🇲🇩 Case 1: The Moldovan Case

It is estimated that between 25 and 40 per cent of economically active Moldovans have migrated or are currently engaged in migration. Of the people migrating for work, women accounted for almost 40 per cent as of 2014. As per the UNECE (2011), one factor leading to the feminization of labour migration from Moldova is the persistent gender pay gap in the country (25.6 per cent in 2011), which provides incentive for women to seek employment abroad. The other factors are the relatively low inclusion of women in the labour market and gender-based violence. On average women migrants tend to be engaged in longer-term emigration while men are more likely to be involved in short-term labour migration. The main countries of destination for migrant women from Moldova are Italy, Greece, Israel and Turkey, with 43 per cent working in the domestic sector and 59 per cent engaging in unskilled work. A large proportion of migrant women from Moldova are over 30, as younger women commonly remain in Moldova to act as primary carers for children. However, youth migration is increasing due to political and economic instability as well as social grievances.

The high rate of emigration is coupled with a rise in remittance flows which have increased seven-fold in the last 20 years. By 2015, remittance flows reached 1.533 billion $US, representing 23 per cent of the Gross Domestic Product (GDP). These remittance flows made up a full 15 per cent of the country’s GDP in 2020, making Moldova the most remittance-reliant country in Europe. Many people left behind in Moldova depend on the remittances. In terms of remitting behaviour, there are substantial differences between male and female migrants. Less than 20 per cent of both men and women use banks to send remittances, and around 45 per cent send remittances through service providers like Western Union. Women thus rely on the services of couriers, as well as friends and relatives more often than men when transferring remittances.

But for many who live in remote areas, accessing these remittance transfers is not easy. Most of the formal access points are concentrated in big cities, and those who live and work in the countryside – especially those involved in agriculture – often cannot afford to take enough time off work to access them. In light of these challenges, IFAD’s Near East, North Africa and Europe (NEN) Division and its Financing Facility for Remittances, in partnership with Moldova’s National Commission for Financial Markets, have begun a project designed to strengthen the country’s Savings and Credit Associations (SCAs) so that they can manage remittance transfers. For over 20 years, SCAs have been Moldova’s main network of local grassroots financial service providers. They are well distributed throughout the country, and in some rural areas, they are the only financial service providers available. Because of their long history and localized nature, SCAs are considered trustworthy. Channelling remittances through localized financial institutions like the SCAs can offer services tailored to the specific rural populations they serve, will inspire participants to save some of the money they receive and use it for income-generating activities and longer-term investments. Linking remittances with affordable financial services in this way should allow development activities in the area to reach an even greater potential.

In Moldova, the financial resources sent by migrant women comprise a significant portion of the capital utilized for the economic development of families. The funds sent by women are invested in the education of children, housing, repayment of debts, entrepreneurial activities and upkeep of property. The money sent by migrants not only increases the funds available for consumption by families, but it also has the effect of contributing to the investment processes and fostering development in Moldova. Essentially, the growth capital within families has led to the growth of lending activities by Moldovan banks, which has had a positive impact on entrepreneurship and business development.