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moldova

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MOLDOVA


 

 

Key Economic Data 
 
  2002 2001 2000 Ranking(2002)
GDP
Millions of US $ 1,621 1,500 1,300 144
         
GNI per capita
 US $ 460 400 400 162
Ranking is given out of 208 nations - (data from the World Bank)

Books on Moldova

REPUBLICAN REFERENCE

Area (sq.km) 
33,843 

Population 
4,439,502

Principal 
ethnic groups 
Moldovans 64.5%
Ukrainians 13.8%
Russians 13.0%

Capital 
Kishinev 
(Chisinau)

Currency
Leu (plural: Lei)

President 
Vladimir Voronin

  

Update No: 285 - (01/10/04)

Moldova is the poorest country in Europe on official statistics. There is no reason to suppose these are incorrect. 
It is of course true that beggars have motives for flaunting their poverty, but the Moldovans have been generally too proud to hold out the begging bowl.
Their GDP per capita in 2003 was a meagre $1,908. Even in Moldova, where prices of course are not on a West European scale, this does not go far. The economy collapsed in the aftermath of independence, contracting indeed by two-thirds. This is something, the consequences of which Westerners find difficult to conceive. Awful things begin to happen under these circumstances.
People are selling their body organs for survival, a kidney or lung or whatever. Young girls are sold into prostitution by their own parents. The very fabric of public morality is breaking down.

The communists are the victors
In such an appalling situation it is hardly surprising that the communists are back. The West gave some very bad advice to Moldova and several other countries in the 1990s. Nostrums that may have been appropriate in say the UK, monetarism and wholesale denationalisation, were not such a brilliant idea in the east of Europe. The smartest academics and intellectual tyros in the West had long been concentrating their brains on the transition from capitalism to socialism, whereas the real issue was the reverse, how to manage the extraordinarily difficult transition from socialism to capitalism. This has yet to find its Karl Marx.
The poor Moldovans, poor in every sense, are paying the price.

The economy recovers
Despite it all, or perhaps because of it all, the economy is recovering. GDP grew by 6.3% in 2003 and is billed to grow by 5.5% in 2004. But this is peanuts compared to the size of the problem. The Moldovans need a miracle. Unfortunately they are unlikely to get it.
Inward FDI, the one possible saviour, is derisory. There is a turn-around going on in Romania next door, a far bigger economy. That could turn out to be the saving factor.

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FINANCIAL NEWS

Moldovan cabinet trying to avoid default 

The Cabinet is doing its level best to have the country's foreign debt restructured and a supplement to the memorandum with the IMF signed so as to have access to some credits, Moldovan Prime Minister, Vasile Tarlev, said in response to questions about a possible default next year, Interfax News Agency reported. 
"The situation is not easy, but manageable. The threat of default has been looming for seven or eight years becoming especially acute at critical times when changes are pending," he said. 
Tarlev was reluctant to comment on rumours of his dismissal. 
Several newspapers have published reports of his imminent resignation, quoting Internet sites as their source. The essence of the reports is that Tarlev who, unexpectedly for quite a few people, became the prime minister of a Party of Communists Cabinet in the spring is now compromising both President Vladimir Voronin and the authorities. 
"The Cabinet is consistently pushing the worst possible scenario of the state interfering with the economy on behalf of local and foreign oligarchs, the ruin of small and medium business and elimination of the emerging middle class. The parliamentary voting machine with a silent president has given Tarlev a free hand, making it possible for him to ignore both the facts of the economy and society. In foreign policy the Cabinet has managed to have relations deteriorate both with Romania and Russia," the Moldavskiye Vedomosti newspaper writes. 
An article headlined "Who Are You, Mr. Tarlev?" classifies him with a new breed of politicos for whom the state has a priority over people and who "have no decent education or knowledge or cultivation, but are power- hungry and greedy." 
Asked by Interfax to comment on these publications, Tarlev said that they had been financed by vested interests who want to destabilize the situation. 
"I am not offended by these statements. I'm continuing to work and do my duty. I am aware of the fact that our stay on earth and especially in an official position is temporary. What is important is that the Cabinet is doing its job," he said.

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