IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Moldova?s Middle-Income ?Mistaken Identity?: The Severe Income and Human Development Costs

  • John Weeks

    ()

    (Professor Emeritus, School of Oriental and African Studies, University of London)

Registered author(s):

    The newly independent Republic of Moldova joined the World Bank and the IMF in 1992. The World Bank designated it a ?middle-income? country, a status it retained for Bretton Woods lending until 1997. The middle-income designation implied that the government of Moldova was not eligible for concessionary lending from the World Bank and IMF, and would not receive concessionary finance from the major bilateral development agencies. After demonstrating that assigning middle-income status to Moldova was a mistake, which was implicitly conceded by the World Bank in 1997, this Country Study investigates the consequences. It uses a simple procedure for calculating counterfactual scenarios based on assigning Moldova low-income status in the early 1990s. The counterfactual scenarios suggest that the development and welfare costs of the mistake were extremely high: a much greater fall in income per capita than would otherwise have been the case, with an associated increase in headcount poverty and lower life expectancy. There is a cruel irony associated with this mistake. Had Moldova been designated a low-income country in the early 1990s, it would have been by the mid-2000s a middle-income country instead of remaining the poorest country in Europe. Thus, there is a strong case for multilateral compensation.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.ipc-undp.org/pub/IPCCountryStudy11.pdf
    File Function: First version, 2007
    Download Restriction: no

    Paper provided by International Policy Centre for Inclusive Growth in its series Country Study with number 11.

    as
    in new window

    Length: 24
    Date of creation: Oct 2007
    Date of revision:
    Publication status: Published by UNDP - International Poverty Centre, October 2007, pages 1-24
    Handle: RePEc:ipc:cstudy:11
    Contact details of provider: Web page: http://www.ipc-undp.org
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ipc:cstudy:11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andre Lyra)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.