Although Moldavia's official standard of living had
below the average for the Soviet Union, there were two
factors. The rural character of the country accounted for
households receiving goods (mainly food) as well as cash
In addition, Moldavian industry was based on consumer
(including textiles, consumer appliances, and processed
agricultural goods), making them relatively plentiful
the republic (see
table 10, Appendix A).
The hostilities in Transnistria and the turmoil
the demise of the Soviet Union were the major reasons for
falling standard of living in Moldova in the early 1990s.
outbreak of hostilities in Transnistria interrupted not
flow of fuels and goods from former Soviet republics
Transnistria into right-bank Moldova but also cut off
inputs (for example, fertilizer) that were produced in
Transnistria. These, in turn, indirectly affected such
as food consumption, a sign that everyday life was
table 11, Appendix A).
In 1991 Moldova set up the Social Assistance Fund (to
assistance to the needy) and the Social Security Fund
SSF is composed of the Pension Fund, the Social Insurance
the Unemployment Fund, and the Reserve Fund. Funding for
comes mainly from a payroll tax and from direct budget
The Pension Fund includes old-age pensions (age
for women who have worked at least twenty years, and age
for men who have worked for twenty-five years), pensions
invalids, pensions for women who have raised three or more
children, military and special merit pensions, and
people of retirement age or for people who receive
pensions yet continue to work.
In early 1994, approximately 900,000 people (about 20
of the total population) received pensions. Legislation
both benefits for dependent children and the minimum
1992, and a law was passed to index benefits to inflation,
had not been fully implemented by the end of the year.
that passage of this law would add significantly to the
on an already overburdened budget.
Data as of June 1995