Eradicate poverty and hunger
Where we are
Moldova has made remarkable progress in reducing poverty. In 2012, it already reached the final targets set for 2015. The incidence of poverty according to the international threshold of 4.3 dollars per day decreased from 34.5% in 2006 to 20.8% in 2012 (final target – 23.0%). The share of the population living under the absolute poverty line decreased from 30.2% to 12.7% (final target: 20.0%), while the share of population suffering from hunger – from 4.5% to 0.6% (final target: 3.5%). This is mainly due to the economic growth, the increase of revenues remitted by the migrants and the social assistance provided by the Government according to a specific formula, which allows for a better targeting of the resources to assist the really poor families.
Despite this progress, rural poverty is worrisome: in big cities absolute poverty has decreased by more than two times from 2008 to 2012 (from 10.9% to 4.3%), while in villages the decrease was slower (from 34.6% to 22.8%). The gap between rural and urban living standards increased: in 2006, 75.7% of the poor lived in villages, while in 2012 this share increased to 79.1%.
The main causes of rural poverty include: low competitiveness and climate vulnerability of the agricultural sector, the lack of alternative occupations in other economic sectors, and migration. All these have created a vicious cycle of poverty, in which the vast majority of Moldovan villages are still trapped. If state resources were fully allocated based on the principle of means testing, there would be almost enough to completely eradicate poverty. Nevertheless, besides monetary poverty, rural populations also faces other forms of poverty, related to limited access to a number of basic services (water and sewerage, health and education services), as a result of insufficient infrastructure.
The Government acknowledges economic growth is a vital component in maintaining and strengthening long-term progress in alleviating all forms of poverty, as is model of growth which is more environmentally sustainable, and socially and geographically more equitable. Both national and sector strategies developed over the last years have targeted this goal.