The decline through which the economy of Moldova passes, has occurred due to the lack of a consistent reforming policy and an efficient mechanism for its implementation. For the urgent recovery of the situation we propound a coherent, reforming program with a broad envisioning of the modern economy, incorporated in the national context. The program has as its core 4 key-moments that ensure the achievement of the principle -not the person for the state, but the state for the person.
I. Formation of a state of law with real division of powers in legislative, judicial and executive as a principle of efficient governing and guarantee of observance of the human rights. The reforming of the 3 branches of power presupposes the election of a professional, honest and competent Parliament, establishing of an independent and impartial justice, setting up of an efficient Public Administration by means of modernization of the administrative machinery, combating of the favoritism and the corruption of the civil servants, financial system transparency ensuring, an actual decentralization of Public Administration, offering the mayors the right of financial administration of local financial funds.
II. The State’s major role is to ensure the economic and social security of the population, to improve the legislation, to adopt a new tax and monetary policy, appropriate to the market economy.
III. The increase of the living standards is possible only by developing the production sector. Industrial re-equipping, ensuring of the energetic security of the State, development of the land market are the necessary pre-requisites for the capital market development and social sphere reform.
IV. The essence of the foreign policy of the Republic of Moldova is the consolidation of our State as an independent, unitary and indivisible one, having advantageous relations with the States all over the world in strict accordance with the major national interests, integration of the Republic of Moldova in the international structures, the ones of the European Union in particular.
I. Forming a democratic state of law
I (1) Electing a professional and competent Parliament that will outline and consistently promote the law reform with the view to creating a legislation adequate to a State of law and to a free and democratic civil society integrated in the world values system. In order to achieve these desiderata the following is necessary:
- to adopt a Constitution where the gaps of the existing one will be annihilated:
- sanctioning every man’s right to life;
- restriction of the right to inviolability of home and correspondence only in terms stipulated in the Constitution;
- restriction of some rights and liberties in strict accordance with the provisions of the European Convention;
- issuing of the arrest warrant by the tribunal and not by the prosecution;
- exclusion of the Parliament’s right to appoint the Attorney General, what means to recognize the fourth power in a state;
- to bring the role and functions of the prosecution in accordance with the exigencies of the State of Law, the stipulations of the European Convention and the commitments to the European Council;
- exclusion of neutrality as a principle of the state’s foreign policy, because it is to the prejudice of the state;
- introduction into the Constitution of the right to inheritance.
- harmonizing the national legislation with the European documents and other international conventions, treaties and agreements. Under these circumstances, we plead for a cardinal revision of the national legislation in force with the view to adapting it to principles and standards of the international law.
- ensuring the observance and satisfaction of the fundamental human rights and liberties: civil, political, economic and cultural in accordance with the international agreements, conventions and treaties part to which Moldova is, promoting the principle of equality of people to the law regardless of social status, sex, opinion, race, language, wealth, etc.
We particularly strive for the ensuring of the following rights:
- the right to the restitution by the State of the material losses caused to the citizens by infringements of the law, resulting from the fact that the State is the guarantor of observance of the human rights, private property inclusive (later, the State will retrieve its losses by the regressive lawsuit to the culprit);
- the right to inheritance of the relatives of any degree, excluding the right to inheritance of the State.
I (2) The forming of an independent and impartial justice presupposes:
- reforming the system of the law bodies (prosecution, Home Office bodies, security bodies) in accordance with the international standards and the commitments of the Republic of Moldova (particularly, of those that result from adhering to the European Convention for protection of human rights and fundamental liberties).
- ensuring free access to justice, inclusive the right of the citizens of the Republic of Moldova to intimate to the Constitutional Court in cases when a document has encroached upon their legal rights and interests.
- ensuring the right of a person to examining his cause in a fair way publicly and in a reasonable term by an independent and impartial court named by the law.
- being aware of the present lamentable state of the justice institutions and of those who serve there, we consider it necessary to bring to a high quality level the technico-material provisioning of these institutions, as well as the system of training and re-training of the juridical staff.
I (3) Instituting an efficient public administration
- increase of the performing efficiency of the administrative machinery, combat of the favoritism and corruption of the civil servants:
- rationalization of the components of the public administration machinery at all levels;
- assessment and re-specialization of the staff, promotion of loyal, professional and responsible specialists;
- to find and hold answerable the corrupt servants;
- ensuring the transparency of privatization tenders, public purchases and other vital state decisions;
- making simpler and unifying the licensing and registration of economic activity.
- ensuring transparency of spending budget and extra-budget finances:
- improvement of the informational system in the finance field;
- annihilation of frequent amending of the annual budget law;
- ensuring the permanent control by parliament over the observance of the legislation;
- public administration decentralization
- adopting of a law on the Status of the districts from the left bank of the Dniester in accordance with the standards and principles of the international law, in particular with the Convention-cadre on the national minorities protection ratified by the Parliament of the Republic of Moldova;
- democratization of the process of budget elaboration and usage of these very means with the view to reducing the deficit of the consolidated budget and efficient financial administration of the local budgets;
- fair financing of different administrative-territorial units of the Republic of Moldova establishing an adequate and encouraging ratio between the used means and the obtained results and commissioning of these functions by hierarchically superior bodies to the inferior ones;
- support and encouraging of small business, stimulation of creating of a network of non-governmental organizations for fulfillment of different social, economic, ecological projects of the communities.
II. The State’s role in the ensuring of the economic growth
II (1) Forming of legislation adequate to the market economy and stimulation of the private property
Starting from the idea that a state is rich, first of all, via the welfare of its citizens, we strive for the protection and guarantee of the private property and free initiative, by sanctioning via a law and fulfillment of the following principle: the private property is the economic basis of the society and is sacred.
Creating of the legislation adequate to a modern market economy, the principle of equipoise between the public and private interest being respected, it requires the adoption of some efficient economic laws, implementing the legislative experience of the countries with an advanced market economy that will allow for the promotion of the national products export to the world market, integration of the Republic of Moldova in the economic and financial international structures.
With the view to attracting foreign investments, capital flux, advanced techniques and equipment, we seek to legislation that will strengthen the guarantees and widen the facilities offered to the investors.
II (2) Promoting macroeconomic stabilization policy
A tax and monetary policy oriented towards the macroeconomic stabilization, the stimulation of the investments in economy and integration of the
Republic of Moldova in the European and international economic community presupposes:
- ensuring of the economic, financial, banking, monetary, customs, budget, energy, etc integrity of the Republic of Moldova.
In order to cease the petroleum products, tobacco items and alcohol beverages smuggling it is timely to introduce a new mechanism of collecting the insurance amounts equivalent with the amount of the excise for transiting the territory of the republic or for goods transporting to Transnistria, the amount that will be retrieved to the economic entities when taking the merchandise out from the republic.
- promoting a balanced and stimulating tax policy for producers and investors
The diminishing of the tax burden by reducing the tax quotations:
- exemption from the land tax of the persons and legal entities;
- exemption from the taxation for the Social Fund of the pensioners land-owners;
- differentiation and diminishing of the taxation quotations for the Social Fund;
- licensing, business registration and tax administration simplifying;
These measures, together with others, will ensure the ceasing of the social-economic crisis and a sustainable economic growth, will combat the tax evasion and will eliminate the shadow economy.
- efficient administration of the budget, national currency and public debt transparence
At present the public debt exceeds 11 milliard lei, representing 80% of the annual GDP (1999), but a quarter of the budget expenditures are directed towards the reimbursement and serving of the public debt. We see the improvement of this situation in reinforcing the financial discipline, rationalization of budget expenditures, holding control over the inflation, ensuring of the financial, budget transparence by means of national programs, orientation of the loans towards the promotion of innovations and development of the production sector.
- gradual diminishing of the foreign commercial deficit ($123 mln in 1999) and passing over to fair commercial balance via:
- structural re-orientation towards the export of the food products by creating some small and medium-sized enterprises of local raw material processing (leather, wool, meat, tobacco, sugar, fruits, vegetables, etc.) in villages and county centers, etc.
- encouraging of the geographical diversification of the import of energy resources and re-orientation of the export towards the Baltic, Scandinavian, western Europe, Near East, etc., countries;
- judicious policy of import-export prices: exclusion of the imports at prices that exceed the world medium ones and ensuring of export prices to be comparable with the world ones for the same goods (first of all for agricultural products).
II (3) Balanced social policy
A balanced social policy under the circumstances of budget limitation and population masses pauperization imposes a rational public policy of budget expenditures oriented towards the vulnerable layers of the population, the State guaranteeing a factual minimum of existence and services. Stimulation of alternative forms in education, health protection, social insurance and assistance.
Ensuring of a decent level of life for the youth
- education and science
Solving out the specific problems the education system from the Republic of Moldova is facing now:
- providing the access to education for all children of schooling age and equal chances to study;
- alternative financing of the university education settlement;
- access of the youth to the sources crediting the education with repayment after graduation at advantageous duration and rates;
- modernization of the academic programs, teaching staff training, setting of an efficient system of evaluation of the performances level, providing the teaching materials for the education process;
- creating of the adequate working conditions of the pre-school, school and university institutions;
- stopping of the teaching staff withdrawal from the pedagogical activity by providing a remuneration corresponding to the work performed;
- bringing the post-university education at the European level;
- providing the technico-material basis for development of major applied sciences;
- adequate remuneration of the scholars and scientific researches;
- implementation of the results of the scientific researches and innovations in the national economy.
- Health protection
- re-orientation of the system of health protection from specialized services in a hospital to the services of the family doctor and public medical services (for instance, sanitary hygiene, immunization, infectious diseases combat and preventive medicine);
- guarantee by the State of a rational minimum of medical services and stimulation of the private sector and the medicine based on the insurance principles;
- adopting tough laws and promoting environment protection policy and providing the population with high quality food products;
- preparing of a law on the improvement of the populations’ health especially of the children — the future of this country, a law on the doctor’s and patient’s obligations in the Republic of Moldova;
- annihilating of the disproportions in the medical assistance in villages and towns, we will strive for the free of charge transport for sick children to the towns and the capital, the same as town inhabitants use the ambulance;
- diminishing of the children’s morbidity and invalidation from the Republic of Moldova, each case of mortality and invalidation will be examined and the culprits will be hold answerable;
- in the scientific field, the emphasis will be laid upon the scientific works and those of low quality will be sanctioned.
- Creating of the adequate conditions for the creation of art professionals. Elaboration of a reliable system of author’s right protection and the creator’s remuneration.
- Social insurance and assistance
The overcoming of the crisis is possible by:
- promoting social equity in public pensions setting for different social groups;
- initiation of private pensions system, voluntary and compulsory financing of the pensions by administration of individual accounts for the employees as well as the employers’ accounts;
- increase and guarantee by the state of the state minimum pension which is possible by accelerating the reforms in economy, guarantee of indexation and payments from the non-state pension funds in case of their bankruptcy;
- settling and monitoring by the state of the pension funds and of the insurance companies for the tax payers and pensioners protection;
- initiating of an anti-unemployment program with the view to work out the real number of the unemployed, research of their professional components and of the regional labor force market, re-specialization of the unemployed into the professions required by the economic circumstances, administration of their hiring;
- active stimulating of the youth in the work field, inclusive by offering tax advantages to economic entities that hire young specialists and advantageous crediting of their entrepreneurial activity.
- using of the financial mechanisms based on the principles of the market economy (for example, associations of savings and loan) in the living space construction field that would allow the construction of flats, especially for youth, with long-lasting repayment period (15–20 years), providing jobs in constructions and constructions materials industry;
- stimulating the constructions entities to finish building the housings, to retrieve the populations’ deposits from the Savings Bank via combined usage of the budget resources, of the issuing of the state shares and distribution of the housing;
- re-orientation of the subvention system of the population for communal services from the preferential payment to direct subventions.
III. Promoting of the market reforms in the production sector
III (1) Acceleration of the industry re-technology
The stoppage of the catastrophic situation from the industrial sector (continuous decrease of the industrial production, increase of the mutual debts of the enterprises, predomination of the barter operations, diminishing of the real salaries and the practicing on a large scale of the remunerating of the employees in kind, depreciation of the machinery, reducing of the intellectual potential) presupposes:
- speeding up and ensuring the transparence of the industrial enterprises privatization and restructuring of those viable by attracting foreign investors and by stimulating the financial institutions for long-term crediting of the producers who use innovate technologies and respect the international ecological requirements, reasonably using tax exemptions and advantageous conditions;
- protection of local producers-exporters and stimulating of the production of the advanced technologies by creating technological parks and free economic zones only for own production and export;
- adequate re-evaluation of the fixed and circulating assets, acceleration of the introduction of a new accounting system adequate to the market economy and compatible with the international one and re-profiling of the managers of the entities;
- differentiated usage by the State of the financial tools for enterprises’ debts restructuring (freezing, re-echeloning , mutual payment, debts sale, etc.).
III (2) Ensuring of the energetic security of the country
The energy system face the following deficiencies:
Foreign public debts, prevalent to Ukraine, Russia and Romania, interior debts from the budget institutions to the energetic system, tariffs of the energy below the production price, high prices, thefts and losses, unjustified privileges for a series of categories of population with a high rate of barter transactions. The straightening of the situation presupposes:
- fast restructuring and privatization, transparence and concomitance of all the organizations from the energetic system by attracting foreign investors who would own a considerable quotation of shares, as well as the diversification of the investments portfolio by means of stock tenders, sale of a quotation of the employees’ shares, partial transfer of the state’s shares into the property of the municipalities.
- recording and control of the energy resources at their entrance in the Republic of Moldova by installing meters, strict and systematic control of the expenditures for energy in the budget and private fields by installing meters.
- promotion of an active State policy oriented towards the favorable geo-political situation of the Republic of Moldova by involvement in international projects that belong to the field of the construction of the petroleum and gas tubes transit from the Central Asia towards the South-East Europe through Moldova.
- rigorous settlement of the import-export field of the energy resources by geographical diversification of the energy resources import, by implementation of a program of rational usage of non-traditional energy resources and by control of collecting of the taxes from the import-export of the energy resources.
III (3) Land market development
Being traditionally an agricultural country (over 50% of the overall population and from the amount of the GDP from the latest years) the agricultural crisis affects all the fields of the human and production activity: labor force market, population pauperization, processing industry development, etc. This crisis is also manifested by the critical financial situation of the peasants farms, almost total bankruptcy of the collective farms, disorganization of the service infrastructure etc. Land market development is possible by:
- acceleration of the distribution of the authentication deeds of the right to land possessing, granting technical credit to the peasants land owners by the state, putting the citizens in possession of land in villages where the land is still in the property of the state under the reason of belonging to the scientific and experimental institutions.
- land market liberalization and setting of a real normative price for land in the function of reliability and balancing of the interests of both parts in the process of buying-sale of land, creating of a legal framework for land renting practice.
- liberalization and demonopolizing of the market of production factors (seeds, fertilizers, pesticides and others) that will decrease the prices of production (the fertilizers represent more than a half of the cost) increasing and diversifying the agricultural products offer.
- attracting, with the state’s contest, of advantageous foreign loans for bank crediting of the peasants farms and of other structures from the agricultural sector.
- ensuring by the state, by foreign means inclusive, the creation in large rural districts and county centers of a range of small and medium-sized enterprises on the basis of using of our own raw material, especially agricultural.
- continuous development of non-banking institutions as savings and loan associations for small and medium-sized economic entities in agriculture financing, establishment with the state’s support of a rural bank that would grant long-term and medium-term credits at acceptable and reasonable rates.
- improvement of the communication network and stimulation of service infrastructure in rural areas creating, inclusive of that of risk insuring.
- stimulation of creation of joint (moldo-foreign) enterprises with the view to selling Moldovan products on foreign markets and the state’s contribution to the selling of the agricultural products from the peasants farms (for instance, the issuing of the quality certificates for export, offering data regarding the international markets and others).
- implementation of a national policy of the farmers training in the marketing, financial and banking management, etc.
- cancellation of the artificial debt of the peasants farms and associations put onto their shoulders as a result of the unreasonable activity of the colhoz (collective farms) and sovhoz (state collective farms) leaders.
IV. Foreign policy of the Republic of Moldova
Major directions of the foreign policy of the Republic of Moldova derive from the vital national interests, the premise for the European integration and advantageous international cooperation with foreign partners. The key-elements of the foreign policy of the are based on the consolidation of the independence and sovereignty, territorial integrity of the Republic of Moldova ensuring by intensification of the effort on the foreign ground with the view to settling the Transnistrian conflict.
The implementation of this desideratum needs:
- adopting by the parliament of a law offering the districts in the left of the Dniester special terms of autonomy in accordance with the international provisions and principles;
- instituting of a new international mediation mechanism, inviting as mediators additionally to the Russian Federation, Ukraine, OSCE and Romania;
- speeding up of the unconditional, complete and orderly retreat of the troops of the 14th Army in accordance with the decision of the Istanbul OSCE summit;
- integration of the Republic of Moldova in European structures and intensification of the process of adhering to the European Union;
- elaboration and implementation of the national strategy of integration into the European Union;
- starting negotiations regarding the association of the Republic of Moldova with the European Union;
- continuous adjustment of the legislation of the Republic of Moldova to the international one;
- abandoning the CIS
- making diplomatic approaches necessary for the inclusion of the Republic of Moldova in the agreement for stability in the South-Eastern Europe;
- consolidation of the military security of the Republic of Moldova;
- giving up on the permanent neutrality policy and intensification of the activity in the North Atlantic Cooperation Council and North Atlantic Assembly;
- abolition of the unilateral energy and raw material dependence, diversification of the foreign suppliers and of markets for national products;
- active studying of the Euro-regions and free economic zones;
- intensification of cooperation with the countries from Western Europe, USA and Canada with the view to successful implementation of the political and economic reforms.
- rigorous fulfillment of the commitments of the Republic of Moldova, of the financial ones that result from the quality of a member at various international bodies and conventions inclusive.