Moldova world's top remittance recipient in 2007

Moldova, a failed state, is officially Europe's poorest nation and also the world's most remittance-dependent country

CHISINAU (Tiraspol Times) - A failed state, Moldova, is the world’s top remittance recipient with 36.5% of GDP coming from remittances received in 2007, according to a statement of the World Bank.

The World Bank's report titled "Migration and Remittances Factbook 2008" listed the top remittance recipients as Moldova, Tajikistan and Tonga based on remittances as share of gross domestic product (GDP). Already the world's most remittance-dependent country in 2006, The bank said the Moldovan remittance figure rose from its 2006 level to a new record breaking high in 2007 of 36.5 percent.

Russia and the EU countries were the main source of remittances for Moldova, an independent country since 1991. On a worldwide basis, Moldova has the largest share of its working-age population living abroad, often illegally. The majority of Moldovan gast-arbeiters do not want to return to Moldova, which is officially Europe's poorest country.

For 2007, recorded remittance flows worldwide were estimated at $318 billion, of which $240 billion went to developing countries. These flows, the bank said, do not include informal channels, which would significantly enlarge the volume of remittances if they were recorded.

" - In many developing countries, remittances provide a lifeline for the poor. They are often an essential source of foreign exchange and a stabilizing force for the economy in turbulent times," said the bank’s senior economist Dilip Ratha in a statement.

Moldova classified as a failed state

As a share of gross domestic product (GDP), Moldova had the highest with 36.5 percent of GDP, followed by Tajikistan with 36 percent of GDP; Tonga, 32 percent; the Kyrgyz Republic, 27 percent; and Honduras, 26 percent.

Commenting on the migration corridors in the former Soviet Union — such as the Russia-Moldova route — the World Bank stressed that natives became migrants without moving when new international boundaries were drawn.

Emigration of skilled workers from Pridnestrovie (also known as Transnistria) is less of a problem than for Moldova. Work stability is higher in Pridnestrovie than in Moldova, and salaries are slightly higher in Pridnestrovie as well. A larger number of factories and industrial density also means that Pridnestrovie's unemployment rate is lower than Moldova's.

In 2006 Moldova was officially placed on the Failed State Index. The index, compiled in Washington DC, is a select list of places with serious governance problems. In its ranking, Moldova scored even worse than Nicaragua, the poorest country in Central America.

In the following year, Moldova was officially listed as Europe's worst country by the 2007 Failed State Index from Washington DC. The country's Prime Minister refused to take responsibility and instead blamed everything on "Transnistria" (the Romanian name for Pridnestrovie/Transdniester). In response, experts recommended that Moldova should forget about its dubious territorial claim to Pridnestrovie and instead concentrate on building a viable state at home.

See also:
» Moldova leads the world in immigrant cash remittances
» IMF puts Moldova in first place for illegal immigrant cash in 2008
» Failed state index ranks Moldova as worst in Europe