Moldova's economy needs innovation and competitiveness

Types of economic systems, the characteristics of market economy, competition, property, economic freedom, the Moldovan transit and ways of economic growth were some of the issues revealed in the course "Current economic growth model".

The course aimed to explain the current economic growth model, its organization and  functioning in Moldova in conditions with a very concentrated economy, monopolized and with no independent regulation. According to Tatyana Laryushin, the existing model is a model where the economic growth is provided by the household consumption financed by remittances of Moldovan workers who became national export resources. "Not obtaining help from the state, citizens left for other economies, because there their work has a higher price than at home," said the expert IDIS "Viitorul". Veceaslav Botnari, one of the participants in Political Training School believes that, unfortunately, the benefits of the economic growth in our country level are absorbed by a relatively small category of people, while the welfare of rest of the population remain the same or even visibly decreases.

Among the barriers that prevent economic development of Moldova are included: the political instability, which, according to the Global Competitiveness Report 2011-2012, represents 20.3% of all factors issues in the report, access to finance and corruption that is 13%. We mention in this context that Moldova takes the 93 position in the top of the competitive countries in the world, from  142 countries.

With the involvement of the private sector in the decision making process, the strengthening of democratic institutions and the development of regulatory instruments in the field, Moldova will be able to build a new and competitive economy. "We have great land as Russia has? No. We have strong potential? No. What remains then? Work, which must be oriented so as to depend on new knowledge and competitiveness. We sailed a long time without a direction of development. Now, the Republic of Moldova needs a new model that will allow us to move to another position and to register a GDP of $ 1,600 per capita. We want to move from economic growth model based on consumer to a economic model based on innovation” concluded the economist at the end of the course.

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The project "Advanced Learning for Highly Motivated Young Political Leaders in Moldova" runs from September 2011 - August 2012 and aims to train young political leaders in Moldova, training based on applying interactive learning methods. Theoretical courses are held weekly by a team of experts from academia, business and public administration, career diplomats and other public actors.

Material prepared by Veverita Ana - Maria, Project Assistant, Institute for Development and Social Initiatives (IDIS) „Viitorul”, phone: 221844, e-mail: ana.veverita@viitorul.org