Moldova risks new economic stagnation

Unless Moldova reaches higher human development standards it risks a new period of economic stagnation, having little chance to join the EU or to carry out any national strategies. This is the main conclusion of the National Report on Human Development 2006 “The quality of economic growth and its impact on human development”, which was launched on November 21 in Chisinau. The report, drafted by the Analytic Center “Expert-Grup” and the Association for Participatory Democracy ADEPT, asserts that during 2000-2006, the economic growth of Moldova had a low quality, having a relatively poor impact on the human development. Although in 2001-2005 the Moldovan economy went up about 7% annually, the link between the economic growth and human development was scarce. The more the economic growth is socially and geographically spread, the higher will be its quality, the research found. A quality economic growth ensures a high level of human involvement in the economic processes; it reduces income disparity and poverty by increasing the incomes of underprivileged persons and contributes to the improvement of peoples’ education and health. At the same time, a high quality economic growth is also sustainable from the economic point of view and for this to happen it is necessary that a part of the income is reinvested in the maintenance and enlargement of the grounds for the future economic growth. The document is an extensive independent research as concerns the economic evolutions of the Republic of Moldova since its declaration of independence till present days, and their impact on human development. The report is not only presenting the changes occurred in the national economy and society or only analyzing them via statistic data; it also shows the social-economic effects generated by the economical transformations. The report presents the way the economic changes had been perceived by the population and what can be their results over the further economic development. The opinions of the inhabitants included in opinion polls are used in the report, therefore offering the readers the possibility to understand that beyond the whole host of statistical indexes there are real persons, who are directly affected by the economic and human development processes. The report contains information about structural modernizations, state of affairs in agriculture, industry, the role of migration, regional profile of the economic growth, the role of the financial sector, human development in rural and urban regions, population’s health, education, justice, reform of the public administration, direct foreign investments. The report was drafted with the support of UNDP Moldova.

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