{"id":409223,"date":"2015-01-19T23:24:07","date_gmt":"2015-01-19T21:24:07","guid":{"rendered":"http:\/\/www.moldova.org\/?p=409223"},"modified":"2015-01-19T23:24:07","modified_gmt":"2015-01-19T21:24:07","slug":"viorel-chivriga-the-delayed-reforms-in-moldova-had-a-negative-impact-on-the-economy-in-2014","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/viorel-chivriga-the-delayed-reforms-in-moldova-had-a-negative-impact-on-the-economy-in-2014\/","title":{"rendered":"Viorel Chivriga: The delayed reforms in Moldova had a negative impact on the economy in 2014"},"content":{"rendered":"Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>

According to the economic expert, Viorel Chivriga, 2014 was a year of lessons for Moldova. It remains to be seen if Chisinau learned them.<\/p>\n

Viorel Chivriga: <\/b>In 2014, the three countries which have signed the Association Agreement with the EU were actually targets of destabilization actions on behalf of the Russian Federation. The fact that Moldova was affected less shows that the government took pretty good measures. However, Moldova’s sovereignty has been undermined several times. Even during the peak of the events in Ukraine there were some hints that Moldova and Georgia could be the next targets.<\/p>\n

Economically we were very cruelly hit by the arbitrary decisions of the Russian institutions Rosselhoznadzor and Rospotrebnadzor. Whether Moldova has coped with that or not is still a subject of discussion. In fact, these events have revealed our weaknesses that we should work on in future.<\/p>\n

What surprised me though is that all the three countries \u2013 Moldova, Ukraine, and Georgia – have shown dignity and have not given up. They went on signing the Association Agreement with the EU. The agreement is a document that can serve as basis for the Moldovan government programme for the next four years- a program of the country modernization that we lacked in the last two decades.
\nOn the economic side, the delayed reforms was the biggest problem in 2014, and those who suffered most were the citizens and the entrepreneurs that have developed useful economic activities for the country, but who have lost a lot.<\/p>\n

On the other hand, I was positively surprised by the solidarity shown with Moldova, Ukraine and Georgia by other CIS countries. Also, a great support came from the EU countries and the USA. The Moldovan people have appreciated much the economic, political and social support provided by the development partners.
\nThere are things that show that 2014 was a really crucial year for the Republic of Moldova and the big test which took place on November 30th \u2013 the Parliamentary elections, showed that the country is on the right path, but a path on which we should go straight as the past elections showed we are on the edge and this has upset many people. So the government should go hand in hand with the people, and not only initiate reforms but also realize them so that the people see their benefits.<\/p>\n

The year 2015 should not be just a turning point and a year of continuation of the reforms started in 2014, but also a year of delivery. We should accomplish all the reforms that we have initiated.<\/p>\n

Lina Gr\u00e2u: <\/b>The year 2014 ends on the background of a profound economic crisis caused by the aggression of the Russian Federation towards Ukraine. You said that Moldova has been hit hard by the Russian Federation economic embargo. Beyond that, this pressure has forced to a certain extent the local producers to seek other markets and accordingly there are voices saying that currently, these embargoes save Moldova from a very deep economic crisis like the one in 1998, when the Moldovan economy was more connected with the Russian market than at present.<\/p>\n

Viorel Chivriga: <\/b>I’m not supporting the view that the sanctions imposed by the Russian Federation brought benefits to Moldova. As a result of the embargo imposed on the Moldovan exports by the Russian Federation, the restriction of the free movement of our citizens and the political and economic blackmail by Moscow, Moldova did not gain anything. On the contrary, the most affected were the ordinary people. Hundreds of thousands of people have suffered as a result of these actions. They were the target of the actions of Russia which has tried to provoke a state of disobedience on behalf of a large part of the population. In fact, these kinds of actions are against any international law.<\/p>\n

In order to avoid similar situations in future, the economic situation should be well monitored. What happened in Moldova in the banking system shows that here we have many problems that can generate situations that could get out of control and cause enormous damage. We need to focus on diversification. We have not done this on time and we are not doing it now either. This situation could lead to unpleasant results in the coming years.<\/p>\n

First, we must learn to bring more competitiveness in the national economy. We need to use the internal reserves considering also the competitiveness that big and small investors from abroad can bring. The latter can provide key elements for the modernization of the country – transfer of expertise, experience and technology. It’s something that we do not currently have in the country. On the other hand, when we talk about diversification, we must learn not only to produce but also to enter other markets. It would be terrible to look only to the Western or Eastern market. There are also other markets and we must learn to conquer them too.<\/p>\n

L.G.:<\/b> You mentioned about the elections from November 30th. There has been nearly a month since the three parties said they would form a pro-European coalition and no consensus has been reached so far. Why is this happening and what could be the repercussions on the society and on the European course?<\/p>\n

V.C.: <\/b>I think our politicians\u2019 responsibility has always been a huge problem. It is exactly the case when you don\u2019t need months to discuss something that is indisputable: the creation of a pro-European coalition. Yes, this coalition should be maintained but should look completely different. It should be a coalition of accountable parties.
\nThe electoral programmes of these parties contain a lot of activities from the Association Agreement and the former government program that have not been realized. It is they that should form the basis of the future government programme. This government that we have been waiting to be formed should be of the highest quality in terms of the government programme and professionalism of the people promoted in the executive structure.<\/p>\n

We need an optimized number of ministries, agencies, but we also need a lot of responsibility from those in the government in order to achieve the objectives. And the government should be more careful with the achievements \u2013it usually promises rather ambitious things that fail to be realized. Instead, it should come up with concrete results that can be proven to the voters.<\/p>\n

L.G.: <\/b>From your point of view, what are the priorities for 2015? Do you think that, as the Moldovan authorities said earlier, we could submit an application to join the EU at the Eastern Partnership Summit in Riga?<\/p>\n

V.C.:<\/b> Regarding the membership, very much depends on the performance of the Republic of Moldova. The Association Agreement has to be implemented and the entire society has to be involved in this process \u2013the state institutions, the business community, the local government, academia, non-governmental sector, and every citizen. On the other hand, the relations with the donors and partners of Moldova are very good. But we must show to our citizens that we are able to complete the reforms.
\nOne of the most important reforms is the justice reform. It is a much awaited reform by the entire Moldovan society but which is being undermined and hindered by those working in the sector- by the judges who remain the same as 10 years ago.<\/p>\n

At the same time, we need ambitious reforms in the economy. We have an economy that really needs to be modernized the more quickly the better. The current model is completely outdated and harmful. What we should urgently do is to improve the business climate. It is something that we have been talking about for decades, but which remains heavily criticized and which is in urgent need for change. It requires solving old problems. For example, the political and economic marriage is destroying the competition in the country, scaring investors, ruining companies, and undermining the development of the economic sectors.<\/p>\n

Another thing we should think about is the quality of human resources. We should teach people think and work differently and bring experience and expertise from outside. This area has very direct links with the academic sector in the country which also needs to be reformed.
\nWhat is happening in the education sector, I think, is an example of maturity. Yes, it is hard, unpleasant, and sometimes hurts, but so are the reforms.<\/p>\n

If we talk about health, the things are more complicated and are rather an example of how not to do reforms. What happens in the villages of Moldova shows that in many cases people are not only deprived of the opportunity to achieve something economically, but lack basic services that people should have access to in each community.<\/p>\n

L.G.: <\/b>In conclusion, we can say that the years 2014-2015 is a period during which Moldova has good chances to break away from the Eastern area and advance more towards the EU?<\/p>\n

V.C.: <\/b>The year 2014 has already shown that there is no other way. Well, there have been many discussions about the Customs Union, but that was a trick and also a false path. What is happening now in the Russian Federation shows that this project is not sustainable and is just a trap for the countries in order to divert them from their European path.
\nThe year 2015 should be a year of reforms. It is a year in which we must demonstrate that we can make reforms, change the country and act differently. But the most important is that the year 2015 is the first year after the elections and is suitable for reforms. In the coming years – 2016-2017 \u2013 this favourable field for the reforms will diminish. So, the most ambitious reforms should be made in 2015 and for that we need a strong government with people who can assume and achieve the reforms.<\/p>\n

Lina Gr\u00e2u: \u00a0<\/b>What if the political class does not deliver on the above-mentioned reforms?<\/p>\n

Viorel Chivriga:<\/b> What happened during the election campaign and right after the elections should be a very clear signal to the entire political class: the electorate, the population will penalize those who make promises but don\u2019t keep their word, and those that come up with sterile electoral programmes. On November 30th we were on the verge of forgetting about our European course, the pro-European Moldovan population and the partners from abroad who have supported us over the past years. So, I think this is a very clear signal: folks, get down to work!<\/p>\n

The interview was done by\u00a0Lina Gr\u00e2u, foreign policy expert and programme coordinator of the Foreign Policy Association of Moldova. \u00a0<\/b><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>According to the economic expert, Viorel Chivriga, 2014 was a year of lessons for Moldova. It remains to be seen if Chisinau learned them. Viorel Chivriga: In 2014, the three countries which have signed the Association Agreement with the EU were actually targets of destabilization actions on behalf of the Russian Federation. The fact that […]<\/p>\n","protected":false},"author":6,"featured_media":409054,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-409223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"content_social_share":"Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>

According to the economic expert, Viorel Chivriga, 2014 was a year of lessons for Moldova. It remains to be seen if Chisinau learned them.<\/p>\n

Viorel Chivriga: <\/b>In 2014, the three countries which have signed the Association Agreement with the EU were actually targets of destabilization actions on behalf of the Russian Federation. The fact that Moldova was affected less shows that the government took pretty good measures. However, Moldova’s sovereignty has been undermined several times. Even during the peak of the events in Ukraine there were some hints that Moldova and Georgia could be the next targets.<\/p>\n

Economically we were very cruelly hit by the arbitrary decisions of the Russian institutions Rosselhoznadzor and Rospotrebnadzor. Whether Moldova has coped with that or not is still a subject of discussion. In fact, these events have revealed our weaknesses that we should work on in future.<\/p>\n

What surprised me though is that all the three countries \u2013 Moldova, Ukraine, and Georgia – have shown dignity and have not given up. They went on signing the Association Agreement with the EU. The agreement is a document that can serve as basis for the Moldovan government programme for the next four years- a program of the country modernization that we lacked in the last two decades.
\nOn the economic side, the delayed reforms was the biggest problem in 2014, and those who suffered most were the citizens and the entrepreneurs that have developed useful economic activities for the country, but who have lost a lot.<\/p>\n

On the other hand, I was positively surprised by the solidarity shown with Moldova, Ukraine and Georgia by other CIS countries. Also, a great support came from the EU countries and the USA. The Moldovan people have appreciated much the economic, political and social support provided by the development partners.
\nThere are things that show that 2014 was a really crucial year for the Republic of Moldova and the big test which took place on November 30th \u2013 the Parliamentary elections, showed that the country is on the right path, but a path on which we should go straight as the past elections showed we are on the edge and this has upset many people. So the government should go hand in hand with the people, and not only initiate reforms but also realize them so that the people see their benefits.<\/p>\n

The year 2015 should not be just a turning point and a year of continuation of the reforms started in 2014, but also a year of delivery. We should accomplish all the reforms that we have initiated.<\/p>\n

Lina Gr\u00e2u: <\/b>The year 2014 ends on the background of a profound economic crisis caused by the aggression of the Russian Federation towards Ukraine. You said that Moldova has been hit hard by the Russian Federation economic embargo. Beyond that, this pressure has forced to a certain extent the local producers to seek other markets and accordingly there are voices saying that currently, these embargoes save Moldova from a very deep economic crisis like the one in 1998, when the Moldovan economy was more connected with the Russian market than at present.<\/p>\n

Viorel Chivriga: <\/b>I’m not supporting the view that the sanctions imposed by the Russian Federation brought benefits to Moldova. As a result of the embargo imposed on the Moldovan exports by the Russian Federation, the restriction of the free movement of our citizens and the political and economic blackmail by Moscow, Moldova did not gain anything. On the contrary, the most affected were the ordinary people. Hundreds of thousands of people have suffered as a result of these actions. They were the target of the actions of Russia which has tried to provoke a state of disobedience on behalf of a large part of the population. In fact, these kinds of actions are against any international law.<\/p>\n

In order to avoid similar situations in future, the economic situation should be well monitored. What happened in Moldova in the banking system shows that here we have many problems that can generate situations that could get out of control and cause enormous damage. We need to focus on diversification. We have not done this on time and we are not doing it now either. This situation could lead to unpleasant results in the coming years.<\/p>\n

First, we must learn to bring more competitiveness in the national economy. We need to use the internal reserves considering also the competitiveness that big and small investors from abroad can bring. The latter can provide key elements for the modernization of the country – transfer of expertise, experience and technology. It’s something that we do not currently have in the country. On the other hand, when we talk about diversification, we must learn not only to produce but also to enter other markets. It would be terrible to look only to the Western or Eastern market. There are also other markets and we must learn to conquer them too.<\/p>\n

L.G.:<\/b> You mentioned about the elections from November 30th. There has been nearly a month since the three parties said they would form a pro-European coalition and no consensus has been reached so far. Why is this happening and what could be the repercussions on the society and on the European course?<\/p>\n

V.C.: <\/b>I think our politicians\u2019 responsibility has always been a huge problem. It is exactly the case when you don\u2019t need months to discuss something that is indisputable: the creation of a pro-European coalition. Yes, this coalition should be maintained but should look completely different. It should be a coalition of accountable parties.
\nThe electoral programmes of these parties contain a lot of activities from the Association Agreement and the former government program that have not been realized. It is they that should form the basis of the future government programme. This government that we have been waiting to be formed should be of the highest quality in terms of the government programme and professionalism of the people promoted in the executive structure.<\/p>\n

We need an optimized number of ministries, agencies, but we also need a lot of responsibility from those in the government in order to achieve the objectives. And the government should be more careful with the achievements \u2013it usually promises rather ambitious things that fail to be realized. Instead, it should come up with concrete results that can be proven to the voters.<\/p>\n

L.G.: <\/b>From your point of view, what are the priorities for 2015? Do you think that, as the Moldovan authorities said earlier, we could submit an application to join the EU at the Eastern Partnership Summit in Riga?<\/p>\n

V.C.:<\/b> Regarding the membership, very much depends on the performance of the Republic of Moldova. The Association Agreement has to be implemented and the entire society has to be involved in this process \u2013the state institutions, the business community, the local government, academia, non-governmental sector, and every citizen. On the other hand, the relations with the donors and partners of Moldova are very good. But we must show to our citizens that we are able to complete the reforms.
\nOne of the most important reforms is the justice reform. It is a much awaited reform by the entire Moldovan society but which is being undermined and hindered by those working in the sector- by the judges who remain the same as 10 years ago.<\/p>\n

At the same time, we need ambitious reforms in the economy. We have an economy that really needs to be modernized the more quickly the better. The current model is completely outdated and harmful. What we should urgently do is to improve the business climate. It is something that we have been talking about for decades, but which remains heavily criticized and which is in urgent need for change. It requires solving old problems. For example, the political and economic marriage is destroying the competition in the country, scaring investors, ruining companies, and undermining the development of the economic sectors.<\/p>\n

Another thing we should think about is the quality of human resources. We should teach people think and work differently and bring experience and expertise from outside. This area has very direct links with the academic sector in the country which also needs to be reformed.
\nWhat is happening in the education sector, I think, is an example of maturity. Yes, it is hard, unpleasant, and sometimes hurts, but so are the reforms.<\/p>\n

If we talk about health, the things are more complicated and are rather an example of how not to do reforms. What happens in the villages of Moldova shows that in many cases people are not only deprived of the opportunity to achieve something economically, but lack basic services that people should have access to in each community.<\/p>\n

L.G.: <\/b>In conclusion, we can say that the years 2014-2015 is a period during which Moldova has good chances to break away from the Eastern area and advance more towards the EU?<\/p>\n

V.C.: <\/b>The year 2014 has already shown that there is no other way. Well, there have been many discussions about the Customs Union, but that was a trick and also a false path. What is happening now in the Russian Federation shows that this project is not sustainable and is just a trap for the countries in order to divert them from their European path.
\nThe year 2015 should be a year of reforms. It is a year in which we must demonstrate that we can make reforms, change the country and act differently. But the most important is that the year 2015 is the first year after the elections and is suitable for reforms. In the coming years – 2016-2017 \u2013 this favourable field for the reforms will diminish. So, the most ambitious reforms should be made in 2015 and for that we need a strong government with people who can assume and achieve the reforms.<\/p>\n

Lina Gr\u00e2u: \u00a0<\/b>What if the political class does not deliver on the above-mentioned reforms?<\/p>\n

Viorel Chivriga:<\/b> What happened during the election campaign and right after the elections should be a very clear signal to the entire political class: the electorate, the population will penalize those who make promises but don\u2019t keep their word, and those that come up with sterile electoral programmes. On November 30th we were on the verge of forgetting about our European course, the pro-European Moldovan population and the partners from abroad who have supported us over the past years. So, I think this is a very clear signal: folks, get down to work!<\/p>\n

The interview was done by\u00a0Lina Gr\u00e2u, foreign policy expert and programme coordinator of the Foreign Policy Association of Moldova. \u00a0<\/b><\/strong><\/p>\n

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