So far, the concept of absolute monetary poverty has been used for official poverty assessments in Moldova. Its calculations are based on the conformity of incomes or expenditures of the population to the established minimum means of subsistence (poverty line adopted at the national level). According to the latest estimates, one third of the country’s population lives below the poverty line.
This approach is used in the USA, Canada, Italy, Turkey and a number of other countries. But most EU countries have adopted the concept of multidimensional measurement, which takes into account the overall level of human well-being. It is linked to the availability and quality of health care, education, public utilities and other services. Therefore, countries are developing their national system of comprehensive indicators of well-being, which would allow to adequately assess the level and quality of life.
Since 2016, Moldova has also joined this process. The same criteria used in the EU countries are chosen to assess material deprivation. Material goods such as a washing machine, a color TV or a telephone will no longer be indicators of a person’s wealth. Multidimensional poverty in Moldova will be measured based on 11 criteria (using the Alkire-Foster method), among which are health, education, living conditions and employment. In 2022, the NBS carried out the first experimental calculations.
According to Oleg Cara, Director General of the NBS, in 2025 the Multidimensional Poverty Index will be published for the first time as an official statistical indicator comparable at national, regional and international levels.
“Multidimensional poverty covers many aspects of the population’s life that cannot be measured by value-based indicators. The use of the deprivation method in measuring poverty will allow us to better understand the prevalence and complexity of this phenomenon and develop appropriate approaches to overcoming it,” explained Oleg Kara. – The list of deprivations was developed based on the study of international experience and taking into account the national specifics, numerous consultations were held to select the criteria”.
