Once independence was attained, Republic of Moldova has made efforts to eliminate the command economy and move to new market-like structures.

Despite recent economic difficulties, Moldova has made substantial progress in economic reform. The government has been able to liberalize most prices and has phased out subsidies on most consumer goods. The privatization process started in March 1993. Since then most of the housing units and thousands enterprises have been privatized even though the program itself had many drawbacks. The magazine "The Economist" commented on the economic situation in Moldova in its March 1995 issue, "Moldova is the model of right reformism - it has firmly intended to take the road of revival after the economic crisis…The Government, which possesses the reputation of reformer, as well as compact territory (which make the country a perfect laboratory for reforms), all this deserves positive appraisal and support". The main problem today is the very little energy resources and thus the dependence to other countries rich in fuel and other energy resources as Russia, Ukraine, and Romania.

 Historically, Moldova was always renown with its land products such as: tobacco, wheat, fruits and vegetables, wine, honey, cattle etc. Most of agricultural raw materials were widely exported, and first of all to Russia. Food industry comprised 90% of all industrial production. Only in 60' - 70' of XX century has been developed the machine building, electrical, chemical and construction industries.

 After the collapse of the Soviet Union the inflation led to increasing prices to the energy resources and to the imported products comparing to the agricultural and food products law prices. Thus grew the international debt and the GDP is still decreasing.

 Industry

 Moldova's economic nucleus is agribusiness (agriculture and food industry), representing 50-55% of gross domestic product (GDP). In this branch are engaged 2/3 of industrial labor force and agribusiness products represent the main part of exports. Before the breakup of the Soviet Union, Moldova rated sixth in food production among the 15 former republics. This industrial area attracted many countries and was one of the reasons to conquer Moldova during its history.

Other important branches are: tobacco products manufacturing, light industry, machine building industry, wood industry, construction materials industry. During the transit years has grown the importance of service sector in GDP, from 17 % in 1991 to 40 % in 1999.

 Agriculture and food industry

Agriculture on this territory was practiced 5000 years BC. The ideal natural environment with fertile soil, favorable climate, rich rivers etc. made premises to develop this industry till today. Food and drink products represent main export articles that contribute with 2/3 of the total export.

By the territory agriculturally cultivated (53%) Republic of Moldova is on the third place after Denmark (61%) and Hungary (57%).

Moldova's mild climate is ideal for growing wheat, corn, barley, tobacco, sugar beets, and soybeans as well as all different kinds of fruits and vegetables. Moldova is one of the few European regions with traditional tobacco cultivation. This industry provides raw materials to most cigarette-making plants of CIS and Eastern Europe. Fruits represent the raw material for the concentrated juice and canned products that are widely exported.

Livestock, beef and dairy cattle mainly, are raised in abundance in Moldova. Livestock revenue comprises 1/3 of the whole agricultural industry. This is one of the oldest industries on this land. After the collapse of Soviet Union the livestock decreased because of economical decrease. The main livestock types are cattle, pigs, sheep and goats, fowls. The density of animals grows considerable from the south to the north. Some other breed animals are horse (old tradition), bees, rabbits, silk warms, fish.

Viticulture and wine industry

 Numerous vineyards in the southern regions of the country produce high-class wines, which are popular worldwide. The country also produces liquors and champagne. Viticulture is one of the main agricultural branches and the most efficient one. This branch had as the country history many ups and downs but it always remained one of the most popular and favorable occupations. Viticulture is mostly developed in the hilly center and sunny south and its products represent main export articles. Moldova cultivates all types of European grapes. The winemaking industry has 100 enterprises and almost each household in villages is making its own home wine.

 Moldova was one of the Soviet Union's leading wine producers. Nearly a third of all the wine consumed in the former Soviet Union came from Moldova. Moldova's winemaking industry produces more than 130 brands of wine, brandy, and champagne. Moldovan wines and brandy have been awarded more than 250 medals at international competitions.

The labels on bottles of Moldovan wine and brandy usually bear a white stork in flight with a bunch of grapes in its beak. This is the symbol of Moldova. According to an old legend, long time ago enemies besieged a Moldovan fortress. Although the defenders fought bravely, they ran out of water.

It seemed as though their end had come, and the enemies were already celebrating their victory. But just at that moment a multitude of wings created a gust of wind, which forced the enemies to bend down to the ground. Hundred of storks were flying towards the fortress. In their beaks they carried bunches of grapes, which were dropped to the defenders. Their thirst was quenched and their spirits soared. The defenders forced the enemies into retreat. Ever since the white winged stork has symbolized happiness and well-being. Like a mother and her child, the Moldovans and their grapes have been inseparable for ages. The vine is the most ancient inhabitant of this land.