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Demographic problem affects economy too and broad reforms are needed, opinions


https://www.ipn.md/en/demographic-problem-affects-economy-too-and-broad-reforms-are-needed-opinions-7967_1040924.html

The demographic problem affects the national economy, social development and geopolitical stability. To solve it, Moldova should give priority to investments in policies that meet the main demographic tendencies, such as low fertility, migration, high mortality rate or population ageing. The subject was discussed in an international conference held at the Academy of Sciences of Moldova on April 3, IPN reports.

Attending the event, President Igor Dodon said there is a collective blame for the series of demographic problems faced by Moldova, including errors made by the governments. The people leave Moldova because the country faces serious socioeconomic problems. “If all the other problems can be solved in several years, the demographic problem requires a longer period of time. The exodus involves mainly young people. We witness brain drain and labor force exodus. The salvation of Moldova’s population should be the objective of any government and of the academic community. Civil society should also set the goal of remedying the demographic situation and of stopping migration,” stated Igor Dodon. According to him, Moldova can get rid of the demographic decline only if it ensures decent living conditions for the population and this can be done by pursuing ambitious policies.

Alexandru Stratan, director of the National Institute for Economic Research of the Academy of Sciences of Moldova, said the demographic decline is determined by the lower natality, persisting high death rate and migration. At the same time, the demographic situation is an indicator of the stage achieved in the country’s economic development. The quantitative decline in working age population and aging of the labor force are among the consequences of the demographic decline and modification of population structure, which influence the people’s welfare. For Moldova, emigration and its dimensions have a negative effect despite the remittances that fuel economic growth.

“Broad reforms are needed as swiftly as possible. The revision of the economic policies and identification of the strategic measures in the key area will contribute to diminishing the impact of the demographic changes and will ensure favorable conditions for the young people and mare population. The state policies in this regard should be complex and should be based on the experience of other states, by taking into account the particularities of the Republic of Moldova. The academic community realized long ago that it should help the politicians in this regard. The state policies should be in tune with the economic changes from now on,” stated Alexandru Stratan.

Olga Gagauz, director of the Demographic Research Center of the National Institute for Economic Research, noted that owing to migration Moldova lost the demographic dividend. However, the percentage of the working age population is rather high and the state should concentrate its efforts on drafting two types of policies – improvement of demographic indicators and demographic change adjustment policies.

At the end of the conference, the members of the academic community will submit proposals for improving policies in the field based on scientific research.