MoldovaThe Economy in the Soviet Period
Figure 19. Economic Activity in Moldova, 1995
Source: Based on information from Lerner Publications Company,
Geography Department, Moldova, Minneapolis, 1993, 44.
Under Soviet rule, the Moldavian ASSR (1924-40)
experienced
considerable industrial development between the two world
wars,
particularly in and around Tiraspol, the site of new
manufacturing activity. After World War II, substantial
industrialization occurred throughout the Moldavian SSR
(1940-
91), especially in Chisinau, but with a continuing focus
on
Transnistria as well. In addition to further developing
the foodprocessing industry, the government introduced the
textile,
machine tool, and electronics industries
(see
fig. 20).
Until independence, Moldova's economy was organized
along
standard Soviet lines: all industry was state owned, as
were
commerce and finance. Approximately one-third of all
enterprises (see Glossary)
were subordinate to the economic ministries
of the
Soviet Union, and two-thirds were subordinate to
republic-level
authorities. Agriculture was collectivized, and production
was
organized principally around
state farms (see Glossary)
and
collective farms (see Glossary).
The Moldavian economy, robust in the 1970s, slowed down
somewhat in the early 1980s and contracted sharply in
1985,
mainly as a result of declining activity in the wine
sector, a
casualty of Gorbachev's antialcohol campaign. In the late
1980s,
the economy briefly regained strength and grew faster than
the
economy of the Soviet Union as a whole.
Data as of June 1995
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