National Development Plan – probable illusion for the Moldovan society. Analysis by Info-Prim Neo.

At the middle of last week, Prime Minister Vasile Tarlev called a meeting to discuss the formulation of the National Development Plan (NDP) for 2008-2011. [Official viewpoint] According to a communiqué from the Government, the Minister of Economy and Trade Igor Dodon reported that this document had been drafted on the basis of well-defined development priorities. He said that while the plan was being drafted, the people, including from Moldova’s districts, had the possibility of taking part in the process. The same source reminded that the NDP was drafted in accordance with five strategic priorities of Moldova: 1) consolidation of a modern, democratic state based on the principle of supremacy of the law; 2) settlement of the Transnistrian conflict and the country’s reunification; 3) enhancement of the national economy’s competitiveness; 4) development of human resources, employment and promotion of social inclusion; 5) regional development. All the sections of the National Development Plan are based on the given priorities, taking account of the country’s strategic objectives. The plan of action for implementing the NDP is also being worked out. It will include concrete measures to fulfil the set tasks and objectives. The Prime Minister stressed that the NDP should include all the range of measures related to the country’s development so as to formulate a new strategic plan after the Economic Growth and Poverty Reduction Strategy (EGPRS) is implemented. Vasile Tarlev welcomed the organization of a broad participative process at the drafting stage, stressing the necessity of maintaining an intense dialogue with the civil society. The draft National Development Plan will be submitted to the Government for examination by October 15, 2007. The plan of action for implementing the NDP will be finalized and presented for approval concomitantly. On the other hand, representatives of the civil society do not share the optimistic mood of the officials, warning about the danger of formalization and superficialization of the process of formulating and implementing the NDP. According to Veaceslav Gututui, executive director of the Public Association “Institute for Solving INRECO Conflicts”, the NDP is only a probable illusion for the Moldovan society. The expert thinks that the accomplishment of the NDP is in danger due to the defective way in which such documents are implemented in Moldova. [Alternative viewpoints] Gututui brings as example the experience related to the implementation of the priority No.5 “Regional Development” of the NDP. On December 28, 2006, the Parliament adopted the law on regional development, which, according to the preamble, “defines the functional development regions existing on the territory of Moldova, the way of interregional cooperation, the institutional framework, the instruments typical of the regional development policy, the necessary means for creating and insuring the functioning of the development regions.” The expert says that the process of implementing this law is doomed to failure as the Government did nothing to stimulate it. For instance, article 13 of the law says that “within two months of the date when the law take effect, the Government should approve: a) the structure, nominal composition and the regulations of the National Council for Regional Development Coordination; b) the framework-regulations of the regional development councils; c) the regulations concerning the formation and utilization of the resources of the National Regional Development Fund; d) the structure of the Regional Development Agency and its framework-regulations”. The law took effect after published in the Official Gazette on February 16, 2007. The regulations on the creation of the institutional framework had been drafted for several months. The National Regional Development Strategy has been drafted since March, in compliance with article 9 of the law. But the central public administration is unfoundedly postponing the approval of these documents for creating the institutional framework and as a result delays the creation of the financial framework (article 6 of the law envisages the establishment of the National Regional Development Fund worth at least 1% of the state budget incomes, approved in the state budget law for the respective year). Veceaslav Gututui reminds that the key aim of the regional development is to obtain an equilibrated and sustainable social-economic development on the whole territory of Moldova (article 2). The National Regional Development Fund will be set up for this purpose. According to experts, ten-twelve districts in the Republic of Moldova can be declared as disfavoured zones that must benefit from support from the state, from that fund. The absence of concrete steps from the Government gives the impression that the central public authorities do not want to solve the problems of these districts and to liquidate the unbalances in the regional development. [Political subtexts] Under the given conditions, the law is not functional and it is rather improbable that the Parliament during the next session will allocate 1% of the state budget for the activity of the National Regional Development Fund in 2008, year that precedes the parliamentary elections. The expert thinks that it is not convenient for the governing party to support the regional development and the activity of the local public authorities that, after the elections of June 3, 2007, are not so obedient to the power. Respectively, during the years 2008 - 2009, when all the efforts of the public administration will be directed towards the electorate and elections, the implementation of the fifth priority of the NDP - Regional Development - can fail. There is a danger that certain projects of regional importance will be also stopped. The Republic of Moldova benefits from the most qualitative technical assistance ever provided to the country (from the European Union). Owing to this support, three Regional Development Strategies (North, Centre and South), the portfolio of prior regional projects for 2008-2010 (over 100 projects worth over 50 mln euros) and the documents for the given projects are now being drafted. But all these efforts do not have results because the central public authorities did not set up the institutions and mechanism for implementing the regional development. The effect is in fact the opposite: there is a risk that the social-economic development unbalances between the capital city and the rest of the country’s territory will deepen. Taking into account the above mentioned, Veaceslav Gututui says that by all the appearances, the NDP will have the same fate as the EGPRS: reports on the notable progress made in implementing the planned objectives at a time when the problems are not being solved. Discussions and meetings on the content of the draft NDP are being held in some settlements of the country in order to imitate consultations with the public and to present information about foreign donors. But the society is already tired of so many strategies, plans, programmes and working groups. Moldova probably takes the first position among the European states by the number of strategic documents (per capita), but continues to face the biggest sustainable development problems.