The Republic of Moldova remains the poorest state in Europe, with a modest economic growth that generates insufficient jobs. As a result, the population leaves the country, stated the programs director at the Institute for Development and Social Initiative “Viitorul” Viorel Chivriga, IPN reports.
In the program “15 minutes of economic realism” produced in partnership with Radio Free Europe, Viorel Chivriga said that even if the poverty rate has decreased since 2000 amid the rise in the remittance-driven consumption, a large part of the population continues to face poverty. The employment rate is low among all the categories of people. The combined tendencies of low fertility and increased emigration will generate a forecast decline in the population, while the number of elderly people will increase considerably.
According to the economist, the economic growth of the last few years witnessed in Moldova was due to the sectors with high productivity growth, but didn’t bring benefits to the population that works mainly in agriculture, which has low productivity growth. Despite the relatively high educational level, the competence level of the current labor force tends to be inappropriate for satisfying the demand on the modern labor market. The country does not have a proper re-qualification system that could help the people find a job in the country.
In such circumstances, urgent measures are needed to stimulate the Moldovans to remain in the country. The financing for the health system should be reconfigured so as to furnish medicines of a high quality at accessible prices. Also, the entire population should have access to water and sewerage. “The shortcomings in welfare and the access to services in urban and rural areas need a more active commitment. These barriers pose threats of wider inequalities and undermined economic mobility,” said Viorel Chivriga.
He also said that a safer internal labor market should be promoted to reduce poverty. This includes the creation of high-quality jobs and improvement of access to education, health and services.
