land’s potential.

Rural Moldovans continue to lack access to new technology, agricultural support services and financial services, which shackles them to a life of subsistence farming. With extension services, they could better contribute to agriculture’s share of Moldova’s GDP, which is around 14 percent.

Trade restrictions
A lack of agricultural investment is not the only cause of poverty in Moldova. Sometimes, families, businesses and entrepreneurs have goods, but they do not have reliable buyers.

Countries that Moldova would usually trade with have imposed strict sanctions or all-out bans on products from the small nation. Russia has repeatedly rejected Moldovan goods, such as wine, fruit and vegetables, by stating they do not meet its high quality standards.

This closed market took a toll on the Moldovan economy, which in turn trickles down to negatively affect citizens. Before the embargo in 2014, 90 percent of Moldova’s apples went to Russia. Now they are sent to other countries that buy them at lower prices.

Government corruption 
Corrupt oligarchs and politicians rob citizens of money. In 2015, $1 billion — or about one-eighth of the country’s GDP — was stolen from the country’s three largest banks. Around 40 people, including a former prime minister, either helped or benefited from the massive theft.

The capital city’s mayor, the transportation minister, the agriculture minister, the deputy economic minister, the environmental minister and other public officials face corruption or embezzlement accusations. The many officials facing these charges do not appear to have the general public’s best interest in mind.

Corruption in Moldova makes it difficult for people to succeed in business. Around 30 percent of all companies reported that public authorities requested bribes at least once per year to pass inspections, get permits, obtain utilities access or secure an operating license. The cost of electricity in the country is nearly double the price in the rest of the region, according to the GAN Business Anti-Corruption Portal. These oppressive practices stifle Moldova’s business environment and rank among the causes of poverty in Moldova.

Weak social systems
UNICEF reports that Moldova has a social protection system that comprises 15 benefits and services. But just one of these benefits is for the poor. Furthermore, money earmarked for the poor does not always end up in the right hands. A state report found that 17 percent of social assistance is used inefficiently and goes to families with high incomes.

Adding pressure to government financial resources is an aging population. Low wages, limited educational opportunities and poor job prospects push young Moldovans to leave their home country. Moreover, the birth rate is too low to replenish the population that is lost.

These factors create a disproportionate number of elderly people in the population. The high proportion of the country’s elderly is putting pressure on the country’s pension system.

The government is considering increasing the retirement age to lessen its financial burden, but there are not a lot of jobs for people to get. The labor participation rate was a mere 42 percent in 2016.

Causes of poverty in Moldova include limited agricultural investments, trade restrictions, government corruption and a weak social system. But, the government of Moldova is committed to helping alleviate poverty.

The government works with International Fund for Agricultural Development (IFAD) to create microfinance opportunities for farmers, which supports agricultural investment and can increase farmers’ returns. IFAD has also invested in agro-processing to ensure farmers prepare their goods for domestic and international markets.

Moldova is also making progress in regards to corruption. Parliament passed a new law on prosecution in 2016. It helps in the fight against corruption by strengthening prosecutor independence and doubling salaries, so prosecutors are less prone to accept bribes.

More evidence of the government’s goal to reduce poverty is its “Moldova 2020” National Development Strategy. The strategy details how reforming the pension system and developing the labor market will contribute to poverty rate reduction. 

As the above examples demonstrate, leaders have set their sights on fixing the underlying causes of poverty in Moldova.

– Kristen Reesor

Photo: Flickr

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Human Rights in the Republic of Moldova

Human Rights in The Republic of MoldovaThe Republic of Moldova recently celebrated 26 years of independence from Russian and Romanian control on August 27, 2017.

The country gained independence in 1991 and developed its own political traditions in the early ’90s resulting in today’s parliamentary democracy. A parliamentary supermajority had the power to elect the president until the transferral of that power to Moldovan citizens on March 4, 2016. This achievement offers its citizens a strong sense of control and power in working with the government.

The Moldovan Constitution, created in 1994, highlights the importance of its people. Such covenants as “civic peace, democracy, human dignity [and] fundamental human rights and freedoms” can be found in the document. Rights including the right to universality, equality, education, protection against inhumane treatment, freedom of speech, free access to justice and health protection are awarded to all Moldovans.

Human rights violations

The 2016 Country Reports on Human Rights Practices in Moldova, conceded that police brutality, human trafficking, discrimination against various marginalized groups and inhumane conditions in mental hospitals and prisons are among some significant issues taking place despite the republic’s zero-tolerance policies for such abuses.

Efforts to combat these human rights violations are in place. Such laws include the 2012 Law on Enforcement of Equality which legally ensures anti-discrimination for Moldovan inhabitants. The 2016 adoption of law No. 71 advocates for gender equality by requiring that at least 40 percent of each political party’s candidates are women, providing the option of paid paternity leave and prohibiting sexist language and images in advertising.

Though the country is consistently ranked as one of the poorest — and in some reports, the poorest — countries in Europe, human rights in the Republic of Moldova are redolent of some of the richest countries in the world and are continuing to make progress.

Organizations working to improve human rights

Several organizations are taking action against human rights violations including the Moldova Institute for Human Rights (MIHR), the Promo-LEX Association and Civic Solidarity. These associations are substantial in contesting civil injustices and providing free legal aid to those in need.

There is room for legal development for human rights in the Republic of Moldova. Improving the conditions for the disabled, mental institutions and prisons would be a good start. Nonetheless, the republic continues to make strides in evolving its human rights laws and enforcing them.

– Sloan Bousselaire

Photo: Flickr