The Impact of the Global Financial Crisis on Education and Healthcare in the Economies of the Former Soviet Union – the Case of Moldova

This study reviews the impact of the global financial crisis on public service delivery in the Republic of Moldova. It provides a background of the country’s development in the period prior to the crisis (2000 to 2007/2008) and presents the factors which determined the country’s fiscal performance during the crisis (2008-2010). The main aim of the study is to describe the changes in education and health financing and the associated changes in service delivery during the crisis. The presentation of the reforms in the social sector is necessary to set the stage for discussion and is not a primary goal of this study. In particular, the study analyzes the size and dynamics of public financing of education and healthcare and their intra-sector structure, as well as crisis management. It measures the impact the financial crisis had on the quality and reliability of public services and analyzes policy measures undertaken by the government to mitigate crisis’ impact. Conclusions and recommendations derived from the study should enable national policy-makers and international institutions supporting public finance reforms to improve the targeting of limited public resources both between and within individual sectors.