cbi report on strengthening moldova's economic diplomacy
TRANSCRIPT
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ECONOMIC DIPLOMACY
IN THE REPUBLIC OF MOLDOVA:
“GETTING THERE TOGETHER”
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An analysis of the nature of Economic Diplomacy in Moldovan context,
describing the concept and its environment, stakeholders and activities, as well
as strengths and weaknesses, followed by conclusions and recommendations for
achieving greater overall effectiveness in Moldova’s Economic Diplomacy
Programme Manager: Reinoud Nuijten
Contributors: Ciprian Nanu and Pieter Jan Wolthers
CBI
The Hague, the Netherlands
1 February 2016
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SUMMARY
As part of the ongoing Moldovan-Dutch bilateral cooperation, the Deputy Minister for Economic
Diplomacy at the Ministry of Foreign Affairs and European Integration of the Republic of Moldova requested
the Dutch CBI to look into possibilities for strengthening Moldova’s Economic Diplomacy capabilities and
formulate relevant recommendations.
In response to this request, the present report is submitted. It addresses three main questions:
(1) What does Economic Diplomacy mean in the Moldovan context?;
(2) Who play a role in Moldova’s Economic Diplomacy: which ministries, agencies, institutions
and/or organizations are involved in planning, implementing, and interacting in Economic
Diplomacy? and
(3) How is Moldova’s Economic Diplomacy currently organized, how is it carried out in practice, and
how could its effectiveness be improved?
Towards the end of the report, the reader is taken through a number of conclusions that are, at the same
time, the CBI’s recommendations for strengthening Moldova’s effectiveness in Economic Diplomacy. The core
message of the report is that Economic Diplomacy is of vital importance for Moldova, particularly as the country
is now committed to European integration. Government, business, and other stakeholders, both public and
private, should organize themselves accordingly. To avoid squandering scarce resources on duplication of work
or on unproductive competition between stakeholders, and, instead, to benefit from the synergy and economies
of scale that only united efforts can yield, the CBI advocates the introduction of a robust mechanism for
cooperation and coordination of work in trade and investment promotion. Besides the natural coordinating role
of the Prime Minister’s Office, the principal part to play in Economic Diplomacy should be reserved for the
Ministry of Foreign Affairs and European Integration, however, always in close cooperation and coordination
with the Ministry of Economy (and, of course, the Prime Minister’s Office). Embassies and Consulates are
crucial actors in Economic Diplomacy, but they cannot do it alone. There is the need for a well-resourced
Agency for Trade and Investment Promotion, which assists government and business in implementing the
established national economic priorities, manages the relevant data bases to provide reliable and up-to-date
information to all who need it, and that works side-by-side with the business community in promoting and
grasping trade and investment opportunities.
In its analytical part, the report inter alia introduces some Dutch approaches to cooperation,
coordination and integration in Economic Diplomacy, including the concept of ‘top sectors policy’, which is part
of the Dutch Export Strategy as a means of focusing the activities from government, business and knowledge
institutions to jointly defined, national priority objectives in trade and investments. Obviously, such examples
from the Netherlands are not being presented here for purposes of being copied lock, stock and barrel by the
Moldovan government and other stakeholders; however, the CBI hopes that such examples are useful for
Moldova to draw inspiration from.
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TABLE OF CONTENTS
SUMMARY ......................................................................................................................................................................... 3
TABLE OF CONTENTS .......................................................................................................................................................... 4
PREFACE ............................................................................................................................................................................ 6
I. INTRODUCTION...................................................................................................................................................... 7
1.1 The origin of the project ............................................................................................................................. 7
1.2 Methodology for the project’s implementation .......................................................................................... 7
1.3 The report and its follow-up ....................................................................................................................... 8
II. ECONOMIC DIPLOMACY ....................................................................................................................................... 10
2.1 The concept of Economic Diplomacy ........................................................................................................ 10
2.2 The business enabling environment ......................................................................................................... 12
III. THE EU AND OTHERS IN SUPPORT OF MOLDOVA’S ECONOMIC DIPLOMACY ........................................................ 15
3.1 The Association Agreement between the EU and Moldova ...................................................................... 15
3.2 Other contributions in support of reforms in Moldova ............................................................................. 16
3.3 “Briefing Book” written by Moldova’s Development Partners .................................................................. 17
3.4 Analyses, recommendations, and the need for implementation ............................................................... 18
IV. MOLDOVA’S MAIN STAKEHOLDERS IN ECONOMIC DIPLOMACY ........................................................................... 19
4.1 The Ministry of Foreign Affairs and European Integration ........................................................................ 19
4.2 The Ministry of Economy and other Ministries ......................................................................................... 19
4.3 The Prime Minister’s Office and the Investment Attraction Team ............................................................ 20
4.4 The agencies MIEPO and ODIMM ............................................................................................................. 21
4.5 Non-governmental entities: Chambers, EBA, AmCham, and FIA ............................................................... 23
4.6 Coordination between stakeholders in Economic Diplomacy .................................................................... 24
V. DUTCH EXPERIENCE IN COORDINATING/INTEGRATING FOR PURPOSES OF ECONOMIC DIPLOMACY: THE INTER-
MINISTERIAL CONCORDAT ................................................................................................................................... 26
5.1 Economic policy coordination and integration in the Netherlands ............................................................ 26
5.2 The ‘Concordat’ between the Ministry of Foreign Affairs and the Ministry of Economic Affairs of the
Netherlands ............................................................................................................................................. 26
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5.3 The contents of the Dutch Inter-Ministerial Concordat ............................................................................. 27
VI. SETTING PRIORITIES FOR MOLDOVA’S ECONOMIC DIPLOMACY ........................................................................... 29
6.1 Setting national priorities in Economic Diplomacy .................................................................................... 29
6.2 The Dutch ‘top sectors policy’ as an example for setting national priorities in Economic Diplomacy ......... 30
6.3 The need for an effective Information and Communication Strategy ........................................................ 31
VII. IMPLEMENTING THE PRIORITIES FOR ECONOMIC DIPLOMACY ............................................................................. 33
7.1 Internal organization at the Ministry of Foreign Affairs and European Integration for purposes of
Economic Diplomacy ................................................................................................................................ 33
7.2 Economic Diplomacy activities by Moldova’s Missions abroad ................................................................. 34
7.3 Tools and techniques for Economic Diplomacy ......................................................................................... 35
VIII. CONCLUSIONS AND RECOMMENDATIONS ........................................................................................................... 38
8.1 Internal conditions: improvement of the business environment .............................................................. 38
8.2 External conditions: don’t put all eggs in one (EU) basket ........................................................................ 38
8.3 A robust institutional coordination mechanism is needed ........................................................................ 39
8.4 Definition of national priorities for trade and investment ........................................................................ 39
8.5 Qui trop embrasse, mal étreint ................................................................................................................ 40
8.6 Cooperation and coordination between stakeholders .............................................................................. 40
8.7 Moldova’s Agency for Trade & Investment Promotion ............................................................................. 41
8.8 The structure of the Ministry of Foreign Affairs and European Integration for purposes of Economic
Diplomacy should be strengthened .......................................................................................................... 41
8.9 Concentration of Economic Diplomacy activities at the MFAEI ................................................................. 42
8.10 The crucial importance of information and communication ..................................................................... 42
8.11 A comprehensive information database ................................................................................................... 43
8.12 Funding .................................................................................................................................................... 43
IX. TO FINISH ............................................................................................................................................................. 45
9.1 CBI’s readiness to assist in the follow-up to be given to this report .......................................................... 45
LIST OF ABBREVIATIONS .................................................................................................................................................. 46
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PREFACE
Trade and investments are of vital importance for the Republic of Moldova – as, incidentally, they are
for the Kingdom of the Netherlands. Hence, also Economic Diplomacy is of critical importance as the tool par
excellence for promoting trade and investments.
When in the course of 2015, in the framework of the long-standing cooperation between our two
countries, the Vice-Minister for Economic Diplomacy at Moldova’s Ministry of Foreign Affairs and European
Integration approached the management of the CBI, part of the Netherlands Ministry of Foreign Affairs, with a
request for assistance in strengthening Moldova’s institutional capacity for attracting foreign investments and
increasing the country’s exports, the Dutch side thus felt no hesitations to respond positively to the Moldovan
request.
The result of the CBI’s work now lies in front of the reader in the shape of an analytical report from
which a number of concrete and practical recommendations emerge how to strengthen Moldova’s institutional
capacity in Economic Diplomacy. Obviously, the CBI management hopes that its recommendations will be
accepted by the Moldovan side, not only as interesting thoughts, but also as incentives for result-oriented steps
that can and should be put in practice without delay.
In the mid of the 17th
century, the French duke François de la Rochefoucauld noted already: “We may
give advice, but we cannot inspire the conduct”. And indeed, roads leading to ambitious goals are often paved
with excuses that can be used for postponing action: the times are difficult, the challenges numerous, and the
resources scarce. However, in this particular case of improving Economic Diplomacy capabilities, nothing is
gained from procrastination. On the contrary, the CBI management wishes to submit that the actual introduction
of concrete improvements in Moldova’s Economic Diplomacy endeavours deserves high priority attention of
Moldova’s authorities and other stakeholders, because such steps are critically important in the present political
and economic situation in Moldova, and they should be seen as durable investments in the country’s future.
The CBI Management like to seize this opportunity to re-assure the Ministry of Foreign Affairs and
European Integration of the Republic of Moldova of its continuing advisory support, when and where needed.
Reinoud Nuijten
Programme Manager CBI
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I. INTRODUCTION
1.1 The origin of the project
In 2015, the Ministry of Foreign Affairs and European Integration (MFAEI) of the Republic of
Moldova, making reference to its responsibilities in the area of Economic Diplomacy, addressed itself to the
CBI, which is part of the Netherlands Enterprise Agency and commissioned by the Ministry of Foreign Affairs
of the Netherlands1. In a letter to CBI’s Director, Mr Max Timmerman, in which reference was made to Master
Class Trainings for Moldovan Commercial Attaches that were held in Brussels in November 2014 and to other
appreciated activities organized by the Dutch side, the Deputy Minister of MFAEI for Economic Diplomacy, Mr
Tudor Ulianovschi, kindly requested the continuation of the cooperation for the purpose of contributing to
sustainable economic development in the Republic of Moldova, notably through CBI’s assistance in
strengthening the institutional capacity for Moldova’s Economic Diplomacy. The CBI management decided to
respond positively to this request. Subsequently, relevant Terms of Reference were drawn up.
1.2 Methodology for the project’s implementation
As a first step in the implementation of further Dutch-Moldovan cooperation in the field of Economic
Diplomacy, the CBI management dispatched a fact-finding mission to Chișinǎu, led by Mr Reinoud Nuijten,
Programme Manager at the CBI. The mission further consisted of Mr Pieter Jan Wolthers, former Ambassador
Extraordinary and Plenipotentiary of the Kingdom of the Netherlands to the Republic of Moldova (2010-2013),
and Mr Ciprian Nanu, partner of the Bucharest-based Business Development Group (BDG), a private
consultancy with a large experience in trade and investment promotion in the region of Central and Eastern
Europe.
During its visit to Chișinǎu, in the last week of June 2015, the CBI fact-finding mission met with a
number of prominent stakeholders in Economic Diplomacy on the side of the central government of Moldova,
amongst them representatives of the Ministry of Foreign Affairs and European Integration, the Ministry of
Economy, and the Prime Minister’s Office.
1 The acronym CBI stands for ‘Centrum tot Bevordering van de Import uit ontwikkelingslanden’ (in English: Centre for the
Promotion of Imports from developing countries), a name that properly reflects the original mandate of the CBI at the time of
its establishment by the Netherlands Ministry of Foreign Affairs, in 1971; subsequently, CBI’s mission has been broadened
into contributing to sustainable economic development by strengthening both the competitive capacity of exporters and
producers, as well as the support infrastructure. Since its establishment, CBI provides services to governments, support
organisations, and more than 700 SMEs a year in more than 60 countries, in over 30 sectors and subsectors.
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In addition, the mission met with the management of the Moldovan Investment and Export Promotion
Organization, and the Organization for the Development of Small and Medium Enterprises. Meetings took also
place, amongst others, with participation of representatives of the European Union Delegation in Chișinǎu, and
of the World Bank and the International Finance Corporation in Moldova, as well as with the European Business
Association and the Foreign Investors Association.
1.3 The report and its follow-up
The report that now lies in front of the reader is based, essentially, on a combination of (electronic)
research and interviews with representatives of major stakeholders in Moldova’s Economic Diplomacy, as well
as further consultations with the Moldovan Ministry of Foreign Affairs and European Integration.
Three main questions are addressed in this report:
(1) What does Economic Diplomacy mean in the Moldovan context, and what makes up the country’s
environment for Economic Diplomacy?
(2) Who play a role in Moldova’s Economic Diplomacy: which ministries, agencies, institutions
and/or organizations are involved in planning, implementing and interacting in Economic
Diplomacy?
(3) How is Moldova’s Economic Diplomacy currently organized, and how is it carried out in practice,
and how could its effectiveness be improved?
Against the background of Moldova’s ongoing process of association to the European Union, the report
identifies a number of areas that are of particular interest from a point of view of promoting international trade
and investment. It analyses the manner in which the Moldovan Authorities currently provide focus and guidance
to entrepreneurs in relevant sectors, and it underlines the special importance of information and communication
for those involved in Economic Diplomacy. The report continues with an analysis of the present ‘toolbox’ for
Moldova’s Economic Diplomacy, as seen by the mission’s interlocutors, coming from different professional and
institutional backgrounds.
Based on its extensive experience in strengthening institutional arrangements for investment and export
promotion in other countries, the CBI considers of critical importance the readiness of relevant ministries,
institutions and agencies to engage in mutual efforts to intensify and improve the cooperation between them. In
this context, the CBI report briefly describes current practices in the Netherlands, which are an example of a high
degree of integration of structures and endeavours for purposes of Dutch Economic Diplomacy. A similar
approach, adapted to the local realities, might also be helpful to Moldova in raising its effectiveness in the field
of Economic Diplomacy.
In this context, it is encouraging to note that all the CBI mission’s interlocutors in Chișinǎu
spontaneously stressed the importance of a coordinated approach, and that all those who were interviewed stated
their willingness to contribute their respective share in working towards this common goal.
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Bearing these positive statements in mind, the CBI is convinced that a fundamental precondition for
Moldova’s success in Economic Diplomacy is already in place. As always, however, ‘the proof of the pudding is
in the eating’, and here the CBI believes that considerable efforts will still be needed in order to turn the
welcome proffering of principled readiness to cooperate into a reality of actual, fruitful cooperation in the day-
to-day practice.
The report finishes with conclusions and concrete and practical recommendations. The conclusions
summarize the core of the CBI mission’s findings, and they provide the underpinning for the resulting
recommendations for introducing a number of practical measures with the aim of increasing the effectiveness of
the existing instruments for Economic Diplomacy.
These recommendations are put forward with due regard for the financial constraints under which the
Republic of Moldova is currently labouring. With regard to financial aspects, it should be noted that not all
measures that the report proposes require large funding; some can be implemented at no costs, others for only
limited amounts of money, but some, indeed, would require the necessary funding. In this context it is
emphasized, however, that, as a matter of principle, costs for Economic Diplomacy should not be seen primarily
in terms of expenditure; on the contrary, costs for Economic Diplomacy ought to be considered a durable
investment into the future of Moldova.
It is a well-known fact that Moldova has been faced over time with extraordinary challenges but also
opportunities in Economic Diplomacy. Numerous institutions have conducted research into improving the
country’s capabilities in this field, often driven by increasing competition on international markets for the
attraction of Foreign Direct Investments; equally numerous have been the strategy documents that were issued as
the results from such research. Reports ordered by the Moldovan government usually did not dwell extensively
on public-private partnerships, nor did they devote much attention to the validation of strategies. Moreover, not
too many documents went into formulating recommendations for concrete follow-up activities to be
implemented after the report had been submitted. Understandably, therefore, the Ministry of Foreign Affairs and
European Integration of the Republic of Moldova, that commissioned this report, requested the CBI team to be
as concrete as possible in its recommendations for follow-up activities to strengthen Moldova’s institutional
capabilities for Economic Diplomacy.
With the practical recommendations presented in this report the CBI Management trusts to have
satisfied the Ministry’s request. At the same time, the CBI Management likes to avail itself of this opportunity to
reiterate its readiness, if so desired, to continue the cooperation with the Ministry of Foreign Affairs and
European Integration of the Republic of Moldova, by expanding on these recommendations or by undertaking
other tasks, as may be agreed.
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II. ECONOMIC DIPLOMACY
2.1 The concept of Economic Diplomacy
In recent years, the words ‘Economic Diplomacy’ are ever more frequently used, but a generally
accepted definition of what exactly the concept means is still outstanding. However, even a quick glance through
literature on the subject makes clear that there is widespread agreement about many of Economic Diplomacy’s
main components, both with regard to its substance and its main actors.
As to its substance, there is no doubt that Economic Diplomacy is part and parcel of (general)
diplomacy. States entertain relations with other states as well as with international organizations, and within
these bilateral and multilateral diplomatic networks economic factors usually play a prominent role in the foreign
policy of each nation; sometimes, economic considerations are even a driving force in their foreign policy. For
purposes of strengthening, or simply maintaining, a country’s position in the international arena, any government
is expected to undertake, not only political, but also economic pursuits. More often than not, economic and
political pursuits are closely related, and it is thus hard to draw a line between the one and the other. In this
report, the focus lies on the economic aspects, but in Economic Diplomacy, as we shall see, political aspects are
never far away.
Economic Diplomacy is not taking place in a vacuum, or, otherwise put, Economic Diplomacy is never
a matter of one-way traffic. The possibilities and impossibilities of a country’s Economic Diplomacy efforts are
determined to a large degree by objective facts and circumstances that cannot easily be changed, if at all. These
facts and circumstances include: the country’s position on the map, its geographical features and climate, the
population and its composition, the country’s history, and its present political, macro-economic and social
challenges. In addition, since exchanges of goods and services with neighbouring countries usually constitute a
sizeable component of a country’s international trade, it is from an Economic Diplomacy perspective necessary
also to take into account the nature of a country’s relationship with its neighbours (and beyond), including
possible political tensions that have a negative bearing on economic cooperation. Moreover, if a country is in the
process of implementing an Association Agreement with the European Union, this fact is of great influence upon
that country’s chief directions of, and prospects for, economic development.
Under the heading of Economic Diplomacy, nations pursue a variety of objectives. They might include,
for instance, ensuring stability in strategic supplies, opening up new markets, promoting exports, attracting (and
keeping) foreign direct investments (and thus reducing unemployment), securing loans from international
financial institutions or other donors, and, in general, promoting a higher living standard for the people, or any
combination of the above. Traditionally, Economic Diplomacy objectives have been pursued as part of bilateral
foreign policy, but work in multilateral economic forums or negotiations (EU, UN and its Specialized
Organizations, International Monetary Fund, World Trade Organization) has increasingly gained importance as
ultimately business enabling work.
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Most countries see international organizations as places where they can aim, for instance, at achieving
better adaptation of the European and/or international regulatory frameworks to their offensive and defensive
economic interests.
For practical reasons, Economic Diplomacy activities to achieve the objectives can be distinguished in
different categories. They include inter alia trade & investment diplomacy (how to make one’s country more
attractive for foreign trade and foreign direct investments); commercial diplomacy (providing information on
different markets, upcoming tenders and other opportunities, as well as assistance to individual businessmen;
with due consideration for the World Trade Organization’s rules); financial diplomacy (working with the
International Financial Institutions); development/transition assistance diplomacy (working with international
(donor) organisations, such as the EU, World Bank and others, to launch programmes, undertake projects, and
promote reforms; and the diplomacy of sanctions (i.e. decisions to install and implement internationally agreed
economic sanctions against one or more countries that deliberately violate certain agreed rules).
It is clear that there exists a continuous interaction between a country’s foreign (economic) policy and
its national-internal (economic) policy. Nowhere the interaction between foreign (economic) policy and
national-internal (economic) policy is stronger than when a nation is involved in endeavours concerning an EU
Association Agreement, including a Deep and Comprehensive Free Trade Area (AA/DCFTA). While usually the
Ministry of Foreign Affairs conducts the negotiations, the results of far-reaching treaties have to be implemented
in the country itself, mainly under the responsibility of other ministries, in particular the Ministry of Economic
Affairs, and under the supervision of the Prime Minister. The other side of the same coin is that, in order to
achieve results in negotiations with Brussels that are, from a country’s national point of view, both desired and
realistically implementable, line ministries should constantly ‘feed’ the Ministry of Foreign Affairs with
information about their respective areas of responsibility, as appropriate. With the help of this information,
negotiating diplomats are fully aware of the advantages, disadvantages and/or challenges represented by the
proposals on the negotiating table, and they can act accordingly. In so doing, the diplomats build up a wealth of
expertise and experience in understanding what the association process is all about. Returning the favour of
providing information, the diplomats can be of great help to line ministries in explaining backgrounds and
modalities of certain commitments that the country assumed in the negotiations. In Economic Diplomacy, it is
thus in over-arching collective national interest that all governmental bodies work closely and faithfully together.
This applies in particular (but not exclusively) to the Ministry of Foreign Affairs and the Ministry of Economic
Affairs, which by definition carry responsibilities in economic matters that are intertwined. Obviously, frictions
between different governmental institutions can never be excluded entirely. Therefore, it is necessary to have a
smoothly functioning mechanism for effective coordination of the efforts of different state institutions, and, if
needed, for speedy conflict resolution. Experiences from EU integration processes in other countries show that,
for maximum effect, this coordinating mechanism should be positioned high in the government’s organisation,
preferably at the level of the Prime Minister. The Head of Government, by definition responsible for the unity of
his Cabinet’s policies, is the coordinator par excellence of his government’s actions. To fulfil this role, he
usually has the political authority to provide binding directives to individual ministries. Only by means of closest
cooperation between all its constituent parts, a government can effectively ensure that a daunting national task,
such as the implementation of the country’s EU association process, will eventually be crowned with success.
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Moldova’s resolute choice in favour of European integration is of crucial importance for its Economic
Diplomacy. The provisional application as of September 1st, 2014, of the Association Agreement (including the
DCFTA) between the EU and the Republic of Moldova opens the road to considerable expansion and
intensification of trade and investment exchanges between Moldova and EU Member States, provided certain
conditions are met. In this context, also the “Briefing Book”, which was prepared by Moldova’s Development
Partners and presented to the Prime Minister of Moldova in March 2015, deserves attention. This “Briefing
Book” contains recommendations for reforms, amongst them many with a bearing on Economic Diplomacy, that
did not lose their validity since the “Briefing Book” was first published.
Taking a closer look at the actors in Economic Diplomacy, states are no longer the only players in
foreign policy: nowadays, international (intergovernmental) organisations and non-governmental organisations
(NGOs), and even individuals, also have a role to play in international relations. However, as a rule, a country’s
Ministry of Foreign Affairs is the leading institution in the domain of foreign policy. By its very nature, a
Ministry of Foreign Affairs consists of Headquarters in-country and Missions abroad (inter alia Embassies,
Permanent Representations, Consulates, Business Support Offices, Trade Missions – or whatever name they may
have). Usually, the Headquarters of the Ministry of Foreign Affairs is the policy-formulating part of the
organization, whereas the Missions abroad are mainly the executive bodies. Headquarters and Missions abroad
together provide the means and the tools for achieving the government’s foreign diplomacy objectives, including
the Economic Diplomacy objectives. These means and tools comprise inter alia budget, personnel, buildings,
communications, and information. Even if the Ministry of Foreign Affairs is not performing all tasks in
Economic Diplomacy itself, the Ministry should at least keep an overview of all efforts, in any case including
those of other governmental bodies, because the ultimate responsibility for foreign policy rests squarely with the
Ministry of Foreign Affairs (in the Republic of Moldova, with the Ministry of Foreign Affairs and European
Integration). Therefore, it will also be necessary in this report to have a look at the internal governmental
organization for Economic Diplomacy within the Republic of Moldova and the main actors in this field. In this
context, the report will outline the positive experiences gained in the Netherlands with a set of integrated
Economic Diplomacy instruments, laid down in the so-called ‘Concordat’ between the Dutch Ministries of
Foreign Affairs and of Economic Affairs.
2.2 The business enabling environment
Experts agree that Moldova should improve its business enabling environment as an important
precondition for promoting foreign (and internal) trade and for attracting (foreign) investments to Moldova. In
terms of business climate, Moldova shared for a long time the main characteristics of other post-Soviet countries:
i.e. heavily controlled from above; overly regulated and highly bureaucratic; suspicious regarding innovation;
with individual companies being subjected to numerous inspections (in an unfriendly environment sometimes to
the point of asphyxiation); with generally uncooperative Customs and Tax authorities, and thus quite prone to
economic mismanagement and corruption. Currently, the situation still leaves a lot to be improved, as is
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indicated in e.g. the authoritative Global Competitiveness Index published by the World Economic Forum.2 In its
2015-2016 edition, Moldova is ranking relatively low at position 84 out of 140 countries, with corruption, policy
instability and inefficient government bureaucracy listed as main impediments to doing business in a competitive
fashion.3 Experts and business representatives also agree that amongst the priority areas of attention for the
Moldovan government are the legal system (shortcomings in law enforcement and in the working of the courts,
including corruption, are often perceived by foreign investors as serious impediments to invest in Moldova); the
de-bureaucratization and professionalization of the administration, at both central and local levels, and
improvements in the financial sector, which recently has proven to be capable of seriously jeopardizing
Moldova’s economic development. The World Bank and others have published detailed reports on the current
state of affairs concerning the business enabling environment in Moldova, and on ways to improve it.4
A recurrent theme in critical observations on Moldova’s business climate is the need to improve
legislation. A priority task is the elimination of failings in the legal system that allow money laundering and
‘raider attacks’ to take place. A major obstacle for serious foreign direct investments is furthermore the existing
ban on the purchase of land by foreigners. Allegedly, there are many ways to circumvent this legal prohibition,
but such ‘creative solutions’ increase costs and risks to investors. Another frequently heard complaint is that,
whereas the Moldovan government at policy level is all in favour of attracting investments, lower governmental
bodies such as the Customs and Tax Authorities seem more intent on discouraging investments through often
arbitrary implementation of legislation. In addition, Moldova’s legislation is often changing without preliminary
consultation of stakeholders from the business community, thus resulting in laws that are sometimes unworkable
in practice. Another complaint frequently heard in the foreign business community in Moldova concerns the
seemingly ‘endless’ inspections of production plants and factory administrations by different control authorities,
which apparently work in an uncoordinated fashion. These time-consuming inspections seem to target modern
production facilities with foreign investment more than indigenous companies, while the latter often would
deserve closer monitoring because many of them are still working with less safe or healthy production processes.
These discriminatory ‘inspections’ of foreign companies frequently seem to be inspired by the controllers’
perception that these companies would be ‘persuaded’ more easily to pay them a bribe to buy off a light (or even
imaginary) breach of an obscure law, rather than dispute the case in court (where the outcome would be
uncertain).
2 See the website of the World Economic Forum: www.weforum.org/
3 For deails, see: http://reports.weforum.org/the-global-competitiveness-report-2015-2016/
4 Examples of such reports are: ‘FDI Attraction to Moldova: Facts, Potential and Recommendations’, published
in April 2012 by German Economic Team (GET) Moldova, Berlin/Chișinǎu; ‘Moldova – Cost of Doing
Business Survey 2014’, and ‘Moldova Investment Climate Presentation’, April 2015, World Bank, Chişinău;
‘Analysis of Priority Export Markets and Instruments to Promote Moldovan Exports to the EU and Other
Markets’, published by MIEPO, September 2014, and ‘European Report on Development 2015: combining
finance and policies to implement a transformatic post-2015 development agenda’, published by the European
Business Association in Chişinău.
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Listening to the foreign business community in Moldova, one often hears that much is possible, even
getting personal exemptions to laws designed to apply erga omnes, ‘provided one knows the right person’.
Admittedly, in individual cases, personal favours granted by politicians or civil servants with authority, e.g. to
overcome a bureaucratic hurdle, might help momentarily. But, on the whole and in the long term, such
‘facilitation’ practices are damaging. They are at odds with the principle of a level playing field for all, and they
add a factor of unpredictability for those who consider making investments. Moreover, an investment made on
the basis of a personal favour and in bypassing the law, could eventually, when the political wind blows from a
different direction and personnel changes occur, turn out to be an investment built on quicksand.
It is no coincidence, therefore, that numerous reports have recommended to the Moldovan authorities to
work, as a priority task, on improving the business climate. Relevant legislation should be simplified and made
more investment-friendly, inter alia by improving predictability for all investors and by taking away those
elements that unnecessarily deter investors. Legislation is important, but so is its implementation. A first
requirement is that implementation is uniform and consistent. In addition, the central government should work
with Customs and Tax authorities as well as other governmental bodies to instil in them the spirit that these
authorities are there, not to hamper business, but to promote it, in particular through a transparent
implementation of the law, fair and equal to all, and without corruption. Improvements in this direction would
already help reducing the need of a personalized approach to encourage investments; instead, an institutionalized
approach should become the norm. In this framework, Moldova should have strong institutions to encourage
foreign trade and investments with the help of reliable information and professional staff. A prominent tool
should be a well-resourced, professional agency for trade and investment promotion, capable of presenting
Moldova’s comparative advantages with the necessary focus and in a convincing manner, as well as providing
concrete assistance.5
5 See also intra, paragraph 4.4
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III. THE EU AND OTHERS IN SUPPORT OF MOLDOVA’S
ECONOMIC DIPLOMACY
3.1 The Association Agreement between the EU and Moldova
A few years ago, Moldova, wishing to draw closer to the European Union, embarked on the ambitious
process of association. Negotiations began in 2010, and the Association Agreement between the EU and the
Republic of Moldova was initialled at the EU Summit in Vilnius in November 2013, then signed in June 2014,
promptly ratified in July, and put under provisional application as of September 1st, 2014. This development
illustrates the very positive dynamics in EU-Moldova relations.
The Association Agreement aims at deepening the political and economic relations between Moldova
and the EU, and at gradually integrating Moldova into the EU Internal Market through the harmonization of
relevant legislation. The commitment to engage in this challenging association process reflects Moldova’s
civilizational choice, because the Association Agreement puts a strong emphasis on democracy and the rule of
law, human rights and fundamental freedoms, good governance, a well-functioning market economy and
sustainable development.
The Association Agreement includes a Deep and Comprehensive Free Trade Area (DCFTA), which
is a core part of the Agreement. Reforms are foreseen in a number of key areas, including public governance,
justice, law enforcement, economic recovery and growth, consumer protection and sectors such as energy,
transport, environmental protection, industrial development, social development and protection, education, youth
and culture. Moreover, the Association Agreement, including the DCFTA, offers Moldova a framework for
modernising its trade relations and for economic development by the opening of markets through progressive
removal of customs tariffs and quotas, and by harmonisation of laws, norms and regulations in various trade-
related sectors. This will create the conditions which allow key sectors of the Moldovan economy to use EU
standards. Over time, the Association Agreement and the DCFTA, if implemented properly, will yield
considerable political and economic benefits for the Republic of Moldova and raise the living standard of its
population.
The objectives of EU assistance to Moldova are now mainly guided by the Association Agreement
between the EU and Moldova. They include the strengthening of democracy, rule of law and respect for human
rights, as well as the promotion of economic reforms and the improvement of living conditions. In addition, the
EU supports the efforts to resolve the Transnistria problem. Other priorities for the EU’s relations with Moldova
include strengthening of institutions, reforming the judiciary, improving the business climate, ensuring respect
for freedom of expression and media, improving health and social conditions and cooperating on issues such as
16
order management, migration and the fight against trafficking, organised crime, corruption and money-
laundering. As is evident, many of these objectives are directly or indirectly linked to Economic Diplomacy.6
In other words: when discussing Moldova’s Economic Diplomacy objectives, it is always necessary to
take into account the programmes agreed upon between the EU and Moldova in support of the latter’s
implementation of the Association Agenda, because they are tarred with the same brush, and they are also
mutually reinforcing.
3.2 Other contributions in support of reforms in Moldova
In addition to the EU’s efforts, a number of other international organizations are working in support of
reforms in Moldova. A major player in this respect is the World Bank. Since Moldova joined the World Bank in
1992, over US Dollar 1 billion has been allocated to about 50 projects in the country. Currently, the World Bank
portfolio includes eight active projects with a total commitment of US Dollar 245.74 million. Areas of support
include – apart from education, social assistance, e-governance, and healthcare – regulatory reform, agriculture,
environment, and business development. Other bodies in the UN family also support Moldova in their respective
areas of competence.
There are also many others, including bilateral donors, from whose advice and funds the Republic of
Moldova benefits in its efforts to strengthen its Economic Diplomacy capabilities. Without in any way wishing
to belittle valuable contributions by others not explicitly mentioned here, reference could be made of important
assistance programmes from European countries, such as Austria, Germany, the Netherlands, Sweden, and
Switzerland, as well as the United States. Apart from USAID’s own programmes, reference should also be made
here of the Western Newly Independent States Enterprise Fund (WNISEF), established by the United States
Congress and funded by the US Government via USAID. It is a US Dollar 150 million regional private equity
fund, designed to provide Ukraine and Moldova with technical assistance for the development and
implementation of an export promotion policy, in particular analytic and advisory support to improve the
appropriate policy, legal, regulatory, and procedural environment to facilitate exports, build export promotion
capacities, increase export awareness, facilitate cooperation between public and private sectors to improve export
enabling environment and promote exports.7
6 For general information on the work of the European Union Delegation to Moldova, see its website (with many
links): https://eeas.europe.eu/delegations/moldova
7 For details, see the WNISEF website: www.wnisef.org
17
3.3 “Briefing Book” written by Moldova’s Development Partners
On March 4th, 2015, Moldova’s Development Partners presented a “Briefing Book” to the then new
Prime Minister of Moldova.8 The Briefing Book, representing a joint initiative of the development community to
help the government of Moldova respond to the country's development challenges, contains recommendations on
policy and reforms. Clearly, these recommendations and the 30 policy notes on key issues related to the
development of Moldova did not lose their relevance since they were presented last year. The policy notes and
recommendations include such diverse subjects as justice and police reform, the role of civil society, and
vocational educational training, but they prominently address also reforms in the economy, the banking sector,
and in energy. The Briefing Book indicates that the recommendations could serve as a reference for the
government’s short and medium-term programming, and it expresses the hope that the Briefing Book, which sets
out the viewpoint of Development Partners on key development and cooperation issues in Moldova, will provide
a viable platform for policy dialogue and strategic partnership with the government of Moldova. Since many of
the recommendations from the development community are related to Moldova’s economy, it is worthwhile to
list them here, in particular those challenges which need to be addressed in a timely manner. Significantly, the
majority of these recommendations is closely linked to Economic Diplomacy, as becomes clear from the
following quotes from the list:
- “The need to ensure a stable economic environment and sound management of public finances: A
well-regulated and reliable banking sector is fundamental to business, citizens and international
investors. At the same time a robust system of public financial management should be in place to ensure
transparency and accountability of public finances. Moldova should develop a competitive business
environment attractive to new investment, as well as take advantage of new trading opportunities
through effective implementation of the DCFTA.”
- “Uneven progress hinders development achievements: Rural Moldova continues to lag behind
changes happening in a few cities in terms of poverty, jobs and access to basic services. Gender
inequality also poses a significant loss to overall socioeconomic advancement. Equity lies at the heart of
the future global Sustainable Development Goals agenda. A focus on overcoming inequalities will
accelerate economic growth and tap into the full human capital potential in Moldova.”
- “Justice and public administration are the bedrock for all sectors, in particular this means
making concrete progress in fighting corruption: Genuine reforms in justice and public
8 The text of the “Briefing Book” (see: www.documents.worldbank.org/curated/en/2015/01/24203490/briefing-
book-development-partners-moldova ) does not list who the ‘Development Partners’ are, but it is generally
known that the “Briefing Book” is the result of cooperation between the representatives in Moldova of the
United Nations, the World Bank, the European Union, the German GIZ, the Austrian Development Agency, the
Swiss Agency for Development and Cooperation, in partnership with the diplomatic missions of Austria,
Germany, Sweden, Switzerland, and the United States.
18
administration would underpin the success of reforms in all other sectors. Guaranteed access to fair and
independent justice is important to businesses, it also safeguards respect for fundamental human rights
for every person. There is an urgent need for defining a strategy for reform at both central and local
level in public administration reform and for a clear mandate for the regional authorities. The influence
of corruption in public life, including public procurement of goods and services needs to be eliminated
and EU/international expertise for supervision/oversight of tenders and privatizations is recommended.”
- “Development with and by people: Engaging people in new ways can be a crucial dimension of the
public administration and decentralization reform. Civil society should be further empowered to play its
vital watchdog role. There is a need to ensure inclusiveness and promote cohesion of society, and take
an approach that engages people on both banks of the Dniester.”
- “A coordinated approach to development: Today’s multi-faceted development challenges require
solid institutional coordination and a “whole-of-government” approach. Moving to genuine
implementation of the Government’s programme and prioritized investment will require a robust
institutional coordination mechanism. This includes an effective coordination mechanism for external
assistance linked to a sound medium term planning and budgeting framework. Implementation of the
Association Agreement and the public investment programme should be nested within such an
approach.”
3.4 Analyses, recommendations, and the need for implementation
In its present report, the CBI consciously refrained from summarizing analyses and recommendations
other than those contained in Moldova’s Development Partners’ Briefing Book, which has been referred to
above. In conducting its research for this report on strengthening Moldova’s Economic Diplomacy capabilities,
the CBI was struck by the fact that there already exists a host of reports, containing analyses and
recommendations on inter alia how to improve the situation in Moldova, some of a general nature, other reports
of a much more specific character; on the need to curb corruption, etc. On the whole, the main elements in these
reports’ analyses are similar, and so are the conclusions and recommendations. While this broad consensus about
what needs to be done adds to the authority of the reports, it is worrying that, apparently, in many cases the
implementation of the recommendations is still outstanding. Most of the CBI’s interlocutors, who are living in
Moldova and have thus been able to witness political and economic developments over many years, confirmed
that, in their view, there is no shortage of good advice; what seems lacking, however, is the will to implement it.
Therefore, the CBI would like to urge the Moldovan authorities to tackle the implementation of the
recommendations that are common to many of the older reports.
19
IV. MOLDOVA’S MAIN STAKEHOLDERS IN ECONOMIC
DIPLOMACY
4.1 The Ministry of Foreign Affairs and European Integration
Within the constitutional set-up of the Republic of Moldova, the Ministry of Foreign Affairs and
European Integration (MFAEI) is charged with the conduct of the country’s foreign policy, including its foreign
economic policy. This fact finds its expression in the top-structure of the Ministry, which contains a position for
a Deputy Minister specifically charged with Economic Diplomacy. This is not an exceptional arrangement:
foreign policy and foreign economic policy should be integrated as much as possible. As Laurent Fabius, the
French Foreign Minister once said: “The Quai d’Orsay should also be, through all its tasks, the home of
businesses.”9
Moreover, the Law on the Diplomatic Service of the Republic of Moldova stipulates that Economic
Diplomacy is one of the core tasks of the Embassies and Consulates of Moldova, which belong to the structure
of the MFAEI. Article 3 of that law reads: “The Diplomatic Service has the following objectives: (a) conduct of
foreign policy of the Republic of Moldova and participation in the promotion of is economic interest; (…); (g)
ensure coherence and unity of activities of the Republic of Moldova abroad;(…)”10. Although this law does not
contain any provisions on the related institutional arrangements, such as the important question which institution
is ultimately responsible for coordinating the economic activities of Moldova’s Representations abroad, the law
provides the MFAEI, including Moldova’s Diplomatic and Consular Missions abroad, with a central position in
Moldova’s Economic Diplomacy.
4.2 The Ministry of Economy and other Ministries
In addition to the Ministry of Foreign Affairs and European Integration, which is thus by law the central
authority for Economic Diplomacy, there are in the Republic of Moldova, as in other countries, various other
ministries, institutions and agencies that also have certain responsibilities and/or deploy activities in the field of
economy. As for the Moldovan ministries, the list would not only mention the Ministry of Economy, but also
include inter alia the Ministry of Finance, the Ministry of Transport & Road Infrastructure, and the Ministry of
Environment.
9 Laurent Fabius, French Minister of Foreign Affairs on 9 April 2013,’Rencontres Quai d’Orsay – Entreprises’
10
Law on Diplomatic Service of the Republic of Moldova, no. 761-XV from December 27th
, 2001, as amended:
http://lex.justice.md/md/312873/.
20
The Moldovan Ministry of Economy plays a preponderant role in steering Moldova’s national-internal
economic development, including through introducing new laws, the management of the administration of public
property, infrastructure, tourism, regional development and constructions, agriculture and environment, land
relations and cadastre, and intellectual property protection. In the framework of these tasks, the Ministry of
Economy liaises with other Moldovan Ministries and agencies. Furthermore, within the purview of its national
coordination tasks, the Ministry of Economy ensures the efficient collaboration between the central authorities,
on the one hand, and agencies such as the Competition Board and different regulatory bodies, on the other. The
Ministry of Economy also maintains contacts with Moldova’s Chambers of Commerce and Industry as well as
other non-governmental organizations involved in economic activities. To this end, it established a Platform for
Inter-institutional Communication.11
Over the last years, the Ministry of Economy had an important role in
developing and supporting the framework for Industrial Parks and Free Industrial Zones, all over Moldova.
Clearly, many of these activities of the Ministry of Economy have areas of tangency with those of the Ministry
of Foreign Affairs and European Integration.
4.3 The Prime Minister’s Office and the Investment Attraction Team
Of particular importance is also the role of the Prime Minister (and the Prime Minister’s Office). In
their daily work, Moldova’s Prime Minister and his Cabinet Ministers would have many different subjects to
devote attention to; we might assume that most of these subjects would have a purely (or mainly) national, i.e.
internal Moldovan, dimension, but some files could have a foreign policy aspect as well.
In theory, the division of competences and labour between the Ministry of Foreign Affairs and
European Integration and the other Ministries is clear: the former deals with foreign policy, the others with the
rest. However, in practice the dividing line between foreign policy issues and other, national-internal, issues is
not so clear-cut. Moreover, there seems exist no overall normative act describing the respective tasks and
precisely allotting them to various institutions. In practice, the absence of such a formal structure for the division
of labour leads to frictions between institutions, which are disputing each other’s right or competence to deal
with matters at hand. In the absence of a legally binding delineation of the ministries’ respective responsibilities,
there is thus a pragmatic need for close cooperation and coordination between the different ministries, so that
Moldova as a nation can be effective in its Economic Diplomacy.
A special position is reserved for the Investment Attraction Team, that is working under a direct
mandate from the Prime Minister of the Republic of Moldova, and that is located at the Prime Minister’s Office.
As its name says, the Team’s mission is to promote and facilitate the influx of Foreign Direct Investment into
Moldova. In addition to providing services to potential and existing investors, e.g. through assistance to investors
during the investment decision-making process, the Team also promotes an investor-friendly image of Moldova,
11
A detailed description of the tasks of the Ministry of Economy can be found on the Ministry’s website:
www.mec.gov.md
21
inter alia by assisting the government in improving legislation regarding investments. For existing investors, the
Team is their main partner in extending their operations and helping them to overcome bureaucratic hurdles.12
4.4 The agencies MIEPO and ODIMM
In addition to ministries dealing with Economic Diplomacy, and the Team for Attraction of Foreign
Investments at the Prime Minister’s Office, there are also governmental agencies working in this domain, such as
the Moldovan Investment and Export Promotion Organization (MIEPO) and the Organization for the
Development of Small and Medium Enterprises (ODIMM). Similar organizations exist in other countries, where
they are usually considered indispensable for the effective conduct of Economic Diplomacy. MIEPO and
ODIMM have both been established by the Ministry of Economy, but as agencies they are not formally part of
the Ministry’s own structure, and they thus enjoy certain autonomy. Their activities have two dimensions, a
national-internal side (e.g. providing information about developments in Moldova) and an international side (e.g.
assistance to foreign businesses, promoting international trade with Moldova and attracting foreign direct
investment to Moldova).
The Moldovan Investment and Export Promotion Organization was set up in 2006 as a national agency
that should be the prime source of information and assistance for potential investors. MIEPO should be
Moldova’s ‘face’ to the outside world, i.e. in particular to the investors visiting the country in search of suitable
projects to invest in. And, indeed, MIEPO does provide tailored services for potential investors throughout the
investment decision-making process, and it also supports existing investors in extending their operations.
MIEPO’s permanent staff members are mainly professionals in economic and commercial matters: investment
consultants, sector consultants, as well as regional officers. Furthermore, MIEPO considers itself as link between
government and businesses. However, MIEPO seems to have suffered lately from drastic cuts in staff and
funding, as a result of which some tasks had to be left to others. Notwithstanding MIEPO’s under-resourcing, the
organization produced useful reports, such as ‘Moldova; opportunities near to you’.13
MIEPO also issued leaflets
and CD-ROM’s about Free Economic Zones and Industrial Parks in Moldova. Moreover, in cooperation with
MIEPO and the Ministry of Economy, the well-known consulting firm Pricewaterhouse-Coopers has issued a
guidebook for investors, the ‘Moldova Business Guide 2014’.14
Clients seeking advice in practical situations,
however, are not always so convinced about MIEPO’s capabilities, as the CBI mission was told by different
interlocutors; on the Moldovan business side, including in management circles of Free Economic Zones and
Industrial Parks, there is also a certain disappointment that MIEPO does not do more, for instance in offering
potential foreign investors a solid package of services to attract – and keep – foreign direct investments.
12
More on the activities of the Investment Attraction Team at the Prime Minister’s Office can be found on the
Team’s website: www. http://www.germania.mfa.md/img/docs/investmen-attraction-team/ 13
MIEPO’s website lists quite a number of publications: www.miepo.md/
14
See the website: www.pwc.com/md/en/publications/assets/moldova-business-guide-2014.pdf
22
The Organization for the Development of Small and Medium-size Enterprises is a public non-profit
institution, established in 2007,15
equally by the Ministry of Economy. ODIMM is working with the Ministry,
but also with other central and local authorities, business associations, and with small and medium-size
enterprises all over Moldova. Its primary goals are: to create, launch and develop businesses, mainly in rural
areas; to facilitate access for SMEs to financial resources and to various sources of information; to stimulate the
private-public dialogue, and to support and develop the business infrastructure.
Over the years, MIEPO and ODIMM have been subject to several reorganizations – MIEPO again as
recently as December 201416
– but apparently, the ‘magic formula’ for a correct position of these agencies
amongst other stakeholders in Moldova’s governmental structure has not been found yet, nor is there, it seems,
satisfaction about the tasks they perform in the present constellation.
A strategy document recently issued by the Ministry of Economy announces a further reorganization of
MIEPO (however without details as to its exact purpose or direction).17
The CBI considers the intention to
reorganize MIEPO an opportunity not to be missed for looking seriously into fundamental questions, such as
what the position of MIEPO and ODIMM within Moldova’s Economic Diplomacy structure should be; which
roles these agencies should play, and for whom; and, as a corollary, how much funding for staff, equipment and
activities they should get to carry out their hoped-for result-oriented tasks. From what the CBI mission learned
from the interviews it conducted, many interlocutors agree that both agencies are currently labouring under
conditions of limited budgetary means and staff reductions. Many stakeholders share the feeling that the present
situation is unsatisfactory; they would like to see MIEPO and ODIMM doing more (although there was no
consensus as to what precisely) and with a higher profile. It was pointed out that also in other countries, agencies
exist that act – and are seen to act – as effective ‘first ports of call’ for all those who are seeking information on
trade and investment. In this respect, Moldova should not be found wanting. Furthermore, it was suggested that
both MIEPO and ODIMM should be given the role of a ‘back-office’ for Moldova’s Diplomatic and Consular
Missions in other countries, ensuring that those who are abroad can avail themselves in a timely manner of all
the necessary information to serve their clients. MIEPO and ODIMM could also serve as the main channels for
forwarding to Embassies and Consulates information on, e.g. upcoming tenders or other investment
opportunities. The CBI supports these ideas. In this context, it is important to underline that the advocates of
MIEPO and ODIMM as strong agencies, explicitly request that MIEPO and ODIMM should not work in a
vacuum, but as ‘members of a team’. In particular MFAEI staff working abroad, on the one hand, and MIEPO
and ODIMM staffs, on the other, should be able to liaise freely and informally between themselves to ensure that
requested information quickly reach its destination.
15
Government Ordinance no. HG 538, from May 17th
, 2007.
16
Government Ordinance no. HG 109, from December 12th
, 2014.
17
Strategic development programme 2015-2017 (Annexe to the Ordinance of the Ministry of Economy no. 125
of August 4th
, 2015)
23
4.5 Non-governmental entities: Chambers, EBA, AmCham, and FIA
In addition to the ministries and other governmental agencies listed above, Moldova also has a number
of non-governmental entities active in Economic Diplomacy. The latter category includes the Moldovan
Chambers of Commerce and Industry (which are, unlike their counterparts in many other countries, private
enterprises). The Chambers generally offer a wide range of services to support the internationalization of
Moldovan companies and to contribute to the development of partnerships between local and foreign
entrepreneurs. Their services include, inter alia, assistance in identifying suitable objects in a targeted market, as
well as in drafting the documentation for developing a company’s international strategy.18
Of an entirely different nature are the activities of such international entities as the European Business
Association (EBA) and the American Chamber of Commerce (AmCham) in Moldova. The EBA, set up in
2011 under the auspices of EU Delegation by ten of the most important European investors in Moldova,
primarily serves the common interests of their respective members (mainly companies in Moldova set up with
investments from businesses in EU Member-States). However, EBA members feel a wider responsibility for the
promotion of Moldova’s national economic interests. It leads them for instance to formulating public
recommendations for improving the business environment in Moldova, for aligning the national economy and
business legislation to the EU standards, and to serve as a platform for dialogue with the authorities.
Furthermore, the EBA promotes European values as well as ethical and lawful business management practices
and standards in the Moldovan entrepreneurial community. In the context of the EU association process, the role
of the EBA is important in guiding and in raising awareness among the business community on what the DCFTA
is and what its implications on business as a whole are.19
AmCham carries out similar activities, obviously from
a North-American perspective and mutatis mutandis.20
Another important non-governmental organization in Moldova which supports export promotion as well
as the attraction and protection of foreign investments, is the Foreign Investors Association (FIA). This non-
profit association was founded in 2003 by eight foreign investors, with the support of the Organization for
Economic Cooperation and Development (OECD), through a project aimed at stimulating reforms and
improvements in the business environment of countries in south-eastern Europe. The FIA also publishes
recommendations on improving the business environment, especially for investors.21
18
For general information on the activities and services offered by the Moldovan Chambers of Commerce and
Industry, see website: www.chamber.md/
19
On the European Business Association in Moldova, see website: www.eba.md/
20
On the American Chamber of Commerce in Moldova, see website: www.amcham.md/
21
FIA’s White Book 2015; Proposals for improvement of the investment climate in the Republic of Moldova.
24
The CBI is convinced that good cooperation between all these non-governmental entities, and between
them and the governmental structures of the Republic of Moldova, is in the best interest of flourishing trade and
investments activities in the country. However, the CBI – pursuant to its mandate, which focuses on the
governmental side of Economic Diplomacy – refrains from going into a description and analysis of Moldova’s
national and international non-governmental commercial entities.
With so many stakeholders, there is a real risk – even if presumably all are acting in good faith – that
duplication of efforts occurs, while other areas, which would be in need of attention, perhaps receive none at all.
In order to avoid such unfortunate occurrences, a clear division of labour recommends itself, in the interest of
improving the efficiency of Moldova’s Economic Diplomacy efforts as a whole, but also in the (financial)
interest of each of the stakeholders themselves, which would otherwise squander their scarce resources. In
addition, a certain degree of coordination is required, not only to avoid unnecessary overlap or, conversely,
unintended neglect of certain activities, but most of all to create productive synergy whenever possible, thus
optimizing Moldova’s ‘returns on investment’ in Economic Diplomacy.
4.6 Coordination between stakeholders in Economic Diplomacy
The CBI mission was positively impressed that all the different stakeholders in Moldova’s Economic
Diplomacy endeavours seem to be inspired by the shared wish to see more foreign investments coming to
Moldova while its exports are growing. At the same time, however, the mission noted with surprise that,
although the stakeholders have common goals, there is relatively little cooperation between them, let alone
coordination or integration. Actually, Ministries, agencies and organizations all seem to work individually
towards these goals, thus consciously or unconsciously failing to observe opportunities for seeking the synergy
that could considerably enhance the fruits of their collective efforts.
At high governmental level, cooperation for Economic Diplomacy purposes between the Prime
Minister’s Office, the Ministry of Economy and the Ministry of Foreign Affairs and European Integration is not
immediately visible. In the eyes of an unprejudiced investor who comes for the first time to Moldova, it would
seem that everybody acts as if the others do not even exist, or, if they do at all, that they are engaged in matters
entirely unconnected with the own area of competence. The investor would probably also be surprised to learn
that Moldova does not have a single entry gate for businessmen wishing to find out more about the country, and
that an investor currently has to talk to many different Ministries, agencies and organizations in order to collect
the information he needs for deciding whether or not to invest in Moldova. Likewise, the CBI mission found
little cooperation or consultation between the ministerial level and second tier organizations, such as MIEPO,
ODIMM and the Investment Attraction Team at the Prime Minister’s Office.
When representatives of the various stakeholders in Economic Diplomacy were asked for their opinions
on how to improve Moldova’s performance in trade and investment promotion, the CBI mission noted that most
interlocutors suggested that their own organization should be strengthened; hardly any representative spoke out
25
in favour of a more cooperative approach, together with others. The mission learned that the Ministry of
Economy was working on a strategy document for inter alia trade and investment promotion; however,
remarkably little could be said about the inputs from other stakeholders (both at national and regional levels) in
this exercise. It looked, therefore, as if the drafting of such an important strategy document was merely
considered a top-down process, undertaken by authors working in isolation, who were not particularly interested
in benefitting from inputs collected from elsewhere. However, as we have seen when discussing legislation that
was drafted without consulting stakeholders from the business community, with the effect that laws are often
imperfect or difficult to implement, also the drafting of strategies without an appropriate involvement of the
addressees is likely to render the value and the practicability of its result less than optimal.
At the same time, the CBI noticed a certain aloofness on the side of the Moldovan private sector – with
the clear exception of international business associations such as EBA, AmCham and FIA – to get involved;
presumably it is easier to criticize than to pro-actively seek improvements. Perhaps, the situation reflects earlier
experiences with the public sector, which apparently hitherto has been somewhat reluctant to engage the private
sector in consultations on matters where, in fact, the public and the private sector have many common interests
and where closer cooperation would entail benefits for all involved.
It is against this background, that the CBI suggests to have a look at the positive experiences gained in
the Netherlands with coordination, and even integration, of Economic Diplomacy activities.
26
V. DUTCH EXPERIENCE IN COORDINATING/INTEGRATING FOR
PURPOSES OF ECONOMIC DIPLOMACY: THE INTER-
MINISTERIAL CONCORDAT
5.1 Economic policy coordination and integration in the Netherlands
Traditionally, the Netherlands has always been heavily dependent on its foreign economic relations.
Early on, the Netherlands established a reputation as a trading nation, which the country still is: one third of the
current Dutch GDP is earned from exports.
Following the Second World War, the Dutch authorities realized that rebuilding the country was
impossible without economic relations with other countries; trade and investments thus became the main engines
of post-War reconstruction. This insight also made the Netherlands one of the six founding fathers of the
European Community for Coal and Steel, which, as is well-known, developed over the years into the present-day
European Union. In the current circumstances, business internationalisation, leading to intensified competition
and to entrepreneurial dynamics aimed at innovation and increased productivity, is more than ever necessary for
sustaining prosperity in an open economy. In addition, scarce public budget resources make it prudent to steer
away from subsidies and to rely more on Economic Diplomacy for purposes of deconstructing barriers and for
creating or facilitating opportunities for those who demonstrate initiative, commitment and perseverance.
5.2 The ‘Concordat’ between the Ministry of Foreign Affairs and the Ministry of
Economic Affairs of the Netherlands
Recognition by the Dutch government in the middle of last century of the crucial importance of
coordinated action and cooperation between stakeholders in Economic Diplomacy, in the first place between the
Ministry of Foreign Affairs and the Ministry of Economic Affairs, led to the conclusion of the so-called
‘Concordat’, a framework agreement for cooperation between the two Ministries. In essence, the 1955 Concordat
confirmed the central position of the Ministry of Foreign Affairs, which would be in the driving seat in
Economic Diplomacy, but at the same time it recognized the importance of the Ministry of Economic Affairs in
this field by giving the latter several handles to exert its influence in matters of Economic Diplomacy. However,
the fundamental philosophy underlying the Concordat was that Economic Diplomacy would have to be seen, not
as an arena for competition between Ministries, but as a sphere of common, even national, interest and joint
operations.
However, after serving some 60 years as the framework agreement for the Netherlands’ integrated
Economic Diplomacy endeavours, the old Concordat was in need of an update. In an environment in which the
27
Netherlands Government realized that the already stiff foreign economic competition continued to increase, it
was decided to launch discussions, not only on renewing a tried and tested arrangement but also explicitly on
making further steps towards intensification of cooperation between, or even integration of, stakeholders in
Economic Diplomacy, in order to be able better to cope with the challenges of the future. The new Concordat,
which was published in June 2014, indeed contains provisions for strong cooperation, coordination and
integration.
5.3 The contents of the Dutch Inter-Ministerial Concordat
The far-reaching nature of the Dutch 2014 Concordat might best be illustrated with a selection from its
provisions: the Ministry of Economic Affairs is authorized to instruct Dutch Diplomatic and Consular Missions
abroad directly (with copy to the Ministry of Foreign Affairs); instructions primarily take the form of
substantiated requests to the Missions abroad to submit annual plans; at the Missions, economic work is now
done in integrated economic clusters in which all Economic Counsellors and others – therefore, including the
Agricultural Attaché’s, Innovation Attaché’s, Transport Attaché’s etc. – are participating, under the authority of
the Head of Mission; at Embassies, the Economic Officers (independent of their background) are working
closely together with the Consular Officers in matters of issuing visas for visiting businessmen; there are
reciprocal secondments of staff; officers of the Ministry of Economic Affairs are participating in trainings for
officers of the Ministry of Foreign Affairs working (or going to work) in economic positions; all can participate
at equal footing in economic conferences, and teams for inspections (audits) of Missions abroad usually include
an officer from the Ministry of Economic affairs. In The Hague, the two Ministries are working closely together,
e.g. in policy discussions on the formation of the Dutch Missions network abroad; in drawing up the
‘competence profiles’ for economic positions in the framework of Human Resources management; in designing
the training curriculum for future diplomats, and on standardization of services rendered by Missions abroad to
the private sector (and the related question of setting fees for such services). They also decided closely to
cooperate on practical issues, such as in Human Resources when selecting personnel for appointment in
positions at Missions abroad that are important from an economic point of view, as well in dealing with
economic staff’s periodic assessments.
Moreover, to reflect the central position of the Ministry of Foreign Affairs in matters of Economic
Diplomacy and to ensure closest cooperation between this Ministry and the Ministry of Economic Affairs, it was
decided during the last Cabinet formation in the Netherlands that the General Directorate for Foreign Economic
Relations, previously in the Ministry of Economic Affairs, would move to the Ministry of Foreign Affairs. The
Head of the General Directorate for Foreign Economic Relations is a full member of the Board of General
Directors of the Ministry of Foreign Affairs, thus embodying in his person the integration at the highest
administrative level between the two Ministries for purposes of foreign economic policy. In the same vein, the
CBI itself, although housed in a separate office building, became formally part of the Dutch Ministry of Foreign
Affairs.
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In Moldova, as we have seen, the Ministry of Foreign Affairs and European Integration and the
Ministry of Economy are the main players in Economic Diplomacy at the central political level. Their roles
partly overlap, and it is difficult, if not impossible, exactly to determine where the area of competence of the one
Ministry ends and where that of the other Ministry begins. It is against this factual background that the CBI likes
to recommend that the Moldovan government carefully study the Dutch integrated approach in foreign economic
relations at governmental level, as an example that could perhaps inspire the Moldovan counterparts of the Dutch
Ministries and agencies to follow suit, with the aim of organizationally strengthening Moldova’s concerted
approach to Economic Diplomacy. The CBI stands ready, if so desired, to provide more details about the Dutch
set-up and to facilitate contacts.
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VI. SETTING PRIORITIES FOR MOLDOVA’S ECONOMIC
DIPLOMACY
6.1 Setting national priorities in Economic Diplomacy
Usually, any government has a long wish-list of interventions it want to undertake in certain policy
areas that it considers in need of development or improvement. However, any government’s budgetary and other
means are by definition limited. Hence, choices must be made. This applies in particular to the field of economic
development, which is wide-ranging and diverse in nature. A useful tool to structure the decision-making process
is the definition of a set of national economic development priorities that could be expected to be pursued
successfully within the constraints of the available resources. Definition of a set of national economic
development priorities reduces the risk for the authorities of spreading their forces too thinly. Moreover, the
definition of a small number of priorities, arrived at in an inclusive process and thus endorsed and shared by the
stakeholders, will provide the necessary focus to the government’s interventions. In addition, the well-publicized
selection of a small number of priorities, and the fact that their pursuit will be facilitated by the government, will
make the interventions of the authorities better understood and, therefore, also more effective.
As has been referred to earlier, Moldova’s EU integration process has entered a stage in which many
reforms have to be implemented as a result of the commitments Moldova entered into by signing the Association
Agreement, including the Deep and Comprehensive Free Trade Area. It is of crucial importance to ensure that
Moldova’s European integration process and Moldova’s Economic Diplomacy endeavours are running in
parallel, so that they can be mutually reinforcing. The complexity of these processes underscores the need for
visible leadership and effective coordination. For any Prime Minister, as Head of the Government, it would be a
natural task to determine the priority policy objectives for his country and to monitor their implementation by the
various competent governmental structures. This most certainly applies in particular to Economic Diplomacy
objectives.
At first glance, Moldova’s Prime Ministers often seem to have left the subject matter of Economic
Diplomacy largely to various Ministries to deal with. As mentioned earlier, there is at the Prime Minister’s
Office a special unit, called the Prime Minister’s Investment Attraction Team, but the Team’s primary role at
present is not to formulate national priorities (However, its place in the Prime Minister’s Office reflects the
implicit recognition of the importance of dealing with the subject at that level). Notwithstanding the fact that in
the past a number of politically inspired disputes between Ministries about competences occurred, most
stakeholders seem to have been working hitherto in a fairly soloist manner, not bothering too much about what
others had done or were doing simultaneously, nor about what other stakeholders would think of the ideas and
activities that they themselves had deployed. This isolationist approach of working past one another, instead of
30
working with one another, is not effective. It creates confusion for third parties, such as potential trade &
investment partners; and it heightens the costs of the individual achievements while reducing their value,
because it neglects opportunities for generating synergy.
To remedy these disadvantages, the CBI strongly recommends that the Moldovan authorities pursue a
much more cooperative approach, under which the stakeholders in Economic Diplomacy work together to define
their collective priorities and thus give focus to the government’s economic policy. It is suggested that a
document be drawn up by the government, identifying a (limited) number of areas of economic activity as long-
term strategic objectives for Moldova. Examples that spring to mind are: agriculture, wine-making, textile,
manufacturing of automotive parts, IT or tourism, but, obviously, the final definition of Moldova’s priorities lies
squarely with the Moldovan side. Such areas as will be deemed to be of strategic importance in terms of
economic policy could be further encouraged and promoted by granting activities in those areas (more) funding
from the State budget than other sectors which would not be labelled as being of strategic importance for
Moldova’s economic development. To illustrate what is meant with this recommendation, reference is made
below to a successful Dutch example.
6.2 The Dutch ‘top sectors policy’ as an example for setting national priorities in
Economic Diplomacy
In recent years, the Netherlands government developed a so-called ‘top sectors policy’
(topsectorenbeleid). It is based on triangular cooperation between government, business and knowledge
institutions. Having collected inputs from businesses and knowledge institutions, the Dutch government declared
nine economic ‘top sectors’ on which it wanted to focus attention and (budgetary) means: agriculture & food;
chemical industry, creative industry, energy, high-tech systems & materials, life-sciences & health, logistics,
horticulture & seed materials, and water. Guiding principle in the ‘top sectors policy’ is its demand-driven
character: the government undertakes – obviously, within reasonable limits – those activities which the other two
constituencies, business and knowledge institutions, say they need in order to develop further. The ‘top sectors
policy’ has three main pillars: innovation (together, public and private funds are allocated to certain Research &
Development itineraries), the human capital agenda (to allow, where needed, specific labour market measures),
and internationalization. The latter flows from awareness that the ‘top sectors policy’ is dependent on other
countries: as a market for goods and services, but also as a source of technologies, and of partners and personnel
who can help achieve certain objectives, as well as a source of foreign investment to strengthen the ‘top sectors’
and enable growth. In the Netherlands, the standard tools and techniques for trade and investment promotion –
trade & investment missions at various levels, fairs, certain financial instruments, and, last but not least, the work
of Embassies and Consulates – are also used for promoting ‘top sector’ activities. In addition, the ‘top sectors
triangle’ of government, business and knowledge institutions agreed to give special attention to a jointly
developed programme of strategic trade fairs, i.e. fairs with a world-wide showcase function, such as the Boston
Bio Fair, the Düsseldorf Medica Fair, and the Paris Air show. The programme allows every ‘top sector’ to
choose two strategic trade fairs per year; at these fairs, the Netherlands Enterprise Agency (RVO) will build a
‘Holland Pavilion’, where Dutch ‘top sector’ representatives can present themselves and their products or
31
services. Moreover, it is encouraged that each of the ‘top sectors’ identify their respective ‘priority countries’, so
that even more focus can be achieved and synergy opportunities be identified. In fact, the Dutch approach is a
matter of prioritizing the use of existing trade & investment promotion tool and techniques, according to the
priorities of the ‘top sectors’ that have been worked out in consultations. By clustering activities of the state and
of private businesses in the respective ‘top sectors’, effective use is made of always scarce resources. For proper
understanding, the Dutch ‘top sectors policy’ does not mean that activities in other sectors than the ‘top sectors’
are discouraged; it merely means that the other sectors, judged to be somewhat less important for the country as
a whole, do not have the same access to some of the preferential arrangements that apply to companies in the
‘top sectors’.
6.3 The need for an effective Information and Communication Strategy
During the interviews with the CBI mission, many interlocutors expressed the view that their respective
organizations did not have a clear and detailed picture of the Moldovan government’s overall economic policy
priorities. Even assuming that such priorities had been defined, they indicated that, in their view, the government
had failed to publicize these priorities sufficiently. According to these sources, clear and readily accessible
information about national economic priorities was of great importance as guidance for their own work.
The CBI mission strongly endorses the need for developing an effective Information and
Communication Strategy – and, of course, also the need for subsequent implementation of this strategy. It would
be extremely helpful, even essential, if all those who are directly or indirectly involved in Economic Diplomacy
can be provided with authoritative governmental guidance concerning the general framework and the main
objectives that the government of Moldova wishes to achieve, nota bene with their help. The government’s
Information and Communication Strategy should define the way how to achieve this objective. In turn, from the
government’s perspective, implementation of the Information and Communication Strategy would be an
important contribution to fostering the necessary broad support for Moldova’s national priorities, and at the same
time to reducing the risk of governmental (and non-governmental) bodies unintentionally pursuing different
directions.
The requirement for an effective Information and Communication Strategy ties in with the requirement
of reliable, centrally managed data bases on economic matters, accessible from different sides. Sharing
information and having access to information are important preconditions for success in Economic Diplomacy.
Moldova should use the opportunities offered by state-of-the-art technology to give access to information and
even actively divulge information, thereby strengthening the implementation of the Authorities’ declared
objectives in the field of ‘e-Government’ and the ‘Digital Moldova 2020 Strategy’. The traditional working
methods of providing information through books and leaflets that are already outdated at the moment they
appear from the printing press, should be replaced by approaches that cut out or reduce distribution costs and that
allow information to be updated continuously. This requires a data base on economic aspects to be set up,
managed and maintained. The data base should be designed to be accessible at all times to, at least, all
stakeholders in Economic Diplomacy. Only in this way it can be ensured that all ministries, institutions and
32
agencies can avail themselves of the information necessary to allow questions to be answered promptly and
correctly; that business opportunities which have been signalled will be properly reacted upon; that certain areas
are not neglected and that, conversely, duplication of efforts is avoided. According to the very nature of macro-
economic information, most data on a country’s economy and its development are already available in the public
domain; sometimes they are even visible to the public at large. Hence, in principle no limitations need to be
applied for electronic access to data that governmental institutions already traditionally, as a matter of routine,
have collected, not only in support of its own policy-making processes, but also for purposes of information to
the public. The most logical place to establish such a data base is probably in the export and investment
promotion agency, but the government should ensure that the managing agency receives the technical staff and a
budget sufficient to maintain the database as its major resource for reliable information. This is, by the way, not
a new concept: a small data base already exists at the Prime Minister’s Office. It would be recommended to use
this database as the start for building a more comprehensive database.
33
VII. IMPLEMENTING THE PRIORITIES FOR ECONOMIC
DIPLOMACY
7.1 Internal organization at the Ministry of Foreign Affairs and European Integration for
purposes of Economic Diplomacy
According to the Moldovan governmental website,22
the “Ministry of Foreign Affairs and European
Integration (MFAEI) is the specialized central body of public administration authorized to promote and
implement the foreign policy of the State.23
It continues: “The MFAEI is carrying out a broad activity aiming at
ensuring favourable conditions to fully implement the following national interests of the Republic of Moldova
externally: to integrate into the European Union, to strengthen the cooperation with international and regional
organisations, to promote its economic interests, to ensure a favourable external environment and the
international support necessary to implement the economic, social and political reforms in Moldova, to settle the
conflict in Transnistria, to protect the interests of Moldovan citizens abroad and to build up the positive image of
the Republic of Moldova in the international arena.” It is clear for the above that Economic Diplomacy is a
major task within the mandate of the MFAEI. The great importance that the Ministry attaches to Economic
Diplomacy finds its expression inter alia in the existence of a post of Deputy Minister in the MFAEI’s top-
structure, specifically charged with Economic Diplomacy.
However, as far as could be ascertained, there is hitherto in the MFAEI’s structure no department (not
even a section) that is specifically called to support the Deputy Minister with expert advice and assistance in
dealing with Economic Diplomacy matters. Under current practice, it seems that any economic or commercial
task that presents itself at the MFAEI is dealt with on an ad hoc basis. In other words, at present, the Deputy
Minister for Economic Diplomacy cannot avail himself of the support of a permanent body of staff with
extensive expertise and experience in the special discipline of Economic Diplomacy. This is not to say that the
MFAEI doesn’t have knowledge and experience necessary for Economic Diplomatic, but it is spread out over
different departments in the Ministry. Instead of allowing available knowledge and expertise to be diluted, as is
presently the case, it should be concentrated.
The situation is quite different at Moldova’s Ministry of Economy. That Ministry does have the
necessary units to support its own Deputy Minister for International Relations: there is a General Directorate for
International Economic Cooperation, comprising three Directorates. These are: the Directorate for Coordination
of European Economic Policy and the Deep and Comprehensive Free Trade Area; the Directorate for Bilateral
22
Cf. website www.gov.md/
23
The internal Regulations of the MFAEI, approved by Governmental Ordinance no. 1156 of November, 4th
,
2005, regulate its activity.
34
Economic Relations and Cooperation with the International Financial Organisations, and the Directorate for
Trade Policy and the World Trade Organisation. Clearly, by the nature of its work as reflected in the names of
these three Directorates, such a General Directorate would equally be at its appropriate place in the structure of
the MFAEI. Without such a General Directorate, however, the MFAEI would continue being unnecessarily
constrained in exercising the role that is natural for any Foreign Ministry in-country, i.e. the role of coordinating
governmental (and often also non-governmental) endeavours in areas of foreign policy, in this case in Economic
Diplomacy. In the opinion of the CBI mission, the MFAEI should definitively strengthen its own capacity for
purposes of Economic Diplomacy. Hence, creation of a specific unit for Economic Diplomacy within the
MFAEI is recommended as a priority.
As referred to in previous paragraphs, Moldova’s Economic Diplomacy is closely linked to the
country’s EU Association process, and, ideally, all the efforts undertaken under these headings will be mutually
reinforcing. Although there is thus for Moldova a logical focus on the EU dimension, its Economic Diplomacy
efforts are in fact not limited to the EU, because they are by definition world-wide activities.
Accordingly, the Economic Diplomacy unit to be established within the MFAEI should preferably be an
independent General Directorate, not subordinated to any other MFAEI General Directorate. Moreover, as to the
rank of the civil servant heading the Economic Diplomacy unit, the position and title of General Director seem to
be in conformity with what is good practice in many other countries for such an official. Appointing an official
with this high rank will give him or her the necessary seniority and it will also facilitate effectiveness in dealing
with counterparts from abroad as well as colleagues from other Moldovan ministries, institutions and agencies.
7.2 Economic Diplomacy activities by Moldova’s Missions abroad
The governmental website that was quoted in the previous paragraph, also states that “The Central
Apparatus of the Ministry [of Foreign Affairs and European Integration], its consular bureaus, diplomatic
missions, representative offices and missions to international organisations as well as the staff thereof all
together constitute the Diplomatic Service of the Republic of Moldova. The Law on Diplomatic Service governs
the basic objectives and operations of the Diplomatic Service.” Moldova has currently some 40 Diplomatic and
Consular Missions abroad. In principle, these Missions have personnel coming from the MFAEI, but to some of
these Missions civil servants of other Ministries are attached. For instance, at seven Missions economic
counsellors delegated from the Ministry of Economy are working.
Mainly for internal coordination and monitoring purposes, Moldova’s Diplomatic and Consular
Missions abroad are requested to periodically draw up plans for the activities they envisage to undertake in the
future. These plans are to be submitted to the scrutiny of the Ministry’s Headquarters in Chișinǎu. In theory,
approval of a Mission’s plans by MFAEI Headquarters should lead to the allocation of the funds necessary for
their implementation; in practice, however, such a linear connection does not always materialize.
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Moreover, it seems that it is not always clear to Embassies and Consulates which type of Economic
Diplomacy proposals would stand the best chance to be received favourably at the MFAEI’s Central Apparatus.
In this context, it should be a help for Missions abroad if the Ministry’s Headquarters, before soliciting plans
from the Missions, would indicate in advance the general direction in which it expected proposals for activities
to be submitted during the time ahead, or, for instance, provide indications of the sectors of the economy or
specific subjects that Headquarters expected Missions to devote special or urgent attention to. Such information
to Missions abroad could be of a generic nature, applicable to all Embassies and Consulates, or it could be
Mission-specific; whereas some Economic Diplomacy goals would be the same for all Missions, other goals
could usefully differ from Mission to Mission. In the manner that is suggested here, more of a dialogue between
the MFAEI Headquarters and the Missions abroad would emerge, as a result of which Mission-specific targets
would become explicitly tuned to the national strategies. Hence, this dialogue could only be to the benefit of the
Ministry’s collective efforts in Economic Diplomacy.
7.3 Tools and techniques for Economic Diplomacy
Apart from its dependence on appropriate organizational measures (i.e. setting priorities, establishing
mandates for institutions, and instructions for obligatory interaction), Economic Diplomacy is also about
choosing the right tools and techniques for achieving the desired objectives. There is a wide variety of tools and
techniques that could be applied, in function of the prevailing circumstances and the goals to be reached. Some
of these tools and techniques will be mentioned below.
a) Free Economic Zones and Industrial Parks
In attracting foreign investments, Free Economic Zones and Industrial Parks could fulfil a useful role, in
addition to other measures. Free Economic Zones offer a preferential customs and tax regime to companies
established there; Industrial Parks usually derive their attractiveness from the fact that investors can benefit from
reduced rental prices for land and from free connections to the utilities infrastructure. Currently, Moldova has
established across the country (close to its borders and in bigger towns) some ten facilities that would qualify as
a Free Economic Zone and over half a dozen of Industrial Parks. Although some important foreign companies
already have settled down in Free Economic Zones, it would seem that more can be done by the authorities to
publicize the existence and the advantages of these facilities, but also in meeting concrete demands from
potential investors. Presumably, the Moldovan Association of Industrial Parks (APIM), which was set up by a
meeting of representatives of Industrial Parks on June 26th last year, at TRACOM in Chișinǎu in the presence of
the Vice-Minister of Economy, Mr Tudor Copaci, will address also this question.
b) Fairs
The organization of own fairs as well as the participation in fairs organized by others belong to the
traditional techniques in trade and investment promotion. In recent years, fairs concentrating on one or more
specific sectors (e.g. agricultural machinery, furniture & interior design, tourism) have become more popular
36
than the traditional fairs in which there was much less focus in exhibition stands and in visitors. Provided they
are well-organized (inter alia by steering free from similar events taking place in other countries at the same
time), and provided they are announced well in advance, sectoral fairs can be an excellent way of drawing the
attention of a large public to what the country has to offer. To optimize results, the organization of fairs, or the
participation therein, should be aligned with the priorities the government has identified beforehand as national
trade and investment priorities. Participation by Moldovan companies in fairs could, for instance, be encouraged
by facilitating a common exhibition stand for these companies, which, both literally and metaphorically, would
show the Moldovan flag together. Therefore, strategic, coordinated, long-term planning by the trade and
investment promotion agency and sufficient funding are of the essence. More than hitherto seems to have been
the case, the Moldovan authorities should seek the cooperation of the private sector in organizing fairs and other
trade and investment promoting activities. With the help of such ‘public-private partnerships’, goals could be
realized in practice – conceptually, financially, and in terms of Human Resources – that would otherwise just
remain missed opportunities.
c) Trade and investment missions
For trade and investment missions similar principles and rules, mutatis mutandis, apply to those that
were given above for fairs. Also for outgoing trade and investment missions, strategic, coordinated, long-term
planning and sufficient funding are essential preconditions for success. As with fairs, the competent organization
for trade and investment promotion should, ideally, draw up a list of missions to be conducted in sectors and/or
countries that have been identified beforehand as priorities from a national point of view. The CBI would like to
emphasize, also with regard to trade and investment missions, the desirability to work closely together in public-
private partnerships that make full use of existing capabilities from both sides. In addition, the Moldovan
organizers of trade and investments missions should always seek the help of their counterparts in the country of
destination, but they might also wish to turn to the Development Partners’ community to see whether practical
assistance and/or financial support is available. In other words (as so often): don’t go it alone, but always try and
seek cooperation and synergy!
d) Encouraging competition for the best trade and investment projects
Successful business is usually creative and innovative. The Moldovan government, through and with the
assistance of its Agency for trade and investment promotion, could do more to introduce incentives for the
business community to come up with innovative ideas on how to intensify export growth and job creation.
Invitations to participate in a national contest for the best approaches to increase trade and investment in
Moldova can yield original ideas and useful projects. Proposals for feasible projects can be rewarded with a
prestigious award, to be presented, of course, by a high-ranking politician or businessman, and accompanied by
the necessary publicity. Obviously, the Agency should then also be prepared to try out these ideas in practice, for
which the government should make a special financial arrangement.
e) Encouraging Embassy competition in commercial work
37
To encourage competition in commercial activities at Embassies and Consulates, the Ministry of
Foreign Affairs and European Integration could consider to work together with specialists from the Ministry of
Economy and the Agency for trade and investment promotion, to set a contest between Embassies for
formulating ideas how trade and investment in Moldova can best be ‘marketed’ in their respective countries of
accreditation. In addition, the Ministry of Foreign Affairs and European Integration could introduce an annual
award for the best performing Embassy or Consulate in business promotion, with a jury to be composed by
experts from the Ministry, the Moldovan Agency for trade and investment promotion, and senior representatives
from the side of Moldovan employers. The award could be handed over at the annual Ambassadors conference
or a similar event that creates publicity.
f) Organizing regular trainings for Commercial Attaché’s
Commercial work at an Embassy or Consulate is a professional job. Therefore, the Ministry should
continue devoting attention to trainings for diplomats working in commercial positions. The CBI has been
involved in such annual Commercial Attaché trainings hosted at the Ministry of Foreign Affairs and European
Integration in Chişinău, and it has been invited to continue with these this year.
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VIII. CONCLUSIONS AND RECOMMENDATIONS
8.1 Internal conditions: improvement of the business environment
As to internal conditions, Moldova is geographically a relatively small country with an open economy,
which makes Moldova dependent on economic exchanges with other countries, both in terms of imports and
exports. By tradition and due to its climate, the Moldovan economy is strongly focused on agriculture, in
particular wine, fruits and vegetables. The industrial sector is mainly confined to light industry. The service
sector has lately seen considerable growth, but the many (very) small-size companies are still vulnerable because
of lack of managerial skills and/or financial reserves. In some sectors, such as minerals and energy, Moldova is
almost fully dependent on other countries to keep itself afloat. Employment opportunities in Moldova are
limited, particularly in rural areas, which forced a sizeable part of the labour force to seek jobs abroad. To raise
the living standard in Moldova, which is currently one of the poorest countries in Europe, there is a desperate
need for more (foreign) investments; however, for that to happen the improvement of the business environment
in Moldova is an important internal precondition for successful Economic Diplomacy, in particular for the ability
to attract foreign direct investments. Priority goals for the Moldovan government in this context are
improvement of legislation; effective reforms in the judiciary; the establishment of a reliable control over the
banking system; reduction of economic mismanagement, and, last but not least, a determined fight against
corruption at all levels.
8.2 External conditions: don’t put all eggs in one (EU) basket
As to the external conditions, Moldova’s history amply demonstrates that the country has always been
and continues to be at a geo-politically and geo-economically crucial crossroads in Europe. Moldova’s history
with its neighbours to the East has not always been a very happy one, and memories of Russian repression are
lingering; these painful memories have recently been given fresh nourishment on account of Russia’s trade wars
against Moldova over Chişinău’s decision to pursue a vigorous pro-European course, in which the government
considers the conclusion of the EU Association Agreement to be but the first step. And, indeed, Moldova’s EU
association process has become the most important project for the government in Chişinău. It is likely to
dominate Moldovan politics even more in the near future, as the government sets itself to implementing the
Association Agreement, including its Deep and Comprehensive Free Trade Area. However, notwithstanding the
seemingly all-consuming character of this EU association process, Moldova’s Economic Diplomacy efforts
should not exclusively be directed towards the EU and its Member-States. A country cannot choose its
neighbours, and Moldova will thus be bound always to deal with Eastern Europe as well. Moreover, cooperation
with Kyiv, which is going through a similar EU association process, has gained importance. Hence, for these and
other reasons, the government of Moldova would be ill-advised if it were to focus all its Economic Diplomacy
efforts on the West, while closing its eyes to developments – both threats and opportunities – in the East. In other
39
words, the process of association to the EU has become the most important project for Moldova; however,
Moldova’s Economic Diplomacy efforts should not exclusively be directed towards the EU and its Member-
States. In particular in light of the current tensions in the Black Sea region, the relationship with Moscow
deserves great attention: Russia’s use of energy prices as a weapon, and its ban on imports of Moldovan wine
and fruits need careful managing. Moscow’s role remains decisive in resolving the ‘frozen conflict’ of
Transnistria. On the other hand, there seems to be scope for strengthening the economic cooperation with
Ukraine.
8.3 A robust institutional coordination mechanism is needed
In principle, there is ample scope for development of Moldova’s economy, but for that to happen
investments are desperately needed. The capacity to generate investments from indigenous sources is, however,
very limited. Moldova is thus obliged to attract foreign investments. Attracting foreign investments should be
considered a national task and responsibility, in which, therefore, all stakeholders must cooperate in a
coordinated, or even integrated, fashion to achieve maximum results without squandering resources. Given the
importance of investments for the development of the country as a whole, the Moldovan government is advised
to approach the question of attracting foreign investments as a national task and responsibility, in which all
stakeholders must cooperate in a coordinated or even integrated fashion to achieve maximum results. A robust
institutional coordination mechanism is needed. The ‘Briefing Book’ written by Moldova’s Development
Partners is, not by co-incidence, quite outspoken on the subject of a coordinated approach to development:
“Today’s multi-faceted development challenges require solid institutional coordination and a “whole-of-
government” approach. Moving to genuine implementation of the Government’s programme and prioritized
investment will require a robust institutional coordination mechanism. This includes an effective coordination
mechanism for external assistance, linked to a sound medium term planning and budgeting framework.
Implementation of the Association Agreement and the public investment programme should be nested within
such an approach.” The CBI strongly endorsed this advice.
8.4 Definition of national priorities for trade and investment
To provide guidance to all stakeholders in Economic Diplomacy, but also to inform foreign businesses
so that they might respond to it, Moldova’s government should collectively agree on national priorities for
economic development, with the aim of guiding foreign investments to those sectors or areas of the economy
where those investments are most needed. To focus investments on sectors or areas where they are most needed,
the government collectively should determine ‘national priority objectives for investment’. Identification of
national priority investments should be done in an inter-ministerial setting, under chairmanship of the (Office of
the) Prime Minister, in order to provide the outcome of the process with the necessary authority. In this process,
the Prime Minister’s Office and other stakeholders could also decide on special measures (e.g. fiscal exemptions)
to make investments in projects or areas that have been national priorities for Moldova more attractive.
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8.5 Qui trop embrasse, mal étreint
To promote more focus in the government’s economic policy, it is recommended that the government
identifies a small number of economic development priorities (e.g. five or six, to start with), with regard to
which the government will take special facilitating measures. Such areas of economic activity could thus enjoy
more funding from the State budget than other sectors, not labelled as being of strategic importance for
Moldova’s economic development. The Netherlands introduced a ‘top sectors policy’ (topsectorenbeleid) that
might serve as inspiration. By clustering activities of the state and of private businesses in the respective ‘top
sectors’, more effective use is made of always scarce resources. This approach does not mean that work in other
fields than the ‘top sectors’ is discouraged; it merely means that the other sectors, judged to be less important for
the country as a whole, do not have access to some of the preferential arrangements that apply to companies in
the ‘top sectors’.
8.6 Cooperation and coordination between stakeholders
As to the organization for Economic Diplomacy in Moldova, we have seen that there are quite a number
of stakeholders claiming a role to play. Clearly, the Ministry of Foreign Affairs and European Integration has to
fulfil its natural, central role in dealing with foreign policy matters, including foreign economic policy, while
taking into account the interests of other governmental structures in these matters. The Ministry of Economy
should be mentioned as the first among many other governmental bodies that have a direct or indirect interest in
economic policy matters. To ensure the unity of policies and to set the priorities at national level, the role of the
Prime Minister and his Office in Moldova’s State Chancellery is decisive. In Moldova, the Head of Government
is fully authorized to give instructions to individual Ministries, and he actually uses this power on a regular basis.
Requests – in fact orders – from the Prime Minister‘s Office addressed to individual Ministries to produce
certain documents or to perform certain tasks, are a standard practice accepted by all involved. There is thus no
reason for assuming that the Prime Minister of Moldova should not also have the last word in decision-making
with regard to the country’s Economic Diplomacy, including, if necessary, in cutting knots in cases of
contradictory opinions between ministers. Apart from ministries, Moldova has quite a number of agencies and
other institutions which are, under various names, involved in more or less specifically denoted aspects of the
economy, including in activities that qualify as Economic Diplomacy. Although usually some main task
elements are set out in normative acts concerning Moldova’s ministries, between these Ministries, and between
them and agencies and institutions, a detailed division of competence and labour is lacking. In practice
developed over the years, each institution has carved out a role for itself. Nevertheless, a certain competition is
going on, since all of these governmental structures are scrambling for allocations of funds from the, anyway
limited, State budget. Without close cooperation and effective coordination between stakeholders, there is a
serious risk of duplication of work in certain areas, while other areas might be left untended. It is important for
all stakeholders to know their competences and responsibilities; the reverse, absence of clear lines of
responsibility for Economic Diplomacy within the multi-layered Moldovan State administration with its many
different Ministries and Agencies as well as private actors, is a risk and an impediment for effective Economic
Diplomacy.
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8.7 Moldova’s Agency for Trade & Investment Promotion
An important player amongst the country’s economic institutions is the Moldovan Investment and
Export Promotion Organization (MIEPO), which, within a modest budget, tries to offer a range of services to
interested parties. Another agency is the Organization for the Development of Small and Medium-sized
Enterprises (ODIMM), which inter alia assists foreign (and local) businessmen in setting up companies in
Moldova. In addition, there is, with support from abroad, a Team for the promotion of foreign investments in
Moldova; it is situated at the Prime Minister’s Office and deals mainly with issues concerning the largest foreign
investors in Moldova. In the opinion of the CBI, the present set-up is not ideal and leaves a lot to be desired,
inter alia due to its fragmentation. Practically every country has a specialized body for trade and investment
promotion, and, given Moldova’s generally endorsed economic priority objectives of promoting exports and
attracting foreign direct investments, also Moldova should have a capable, high profile, body that is the logical
place where clients would turn to for receiving quick, reliable and detailed information regarding trade and
investment opportunities, and related economic aspects. Moldova’s existing agencies, inter alia MIEPO and
ODIMM, could be taken as building blocks for developing a more powerful organization for export and
investment promotion. It should be realized, however, that a crucial precondition for success in export and
investment promotion is that the relevant organization has at its disposal, apart from a clear mandate,
professional and well-trained staff (with a wide range of language skills), who have been given the authority to
act with a certain autonomy within the confines of the organization’s mandate. In addition, the organization
should be easily accessible, both physically as well as on-line. Detailed data bases that are being kept up-to-date
all the time, as well as state-of-the-art information and communication equipment belong to the standard tools.
The fact that trade and investment promotion is considered a Moldovan national priority should find its
expression also in the organization’s subordination within the governmental structure: it should not be tied to a
ministry. Instead, to underline its importance and to reflect the government’s integrated approach, the agency for
trade & investment promotion should be immediately subordinated to the Prime Minister’s Office.
8.8 The structure of the Ministry of Foreign Affairs and European Integration for purposes
of Economic Diplomacy should be strengthened
In the present structure of the Ministry of Foreign Affairs and European Integration, the Deputy
Minister for Economic Diplomacy cannot avail himself of the support of a permanent body of staff with
extensive expertise and experience in the special discipline of Economic Diplomacy. The MFAEI’s knowledge
and experience in Economic Diplomacy matters is currently spread out over different departments. However, to
be more effective, available knowledge and expertise should be concentrated, as is the case in Moldova’s
Ministry of Economy. Therefore, the central role of the Ministry of Foreign Affairs and European Integration in
Economic Diplomacy should be strengthened through the establishment of a General Directorate for Economic
Diplomacy. This is recommended as a matter of priority.
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8.9 Concentration of Economic Diplomacy activities at the MFAEI
Based on examples from other countries, such as the Netherlands, but also for instance Romania24
, one
could imagine this General Directorate to be made responsible for drafting Strategies for Economic Diplomacy,
addressing elements such as the furthering of Moldova’s general economic interests abroad; supporting and
promoting energy security objectives; cooperation with the EU, UN, World Bank, other international financial
institutions and inter-institutional cooperation on economic issues. Because of the fact that Moldova’s Ministry
of Economy is also involved in these subjects, the closest cooperation is needed. Based on the Dutch favourable
experience, the preferred option would be integration of the departments dealing with questions of foreign
economic policy and concentration of the Economic Diplomacy activities at the Ministry of Foreign Affairs and
European Integration. A mandate for such an integrated General Directorate could be: Designing a framework of
information-sharing between the Ministry of Foreign Affairs’ economic department, diplomatic missions,
companies, and other institutions with an economic component; constantly updating the macroeconomic
information sheet on Moldova; facilitating dialogue and information exchange with other central and local public
institutions, as well as with the business community, and performing anything else that would consolidate inter-
ministerial cooperation aimed at achieving a better foreign economic representation, including through
participation in inter-ministerial economic working groups. The CBI mission is confident about the chances of
acceptability of such an approach, because all the CBI mission’s interlocutors in Chișinǎu spontaneously
stressed the importance of a coordinated approach, and all those who were interviewed stated their willingness to
contribute their respective share in working towards this common goal. Bearing in mind these positive
statements, the CBI is convinced that a fundamental precondition for Moldova’s success in Economic
Diplomacy is already in place.
8.10 The crucial importance of information and communication
Information and communication are indispensable instruments in the government’s toolbox, also for
purposes of economic development. The Prime Minister’s Office should see to it that not only proper
information about national priority investment sectors or areas is drawn up, but also that this information is
widely communicated and that it is easily accessible in open (on-line) sources. To this end, it is recommended
that the government draws up a nation-wide Information and Communication Strategy. Reliable and up-to-date
information and communication regarding economic subjects should serve as a bench-mark for public relations
activities by all stakeholders in Economic Diplomacy, both in Moldova and at Moldova’s Diplomatic and
Consular Missions abroad. Given its importance, this strategy should emanate from the highest level of the
government. Obviously, the task to collect and divulge information can be delegated, for instance to the trade &
investment promotion agency.
24
Cf. for Romanian practice: www.mae.ro
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8.11 A comprehensive information database
In addition to the active distribution of information, providing easy access to information is also an
important precondition for success in Economic Diplomacy. Moldova should use the opportunities offered by
state-of-the-art technology for offering access to information, or even actively divulging information, thereby
strengthening the implementation of the Authorities’ declared objectives in the field of ‘e-Government’ and the
‘Digital Moldova 2020 Strategy’. Traditional methods for providing information through books and leaflets
should be replaced by approaches that cut out or reduce printing and distribution costs, and that allow
information to be updated continuously. A comprehensive data base on economic aspects should be set up,
managed and maintained. It should be accessible at all times to, at least, all stakeholders in Economic
Diplomacy. Only in this way, ministries, institutions and agencies can be sure to have all the information they
need. The most logical place to establish such a data base is probably in the export and investment promotion
agency, but the government should ensure that the agency receives the technical staff and a budget sufficient to
maintain the database as its major resource for reliable information. The relatively small data base currently
available at the Prime Minister’s Office should be taken as a starting point for gradually developing a more
comprehensive database. The CBI’s recommendation, therefore is, that a national data base be set up, designed
to be accessible at all times and to all ministries, institutions and agencies active in economic policy. The data
base will provide the authorities with the information necessary for policy making and, for instance, for
advertising priority investment or other business opportunities. But it would also be a tool for questions from
institutions or the public to be answered promptly and correctly. A logical place to establish such a data base is
presumably within the export and investment promotion agency. The government should ensure that the agency
receives the technical staff and the budget necessary to maintain the database as its major resource for reliable
information on Moldova’s economy.
8.12 Funding
Finally a word about funding. These recommendations are put forward with due regard for the financial
constraints under which the Republic of Moldova is currently labouring. The CBI proposals are all aimed at
making things work more smoothly, by reducing unnecessary duplication and related costs, by seeking synergy,
and by enhancing overall effectiveness. That having been said, before any economic endeavours could yield
results, it is indispensable to make ‘investments’ in terms of organization, communication, personnel, and
toolboxes, but certainly also in terms of appropriate funding. The CBI does not wish to make any assessments of
the costs of a data base as has been proposed to set up, because much will depend on the modalities; on what
capabilities are already there, and on choices to be made as to its future functionalities. But also beyond the
question of the data base, the CBI would make it a point to stress that Moldovan Embassies must be funded
sufficiently to allow them undertaking the activities that the government as a whole deems necessary and expects
from them, including such activities as the organisation of (sectoral) trade and investment missions, and
participation in exhibitions or fairs. After all, how could one expect an Embassy effectively to draw the attention
to Moldova’s potential, if funds were not available to present the opportunities Moldova is offering? This having
been said, not all measures that the report proposes require large funding; some can be implemented at no costs,
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others with only limited amounts of money. Nevertheless, the bottom line is that an important precondition for
effective trade and investment promotion is the availability of sufficient funding from the state budget for the
staff, the equipment and the activities to be conducted. In this context, it should always be kept in mind, as a
matter of principle, that costs for Economic Diplomacy should not be seen primarily in terms of expenditure; on
the contrary, costs for Economic Diplomacy are to be considered a durable investment into the future of
Moldova.
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IX. TO FINISH
9.1 CBI’s readiness to assist in the follow-up to be given to this report
The present report addressed the scope and significance of Economic Diplomacy for the Republic of
Moldova. Against the background of recent developments, notably the provisional application as of September
1st, 2014, of the Association Agreement between the European Union and the Republic of Moldova (including
the Deep and Comprehensive Free Trade Area), the report identified relevant factors for determining Moldova’s
foreign economic policy options. Furthermore, it identified the main actors in Moldova’s Economic Policy, and
described their respective roles in this field. Moreover, the report has drawn up an inventory of the existing
mechanisms for cooperation and coordination between the stakeholders, because effective cooperation and
coordination are crucial factors for success. The report looked in particular at the tasks of the Ministry of Foreign
Affairs and European Integration in the field of Economic Diplomacy, and at the question whether this Ministry
is sufficiently equipped for Economic Diplomacy purposes – quod non – , also in relation to other governmental
and non-governmental entities active in economic policy. Some Dutch approaches to cooperation, coordination
and integration in Economic Diplomacy, including the concept of ‘top sectors policy’ as practiced in the
Netherlands have been explained. Obviously, this was not done in order to suggest that these Dutch approaches
should be copied lock, stock and barrel in Moldova; however, as the Moldovan authorities seek to strengthen
their arrangements for Economic Diplomacy, the CBI hopes that these examples are useful for Moldova to draw
inspiration from. Finally, the CBI report has taken the reader through a dozen of conclusions drawn from the
preceding analysis. At the same time, these conclusions served as foundation of the CBI’s concrete and practical
recommendations for strengthening Moldova’s effectiveness in Economic Diplomacy. Now the time has come to
start vigorously implementing these and other concrete and practical recommendations.
The CBI Management will refrain from synthesizing its recommendations, but in concluding this report
it wishes, once more, to underline the key importance of faithful cooperation between the main stakeholders in
Moldova’s Economic Diplomacy endeavours. Readiness to cooperate should flow from the conviction that more
stands to be gained from joining efforts than from going it alone. Against this background, the CBI Management
sees merit for the Ministry of Foreign Affairs and European Integration to take the lead by organizing a ‘Round
Table on Economic Diplomacy’. The objective of such a Round Table would be to bring together leaders of the
main stakeholders in Moldova’s Economic Diplomacy endeavours, in an effort to encourage a common
understanding and a joint commitment to bring about the procedural and/or institutional improvements that are
most conducive to strengthening Moldova’s capabilities in Economic Diplomacy, in common interest. The CBI
is convinced that a basis for a constructive dialogue is already in place, because during the initial round of
interviews by the CBI mission, all stakeholders’ representatives have explicitly recognized the key importance of
Economic Diplomacy’s for Moldova’s future. Moreover, all of them expressed the wish to work towards making
Moldovan Economic Diplomacy as successful as possible. If the Ministry of Foreign Affairs and European
Integration of the Republic of Moldova were to decide taking the lead in this endeavour, the CBI stands ready to
assist.
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LIST OF ABBREVIATIONS
AA Association Agreement between the EU and the Republic of Moldova
AEI Alliance for European Integration
AmCham American Chamber of Commerce
CBC Cross-border cooperation
CBI Center for the Promotion of Imports from developing countries
CCI Chamber of Commerce and Industry
CIS Commonwealth of Independent States
DCFTA Deep and Comprehensive Free Trade Area
EBA European Business Association
ENI European Neighbourhood Instrument
ENP European Neighbourhood Policy
ENPI European Neighbourhood and Partnership Instrument
EU European Union
FDI Foreign Direct Investment(s)
FEZ Free Economic Zone(s)
FIA Foreign Investors Association
IFC International Finance Corporation
IMF International Monetary Fund
IP Industrial Park(s)
GDP Gross Domestic Product
ME Ministry of Economy (of the Republic of Moldova)
MFAEI Ministry of Foreign Affairs and European Integration (Moldova)
MIEPO Moldovan Investment and Export Promotion Organization
NBM National Bank of Moldova
ODIMM Organization for the Development of Small and Medium-size Enterprises
OSCE Organization for Security and Cooperation in Europe
PM Prime Minister
PMO Prime Minister’s Office, Chancellery of the Government of Moldova
SME(s) Small and Medium-size Enterprise(s)
UN United Nations Organization
WB World Bank
WNISEF Western Newly Independent States Enterprise Fund