​Maryland Small Ruminant Page

As much as we Americans value our system of free enterprise, we must remember that we've had well over two hundred years to perfect our system. For countries with no history of free enterprise, it is a difficult transition for even the most enterprising people to make. In many cases, people must be content knowing that it is future generations that will have a better life.
 

My trip was hosted by the Citizens Network for Foreign Affairs (CNFA), a Washington DC-based, non-profit organization that carries out economic development activities in emerging economies in Southern Africa and various countries of the former Soviet Union.

I was a participant in CNFA's agribusiness program. CNFA's partner was Orhei Vit, a medium-sized cannery in Central Moldova, about an hour's drive from the capital city of Chisinau. My job was to teach basic farm management principles to farmers and agricultural leaders in the three villages where collection points for the cannery are located. I also met with representatives of the local Savings and Credit Associations of Citizens.

Moldova

The Republic of Moldova gained its independence in 1991, following the collapse and break-up of the Soviet Union. Moldova is a small land-locked country, situated between Romania and the Ukraine. There is break-away republic in its Dniestra region along the Ukrainian border, where Russian troops and a Soviet-era arsenal remain. Turkish Christians lay claim to another section of land in Southern Moldova.

Moldova’s population of about 4.6 million people consists mostly of ethnic Moldovans (Romanians), with large minorities of Ukrainian and Russian. Romanian (Moldovan) is the national language, though Russian is widely spoken. In fact, most people are bilingual. Even a little bit of French is spoken, a result of a sister-city connection to France. During the Soviet era, Moldovans were forced to use the Cyrillic (Russian) alphabet for their language. Moldova has a complicated history of foreign domination and didn't exist in its current form until after the second world war. During the war, Moldova was allied with the Nazis and did not suffer as much destruction as the Soviet Union.

The economy

Moldova is one of the poorest countries in Europe. It has few natural resources upon which to build a modern economy. It is an agrarian country, with more than 35 percent of its population engaged in agricultural production and agriculture accounting for more than 40 percent of its gross national product.
 

Moldova is best known for vineyards and wine-making. Per capita wine consumption is among the highest in the world. Other major crops include grain, sugar beets, sunflower, tobacco and a wide variety of fruits and vegetables. Like its neighbor (the Ukraine), Moldova boasts good "Chernozem" black soils, which under proper management and fertilization can produce high yields. However, during the past ten years little fertilizer has been applied and yields have declined significantly.
 

Moldovan agriculture was forcibly collectivized by the Stalin regime beginning in the late 1940's. Many landowners who foresaw the changes fled to Romania. As in other Soviet republics, those resisting collectivization were killed or sent to Siberia or Central Asia. Most farmers had no choice but to go along with the changes.
 

Collective farms (Rus. kolkhoz) were "cooperatively" operated by the people. In contrast to state farms, those working on collective farms had a house and small plots of land on which they could grow crops and keep livestock or poultry. The collective farm system provided everything a family needed: housing, schools, stores and recreation. However, it was forbidden to publicly worship in a Communist regime. Churches were closed. Families practiced their faith and celebrated religious holidays behind closed doors.

Moldova was the first country in Eastern Europe to complete land privatization. Instead of returning land to its original owners (or heirs) as was done in some countries, land in Moldova was distributed to people based on their position and tenure on the collective farm. Most people received small, non-contiguous parcels of land, usually less than two hectares (1 hectare equals 2.5 acres) – a little bit of orchard, a little bit of vineyard, a little bit of crop land, etc. Joint stock companies, cooperatives, limited liability companies and farmer associations also make up the agricultural sector. Pasture land remains under state control.

Collective farm facilities were also divided on shares. People received shares of a building or equipment. Unfortunately, most of the collective farm facilities were destroyed in the privatization process, as people removed their portions of the facilities in the form of a window, a door, etc.

Today, life in the collective farm villages is difficult by western standards. While electricity and telephones are common place, there is no indoor plumbing. Outhouses (without seats) are still widely used. Villagers must get their water from wells. Most villagers do not have cars and must rely on horses and wagons for transportation.

While major roads are good, the quality of roads in the countryside is dismal. Many are not paved and the paved roads are in dire need of repair. There is a constant need to dodge potholes and large sections of missing asphalt. Many of the stores in the collective or state farm villages are vacant. New businesses struggle for survival. Hospitals have been closed and consolidated. Schools lack resources. Churches have re-opened.

Many rural Moldovans are nostalgic for the "old" days, when food and energy were ample and salaries and pensions were paid on time. Checks are often delayed for months. Today, ten years after independence many Moldovans struggle to put food on the table. They often cannot afford to heat their homes in the winter. Pensioners are particularly hard hit because currency devaluation has significantly reduced their retirement incomes. Pensioners are oftentimes paid in wheat flour instead of money.

Due to the difficult times and perceived lack of hope, many Moldovans out of desperation restored the Communists to power in 2001. The new Communist leaders have hopes of restoring some of their old policies, but this could prove difficult.  Moldova must find place in the new global economy. The Communists seek closer ties with Belarus and Russia and are unlikely to privatize the wine, tobacco and energy industries. They "bought" votes in the rural areas, but have yet to show that they can improve the lives of people in the villages.

Unfortunately, rural Moldovans are longing for a life that can no longer exist. The communist system had bankrupted itself and change was inevitable. Unfortunately, the transition from a centrally-planned socialist economy to a modern, market-driven economy is a long and difficult journey. The return to a communist regime will probably only serve to delay an already difficult process.

 

Agriculture

The agricultural sector of Moldova faces many difficult challenges in the new economy. Most of the private farms are small subsistence land holdings, with most, if not all of the production being consumed by the family. The output from the agricultural sector has declined significantly since 1991. Privatization made farmers out of everyone in the village. There are approximately one million new land owners in Moldova, but lack of initiative, financial resources, and alcohol problems has resulted in many of the private land holdings being ignored and unable to produce a crop. At the same time, people remain reluctant to rent their land to more progressive land owners. Land is inexpensive to buy, but without an established land market and so many land owners to negotiate with, it is difficult buy a economically-viable quantity of land.

 

One of the most limiting factors in the agricultural sector is lack of long-term and affordable credit. Short-term operating loans are available through local Savings and Credit