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Activity of Public Institutions
1.1. Appointments. Reshuffles
The Government has proposed the appointment of political analyst Nicolae Chirtoaca as Moldovan Ambassador to the Unites States and the assignment of Justice Minister Victoria Iftodi as Moldovan Ambassador to France.
The executive has proposed the appointment of Eduard Melnic, deputy rector of the Academy of Public Administration, as extraordinary and plenipotentiary ambassador of Moldova to Latvia, where Moldova has recently opened an embassy.
On August 16, the Government relived Oleg Cusnir from the post of director of the Casa Presei complex. It did not explain why, saying as usually "on basis of own demand."
1.2. Decisions
1.3. Sittings. Decisions. Declarations
Concerns with situation in energy sector
A meeting between prime minister and a group of German investors has discussed the perspective of development of bio fuel industry in Moldova. The director-general of Bio Company Raps of Germany said that there are many opportunities of developing the bio fuel industry and this company is building a rape oil making plant in the city of Lipcani. The enterprise is expected to open by late 2006. At the same time, the company will invest in growing rape, including by increasing the sorts, mechanising the harvesting process. Vasile Tarlev thanked the German entrepreneurs for their wish to cooperate with Moldova and expressed readiness to grant the necessary support for implementation of joint investment projects.
A sitting on implementation of gas pipe building projects in Moldova has examined the implementation of the national programme in the field, ascertaining that all districts of the country have elaborated and approved local gasification programmes. As of January 1, 614 localities were supplied with gas (about 40 percent of all establishments). Gas pipes will be built in at least 190 localities this year and over 71 million lei is foreseen in the state budget for this purpose. The prime minister outlined that the construction of gas pipes Balti-Ungheni, Tocuz-Mereni and of the electricity distribution line Novodnestrovsk-Balti is a priority for ensuring the energy security of the country.
Interventions in healthcare sector
The Government has decided to insure the people who look after 1st-degree disabled children (about 500 persons) at home and mothers of at least seven children (about 300 families). About 4 million lei will be additionally allocated in 2006 for this purpose.
Convoking a meeting with managers of health institutions from Moldova, the prime minister said that quality, transparency and an accessible price of drugs can be obtained by using the centralised drug purchase mechanism. Vasile Tarlev said that stricter requirements will be introduced for medication providers "in order to exclude intermediaries from market." The Ministry of Health and Social Protection was asked to hold auctions and to sign contracts for the purchase of state-subsidised medications and drugs needed by medical institutions, starting September 1 in future.
It should be mentioned that the Moldovan League of Pharmacists claims that Moldovan pharmacies lack cheap medications, as more than 90 percent of needs are covered from imports. According to representatives of the league, the internal prices of drugs have grown by 173% on average, while the imports have dropped by 40% compared with the similar period of 2005. Thus, a deficit of cheap first-need drugs was registered. Prices have grown because VAT facilities have been annulled; requirements for the implementation of the automatic information system State Nomenclature of Drugs (purchase and installation of a special soft, required latent band on every drug, personal costs, etc.) have been introduced.
Implementation of "SALT" Programme
According to press reports, the Ministry of Education and Youth has negotiated with a British company the acquisition of more than 10,000 computers worth about 55 dollars. As many as 360 teachers attended a 10-day training before the new academic year in order to learn education soft for subjects, within the Salt Programme. Training courses for directors of educational institutions and functionaries of general education directorates will be organised starting September, so that 10,000 local teachers become local trainers by end of the year. According to data of the relevant ministry, the implementation of the 2007-09 action plan on accomplishment of the "Salt" Programme will require about 400 million lei, of which the Ministry of Finance has plans to allocate more than 100 million lei the next three years.
The Centre of Information and Education Communication Technologies opened on August 30 to ensure the creation of a permanent training system for informatics teachers; to educate teachers of other subjects in the field of implementation of information and communication technologies; to elaborate education software for various subjects; to elaborate and publish didactic materials for informatics teachers; to elaborate electronic didactic materials for subjects; to monitor the use of Internet and implementation of information and communication technologies in education sector; to create and administrate an educational portal; to create databases to be used for the monitoring and administration of education system, etc.
Draft budget law for 2007
Decision-making officials of the Government have examined the main provisions of the draft budget law for 2006. The principles of budgetary-fiscal policies for next year adopted by Parliament in late July are novels of the draft. The new elements include: - the reduction of income tax; - the possibility to deduce more expenses; - the exemption of economic agents that invest two million dollars and reinvest 80 percent of their profit from income tax for a 3-year term and the 2007 budget foresees facilities for further investments of 5, 10, 20 and 50 million dollars; - micro-financing enterprises will hold the same rights and obligations like banks, will be exempted from income tax for a 3-year term, if they release credits for over three years. No essential rises are proposed for investments and the planned amount exceeds 300 million lei. The limitation of investment possibilities is argued by growth of expenses related to dearer natural gas and implementation of law on salary in budgetary sector.
2.1. Decrees
Vladimir Voronin has signed the decree on assignment of Nicolae Chirtoaca as Ambassador of Moldova to the United States.
Several persons have been awarded state orders for contributing to renovation of the Eternitate Memorial Complex. The chief of state has awarded the Honour Order to Anatoli Petrovski, director-general of the Textile Corporation KROSNO from Tyumen, the Russian Federation, and to Vasile Ursu, ad-interim mayor-general of the Chisinau municipality. Under Article 171 of the Law 123 from July 30, 1992 on state orders of Moldova, the Honour Order, which was introduced in 2002 at the initiative of the chief of state, is awarded for praiseworthy contribution to strengthening the statehood, promotion of reforms and democratic developments; very fruitful activity in state bodies and social field; special merits in developing friendship and cooperation relations between Moldova and other states, notable contribution to integration of the republic into international structures; for intense peacekeeping activity; as a sign of appreciation for charity and sponsoring activity, for permanent support for social-humanitarian actions.
2.2. Sittings. Decisions. Declarations
Recommendations for activity of local public administration
The chief of state attended on August 4 the first sitting of the collegial council of the Ministry of Local Public Administration and formulated recommendations on activity of the ministry. Vladimir Voronin reiterated the importance of the institution and indicated the need of establishing acts and orders that the ministry can issue, nature of information solicited from local and district public bodies. The chief of state recommended the ministry to revise the package of documents circulating at the level of local and district public authorities regarding their real reasonability and necessity; to intensify the efforts for information of the system and ensuring a direct interaction between relevant ministry, Government and bodies of territorial public administration; investigation of complaints of citizens, reasons of complaints unsettled at level of local public authorities. According to the chief of state, employees of the ministry must pay more attention to the implementation of state programmes in territory, including of the National Programme "Satul Moldovenesc". Assisting the creation of free economic zones and technological parks in many districts of the country will be a current task of the ministry.
On August 28, the president of Moldova chaired a sitting on prospects of projects on development and modernisation of the Chisinau municipality. The chief of state highlighted that the ongoing process must continue in a supported pace, continuing or starting the implementation of various projects: the model quarter, the construction of the northern bus station, arrangement of the central cemetery, renovation of streets, fountains, highways, arrangement of the Bic river, purchase of vehicles for public transportation and snow cleaning equipment, street illumination, building of an elderly asylum, renovation of centres for minors, etc. A special attention will be paid to quality of works, principles of selection of entrepreneurs and mechanisms of accumulation of finances for projects from the state, municipal budgets and contribution of sponsors.
Concerns with situation in winemaking and vine growing sector
Vladimir Voronin has chaired a sitting with the participation of prime minister, decision-making officials of the Government and Presidency, which focussed on preparation of the vine growing and winemaking sector for the grape harvesting and acquisition campaign and for the 2006 wine making season. The chief of state stressed that the conduct of the grape harvesting and acquisition campaign in the due time has a major importance for national economy and this fact discourages the strategic role of viticulture and winemaking industry. Voronin proposed grape processing enterprises to control the respect for the national regulation on use of pesticides, other normative acts regulating this sector, jointly with the Ministry of Agriculture and Food Industry, MoldovaVin Agency, National Institute for the Protection of Plants, and other competent bodies. Also, he opted for an urgent creation of the national laboratory for certification of quality of alcohol drinks for exportation within the National Institute of Vine and Wine, so that to obtain international accreditation soon and to help Moldovan wine production join western markets. The president reiterated the need of continuing the diversification of markets for domestic wines, the reduction of exports of raw wines and wines in bulk, enlargement of vineyards of European sorts.
Vladimir Voronin has met with members of a delegation from the people's government of the Chinese province of Yunnan and saluted the presence of China's representatives, saying that the visit will improve knowledge of business opportunities in winemaking and vine growing sector in a move to identify new directions of advantageous cooperation. A Moldovan Wine House will open in this region soon. China's representatives noted that the high quality and reasonable price of Moldovan wines creates real premises for an extended presence of Moldovan products in China.
Visit to Moscow
On August 8, the president of Moldova met with his Russian counterpart in Moscow. The meeting, which was reportedly expected to have a crucial importance, was described as "working". Although it was reported that the meeting lasted about 2 hours, press releases said that the sides have discussed the Transnistrian problem and the Moldova-Russia bilateral relations. They agreed to restart the activity of the Moldovan-Russian intergovernmental commission in order to resolve the existing problems in relations between the two countries (especially of humanitarian nature), to take joint actions aimed to intensify the commercial-economic cooperation.
Vladimir Voronin has convoked a working sitting on outcome of his visit once he came back to Chisinau and revealed details about his meeting with Vladimir Putin. The Moldovan president ordered the elaboration of measures aimed to settle the existing difficulties and to find solutions to unsolved problems.
Participation in festivities dedicated to the national holiday the Day of the Republic2
The president of Moldova has attended most of manifestations dedicated to the 15th anniversary of Moldova's independence. The chief of state addressed a festive sitting on August 26, saying that:
On occasion of the holiday and as a sign of gratitude for merits of those who voted the Independence Declaration, Voronin has posted intention to propose equal rights and facilities for all lawmakers of the 12th Supreme Soviet and parliamentarians from all legislatures3.
Interview for BBC
Vladimir Voronin has delivered a series of statements to BBC regarding important problems of interior and foreign policy:
1. Inflation and prices
The inflation rate declined by 0.4% in July compared with June 2006. This was mostly due to a decline of prices of food products by 3.8%. Consumer prices of manufactured goods and services granted to population have grown by 1.3% and, respectively, 3.7% in the period concerned.
�but the inflation will grow again at this beginning of autumn
We fear that the Government and the National Bank of Moldova could fail the 10% maximum inflation target for this year. Many economists have already contested the forecast, while statistics reveal that the cumulated inflation rate for the first seven months of this year has already reached 7%, though we had a deflation of 0.4% in July, this being actually typical for summer, when prices of most of fresh fruits and vegetables are on the decline.
And it will be between 12.5% and 13.5% at the end of this year...
However, the average rise of natural gas tariffs by over 50% burdened by higher administrative prices of electricity, water, transportation, fuels, etc., could increase the inflation up to two figures at the end of this year. The expansion of consumption credit contracted by population from commercial banks could be added here and this perpetuates the inflationist expectations in a bigger or smaller measure.
2. Public finances
According to official statistics, incomes of over 5.51 billion lei (323 million euros) were raised to the state budget in January-July, by 17.3% more than in the similar period of 2005. At the same time, about 125 million lei was attracted in January-June 2006 for implementation of investment projects.
Authorities of the Government, Parliament and Presidency discussed and analysed the draft state budget law for 2007 in August. According to the Ministry of Finance and preliminary forecasts, the state budget for next year will include about 19 million lei (some 1.43 billion dollars) in incomes, while the expenses will be established after consultations with relevant ministries and local public administration.
3. Real sector
Industrial enterprises in Moldova made production worth about 11.25 billion lei (659 million euros) in January-July, by 6.7% less than in the similar period of 2005. This decline was mostly due to the crisis that affected the wine industry and had negative consequences on other sectors of industry, according to many experts.
... while agriculture grew by only 0.6%
At the same time, the agri-food industry has grown by 0.6% in the first half of this year. The lowest rise in the past years is explained through a decline of alchol and cooling drinks by over 25% due to the Russian embargo on Moldovan wine production. Nor the agriculture makes us happy. Official forecasts regarding a 3.6% growth of agricultural production this year could be failed after the agriculture rose by 1.8% only in the first half of this year, up to 2.48 billion lei (some 190.8 million dollars).
Government will have to update its forecasts...
The Government, which administrates the forecasts, will have to update them and to propose more realistic values. Indeed, the authorities said last week that the official forecasts for some macroeconomic indicators - GDP, inflation, etc. - will be reduced, but this will happen only after debates on state budget for next year are completed. In addition, estimates of the CIS Committee for Statistics reveal that the economic growth paces this year will be lower than in 2005 and 2004 in half of member countries. The GDP will grow by 6% on average in CIS in 2006, compared with 6.8% in 2005, 8.1% in 2004.
4. Financial-banking sector
The total assets of the Moldovan banking system rose by 11.42% in January-July 2006, up to 19.99 billion lei (about 1.5 billion dollars). In comparison with the similar period of the precedent year, the assets have grown by 32.6%. According to a bank efficiency rating worked out by the rating and estimation agency Estimator-VM, the commercial bank Moldova-Agroindbank (MAIB) was ranked the 1st place in a top for the first half-year. MAIB has raised the largest net revenue in the banking system - 92.11 million lei - and was rated 2.398 points. The Savings Bank was ranked the 2nd place and was rated 1.343 points, as it raised a net income of 33.16 million lei.
Bank deposits have declined...
At the same time, commercial banks in Moldova granted credits in the amount of 7.17 million lei in the first half of this year, by 25.1% more than in the first six months of 2006. On the other hand, economic agents and population created deposits worth 601 million lei in July, by 118.6 million lei less than in June. More and more people leave for holidays on summer and enterprises start buying foreign currency for winter. The supply of deposits in banking system exceeded 12.73 billion lei in late July and they declined by 125 million lei (1.0 percent) compared with June 2006, especially due to reduction of deposits in foreign currency by 142.5 million lei (2.3%).
5. Foreign sector
Russia's embargo on exportation of Moldovan agri-food products was one of factors that halted the commercial expansion. Exports to CIS have declined the most - by 18.7%, and this fact reduced their share in the total of external deliveries from 50.7% in January-June 2005 down to 45% in the similar period of 2006. At the same time, the export to the European Union was estimated at 147.6 million dollars and declined by 0.1% compared with January-June 2005. Exports to Central and Eastern Europe have grown by 22.3% in the period concerned. At the same time, imports were estimated at over 1.6 billion dollars and they rose by 14.8% compared with the first half of 2005.
...while exporters of agri-food products suffered the most...
If making a synthesis of structure of exported commodities, we consider that makers and exporters of agri-food products have been affected the most, as this category of goods has declined by about 11% compared with January-June 2005 and it covers more than half of all exports. Imports have grown particularly due to a 1.4-fold rise of imports of mineral products and energy agents, which cover about 27% of all imports.
6. Labour market
Salary arrears in national economy exceeded 113 million lei in late July and they rose by about 17 million lei compared with earlier this year. The largest salary arrears are registered in agriculture and processing industry. At the same time, the medium salary on economy amounted to 1,754.2 lei in July, by 70 lei less than in June 2006. The average wage in budgetary sector accounted for 1,561.2 lei and declined by 318.3 lei compared with the precedent month, while the medium salary in real sector has grown by 49 lei, up to 1,843.8 lei.
Referendum on background of explosions
Igor Botan
Preparations for the September 17-scheduled referendum on joining of Transnistria to Russia or reintegration into Moldova are being finished in the eastern breakaway enclave of Moldova. This referendum has some particularities, unlike the multiple previous plebiscites. If we admitted that the planned referendum has the least of legality, we would establish that it is undermined by modality of preparing the scrutiny:
The Moldovan authorities, international democratic institutions, the European Union, the United States, neighbouring countries have stated that they do not recognise the Transnistrian referendum. The Russian Federation only hinted that it has another opinion. We consider that the modality of organising the Transnistrian referendum, actions of the separatist authorities annul any claim of validity of the plebiscite, of course even in the hypothesis that it would have a minimal initial legality.
One of fundamental problems related to organisation of referendums is linked to formulation of questions for the voting. The equivocal formulation of the two questions and the propagandistic actions of the Transnistrian authorities aim to produce the expected result - the independence of the Transnistrian Republic and the subsequent free joining of Transnistria to the Russian Federation. Of course, the Trannsistrian mass media, which is entirely controlled by authorities, do not mention that the generally accepted norms for the conduct of referendums ad plebiscites require that the questions be distinct and clear in order to prevent manipulations and answers with equivocal interpretations. In this context, it should be mentioned that separatist leader Igor Smirnov has publicly said that the formulation of questions was recommended by Russian experts who drew his attention that the Russian legislation allows the incorporation of independent states only into the Russian Federation.
What was mentioned above has raised controversial debates in the Supreme Soviet in Tiraspol as regards the formulation of questions. This happened because the two questions formulated for the referendum are four indeed. As regards the first question, an elementary exercise reveals the fact that the modality of formulation - "Do you support the course of independence of the Transistrian Moldovan Republic and the subsequent free joining of Transnistria to the Russian Federation?" - induces automatically and extra-answer: the consent for the subsequent free joining to the Russian Federation, which automatically becomes an imperative for the separatist authorities. Thus, the option for Transnistria's independence without its subsequent joining to the Russian Federation is eliminated.
The alternative question "Do you consider rejecting the independence of the Transnistrian Moldovan Republic and subsequently becoming part of Moldova?" also denies the need of existence of Transnistria. An eventual positive answer to this question, like an eventual positive answer to the first question, annuls the need of existence of "independent Transnistria". The second part of the question on Transistria's integration into Moldova is needless, but it was necessary from reasons of symmetry in order to justify the second part of the first question. Of course, Transnistria is part of Moldova, a fact admitted inclusively by "the only supporter of Transnistria" - the Russian Federation.
However, the fact that the scheduled referendum annuls the "independence" of Transnistria regardless of its results is important, not the ambiguous formulation of questions. The constitution of Transnistria does not stipulate renunciation to independence, even if we admit that this is the supreme law of an unrecognised entity. Even more, the separatist leader was sworn in to protect the "sovereignty and independence" under Article 69 of the alleged supreme law. Of course, the violation of oath is not a problem for Smirnov, which has initiated the referendum that the Supreme Soviet has later approved. Smirnov did not have problems to obtain the third presidential mandate when another two have expired. The constitution was truly modified then. But this fact was not done for the disputed referendum and it will be probably done post factum. Show must go on! It is important that the "only supporter" of Transnistria accepts the procedure, while subsequent explanations and justifications will appear for sure.
The separatist regime was born and survives due to the support from outside of Moldova - this is a generally recognised true established by the European Court of Human Rights (ECHR). However, the Transnistrian authorities and their supporters from outside wanted a minimal legality based on invocation of the internal law. A falsehood was used for this purpose. The story about the use with ill-will of statehood and names of some notable personalities from scientific world in order to justify the right of Transnistria to external self-determination was described in details by publications Jamestown Foundation1 and The Economist2. The shameful withdrawal of names of "authors" of the study "State sovereignty of Pridnetrovskaya Moldovaskaya Respublica (Pridnestrovye) under international law", published by the so-called International Council for Democratic Institutions and State Sovereignty (ICDISS), which claims to be registered in the United States under the auspices of the so-called Contact Group of the Euro-Atlantic Unit, the refusal of these institutions to answer key questions about their statutes and addresses are only some elements that reveal a network of forgers, producers of fake articles in order to be used with much ado by the Transnistrian propaganda machinery to justify the referendum on withdrawal from Moldova.
The fake making machinery also raises interest. Professor Christopher Borgen of The Association of the Bar of the City of New York (ABCNY) revealed during presentation of the study "Thawing a frozen conflict: legal aspects of the separatist crisis in Moldova", in Chisinau on July 19 that a group of ABCNY experts visited Moldova in mid-2005 and met with representatives of the Chisinau and Tiraspol authorities. The goal of the visit was linked to elaboration of the report concerned, which is exclusively based on norms of international law and information from official sources. When the study was worked out in early 2006, its draft and conclusions were shared to the Chisinau and Tiraspol authorities. Following were the conclusions of the prestigious association:
Of course, the separatist leaders in Transistria did not like these conclusions and decided to use falsehood in order to anticipate the publication of the ABCNY report. Professor Borgen mentioned some facts:
But it is true that these reprobatory and disgusting proceedings were used after Moscow has hosted a real and allegedly scientific conference (not virtual like the one invoked to have taken place in Washington), which debated and approved the presence of Transnistrian scientists in conclusions of the ICDISS counter-study. Of course, everything was organised to help the Transnistrian propaganda "justify" the legality of the referendum, fuelling the expectations of citizens from the left bank of the Dniester river to get rid of uncertainties related to the undecided status of the region.
It is also interesting to compare the behaviour of ABCNY and ICDISS experts. The first have visited Chisinau and Tiraspol to collect facts before producing the study and they presented the study for debates at a conference in the origin country of the studied conflict. The ICDISS experts did not do the same, but made conclusions in favour of the separatist regime. Unfortunately, ICDISS did not organise debates in Chisinau or at least in Tiraspol, so that to answer some old questions on Transnistria's right to self-determination:
If they read the ECHR judgment, which is an official document with a higher status than of others, they would discover that the separatist regime was initially inspired and supported by revanchist forces from the dying USSR, after the Russian Federation declared its sovereignty on June 12, 1990. The separatist regime is identified with the "last bastion of the USSR". The seven villages had been protected against the process of genesis of "Transnistrian people" from the simple reason that residents have managed to reject warrior Cossacks and mercenaries who arrived from Russia and are supported by Army 14. After the collapse of USSR, the separatist regime claimed to be an outpost of Russia in Balkans, and we ascertain after the fall of the Milosevic regime in Serbia and the loss of Russian influence in Balkans that the separatist Transnistrian regime and its supporters do not need independence any longer, planning indeed a referendum that annuls the "independence" in favour of joining Russia. Russian citizens who usurped the power in the eastern districts of Moldova were expected to act this way.
Indeed, the questions raised to ICDISS should be raised to the advisor of the Russian President Vladimir Putin, Modest Kolerov, the way the writer of the article published in Jamestown Foundation's Eurasia Daily Monitor3 has supposed, as the Russian official has organised the study attributed to ICDISS in all likelihood, the way he organised last year the creation of branches of the so-called International Corporation "Proriv" in "republics of the separatist international" and Crimea, and the series of international conferences aimed to propagate the "Kosovo precedent" on separatist republics in the former Soviet Union. The recent example of separation of Montenegro from Serbia is being invoked now.
Using falsehood to justify the right of Transnistria to secession disqualifies any claims in this respect for sure. Also, it is absolutely wrong to invoke the examples of Kosovo and Montenegro. Kosovo is under administration of the U.N. with Serbia's consent, under the resolution of the Security Council, while Article 60 of the Constitution of Serbia and Montenegro from February 4, 2003 stipulates express the right of Montenegro to conduct a referendum on separation from Serbia three years after the Constitution was adopted.
If Transnistria had political freedoms, the problems raised at the referendum should be freely debated under all aspects. Citizens with pro and against visions regarding the questions for the referendum should enjoy a free access to mass media in order to publish their opinions and to invite their fellows to support their options. This fact is absent in Transnistria. As for example, it would be absolutely normal that the population from Transnistria debate the questions formulated above for ICDISS. On the contrary, the entire mass media from the region is controlled by the separatist administration and it is engaged in propaganda aimed to produce the expected result - the vote for joining to Russia. Four members of the DIGNITAS organisation based on the left bank of the Dniester river have been arrested, intimidated and humiliated for "prophylaxis" reasons, in order to prevent eventual intentions of debating referendum-related problems. This should be an example for others.
At the same time, the separatist authorities who complain of negative effects of the "economic blockade introduced by Moldova and Ukraine" did not hesitate to fill the secessionist region with huge TV screens in order to promote one convenient option for them. Indeed, the source of financing for these expensive installations is known. Of course, it's the same for the "international monitoring" if the referendum, which will be mainly conducted by lawmakers and nationalist forces from Russia, marginal forces from Ukraine and doubtful nongovernmental organisations such as CIS-EMO, etc. As for example, the International Council of Russian Compatriots, whose sympathies are clear for everybody, or CIS-EMO has appropriated the second half of its name (EMO - Election Observation Mission) after the model of EMO network created under the auspices of the OSCE. But CIS-EMO has nothing in common with the OSCE, but on the contrary, it contests the election observation missions of this institution in the CIS. But CIS-EMO does not observe the illegalities committed in the Russian Federation - the permanent mockery at former vice president of Russia Alexander Rutskoy, the fact that the Communist Party of Russia and Yabloko have contested the mode of organisation of elections in Russia at the ECHR, etc. Is the monitory of elections in Transnistria by organisations such as CIS-EMO enough "to confirm the fairness of elections?"
But the separatist propaganda avoids telling citizens from the left bank of the Dniester river what will be their fate further. Thus, it is easy to guess the result of the so-called referendum under conditions of falsifications, intimidations and propaganda:
Thus, what could be the consequences of the referendum for common citizens from the region, whose number has declined by ? after declaration of Transnistria's independence - remaining in continuation in a zone of uncertainty, where political adventurers resolve their problems while their supporter practices a kind of political poaching in "close neighbourhood" considered an "exclusive zone of influence"? Of course, the public discussion of this kind of perspectives for population is not convenient to separatist authorities.
Two explosions with tragic consequences took place right in the period when the referendum is being prepared. The explosions that killed ten persons and hurt other dozens had a very important impact. The Transnistrian authorities have organised a political show after the July 6, 2006 explosion in a minibus. The problem of referendum was decided in the mourning days, and the weak resistance of those who opposed the ambiguous formulation of questions about Transnistria's eventual entry in Russia was defeated. Adherents of separatist leader Igor Smirnov have hinted to journalists that persons from entourage of the main political adversary of Smirnov could be involved in organisation of the explosion. This is the chairman of the Supreme Soviet of Transnistria, Evghenii Sevciuc, who holds deep relations with the known firm Serif, whose owners are interested in discouraging the potential participants in the announced privatisation of the winery KVINT. It is curious that after launching these allusions the adherents of Sevciuc in the Supreme Soviet have ceded regarding the formulation of questions for referendum, while Serif has managed to privatise KVINT.
The ensuring of the economic interests of the Serif group made Sevciuc break the ice the first after the second explosion in a trolley in Tiraspol on August 13, 2006 and say that the explosions have been planned from outside, alluding to Moldova, of course. Sevciuc's statement regarding the need of debating security problems in the Security Soviet raised a nervous reaction of Transnistrian security chief Vladimir Antiufeev. On the other hand, the explosions were used to "strengthen the relations" between leadership and citizens, while on the other hand both the organisers of terrorist acts and those who should prevent the "eruption of terror" should be identified. Security head Antiufeev should be found guilty in the second category. He tried to banter the intention of Sevciuc to organise debates, saying that it could aim at enhancing the financing for the security ministry (MGB) headed by Antiufeev. The nervousness of Antiufeev was observed especially when he accused Moldovan Interior Minister Gheorghe Papuc at a news conference of having organised the explosions, swearing terribly, and he had to admit after two hours only that there is no evidence regarding the involvement of Moldovan intelligence services in the two explosions.
As it was already said, the Transnistrian propaganda did not hesitate to throw the responsibility for explosion on Moldova's shoulders. However, this was done in a very special manner. Low and medium-ranking functionaries have invoked Moldova's involvement from the very beginning, while those of higher ranking spoke equivocally in order to affirm later that they did not discover any traces of participation of Moldovan intelligence services. The first category included the former chairman of the Supreme Soviet of Transnistria, Grigore Maracuta, who was excellent in developing an entire conspiring theory. The meaning of these actions was that the propaganda from Russian and Transnistria widely mediate this kind of opinions, targeting at creating a negative and suspicious public opinion against Moldova. Functionaries with insignificant public offices, whom Maracuta has recently joined, were not expected to manifest responsibility and it does not make any sense to demand explanations. Instead, the separatist leaders have been very careful, speaking about acts of terrorism very vaguely. Is it clear why? If Antiufeev or Smirnov insisted on Moldova's involvement in the terrorist acts, the Moldovan authorities, the OSCE Mission, other international institutions would demand explanations and evidence, and this fact would be inconvenient to the separatist regime.
Thus, what have investigations established? Firstly, the explosions should be organised by passengers of the vehicles concerned; that means by potential self-murderers. This fact was confirmed by official media from the secessionist region. Thus, it was announced after the first explosion that investigators have identified two potential transporters of the explosive on July 6 - Nicolai Fastovet and Alexand Beleaev. Even more, the Transnistrian authorities said that devices like the one that exploded in the minibus have been discovered at home of one of the two suspects. Following the silence and irritation over insistences on make public the final findings of the inquiry, MGB head Antiufeev hinted that people without "civic consciousness", fishers who use explosive to poach on the Dniester river, are to blame for the blasts.
Confusions related to explanations have appeared after the August 13 explosion, too. On the other hand, speaker Sevciuc spoke about involvement of some foreign forces and ordered explosions. But investigators of this case said that grenades have exploded in the trolley and a man who held grenades and intended to detonate them on the Dniester river, probably for poaching purposes, too, has been held. However, investigators noted that they have found two detonators for grenades outside of the trolley. The detonators could be found outside of the vehicle only if it was at the level of windows to be thrown by shock wave. It means that the potential criminals should splash with grenades inside the vehicle and this fact could be easily established. Even more, it is known that the grenades RGD-5, which have been detonated inside of the trolley, throw pieces at 25 metres and cover a surface of 3,000 square metres. Curiously, the separatist authorities did not speak about traces of the grenade explosion, in order to confirm that such ammunition has exploded.
After all, the Transnistrian authorities have awarded FSB officers of Russia invited to investigate the two explosions for helping discover the cause of the first explosion and they said that the criminal who organised the second blast has been held. They said nothing more. However, the main problem in the two cases remains unsolved - what is the origin of the explosive, how does it arrive in hands of criminals or poaching fishers? Of course, it was said that the ammunition has origins in the armed hostilities from the early 1990s of last century.
But the participation of Russian FSB officers in investigating the two explosions, their awarding and the refusal to make public the findings of investigations may mean an internal service investigation. Thus, it may be supposed that FSB officers have established that the arsenal of Army 14 deployed illegally to Moldova's eastern districts was the source of explosives. Of course, the eventual release of such data is not convenient to the separatist authorities and the Russian leadership, especially when the Moldovan authorities demand insistently the withdrawal of Russian troops and ammunition from the breakaway region, being supported by the international community. This supposition is not improbable. Russian media and film-makers have collected and made public enough materials demonstrating that Russian military sell weapons to their enemies even under the hostile conditions in Chechnya, then why it would be unlikely to do such things in relations with poachers or criminals involved in settling accounts in Transnistria?
This seems to be a version to elucidate the enigma since the Transnistrian authorities speak about terrorist acts, make allusions about Moldova's involvement, and refuse to make public the findings of investigations, etc. Citizens from the region should have the possibility to speak freely about effect of stationing of Russian troops and military arsenals on the left bank of the Dniester river before the referendum but they are not allowed to do this.
On August 3, the Moldovan Government adopted an action plan aimed at "using the conclusions of the ABCNY Report in the country's reintegration process." As regards the two explosions in public transportation in Tiraspol, the Moldovan authorities acted absolutely rightly when they proposed their assistance in investigating the two cases and treating the victims. This is normal:
Under these circumstances, the Moldovan authorities must insist to be admitted in investigating the incidents with losses of human lives. The fact that the Russian FSB participates in investigations and does not make public their results indicates the hiding of very important information such as regarding the origin of explosive substances. Moldova must also demand this information from reasons related to the recent participation of the chief of state in the recent informal CIS summit in Moscow. The modernisation of the CIS was sought at the summit, with Russia insisting that the anti-terrorism fight is a priority of the CIS. In this context, the Moldovan authorities should insist on disclosure of information about terror in Transnistria and origin of the explosive that killed people. The OSCE Mission should also insist on access to this information.
If Transnistria had a democratic regime, the September 17-scheduled referendum would take place both on background of the two regrettable and tragic explosions that killed people and of "explosive" public debates aimed:
If the lack of all these things does not raise awareness, speaking about legality of the referendum and its eventual results is nonsense.
That's what the Moldovan authorities must affirm and demonstrate, these ideas could promote the foreign policy of our country, us, citizens of this country, and all its true friends must think this way.
On August 8, the European Court of Human Rights sentenced Moldova again in the case Ermicev vs Moldova (violation of Article 6 - right to a fair trial). The plaintiff has complained of annulment of a final judgment in his favour regarding a real estate deal. The ECHR observed that a higher jurisdiction has annulled a final and mandatory judgment awarding victory to the plaintiff after a revision procedure based on an appeal of the prosecutor who does not fall under any term and, therefore, the decisions may be permanently discussed. The plaintiff has faced a legal uncertainty for a long period after annulment and so the legal security principle and the right to access to a law court were violated. The Court considers that the sums awarded to the plaintiff under this judgment may be considered goods and the annulment of the final judgment is an attempt on the plaintiff's right to respect for his estate. Thus, the Court ruled the violation of Article 1 from Protocol 1 to the Convention. The ECHR ruled that the plaintiff receive 29,000 euros, which covers the market price of his apartment in litigation, 2,465 euros in pecuniary damage, 2,000 euros in non-pecuniary damage and 300 euros in costs and expenses.
The European Commission has decided to release a 10-million-euro financial aid to Moldova to support the budgetary balance and to ensure the food security. The grant within this programme will account for 9.2 million euros, while the remaining amount will be a technical credit released under preferential conditions. The money will be spent to sustain the agriculture, for social protection, modernisation of management of public finances.
The special representative of the E.U. for Moldova, Adriaan Jacobovits de Szeged, has held consultations on the Transnistrian problem with officials of the Russian Foreign Ministry. According to a representative of the Russian Foreign Ministry, the E.U. dignitary "was informed about Russia's efforts to maintain the stability" in the Transnistrian region, actions aimed "to persuade the conflicting sides to adopt a stance capable to contribute to the conflict resolution." The sides opted for respect for the OSCE principles on settlement of local conflicts and taking of completions to the documents adopted earlier by participants in the Transnistrian settlement process into consideration.
The E.U. has allocated a 34-million-euro grant to Romania within a transborder cooperation programme. Seven million euros out of this grant will be spent for the neighbourhood programme between Romania and Moldova. The Mediafax news agency reported that the funds aims to support the economic development of border areas of Romania, in cooperation with border regions of neighbouring countries, by intensifying the transborder cooperation between public and private sectors and between persons.
The findings of a recent survey by the European Commission (Eurobarometre) reveal that a relative majority (45%) of the E.U. population supports the enlargement, but a high number (42%) of respondents do not warm it. The ten new member states support the enlargement very much.
On August 13, the Romanian president delivered a series of statements on relations with Moldova, when he attended the opening of a summer school for youth called Romanian Community and European Entity, at the Eforie resort. He said that the Romanian Parliament will receive two draft laws on Romanians from outside by late September: a law on awarding of Romanian citizenship and a draft law on Romanians from other countries. Traian Basescu noted that he intends to speed up the awarding of Romanian citizenship to ethnic Romanians who reside neighbouring states, so that they be able to benefit of advantages of Romania's entry in the E.U. He underlined that the Romanian Foreign Ministry is waiting for as many as possible projects from Romanians from other countries in order to finance them. According to press releases, the Romanian president criticised the policy of Chisinau aimed "to mystify the history and culture," "to deny the Romanian language," etc.
Romanian Foreign Minister Mihai Razvan Ungureanu has said at the summer school of TNL in Mamaia that Moldova should have a "pragmatic thinking", as Romania is the European chance of Moldova. According to the Mediafax news agency, the "problem of Bucharest-Chisinau relations is treated with maturity and fewer emotions," with the Romanian authorities being interested in supporting "a democratic evolution in Moldova." Ungureanu reiterated that Romania is the European chance of Moldova because it is the only member state of the E.U. with which Moldova will share a border. As regards the "Transnistrian issue", the Romanian foreign minister said that Romania analyses the "potential danger of existence of an illegitimate zone at only 200-300 kilometres from border" and solutions to such a problem are being considered, but Chisinau does not show opening in this respect.
The Romanian foreign minister has stated at a TV programme on the TV channel Realitatea TV that Moldova and Romania are two sovereign states with one nation and the dialogue between the two countries are not held from arrogant positions. Mihai Ravan Ungureanu noted that a more intensive cooperation is discussed at all meetings with Moldovan officials, aimed to speed up the European route of Moldova, denying the statements that an offer seeking the merger of the two states was launched. According to the ministry, Bucharest respects the territorial integrity of the neighbouring state and proposes only help for European integration. Ungureanu stressed that Romania could be a good neighbour and ally of Moldova for integration into the E.U., with Bucharest standing ready to provide assistance for adjustment of legislation and avoidance of some mistakes in the process of approaching the E.U. He evoked the quality of institutions in charge with integration among main current problems of Moldova.
Romanian Defence Minister Teodor Atanasiu has told the summer school of PNL that the relations between Romania and Moldova are pretty cold "because the Chisinau authorities do not consider Romanians brothers." The minister added that Romania has managed to persuade the ally countries both at the E.U. and NATO levels that the solution to Transnistria cannot be the same as to Kosovo and a single solution to conflicts from the European region must not exist.
Romanian Minister of Economy and Trade Codrut Seres stated that Moldova has asked Romania to deliver electricity in 2006-2007 for emergencies. The Romanian authorities have received the request of Moldova but they avoid responding so far. The minister noted that Moldova owes about 30 million euros to Romania for previous electricity deliveries.
Moldova's debt toward the Russian Federation amounted to 144 million dollars on January 1, 2006. The basic debt is 122 million dollars, while the interest afferent to loans accounts for 22.6 million dollars. Moldovan minister of finance said that the debts toward Russia are loans released to the Chisinau government starting 1992-1993 to pay for energy resources. Pop noted that 30 million dollars out of the total debt represents loans granted to Transnistria, but Chisinau has assumed these debts in exchange for Moscow's consent to restructure bilateral debts via the Paris Creditors Club. He added that the Moldovan government will negotiate soon with the Russian authorities the revision of interests on some debts toward Russia.
The Transnistrian mass media said that the electoral commission in Tiraspol has discussed the preparation for the September 17 referendum on relations with Moldova. The commission considers that a polling station could open in the representation of the unrecognised Transnistrian Republic in Moscow.
The official representative of the Russian Foreign Ministry, Mikhail Kaminin, has summarised the bilateral relations with Moldova in an interview with the RIA Novosti news agency. According to Kaminin, Russia continues to be one of main commercial-economic partners of Moldova, as this country covers about 22 percent of the volume of external economic activities of Moldova. In January-May 2006, the cargo transportation dropped by 4 percent, compared with the similar period of 2005, down to 375.6 million dollars, while the main factors that influenced the reduction of Russian imports in Moldova included the decline of exports of alcohol drinks (by 39 percent) and of ferrous metals from Transnistria (by 54 percent). Russia's investments in Moldova's economy exceed 200 million dollars and more than 400 enterprises with participation of Russian capital are registered in Moldova. The Russian official considers that the common vector of development of Russian-Moldovan cooperation does not correspond to the strategic partnership and a clear political willingness for a long-perspective activity; constructive approach of problems based on respect for reciprocal interests must help combat the negative trends.
The Russian mass media has quoted the head of the Russian sanitary service Rospotrebnadzor, Gennady Onishchenko, as saying that only quality production of Georgian and Moldovan winemakers will be on sale in Russia, while the counterfeited wines will not be accepted on Russian market. Onishchenko noted that "good, quality wines only will come back, if they are accepted." According to Onishchenko, analyses revealed that 9 out of 10 bottles on sale were counterfeited and 57 percent of Moldovan wines and cognacs tested at Russian laboratories unfit the sanitary norms. For these reasons, more than 100,000 litres of wines imported from Moldova have been in Moscow alone.
Experts of the State of World Liberty Agency have released a new World Liberty Index, with Moldova being ranked the 93rd place among 159 states.
According to a report released by International Crisis Group on August 17, Moldova's future is uncertain. The document reveals that the Chisinau governance has posted little willingness to eradicate corruption and to improve the business climate, and it seems that its policy on Transnistria is based on rhetoric rather than on a commitment. International experts recommend the E.U. to provide more technical assistance for implementation of reforms in Moldova, with the condition that our country demonstrates a real willingness to use this support efficiently.
Israel's Parliament (Knesset) has created the Parliamentary Friendship League Israel-Moldova. According to the Ministry of Foreign Affairs and European Integration, the Friendship League will be headed by Moldovan-born politician Avigdor Liberman, chairman of the Party Israel - Our Home.
National particularities of declaring incomes and estate
Sergiu Grosu
The Central Commission for the Control (CCC) of declarations on incomes and properties released on August 25 some data on estate of first-ranking dignitaries of Moldova to mass media. The event has aroused the attention of public opinion, becoming a delight for mass media. The way how this information was released made various agencies and publications comment on the event in a very various manner - from expressing puzzle to emanating a torrent of irony and even sarcasm.
Like earlier, the main opinion was that a) the Law # 1264-XV from 19.07.2002 concerning declaration and control of incomes and property of state dignitaries, judges and prosecutors, public functionaries and high-ranking officials is a formal and inefficient act; b) the data from declarations do not correspond to reality, unfit the elementary common sense; c) the transparency of public authorities is stagnating; d) the efficiency of control in the invoked field is not discernible1.
Several facts should be outlined in this context:
Inquisitively, the information released by CCC does not allow estimating the estates of dignitaries in absolute figures, an important fact to satisfy senseless curiosities, but especially for an adequate taxation, but this information does not allow at least a comparative estimation of property. As a result, it may be ascertained that the implementation of the Law # 1264-XV cannot ensure the fulfilment of its declared goal - "introduction of measures to prevent and combat the unjustified enrichment of state dignitaries, judges, prosecutors, public functionaries and officials."
Firstly, the declared property of dignitaries is worth between thousands of lei (1$ ~ 13 USD) and one million lei (the highest declared value), while the proportion between extremes is approximately 200 (!). It is interesting that the reporting of declared estates of dignitaries is inversely proportionate to expectations based on information related to functions held by these dignitaries previously. As for example, the expectation that the property of some high-ranking dignitaries who have served as chairmen, prime ministers, ministers, mayors, etc., (some of them making business in the past) be worthier than the property of dignitaries who have served in education or science fields is normal. Indeed, CCC data reveal that the state of things is exactly reverse. Thus, the value of real estate (!) declared by a lawmaker from academic environment who is part of the "middle class" is tens of times higher (!) than the value of similar goods declared by dignitaries who have held leading offices for many years, after all imaginable parameters.
Curiously, many high-ranking dignitaries said that they do not know the value of their estate in general2. The palliative of those who chose not to publish absolutely wrong information if they did not hire a property estimation agency in order to comply with requirements of the law must be appreciated, but by the way, they should do this after investiture. But dignitaries throw a bad light on CCC when they declare that they do not know the value of their property, and we could think that the commission fails its tasks since it is in charge with checking their declarations.
The attitude of Moldovan authorities toward the problem of declaration and control of incomes and properties deserves a retrospective analysis, at least a summary:
Thus, the Law # 1264-XV should crown the efforts of the seven precedent years aimed to ensure the transparency of incomes and properties of dignitaries on basis of the principle bona fide. Starting January 30, 2003, the envisaged dignitaries should submit declarations. But the story of implementation of this law is an eloquent sample of inefficiency and legislative intervention with equivocal effects:
Transparency of authorities, including of declarations on incomes and properties of dignitaries, is defining for perception of seriousness and efficiency of anti-corruption fight by population. This supposition is confirmed by international experience in the field, attention paid by mass media to this topic, as well as by a series of researches in the area. Thus, a survey conducted by Transparency International - Moldova, the Centre of Journalistic Investigations and the Independent Press Association in 2004 revealed that more than 90 percent of respondents said that they are interested in property of state dignitaries; salaries of functionaries; use of public funds9 when they were asked what information they would like to learn from public authorities?
The current situation in Moldova proves that the authorities treat this topic very superficially or with reticence. It seems that the situation in this area of maximum sensitiveness is not wanted to be made clear. Thus, the information about annual incomes of dignitaries and their spouses is named confidential information, though no law classifies this information express as "state secret" or "confidential information". Article 13 (2) of the Law # 1264-XV from 19.07.2002 establishes tangentially what information is published and what information is not "secret", but this exemption is not a sufficient legal ground to qualify other information as confidential and inaccessible to public.
This consideration is especially effective for the first dignitaries in the state (parliamentarians, ministers, judges, mayors), whose salaries are public (the law on salary system in budgetary sector establishes concrete salaries for dignitaries), whose functions do not allow them to hold other remunerated activities, while the intense working regime, presumed dedication, attention of mass media, exposure and public dignity do not allow them to make important business.
Even more, the law does not obstruct dignitaries to demonstrate own initiative and to publish their declarations on incomes and property independently on basis of bona fide. On the contrary, this step would make a positive image to them, would enhance their authority, affirming a high probity in front of public opinion, electors. The plenary and thorough checking by electoral organs, control commissions and the Centre for the Struggle Against Economic Crimes and Corruption required by legislation would certify the lack of violations, giving weight to initiatives of dignitaries and destroying doubts of common citizens and voters, as well as of obvious malevolent people.
The citizen who pays taxes must be sad and desperate or motivated to resort to various tricks "justified" by behaviour of dignitaries of the highest ranking when they see that properties (apartments, fields, cars) declared by the latter are estimated at derisory prices of thousands of lei, which are tens and hundreds of times lower than their real values. Really, everybody knows that a one-room apartment built in Chisinau 20-30 years ago costs around 24,000 dollars at present, a two-room apartment is worth about 30,000 dollars, while a 3-4-room apartment costs more than 35,000 dollars. Although the legislation adopted by same dignitaries ensures legal protection, establishing that the estimation is based on property origin acts, the common citizen received in 2005 notifications from the cadastral body that his apartment evaluated recently by cadastral office is estimated at hundreds of thousands of lei. The authorities have started the evaluation of real estates at real prices in order to tax their true values. The authorities gave up the implementation of this procedure without too many explanations. As a result, the problem remains unsolved while the common elector is waiting for fair conditions for all taxpayers, so that worthy properties be taxed appropriately.
Under these conditions, how credible are the authorities who assume periodically the intention to examine the problem of amnesty of capitals, but did not adopt any decision in this respect for many years? What should citizens think about intentions of authorities to modify the Constitution in terms to exclude the provisions establishing that the licit nature of property is presented without specifying that the owners are dignitaries, public functionaries or any other citizens? Why does the Government plan to work out the draft law on declaration of incomes, properties and means of raising incomes by individuals who are citizens of Moldova10 in the 3rd quarter of 2006 instead of demonstrating its intentions to clarify the incomes and properties by improving and adequately implementing the law on declaration and control of properties of dignitaries?
The intention of any Government to know such information about its citizens may be understood, but how credible is the launching of such a census and complete control of property when the Government hints that it does not want to ensure the efficiency of control on declarations of incomes and properties of dignitaries?
The Moldovan authorities declare on different occasions that they strongly want to combat the corruption. The combat of corruption is part of strategic documents adopted earlier and recently by authorities: the national strategy against corruption; the action programme of the Government; the Economic Growth and Poverty Reduction Strategy Paper (EGPRSP); the European Union-Moldova Action Plan, the concept on Moldova's participation in the preliminary stage of the programme "Millennium Challenge Account", etc. Perhaps the international experience especially of neighbouring countries, of those which recently joined or are about to join the E.U., a desideratum of Moldovan authorities declared as a national priority should be studied in order to implement these plans and strategies successfully, isn't it?
In this respect, maybe the example of Romania is the best. It is enough to surf any website of public institutions from Romania and Moldova in order to compare the situation regarding declaration of incomes and property of dignitaries from the two countries.
Thus, official websites of the Parliament, President, Government, Chamber of Auditors, Superior Council of Magistrates, ministries and central and local services from Romania provide complete information about properties and incomes of dignitaries and publish even copies of declarations of entities. Political governors in Romania do not avoid declaring that they own important property or they raised important incomes throughout their mandates. The models of applicable declarations are more comprehensive than those filled by dignitaries from Chisinau, with declarations containing information about address, surface, category, taxation value and mode of gaining the owned real estate; brand and year of make of automobiles, earnings, other sources established by legislation.
It would be an exaggeration to believe that the transparency demonstrated by authorities and politicians from Romania has killed the corruption in country. But this transparency based on legislative and normative regulations implemented consistently through clear and open procedures offers very precise references for estimation of the impact of holding a public office on properties and other goods of dignitaries and public functionaries by public opinion. Of course, the reformation of this field was speeded up in Romania by imperative need of fulfilling the requirements for entry into the E.U., which does not accept taxpayers to hide information of public interest.
Of course, dignitaries and public functionaries from Moldova know the recent experience of Romania, its effects and impacts. Many Moldovan dignitaries may be overwhelmed by fate of some Romanian counterparts and colleagues whose properties have incredible origins. Many dignitaries and public functionaries from Moldova could have rich and generous "aunts", but this does not count the most. The most important conclusion is that the declaration of real values of properties of dignitaries in Romania did not challenge a social seism with unpredictable and harmful consequences for the Romanian state. We may suppose that the real declaration of estates and incomes will not challenge misunderstandings from common citizens in Moldova, but on the contrary, the process would be understood as transitory from a country of "crooked mirrors" to a normal state based on the rule of law.
It is known from sociological surveys, ratings of national and international organisations specialised in combating the corruption, as well as from usual practice of common citizens that Moldova is a country with a high corruption rate. Objectively, the political corruption, the so-called "peak corruption", produces the most harmful phenomena whose collateral effects make the corruption of medium level "flourish". The latter is spread more widely though it involves more petty functionaries, leaving pale traces on reporting and mediation of discovery of minor bribery and serving as a screen for "settlement of serious actions" this way.
The comparisons mentioned above regarding the way the dignitaries make public their incomes and value of properties, actions of authorities against corruption make Moldova lose real opportunities of fast progress forward European integration. Thus, the "national consensus" for European integration is pretty ephemeral from this point of view. It means that the expectations of Moldovan citizens to see their country engaged on a normal groove are illusory. Truly, learning information about declared values of properties of dignitaries and public functionaries, citizens should suppose that Moldova is ruled by altruists, true "servants of people" who serve the public benefit in the detriment of their own benefit. But the same citizens are justified to ask why tens of candidates queue for eligible public posts? Why the electoral race for these offices is so fiery and without compromise, except for the "April 4 voting"? Is the "introduction of measures for prevention and combat of unjustified enrichment" the main field of the "national consensus" for the entire political class (not only between power and "constructive opposition", the way it happened with the "April 4 voting", but also the consensus with the participation of "active opposition" on basis of hyper-equality and even as loyal as possible competition), like we see it when incomes are declared?
We may admit that governors resort to tricks anywhere, though this is not an excuse for those from Moldova. But what illusions should Moldovan citizens nourish regarding the opposition, if the latter fails an extraordinary opportunity clear to simple citizens to demonstrate its skills of "watchdog" of democracy and to apply the blow of grace to governors on a so prolific field? Why leaders of the "active" opposition who accuse the "constructive" opposition of betraying electors (!) and conspiracy with communists rally them and post the "poverty" like a virtue, why they do not admit that the displayed "poverty" is understood as a simple manifestation of conformism and cynicism? Under these conditions, there is a risk that guarantors may turn Moldova into a country with failed opportunities, while the opposition make citizens lose all illusions. It seems that unexpected opportunities open to the extra-parliamentary opposition to manifest itself.
The publication of some data regarding value of properties of Moldovan dignitaries has outlined very important facts: a) the ensuring of transparency and control of truth of information about estates of dignitaries are mimicked in continuation; b) dosing of information, legislative and normative ambiguities reduce significantly the confidence of citizens for efficient and responsible governance capable to honour own promises and provisions of multiple plans and strategies; c) these facts produce negative social effects on European integration process, implementation of the E.U.-Moldova Action Plan, throwing doubts on sincerity of international commitments of Moldova.
A series of decisive measures must be taken under these conditions:
"Independence" of Moldovan economy
Iurie Gotisan
Less than 5% of Moldovan exports were formally surrounding the central decision-making courts, but they were oriented exclusively at REAC (Reciprocal Economic Assistance Council) countries. As a result of these and other structural factors in that period, the comparative advantages of Moldova still remain underused. The current base of "independent" economy was created in a plenty of political and social events at the crossroad of the 8th and 9th decades of last century, inheriting grave structural distortions from the Soviet economy. At the same time, we consider that we must not invoke the inherited problems as a primary cause of our problems, a fact confirmed among others by notable economic accomplishments of the Baltic Countries, which were integrated into the economic system of the Soviet Union in a much bigger measure than Moldova did. In addition, those who ruled the country did not know how to use their political independence in order to gain an economic independence.
The political and social instability that dominated in Moldova in the past decade along with the lack of skills and knowledge of managing the national economy through coherent and adjusted economic policies are the critical factors that produced the lack of notable economic accomplishments. Despite the economic growth registered in the past five years, we may affirm that the Moldovan transition was not successful in general; the GDP of 2005 was only 40% of the level of 1990. Being involved in foreign debts (about 1.9 billion dollars) and interior debts (over one billion dollars) and facing huge commercial deficits, Moldova's economy will have to work for creditors the next years. Another pretty important indicator - the unemployment rate - should be also mentioned. Official statistics show an unemployment rate of around 7%, which is comparable with that of most developed countries, but the real unemployment rate has reached very high levels in reality, with the World Bank estimating a rate of 11-12% (15-17%, according to other sources, this fact being also confirmed by hundreds of thousands of Moldovans working illegally abroad). The foreign investments allocated to Moldova in the past years are estimated to be lower than the value of international trafficking in drugs which is penetrating our country. The low inflow of foreign direct investments was due to the economic crisis, political instability and ambiguous legislative framework.
Most trenchant deficiencies of Moldovan economy have a structural nature at the level of production. Few East European countries demonstrate such an exaggerated share of agriculture in GDP (about 20-22%) and this produces an overwhelming dependence on climatic factors. At the same time, the share of population employed in agriculture (about 40%) is higher than the contribution of this sector to GDP, this demonstrating the fact that the lowest labour productivity is registered in agriculture, which remains of subsistence in a big measure. The industry is still a big consumer of energy and it is inefficient as we have inherited it from the Soviet Union, while the physical but especially moral wear of technologies and technical capital (some installations are older than 40-50 years), as well as old marketing and management systems are the main cause. An important but often ignored fact is that Moldova was not capable to administrate the conversion of production made by military-industrial factories, losing at the same time the markets for their specific goods.
The lack of a technical and institutional infrastructure obstructed and still halts the normal circulation of goods. The state kept the monopolist positions regarding the acquisition of agricultural materials, with entrepreneurs working in this field having to accept derisory prices for their products. In addition, nobody has worked hard to create a regional agricultural exchange capable to ensure not only outlets for Moldovan agricultural production but also to serve some East European countries. The domestic market is small or it does not exist, while the access of Moldovan industrial production to foreign markets is often blocked. Eastern markets are instable (the financial crisis from summer-autumn 1998 and the recent commercial-economic blockades of Moscow are eloquent examples), while most of European markets are closed for our products, which do not meet the European quality standards so far. In addition, the involvement of different criminal circles and often transborder, which hold enough means and branches to control this bearing of national economy, is a critical factor in the field of circulation. It should be mentioned that businesspersons have to work illegally or to export their capitals to other countries because of the hard fiscal pressure and administrative-bureaucratic barriers.
We have lost one part of bench marks in these years of transformations and changes marked by huge social and human costs, moving from inertia in continuation. The arrival of communists to rule the country has marked this fact one more time. Their impressive political ascension is explained by fact that the precedent governors have failed to capitalise the support that the population seemed to grant to transition at the beginning. The setup of the communist government was marked by a clear course of suffocation of private initiative, a fact that President Voronin has admitted more than once.
At the same time, the state's institutions should not be blamed for everything, as they are still weak, inefficient and face a deficit of financial and human resources. Civil society carries a big guilt because it is indifferent and lacks initiative. Or, the private initiative is the fundamental condition for prosperity of a society, as demonstrated by classicists of economic liberalism. One should rely on own capacities when the state remains corrupt and incapable. Therefore, more action, incision and personal courage would be the ingredients of our success as society, since they are capable to ensure a normalisation of things in a predictable future.
The following contributed to this issue:
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