{"id":431963,"date":"2015-08-12T08:30:50","date_gmt":"2015-08-12T05:30:50","guid":{"rendered":"http:\/\/www.moldova.org\/?p=431963"},"modified":"2015-08-12T08:30:50","modified_gmt":"2015-08-12T05:30:50","slug":"us-ambassador-potential-investors-are-discouraged-by-official-corruption-in-moldova-interview","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/us-ambassador-potential-investors-are-discouraged-by-official-corruption-in-moldova-interview\/","title":{"rendered":"US Ambassador: Potential investors are discouraged by official corruption in Moldova \/\/ INTERVIEW"},"content":{"rendered":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>

The current US Ambassador to Moldova, James D. Pettit, has been here for about half a year, enough to witness a change of prime-ministers and the formation of a new political coalition. In an exclusive interview for Moldova.ORG, he shares his views on several topical issues in our country.<\/em><\/p>\n

-Mister Ambassador, it’s been a few months since you came into office. Which are the projects started or finished during this spell that you are proud of?<\/b><\/p>\n

-We have a lot of assistance projects here in the Republic of Moldova. I can’t think of any programs that started and ended during the time I’ve been here, but certainly everyone is familiar with the Millennium Challenge Corporation program, building the highway up north, towards Soroca, and also the refurbishment of 10 Soviet-era irrigation plants, which are now operational, providing much-needed irrigation to farmlands.<\/p>\n

USAID has numerous programs in diverse sectors of society. Some of them in the are of governance, they work with civil society, they work on issues such as judicial reform, we have training for law enforcement. USAID is also active in economic growth activities, including high-value agriculture.<\/p>\n

And of course we have our Peace Corps volunteers, over 100 of them deployed throughout the country, assisting at the community level.<\/p>\n

-You’re probably following what happens with these projects after they end. You’ve seen that the Sarateni road has been damaged by the locals, I guess this affects the Embassy staff in a way. Do you have a message in this regard?<\/strong><\/p>\n

-It’s very important with our projects that we have acceptance and buy-in from the local community. Once these projects are completed, their sustainability has to be guaranteed by the people who benefited by the programs.<\/p>\n

And, for example, with the Millennium Challenge Corporation irrigation projects, we’ve created local water authorities under Moldovan law to ensure that these irrigation facilities are properly managed for the years in the future.<\/p>\n

-The US has repeatedly expressed its support for the fight against corruption in Moldova. Are you happy with way these reforms are unfolding?<\/strong><\/p>\n

-I think progress in the anticorruption fight has been very slow. The programs we’ve worked on, as I mentioned earlier, involve reforms in the judiciary, which includes things such as audio-recordings for cases, as well as random case-assignment to judges.<\/p>\n

We also have assistance projects designed for streamlining the bureaucratic process for permitting. In general, we think that economic growth in Moldova is only going to happen when authorities create an atmosphere that is friendly for business and entrepreneurship.<\/p>\n

But official corruption corruption remains the primary obstacle toward improving Moldova’s economy.<\/p>\n

-Do you know of any American businessman who returned to the US because of this or avoided doing business here knowing that Moldova is a corrupt country?<\/strong><\/p>\n

-There are definitely cases of American and other foreign investors and enterprises who have been discouraged by the lack of a business-friendly environment here.<\/p>\n

And quite often, potential American or foreign investors who come here are discouraged by what they see and they look for markets elsewhere.<\/p>\n

Another issue that is very discouraging for foreign investors is the lack of transparency in the judicial sector. Too many investors and companies discovered that they cannot be assured that contracts will be honoured in the courts.<\/p>\n

-Let’s turn to the situation in the banking sector. Do you think that the authorities reacted as we, society and the diplomatic corps, expected?<\/strong><\/p>\n

-The banking crisis is clearly something that has been transpiring for a number of years. And regardless who the guilty parties are, it shows a major deficiency in how the banking regulatory scheme is implemented.<\/p>\n

Despite an initial audit, the so-called Kroll report, there has been very little progress since then in investigating where the money went, who is responsible and what efforts need to be made to recover the stolen money.<\/p>\n

I do understand that the government is taking steps to liquidate the three problematic banks, but this problem will continue in the banking sector without a regulatory reforms and proper supervision.<\/p>\n

-Do you think that the situation is favourable for the authorities to start solving the economic and social issues or do we still have to wait?<\/strong><\/p>\n

-I think it’s too early to tell. It’s a brand new coalition and we wish them success. All three parties in the coalition claim to be pro-European and we hope that translates into beginning very soon the reforms required by the Association Agreement with the EU.<\/p>\n

And once negotiations with the IMF are completed we hope necessary reforms are undertaken to free up donor assistance. Our colleagues in the EU and the US government and the major international financial institutions all want to assist as well they can Moldova to implement these reforms.<\/p>\n

-Do you think there’s any chance for IMF to release funding for Moldova before the turn of the year?<\/strong><\/p>\n

-It really depends upon the progress that is made in terms of negotiations with the IMF and the ability of the Moldovan government to convince the IMF and the international development partners that they are serious about undertaking the necessary reforms.<\/p>\n

-Might the fact that Moldova has no official aspirations to become a NATO member affect the level and type of assistance it receives? For the Ministry of Defense, let’s say.<\/strong><\/p>\n

-The US completely recognizes Moldova’s right to be a neutral country and we understand it’s in their constitution. It is nevertheless a very important member of the Partnership for Peace Program.<\/p>\n

We have a very good bilateral military relationship that is aimed at modernizing Moldova’s army and helping it to be inter-operable with NATO elements in peace-keeping missions.<\/p>\n

And we anticipate that our military assistance, our military financial assistance should not only stay at the current level but should increase in the next years.<\/p>\n

We believe that a strong, modern and effective Moldovan military is essential for the security of the nation.<\/p>\n

-Could we say that the conflict in the Middle East has overshadowed the conflicts in Ukraine and Transnistria?<\/strong><\/p>\n

-I don’t think it has overshadowed attention to the regional conflict here. Obviously, there is a limited number of resources, political and financial. But we consider the regional situation, particularly in Ukraine, very serious and we’ll do everything possible to ensure that the Minsk agreements are followed.<\/p>\n

The situation with Transnistria\u2026 progress continues, but it’s very, very slow. We are hopeful that the 5+2 format can be revived in the near future, but I feel that what’s most important now is continued progress at the 1+1 level, between Chisinau and Tiraspol.<\/p>\n

The entire region, including Transnistria, is experiencing a period of economic stress and it’s very important that the authorities of Chisinau and neighbours such as Ukraine do everything to ensure that Transnistria remains economically stable.<\/p>\n

One important way to address this are current discussions with the EU on assisting Transnistria to comply with the DCFTA. This will ensure that Transnistria has good access to the European market.<\/p>\n

-What if Tiraspol refuses to comply with the DCFTA? Moldova and EU cannot force it.<\/strong><\/p>\n

-No, no one wants to force Transnistria into doing a thing that it’s not seen in their own interests. But it is difficult for me to even imagine how Tiraspol could think that denying itself access to the European market, which the largest market in the world, would be beneficial to its people.<\/p>\n

-Russia is selectively allowing some companies from Moldova to export to Russia. What do you think about this?<\/strong><\/p>\n

-I think it’s good that they are lifting their punitive embargo on some companies. R|ussia’s a very natural export market for Moldova’s produce and we hope that their easing of the embargo will continue.<\/p>\n

-What do you think about the situation of Moldovan mass-media. Do you think Moldova can and should fight against Russian propaganda?<\/strong><\/p>\n

-I think the best way to counter Russian propaganda is to be a success as a nation. Moldova doesn’t have the financial resources to counter Russia’s 1 billion+ propaganda.<\/p>\n

But it’s very important to promote the level of Moldova’s news programming and the professionalization of its journalists. And it’s also important to ensure there is a free and independent mass-media environment in Moldova.<\/p>\n

-Thank you.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>The current US Ambassador to Moldova, James D. Pettit, has been here for about half a year, enough to witness a change of prime-ministers and the formation of a new political coalition. In an exclusive interview for Moldova.ORG, he shares his views on several topical issues in our country. -Mister Ambassador, it’s been a few […]<\/p>\n","protected":false},"author":9,"featured_media":431966,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,3],"tags":[],"class_list":["post-431963","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-important-en","category-politics"],"content_social_share":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>

The current US Ambassador to Moldova, James D. Pettit, has been here for about half a year, enough to witness a change of prime-ministers and the formation of a new political coalition. In an exclusive interview for Moldova.ORG, he shares his views on several topical issues in our country.<\/em><\/p>\n

-Mister Ambassador, it’s been a few months since you came into office. Which are the projects started or finished during this spell that you are proud of?<\/b><\/p>\n

-We have a lot of assistance projects here in the Republic of Moldova. I can’t think of any programs that started and ended during the time I’ve been here, but certainly everyone is familiar with the Millennium Challenge Corporation program, building the highway up north, towards Soroca, and also the refurbishment of 10 Soviet-era irrigation plants, which are now operational, providing much-needed irrigation to farmlands.<\/p>\n

USAID has numerous programs in diverse sectors of society. Some of them in the are of governance, they work with civil society, they work on issues such as judicial reform, we have training for law enforcement. USAID is also active in economic growth activities, including high-value agriculture.<\/p>\n

And of course we have our Peace Corps volunteers, over 100 of them deployed throughout the country, assisting at the community level.<\/p>\n

-You’re probably following what happens with these projects after they end. You’ve seen that the Sarateni road has been damaged by the locals, I guess this affects the Embassy staff in a way. Do you have a message in this regard?<\/strong><\/p>\n

-It’s very important with our projects that we have acceptance and buy-in from the local community. Once these projects are completed, their sustainability has to be guaranteed by the people who benefited by the programs.<\/p>\n

And, for example, with the Millennium Challenge Corporation irrigation projects, we’ve created local water authorities under Moldovan law to ensure that these irrigation facilities are properly managed for the years in the future.<\/p>\n

-The US has repeatedly expressed its support for the fight against corruption in Moldova. Are you happy with way these reforms are unfolding?<\/strong><\/p>\n

-I think progress in the anticorruption fight has been very slow. The programs we’ve worked on, as I mentioned earlier, involve reforms in the judiciary, which includes things such as audio-recordings for cases, as well as random case-assignment to judges.<\/p>\n

We also have assistance projects designed for streamlining the bureaucratic process for permitting. In general, we think that economic growth in Moldova is only going to happen when authorities create an atmosphere that is friendly for business and entrepreneurship.<\/p>\n

But official corruption corruption remains the primary obstacle toward improving Moldova’s economy.<\/p>\n

-Do you know of any American businessman who returned to the US because of this or avoided doing business here knowing that Moldova is a corrupt country?<\/strong><\/p>\n

-There are definitely cases of American and other foreign investors and enterprises who have been discouraged by the lack of a business-friendly environment here.<\/p>\n

And quite often, potential American or foreign investors who come here are discouraged by what they see and they look for markets elsewhere.<\/p>\n

Another issue that is very discouraging for foreign investors is the lack of transparency in the judicial sector. Too many investors and companies discovered that they cannot be assured that contracts will be honoured in the courts.<\/p>\n

-Let’s turn to the situation in the banking sector. Do you think that the authorities reacted as we, society and the diplomatic corps, expected?<\/strong><\/p>\n

-The banking crisis is clearly something that has been transpiring for a number of years. And regardless who the guilty parties are, it shows a major deficiency in how the banking regulatory scheme is implemented.<\/p>\n

Despite an initial audit, the so-called Kroll report, there has been very little progress since then in investigating where the money went, who is responsible and what efforts need to be made to recover the stolen money.<\/p>\n

I do understand that the government is taking steps to liquidate the three problematic banks, but this problem will continue in the banking sector without a regulatory reforms and proper supervision.<\/p>\n

-Do you think that the situation is favourable for the authorities to start solving the economic and social issues or do we still have to wait?<\/strong><\/p>\n

-I think it’s too early to tell. It’s a brand new coalition and we wish them success. All three parties in the coalition claim to be pro-European and we hope that translates into beginning very soon the reforms required by the Association Agreement with the EU.<\/p>\n

And once negotiations with the IMF are completed we hope necessary reforms are undertaken to free up donor assistance. Our colleagues in the EU and the US government and the major international financial institutions all want to assist as well they can Moldova to implement these reforms.<\/p>\n

-Do you think there’s any chance for IMF to release funding for Moldova before the turn of the year?<\/strong><\/p>\n

-It really depends upon the progress that is made in terms of negotiations with the IMF and the ability of the Moldovan government to convince the IMF and the international development partners that they are serious about undertaking the necessary reforms.<\/p>\n

-Might the fact that Moldova has no official aspirations to become a NATO member affect the level and type of assistance it receives? For the Ministry of Defense, let’s say.<\/strong><\/p>\n

-The US completely recognizes Moldova’s right to be a neutral country and we understand it’s in their constitution. It is nevertheless a very important member of the Partnership for Peace Program.<\/p>\n

We have a very good bilateral military relationship that is aimed at modernizing Moldova’s army and helping it to be inter-operable with NATO elements in peace-keeping missions.<\/p>\n

And we anticipate that our military assistance, our military financial assistance should not only stay at the current level but should increase in the next years.<\/p>\n

We believe that a strong, modern and effective Moldovan military is essential for the security of the nation.<\/p>\n

-Could we say that the conflict in the Middle East has overshadowed the conflicts in Ukraine and Transnistria?<\/strong><\/p>\n

-I don’t think it has overshadowed attention to the regional conflict here. Obviously, there is a limited number of resources, political and financial. But we consider the regional situation, particularly in Ukraine, very serious and we’ll do everything possible to ensure that the Minsk agreements are followed.<\/p>\n

The situation with Transnistria\u2026 progress continues, but it’s very, very slow. We are hopeful that the 5+2 format can be revived in the near future, but I feel that what’s most important now is continued progress at the 1+1 level, between Chisinau and Tiraspol.<\/p>\n

The entire region, including Transnistria, is experiencing a period of economic stress and it’s very important that the authorities of Chisinau and neighbours such as Ukraine do everything to ensure that Transnistria remains economically stable.<\/p>\n

One important way to address this are current discussions with the EU on assisting Transnistria to comply with the DCFTA. This will ensure that Transnistria has good access to the European market.<\/p>\n

-What if Tiraspol refuses to comply with the DCFTA? Moldova and EU cannot force it.<\/strong><\/p>\n

-No, no one wants to force Transnistria into doing a thing that it’s not seen in their own interests. But it is difficult for me to even imagine how Tiraspol could think that denying itself access to the European market, which the largest market in the world, would be beneficial to its people.<\/p>\n

-Russia is selectively allowing some companies from Moldova to export to Russia. What do you think about this?<\/strong><\/p>\n

-I think it’s good that they are lifting their punitive embargo on some companies. R|ussia’s a very natural export market for Moldova’s produce and we hope that their easing of the embargo will continue.<\/p>\n

-What do you think about the situation of Moldovan mass-media. Do you think Moldova can and should fight against Russian propaganda?<\/strong><\/p>\n

-I think the best way to counter Russian propaganda is to be a success as a nation. Moldova doesn’t have the financial resources to counter Russia’s 1 billion+ propaganda.<\/p>\n

But it’s very important to promote the level of Moldova’s news programming and the professionalization of its journalists. And it’s also important to ensure there is a free and independent mass-media environment in Moldova.<\/p>\n

-Thank you.<\/strong><\/p>\n

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