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Socioeconomic Commentaries


Inflation rate gives headache
Iurie Gotisan, 16 December 2004

This year we would over-perform on economic growth and under-perform on inflation

Currency Market: New Challenges
Veaceslav Negruta, 1 December 2004

The US Dollar's spectacular fluctuations against other foreign currencies put financial markets and analysts on fire, also testing the nerves of some actors on the local market

Financial rating and foreign competitiveness of Moldova
Iurie Gotisan, 18 November 2004

In spite of economic growth, FITCH did not raise the country rating for the Republic of Moldova, on the grounds the pace of reforms is to slow, while foreign debt is too big

What's in their for us in the draft budget for 2005?
Iurie Gotisan, 3 November 2004

Electoral promises made in the draft budget for year 2005: raising minimal wages, additional spending for budgetary institutions, indemnifying pensions, raising allocations and compensations

New inequality
Anatolii Gudym, 20 October 2004

In the mid of 2004 only 6.2% of total household income volume fell to the share of 20% less secured families and 44.2% - to the share of 20% the most well-to-do families. Recent years revival of the dynamics has reduced a poverty zone in Moldova but it has not removed contrasts of inequality

Indebtedness threatens the stability of domestic economy
Iurie Gotisan, 29 September 2004

Arrears increasingly impinge on economic system which in the end may destabilize still fragile economy. Arrears account for 30% of the GDP, and this despite its growth in the recent years and write-off of "historic" debts especially to state-owned enterprises via Prime-Minister decrees

Economic growth does not connote higher human development
Ana Sirbu, 20 September 2004

Evolution of the Human Development Index for Moldova does not follow the economic and social policy objectives of the country

Recent State Initiative on Land Consolidation
Felicia Izman, 15 September 2004

Since its coming to power in February 2001 the new Moldovan communist leadership has often expressed its nostalgia for the old times of collective-type agriculture and criticized the National Land Program (NLP) that dismantled this system by creating a private-based agriculture sector with hundreds of thousands of new individual land owners and thus a highly fragmented one

Chain reaction triggered by skyrocketed prices on fuel
Iurie Gotisan, 8 September 2004

Skyrocketed prices on fuel shall in the long run affect all the businesses where transportation accounts for the great part of the final cost, as well as those where oil is used as a raw material

Energetic dependence
Iurie Gotisan, 3 September 2004

For a while now the energetic sector that is of vital importance for the economy has become a battle field where political and economic interest collide. On the one hand, there is a struggle between domestic players in the field, and on the other there is an increasing pressure from several Russian companies seeking to extend their spheres of economic influence in Moldova

Education - where is it heading?
Ion Basiul, 3 September 2004

Drifting towards market economy, Republic of Moldova is confronted with numerous political, economic and social problems. Far from being encouraging, especially given the worsening situation in education, which after all is the main pylon of the human development in Moldova

Moldova - Transnistria: Rules for Business
Liliana Agarcova, 27 July 2004

A meeting of businessmen from Moldova, Transnistria and Gagauzia (Cocieri/Dubasari) was scheduled for early July. There have already been several meetings of this kind. They are held actively, but rarely - politicians hamper

Echo of the bread crisis
Anatolii Gudym, 14 July 2004

Many people still remember the troubles of the wheat and bread crisis of 2003: bad wheat harvest, protracted reaction of the Government, "bread mafia", abrupt increase (39.8% a year) of prices for bread, emergency actions of the Parliament, Government and economic units to import wheat. One as well could think the situation is under the control now

Challenges faced by the National Bank
Iurie Gotisan, 30 June 2004

Undoubtedly, one may find Moldova's macroeconomic achievements (given the economic growth registered in the last three years) acceptable, as banking sector managed to steer away from a system crisis despite the difficulties it faced

Employment is the Key Issue
Galina Selari, 16 June 2004

The economic growth, its quality, rate, parents and sustainability is one of the vexed question today. And it is widely discussed by politicians, economists and journalists. The issues of export-import, migrants' remittances and others are put on the discussion

Despite the constant economic growth, people think they are poorer
Iurie Gotisan, 2 June 2004

On May 19 Government approved PRSP, a document including social economic policies to be implemented over 2004-2006 to ensure sustainable economic growth and reduce poverty. In the eyes of many Republic of Moldova is the poorest country in Europe

Domestic foreign exchange market: on-going volatility
Iurie Gotisan, 12 May 2004

In the last two weeks Moldova Lei constantly appreciated against USD by 11.2% and reached its highest in the last five years being traded over 11,5 Lei per USD. According to the National Bank experts and economy-watchers the fluctuations are largely due to strong supply of foreign currency, mainly money sent home by Moldovans working abroad

EU enlargement: lessons for the Republic of Moldova
Iurie Gotisan, 5 May 2004

As of May 1, ten new countries that had successfully passed the "admission test" joined EU and became full-rights members. It wouldn't be long until Poland, Lithuania, Latvia, Estonia, Hungary, Czech Republic, Malta, Cyprus and Slovakia would enjoy the benefits of the marriage between East and West planned ahead a decade ago

1000 and 100 days of the Government of V. Tarlev
Anatoli Gudim, 28 April 2004

On April 19, 2001 Parliament has quickly - in a half an hour - approved the Programme of activity of the next, the 9th beginning from 1990, Government of the Republic of Moldova. Contrary to expectations of skeptics (despite multiple changes to the team made during the "game") it is this government that turned out to be a long-liver

Moldovan's agriculture structural deficiencies
20 April 2004

What is striking is that in such agricultural country as Moldova is, agriculture lags far behind its neighbours both in terms of development and technical equipment. Overall economic efficiency of Moldovan agriculture is very low, out of the total agricultural enterprises only 35% are lucrative

"Investment Boom": joining together banking capital and companies in real sector
Iurie Gotisan, 14 April 2004

Amidst recurring debates on economic issues in Moldova, a recently passed law has been unduly overlooked, namely the Law on Financial-Industrial Groups. At a first glance it seems to be a worthy piece of legislation once it seeks to boost investments in economy and establish competitive manufacturing branches

Crisis aftermath
Iurie Gotisan, 30 March 2004

The recent developments in the drought crisis make a price hike on bread quite inevitable. Definitely the skyrocketed prices would be presented as a phenomena affecting each one of us. Moreover, when it comes to food any slight increase in prices affects directly vulnerable strata especially the elderly

Liberalisation of capital flows
Sorin Hadarca, 16 March 2004

Liberalisation of capital flows has been right from the beginning a rather controversial issue in the Moldovan foreign exchange policy. Restrictions on capital flow imposed on Moldovan citizens stem from the efforts undertaken by authorities at the dawns of independence in order to keep a stable exchange rate of the national currency

Discord among authorities and domestic producers
Iurie Gotisan, 25 February 2004

For domestic producers "Produced in Moldova" exhibition opened on February 10 was a good opportunity to complain about deficient laws, high taxes, tight competition with foreign importers, and not less important bureaucracy; rather than show off their products, the great majority of which have been presented earlier anyway

Inflation in the Republic of Moldova: causes and effects
Iurie Gotisan, 9 February 2004

National Bank of the Republic of Moldova is responsible for the monetary and foreign exchange policy. Under its bylaws NBM's main goal is to "realise and maintain the stability of the national currency that ultimately provides reduction of the inflation rate, ensures the general level of prices and of the exchange rate of MDL"

2003: we managed to hold out, but failed to break through
Anatol Gudim, 16 January 2004

The Government thinks "2003 will go down in history as a year of new achievements in socio-economic development of the Republic of Moldova" (V. Tarlev's speech in the Parliament, 26.12.2003). But Fitch Ratings, an international agency that the Government respects (London/New York), evaluated, nonetheless, 2003 as "another disappointing year for Moldova






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