The social costs of the transition in Moldova
The social costs of the transition in Moldova

Summary/Abstract: The transition in Moldova has been characterised by deep social degradation, with continuously decreasing economic productivity. Furthermore, the depths of the degradation to which the economy has sunk is reflecting an increasingly destructive trend. The reforms have not only not improved the living standards of the population – these are presently below the limits of a decent existence. According to a poll conducted by the Centre for Strategic Research and Reform and the Soros Foundation, only five per cent of the population have felt the advantages of the reforms, while for about 70 per cent, the situation has become worse. Even if we continue to believe that the long-term results of the economic reforms will be beneficial for the country and its citizens, on a short-term basis they have resulted in some considerable social costs. Among these are poverty, unemployment, corruption at various levels of society, and the inefficiency of the institutions of the country which are meant to protect its citizens. Moreover, considering the high stratification of incomes, along with the very high level of corruption, it could be deduced that the burden of reforms has lain on the most vulnerable categories of the population – and still does – while the benefits are shared by a limited number of corrupt officials and shadow economy entrepreneurs. The danger of the stabilisation of a high level of poverty is a very real one – the burden of social costs accumulated during the transition period is so large that it is difficult to believe it can be eliminated in the near future.

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