Moldova

Background:
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
    
Geography:
Area: 33,843 sq. km. (13,000 sq. mi.); slightly larger than Maryland.
Cities: Capital--Chisinau.

People:
Nationality: Noun--Moldovan(s). Adjective--Moldovan.
Population (January 1, 2008): 4.1 million, including the estimated Transnistrian population of 533,000. An estimated 750,000 to 1,000,000 work outside the country.
Population growth rate (2007): -0.3%.
Ethnic groups (2004 census): Moldovan (83.7%), Ukrainian (6.6%), Russian (1.7%), Gagauz (4.5%), Bulgarian (1.7%), Romanian (1.4%), other (0.4%).
Main religions: Christian Orthodox (93.3%), Baptist (1%), Adventist, Roman Catholic, Jewish.
Languages: Romanian (officially known as Moldovan), Russian, Ukrainian, Gagauz.
Education: Literacy--96%.
Health: Infant mortality rate--11.1/1,000. Life expectancy--68.4 years.
Work force (1.3 million): Agriculture--35%; industry--12%; other--47%.

Goverment:
Type: Republic.
Constitution: Adopted July 28, 1994.
Independence: August 27, 1991 (from Soviet Union).
Branches: Executive--President (head of state), Prime Minister (head of government), government (cabinet). Legislative--unicameral Parliament. Judicial--Supreme Court.
Administrative subdivisions: 32 counties (raions), 4 municipalities, and one autonomous territorial unit.
Political parties: Party of Communists, People's Christian Democratic Party, Our Moldova Alliance, Democratic Party, Liberal Party, Social-Democratic Party, Liberal Democratic Party, Party for Social Democracy, and the Centrist Union.
Suffrage: Universal at 18.

Economy:
GDP (2007): $4.4 billion.
GDP growth rate (2007): 4.0%.
Per capita GDP (2007 estimate): $1,298.
Natural resources: Lignite, phosphates, gypsum, arable land, and limestone.
Agriculture: Products--vegetables, fruits, wine and spirits, grain, sugar beets, sunflower seeds, meat, milk, eggs, tobacco, walnuts.
Industry: Types--processed foods and beverages, including wine and refined sugar; processed fruit and vegetable products, including vegetable oil; dairy and meat products; tobacco items; metal processing and production of machinery; textiles and clothing, shoes; furniture.
Trade (2007): Exports--$1.342 billion (of which 50% went to the EU countries and some 40% to the former Soviet Union): textiles, clothing, foodstuffs, wine, and machinery. Major markets--Russia, Romania, Ukraine, Italy, Germany, and Belarus. Imports--$3.690 billion (of which 45% came from the EU countries and 36% from the former Soviet Union): gas, oil, coal, steel, machinery and equipment, chemical products, textiles, foodstuffs, automobiles, and other consumer durables. Major suppliers--Ukraine, Russia, Romania, Germany, Italy, and China.
Currency: Moldovan Leu (plural Lei).
Exchange rate: Leu/US$ 2008 average: 10.39; 2007 average: 12.13; 2006 average: 13.13.

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.