Republic of Moldova

Republica Moldova Republic of Moldova


Anthem Limba noastră Our Language
Location of Moldova

Capital	Chişinău

Government	Republic and parliamentary democracy
Acting President
- From 2010	Marian Lupu (acting)
Prime Minister
- From 2009	Vlad Filat

Legislature	Parliament

History
- June 23, 1990	Declaration of Sovereignty
- August 27, 1991	Declaration of Independence

Area	33,846 km²

Population
- 2009	3,567,500
Density	105.4/km²

GDP	2009 (PPP)
- Total	US$ 10.1 billion
- Per capita	US$ 2,842

Currency	Moldovan leu

Soviet Union Moldovan Soviet Socialist Republic
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The Republic of Moldova is a parliamentary democracy in Eastern Europe.

Background

Part of Romania during the interwar period, Moldova was incorporated into the Soviet Union at the close of World War II. Although the country has been independent from the USSR since 1991, Russian forces have remained on Moldovan territory east of the Dniester River supporting the Slavic majority population, mostly Ukrainians and Russians, who have proclaimed a "Transnistria" republic. One of the poorest nations in Europe, Moldova became the first former Soviet state to elect a Communist, Vladimir VORONIN, as its president in 2001. VORONIN served as Moldova's president until he resigned in September 2009, following the opposition's gain of a narrow majority in July parliamentary elections and the Communist Party's (PCRM) subsequent inability to attract the three-fifths of parliamentary votes required to elect a president. Moldova's four opposition parties formed a new coalition, the Alliance for European Integration (AIE), which acted as Moldova's governing coalition until December 2010. Moldova experienced significant political uncertainty in 2009 and 2010, holding three general elections (in April 2009, July 2009, and November 2010) and four presidential ballots in parliament, all of which failed to secure a president. Following the November 2010 parliamentary elections, a reconstituted AIE-coalition of three parties formed a government, but remains two votes short of the three-fifths majority required to elect a president.^[1]

Economy

Moldova remains one of the poorest countries in Europe despite recent progress from its small economic base. It enjoys a favorable climate and good farmland but has no major mineral deposits. As a result, the economy depends heavily on agriculture, featuring fruits, vegetables, wine, and tobacco. Moldova must import almost all of its energy supplies. Moldova's dependence on Russian energy was underscored at the end of 2005, when a Russian-owned electrical station in Moldova's separatist Transnistria region cut off power to Moldova and Russia's Gazprom cut off natural gas in disputes over pricing. In January 2009, gas supplies were cut during a dispute between Russia and Ukraine. Russia's decision to ban Moldovan wine and agricultural products, coupled with its decision to double the price Moldova paid for Russian natural gas, have hurt growth. The onset of the global financial crisis and poor economic conditions in Moldova's main foreign markets, caused GDP to fall 6.5% in 2009. Unemployment almost doubled and inflation disappeared - at -0.1%, a record low. Moldova's IMF agreement expired in May 2009. In fall 2009, the IMF allocated $186 million to Moldova to cover its immediate budgetary needs, and the government signed an new agreement with the IMF in January 2010 for a program worth $574 million. In 2010, an upturn in the world economy boosted GDP growth to 3.1% and inflation to 7.3%. Economic reforms have been slow because of corruption and strong political forces backing government controls. Nevertheless, the government's primary goal of EU integration has resulted in some market-oriented progress. The granting of EU trade preferences and increased exports to Russia will encourage higher growth rates, but the agreements are unlikely to serve as a panacea, given the extent to which export success depends on higher quality standards and other factors. The economy has made a modest recovery, but remains vulnerable to political uncertainty, weak administrative capacity, vested bureaucratic interests, higher fuel prices, poor agricultural weather, and the skepticism of foreign investors as well as the presence of an illegal separatist regime in Moldova's Transnistria region.^[2]