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Short Description of the Process in the Country

Moldova, a state in South-East of Europe, appeared after disintegration of the USSR. Moldova declared its independence from the USSR on 27 August 1991. This proclamation was anticipated and then followed by some basic political and legislative reforms being the foundations of an independent state. Among them there are the laws on language (31 August 1989), property (22 January 1991), citizenship (5 June 1991) and privatisation (4 July 1991). Moldova signed the Commonwealth of Independent States (CIS), on 21 December 1991. However, it declined to participate in the Treaty on Collective Security. In March 1992 Moldova became a member of UN, and in July 1995 - a member of the Council of Europe.

In March 1992 an armed conflict escalated at the hands of separatist rebels from the self-proclaimed Dniestr Moldovan Republic. The violence continued throughout the summer and as a result the 14th Russian Army entered the city of Tighina situated on the right bank of Dniester and extended its influence into the region in what Russia called a peacekeeping gesture.

The true objectives of this foreign army presence in Moldova were and continue to be questioned by the Moldovan government and international organisations; the conditions of its withdrawal are currently being pursued in multilateral meetings.

Moldova: Basic country data

Total area

33,800 .km2

Population (01.01.1997)

4,320 thousand.

Population density, population per 1 km2

128 people/km2

Capital

Chisinau

Population

more than 700 thousand

Administrative division

40 districts, 4 municipalities, 61 towns and 925 villages

National Holiday

The Independence Day (August 27)

National assembly-Parliament

(104; 4 years)

Head of the State

President

National Currency-Leu=100bani

(from Nov. 1993)

 

$ 1 = 11,73 MDL (15.XII.1999)

1 Euro = 13,0840 MDL (19.XI.1999)

 

The changes to which the country was subject during the last 6 years resulted in some positive results such as the establishment of a multiparty system, free elections, appearance of the market economy and many others.

The changes in the political, economic and social life caused significant changes in people’s mentality and brought in new forms of social relations, which influenced the overall process of human development in the country. An uneasy fact is the decreasing of the Human Development Index (HDI) for the Republic of Moldova since 1992 from 81 to 110 among the 185 countries monitored by the UN.

UN Human Development Index ranking of Moldova

   

HDI Rank

Year

HDI

among the 185 member countries of the UN

among countries with medium level of human development

1992

0.757

81

18

1993

0.663

98

41

1994

0.612

110

46

Source: 1997 National Human Development Report. Republic of Moldova.

Demography

The population of Moldova was estimated by the end of 1996 to be equal to 4,319,000 inhabitants from which 1,992,800 were urban and 2,326,200 - rural. The dynamic of the changes between rural and urban population during 1975/1996 is illustrated in the following table:

Population of Moldova (1975-97) - figures for beginning of each year, in thousands

 

1975

1979

1990

1992

1994

1997

Total

3819.4

3947.4

4361.6

4359.1

4352.7

4304.4

Urban

1370.3

1551.1

2069.3

2052.2

2036.6

1987.3

Rural

2449.1

2396.3

2292.3

2306.9

2316.1

2317.4

Source: Republic of Moldova in Figures, Department for Statistics of the Republic of Moldova, Chisinau, 1998.

As with elsewhere in the Former Soviet Union during the post-war period, in Moldova there appeared a distinct tendency for a decrease of rural population and an increase in the urban population. From an almost purely agrarian republic, Moldova became an agro-industrial economy in which, however, the urban population never exceeded the rural. In 1990, due to certain migration processes, a decrease of the urban population began.

Moldova is a multiethnic country. The Moldovans make up 65% of the whole population, the other significant ethnic groups are the Ukrainian (14%), Russian (13%), Gagauz (3,5%), Bulgarian (2,5%). The official language of the country is Romanian, Russian is spoken by most of the people. In some parts of the country Ukrainian, Gagauz and Bulgarian are spoken. The introduction of Romanian as an official language met certain difficulties and a great part of the non-Moldovan adult population still needs some language training.

Compared to most other CIS countries Moldova has a relatively young population with 13.1% of the population aged 60 and above in 1995. Similarly the share of the population under 20 (34.8%) is higher than normal for CIS countries. Whilst, however, just over 50% of the population in 1991 was under 29, the median age has moved up slightly into early 30’s by 1996.This partly reflects the fact that the birth rate has been steadily declining.

At a glance one can notice on the demographic pyramid a second "echo" of the World War II and famine in 1946-47 in the demographic structure of the population.

Population by age, at the beginning of 1995

 

Social protection and social policy

The system of social protection in Moldova continues to be centralised with a rigid structure and inefficient management. Endeavouring to cover a large range of social costs, social protection is taking over enormous commitments without having adequate financial means. According to some estimates the financial means for some social programs make up only 2/3 of the necessary amount. Under these conditions the actions carried out bear a fragmentary character and have a low efficiency. On an average only 20% of the economic reform burden is supported by the social benefits. The measures undertaken are mostly passive and do not anticipate the consequences of the reforms on a micro- and macro- level. In fact the character of the Moldovan social protection system reflects its origin from the Soviet system of social protection.

The social protection system supplies a large range of benefits through the following sectors:

In 1995, expenditure on social protection made 8,5% of GDP. There are three sources of financing the social protection programs:

The weight of these sources in the incomes of the social protection fund during the last two years is represented in the following table:

Breakdown of the social protection fund

 

1995

1996

Economic agents

87,7

72.5

State local budget

7

25

Employees

2,5

2.5

Other (grants, loans, credits, human. aids)

2,8

-

Source: Data of the Ministry of Labour, Social Protection and Family, 1997

The major part of expenditure on the system of social protection (78,7%) is made of payments for pensions. Pensioners represent one fifth of the whole population: there are218 pensioners per 1000 inhabitants. Compared to 1995 their number increased by 3000 people, the total number of them being now equal to 784 thousand. The monthly average of the fixed pension at the beginning of 1997 was equal to 79 lei (circa 17 USD), the minimal pension - 62 lei (13 USD), maximal /164 lei (35 USD). The average pension covers only 20%, and the minimal - only 16% of the minimum consumption budget. In this context, it should be mentioned that although the nominal value of pensions has increased in recent years, their real value has declined because of inflation.

786 thousand pensioners were on evidence at the beginning of 1998. Compared to the previous year their number increased by 2 thousand or 2%. Every fifth inhabitant of the country is a pensioner and to every hundred of people of a working age there are 39 pensioners.

There are two forms of social assistance: institutional and household. The institutional assistance is supplied through 10 social institutions (asylums, special schools for disabled children, sanatoriums). About 2400 people benefit each year by this kind of assistance. The household assistance is supplied by 1930 social workers who are distributed throughout the country.

A new chain in the system of social protection is represented by the unemployment assistance. 49.500 people were registered at the labour offices as unemployed during 1997 (which makes up 2.9% from the total number of economically active population) The total spending for the social protection of the unemployed during 1997 made up 8,860.5 thousand lei. By 01/01/1998 the number of officially registered unemployed reached 28,000, which is 4,547 person or 16.3% more than the respective value for the previous year.

Labour Market and Policy in the area of employment

During the last 6 years the unemployment increased affecting first of all the young people and socially vulnerable population. Starting with 1991 the occupational level of the population is decreasing. At the same time the number of unemployed registered at the State Employment service continues to increase.

Population employed in national economy

Years

1991

1992

1993

1994

1995

1996

1997

Thousand people

 

2070,0

 

2050,0

 

1939,0

 

1932,0

 

1675,0

 

1681,0

 

1680,0

Difference

-

-20,0

-111,0

-7,0

-257,0

+ 6,0

-1,0

Source: Data of the Department of Statistics, 1998

The number of persons looking for a job, registered on:

Date

1.01.93

1.01.94

1.01.95

1.01.96

1.01.97

1.01.98

1.04.98

Number

15001

14113

20554

24543

23426

27973

39065

Source: Data of the Ministry of Labour, Social Protection and Family

The breakdown of the unemployed by age (year 1997)

Age

Total unemployed

%

Found job, total

%

16-64

49,518

 

21,078

 

16-17

4,573

9.23

949

4.5

18-19

4,479

9.04

1,930

9.2

20-24

8,388

16.9

4,068

19.3

25-29

5,988

12.1

3,061

14.5

30-44

17,469

35.3

7,812

37.1

45-59

8,613

17.4

3,256

15.4

60-64

8

0,02

2

0.00

Source: Data of the Ministry of Labour, Social Protection and Family

Number of people fired as a result of reductions of personnel

Years

1992

1993

1994

1995

1996

1997

I tr. 1998

Thousand people

22,1

24,5

24,2

21,6

18,8

18,4

3,8

Source: Data of the Ministry of Labour, Social Protection and Family

Dynamics of personnel in national economy

Years

1992

1993

1994

1995

1996

1997

I tr. 1998

Fired

262,5

190,9

189,2

295,6

219,3

221,3

57,3

Placed

188,7

175,1

144,6

145,1

150,5

144,9

35,5

Difference

- 73,8

15,8

-44,6

-50,5

-68,8

-76,4

-21,8

Source: Operative data of the Department of Statistics of the Republic of Moldova

These data can be explained by the fact that the transition to a market economy in The Republic of Moldova is being performed not by means of a shock therapy like in some of the Central European countries. The preference was given a slower process, eventually less efficient from the point of view of recovering the economy however granting a high level of social stability. The state allowed the economic enterprises to decrease the level of wages of employees under the average cost of living in the country. It should be mentioned that the average cost of living doesn't define yet the level of wages of the greatest part of the employees. Under these conditions the number of employees (especially at the state enterprises) decreased gradually, without massive reductions in staff. The employees hit by hidden unemployment could decide by themselves whether to stay with the enterprise and be paid a miserable wage or to find another source for living.

The development of the private sector in the economy of the country plays an important role in the labour market strengthening. The weight of the population employed in the private sector increased considerably during the last 5 years from 45% in 1992 to 64% in 1996. At the same time it should be noted that at present the private sector has a limited capacity to create new jobs.

Employment trends by economic branch

Labour force

% of labour force in

(% of total pop)

Agriculture

Industry

Service

1993

1994

1995

1993

1994

1995

1993

1994

1995

1993

1994

1995

1688

1699

1696

43.3

45.6

46.1

14.5

13.8

11.9

42.2

40.6

42.0

Source: Anuarul Statistic al Republicii Moldova

An important factor in the organisation of the vocational training of the unemployed is its correlation to the labour market demand. A considerable mismatch between the offer and the demand on the labour market can be noticed.

The economy

Until 1990 Moldova had been fully integrated into the economic system of the Former Soviet Union (FSU). When the transition to a market economy began Moldova faced extremely unfavourable terms of trade with the rest of the FSU. The country is lacking energy resources and is almost totally dependent upon imports of oil and natural gas from Russia and coal from Ukraine. The prices for energy resources increased very quickly to world prices. Two important economic sectors, agriculture and processing of agricultural products are dependent upon imported fertilisers and other inputs whose prices rose sharply. At the same time traditional Moldovan exports of wine and agricultural products faced generally depressed markets in other CIS countries.

The Gross Domestic Product (GDP) has decreased significantly since 1990. The official figures record its fall during last years.

Gross Domestic Product 1990-1996 (1990=100%)

1991

1992

1993

1994

1995

1996

82.5

58.5

57.8

39.8

38.6

35.6

 

Dynamics of GDP, 1991-96

Dynamics of GDP fall shows that the recession has not yet been stopped. In the same time we must mention that doesn’t take into account shadow economy, which could ameliorate official GDP data.

Part I

1. General policy in the area of basic education

Educational system in Republic of Moldova is a social institute for training and education of children and young people, for vocational and social-cultural adaptation of those, of keeping and development of the potential spirit of the nation. Being oriented to democratisation, humanisation and accessibility, to creative training principles, units and diversions, education has a direct objective training of the new generation, which will become one of the major premises of consolidating state independence, its economical and cultural potential, integration in social-economical European space.

The Educational System of Moldova (fig. not available)

Explanatory notes:

State policy in educational area, stated by the law as the national priority, is determined by fundamental educational objectives, they are stipulated in basic legislative acts: Constitution of Republic of Moldova, Concept of Human Development in Republic of Moldova, Law on Education.

Educational Principles

Education, under conceptual aspect, is a unified system, implemented in a diversity of structures, forms, contents, educational technologies.

Educational policy of the state is based on principles of humanisation, accessibility, adaptation, creativity and diversity. Education is democratic and human, open and flexible, creative and it is based on national and universal culture values.

State education is irreligious, is opposite to the ideological and party, political, race and nation discrimination. Pupils and students can attend optional course, regarding moral education problems – religion.

State education is free.

Fundamental objectives of the education are: provision with equal chances for education for all population categories, forming of the citizen for obeying human rights and liberties, differentiation of the qualifications, adapted to the actual and future labour market, contribution to personal opening of the pupil.

Right for education is guaranteed, not regarding nationality, gender, race, age, origin and social position, political or religious views, criminal past.

The state provides with equal chances for access to state educational institutions as lyceum, vocational and higher education, depending on attitudes and abilities.

Educational system is based on state educational standards which provide with attestation of normative educational documents. The standards stable minimal compulsory demands as regards diverse educational levels and steps. The mode of development, approbation and introduction of the national standards is stated be the Government.

Educational standards present a base for objective evaluation of the level of general and vocational training of the graduates, not regarding educational type and form.

Statistical indices of literacy and training of the population in republic of Moldova is considered satisfactory. According to the last census of the population (1989), the level of literacy of the adult population is 96,4 %. The level of training of the population and share of children’s involvement in educational institutions, respective to their age, are close to neighbour countries. The reserve of secondary and higher education is estimated as 70% of the adult population. Approximately 4/5 of the population at the age of 25-40 years have secondary and higher education.

The breakdown of the population of 25 and more years old by the level of education in percent

 

Without education

12,7

Secondary incomplete

17,1

Secondary general

58,9

Post-secondary

11,3

Population, thousand persons

2499613

The essential problem of the education is based on the content and quality of the process of education in our society. The reality shows us that training, abilities of the population to react adequately to the new demands, dictated by the transition to other models of organisation and social behaviours, are low.

The Structure of the Education

The education, taking into account the necessity of educational continuity and the psycho-physiological age particularities, is organised in levels steps and has the following structure:

I Preschool education

II Primary education

III Secondary education

    1. Gymnasium education
    2. Lyceum education; general culture secondary education

IV Higher education:

      1. Short term (colleges)
      2. University

V Post university education

The system of education includes also the other forms of education:

Basic education includes forms I-IX with groups of compulsory training for school for 5-year children.

Preschool education is the first step of the training and education system. It represents a system of different types preschool institutions – state and private, with different programs of functioning, which correspond to the educational standards.

Education of children under 3 years of age is usually performed in family, in this case having support on behalf of the state, according to the present legislation.

Preschool education, from the age of 3 up to 6 (7) years old, is organised in institutions of different type or and forms of property or in kindergarten – primary school, with different programs of activity, depending on child’s development level and parents’ choice. Training of preschool children for school is compulsory from the age of 5 and is implemented in preparatory groups, in kindergarten or school, or, according to request of the parents, in family.

Primary education comprises I-IV forms and is organised as full-time education in primary schools, which can function as separate units or in frame of general secondary schools.

Children who are 6-7 years old are enrolled in I form when the school year starts. Schooling is obligatory when the child attains the age of 7.

Schooling for children of 6 years old can be started only if agreed with their parents, depending on the child’s somatic-psychic maturity level, in the way as it is indicated by the Ministry of Education.

Gymnasium Education

Gymnasium education is compulsory and is organised as full-time education comprising V-IX forms.

All children who graduated from primary school are enrolled in gymnasium education without testing.

Gymnasium education ends with a graduation examination, composed from several tests, and with awarding a certificate of gymnasium studies as is indicated by the Ministry of Education.

Lyceum Education

Lyceum education provides with fundamental theoretical training and with cultivation of the integrated general culture necessary for continuing the studies in higher education or in secondary vocational educational institutions.

Lyceum education is organised as a full-time education in lyceums of general theoretical education with one or more profiles or in lyceum forms in the frame of the school, as well as in the frame of versatile vocational schools.

Duration of the lyceum education is 3 years (comprising X-XII forms).

Enrolment in lyceum education is competition based, graduates from gymnasium or versatile vocational schools of the respective level can participate in entrance examinations, under conditions indicated by the Ministry of Education.

After successful baccalaureate examination a baccalaureate diploma is awarded, giving the right for higher education enrolment.

In case of failing the baccalaureate examination, it can be retaken not more than twice during next 3 years.

Lyceums are formed and disbanded on basis of decision of the Government, forwarded by the Ministry of Education and Science, agreed with local public authorities, pedagogical staff and parents.

Lyceums can be also formed in frame of universities or other higher educational institutions, generally for children having remarkable skills.


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