Reforming Moldovan social assistance: Poor Laws for the European fringe?

Abstract

The small south-eastern European Republic of Moldova is often referred to as ‘the poorhouse of the continent’. During its transition from a communist to a market economy, inequality and poverty rose exponentially – with the latter reaching a peak of 70% in 1999. Thus, a new social contract between state and society had to be fabricated. The Soviet social protection system, designed around the needs of the workforce and specific groups, was unable to meet the challenges posed by transition. A reform seemed inevitable, re-targeting resources at the most needy. However, Western means-tested models could not be simply transferred; path-dependencies along with donor interventions shaped and altered the policy process.

Keywords:

• Moldova
• social assistance reform
• post-communist welfare state
• poverty targeting

Notes

1. Even though representatives from various organizations have been interviewed to get a comprehensive picture, a potentially biased choice of interviewees might have emerged due to restrictions of access to interviewees in the Moldovan ministries.

2. The UK Department for International Development and the Swedish International Development Cooperation Agency.

3. Organisation for Economic Cooperation and Development.