IBC Presents Research of Economic Development Strategies in Moldova
OREANDA-NEWS. December 17, 2013. In the "Analytical materials" section IBC published desk research of economic development strategies in Moldova, conducted by the IBC project.
For the sustainable development of the Republic of Moldova, the government, with the support of international donors, developed an Economic Growth Program and Poverty Reduction Strategy for 2004-2007.
Private sector development was the priority of the strategy. Implementation of the strategy had a positive effect on economic growth: the ratio of external debt to GDP fell from 133% in 2000 to 74% in 2006. Meanwhile, some measures required substantial financial investment and were not implemented.
Experience in the implementation of the national strategic documents showed that a large number of priorities, not clearly identified and with limited financial support, had unsatisfactory results. National Development Strategy (NDS) for 2008-2011 included a SWOT-analysis which revealed problems that had a negative impact on the investment climate in the country. The NDS identified major goals – improvement of education, roads, access to finance, and business climate.
Role of the private sector
The Government invited the private sector (particularly business associations) to make suggestions to be included into the Action Plan. The document incorporated the recommendations formulated in the surveys conducted by major business associations and multinational consulting companies (for example, White Book prepared by Foreign Investors Association). Additionally, representatives of business associations participated in the monitoring of the strategy’s implementation. Annual updates of the FIA’s White Book were used to adjust the Action Plan. Individual businesses and every citizen could submit their proposals on-line.
The National Development Strategy of Moldova until 2020 was adopted by the Parliament in November 2012. This strategy declared the following long-term objectives: adjusting the educational system to labor market needs; increasing public investment in the national and local road infrastructure; reducing financial costs by increasing competition in the financial sector and developing risk management tools; improving the business climate; reducing energy consumption; ensuring financial sustainability of the pension system; and increasing the efficiency of the judiciary system and fighting corruption.