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The unpredictability of the authorities and corruption scare investors

2017.08.07 Economie Victor Ursu Print version

The Republic of Moldova has failed to boast an attractive business and investment environment. In recent years, our country has regressed in the areas of corruption, the quality of governance, justice, macroeconomic stability and the efficiency of the labor market, which also removes capital investors. It is the opinion expressed by the IDIS Viitorul economist, Ion Tornea, within the "15 minutes of economic realism" program.

The Republic of Moldova is far from being considered by most foreign investors as an attractive location for capital placement. The main issues related to the investment climate are high corruption, state policy instability in the field of business regulation, government instability, inefficient state bureaucracy, access to finance, macroeconomic instability (high inflation). Most of the countries in the region, more recently those who have joined the EU or are inclined to this status, have advanced much in these chapters. The Republic of Moldova is in direct competition with the countries in the region, and the fact that we are better at the business / investment environment compared to Tajikistan or some African countries does not help us.

"The business outlook for business declined considerably after 2009. Thus, if in the period 2005-2011 the average annual gross profit margin was approx. 6%, it fell practically continuously in the coming years - 2.2% in 2012, 1.8% in 2013, 1.4% in 2014 and 1.2% in 2015 (less than 5 times). FDI of Russia fell, representing the country with the largest share of total FDI stocks in Moldova. In the last two years, investments in the banking sector, which traditionally represent the sector with the largest FDI in the Republic of Moldova, have been drastically reduced due to bank fraud and the crisis (including image) that have followed in this sector, "said Tornea.

In conclusion, in order to improve the investment climate, the economist recommends: strengthening the rule of law conditions, diminishing corruption, ensuring the independence of the judiciary, ensuring real investor protection, harsh counteraction of business takeovers / attempts (raider attacks), reviewing the legislation Working relationships that are burdensome for the employer, and facilitating the temporary employment of aliens who possess the necessary skills and improving governance and reducing the possibilities for arbitrary and non-transparent decisions in different areas of business regulation.

The show is made by IDIS Viitorul in partnership with Radio Free Europe.

For further details, please contact the press officer, Victor URSU, at the following address: or at 069017396.

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