Moldova needs new economic development strategy - World Bank experts

Since the labour force is decreasing along with the population ageing, the exports\' growth shall be backed by new investments and an increased productivity in Moldova

The Moldova Branch of the World Bank presented at a round table the recommendations of the report Country's Economic Memorandum, which is to be examined by the World Bank management board on 9 June. Moldova needs a new economic strategy to put an end to the economic growth trend based on consumption and job shortages, World Bank experts have said.

Senior World Bank Economist for Moldova, Dino Merotto, said that in 2000-2008 Moldova saw a 22-per-cent decrease in the labour force, which accounts for 330,000 people. In the next 10 years, Moldova runs the risk to reduce the labour force by 11 per cent. "The remittances have backed the consumption and construction of houses. Yet, they will not have the same growth pace, since over 40 per cent of the employees have already left for abroad. Thus, there is a low potential for migrants and Moldova needs a new growth catalyst from exports and higher productivity," the expert said.

Since the labour force is decreasing along with the population ageing, the exports' growth shall be backed by new investments and an increased productivity.

The experts said that that among the priorities of the policies meant to promote the economic growth are the competitiveness and productivity improvement by "reforming the investment environment and the public services (energy, transport, telecommunications). The exports' competitiveness might be reached via the "liberalization of transports, a better management, enhanced technical standards, logistics and improved facilitation of exports." The World Bank experts suggested that the transport routes for operators should be liberalized and their access to market should be facilitated. They also advocated the enhancement of the regulation and transparency management of this sector (including in terms of tariffs). Also, the experts said that the outdated standards should be immediately replaced by new European ones and that the burden of the inspections should be reduced.

The Country's Economic Memorandum, which is to be examined by the management board of the World Bank on 9 June, sees 50 million dollars in annual financial assistance for the Moldovan government's agenda of reforms.

Moldpres

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