The creation of a favorable environment and attraction of foreign investment to the field remain the main factors for revitalizing Moldova’s industry, experts Ion Tornea and Sergiu Tirigan said in a debate staged by the Institute for Development and Social Initiative “Viitorul” and Radio Free Europe, IPN reports.
Speaking about Moldova’s reindustrialization after the dismemberment of the USSR, the experts said the share of industry in the GDP fell from 60% before 1989 to 15% at present. According to them, 70% of the companies that worked in 1989 were closed, while the number of employees decreased from 456,000 to 148,000.
Unlike other countries, like Slovakia for example, which also lost the old production relations and a part of the export markets, Moldova didn’t manage to modernize its enterprises after the production technologies for the former Soviet military complex were withdrawn. “The re-equipment was to take place by privatization, by selling these companies to investors. This wasn’t done. Meanwhile, their qualified personnel changed workplaces. In Slovakia, this exodus of industrial workers didn’t occur because they managed to substitute the old production relations with new ones,” stated Ion Tornea.
“Currently, Moldova’s industry has three main components. The food and beverages industry accounts for about 5%, the electricity and gas industry – for another 5%, while the extractive industry – for 3.7%,” said Sergiu Tirigan.
The experts noted that the food industry is traditional in Moldova and has great prospects given also the opportunities offered by the DCFTA, which is part of the Association Agreement with the EU. In this regard, the experts underlined the necessity of manufacturing products that will meet the standards both on the home and foreign markets and of urgently restructuring the products certification system.
The participants in the debate said that Moldova now does not have potential and technological capacities for reindustrialization. These could be imported by attracting foreign investment. The state should thus concentrate on the training of skilled labor force that foreign investors would need to implement important industrial projects.
Another recommendation is to rehabilitate or rebuilt the infrastructure so that the potential investors and the population enjoy good roads, modern transport networks and other facilities and to strengthen the state institutions so that these are more efficient and more transparent in the dialogue on the country’s reindustrialization with the potential investors.
