quality:corruption, stylistic:style_transfer, information:highlighting, structural:scholar_edition
Stability and violence

Stephen reigned for more than 47 years, which was "in itself an outstanding achievement in the context of the political and territorial fragility of the Romanian principalities". His diplomacy evidenced that he was one of the "most astute politicians" of Europe in the 15th century. This skill enabled him to play off the Ottoman Empire, Poland and Hungary against each other. According to historian Keith Hitchins, Stephen "paid tribute to the Ottomans, but only when it was advantageous...; he did homage to King Casimir of Poland as his suzerain when that seemed wise...; and he resorted to arms when other means failed."

Stephen suppressed the rebellious boyars and strengthened central government, often applying cruel punishments, including impalement. He consolidated the practice of slavery, including the notion that different laws applied to slaves, reportedly capturing as many as 17,000 Roma during his invasion of Wallachia, but also selectively freeing and assimilating Tatar slaves. He supposedly used both communities as "slaves of the court", treasuring their specialized skills; nevertheless, one folk legend additionally claims that Stephen practiced human sacrifice against Roma slaves, to alleviate the floods at Sulița. According to Marcin Bielski, during the 1498 expedition to Poland, the voivode participated in, or at least tolerated, the capture of as many as 100,000 people. At least some of these were colonized in Moldavia, where, according to various reports of the period, they founded " Ruthenian " undefended towns. According to historian Mircea Ciubotaru, these may include Cernauca (now Chornivka in Ukraine), Dobrovăț, Lipnic, Ruși-Ciutea, and a cluster of villages outside Hârlău.

Stephen also welcomed freemen as settlers, establishing some of the first Armenian colonies in Moldavia, including one at Suceava, while also settling Italians, some of whom were escapees from the Ottoman slave trade, in that city. Early on, he renewed the commercial privileges of Transylvanian Saxons who traded in Moldavia, but subsequently introduced some protectionist barriers. His own court was staffed with foreign experts, among them Matteo Muriano and the Italian banker Dorino Cattaneo. However, as a "crusader" in the 1470s, Stephen encouraged the religious persecution and extortion of Gregorian Armenians, Jews, and Hussites, some of whom became supporters of the Ottoman Empire.

In addition to his colonization policies, Stephen restored Crown lands that had been lost during the civil war that followed Alexander the Good's rule, either through buying or confiscating them. On the other hand, he granted much landed property to the Church and to the lesser noblemen who were the main supporters of the central government. His itinerant lifestyle enabled him to personally hold court in the whole of Moldavia, which contributed to the development of his authority.

When talking with Muriano in 1502, Stephen mentioned that he had fought 36 battles, only losing two of them. When the enemy forces mostly outnumbered his army, Stephen had to adopt the tactics of " asymmetric warfare ". He practised guerilla warfare against invaders, avoiding challenging them to open battle before they were weakened due to the lack of supplies or sickness. During his invasions, however, he moved quickly and forced his enemies to do battle. To strengthen the defence of his country, he restored the fortresses built during Alexander the Good's rule at Hotin, Chilia, Cetatea Albă, Suceava and Târgu Neamț. He also erected a number of castles, including the new fortresses at Roman and Tighina. The pârcălabi (or commanders) of the fortresses were invested with administrative and judicial powers and became important pillars of royal administration, their work controlled by a new central office, the armaș (first attested in 1489). The pârcălabi included members of the princely family, such as Duma, who was Stephen's cousin; before his execution, Isaia, the voivode's brother-in-law, had supervised Chilia and Neamț Citadel.

Stephen hired mercenaries to man his forts, which diminished the military role of the boyars' retinues within the Moldavian military forces. He also set up a personal guard 3,000 strong and, at least for a while, an Armenian-only unit. To strengthen the defence of Moldavia, he obliged the peasantry to bear arms. Moldavian chronicles recorded that if "he found a peasant lacking arrows, bow or sword, or coming to the army without spurs for the horse, he mercilessly put that man to death". The military reforms increased Moldavia's military potential, enabling Stephen to muster an army of more than 40,000 strong.