The gap between absolute urban and rural poverty is significant – 19% of population living at poverty line in rural areas vs. 5% in urban areas. The poorest spend most on food and utilities, which makes them vulnerable to economic shocks.  Besides financial inequalities, the most vulnerable groups – women, persons with disabilities, elderly and young people – are exposed to social inequalities in education, health, access to quality services, and participation, shows the National Human Development Report 2015/2016, launched by UNDP Moldova, IPN reports.

Economic expert Dorin Vaculovschi said the economic inequalities lead to stagnation in development. The study reveals that the municipality of Chisinau is 4-5 times more developed than the country’s regions.

According to the authors of the study, the highest salaries are reported in Chisinau, followed by the Northern region. While the remittances account for only 6% of disposable income in the capital city, these account for one fourth for Southern residents and one fifth for Northern residents.

The average consumption expenditures of the population increased by 12.8% in 2015 compared to 2014. The largest share of financial resources is spent on food, housing maintenance, clothing, transport and communications. Only 0.6% of expenditures is spent on education, compared to 42.1% spent on food.

Although the average disposable income of the population increased twice in 2010-2015, the gap between urban and rural population has increased too. Hence, the urban-rural income gap doubled from 23.6% in 2010 to almost 42% in 2015. These inequalities are also amplified by the limited access to quality utility services in rural areas. In the absence of an economic growth felt by rural residents, the remittances are the only ones to cover the consumption.

The study shows pensioners are one of the most vulnerable groups. The poverty rate among households led by pensioners was 14.6%, which is 1.3 times higher than the national average. The vulnerability of this category of people is generated by the low pension, which is the main source of income for this group.

The report recommends reducing territorial inequalities by attracting investment to develop local infrastructure and economy and taking measures to modernize or adjust the current pension system to the economic, social and demographic realities. The modernization of the system necessitates fast removal of inequalities at internal level so as to gradually increase the retirement age and make it equal for women and men, as well as the incomes between these. The reformation of the system should also include measures on active aging at the workplace and legal conditions should be thus created to facilitate the elderly people’s access to the labor market.