Mostly undulating steppe country, Moldova is the smallest and most densely populated of the former Soviet republics. Once a part of Romania, it was incorporated into the Soviet Union in 1940. Independence in 1991 brought with it the expectation that Moldova would be reunited with Romania. In a 1994 plebiscite, however, Moldovans voted against the proposal. Most of its population is engaged in intensive agriculture.

Moldovans are ethnically identical to Romanians. There are 153,000 Gagauz (Orthodox Christian Turks) in the south, and a population of mixed Russian–Moldovan–Ukrainian parentage on the eastern bank of the Dniester.

Strengths

Agriculture – notably wine, tobacco, and cotton – and food processing. Light manufacturing.

Weaknesses

Dependent on Russia as source of raw materials and fuel, and main market for exports. Dramatic shrinking of economy since independence. Isolated location; weak transportation network. Slow pace of reform. Cumbersome bureaucracy. Strong black economy. Foreign debt – over 50% of GDP – costs 20% of export earnings to service.

Moldova declared its independence in 1991. Reformist Petru Lucinschi was elected president in 1996 but faced stiff opposition from the increasingly powerful left: the revived CPM won most seats in the 1998 elections. Parliament ended direct presidential elections in 2000, but deadlock ensued over the appointment of Lucinschi's successor, forcing Parliament's dissolution in 2001. The new Parliament, with a big CPM majority, chose CPM leader Vladimir Voronin as president. However, the left's popularity has faltered, with mass discontent over its apparent eagerness to align Moldova with Russia rather than the West.

Transdniestria (on the eastern bank of the river Dniester) and Gagauzia (in the south) declared themselves as republics in 1990. While Gagauzia accepted autonomous status as provided for in the 1994 constitution, Transdniestria still seeks independence.

Moldova has not sought NATO membership, and in 2001 showed interest in joining a Union State with Russia and Belarus. Ties with countries in the Black Sea Economic Zone, including Romania and Ukraine, are being developed. The creation of a free economic zone near the mouth of the Danube is under discussion.

In 1999 plans were announced to cut army personnel by 30%. Military service has been cut from 18 to 12 months. Russian forces were withdrawn from Transdniestria by the end of 2001.

Moldova has few mineral resources. It has to import all its fuel and most of its electricity.

Overuse of agricultural chemicals and pesticides on tobacco farms is a problem, as is soil erosion. There is little spending on environmental improvement.

Moldova's transportation infrastructure is to be part of the planned "Transport Corridor Europe–Caucasus–Asia" (TRACECA).

The centralized health service is poor by regional standards. There are serious shortages of medical supplies.

Education switched from a Soviet to a Romanian (French-inspired) system after 1991. Mass protests met plans in 2002 to make Russian compulsory in schools.

Economic decline has exacerbated crime. The unstable situation in Transdniestria has encouraged smuggling, particularly Russian weapons. The Council of Europe has accused the police of regularly using torture.

Former communist officials have been well placed to benefit from the sale of state-owned businesses. Car ownership is low but rising. However, pensions and wages are often months in arrears. In 1998 the benefits for low-income families and veterans were scrapped. Ethnic Gagauz (Orthodox Christian Turks) are the poorest group.

Few tourists go to Moldova, although some visitors to Romania do combine the two. Hopes for expansion of tourism focus on vineyards and underground wine vault "streets" as the main attractions.

Modern Moldova corresponds roughly to the eastern part of the Romanian principality of Moldavia, which existed for 500 years from 1359. Most of it was annexed by Russia in 1812 as Bessarabia.

• 1918 Bessarabia joins Romania.
• 1924 Moldovan Autonomous Soviet Republic formed within USSR.
• 1940 Romania cedes Bessarabia to Ukrainian and Moldovan SSRs.
• 1941–1945 Bessarabia again under Romanian control.
• 1945 Returns to Soviet control.
• 1990 Declares sovereignty.
• 1991 Independence.
• 1993–1994 Pro-unification parties' election defeat; referendum rejects Romanian unification. Rejoins CIS.
• 1998 Communist revival at general election.
• 2001 CPM wins big majority. Voronin becomes president.
• 2002 Mass protests over education plans.