ABSTRACT
Moldova faces multiple problems. It is economically dependent on Russia. Its economy is focussed on primary production in agriculture. It has suffered from serious falls in output — GDP fell by 8.6% in 1998 and a further 4.4% in 1999. Its population is among the poorest in Europe with a per capita income of some $353 per annum in 2000 (United Nations Development Programme, 2000). Innovation and development are thus crucial to future prosperity, but difficult to achieve. Moldova's long association with the Soviet bloc meant that relationships with other countries have been slow to develop and that its institutions tend to be bureaucratic in structure and conservative in outlook. The Moldovan economy has found it difficult to adapt to free market conditions.
