MDG 1 Poverty Reduction

MDGs in Moldova

	Eradicate poverty and hunger
	Ensure access to gymnasium education
	Promote gender equality and empower women
	Reduce child mortality
	Improve maternal health
	Fight HIV/AIDS and tuberculosis
	Ensure a sustainable environment
	Create a global partnership for development

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Eradicate poverty and hunger

In 2000, at the Millennium Summit in New York, Moldova has committed, together with other countries, to achieve eight Millennium Development Goals by 2015. Moldova took upon itself the commitment to reduce extreme poverty and hunger by 2015. The Millennium Development Goals are on the agenda of the Government of the Republic of Moldova and are included in the National Development Strategy 2008-2011.

International targets

Halve between 1990 and 2015 the proportion of people whose income is less than $1 a day (in PPP terms).
Halve between 1990 and 2015 the proportion of people who suffer from hunger.

Initial national targets

Halve between 1997 and 2015 the proportion of people whose income is less than $2.15 a day (in PPP terms).
Reduce the proportion of this category of population from 39.8% in 2002 down to 28% in 2006, 23.0% in 2010, and 18.0% in 2015.
Halve between 1998 and 2015 the proportion of people who suffer from hunger.

(Source: draft National Report „Millennium Development Goals Report:„New Challenges – New Objectives”)

Revised national targets

Reduce the proportion of people whose consumption is under $4.3 a day/person (in PPP terms) from 34.5% in 2006 down to 29% in 2010 and 23% in 2015.
Reduce the proportion of people under the absolute poverty line from 30.2% in 2006 down to 25% in 2010 and 20% in 2015.
Reduce the proportion of people under the extreme poverty line from 4.5% in 2006 down to 4% in 2010 and 3.5% in 2015.

TRENDS

The evolution of poverty in the Republic of Moldova is uneven.

From 1998, poverty in Moldova experienced a rapid increase, reaching one of the highest levels (over 70 percent) experienced in the Commonwealth of Independent States.
In 2000, the poverty began to fall and decreased rapidly.
In 2005, despite economic growth, the level of poverty increased moderately especially due to rising poverty in rural areas.
In 2006, about 1 million people in Moldova (30.2 percent) were living in absolute poverty and about 150,000 (4.5 percent) people were living in extreme poverty.
In 2007, the impoverished segment of the population declined by about 16,000.
However the 2005 scenario was repeated in 2008 – poverty rates increased as a result of its spreading in rural areas as a result of poor agricultural returns in 2007 (results in agriculture have a delayed impact on poverty rates).
It is worthwhile noting that in 2009, despite severe economic decline, absolute poverty did not grow, while the incidence of extreme poverty declined even further.

(Source:The second Millenium Development Goals Report - Republic of Moldova )

Peculiarities of poverty in Moldova

In 2001, every second inhabitant of the Republic of Moldova suffered from poverty. The poverty level decreased in 2002 to 40.4%, although this indicator remains an alarming one.

During the economic crisis, small towns suffered the most. The few enterprises they had (in some towns existed only one single factory of plant) were closed or have reduced their program. Thousands of persons were left unemployed. As a result, the highest level of poverty is in small towns, a lower level in rural localities and the lowest in large cities.

After a significant drop in poverty between 1999 and 2004, poverty increased in 2005. In 2006, approximately 1 million people (30.2%) in the Republic of Moldova were living in absolute poverty, and less people, approximately 150,000 people (4.5%), were living in extreme poverty, with a monthly consumption less than MDL 404.2 a month (about $31). Child poverty is one of the most serious factors of social exclusion children face in Moldova. Incidence of child poverty is significantly higher than adult poverty. Children from rural area represent the most disadvantaged category: 71% of poor children live in villages, while 62.9% of all children live in rural areas. From a gender perspective, both boys and girls are almost equally subject to poverty risk. Differences can be seen by ages: children aged 3-10 are most vulnerable.