Moldova is the second smallest of the former Soviet republics and the most densely populated. Industry accounts for only 20% of its labor force, while agriculture's share is more than one-third. It remains the poorest country in Europe. It is landlocked, bounded by Ukraine on the east and Romania to the west. Despite improvements on the economy the Republic of Moldova remains Europe's poorest nation.

Background[link]

On January 2, 1992, Moldova introduced a market economy, liberalizing prices, which resulted in huge inflation. From 1992 to 2001, the young country suffered its worst economic crisis, leaving most of the population below the poverty line.^{[citation needed]} In 1993, a national currency, the Moldovan leu, was introduced to replace the Soviet ruble. The end of the planned economy also meant that industrial enterprises would have to buy supplies and sell their goods by themselves, and most of the management was unprepared for such a change.^{[citation needed]} Moldova's industry, especially machine building, became all but defunct, and unemployment skyrocketed.^{[citation needed]} The economic fortunes of Moldova began to change in 2001; since then the country has seen a steady annual growth of between 5% and 10%. The early 2000s also saw a considerable growth of emigration of Moldovans looking for work (mostly illegally) in Italy, Portugal, Spain, Greece, Cyprus, Turkey, and other countries, in addition to work in Russia.^{[citation needed]} Remittances from Moldovans abroad account for almost 38% of Moldova's GDP, the second-highest percentage in the world.^[9] However, Ion Marandici claims the high level of remittances did not lead to development.^[10] Officially, Moldova's annual GDP is on the order of $2,022 per capita; however, a significant part of the economy goes unregistered due to corruption.^{[citation needed]}

Overview[link]

Moldova's proximity to the Black Sea gives it a mild and sunny climate. The fertile soil supports wheat, corn, barley, tobacco, sugar beet, and soybeans. Beef and dairy cattle are raised, and beekeeping is widespread. Moldova's best-known product comes from its extensive and well-developed vineyards concentrated in the central and southern regions. In addition to world-class wine^{[citation needed]}, Moldova produces liqueurs and sparkling wine. It is also known for its sunflower seeds, walnuts, apples, and other fruits. This makes the area ideal for agriculture and food processing, which accounts for about 40% of the country's GDP.

GDP by sector

Moldova has experienced economic difficulties, like many other former Soviet republics. Since its economy was highly dependent on the rest of the former Soviet Union for energy and raw materials, the breakdown in trade following the breakup of the Soviet Union had a serious effect, exacerbated at times by drought and civil conflict. The Russian ruble devaluation of 1998 had a deleterious effect on Moldova's economy, but economic growth has been steady since 2000.

Moldova has made progress in economic reform since independence. The government has liberalized most prices and has phased out subsidies on most basic consumer goods. A program begun in March 1993 has privatized 80% of all housing units and nearly 2,000 small, medium, and large enterprises. Other successes include the privatization of nearly all of Moldova's agricultural land from state to private ownership, as a result of an American assistance program, "Pamînt" ("land"), completed in 2000. A stock market opened in June 1995.

Inflation was brought down from over 105% in 1994 to 11% in 1997. Though inflation spiked again after Russia’s 1998 currency devaluation, Moldova made great strides in bringing it under control: 18.4% in 2000, 6.3% in 2001, and 4.4% in 2002. In 2003 inflation escalated again – due mainly to a drought-driven rise in agricultural prices – reaching 15.7%, although it was reigned in to 12.5% in 2004. The local currency appreciated considerably in 2003 and the first months of 2004. By May, the leu had reached its highest level since the end of 1999. After the National Bank of Moldova increased considerably its purchases on the foreign exchange market, the leu stabilized in November–December 2004 at 12.00-12.50 to the US dollar.

Moldova continues to make progress toward developing a viable free-market economy. The country recorded its fifth consecutive year of positive GDP growth in 2004, with year-end real GDP growth of 8%. This growth is impressive considering that, prior to 2000, Moldova had recorded only one year of positive GDP growth since independence. Budget execution in 2004 was also impressive, as actual consolidated budget revenues exceeded projections by 1.4% for most of the year.

Privatization results in 2004 were not significant: several smaller companies and one winery were privatized in 2004, but the government postponed indefinitely the privatization of several larger state enterprises, including two electricity distribution companies. Sporadic and ineffective enforcement of the law, economic and political uncertainty, and government harassment and interference continue to discourage inflows of foreign direct investment.

Imports continued to increase more rapidly than exports during the first nine months of 2004; Moldova’s terms of trade worsened, as higher-priced energy imports outpaced the value of Moldova’s main exports—agricultural and agro-processing goods.

During 2002, Moldova rescheduled an outstanding Eurobond, in the amount of $39.6 million, to avoid a potential default. In May 2004, Moldova redeemed promissory notes with a total value of $114.5 million to Russian Gazprom for just $50 million. Moldova informed its bilateral creditors in mid-2003 that it would no longer service its debts. The 2004 budget did provide funds for external debt service (interest) at some 6% of the government budget, the 2005 budget projects external debt service at some 4%. The International Monetary Fund (IMF) and World Bank resumed lending to Moldova in July 2002, and then suspended lending again in July 2003. Although Moldova passed a Poverty Reduction Strategy in 2004, it has yet to reach an agreement with international financial institutions.

70% of total electrical energy power consumed in Moldova is imported from Ukraine and only 30% is produced in Moldova.

Macroeconomic situation[link]

Mainly, Moldova is doing well, despite a series of consecutive shocks, which included the doubling of the price of imported natural gas and Russia's ban on imports of Moldovan wine in 2006, and a severe drought in 2007. Growth is estimated at 5 percent in 2007 and is projected to increase to 7 percent in 2008. Investment is picking up, and is beginning to replace remittances as the main source of growth—an encouraging sign that the earlier model of consumption-driven growth is changing.

Moldova increasingly faces the challenges experienced by other transition economies. Improved growth prospects have come with strong appreciation pressures from foreign exchange inflows, and a widening trade deficit. Foreign direct investment (FDI) has picked up and is estimated to have reached 12 percent of GDP in 2007, compared with 7 percent in 2006.

The main macroeconomic concern is inflation, which at 13 percent remains high for the region.

A deterioration in the merchandise trade balance due to strong import growth has been offset by improvements in net income and transfers, with a small improvement in the current account deficit to 12 percent of GDP. A resumption of wine exports to Russia in October was a major positive development, although volumes are likely to recover slowly.

Fiscal policy remained tight, ending 2007 with a modest deficit of 0.3 percent of GDP. Strong revenue performance was driven by robust VAT on imports, while expenditure was kept in line with the budget. However, the tax cuts introduced in 2008 may undermine the favorable fiscal position.

Monetary tightening in 2007 was complicated by the strong inflow of foreign exchange. The National Bank of Moldova increased reserve requirements from 10 to 15 percent, and raised policy interest rates by 2.5 percentage points. Nevertheless, the possibility of second-round effects from the drought, liquidity pressures from growing remittances and FDI, and the continued strong growth in credit and broad money suggest that upside risks to inflation are not yet fully contained.

Currently[link]

In spite of some favorable background, the Republic of Moldova remains Europe's poorest nation, resisting pursuing the types of reforms that have vastly improved the economies of some of its Eastern European neighbors. The Communist Party retained political control after winning the March 2005 parliamentary elections and re-elected its leader, Vladimir Voronin, as president in collaboration with the opposition. Although the government maintains a pro-Western stance, it has had trouble pursuing structural reforms and has made little progress on the International Monetary Fund's program to attract external financial resources. The parliament approved the government's economic growth and strategy paper in December 2004, but international financial institutions and Western investors will not be satisfied until the government begins to address fiscal adjustment, wage restraint, and payment of debt arrears. Despite the fact that the pace of privatization and industrial output has slowed, GDP growth was 7.3 percent in 2004, consumption continues to grow, and the currency continues to appreciate. The impasse in the pro-Russian Transnistria enclave, plagued by corruption and the smuggling of arms and contraband, continues despite international attempts at mediation.

Doing business[link]

According to the Global Competitiveness Report,^[11] the Most Problematic Factors for Doing Business is the access to finances, corruption and bureaucracy.

From a list of 14 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

Trade policy[link]

According to the World Bank, Moldova's weighted average tariff rate in 2001 (the most recent year for which World Bank data are available) was 2.8 percent. (The World Bank has revised the figure for 2001 downward from the 3.9 percent reported in the 2005 Index.) A 2004 World Bank report notes a "range of informal barriers to both imports and exports in Moldova, such as cumbersome and restrictive trade procedures, corruption, burdensome and inappropriate regulations and high transport costs." Based on the revised trade factor methodology, Moldova's trade policy score is unchanged.

Fiscal burden[link]

Moldova's top income tax rate is 22 percent. The top corporate tax rate has been cut to 18 percent from 20 percent, effective January 2005. In 2003, government expenditures as a share of GDP increased 1.2 percentage points to 33.6 percent, compared to the 3.0 percentage point increase in 2002.

Government intervention[link]

The World Bank reports that the government consumed 17.7 percent of GDP in 2003. In the same year, based on data from the International Monetary Fund, Moldova received 4.93 percent of its revenues from state-owned enterprises and government ownership of property.

Monetary policy[link]

Between 1995 and 2004, Moldova's weighted average annual rate of inflation was 11.99 percent.

Foreign investment[link]

The Moldovan government does not maintain many formal barriers to foreign investment, and the Moldovan embassy reports that foreign investors are free to "place their investments throughout the Republic of Moldova, in any area of business activity, as long as it does not go against the interests of the national security, anti-monopoly legislation, environment protection norms, public health and public order." However, there are significant informal barriers and indications that the formal reasons to block investment are liberally applied. According to the International Monetary Fund, "despite efforts to simplify licensing and business registration, there has been no significant improvement in the business climate. Moreover, the privatization program has stalled, while corruption remains widespread and governance weak. Government interference in the private sector…casts doubt over the authorities' commitment to market-oriented reforms." The Economist Intelligence Unit reports that the "poor investment climate, including annulments of some earlier sales, continues to deter many Western investors. Between 2001 and 2004 the government privatized less than 60 of the 480-odd enterprises scheduled for sale." Foreign investors may not purchase agricultural or forest land. The IMF reports that both residents and non-residents may hold foreign exchange accounts, but approval is required in some cases. Payments and transfers require supporting documentation and approval of the National Bank of Moldova if they exceed specified amounts. Nearly all capital transactions require approval by or registration with the National Bank of Moldova.

Banking and finance[link]

There are no official barriers to founding foreign banks or branches in Moldova. The central bank has increased the minimum capital requirement, which is expected to contribute to consolidation in the banking sector. First Initiative reports that the banking sector "consists of 16 commercial banks (2003). There are 14 locally-owned banks, while the two remaining ones are from Russia and Romania. The banking sector is highly concentrated with the five largest banks accounting for over 70% of lending in 2002. Unlike the banking sector, the insurance sector has high levels of foreign-participation. The largest insurance firm in Moldova, the former state insurance company, is owned by an Australian company." Moldova's stock exchange is very small, listing fewer than 25 companies in 2002. The Moldovan embassy reports that the government holds shares in two banks—JSCB "Banca de Economii" SA and JSCB "EuroCreditBank"—including a controlling share of Banca de Economii. The Economist Intelligence Unit reports that foreign investment accounts for approximately 50 percent of total banking capital.

• List of banks in Moldova

Wages and prices[link]

The government influences prices through the large state-owned sector. According to the Ministry of Economy, the state regulates the prices of goods and services provided by monopolies and the prices of electric or thermal energy, land, medical services, and services offered by local tax regions. Moldova has two legal monthly minimum wages: one wage for state employees and another, higher wage for the private sector.

In 2010, the average monthly salary in the private sector was 3211 lei (equivalent of 272.11 U.S. dollars), up by 8.4% against 2009.^[12]

Property rights[link]

The U.S. Department of Commerce reports that the "legal system has improved in recent years. Moldova has a documented and consistently applied commercial law." Nevertheless, much more needs to be done. According to the U.S. Department of State, "The Constitution provides for an independent judiciary; however, the executive branch has exerted undue influence on the judiciary. Many observers believe that arrears in salary payments also make it difficult for judges to remain independent from outside influences and free from corruption."

Regulation[link]

"Bureaucratic procedures are not always transparent and red tape often makes processing unnecessarily long," reports the U.S. Department of Commerce. "[C]ommercial law is a confusing patchwork of narrow statutes and an outdated civil code. With USAID experts, a draft civil code has been developed which follows the current European practice of incorporating commercial law provisions." The same source reports that anti-corruption laws "are not effectively enforced and corruption exists at an advanced level." A report provided by the World Bank indicates that labor laws are somewhat rigid.

Informal market[link]

Transparency International's 2004 score for Moldova is 2.3. Therefore, Moldova's informal market score is 4 in 2005. In 2011 the corruption score for Moldova is 2.9, better than it was in 2004, concluding TI.^[13]

Tourism[link]

It was registered a total number of 184647 tourists in 2011. Up by 14.2% against 2010. The domestic tourism registered 37764 tourists, up by 6.1% against 2010. The incoming tourism registered 10788 foreigners visiting Moldova in 2011 , their number risen up by 20.5% comparing to 2010. Most of foreign tourists were from: Romania (14,8%), Russia (13,0%), Ukraine (11,0%), Germany (9,3%), USA (5,2%), Turkey (4,4%), Italy (4,1%), Poland (3,4%), UK (3,3%), Sweden (3,1%), Bulgaria (2,7%), Japan (2,4%), France (2,3%) and the Netherlands (2,0%). ^[14] There are 15000 sights and 300 natural zones within Moldova, which represent a great potential for domestic and international tourists.

Statistics[link]

• GDP (billions)

$ 4.3 (First Quarter) - 2010;

$ 7.2 - 2009;

$ 3.1 - 2008;

$ 4.10 — 2007;

$ 3.98 — 2006;

$ 2.76 — 2005;

$ 2.6 — 2004;

$ 2.0 — 2003;

$ 1.6 — 2002;

$ 1.5 — 2001.

• GDP real growth rate

3.0% — 2007;

4.8% — 2006;

7.5% — 2005

5.7% — 2004

6.3% — 2003;

7.2% — 2002;

6.1% — 2001.

Table 1. Moldovan Real GDP Growth and CPI Inflation, 2006–09 (Percent)^[15] *Note: GDP figures for 2008 and 2009 are April 2008 forecasts, current projections differ*

Table 2. Moldova: External and Fiscal Balances, Government Debt, 2006–08 (Percent)^[15]

• Per capita GDP (2011 est.):$ 2022 ($ 760 in 2004; $ 540 in 2003: $448 in 2002; $422 in 2001).
• Natural resources: Lignite, phosphates, gypsum, arable land, and limestone.
• Agriculture: Products—vegetables, fruits, wine and spirits, grain, sugar beets, sunflower seeds, meat, milk, eggs, tobacco, walnuts.
• Industry: Types—processed foods and beverages, including wine and refined sugar; processed fruit and vegetable products, including vegetable oil; dairy and meat products; tobacco items; metal processing and production of machinery; textiles and clothing, shoes; furniture.
• Trade (2011): Exports--$ 2.221 billion (of which 49% go to European union member countries : foodstuffs, wine, textiles, clothing, footwear and machinery. Major markets--Russia, Romania, Italy, Ukraine, Germany. Imports-- $5.191 billion (of which 58% come from countries outside the former Soviet Union): gas, oil, coal, steel, machinery and equipment, chemical products, textiles, foodstuffs, automobiles, and other consumer durables. Major suppliers—Ukraine, Russia, Germany, Italy, Romania,
• Currency: Moldovan Leu (plural Lei).
• Exchange rate: Lei/US$ (2011): 11.80; (13.94 average in 2003); (13.57 average in 2002);(12.40 average in 2004)

Investment (gross fixed): 17.1% of GDP (2004 est.)

Household income or consumption by percentage share: lowest 10%: 2.2% highest 10%: 30.7% (1997)

Distribution of family income - Gini index: 33.1 (2003)

Agriculture - products: vegetables, fruits, wine, grain, sugar beets, sunflower seed, tobacco; beef, milk

Industrial production growth rate: 17% (2003 est.)

Electricity:

• production: 1,064 million kWh (2010)
• consumption: 4,102 million kWh (2010)
• exports: 0 kWh (2010)
• imports: 3,038 million kWh (2010)

Electricity - production by source:

• fossil fuel: 90.6%
• hydro: 9.4%
• other: 0% (2001)
• nuclear: 0%

Oil:

• production: 0 barrels per day (0 m³/d) (2001 est.)
• consumption: 24,000 barrels per day (3,800 m³/d) (2001 est.)
• exports: NA
• imports: NA

Natural gas:

• production: 0 m³ (2001 est.)
• consumption: 2.05 billion m³ (2001 est.)
• exports: 0 m³ (2001 est.)
• imports: 2.05 billion m³ (2001 est.)

Current account balance: $-148.4 million (2004 est.)

Exports - commodities: foodstuffs, textiles, machinery, medicals (2011)

Imports - commodities: mineral products and fuel, machinery and equipment, chemicals, textiles (2010)

Reserves of foreign exchange & gold: $2.0 billion (2011 est.) ($390 million in 2004)

See also[link]

• Economy of Europe
• Moldova

References[link]

External links[link]

• National Bureau of Statistics of Moldova
• National Bank of Moldova
• International Monetary Fund: Republic of Moldova: Statistical Appendix

Republic of Moldova Republica Moldova
Flag Coat of arms
Anthem: Limba Noastră   Our Language
Location of Moldova (green) – Transnistria (light green) on the European continent (green + dark grey)
Capital (and largest city)		Chişinău 47°0′N 28°55′E / 47°N 28.917°E / 47; 28.917
Official language(s)		Moldovan (Romanian)1
Recognised regional languages		Gagauz, Russian, and Ukrainian
Ethnic groups (2004)		69.6% Moldovans2 11.2% Ukrainians 9.4% Russians 3.8% Gagauzes 2.0% Bulgarians 1.9% Romanians2 1.5% others and unspecified[1] (including Transnistria)
Demonym		Moldovan, Moldavian
Government		Parliamentary republic
-	President	Nicolae Timofti
-	Prime Minister	Vlad Filat
-	President of the Parliament	Marian Lupu
Legislature		Parliament
Consolidation
-	Declaration of Sovereignty	23 June 1990
-	Declaration of Independence (from the Soviet Union)	27 August 19913
-	Constitution of Moldova adopted	29 July 1994
Area
-	Total	33,846 km2 (138th) 13,067 sq mi
-	Water (%)	1.4
Population
-	2012 estimate	3,559,500[1] (129th3)
-	2004 census	3,383,332[2] (excluding Transnistria) 3,938,679[3] (including Transnistria)
-	Density	121.9/km2 (93rd) 316/sq mi
GDP (PPP)		2011 estimate
-	Total	$11.998 billion[4]
-	Per capita	$3,373[4]
GDP (nominal)		2011 estimate
-	Total	$7.003 billion[4]
-	Per capita	$1,968[4]
Gini (2011)		38.0 (high)
HDI (2011)		0.649[5] (medium) (111th)
Currency		Moldovan leu (MDL)
Time zone		EET (UTC+2)
-	Summer (DST)	EEST (UTC+3)
Drives on the		right
ISO 3166 code		MD
Internet TLD		.md
Calling code		373
1	"Moldovan" used as formal official name; in fact Romanian.[6]
2	There is a controversy whether Moldovans and Romanians are the same of different ethnic groups.
3	Proclaimed. Finalized along with the dissolution of the USSR in December 1991.
4	Ranking based on 2009 UN figure.

Moldova ⁱ/mɒlˈdoʊvə/, officially the Republic of Moldova (Moldovan/Romanian: Republica Moldova pronounced [reˈpublika molˈdova]) is a landlocked state in Eastern Europe located between Romania to the west and Ukraine to the north, east, and south. It declared itself an independent state with the same boundaries as the Moldavian Soviet Socialist Republic in 1991 as part of the dissolution of the Soviet Union. On 29 July 1994, the new constitution of Moldova was adopted. A strip of Moldova's internationally recognized territory on the east bank of the river Dniester has been under the de facto control of the breakaway government of Transnistria since 1990.

The nation is a parliamentary republic with a president as head of state and a prime minister as head of government. Moldova is a member state of the United Nations, Council of Europe, WTO, OSCE, GUAM, CIS, BSEC and other international organizations. Moldova currently aspires to join the European Union,^[7] and has implemented the first three-year Action Plan within the framework of the European Neighbourhood Policy (ENP).^[8]

Etymology[link]

The name "Moldova" is derived from the Moldova River; the valley of this river was a political center when the Principality of Moldavia was founded in 1359.^[9] The origin of the name of the river is not clear. There is an account (a legend) of prince Dragoş naming the river after hunting an aurochs: after the chase, his exhausted hound Molda drowned in the river. According to Dimitrie Cantemir and Grigore Ureche, the dog's name was given to the river and extended to the Principality.^[10]

History[link]

Prehistory[link]

During the Neolithic stone age era, Moldova's territory was the center of the large Cucuteni-Trypillian culture that stretched east beyond the Dniester River in Ukraine, and west up to and beyond the Carpathian Mountains in Romania. The inhabitants of this civilization, which lasted roughly from 5500 to 2750 BC, practiced agriculture, raised livestock, hunted, and made intricately designed pottery.^[11] This society built very large settlements, some of which numbered up to 15,000 inhabitants.^{[citation needed]}

Antiquity and Middle Ages[link]

Stephen the Great, Prince of Moldavia between 1457 and 1504, and the most prominent Moldavian historical personality

Soroca Fort was built on the site of the former Genoese fortress Polihromia^{[citation needed]}

In Antiquity Moldova's territory was inhabited by Dacian tribes. Between the 1st and 7th centuries AD, the south was intermittently under the Roman, then Byzantine Empires. Due to its strategic location on a route between Asia and Europe, the territory of modern Moldova was invaded many times in late antiquity and early Middle Ages, including by Goths, Huns, Avars, Bulgarians, Magyars, Pechenegs, Cumans, Mongols and Tatars.

The Principality of Moldavia, established in 1359, was bounded by the Carpathian mountains in the west, Dniester river in the east, and Danube and Black Sea in the south. Its territory comprised the present-day territory of the Republic of Moldova, the eastern eight of the 41 counties of Romania, and the Chernivtsi oblast and Budjak region of Ukraine. Like the present-day republic and Romania's north-eastern region, it was known to the locals as Moldova. Moldavia was invaded repeatedly by Crimean Tatars and, since the 15th century, by the Turks. In 1538, the principality became a tributary to the Ottoman Empire, but it retained internal and partial external autonomy.^[12]

Modern history[link]

Russian Empire[link]

In accordance with the Treaty of Bucharest of 1812 and despite numerous protests by Moldavian nobles on behalf of their autonomous status, the Ottoman Empire (of which Moldavia was a vassal) ceded to the Russian Empire the eastern half of the territory of the Principality of Moldavia along with Khotyn and old Bessarabia (modern Budjak).

The new Russian province was called "Oblast of Moldavia and Bessarabia", and initially enjoyed a large degree of autonomy. After 1828 this autonomy was progressively restricted and in 1871 the Oblast was transformed into the Bessarabia Governorate, in a process of state-imposed assimilation, "Russification". As part of this process, the Tsarist administration in Bessarabia gradually removed the Romanian language from official and religious use.^[13] The western part of Moldavia (which is a part of present-day Romania) remained an autonomous principality, and in 1859, united with Wallachia to form the Kingdom of Romania.

The Treaty of Paris (1856) returned three counties of Bessarabia — Cahul, Bolgrad and Ismail — to Moldavia, but in the Treaty of Berlin (1878), the Kingdom of Romania agreed to return them to the Russian Empire. Over the 19th century, the Russian authorities encouraged colonization of the south of the region by Ukrainians, Lipovans, Cossacks, Bulgarians,^[14] Germans,^[15] Gagauzes, and allowed the settlement of more Jews,^[16] to replace the large Nogai Tatar population expelled in the 1770s and 1780s, during Russo-Turkish Wars;^[17] the Moldovan proportion of the population decreased from around 86% in 1816^[18] to around 52% in 1905.^[19]

Greater Romania[link]

Greater Romania map

World War I brought in a rise in political and cultural (ethnic) awareness among the inhabitants of the region, as 300,000 Bessarabians were drafted into the Russian Army formed in 1917; within bigger units several "Moldavian Soldiers' Committees" were formed. Following the Russian Revolution of 1917, a Bessarabian parliament, Sfatul Ţării, was elected in October–November 1917 and opened on December 3 [O.S. November 21] 1917. The Sfatul Ţării proclaimed the Moldavian Democratic Republic (December 15 [O.S. December 2] 1917) within a federal Russian state, and formed a government (December 21 [O.S. December 8] 1917).

Bessarabia proclaimed independence from Russia on February 6 [O.S. January 24] 1918 and requested the assistance of the French army present in Romania (general Henri Berthelot) and of the Romanian army, which had occupied the region in early January.^[20] On April 9 [O.S. March 27] 1918, the Sfatul Ţării decided with 86 votes for, 3 against and 36 abstaining, to unite with the Kingdom of Romania. The union was conditional upon fulfillment of the agrarian reform, autonomy, and respect for universal human rights.^[21] A part of the interim Parliament agreed to drop these conditions after Bukovina and Transylvania also joined the Kingdom of Romania, although historians note that they lacked the quorum to do so.^{[22][23][24][25][26]}

MPs of the Moldavian Democratic Republic in 1918

This union was recognized by the principal Allied Powers in the 1920 Treaty of Paris, which however was not ratified by all of its signatories.^[27][28] Some major powers, such as the United States and the newly communist Russia, did not recognize Romanian rule over Bessarabia, the latter considering it an occupation of Russian territory.^[29]

In May 1919, the Bessarabian Soviet Socialist Republic was proclaimed as a government in exile. After the failure of the Tatarbunary Uprising in 1924, the Moldavian Autonomous Soviet Socialist Republic (Moldavian ASSR) was formed.

In August 1939, the Molotov-Ribbentrop Pact and its secret additional protocol were signed, by which Nazi Germany recognized Bessarabia as being within the Soviet sphere of influence, which led the latter to actively revive its claim to the region.^[30] On June 28, 1940, the Soviet Union, with the acknowledgement of Nazi Germany, issued an ultimatum to Romania requesting the cession of Bessarabia and northern Bukovina, with which Romania complied the following day. Soon after, the Moldavian Soviet Socialist Republic (Moldavian SSR) was established,^[30] comprising about 70% of Bessarabia, and 50% of the now-disbanded Moldavian ASSR.

As part of the 1941 Axis invasion of the Soviet Union, Romania seized the territories of Bessarabia, northern Bukovina, and Transnistria. Romanian forces, working with the Germans, deported or exterminated about 300,000 Jews, including 147,000 from Bessarabia and Bukovina (of the latter, approximately 90,000 perished).^[31] The Soviet Army re-captured the region in February–August 1944, and re-established the Moldavian SSR. Between the end of the Jassy-Kishinev Offensive in August 1944 and the end of the war in May 1945, 256,800 inhabitants of the Moldavian SSR were drafted into the Soviet Army. 40,592 of them perished.^[32]

Soviet era[link]

Ethnic Germans resettling after the Soviet occupation of Bessarabia in 1940

During the Stalinist period (1940–1941, 1944–1953), deportations of locals to the northern Urals, to Siberia, and northern Kazakhstan occurred regularly, with the largest ones on 12–13 June 1941, and 5–6 July 1949, accounting from MSSR alone for 18,392^[33] and 35,796 deportees respectively.^[34] Other forms of Soviet persecution of the population included 32,433 political arrests, followed by Gulag or (in 8,360 cases) execution.

In 1946, as a result of a severe drought and excessive delivery quota obligations and requisitions imposed by the Soviet government, the southwestern part of the USSR suffered from a major famine.^[35] In 1946–1947, at least 216,000 deaths and about 350,000 cases of dystrophy were accounted by historians in the Moldavian SSR alone.^[34] Similar events occurred in 1930s in the Moldavian ASSR.^[34] In 1944–53, there were several anti-Soviet resistance groups in Moldova; however the NKVD and later MGB managed to eventually arrest, execute or deport their members.^[34]

In the postwar period, the Soviet government arranged migration of workforce (mostly Russians, Belarusians, and Ukrainians), into the new Soviet republic, especially into urbanized areas, partly to compensate for the demographic loss caused by the war and the emigration of 1940 and 1944.^[36] In the 1970s and 1980s, the Moldavian SSR received substantial allocations from the budget of the USSR to develop industrial and scientific facilities and housing. In 1971, the Council of Ministers of the USSR adopted a decision "About the measures for further development of the city of Kishinev" (modern Chişinău), that allotted more than one billion Soviet rubles from the USSR budget for building projects,^[37] subsequent decisions also directed substantial funding and brought qualified specialists from other parts of the USSR to develop Moldova's industry.^{[citation needed]}

The Soviet government conducted a campaign to promote a Moldovan ethnic identity distinct from that of the Romanians, based on a theory developed during the existence of the Moldavian ASSR. Official Soviet policy asserted that the language spoken by Moldovans was distinct from the Romanian language (see Moldovenism). To distinguish the two, during the Soviet period, Moldovan was written in the Cyrillic alphabet, in contrast^{[citation needed]} with Romanian, which since 1860 had been written in the Latin alphabet.

After the death of Stalin, political persecutions changed in character from mass to individual. All independent organizations were severely reprimanded, with the National Patriotic Front leaders being sentenced in 1972 to long prison terms. The Commission for the Study of the Communist Dictatorship in Moldova is assessing the activity of the communist totalitarian regime.

In the 1980s, political conditions created by the glasnost and perestroika, a Democratic Movement of Moldova was formed, which in 1989 became known as the nationalist Popular Front of Moldova (FPM).^[38][39] Along with several other Soviet republics, from 1988 onwards, Moldova started to move towards independence. On August 27, 1989, the FPM organized a mass demonstration in Chişinău that became known as the Grand National Assembly. The assembly pressured the authorities of the Moldavian SSR to adopt a language law on August 31, 1989 that proclaimed the Moldovan language written in the Latin script to be the state language of the MSSR. Its identity with the Romanian language was also established.^[38][40] The year 1989 that had seen Communist Party increasingly pummeled, was also marked by November riots.^[41][42]

Independence[link]

Deputy Gheorghe Ghimpu replaces the Soviet flag on the Parliament with the national one on April 27, 1990

The first democratic elections for the local parliament were held in February and March 1990. Mircea Snegur was elected as Speaker of the Parliament, and Mircea Druc as Prime Minister. On June 23, 1990, the Parliament adopted the Declaration of Sovereignty of the "Soviet Socialist Republic Moldova", which, among other things, stipulated the supremacy of Moldovan laws over those of the Soviet Union.^[38] After the failure of the 1991 Soviet coup d'état attempt, on August 27, 1991, Moldova declared its independence, Romania being the first state to recognize its independence.

On December 21 of the same year Moldova, along with most of the other Soviet republics, signed the constitutive act that formed the post-Soviet Commonwealth of Independent States (CIS). Moldova received official recognition on December 25. On December 26, 1991 the Soviet Union ceased to exist. Declaring itself a neutral state, it did not join the military branch of the CIS. Three months later, on March 2, 1992, the country gained formal recognition as an independent state at the United Nations. In 1994, Moldova became a member of NATO's Partnership for Peace program and also a member of the Council of Europe on June 29, 1995.^[38]

In the region east of the Dniester river, Transnistria, which includes a large proportion of predominantly russophone East Slavs of Ukrainian (28%) and Russian (26%) descent (altogether 54% as of 1989), while Moldovans (40%) have been the largest ethnic group, and where the headquarters and many units of the Soviet 14th Guards Army were stationed, an independent Pridnestrovian Moldavian Soviet Socialist Republic was proclaimed on August 16, 1990, with its capital in Tiraspol.^[38] The motives behind this move were fear of the rise of nationalism in Moldova and the country's expected reunification with Romania upon secession from the USSR. In the winter of 1991–1992 clashes occurred between Transnistrian forces, supported by elements of the 14th Army, and the Moldovan police. Between March 2 and July 26, 1992, the conflict escalated into a military engagement.

On January 2, 1992, Moldova introduced a market economy, liberalizing prices, which resulted in rapid inflation. From 1992 to 2001, the young country suffered a serious economic crisis, leaving most of the population below the poverty line. In 1993, a national currency, the Moldovan leu, was introduced to replace the temporary cupon. The economy of Moldova began to change in 2001; and until 2008 the country saw a steady annual growth of between 5% and 10%. The early 2000s also saw a considerable growth of emigration of Moldovans looking for work (mostly illegally) in Russia (especially the Moscow region), Italy, Portugal, Spain, Greece, Cyprus, Turkey, and other countries; remittances from Moldovans abroad account for almost 38% of Moldova's GDP, the second-highest percentage in the world.^[43]

In the 1994 parliamentary elections, the Democratic Agrarian Party gained a majority of the seats, setting a turning point in Moldovan politics. With the nationalist Popular Front now in a parliamentary minority, new measures aiming to moderate the ethnic tensions in the country could be adopted. Plans for a union with Romania were abandoned,^[38] and the new Constitution gave autonomy to the breakaway Transnistria and Gagauzia. On December 23, 1994, the Parliament of Moldova adopted a "Law on the Special Legal Status of Gagauzia", and in 1995 the latter was constituted.

After winning the 1996 presidential elections, on January 15, 1997, Petru Lucinschi, the former First Secretary of the Moldavian Communist Party in 1989–91, became the country's second president (1997–2001), succeeding Mircea Snegur (1991–1996). In 2000, the Constitution was amended, transforming Moldova into a parliamentary republic, with the president being chosen through indirect election rather than direct popular vote.

Winning 49.9% of the vote, the Party of Communists of the Republic of Moldova (reinstituted in 1993 after being outlawed in 1991), gained 71 of the 101 MPs, and on April 4, 2001, elected Vladimir Voronin as the country's third president (re-elected in 2005). The country became the first post-Soviet state where a non-reformed Communist Party returned to power.^[38] New governments were formed by Vasile Tarlev (April 19, 2001 – March 31, 2008), and Zinaida Greceanîi (March 31, 2008 – September 14, 2009). In 2001–2003 relations between Moldova and Russia improved, but then temporarily deteriorated in 2003–2006, in the wake of the failure of the Kozak memorandum, culminating in the 2006 wine exports crisis. The Party of Communists of the Republic of Moldova managed to stay in power for eight years. The fragmentation of the liberal (aka the democrats) helped consolidate its power. The decline of the party started in 2009 after Marian Lupu joined the Democratic Party and thus attracted many of the Moldovans supporting the Communists.^[44]

2009 Moldova civil unrest at the Parliament building

In the April 2009 parliamentary elections, the Communist Party won 49.48% of the votes, followed by the Liberal Party with 13.14% of the votes, the Liberal Democratic Party with 12.43%, and the Alliance "Moldova Noastră" with 9.77%. The controversial results of this election sparked civil unrest^[45][46]

In August 2009, four Moldovan parties – Liberal Democratic Party, Liberal Party, Democratic Party, and Our Moldova Alliance – agreed to create a governing coalition that pushed the Communist party into opposition. On August 28, 2009, this coalition chose a new parliament speaker (Mihai Ghimpu) in a vote that was boycotted by Communist legislators. Vladimir Voronin, who had been President of Moldova since 2001, eventually resigned on September 11, 2009, but the Parliament failed to elect a new president. The acting president Mihai Ghimpu instituted the Commission for constitutional reform in Moldova to adopt a new version of the Constitution of Moldova. After the constitutional referendum aimed to approve the reform failed in September 2010,^[47] the parliament was dissolved again and a new parliamentary election was scheduled for 28 November 2010.^[48] On December 30, 2010, Marian Lupu was elected as the Speaker of the Parliament.^[49] In accordance with the Constitution, he will be serving as the Acting President of Republic of Moldova.

Government and politics[link]

The Moldovan Parliament

Moldova

This article is part of the series: Politics and government of Moldova

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Moldova is a unitary parliamentary representative democratic republic. The 1994 Constitution of Moldova sets the framework for the government of the country. A parliamentary majority of at least two thirds is required to amend the Constitution of Moldova, which cannot be revised in time of war or national emergency. Amendments to the Constitution affecting the state's sovereignty, independence, or unity can only be made after a majority of voters support the proposal in a referendum. Furthermore, no revision can be made to limit the fundamental rights of people enumerated in the Constitution.^[50]

The country's central legislative body is the unicameral Moldovan Parliament (Parlament), which has 101 seats, and whose members are elected by popular vote on party lists every four years.

The head of state is the President of Moldova, who is elected by the Moldovan Parliament, requiring the support of three fifths of the deputies (at least 61 votes). The president of Moldova has been elected by the parliament since 2001, a change designed to decrease executive authority in favor of the legislature. The president appoints a prime minister who functions as the head of government, and who in turn assembles a cabinet, both subject to parliamentary approval.

The 1994 constitution also establishes an independent Constitutional Court, composed of six judges (two appointed by the President, two by Parliament, and two by the Supreme Council of Magistrature), serving six-year terms, during which they are irremovable and not subordinate to any power. The Court is invested with the power of judicial review over all acts of the parliament, over presidential decrees, and over international treaties, signed by the country.^[50]

Foreign relations[link]

Embassy of Moldova in Washington, D.C.

Moldova has fixed as a priority EU integration

After achieving independence from the Soviet Union, Moldova established relations with other European countries. A course for European Union integration and neutrality define the country's foreign policy guidelines. In 1995 the country was admitted to the Council of Europe. In addition to its participation in NATO's Partnership for Peace program, Moldova is also a member state of the United Nations, the Organization for Security and Co-operation in Europe (OSCE), the North Atlantic Cooperation Council, the World Trade Organization, the International Monetary Fund, the World Bank, the Francophonie and the European Bank for Reconstruction and Development.

In 2005, Moldova and the EU established an action plan that sought to improve the collaboration between the two neighboring structures. At the end of 2005 EUBAM, the European Union Border Assistance Mission to Moldova and Ukraine, was established at the joint request of the presidents of Moldova and Ukraine. EUBAM assists the Moldovan and Ukrainian governments in approximating their border and customs procedures to EU standards, and offers support in both countries' fight against cross-border crime.

After the War of Transnistria, Moldova sought a peaceful resolution to the conflict in the Transnistria region by working with Romania, Ukraine, and Russia, calling for international mediation, and cooperating with the OSCE and UN fact-finding and observer missions. The foreign minister of Moldova, Andrei Stratan, repeatedly stated that the Russian troops stationed in the breakaway region are there against the will of the Moldovan Government and called on them to leave "completely and unconditionally."^[51] In 2012, the death of Vadim Pisari has raised the tension with Russia and has revived a decades-old debate over security in Moldova.^[52]

In September 2010, the European Parliament approved a grant of €90 million to Moldova.^[53] The money will supplement $570 million in International Monetary Fund loans,^[54] World Bank and other bilateral support already granted to Moldova. In April 2010, Romania offered to Moldova development aid worth of €100 million while the number of scholarships for Moldovan students will double to 5,000.^[55] According to a lending agreement signed in February 2010, Poland will provide US$15 million and will support Moldova in its European integration efforts.^[56] The first joint meeting of the Governments of Romania and Moldova, held in March 2012, concluded with several bilateral agreements in various fields.^[57][58] The European orientation “has been the policy of Moldova in recent years and this is the policy that must continue,” Nicolae Timofti told lawmakers before his election.”^[59]

Military[link]

Soldiers of the Moldovan Army

The Moldovan armed forces consist of the Ground Forces and Air and Air Defense Forces. Moldova has accepted all relevant arms control obligations of the former Soviet Union. On October 30, 1992, Moldova ratified the Treaty on Conventional Armed Forces in Europe, which establishes comprehensive limits on key categories of conventional military equipment and provides for the destruction of weapons in excess of those limits. The country acceded to the provisions of the nuclear Non-Proliferation Treaty in October 1994 in Washington, D.C. It does not have nuclear, biological, or chemical weapons. Moldova joined the North Atlantic Treaty Organisation's Partnership for Peace on March 16, 1994.

Moldova is committed to a number of international and regional control of arms regulations such as the UN Firearms Protocol, Stability Pact Regional Implementation Plan, the UN Programme of Action (PoA) and the OSCE Documents on Stockpiles of Conventional Ammunition.

Human rights[link]

According to Amnesty International, "Torture and other ill-treatment in police detention remained widespread; the state failed to carry out prompt and impartial investigations and police officers sometimes evaded penalties. Lesbian, gay, bisexual and transgender (LGBT) activists were again denied the right to demonstrate."^[60] Political dissidents from Ilaşcu Group were released from arbitrary detention only after an order of the European Court of Human Rights.^[61] In 2009, when Moldova experienced its most serious civil unrest in a decade, several civilians like Valeriu Boboc were killed by police and many more injured.^[62] According to Human Rights Report of the United States Department of State, released in April 2011, "In contrast to the previous year, there were no reports of killings by security forces. During the year reports of government exercising undue influence over the media substantially decreased." But "Transnistrian authorities continued to harass independent media and opposition lawmakers; restrict freedom of association, movement, and religion; and discriminate against Romanian speakers."^[63] Moldova "has made “noteworthy progress” on religious freedom since the era of the Soviet Union, but it can still take further steps to foster diversity," said the UN Special Rapporteur on freedom of religion or belief Heiner Bielefeldt, in Chişinău, in September 2011.^[64]

Administrative divisions[link]

Territories of the medieval Principality of Moldavia are now split between Romania in blue, Moldova in green, and Ukraine in pink (Chernivtsi oblast and Budjak).

Moldova is divided into thirty-two districts (raioane, singular raion), three municipalities and two autonomous regions (Gagauzia and Transnistria).^[65] The final status of Transnistria is disputed, as the central government does not control that territory. The cities of Comrat and Tiraspol, the administrative seats of the two autonomous territories also have municipality status.

	Municipalities	Autonomous regions
	Chişinău Bălţi Bender	Gagauzia Transnistria[66]
	Districts
	Anenii Noi Basarabeasca Briceni Cahul Cantemir Călăraşi Căuşeni Cimişlia Criuleni Donduşeni Drochia Dubăsari Edineţ Făleşti Floreşti Glodeni	Hînceşti Ialoveni Leova Nisporeni Ocniţa Orhei Rezina Rîşcani Sîngerei Soroca Străşeni Şoldăneşti Ştefan Vodă Taraclia Teleneşti Ungheni

Moldova has 65 cities (towns), including the five with municipality status, and 917 communes. Some other 699 villages are too small to have a separate administration, and are administratively part of either cities (40 of them) or communes (659). This makes for a total of 1,681 localities of Moldova, all but two of which are inhabited.

Geography[link]

Dniester valley view

Old Orhei

Moldova lies between latitudes 45° and 49° N, and mostly between meridians 26° and 30° E (a small area lies east of 30°).The total land area is 33,851 km²

The largest part of the nation lies between two rivers, the Dniester and the Prut. The western border of Moldova is formed by the Prut river, which joins the Danube before flowing into the Black Sea. Moldova has access to the Danube for only about 480 m (1,575 ft), and Giurgiuleşti is the only Moldovan port on the Danube. In the east, the Dniester is the main river, flowing through the country from north to south, receiving the waters of Răut, Bâc, Ichel, Botna. Ialpug flows into one of the Danube limans, while Cogâlnic into the Black Sea chain of limans.

The country is landlocked, even though it is very close to the Black Sea. While most of the country is hilly, elevations never exceed 430 m (1,411 ft) — the highest point being the Bălăneşti Hill. Moldova's hills are part of the Moldavian Plateau, which geologically originate from the Carpathian Mountains. Its subdivisions in Moldova include Dniester Hills (Northern Moldavian Hills and Dniester Ridge), Moldavian Plain (Middle Prut Valley and Bălţi Steppe), and Central Moldavian Plateau (Ciuluc-Soloneţ Hills, Corneşti Hills (Codri Massive; "Codri" meaning "forests"), Lower Dniester Hills, Lower Prut Valley, and Tigheci Hills). In the south, the country has a small flatland, the Bugeac Plain. The territory of Moldova east of the river Dniester is split between parts of the Podolian Plateau, and parts of the Eurasian Steppe.

The country's main cities are the capital Chişinău, in the center of the country, Tiraspol (in the eastern region of Transnistria), Bălţi (in the north) and Bender (in the south-east). Comrat is the administrative center of Gagauzia.

Panorama of the museum complex Old Orhei, a system of historical monuments and natural landscapes, famous for its cave monasteries.

Climate[link]

This unreferenced section requires citations to ensure verifiability.

Moldova's proximity to the Black Sea gives it a mild and sunny climate.

Moldova's climate is moderately continental: the summers are warm and long, with temperatures averaging about 20 °C (68 °F), and the winters are relatively mild and dry, with January temperatures averaging −4 °C (25 °F). Annual rainfall, which ranges from around 600 millimeters (23.6 in) in the north to 400 millimeters (15.7 in) in the south, can vary greatly; long dry spells are not unusual. The heaviest rainfall occurs in early summer and again in October; heavy showers and thunderstorms are common. Because of the irregular terrain, heavy summer rains often cause erosion and river silting.

Weather records. The highest temperature ever recorded: +41.5 °C (106.70 °F) on July 21, 2007 (Camenca). The lowest temperature ever recorded: −35.5 °C (−31.9 °F) on January 20, 1963 (Brătuşeni, Edineţ county).^{[citation needed]}

Economy[link]

GDP by sector

A portrait of Stephen III is found on the front of each leu banknote.

Since the collapse of the Soviet Union, the relative weight of the service sector in the economy of Moldova started to grow and began to dominate the GDP (now about 75%), as a result of decrease in industry and agriculture. The main economic indicators contracted dramatically.

As of 2009^[update], Moldova has been described by the European Parliament as the poorest country in Europe in terms of GDP.^[67]

Energy[link]

Moldova imports all of its supplies of petroleum, coal, and natural gas, largely from Russia. Moldova is a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.^[68]

Economic reforms[link]

There are 1, 5, 10, 25, and 50 bani coins of the Moldovan leu.

After the breakup of the Soviet Union in 1991, energy shortages contributed to sharp production declines. As part of an ambitious economic liberalization effort, Moldova introduced a convertible currency, liberalized all prices, stopped issuing preferential credits to state enterprises, backed steady land privatization, removed export controls, and liberalized interest rates. The government entered into agreements with the World Bank and the International Monetary Fund to promote growth.

Sky Tower in Downtown Chişinău

Recent trends indicate that the Communist government intends to reverse some of these policies, and recollectivise land while placing more restrictions on private business. The economy returned to positive growth, of 2.1% in 2000 and 6.1% in 2001. Growth remained strong in 2007 (6%), in part because of the reforms and because of starting from a small base. The economy remains vulnerable to higher fuel prices, poor agricultural weather, and the skepticism of foreign investors.^{[citation needed]}

Following the regional financial crisis in 1998, Moldova has made significant progress towards achieving and retaining macroeconomic and financial stabilization. It has, furthermore, implemented many structural and institutional reforms that are indispensable for the efficient functioning of a market economy. These efforts have helped maintain macroeconomic and financial stability under difficult external circumstances, enabled the resumption of economic growth and contributed to establishing an environment conducive to the economy's further growth and development in the medium term.^{[citation needed]}

General Statistic Diagrams of Internet in Moldova, in terms of download speed country ranked 9 in World

Despite these efforts and recent resumption of economic growth, Moldova ranks low in terms of commonly used living standards and human development indicators in comparison with other transition economies. Although the economy experienced a constant economic growth after 2000: with 2.1%, 6.1%, 7.8% and 6.3% between 2000 and 2003 (with a forecast of 8% in 2004), one can observe that these latest developments hardly reach the level of 1994, with almost 40% of the GDP registered in 1990. Thus, during the last decade little has been done to reduce the country's vulnerability. After a severe economic decline, social and economic challenges, energy uprooted dependencies, Moldova continues to occupy one of the last places among European countries in income per capita.^{[citation needed]}

In 2005 (according to the Human Development Report), the registered GDP per capita was US $ 2,100 PPP, which was 4.5 times lower than the world average at the time (US $ 9,543). Moreover, GDP per capita was under the average of its statistical region (US $ 9,527 PPP). In 2005, about 20.8% of the population were under the absolute poverty line and registered an income lower than US $ 2.15 (PPP) per day. Moldova is classified as medium in human development and is at the 111th spot in the list of 177 countries. The value of the Human Development Index (0.708) is below the world average. Moldova remains the poorest country in Europe in terms of official (i.e., excluding the black and grey economy) per capita which currently stands at $1,808.729^[69]

The GDP in 2007 constituted $4.104 billion.^[70] That constituted a growth of 3% from 2006.

Wine industry[link]

Mileştii Mici contains the world's largest wine cellars

Moldova is known for its wines. For many years viticulture and winemaking in Moldova were the general occupation of the population. Evidence of this is present in historical memorials and documents, folklore, and the Moldovan spoken language.

The country has a well established wine industry. It has a vineyard area of 147,000 hectares (360,000 acres), of which 102,500 ha (253,000 acres) are used for commercial production. Most of the country's wine production is made for export. Many families have their own recipes and strands of grapes that have been passed down through the generations.

Moldova consumes the highest amount of alcohol per capita in the world.^[71]

Agriculture[link]

Moldova's rich soil and temperate continental climate (with warm summers and mild winters) have made the country one of the most productive agricultural regions since ancient times, and a major supplier of agricultural products in southeastern Europe. In agriculture, the economic reform started with the land cadastre reform.

Tourism[link]

Tourism focuses on the country's natural landscapes and its history. Wine tours are offered to tourists across the country. Vineyards/cellars include Cricova, Purcari, Ciumai, Romanesti, Cojuşna, Milestii Mici.

Transport[link]

Chișinău International Airport

The main means of transportation in Moldova are railroads 1,138 km (707 mi) and a highway system (12,730 km/7,910 mi overall, including 10,937 km/6,796 mi of paved surfaces). The sole international air gateway of Moldova is the Chişinău International Airport. The Giurgiuleşti terminal on the Danube is compatible with small seagoing vessels. Shipping on the lower Prut and Nistru rivers plays only a modest role in the country's transportation system.

Telecommunications[link]

The first million of mobile telephone users was registered in September 2005. The number of mobile telephone users in Moldova increased by 47.3 % in the first quarter of 2008 against the last year and exceeded 2.89 million.^[72]

In September 2009, Moldova was the first country in the world to launch high-definition voice services (HD voice) for mobile phones, and the first country in Europe to launch 14,4 Mbit/s mobile broadband at a national scale, with over 40% population coverage.^[73]

As of 2010^[update] there are around 1,295,000 Internet users in Moldova with overall Internet penetration of 35.9%.^[74]

Demographics[link]

Ethno-linguistic composition in 2004

Cultural and ethnic composition[link]

The last reference data is that of the 2004 Moldovan Census^[2] (areas controlled by the central government), and the 2004 Census in Transnistria (areas controlled by the breakaway authorities, including Transnistria, Bender/Tighina, and four neighboring communes):

¹There is an ongoing controversy whether Romanians and Moldovans are the same ethnic group, namely whether Moldovans' self-identification constitutes an ethnic group distinct and apart from Romanians or a subset. There were also numerous allegations that the ethnic affiliation numbers were rigged, 7 out of 10 observer groups of the Council of Europe reported a significant number of cases when census-takers recommended respondents to declare themselves Moldovans rather than Romanians. Complicating the interpretation of the results, 18.8% of respondents that identified themselves as Moldovans declared Romanian to be their native language. ^[75]

Languages[link]

A Limba noastră social ad in Chişinău, with the word "Română" sprayed onto it

The Constitution of 1994 states that the national language of the Republic of Moldova is Moldovan, and its writing is based on the Latin alphabet.^[76] The 1991 Declaration of Independence names the official language Romanian.^[77][78] The 1989 State Language Law speaks of a Moldovan-Romanian linguistic identity.

There is a political controversy over the name of the main ethnicity of the Republic of Moldova. During 2003–2009, the Communist government adopted a national political conception which states that one of the priorities of the national politics of the Republic of Moldova is the insurance of the existence of the Moldovan language.^[79][80] Scholars agree that Moldovan and Romanian are the same language, with the glottonym "Moldovan" used in certain political contexts.^[81]

Russian is provided with the status of a "language of interethnic communication" (alongside the official language), and in practice remains widely used on all levels of the society and the state. The above-mentioned national political conception also states that Russian-Moldovan bilingualism is characteristic for Moldova.^[80]

As of the 2004 census, the country has significant Russian (6%) and Ukrainian (8.4%) populations. 50% of ethnic Ukrainians, 27% of Gagauz, 35% of Bulgarians, and 54% of smaller ethnic groups speak Russian as first language. In total, there are 541,000 people (or 16% of the population) in Moldova who use Russian as first language, including 130,000 ethnic Moldovans. On the other hand, 47,000 members of ethnic minorities use Romanian as first language.

Gagauz and Ukrainian have significant regional speaker populations and are granted official status together with Russian in Gagauzia and Transnistria respectively.

From 1996 the Republic, also being Romance-speaking, is a full member of Francophonia. Therefore the French language occupies the principal place among the foreign languages. In 2009/10 it was told taught to 52% of schoolchildren as L1 and 7% as L2. It is followed by English having 48% and 6% respectively, and German, which was taught to 3% altogether.^[82]

Religion[link]

Căpriana, one of the oldest monasteries in Moldavia

For the 2004 census, Orthodox Christians, who make up 93.3% of Moldova's population, were not required to declare the particular of the two main churches they belong to. The Moldovan Orthodox Church, autonomous and subordinated to the Russian Orthodox Church, and the Orthodox Church of Bessarabia, autonomous and subordinated to the Romanian Orthodox Church, both claim to be the national church of the country. 1.9% of the population is Protestant, 0.9% belongs to other religions, 1.0% is non-religious, 0.4% is atheist, and 2.2% did not answer the religion question at the census.

Education[link]

National Library of Moldova

In Moldova, there are 16 state and 15^[83] private institutions of higher education, with a total of 126,100 students, including 104,300 in the state institutions, and 21,700 in the private ones. The number of students per 10,000 inhabitants in Moldova has been constantly growing since the collapse of the Soviet Union, reaching 217 in 2000–2001, and 351 in 2005–2006.

The National Library of Moldova was founded in 1832. The Moldova State University and the Academy of Sciences of Moldova, the main scientific organizations of Moldova, were established in 1946.

Crime[link]

The CIA World Factbook lists widespread crime and underground economic activity among major crime issues in Moldova.^[84]

Health[link]

The average birth rate is at 1.5 children per woman.^[85] Public expenditure on health was 4.2% of the GDP and private expenditure on health 3.2%.^[85] There are about 264 physicians per 100,000 people.^[85] Health expenditure was 138 US$ (PPP) per capita in 2004.^[85]

Since the breakup of the Soviet Union, the country has seen a decrease in spending on health care and, as a result, the tuberculosis incidence rate in the country has grown.^[86] Because of this, Moldova is struggling with one of the highest incidence rates of multidrug-resistant tuberculosis in the world.^[87]

Emigration[link]

Emigration is a mass phenomenon in Moldova and has a major impact on the country's demographics and economy. The Moldovan Intelligence and Security Service has estimated that 600,000 to one million Moldovan citizens (almost 25% of the population) are working abroad, most illegally.^[88]

Culture[link]

Mihai Eminescu, national poet of Moldova and Romania

Located geographically at the crossroads of Latin, Slavic and other cultures, Moldova has enriched its own culture adopting and maintaining some of the traditions of its neighbors and of other influence sources.

The country's cultural heritage was marked by numerous churches and monasteries built by the Moldavian ruler Stephen the Great in the 15th century, by the works of the later renaissance Metropolitans Varlaam and Dosoftei, and those of scholars such as Grigore Ureche, Miron Costin, Nicolae Milescu, Dimitrie Cantemir,^[89] Ion Neculce. In the 19th century, Moldavians from the territories of the medieval Principality of Moldavia, then split between Austria, Russia, and an Ottoman-vassal Moldavia (after 1859, Romania), made a significant contribution to the formation of the modern Romanian culture. Among these were many Bessarabians, such as Alexandru Donici, Alexandru Hâjdeu, Bogdan Petriceicu Hasdeu, Constantin Stamati, Constantin Stamati-Ciurea, Costache Negruzzi, Alecu Russo, Constantin Stere.

Mihai Eminescu, a late Romantic poet, and Ion Creangă, a writer, are the most influential Romanian language artists, considered national writers both in Romania and Moldova.^[90]

The largest ethnic group is a speaker of Romanian and share the Romanian culture. Their culture has been also influenced (through Eastern Orthodoxy) by the Byzantine culture.^{[citation needed]}

The country has also important minority ethnic communities. Gagauz, 4.4% of the population, are Christian Turkic people. Greeks, Armenians, Poles, Jews, Ukrainians, although not numerous, were present since as early as 17th century, and had left cultural marks. The 19th century saw the arrival of many more Ukrainians and Jews from Podolia and Galicia, as well as new communities, such as Lipovans, Bulgarians and Bessarabian Germans.

In the second part of the 20th century, Moldova saw a massive Soviet immigration, which brought with it many elements of Soviet culture.

Moldovan culture was also influenced by historic minority ethnic communities, and in turn has had an influence on the culture of these groups, such as Bessarabian Germans and Bessarabian Jews.

Popular media[link]

Radio Basarabia in 1940

In October 1939, Radio Basarabia, a local station of the Romanian Radio Broadcasting Company, was the first radio station opened in Chişinău. Television in Moldova was introduced in April 1958, within the framework of Soviet television. Through cable, Moldovan viewers can receive a large number of Russian channels, a few Romanian channels, and several Russian language versions of international channels in addition to several local channels. One Russian and two local channels are aired.

Food and beverage[link]

A popular Moldovan dish of stuffed cabbage rolls (sarma), accompanied by sauerkraut and mămăligă.

Moldovan cuisine is similar to neighboring Romania, and has been influenced by elements of Russian, Turkish, and Ukrainian cuisine. Main dishes include beef, pork, potatoes, cabbage, and a variety of cereals. Popular alcoholic beverages are divin (Moldovan brandy), beer, and local wine.

Total recorded adult alcohol consumption is approximately evenly split between spirits, beer and wine; and the average annual adult per capita consumption, in terms of pure alcohol, in 2003–2005, was 18.2 litres, the highest in the world.^[91]

Music[link]

Zdob şi Zdub performing at the 2011 Eurovision Song Contest.

Among Moldova's most prominent composers are Gavriil Musicescu, Ştefan Neaga and Eugen Doga.

In the field of popular music, Moldova has produced the band O-Zone, who came to prominence in 2003, with their hit song Dragostea Din Tei. Moldova has been participating in the Eurovision Song Contest since 2005. Another popular band from Moldova is ska rock band Zdob şi Zdub that represented the country in the 2005 Eurovision Song Contest, finishing 6th. They also again represented Moldova in the 2011 Eurovision Song Contest, finishing 12th. Dan Bălan, another popular artist, released the album Chica Bomb in 2010.

Also worth mentioning is the band SunStroke Project, which along with Olia Tira represented the country in the 2010 Eurovision Song Contest with their hit song, Run Away. Their performance gained international notoriety as an internet meme due to the pelvic thrusting and dancing of Sergey Stepanov, the band saxophonist. He has been fittingly dubbed "Epic Sax Guy."

Holidays[link]

Most retail businesses close on New Year's Day and Independence Day, but remain open on all other holidays.

Sport[link]

Moldovan football team Sporting Chişinău in 1925.

Trânta (a form of wrestling) is the national sport in Moldova. Football is the most popular sport in Moldova.^{[citation needed]}

Rugby union is popular as well. Registered players have doubled, and almost 10,000 spectators turn up at every European Nations Cup match.^{[citation needed]} The most prestigious cycling race is the Moldova President's Cup, which was first run in 2004.

See also[link]

	Geography portal
	Europe portal
	Moldova portal

• Outline of Moldova
• Index of Moldova-related articles

Notes[link]