Lack of persistent structural reforms discourages switch to export-orientated economy, experts

The recovery of the Moldovan economy after the crisis was not accompanied by perseverant promotion of structural reforms. This fact does not encourage the development of the business environment and makes the switch from consumption-based economy to export- and investment-orientated economy difficult. Such an opinion was expressed during the presentation of the 21st number of the Economic Monitor by economist Alexandru Fala, who is the author of a study on business development in 2010, Info-Prim Neo reports. The expert considers that the economy of Moldova started to develop again, but at a slow and uncertain pace. The companies do not feel a substantial improvement of the business climate, despite all the efforts made by the Government to simplify the regulatory framework and to remove the barriers hindering entrepreneurial activity. Though a law on the authorization of construction works was adopted, it is implemented with difficulty. The export-import procedures are burdensome, while the investments are not adequately protected, said the economist. In the Global Competitiveness Report, Moldova is described as an economy based on the use of production factors, with the institutions plating a central role in ensuring competitiveness. Thus, the deepening of the local public administration reform and other structural reforms should constitute priorities for the future government, Alexandru Fala said. The analyses and forecasts publication Economic Monitor is produced by the Institute for Development and Social Initiative “Viitorul”.