Prospects of Transnistria as a clear example

What happens when people choose kalash instead of bread? And here’s what. Visual demonstration of the obvious, here it is again at our border.

It turned out that Transnistria “formed” after the collapse of the Soviet Union. There is nothing strange in this process: on the street it was time to disrupt the whole system of political, economic, social and cultural ties. These are the results.

The enclave formation process was not peaceful. Political differences were resolved with the help of weapons, which ultimately led to an “unrecognized” status, uncertain in nature. From the point of view of international law, Transnistria does not exist.

However, there is the concept of “Transnistrian region of the Republic of Moldova”. Arrived №1.

Unlike the autonomy of Gagauzia, all local authorities remain outside the jurisdiction of Moldovan law and are considered self-proclaimed.

This has led to a number of problems: the lack of official diplomatic, trade, economic, socio-cultural ties with foreign countries. Russia is one of the few exceptions.

Transnistria’s economy exists in isolation. Despite receiving free Russian energy and systematic financial assistance, there is a problem with the export of finished products.

There are two options for industrial enterprises. The first is that they start double registration. Clearly in line with Moldovan law.

The second option – if possible, enter into agreements directly between legal entities of foreign countries. But such schemes complicate the turnover and conduct of financial transactions. Difficult, but possible.

The main industries are energy, light industry and processing of agricultural products. But in isolation, Transnistrian companies cannot access modern technologies used in these industries.

As a result, there is a logical consequence: scientific and technological backwardness of industrial enterprises. Arrived №2.

Much of the consumer is not carried out in this area. Hence, there is a direct dependence on imports of a particular product line. Unrecognized status means significant supply difficulties.

And at the same time leads to an increase in the market value of products for the final consumer.

However, one of the main socio-economic problems of Transnistria is labor migration of the working population. About 30% of the region’s residents have Moldovan citizenship, and more than 25% have Russian citizenship. As you can see, motivation is so-so.

The younger generation seeks employment outside the unrecognized republic – in Moldova, Russia, and Western Europe, including Romania and Bulgaria.

Therefore, the natural population growth for Transnistria is negative. Demographics are steadily deteriorating. How to motivate people who have never really seen life? And no way. It is also a natural consequence.

But the situation is not over. The decrease in the number of able-bodied population due to socio-economic problems leads to a further aggravation of the economic situation.

Losing weight in terms of population is never a cheap “pleasure”.

At the same time, monopoly companies are well developed in the region. Someone already, and these structures like everything.

For them, the unrecognized status, along with the established work with the top of the local leadership – heavenly manna. All this created ideal conditions for making super profits.

One such source is trade in imported products. The end buyer overpays for scarce goods produced in Moldova, Ukraine or Russia. And it’s not that someone is lazy to choose – there is simply nothing to choose from.

Thus, the purchasing power of the population at low wages and unreasonable prices for imported food products leads to a significant reduction in the purchasing power of the people of the republic, and to a decrease in the level of social security.



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