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The Evolution of Economic Reforms in the Republic of Moldova: 2011 – 2012

Viorel Chivriga, Economic Expert, Institute for Development and Social Initiatives (IDIS „Viitorul”) 1. Executive Summary Several laws providing for reform action plans to ensure the implementation of the objectives aimed at in the "European Integration: Freedom, Democracy, Welfare" Government Activity Programme for the years 2011-2014, as well as of the commitments to the development partners, were approved during 2011-2012. Among these, the following may be mentioned: Government Decision No. 179 of 23.03.2011 on approving the Government Action Plan for the years 2011-20141, Government Decision No. 289 of 07.05.2012 on approving the Government Action Plan for the years 2012-20152, Government Decision No. 1125 of 14.12.2010 on approving the Republic of Moldova Action Plan on Implementing the Recommendations of the European Commission to set up the Deep and Comprehensive Free Trade Area between the Republic of Moldova and the European Union etc. It should be mentioned that, according to Government Decision No. 289 of 07.05.2012 on Approving the Government Action Plan for the years 2012-2015, ministries and other central administrative authorities were to ensure stakeholder consultation process on the draft regulations included in the respective Plan and quarterly submit information by the 15th of the following month about the way the Government Action Plan is carried out, using the "Activity Programme of the Government" Information System, available at http://raportare.gov.md. Information about the way the Government Action Plan for the years 2012-2015 is carried out is not placed on the government site, while the consultation process was often a techy one, without the draft laws and policy documents that are approved by the Government being subject to public consultation3. Also, several measures planned by the Government to be taken are transferred from an action plan to another, and in many chapters, most of the reform measures are to be implemented within a large period of time (fourth quarter of 2012 – fourth quarter of 2015). However, positive results are registered in the legislative process, which allowed the passing of a significant number of important laws governing key areas of the national economy. Among these, the following may be mentioned: Law on Competition4, Law on the Capital Market5, Law on Insolvency6, Law on

1Abrogated by Government Decision No. 289 of 07.05.2012. 2The law is not available on the website of the Government of the Republic of Moldova - http://www.gov.md/lib.php?l=ro&idc=425). 3http://www.cnp.md/ro/activitati/evenimente/item/1096-pre%C5%9Fedintele-%C5%9Fi-vice-pre%C5%9Fedintele-cnp-au-vorbit-%C3%AEn-cadrul-unui-talk-show-televizat-despre-transparen%C5%A3a-%C3%AEn-procesul-decizional 4Law on Competence No. 183 of 11.07.2012. OJ No.193-197/667 of 14.09.2012.

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Subsistence Minimum7, Law on State Aid8, Law on State Control over Business Activity9, Law on Industrial Safety of the Dangerous Industrial Objects10, Law on Establishing General Principles and Requirements on the Food Safety11, Law on Accreditation and Conformity Assessment12, Law on the Implementation of the One-Stop Shop for Business Activity13 etc. Several important policy documents and regulations that would enforce the legislation in force have been approved during the reporting period. The results of the negotiations on the setting up the Deep and Comprehensive Free Trade Area between the Republic of Moldova and the European Union represent an undeniable success for the state institutions of the Republic of Moldova. 2. Presentation of the realities and progress/ reforms achieved, accomplished or unaccomplished. Chapter II of the Action Plan - Economic and financial policies - includes 8 sections: business environment, competition policies and SME development, property management and privatization of the public property, fiscal-budgetary policy and public funds management, agro-industrial policies, infrastructure and transport, quality infrastructure, industrial safety and consumer protection, information technology and communications. 2.1. Business Environment Progress and shortcomings Impact Indicators for the year 2012. • In January-June 2012, the gross domestic product grew - in real terms - by 0.8% compared to

January-June 2011 (the planned impact indicator - GDP growth by an average of 5% annually).

• In January-August 2012, the exports of goods fell by 0.1% compared to the same period of 201114. The imports grew by 2.3% during the same period (the planned impact indicator - exports growth by 8% annually).

• According to Doing Business 2012, the Republic of Moldova improved its positions on 6 dimensions15 (the planned impact indicator - improvement of at least 3 areas annually from the "Doing Business" perspective).

Reform measures to improve the business environment • There is some progress registered in the regulatory reform, especially as regards some reform

measures originally planned for 2011. The Law on Regulating through Licensing the

5Law No. 171 of 11.07.2012 on the Capital Market. OJNo.193-197/665 of14.09.2012. 6Law on Insolvency, No. 149 of 29.06.2012. OJNo.193-197/663 of 14.09.2012. 7Law No. 152 of05.07.2012 on the Subsistence Minimum. OJNo.165/555 of07.08.2012. 8Law No. 139 of15.06.2012 on the State Aid. OJNo.166-169a/565 of16.08.2012. 9Law No. 131 of08.06.2012 on State Control over Business Activity. OJNo.181-184/595 of31.08.2012. 10Law No. 116 of18.05.2012 on Industrial Safety of the Dangerous Industrial Objects. OJNo.135-141/445 of06.07.2012. 11Law No. 113 of18.05.2012 on Establishing General Principles and Requirements of the Legislation on the Food Safety. OJNo.143-148/467 of13.07.2012 12Law No. 235 of01.12.2011 on Accreditation and Conformity Assessment. OJNo.46-47/136 of07.03.2012. 13Law No. 161 of 22.07.2011 on Implementing the One-Stop Shop in carrying out business activity. OJ No. 170-175/496 of14.10.2011. 14The exports of domestic merchandise amounted to U.S. $ 826.8 million (60.7% of total exports), an increase by 16.2% compared to January - August 2011, which contributed to the growth of exports by 8.5%. The re-exports of goods were worth U.S. $ 534.6 million, which amounted to a 39.3% share in the total exports. Compared to January-August 2011, the re-exports of goods decreased by 17.9%. 15http://www.doingbusiness.org/data/exploreeconomies/OJldova

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Business Activity16. There have been amendments and supplements made to Law No. 451-XV of July 30, 2001 on Regulating through Licensing the Business Activity. The Law on the One-Stop Shop for Business Activity has been passed in order to eliminate bureaucracy and streamline the exchange of information between the state institutions and the economic entities. The Law on State Control over Business Activity and the Law on Insolvency were passed.

• Several regulations were approved to apply the legislation regulating the business environment. Therefore, Government Decision No. 476 of 04.07.2012 approving the Regulation on the Standard Procedures and General Conditions for Selecting the Private Partner17,Government Decision No. 499 of 06.07.2012 on the e-Transformation Subdivision of the Central Public Administration Authorities18, Government Decision No. 419 of 18.06.2012 on approving the list of goods that are state property and the list of works and services of public national interest proposed for the national public-private partnership19,Government Decision No. 329 of 28.05.2012 on the e-Governmental Service of Electronic Payments20 were approved.

• Several measures are taken to facilitate the access of Moldovan goods to third markets. Most measures provided for in the Republic of Moldova Action Plan on Implementing the Recommendations of the European Commission to set up the Deep and Comprehensive Free Trade Area between the Republic of Moldova and the European Union are taken. There have been also three rounds of negotiation of the Agreement (DCFTA). An agreement on the free trade area within the Commonwealth of Independent States was also signed21and negotiations on the draft Agreement between the Government of the Republic of Moldova and the Cabinet of Ministers of Ukraine on trans-border trade were initiated. The Republic of Moldova has initiated within the Dispute Settlement Body of the WTO procedures to clarify issues related to the implementation by Ukraine of differential duties on imports of alcoholic beverages from the Republic of Moldova.

• The Ministry of Economy has continued the previous practice of facilitating participatory and consultative process to debating draft laws, draft regulations and policy documents. Thus, the Working Group of the State Committee to regulate business activity and the advisory council of the Ministry of Economy were called on several occasions to review and consult the draft laws. At the same time, there are cases when the opinions of the representatives of the business community regarding the appropriateness of amendments of the legislation are not taken into account by the state authorities. For example, the fiscal policy measures through which the share of VAT in agriculture is increased22.

2.2. Policies for competitiveness and SME development Progress and shortcomings Impact Indicators: 16Law No. 160 of 22.07.2011 on Regulating through Licensing the Business Activity. OJ No.170-175/494 of14.10.2011. 17OJNo.143-148/530 of13.07.2012 18OJ No.143-148/546 of13.07.2012. 19OJ No.126-129/457 of22.06.2012. 20OJ No.104-108/369 of01.06.2012. 21Signed in Sankt Petersburg on October 18, 2011. 22http://www.infotag.md/reportaje/596225/

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• During the first half of 2012, the share of industry in the GDP amounted to 14.5%. (The planned impact indicator -industry share growth in the GDP up to 15% in 2014). • During January-July 2012, the growth of the industrial output was 0.2% compared to the same period of 2011. In 2011, the industrial output registered a growth by 7.4% compared to the same period of 2010. (The planned impact indicator - industrial output growth by approximately 10% annually). • In January-June 2012, the investments in long-term tangible assets decreased by 0.6%. (The planned impact indicator - growth of the amount of investments in fixed assets on by an average of 13% annually). Reform measures to improve competitiveness policies and SME development. • The Strategy to Develop the SME Sector for the years 2012-2020 was approved in 2012.23

According to the Ministry of Economy, the Strategy to Develop the SME Sector for the years 2012-2020 and the Action Plan to Implement this Strategy for the years 2012-2014 provide the long-term and mid-term policy framework as regards the development of the micro, small and medium enterprises in the Republic of Moldova in the context of transition from the economic development model, based on consume, to the new paradigm, which is oriented towards exports, investments and innovations, the political goal of European integration and global economic trends.

• A series of national programmes to support the SME sector are underway or implemented already. Among them: the Credit Guarantee Fund (FGC), the Programme to Attract Remittances to the Economy - PARE 1 +1, the National Programme of Youth Economic Empowerment (PNAET), the "Supporting the Implementation of the Migration and Development Component of the EU-Moldova Partnership for Mobility", "Effective Business Management" Continuous Training Programme (GEA), Programme to support the small and medium enterprises sector, funded by the Government of Japan etc.

• The Regulation on the methodology to hold the competition for selecting residents and investment projects for the industrial park as well as the model Report on the activity carried out in the industrial park are approved24.

• Economic forums, exhibitions and conferences with the participation of SMEs, including the Moldova - EU Economic Forum, the SME International Forum 2011, Moldovan-German Forum for financing small and medium-sized enterprises, the Economic Forum of the countries that are members of the Central European Free Trade Agreement (CEFTA), Moldovan-Turkish business forum, Moldovan-Russian economic forum etc. are regularly organized.

• The new version of the draft law on small and medium enterprises is not approved. 2.3. Management and privatization of the public property Progress and shortcomings Planned impact indicators: • Collect around 1.5 billion MDL revenues into the state budget following the privatization and management of public property. 25

23Government Decision No. 685 of13.09.2012 on approving the Strategy to Develop the SME Sector for the years 2012-2020. OJNo.198-204/740 of 21.09.2012. 24Government Decision No. 652 of01.09.2011 on Approving the Regulation on Holding the Contest to Select the Residents and Investment projects for the Industrial Park, as well as the Report-Model on the activity carried out within the industrial park. OJ No.148-151/723 of 09.09.2011.

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• Create 10 public-private partnerships. Reform measures: • A series of laws on the public-private partnerships, including Government Decision No. 438

of 19.06.2012 on Initiating Public-Private Partnership Project for the Concession of the S.E. "Chisinau International Airport"26,Government Decision No. 419 of 18.06.2012 on Approving the List of Assets that are State Property and the List of Works and Services of National Public Interest that Are Proposed to the Public-Private Partnership27, Government Decision No. 245 of 19.04.2012 on the National Council for the Public-Private Partnership28,Government Decision No. 91/13.02.2012 on the Public-Private Partnership for Building Homes and Buildings for Social-Cultural Activities29etc. were approved.

• The Action Plan to streamline the process of management and privatization of the state assets was approved30.

• The list of state assets to be privatized, an annex to Government Decision No. 945 of august 20, 2007 "On measures to Implement Law No. 121-XVI of May 4, 2007 on Management and Privatization of Public Property"31 is modified.

• The draft law amending Law No. 121-XVI of May 4, 2007 on the Management and Privatization of Public Property, including the update of the list of goods that are not subject to privatization(Annex to Law No. 121-XVI of May 4, 2007) was not approved. Note -deadline -the third and fourth quarters, 2011.

• The Concept on creation and operation of the Public-Private Partnership Government Network was not approved. Note -deadline- third quarter of 2012.

• The transparency in the work of the Public Property Agency is ensured. The composition of the boards of joint stock societies with managed states hare and boards of the subordinated state enterprises is made public. Access to information on the results of financial and economic activity of the state owned enterprises is granted.

2.4. Budgetary-fiscal policy and public funds management Progress and shortcomings Impact Indicators: • Growth of the share of investments in the expenditures of the national public budget. • Reduction of the tax burden. Reform Measures: • The absolute majority of the measures that are included in the action plan are to be taken

during the fourth quarter of 2012 - fourth quarter of 2015. 2.5. Agricultural-industrial policies

25By June 30, 2012, 274 enterprises with a registered capital worth 6.2 billion lei and 161 companies with a registered capital in the amount of 5.85 billion lei, of which state-owned - £ 3.75 billion or 64 per cent, were included in the Public Patrimony Register, kept by the Public Property Agency under the Ministry of Economy. Of the total number of companies, 113 companies have full or majority state capital. According to a report by the Ministry of Finance on the financial-economic activity of the state enterprises and joint stock companies owned by the state or with the majority of shares belonging to the state, 112 of the 178 state enterprises and 35 out of the 72 joint stock companies, subject to monitoring, registered operating losses in the first half of the year. Their biggest losses were registered by CFM, Air-Moldova and Chisinau International Airport. 26OJ 126-129/466, 22.06.2012. 27OJ 126-129/457, 22.06.2012. 28OJ 82-84/281, 27.04.2012. 29OJ 34-37/116, 17.02.2012. 30Government Decision No. 586 of29.07.2011 on measures related to streamlining the process of management and privatization of the state public goods. OJNo.128-130/656 of05.08.2011. 31Government Decision No. 537 of20.07.2012 on Amending Government DecisionNo.945 of August 20, 2007. OJNo.155-159/588 of27.07.2012.

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Progress and shortcomings Impact indicator - growth of the agriculture output per hectare by approximately 7% annually32. In January - June 2012, the global agricultural output in household of all categories (agricultural enterprises, farms and households of the population) went down by 2,1% compared to the same period of 201133. In 2012, the productivity in the agricultural sectors will be lower than the one registered in 2011. Reform measures: • The Government Decision on approving the national brand "Organic Agriculture - the

Republic of Moldova" and the Regulation of Use of the National Brand "Organic Agriculture - the Republic of Moldova" has been drafted, but not approved yet.

• The legal framework for the operation of the National Office for Vineyard and Wine has not been drafted and approved. Deadline- third quarter of 2012.

• In order to simplify the procedure for changing the land use for agricultural land with low creditworthiness amendments are made to the Land Code34. On the other hand, Government Decision No.1451 of December24, 2007 "On Approving the Regulation on the Land Assignment, Change of Use and Sharing" is not changed. Deadline - second quarter of 2012.

• The Strategy to develop rural extension services for the years 2012-2022 has been drafted and approved.35

• In order to implement the provisions of the Agreement between the Republic of Moldova and the European Union on the Protection of Geographical Indications, a series of laws, including Order No. 129 of 08.07.2011 on Delimitation of Geographical Areas for Wine-Making with Geographical Indication and Designation of Origin36, Government Decision No. 362 of 06.06.2012 on Tendering Awards to the winners of the contest for the creation of national symbols associated the protected geographical indications, protected designations of origin and guaranteed traditional specialties37, Government Decision No. 485 of 05.07.2011 on organizing and holding the contest for the creation of national symbols associated the protected geographical indications, protected designations of origin and guaranteed traditional specialties were approved38.

• The Draft Government Decision on Approving the Land Strengthening Strategy for the years 2012-2027 is not approved. Deadline - third quarter of 2012.

• To make the national regulations comply with the European one, 7 technical regulations are approved: Government Decision No. 538 of 20.07.2012 on amending and supplementing "Jams, jellies, marmalades, purees and similar products" Technical Regulation39,Government Decision No. 473 of 03.07.2012 on approving "Beer and beer-based drinks" Technical Regulation40,Government Decision No. 317 of 23.05.2012 on approving the "Definition, description, presentation and labelling of alcoholic beverages "Technical Regulation41,Government Decision No. 268/26.04.2012 regarding the approval of the

32The impact indicator is not relevant. 33http://www.statistica.md/newsview.php?l=ro&idc=168&id=3816 34Law No. 108 of 11.05.2012 to amend the Land Code No.828-XII of December 25, 1991. OJ No.120-125/398 of15.06.2012. 35Government Decision No. 486 of05.07.2012 on Approving the Strategy to develop rural extensions services for the years 2012-2022. OJNo.143-148/537 of13.07.2012. 36OJ 118-121/917, 22.07.2011. 37OJ 113-118/400, 08.06.2012. 38OJ 114-116/561, 15.07.2011. 39OJ 155-159/589, 27.07.2012. 40OJ 135-141/519, 06.07.2012. 41OJ 104-108/367, 01.06.2012.

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"Mineral fertilizers. Essential Requirements" Technical Regulation42,"Government Decision No. 18/09.01.2012 on amending and supplementing the "Natural Honey "Technical Regulation, approved by Government Decision No. 661 of June 13, 200743, Government Decision No. 708 of 20.09.2011 on approving the "Analytical methods for the wine-making "Technical Regulation44, Government Decision no. 399 of 08.06.2011 on amending and supplementing the "Toys. Safety requirements "Technical Regulation, approved by Government Decision No. 83 of January 31, 2008.45

2.6. Infrastructure and transport Progress and shortcomings Impact Indicators: • The number of road accidents recorded in 2014 lower by 20% compared to 2010; • The number of road traffic accidents due to alcohol use or speeding recorded in 2014 less by 50% compared to 2010; • The number of road accidents committed because of technical malfunctions of motor vehicles recorded in 2014 less by 50% compared to 2010; • Increase the share of the renewable energy sources in total by an average level by 0.5 to 1 percentage points per year; • Increase the energy efficiency by an average of 1.8 to 2% annually; • Increase the share of alternative energy use in 2015 up to 10%. Reform Measures: • The draft Law on Domestic Shipping is approved by the Government and submitted to the

Parliament to develop shipping, extend the commercial fleet shipping and develop ports in the Republic of Moldova.

• The draft Government decision on allocating the land on the bank of the Prut River to the "Ungheni River Port "State Enterprise, the draft Law on Introducing Amendments to the Underground Code on the creation of the naval shipping, which will be used to fund the works to maintain the fairway on the inland waterways of the Republic of Moldova were not approved.

• The draft law amending the Law of Civil AviationNo.1237-XIII of July 9, 1997 was not approved.

• According to the action plan, the construction of the pipeline, which would interconnect the gas transport systems of the Republic of Moldova and Romania on the Ungheni - Iasi direction, is to be completed during the fourth quarter. In reality, though, the construction of the pipeline that would interconnect the gas transportation systems has not begun and is scheduled for February 2013.46.

• The Energy Efficiency Fund is created by Government Decision No. 401 of 12.06.2012 on the Energy Efficiency Fund and the Regulation of organization and operation of the Fund is approved47.

42OJ 88-91/309, 11.05.2012. 43OJ 7-12/38, 13.01.2012. 44OJ 164-165/804, 04.10.2011. 45OJ 99-101/465, 17.06.2011. 46http://www.OJldpres.md/News.aspx?NewsCod=8961&NewsDate=15.10.2012 47OJ No.126-129/448 of 22.06.2012

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• The draft law amending the Law on Renewable Energy No. 160-XVI of July 12, 2007, by its adjustment to the European requirements was not approved. Deadline - second quarter of 2012.

• The draft law on Heating was not approved. Deadline - the third quarter of 2012. 2.7. Quality infrastructure, industrial safety and consumer protection Progress and shortcomings Impact Indicators: • Amount of exports up by8 per cent annually. • Increase the amount of goods exported to the European markets by an average of 10% annually. • The number of settled complaints and appeals on consumer rights. Reform measures: • The Protocol on introducing amendments and supplements to the Agreement on cooperation

in the field of ensuring industrial security for the dangerous industrial objects of September 28, 2001 adopted in St. Petersburg on October 18, 2011 is approved and submitted to the Parliament for information purposes.48.

• The practice permit for carrying put activities and/or works in the industrial security field is approved by order of the Ministry of Economy.

• The Agency for Consumer Protection is created by Government Decision No. 936 of 09.12.2011 on the Creation of the Consumer Protection Agency and on Approving the Regulation, structure and number of employees of the Agency for Consumer Protection, which also provides for approving the regulation, structure and number of employees of the respective Agency49.

• The Regulation on the manner to perform the activities of market surveillance by the Consumer Protection Agency is approved in order to regulate the manner of verification of compliance with the legislation, technical regulations, conformity of products and services provided with the prescribed requirements, rules and regulations for conducting commercial activities50.

• The Law on unfair terms in contracts concluded with the consumers creates the framework necessary for applying the provisions of the European Communities Council Directive 93/13/EEC of April 5, 1993 on unfair terms in the contracts concluded with consumers, published in Official Journal of the European Union (OJEU) No. L 95 of April 21, 199351.

• Government Decision No.1646 of December 31, 2003 "On creation of the accreditation system in the field of product conformity assessment" according to the new Law on the accreditation activities and conformity assessment is not changed. Deadline - the third quarter of 2012.

48Government Decision No. 246 of 19.04.2012to approve the Protocol to introduce amendments and supplements to the Cooperation Agreement in the field of industrial safety at dangerous industrial objects, of September 28, 2001, adopted in Sankt-Petersburg, October 18 2011. OJNo.82-84/282 of27.04.2012 49OJ No.222-226/1022 of16.12.2011. 50Government Decision No. 597 of13.08.2012 to approve the Regulation on the manner to supervise the market by the Agency for Consumer Protection. OJNo.175-176/663 of21.08.2012 51Law No. 256 of09.12.2011 on the abusive clauses in the contracts concluded with the consumers. OJ No.38-41/115 of24.02.2012.

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2.8. Information technology and communications Progress and shortcomings Impact Indicators: • Increase the total amount of sales in the ITC sector by 8 billion USD by 2014. • Increased by the end of 2014 the amount of exports of ITC products and services by 450

million U.S. dollars. • More transparent and effective governance, modernized education and health sectors, cultural

heritage available online, mass practiced electronic commerce. • Reaching by the end of 2013 a penetration rate of 20% for the broadband Internet at mobile

points. • A DVB-T (digital TV) multiplex with national coverage (70%) operational in 2012. • Availability of broadband Internet access in every locality through at least two providers of

electronic communications services by 2014. Reform measures: • The Government Decision on developing networks and electronic communications services

with wireless broadband access, which allows the use of available radio frequencies/channels of the 2500-2690 MHz frequency band and 3600-3800 MHz frequency band in order to develop networks and electronic communications services in broadband wireless access, was developed and approved52.

• The Universal Postal Convention and the final Protocol53,the Arrangement on payment postal services, adopted in Geneva on august 12,200854, the eighth Additional Protocol to the Constitution of the Universal Postal Union, adopted in Geneva on august 12, 200855, the First Additional Protocol to the General Universal Postal Union, adopted in Geneva on august 12, 200856were all ratified.

• The draft law on post and the draft law on the Strategy to develop the postal communications were not approved. Deadline - third quarter of 2012.

3. Conclusions and recommendations. • At present, as strange as it may seem, the priorities set in the Economic Stabilization and

Recovery Programme of the Republic of Moldova for 2009-2011 – stabilize and optimize the public funds, re-launch the business activity and ensure efficient and fair social protection - are up to date.

• It is of utmost importance to complete as soon as possible the reforms in the field of competition, which are a prerequisite for ensuring an attractive business climate for domestic and foreign investors, subjects to the SME sector. It is important to carry out reforms and measures to ensure de-monopolization of the economic sectors in the country. Some of them have been proposed already in the Economic Stabilization and Recovery Programme of the Republic of Moldova for the years 2009-2011, but they were not completed.

• It is imperative to create conditions for visible progress in the field of private property protection. The Republic of Moldova needs a good image both externally and internally to

52Government Decision No. 365 of06.06.2012 on developing public electronic communications network and services with broadband radio access. OJ No.113-118/403 of08.06.2012. 53Law No. 18/23.02.2012 to ratify the Universal Postal Code and the Final Protocol. OJ 60-62/191, 30.03.2012. 54Law No. 17 of 23.02.2012 to ratify the Arrangement on Payment Postal Services. OJ No.60-62/189 of30.03.2012. 55Law No. 16 of 23.02.2012 to ratify the eighth Additional Protocol to the Constitution of the Universal Postal Union. OJ No.60-62/187 of30.03.2012. 56Law No. 15 of 23.02.2012 to ratify the First Additional Protocol to the General Regulation of the Universal Postal Union. OJ No.60-62/185 of 30.03.2012.

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help attract not only foreign investors but also to urge the population to live and work in the Republic of Moldova safely.

• To synchronize the rhythms of the accomplished reforms, the state institutions, the business community and the civil society should cooperate and reach consensus even in the most difficult situations. Lack of cooperation erodes the most fragile results of reforms that are promoted by the Government and which are expected by the population. Lack of cooperation between the state institutions in promoting the economic reforms is a negative signal for the entire society and represents a dangerous example for any reforming government.

• It is important to intensify efforts to reduce the dependence of the Republic of Moldova in certain areas, be it markets to sell goods and services or energy sources.

• Stronger measures are needed to modernize the country's economy, including the transfer of technology, experience, expertise and financial infusions. A special role should be given to human resources, by promoting the personnel following the principle of meritocracy.