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'The poverty of individuals and households in Moldova have mirrored the causes of the overall slowdown in the economy. Many enterprises found that the post-Soviet economic structure resulted in a vast increase in the ratio of their input prices to the market price of their output.' Moldova is having an arduous transition from being a centrally-planned economy to one that is guided by market signals. This and the regional crisis in 1998 have exacerbated poverty and inequality levels in Moldova. This report provides a detailed analysis of the situation regarding living standards in the country and provides a framework for policy for the Government's emerging social assistance program. It examines the composition and distribution of poverty in Moldova, how income and price shocks have affected the lives of the poor, and the role of the Moldovan state in easing poverty. It concentrates on analyzing the results for the Right Bank of Moldova, so that any references to Moldova imply the Right Bank. The report will interest members of the Moldovan government, Bank staff, and anyone studying Eastern Europe in general and Moldova in particular.