|
Moldova: politics and economy
 Moldova, former Soviet Socialist Republic, is a young parliamentary democratic Republic born in 1991 as result of deep reform process all over the country, as continuation of Gorbaciov’s politics of glasnost. The sovereign and independent, unitary and indivisible State, it is regulated by the Constitution, approved by the referendum of July 1994.
In Republic of Moldova is in force the separation of powers. In 1995 it was created the Constitutional Court, which guarantees the formal observance of Constitution and power division into three branches: legislative, executive and judicial. The legislative power is represented by unicameral Parliament consisting of 104 members elected directly every four years with proportional representation with a passing barrier of 4%. The main duties are the control of executive branch, issuing of laws and approval of state budget.
The president of Republic represents the country and is guarantor of sovereignty of national independence, of territory unity and state integrity. Is elected with direct suffrage and is vested with exclusive powers: he assigns both the Prime Minister and Council of Ministers. The public authorities are the Parliament, the President of Republic, the Government, the Public Administration and Legal Authority. The Government assigns the prefect for each region and one prefect for city of Chisinau. As representative of Government, the prefect controls the activity of town and region councils and the activity of mayors, so that it is performed in accord with legislation.
Under administrative profile the territory is divided into 10 cities and 40 districts. The cities and villages are autonomous units with own administration, directly elected, and are coordinated by «council of district». The districts are territorial-administrative units consisting of villages and towns associated by community of traditions, economic, social, cultural relations and infrastructure. The districts, which center is the town with the same name, are: Balti, Cahul, Chisinau, Edinet, Lapusna, Orhei, Soroca, Taraclia, Tighina, Ungheni. The urban fabric consists of 1.615 villages, where lives 53% of population. One of Moldova’s characteristics is that the most part of rural population is concentrated in big villages (of 1.000-2.000 inhabitants everyone), even if there is a lack of adequate infrastructures and social services, in a general context of multi-functional systems, highly unbalanced by the transition to market economy.
Moldova participates at CIS (Commonwealth of Independent States) since 1994, but did sign neither security agreements nor treaty of custom unity. It also participates at GUAM, a coalition consisting of Georgia, Ukraine, Azerbaijan and Moldova, having the aim to consolidate economic relations between these countries, in order to create a kind of «Euro Asiatic passage», bridge between Europe and Asia. Since 1994 Moldova is participating at NATO Program «Partnership for Peace» and since 1995 is member of Council of Europe.
Economic indexes
The industrial system of Moldova, inherited from former soviet period, is nowadays on the verge of bankruptcy due to noncompetitive production, lack of investments and outlets; the only possibility to restore the economy is connected to substantial inflow of foreign capital. Actually, Republic of Moldova has scarce resources to allot to the industrialization: agricultural products, sugar, tobacco, wool, silk, hemp, cement, glass, mineral water (the last ones insufficiently exploited). From about 5.000 enterprises operating nowadays in Moldova, less than a half are factory-farm enterprises.
During the last decade, a heavy impact have had the public property on capital of main enterprises of Republic, where, nevertheless, the private property is increasing.
Foreign investments
In Moldavia è da segnalare la presenza, come nella maggior parte dei Paesi dell’Europa Centrale e Orientale, di cinque Zone franche in cui si possono svolgere le seguenti attività: costruzione, produzione industriale ecologicamente pulita, coltivazione di prodotti agricoli, vendita all’ingrosso e al dettaglio, servizi alberghieri e di ristorazione, intermediazione finanziaria, operazioni immobiliari, servizi pubblici e privati. La tassazione degli utili corrisponde al 45-50% delle imposte previste dallo Stato e i prodotti e i servizi sono esenti da IVA e dazi doganali. Chi inoltre investe una somma pari ad almeno 250.000 USD ha diritto all’esenzione della tassa sui redditi per cinque anni.
By the October 1, 2000 it was registered 2.050 enterprises, with participation of foreign capital, 1.394 of which with mixed capital and 656 with full foreign capital. The 1.165 enterprises with international contacts are divided into fields as follows: 717 wholesale and retail trade, service and maintenance stations; 165 processing industry; 80 real estate transactions; 63 transportation, warehousing and communications; 22 financial activity. The main countries the foreign investments are arriving from are: Spain (320,5 mln. MDL), U.S.A. (51,0 mln. MDL), Germany (37,9 mln. MDL) and France (35,3 mln. MDL).
It should be mentioned that in Moldova, like in the most part of central-European and eastern countries, there are five free-trade areas where one can perform the following activities: construction, ecologically pure industrial production, agricultural products growing, wholesale and retail trade, hotel business, financial intermediation, real estate operations, public and private services. The taxation of profits corresponds to 45-50% of dues provided by State, and products and services are not subjected to VAT and custom duties. Who is doing an investment to the amount of about 250.000 USD has exemption from income tax for a period of five years.
The Tacis program
The Republic of Moldova has become member of the most important international economic and financial organizations, like International Monetary Fund, International Bank of Reconstruction and Development, European Bank of Reconstruction and Development. Since 1991 avails itself of technical assistance of European Union in the frameworks of Tacis program– Technical Assistance to the Commonwealth of Independent States (Regulation CEE N° 3906/89).
In effect, Tacis is a program of technical assistance based on transfer of know-how, knowledge, experiences and technical support and is aimed to promote the development of base layer of a modern market economy. Among projects of mentioned program are: Support to institutional, juridical and administrative reforms; Harmonization of standardization system according to requests of WTO and APC; Cross-Border cooperation; Assistance for small and medium business; Promotion of health and prevention of diseases; Development of social politics; Development of infrastructure networks; Development of rural economy.
|
