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Transparency increases business from rural localities

2017.03.27 Economy Victor Ursu Print version

Transparent decision-making process would boost the investment and the capital input in Moldovan localities. Local and foreign capital ushers have a decisive role in the economic development of the country's regions. This is the opinion expressed by the IDIS “Viitorul”, expert, Viorel Pirvan in the program "15 minutes of economic realism".

Local governments can prepare own economic and social development strategy. However, the funds available to local authorities are limited. Some of these funds are allocated from the state budget, another part comes from taxes paid by taxpayers, but they are inadequate to fund expensive programs for infrastructure development, and implementation of projects with social impact. In these circumstances, the only viable solution for authorities is to realize measures and programs attractive to investors and attract funding. However, in the context of the EU-Moldova Association Agreement, local communities can benefit from new development opportunities through European structural funds.

In this context, in order to increase the attraction of local governments, public authorities should be informed on the initiation of preparation for a decision, especially if it regulates the business activity and businesses should promote their own point of view, to tackle the problems faced in practice. It is also necessary to ensure the access of all stakeholders on draft decisions and public consultation before adoption.

A key issue, according to Viorel Pirvan is fees or the elaboration and adoption of decisions on local taxes should be transparent. "Local governments must ensure a balance between the amount of taxes as sources of local budget and attractiveness of these charges for potential investors who might choose another location where to conduct their business".

A problem that persists at the local level, says expert, is the uncertain situation of the ownership of administrative territorial units (ATU). State properties are indistinguishable from those of ATU. Moreover, not all ATU goods are recorded in the real estate register. Some of them are not accounted and evaluated at the real price. It's also the uncertain legal status of networks, engineering facilities, aqueducts, pipelines and objects of the energy system.

In conclusion, Viorel Pirvan believes that in order to ensure transparency is needed to provide the access of the population to government data, placing relevant information and online transmission of local government meetings.

The show is performed by IDIS “Viitorul” in partnership with the Radio Free Europe.

For further details, please contact the Press officer, Victor URSU at: or by phone 069 017 396.

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