Change Comes At A Price

1415 WordsApr 18, 20166 Pages
Change comes at a price. Moldova’s economy is in a critical condition. This small country is a former Soviet Union republic located in the southeastern region of Europe, next to Romania. Its separation from the single-party communist state resulted in devastating economic consequences and increased number of people living in poverty. Moldova is considered the poorest country in Europe based on the Gross Domestic Product (GDP) per capita. The economic crisis in Moldova is a result of the deteriorating economic and social conditions, which were caused by the collapse of the Soviet Union, the crumbling economy, and the population migration, but the situation is in the process of being resolved with the support of the European Union. Moldova…show more content…
The people of Moldova do not have the choice to create their own independent companies. Therefore, they are unable to improve their economic status and increase their wealth. There is evidence in the 2015 Index of Economic Freedom claiming that, “Moldova is ranked 39th among 43 countries in the Europe region, and its overall score is below the regional and world averages” (“Moldova” 2015). Due to the high poverty level in the state, Moldova is one of the poorest countries in Europe. Overall, Moldova’s geographical location and current political situation presents a great disadvantage to its economy. Moldova has undergone many economic problems due to the collapse of the Soviet Union. Moldova’s economy had lost about two-fifths of its size, while most of the former communist countries in Central Europe had managed to rebound to their original sizes (Hensel and Gudim). Most of the former Soviet republics had the capability of resolving their economic issues by utilizing their own resources and properly managing them. The country of Moldova suffered many struggles after separating from the Soviet Union, compared to other former Soviet republics. The equipment necessary for this country is unavailable within the borders, but is available in other countries for higher prices (“Out of the USSR”). The nation of Moldova was completely dependent on the Soviet economy and were unprepared to function
Open Document