The Moldovan government invests too little financial and human resources into economic diplomacy, which is unequally split between the Ministry of Economy, the Ministry of Foreign Affairs and European Integration, and the Investment Agency. The findings are contained in an IPRE policy brief titled “How do we relaunch Moldova’s economic diplomacy?”, IPN reports.
As a result, “economic diplomacy in our country is an area with untapped potential, especially due to a long lack of political will, but also systemic problems that have worsened in recent years, such as the shortage of labor due to depopulation. Other causes are poor interaction, communication and coordination between key institutions.”
Although the country has various written strategies at its disposal, and a memorandum has been concluded between the MFAEI, the Ministry of Economy and the Investment Agency, there is no strategic approach to the issue. The policy’s brief author Elena Varta, a former MFAEI employee, offers examples of deficiencies in the decision-making process. Moldova does not have trade and economic offices in Prague or Sofia, although exports to the Czech Republic (first quarter 2021 - 2.9%, in 2020 - 3.2%) were similar to those to Ukraine (first quarter 2021 – 2.8%).
Although a trade and economic office has been set up in the United Arab Emirates, the position has remained vacant for more than three years. This is surprising, given that the explanatory note drawn up to justify the need of opening the Embassy and the Consulate General lists economic considerations: “making the most of the enormous potential of this geographical area from an economic and investment point of view”, and ensuring “direct dialogue with representatives of the UAE business community interested in the Republic of Moldova”.
Elena Varta argues that “in order to improve economic diplomacy, different interventions will be needed: increase budget allocations; adopt and update legislation; clearly delimit subject-matter jurisdiction for each key institution; and set immediate, medium and long-term goals, but also performance indicators”.
Moldova needs a new long-term vision on economic diplomacy, concludes the study, by updating the existing mechanism, targeting in particular the institutional, functional and budgetary framework, based on external best practices, such as those of Estonia, the Czech Republic, Latvia or the Netherlands. At the same time, in the current economic context, given the existing budgetary constraints, short-term interventions that do not require considerable investment or effort are needed for the next period.
The policy brief has been developed within the project “Bridges of Connection with the EU: Securing the Europeanization process of the Republic of Moldova”, implemented with the support of the Soros Foundation Moldova.
