Geography: The Republic of Moldova is a newly independent south-eastern European state situated between the Danube, Prut and Nistru rivers. The country is bordering the Ukraine in the North, East and South and Romania in the West. The country’s territory is 33,800 sq.km.

Population: Moldova is one of the most densely populated European countries with a population of 3.4 million inhabitants. The Moldovans represent the largest ethnic group (76.1%), followed by Ukrainians and Russians (8.4% and 5.8% respectively) and smaller minorities such as the Gagauz minority (an ethnic group of Turkish origin, 4.4%) and Bulgarians (1.9%). The official language is Moldovan (Romanian).

Political system: The Republic of Moldova proclaimed its independence on August 27, 1991. Three years later, on June 29, 1994 the Constitution of the Republic of Moldova was adopted. On July 5, 2000 the Parliament passed an amendment to the Constitution according to which Moldova becomes a parliamentary republic with the President being elected by the Parliament.

Economic policy: It has been now 14 years since the newly independent Republic of Moldova began the transformation of its political and socio-economic system. The main goal of the reform efforts was to ensure transition from an authoritarian political system and state-controlled economy to a democratic state with market economy and free civil society. In the process, the country has encountered some difficulties and transition has produced only partial success. Most of the positive results have been registered in the area of economic and political freedoms – openness of the country, democratization of public life, liberalization of prices, enterprise operations, internal and external trade, and many others.

Since 1999, a series of structural and institutional reforms, which are indispensable for the efficient functioning of a market economy have been implemented. These measures have helped maintain macroeconomic and financial stability under difficult external circumstances, enabled the resumption of economic growth and contributed to establishing an environment conducive to economic growth and development.

In 2004, the Parliament of the Republic of Moldova approved the Economic Growth and Poverty Reduction Strategy Paper (EGPRSP). Prepared in broad consultation with stakeholders, this first full Poverty Reduction Strategy Paper is an attempt by the Government of Moldova to bind together the economic and social aspects of the country's development around an emphasis on pro-poor growth. The EGPRSP has the potential “to become an effective tool for continuous strategic planning, and prioritization of strategic objectives”. In addition, it provides a comprehensive framework for the coordination of development assistance and creates imperatives for all stakeholders to ‘work together'.

The Republic of Moldova joined the United Nations on March 2, 1992.

Source: 2006 National Human Development Report

* excluding Transnistria