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Poverty, Inequality and Policy Affecting Vulnerable Groups in Moldova

Author

Listed:
  • Giovanni Andrea Cornia

Abstract

This paper analyzes the changes that have intervened in the field of income poverty and human poverty since the onset of the transition in Moldova. With a biblical contraction of GDP, a fast rise in inequality, a drop in social expenditure and a weakening of civil society, most indicators of income poverty and human poverty deteriorated sharply after 1991. A clear improvement is evident since 2001, but most indicators of well-being still have to recover their pre-transition levels. There is some scope for social and macroeconomic policy to help reduce the negative inheritance of the first ten years of transition. Macroeconomic policy is rather deflationary, and keeps aggregate growth below what is needed to eradicate poverty quickly while paying little attention to its impact on inequality. There is room therefore to place greater emphasis on an equitable pro-poor growth characterized by greater investment in agriculture and higher overall employment intensity, as well as a better allocation of migrant remittances and stronger social policies.

Suggested Citation

  • Giovanni Andrea Cornia, 2006. "Poverty, Inequality and Policy Affecting Vulnerable Groups in Moldova," Papers inwopa06/37, Innocenti Working Papers.
    • Handle: RePEc:ucf:inwopa:inwopa06/37
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    References listed on IDEAS

    as
    1. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827, November.
    2. Cornia, Giovanni Andrea & Paniccia, Renato (ed.), 2000. "The Mortality Crisis in Transitional Economies," OUP Catalogue, Oxford University Press, number 9780198297413.
    3. Martin Ravallion, 2003. "Measuring Aggregate Welfare in Developing Countries: How Well Do National Accounts and Surveys Agree?," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 645-652, August.
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    Cited by:

    1. UNICEF Innocenti Research Centre. MONEE project, 2009. "Innocenti Social Monitor 2009. Child Well-being at a Crossroads: Evolving challenges in Central and Eastern Europe and the Commonwealth of Independent States," Papers insomo562, Innocenti Social Monitor.

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    Keywords

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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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