2010/2011 National Human Development Report Republic of Moldova From Social Exclusion Towards Inclusive Human Development Chisinau, 2011 United Nations Development Programme is the United Nations’ global development network, advocating for change and connecting countries to knowledge, experience and resources to help people build a better life. We are on the ground in 166 countries, working with them on their own solutions to global and national development challenges. As they develop local capacity, they draw on the people of UNDP and our wide range of partners. In all our activities, we encourage the protection of human rights and the empowerment of women. The analysis and policy recommendations of this report do not necessarily reflect the views of the United Nations Development Programme, its Executive Board or UN Member States. The report is an independent publication commissioned by UNDP. It is the result of a collaborative eff ort by a team of eminent consultants, advisors and authors coordinated by the Advisory Group. Republic of Moldova From Social Exclusion Towards Inclusive Human Development: National Human Development Report … / aut.: Dorin Vaculovschi, Maria Vremis, Viorica Craievschi-Toarta [et al.]. – Ch.: “Nova-Imprim” SRL, 2011. … 2010/2011. – 2011. – 200 p. – 500 ex. ISBN 978-9975-4131-8-3. 316.3+338(478)(047) R 46 Copyright ©2011 by the United Nations Development Programme (UNDP) in the Republic of Moldova 131, 31 August 1989 Street, Chisinau, MD-2012, Republic of Moldova All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission. Cover and Layout Design: Ion Axenti Printed by Nova Imprim in Chisinau, Republic of Moldova Republic of Moldova From Social Exclusion Towards Inclusive Human Development Team for the development of the 2010 NHDR Lead authors Dorin Vaculovschi Maria Vremis Viorica Craievschi-Toarta Arkadii Toritsyn Peer reviewers Valeriu Prohnitchi, Expert-Grup Onorica Banciu Claude Cahn, Human Rights Advisor, United Nations Offi ce of the Resident Coordinator Moldova Serghei Ostaf, CReDo Regional team (UNDP Bratislava Regional Center) Andrey Ivanov, Human Development Advisor Susanne Milcher, Social Inclusion Specialist Mihail Peleah, Human Development Programme and Research Offi cer UNDP Project Coordinators Lovita Ramguttee, ARR/Portfolio Manager Dumitru Vasilescu, Project Manager Editor Thomas Charles Escritt III 2010/2011 National Human Development Report IV FOREWORD Since 1990, human development has become a well-known paradigm for ana- lyzing and measuring the progress of societies. For the past 20 years, there has been a shift in understanding towards the idea that the key to building suc- cessful democratic systems, with sustainable economies, is not only economic growth and wealth accumulation, but also expanding people’s choices and broad¬ening their opportunities. Since 1995, the United Nations Development Programme’s National Human Development Reports have explored critical hu- man development issues at national level and hence contributed signifi cantly to the formulation of national development strategies and policies, as well as provided an example of how the col- laborative approach can generate benefi ts for all stakeholders and the nation at large. Human development is also about the active engagement of people in the process of develop- ment. Therefore they are both benefi ciaries and drivers of human development, as indi¬viduals and groups. When people are excluded from full participation in society, there are direct conse- quences for human development. Social exclusion has been increasingly used in political debates and research on poverty and social inequality, often replacing the term poverty. Recently the con- cept of social exclusion emerged, which is diff erent from poverty and is more comprehensive, because it does not only include the lack of material resources, but also the inability to actively participate in social, economic, political and cultural life of the society. To achieve human develop- ment to the fullest extent, deliberate, inclusive processes, expanding people’s opportunities in all of these dimensions, are required. This report provides an in-depth analysis of social exclusion phenomena and human development covering the past 20 years of transition. Social exclusion is a relatively new concept in the research fi eld in the Republic of Moldova, although the phenomenon itself has been previously analyzed in a more simplistic and sporadic way. This report is unique in that it addresses social exclusion from a multidisciplinary and multidimensional perspective. The report argues that social inclusion re¬quires integrated approaches, simultaneously targeting all exclusion dimensions. After nearly twenty years of transition to the market economy, the Republic of Moldova is still re- garded as one of the poorest country in Europe, with about one third of its population living below the poverty line. Despite the economic growth recorded between 2000 and 2008, with an aver¬age yearly growth rate of 5.9%, not all groups of population have been able to enjoy its benefi ts. In late 2008 and early 2009, the Moldovan economy was hit hard by the global economic and fi nancial cri- sis. The eff ects of the crisis are still perceivable at all levels, with several economic sectors still unable to fully recover, although positive trends can be already observed starting with 2010 onwards. The general perception is that social exclusion occurs when diff erent factors combine to trap in- dividuals and areas in a spiral of disadvantage. In Moldova there are a number of drivers of social exclusion which are analyzed throughout the Report. These factors are discussed in the Report and specifi c recommendations are provided. The current economic crisis exacerbated some of IV Republic of Moldova From Social Exclusion Towards Inclusive Human Development these factors, leading to an even deeper exclusion of certain population strata and hence to fur- ther negative eff ects on sustainable human development prospects. The report has been developed by a team of national and international consultants, with exten¬sive experience in diff erent areas related to human development and social exclusion, and ben¬efi ted from international know-how and extensive stakeholder consultations. Its intended audi¬ence is policy makers at national, regional and local levels, civil society and academia, donors and provid- ers of technical assistance, and the general public. Since 2010 was declared the European Year for Combating Poverty and Social Exclusion, ten years after the establishment of these two priorities in the EU social policy agenda (Lisbon summit, 2000), we are proud to have produced a timely, comprehensive and collaborative product, for the benefi t of all actors involved. I look forward to this Report generating discussions on social exclu- sion and human development, the role of government as well as individuals in addressing these issues and the proposed policy recommendations. Through this report and the recommendations therein, it is our hope that we can contribute to a more inclusive society and hence more sustain- able human development for the Republic of Moldova and its citizens. Kaarina Immonen UNDP Resident Representative and UN Resident Coordinator V 2010/2011 National Human Development Report VI PREFACE The scope of the research in the present National Human Development Report for the Republic of Moldova addresses social exclusion, or the inability of indi- viduals to play an active and full part in everyday life, as well as diff erent social activities. Alongside poverty, this social plague continues to aff ect our society regardless of the eff orts made by the Government, civil society and the interna- tional community. The concept of social exclusion itself is a recent one not only for the Republic of Moldova, but also for other countries. At the same time, it is increasingly being used in political debates and in research on poverty and social inequality. Since the concept of social exclusion is more compre- hensive than that of poverty, it allows for the formulation and application of a new philosophy and the introduction of certain new tools of intervention into anti-poverty and social development policies, the emphasis being placed not so much on fi nancial assistance, but on social inclusion measures. Thus, the given policies become more eff ective and more accessible to all who are fac- ing diffi culties, irrespective of the problems that they encounter. At present, the struggle against social exclusion is recognized by the EU and the UN as one of the principal tasks in ensuring economic growth and sustainable human development. And partici- pation has become a key object of the development. Precisely for these reasons, modern social policies should be focused primarily on ensuring that people facing diffi culties have adequate resources for achieving social inclusion. In other words, there should be specifi c social inclusion policies. In the Republic of Moldova, the problem of social exclusion and inequality was addressed concep- tually in the National Development Strategy for 2008-2011 (NDS) as one on the basic priorities, in the context of a document entitled Development of human resources, growth of employment level and promotion of social inclusion. Generally, research carried out over the last decade shows that