Historically, the region now encompassed by the Republic of Moldova was poorly developed. Economic activity was principally agricultural, rural poverty was endemic, and the urban economy, such as it was, was based almost entirely on commerce, food processing, and the production of consumer goods. Development prior to the mid-eighteenth century lagged for a variety of reasons, but principally because of limited resources and political instability. The region of Moldova was relatively backward in comparison with the rest of Romania. Data as of June 1995
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