Chisinau, Moldova, September 6, 2024 – Prominent U.S. economist Dan J. Mitchell has released a new report titled “The Case Against Foreign Aid” in Prosperitas (August 2024, Vol XV, Issue I), arguing that foreign aid has failed to promote sustainable development in Moldova. With Moldova on the cusp of presidential and parliamentary elections, Mitchell’s report raises serious concerns about the country’s heavy reliance on foreign assistance, which he claims has entrenched corruption and weak governance rather than fostering progress.
Mitchell’s report comes in the wake of his participation in the International Conference on Human Rights and Press Freedoms, held on June 25 in Chisinau. Hosted by the International Center for the Protection of Human Rights and Democracy (ICPHRD), the conference addressed key issues facing Moldova, including corruption, restricted press freedoms, and the fragility of its democratic institutions. These issues, Mitchell argues, are directly tied to the ineffectiveness of foreign aid.
Over the past three decades, Moldova has received more than $7.8 billion in foreign aid, making it one of the largest per-capita recipients globally. Despite this influx of funds, the country remains one of Europe’s poorest. Mitchell’s report highlights how foreign aid, in the absence of strong conditions, has allowed Moldova’s political elites to avoid meaningful reforms, particularly in the areas of governance and anti-corruption. In contrast, neighboring Romania, which has received less aid, has experienced significantly higher economic growth due to its focus on governance reforms and market-oriented policies.
Mitchell emphasizes the importance of conditionality in foreign aid—ensuring that aid is tied to measurable reforms in areas such as judicial independence, transparency, and economic policy. Without these conditions, foreign aid can perpetuate dependency, giving recipient governments less incentive to implement the reforms necessary for long-term development. Mitchell’s analysis suggests that Moldova’s reliance on aid has contributed to the stagnation of its economy and the persistence of corrupt practices, preventing it from achieving meaningful growth or improving its governance.
The report also contrasts Moldova’s trajectory with Romania’s, showing that despite both countries emerging from similar post-communist conditions in the early 1990s, Romania has managed to significantly outpace Moldova in economic growth. Mitchell attributes this to Romania’s adoption of market-friendly policies and stronger governance frameworks, while Moldova has stagnated due to its dependence on foreign aid that has lacked sufficient conditionality.
As Moldova heads into a critical election period, Mitchell’s report serves as a timely warning that foreign aid must be rethought. The upcoming elections present an opportunity for Moldova’s leadership to shift away from relying on external assistance without reforms and to instead focus on policies that promote self-sufficiency and economic freedom. Mitchell argues that donor nations also bear responsibility for ensuring that future aid packages are tied to clear and enforceable conditions aimed at improving governance, reducing corruption, and fostering a competitive economic environment.
For more information on Dan Mitchell’s report or to access the full publication, please visit
About Dan Mitchell:
Dan Mitchell is an economist specializing in fiscal policy, governance, and international development. He is a co-founder of the Center for Freedom and Prosperity and an advocate for foreign aid reform that focuses on economic freedom and market-driven growth.
About ICPHRD:
The International Center for the Protection of Human Rights and Democracy (ICPHRD) promotes democracy, governance, and the rule of law, with a focus on press freedoms and human rights in Moldova and beyond.
