Moldova needs an average annual economic growth of 7% for the next generation to reach at least half of the living standards in the EU. Only an annual growth of 10% would allow catching up with the EU member states towards 2040. Such conclusions are contained in the preliminary report “The Republic of Moldova 2014: State of the Nation Report” that was compiled by the Interdependent Analytical Center “Expert-Grup”, IPN reports.
Expert Alexandru Fala said that without appropriate structural modernization, the economic growth will not generate decent workplaces and sufficient economic opportunities for substantially improving the living standards of the people. Regardless of the political preferences of the ruling parties, these must join efforts so as to achieve this objective and ensure convergence with the living standards in the European countries.
According to Alexandru Fala, the progress made on the path to European integration is compatible with the proposed national idea of rapid economic growth and development. However, the process of association and even European integration will bring benefits only as a result of profound cultural, structural and institutional reforms. In particular, they imply the strengthening of the essential democratic institutions, with emphasis on party funding transparency and transparency and public control over the incomes and interests of persons holding public posts. Other priorities refer to the education of a more enterprising young generation, the elimination of constraints imposed on businesses and the redefining of the role of the state in the economy.
The expert noted that the quality of human capital remains a fundamental obstacle to economic development. Despite the fact that the education sector is a super-extensive one in terms of infrastructure and financing, the quality and efficiency of investments in education are among the poorest in the region because a series of critical structural reforms have been postponed during the last few years. As a result, the education system remained detached from the economic, demographic and social realities. Thus, the correlation of the education offer with the demand on the part of the real sector and the anchoring of the sector in the budgetary constraints must be the immediate priorities of the Government.
Alexandru Fala also said that the Government made progress in implementing the association agenda with the European Union, the Association Agreement being signed and ratified at a rather high pace. However, the authorities didn’t take into account the fact that the European integration is related not only to the foreign policy, but also to the internal one. Despite the unprecedented support on the part of the international community, especially the EU and the U.S., the Government does not benefit from the same support on the part of the population.
In conclusion, the expert said the communication strategy centering on the European integration process must be balanced and based on realistic messages. The fact that the benefits of the Association Agreement with the EU depend on a series of difficult structural reforms and the rise in foreign direct investments in the economy should not be neglected. Instead of focusing on messages that create high expectations, the communication strategy should lay emphasis on permanent interaction with the population, regardless of the electoral cycle and political context.
