Why Is Moldova the Poorest Country in Europe

Why Is Moldova the Poorest Country in Europe

Why Is Moldova the Poorest Country in Europe?

Moldova, a landlocked republic in eastern Europe, formerly a European soviet has remained impoverished 30 years after its independence. The authorities in the poorest country in Europe are worried about the rate specialized labor is leaving the country. But why is Moldova the poorest country in Europe?

Please note that the facts presented here about why Moldova is the poorest country in Europe, are my personal opinion formed out of my own careful research about economic indications of countries throughout the world and comments of professionals around the globe. I respect the rights of others to express their dissent.

According to some estimates, some 25% percent of Moldovans are working abroad, making it the 11th highest in the world. Commenting on this saddening situation, Veaceslav Ionita, a Moldovan economist and prominent politician, once said: “Our people, our immigrants, most of them are now in the European Union western countries.” Dichotomizing the situation, Ionita added: “We have immigrants in Russia but it’s more poor people, from rural areas, because it is easier to go to Russia, and usually for a short term. They go to Europe for the long term.

Yes, these people make money abroad and send them back home. Research has shown, however, that international remittances contribute only a little to economic development in the receiving nations. It can only alleviate extreme poverty for the direct recipients and raise their standard of living in the short and medium run. No wonder Moldova remains poor amidst plenty of wealthy European countries.

Here are other factors contributing to poverty in Moldova. Population surge: Between the 1920s and 1980s, Moldova experienced sixty years of a huge population boom. The state didn’t see any need to control it then as it was a dependent nation. It was after their independence in 1991 that it came to the shocking realization of what it has to contend with.

Since there is an over-population in the rural area, the supply of labor outgrows the demand. Your guess is as good as mine on how cheap the labor will be and how low their bargaining power will be.

By the same token, the country lacks the technology to invest in large-scale industrialization. Additionally, agriculture is unproductive because the farm size is too small and the grain yields are low. When the yields are low, you can understand that there will be food insecurity.



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Another havoc wreaker is the collapse of the nation’s economy suffered during the mismanaged transition to a market economy. This was compounded by several errors in social policy. Agriculture that the country lacks a comparative advantage on was looked to as the largest contributor to the country’s GDP. And don’t forget please that grain yields have become so low for several years.

Political instability and subsequent trade barrier with Ukraine and other neighbors also reduce the export opportunities of this country.

The Moldovan authorities are making effort to reduce poverty and promote inclusive growth and this produces little results. However, all the gains since early 2000 are been wiped off since 2019.

These are the reasons why Moldova is the poorest country in Europe.

Do you know a country poorer than Moldova in Europe? Kindly let me know by indicating in the comment section. Please try to share your yardstick.


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