Download - Republic of Moldova
1
Republic of Moldova
Written by Vitalie VOVC, for Centreurope.org
April 2005
Moldova
2
IntroductionIntroduction
Goals : – General presentation and key figures of social, cultural
and economical environment in Moldova for a better understanding.
Contents:
– 46 slides presenting the most important themes and issues about Moldova
3
PresentedPresented by: by:
Vitalie Vovc
- Post-Graduate Student in Organizational Studies at University Paris 9 Dauphine, Paris.
Interests: Organizational learning in Eastern European Subsidiaries.
4
ContentsContents
5
1.1 About Moldova1.1 About Moldova→ A young country with an ancient and rich history→ The socialist period and its difficulties → The transition disillusionments in the 1990’s
6
1.2. Political environment in 1.2. Political environment in MoldovaMoldova→ A new institutional environment
→ Moldavian political chess-board
→ The difficulties of the Moldovan economy
→ The uncertain geopolitical strategy
7
1.3. 1.3. Social and Cultural Social and Cultural Highlights of MoldovaHighlights of Moldova → Moldavian culture: origin and general presentation → A high level of education → The religion’s importance in the Moldavian society → A heterogeneous and declining population → A difficult everyday life for Moldovans
8
1.4. 1.4. Keys for understanding Keys for understanding the Moldovansthe Moldovans
→ Norms and values which are significant for Moldovans→ The important place of folkloric parties, traditions → Local cuisine→ Reciprocal stereotypes. Communication between
Moldovans and Americans→ Communicate efficiently→ To be avoided!
9
2.1 2.1 The Moldovan companiesThe Moldovan companies → A new environment for the Moldovan industry → The corruption and the bureaucracy hindering normal
business practice → Uncompetitive companies facing a deep crisis → A qualified and low-cost labor force → Social environment in the Moldovan companies → Labor and Employment Law
10
2.2 Management and 2.2 Management and Negotiation in MoldovaNegotiation in Moldova → No important legal restrictions regarding hiring or dismissing
people → Best pecuniary incentives → The importance of training programs → The leadership and team management → Participative or directive management → Negotiation and partnership
11
1. 1. Cultural Issues. Everyday Live in Cultural Issues. Everyday Live in MoldovaMoldova
1.1 About Moldova
12
A country with a reach and A country with a reach and ancient historyancient history The Moldovans are proud of their ancient history (more
glorious than the recent history) that they are presenting in a subjective manner.
XVe-XIXe s. : The Moldovans are under the Ottomans. 1812 – 1918 Part of Moldova by the past, Bessarabia
becomes a Russian gubernia. 1918 – 1940 Bessarabia rejoins Romania 1944 – 1991 One of the 15 Soviet Republics of the USSR 1991 – Independency Act
The Moldovans are Latin from 106, when Romans invaded Dacia
The Moldovans fought against the Ottomans. Vlad Tepes (1428-1476), known as Dracula, is one of the relevant characters of this struggle.
13
The socialist periodThe socialist period
After the Second World War, Moldova was subject to a genocide organized by Soviets. Hundred of thousands of Moldavian families were deported or died during the 1946 famine.
Part of USSR, Moldova had the same political and social organization: a single political party, planified and collectivist economy, totalitarian governance.
Due to a certain specialization in the USSR, The Moldovan Soviet Republic was mostly an agricultural zone and suffer nowadays from a lack of competitive industry
Leonid Brejnev, head of USSR from 1966 to 1982, started his political carrier in Moldova. He was the chief of local communist party from 1950 to 1952. After Stalin’s death he moved to Moscow.
14
The transition disillusionments in the The transition disillusionments in the 1990’s1990’s The August 1991 putsch against M. Gorbachev, 1st
USSR president, precipitated the Soviet Union explosion. Moldova becomes an independent state on August 27th, 1991.
A civil war (1992) opposed Chisinau to Transnistria, a separatist eastern region, mostly inhabited by Russians.
The Moldovan presidents (Mircea Snegur (1992-1996), Petru Lucinschi (1996-2000), Vladimir Voronin (since 2000)) are all ancient apparatchiks. That explains difficulties to adopt democratic values in Moldova. August 1991. Troops in
Moscow. The army did not support the putsch.
Mircea Snegur, first Moldovan president.
15
1.2. 1.2. Political environment in Political environment in MoldovaMoldova
16
A public A public environment underenvironment under construction construction
Democratic institutions are established but not always functioning.
Different governments failed to accomplish the mission of public service: inefficiency of public Administration, health policy problems, transport and telecommunications infrastructures in a poor state.
The law system does not correspond to the new society. Big security problems: racket and hold-ups are frequent.
Sondage sur la démocratie
Source : GFK, 2002
17
The Moldovan Political chess-boardThe Moldovan Political chess-board The communists obtained the majority in the
Moldovan parliament in 1996. The parliament elected Vladimir Voronin to the presidency.
In 2005, the communists confirmed their leading position but had to face a stronger opposition during elections.
The centrist coalition BMD and the pro-Romanian PPCD represents the opposition in the Moldovan parliament. Vladimir Voronin, the
communist president of Moldovan Republic.
18
Difficulties of the Moldovan EconomyDifficulties of the Moldovan Economy
In spite of economical growth, Moldovan economy is in a deep crisis.
Inflation rate, internal and external debt, commercial balance are still difficult to bring under control.
At least 25% of national GDP are due to the currency transfers from abroad.
Moldova is actually the poorest European country.
19
An uncertain geopolitical strategyAn uncertain geopolitical strategy
Moldova is one of the CIS countries.
Moldova declared International political neutrality and does not participate to any military alliance.
Russia has a military base in Transnistria despite of Moldova’s disapproval.
During the last campaign, the communists adopted a new international strategy for European integration (the same as their opponents).
A new Moldovan international strategy?
20
1.3. 1.3. Social and Cultural Highlights Social and Cultural Highlights of Moldovaof Moldova
21
Origins and main features of the Moldovan Origins and main features of the Moldovan cultureculture
Main influences are Roman, Byzantic, Balkan, Slavic and occidental.
The most representative are:– The architecture of orthodox churches and
monasteries,– Painting and sculpture,– Literature and music– ScienceAll fine arts are represented with a specific
national style
Eugenio Coseriu, born in Mihaileni, is one of the outstanding linguistsof the XX-th century
22
A high level of educationA high level of education
A good level of primary educational programs
Technical and professional education are largely represented
Moldovan Universities are facing difficulties: lack of financial resources, non attractive for young researchers, low international recognition.
The Moldovan schools are facing important financial difficulties.
23
The religion place in the societyThe religion place in the society
The Moldovans are deeply religious people.
98,5 % of them are orthodox. The
Catholic and Jewish religions are not relevant.
Different sectist groups are also acting in Moldova, taking advantage of a lack of legal restriction and general poverty
The orthodox liturgy is spectacular and solemn
24
A heterogeneous and declining A heterogeneous and declining populationpopulation
Total Population: 4 434 547(2002 estimation), Pyramid of ages: - 14 years old : 21.7% (male- 490 414 ; female- 472 912) - 15-64 years old: 68.2% (mail- 1 451 962 ; female- 1 572 561) - 65 year and more: 10.1% (male- 165 860 ; female 280 838) (est. 2002)
Moldovans: 64.5% Ukrainians: 13.8% Russians: 13% Jewish: 1.5%, Bulgarians: 2% Gagauz and others: 5,2%
25
1.4 1.4 Keys for understanding the Keys for understanding the MoldovansMoldovans
26
A difficult everyday life for MoldovansA difficult everyday life for Moldovans
Moldova is considered to be the poorest country in Europe.
« Perhaps no place in Europe faces the wrenching problems of poverty quite as actually as Moldova » Washington Post, 07.11.98
A lot of Moldovans are working abroad. The massive migration could jeopardize the future economic development.
Old people are the most vulnerable social category
27
Norms and values wich are significant for Norms and values wich are significant for MoldovansMoldovans
The Moldovans are open-minded, united, appreciating cultural discussions and different fellow parties.
They worship family and social justice
Moldovans are proud and could be rather nationalist.
In a country where women position are rather difficult, Eugenia Ostapciuc holds the position of Parliament Speaker
28
The important place of folkloric parties, The important place of folkloric parties, traditionstraditions The Folkloric music and dance are very
popular in Moldova. Festivals and concerts are organized
regularly.
The Moldovans are fond of sports and are very proud about Moldovan sportsmen’s achievements.
Tudor Casapu (weight lifting)Olympic Champion in Barcelona '92
29
Local cuisineLocal cuisine
Various and consistent, the Moldovan cooking takes its origins in Greek, Turkish, Russian, French cuisine.
Meat is common, especially pork.
Moldovans are producing lots of local alcohols: (different sorts of wine and brandy), but also good natural mineral waters. The ciorba is a soup
with corn, bacon, potatoes, beef or chicken. It is widespread in Moldova.
30
Reciprocal stereotypes. Communication Reciprocal stereotypes. Communication between Moldovans and Americansbetween Moldovans and Americans
The West-Europeans have negative stereotypes on Moldovans and this fact chocks them.
The Moldovans are pro-American and pro-European, but they are expecting much more efforts from western countries.
31
Communicate efficientlyCommunicate efficiently Moldovans like oral communication. They are
also much more demonstrative.
They like passionate discussions on politics, sports, literature…
The Romanian language is full of imagery ant poetic forms. Poetry is generally appreciated.
The Moldovans hesitate to ask for an explanation when something is not clear enough.
32
To avoid!To avoid!
Condescending attitudes, lapidary and unfounded judgments on Moldovans must be avoided.
Try to avoid sumptuousness signs and attitudes
Subjects to avoid: person’s political adherence (pro-Romanian / pro-Russian); Your salary; Moldovan’s negative image in western countries
This is the image the Moldovans prefer!
33
2.1 2.1 Moldovan CompaniesMoldovan Companies
34
A new environment for Moldovan A new environment for Moldovan IndustryIndustry Unproductive and over dimensioned Moldovan
industry collapsed during the 1990’s.
The Moldovan industry was closely tied to the USSR economy system. The USSR explosion broke existing links and closed an important market.
The military conflict in 1992, the Russian crises in 1998, affected Moldovan industry.
35
The corruption and the bureaucracy The corruption and the bureaucracy hindering normal business practicehindering normal business practice The Administration’s inefficiency in
Moldova and the high corruption level dissuade foreign investments.
Moldova is ranked 114th (on a total of 135 countries) in the 2004Transparency International survey on corruption in the world.
Ancient apparatchiks are still on key positions in Moldova.
Petru Lucinschi: last First Secretary of The MoldavianCommunist Party, but also Moldovan president from 1996 to 2000
36
Uncompetitive companies facing a deep Uncompetitive companies facing a deep crisiscrisis
The Soviet legacy is still producing negative effects on Moldovan companies: over-stuff, obsolete technology, organizations and equipment, maladjusted products, inefficient commercial strategies, payment problems…
The privatization process did not solve existing problems.
Small business is not supported enough
37
A qualified and cheap labor forceA qualified and cheap labor force
The Moldavian labor force has the lowest cost in Europe: only 0,3 Euros per hour. In spite of a high unemployment level, many competences and skills are difficult to find.
The Stakhanovism was always a legend: the employees are not enterprising, low involved and of an uncertain ethics.
Migration is a big problem for the Moldovan companies (1/4 of active population).
There is a big gap between young generation and the 40 – 50 years old people.
Moldovan average salary constitute only 2% of the Dutch salary, but only 9% of the employees have a high level of education
38
Social environment in the Moldovan Social environment in the Moldovan companiescompanies Social environment in Moldovan companies is considered to be
positive.
The Moldovans like team working, but not in high rhythm.
Foreign managers are well accepted and respected.
39
Labor and Employment LawLabor and Employment Law
– The Moldovan Labor Law is based on European models, but not always respected
– It is not a constraint for the company and gives the opportunity to be flexible.
– The trade unions do not have a big influence in the private companies.
40
2.2 2.2 Management and Negotiation Management and Negotiation in Moldovain Moldova
41
No important legal restrictions regarding No important legal restrictions regarding hiring or dismissing peoplehiring or dismissing people The law and the usual hiring process are very simple. It does not
require anticipation, excepting management and key functions.
The unemployment rate is important but it could be difficult to find a good specialist.
Dismissing people could be risky.
Trade unions are not active in the private sector.
42
Best pecuniary incentivesBest pecuniary incentives
Salary varies widely and depends on the particular job and company type.
Moldovans are fascinated by mass-consumption consumer culture, and money in general.
Pecuniary incentives could have negative effects (too much taxes, bonuses could be considered salary part)
Professional « perks » and social activities are really appreciated
In a country where appearance is important, driving a company car is prestigious
43
The training programs importanceThe training programs importance
Moldovans are eager to learn
Training programs are uncommon in the Moldovan companies. Only 5 to 6 % of Moldovan employees are involved in a training program every year.
A training abroad (at the head quarter for ex.) could motivate a Moldovan employee.
Young people are eager to learn
44
The leadership and team managementThe leadership and team management
Moldovans respect too much the hierarchy.
It is difficult to delegate, Moldovan executives have no enough management skills and are not convinced about its utility.
The authoritarian tradition and bureaucratic organization are a barrier to the participative management implementation.
45
The negotiation and partnership The negotiation and partnership
Moldovans are not familiar with the negotiation process and techniques. They are often afraid of tricks
Human relations and different personal arrangements have the same importance as contract clauses
The final decision is taken progressively and with changes of mind and renegotiation
46
The EndThe End
Thank you for your attention.