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Part of Romania during the interwar period, Moldova was incorporated into the Soviet Union at the close of World War II. Although 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 as its president in 2001.
heavy use of agricultural chemicals, including banned pesticides such as DDT, has contaminated soil and groundwater; extensive soil erosion from poor farming methods
based on civil law system; Constitutional Court reviews legality of legislative acts and governmental decisions of resolution; accepts many UN and Organization for Security and Cooperation in Europe (OSCE) documents; has not accepted compulsory ICJ jurisdiction
chief of state: President Vladimir VORONIN (since 4 April 2001)
head of government:
Prime Minister Zinaida GRECEANII (since 31 March 2008); First Deputy Prime Minister Igor DODON (since 31 March 2008)
cabinet:
Cabinet selected by president, subject to approval of Parliament
elections:
president elected by Parliament for a four-year term (eligible for a second term); election last held 4 April 2005 (next to be held 5 April 2009); note - prime minister designated by the president upon consultation with Parliament; within 15 days from designation, the prime minister-designate must request a vote of confidence from the Parliament regarding his/her work program and entire cabinet; prime minister designated 21 March 2008; cabinet received a vote of confidence 31 March 2008
election results:
Vladimir VORONIN reelected president; parliamentary votes - Vladimir VORONIN 75, Gheorghe DUCA 1; Zinaida GRECEANII designated prime minister; parliamentary votes of confidence - 56 of 101
Centrist Union or UCM [Vasile TARLEV]; Christian Democratic People's Party or PPCD [Iurie ROSCA]; Communist Party of the Republic of Moldova or PCRM [Vladimir VORONIN]; Democratic Party or PD [Dumitru DIACOV]; Liberal Democratic Party or PLDM [Vladmir FILAT]; Liberal Party or PL [Mihai GHIMPU]; National Liberal Party or PNL [Vitalia PAVLICENKO]; Our Moldova Alliance or AMN [Serafim URECHEAN]; Party for Social Democracy or PDSM [Dumitru BRAGHIS]
three equal vertical bands of blue (hoist side), yellow, and red; emblem in center of flag is of a Roman eagle of gold outlined in black with a red beak and talons carrying a yellow cross in its beak and a green olive branch in its right talons and a yellow scepter in its left talons; on its breast is a shield divided horizontally red over blue with a stylized ox head, star, rose, and crescent all in black-outlined yellow; same color scheme as Romania
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, and again in January 2009, during a similar dispute. Russia's decision to ban Moldovan wine and agricultural products, coupled with its decision to double the price Moldova paid for Russian natural gas, slowed GDP growth in 2006. However, in 2007-08 growth returned to the 6% level Moldova had achieved in 2000-05, boosted by Russia's partial removal of the bans, solid fixed capital investment, and strong domestic demand driven by remittances from abroad. 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 remains vulnerable to higher fuel prices, poor agricultural weather, and the skepticism of foreign investors. Also, the presence of an illegal separatist regime in Moldova's Transnistria region continues to be a drag on the Moldovan economy. The deteriorating global economic crisis did not seriously effect the Moldovan economy in 2008 due to its low exposure to the international financial system, but a global economic slowdown, particularly in the EU and Russia, could hurt the economy in 2009 as Moldova relies heavily on remittances from Moldovans abroad.
general assessment: inadequate, outmoded, poor service outside Chisinau; some modernization is under way
domestic:
depending on location, new subscribers may face long wait for service; multiple private operators of GSM mobile-cellular telephone service are operating; GPRS system is being introduced; a CDMA mobile telephone network began operations in 2007; combined fixed-line and mobile-cellular teledensity 70 per 100 persons
international:
country code - 373; service through Romania and Russia via landline; satellite earth stations - at least 3 (Intelsat, Eutelsat, and Intersputnik) (2007)
18 years of age for compulsory military service; 17 years of age for voluntary service; male registration required at age 16; 12-month service obligation (2009)
Moldova and Ukraine operate joint customs posts to monitor the transit of people and commodities through Moldova's break-away Transnistria region, which remains under OSCE supervision
current situation: Moldova is a major source and, to a lesser extent, a transit country for women and girls trafficked for the purpose of commercial sexual exploitation; Moldovan women are trafficked to the Middle East, Eastern Europe, and Western Europe; girls and young women are trafficked within the country from rural areas to Chisinau; children are also trafficked to neighboring countries for forced labor and begging; labor trafficking of men to work in the construction, agriculture, and service sectors of Russia is increasingly a problem
tier rating:
Tier 3 - Moldova does not fully comply with the minimum standards for the elimination of trafficking and is not making significant efforts to do so; the government failed to follow-up on allegations of officials complicit in trafficking cited in the 2007 Report, and it did not demonstrate proactive efforts to identify trafficking victims (2008)
limited cultivation of opium poppy and cannabis, mostly for CIS consumption; transshipment point for illicit drugs from Southwest Asia via Central Asia to Russia, Western Europe, and possibly the US; widespread crime and underground economic activity
The online Factbook is updated bi-weekly. ISSN 1553-8133
For additional information on government leaders in selected foreign countries, go to World Leaders.
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