There are 48,500 persons registered officially as unemployed in Moldova. IPN Agency asked the election runners how the jobless rate can be reduced, what economic empowerment programs for youth they propose and how the young people can be provided with workplaces after graduating from a higher education institution.
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Benefits for firms that employ young people
The Democratic Party of Moldova aims to create well-paid jobs by measures aimed at growing the economy. One of the major goals in economy is to attract €1 billion a year as foreign investments. Increased financing is needed for re-qualification and for training young people who want to start a business. In this respect, it is important to use European money that Moldova can get. The Democrats will also promote the idea of private study scholarships in areas that are most popular on the labor market. But the legislation must be amended for the purpose.
In order to encourage the business community to create well-paid jobs, the party will suggest providing concessions to companies employing young people, especially graduates of universities and vocational schools, during the first three years of the employment of young specialists, including paying the social insurance contributions for them and exempting the companies that invest in research and development from paying tax on up to 12% of their incomes. The party will thus stimulate the extension of the activities of companies and, therefore, the creation of new workplaces.
The family businesses and small businesses must become a real opportunity for everyone. In order to stimulate the starting of small businesses and the creation of jobs, the newly set up SMEs will be fully exempted from paying tax on profit during the first three years of work. Grants of up to €10,000 will be provided for the young people who want to invest in agriculture.
Lower taxes and accessible loans
The Christian Democratic People’s Party said the swift industrialization of the national economy envisions the cardinal reorganization of the education system, from the model when all the young people tend to graduate the high school and obtain higher education to the creation of a wide network of vocational schools and colleges that will prepare skilled workers. Otherwise, with tens of thousands of jurists, economists, politologists and international law specialists, the rate of university graduates without a job will increase.
The spirit of entrepreneurship should be developed by providing preferential loans, creating optimal fiscal conditions and niches for selling products on the domestic market and the foreign markets, and providing non-reimbursable grants. For the population to be able to start and develop a business, the number of inspection bodies must be substantially reduced and the practice of representatives of inspection bodies asking for bribery from businessmen will be combated.
The party also aims to restore the independence of the judiciary, including by massively replacing the corrupt judges with young professionals. Corruption at mayor’s offices and the customs system must be rooted out as it discourages the business community. The party will plead for lower taxes, accessible loans and a protectionist customs policy. The monopoles and cartel agreements that make competition on the market impossible will be eliminated.
Financial-fiscal predictability
The Liberal Reformist Party makes reference to the National Employment Agency, which said that there are 9,000 vacancies now. This means that the figure of 48,500 people out of work can be reduced. Investors started to come to Moldova and this thing will continue until there is political stability and Moldova will continue its European course. The European integration implies the allocation of a series of funds that will allow developing particular sectors, such as agriculture. These funds will help Moldova improve the production process and become competitive on the EU market.
According to the party, the local investors must be supported by programs that would exempt them from paying interest rate on loans during the first five years of the starting of the business if they employ at least five persons at the company. Furthermore, the party aims to develop internship programs to allow the university graduates to work at state institutions immediately after graduation so as to stimulate the connection of education to workplaces. The university program should be reviewed and adjusted to the current market needs. A particular number of best students would be allocated internship places at companies that benefit from preferential loans or other kinds of concessions.
For the people to be able to start and develop a business, the party will make effort to reduce bureaucracy by adopting an appropriate information system between institutions, by establishing an online institution-people system of payments and communication and by reducing the excessive inspections at SMEs. The role of the state in the private sector must be diminished. Economic freedom and friendly, but efficient taxes for entrepreneurs and employees must be ensured. Financial-fiscal predictability is needed so that the people can draw up a plan, while the tax on reinvested profit must be removed.
National employment plan
The National Liberal Party said poverty, misery and unemployment are the main causes why Moldova is the poorest states in Europe. The socioeconomic development paradigm must be thus changed, especially in education, agriculture, the environment , the energy and IT sectors. The main inexhaustible resources in Moldova are: the unique soil, the large quantity of biomass, the high potential of unconventional sources of energy and human resources. The development strategies and views must be based on these resources, combined with their intelligent use.
The Union Council, of which the party forms part, worked out a broad economic manifesto called the “Marshall Plan: Romania – Moldova *2018”, whose implementation will lead to the creation of new workplaces by launching a wide investment process. By this program, the migrants will be brought home by ensuring the conversion of remittances. A national employment plan should be worked out and implemented. The party will suggest creating a foundation for building cheap homes for social deprived groups of people with interest-free home loans.
By entering the EU through the Union with Romania, Moldova will benefit from the measures taken by the European Commission and the Council of Europe for solving the problem of youth unemployment. Over 5 million young Europeans are unemployed. To remedy the situation, the EU has launched a European platform whose goal is to engage all the people younger than 25 de in the extended education or professional formation system four months after graduation. The EU will cover the additional costs with money from the European Social Fund and the Youth Employment Initiative. Center should be set up to think up the projects envisioned by the Marshall Plan, according to the professional-technical vocation, and to develop entrepreneurship among studying young people.
Creation of at least 500 business projects annually
The Party of Socialists of the Republic of Moldova said the jobless rate can be reduced as a result of economic growth and by pursuing appropriate state policies, especially in the fiscal area. The party pledges to ensure the real growth of the economy by 46%. This way, the number of those who will work will grow by 200,000 until 2018.
The party considers that a state order should be placed for the higher education institutions so as to help solve the problem of youth unemployment. The state could support the young entrepreneurs by creating and developing at least 500 business projects annually.
For the population to be able to start and develop businesses, the exaggerated control and blackmailing must be reduced. The frequency of tax inspections will be set by law – at least once in three years. The principle of ‘resumption of guiltiness’ of economic entries will be eliminated. A system will be created to make sure that the fiscal authorities answer for the action that led or can lead to the loss of economic benefits, incomes and property. Furthermore, at legislative level, the projects and norms will be coordinated with business associations. The number of taxes will be reduced two times. Other measures will be also taken to simplify business management.
Support to rural businesses
The People’s Party of the Republic of Moldova considers the unemployment rate can be reduced by creating employment opportunities. For this to be possible, the economy must be functional. The enterprises must be functional, while the businesses profitable. The economic entities should be obliged to ensure internship places for graduates, but this aspect must be discussed at a roundtable meeting with economic entities.
The students who received a state scholarship to study must be also provided with a job by the state. The education institutions must work in close cooperation with the economic entities so as to determine the needs on the labor market. The state must exempt the companies that provide workplaces and internship places for students from paying taxes.
The young farmers must enjoy special support when the start businesses in villages – grants of up to €20,000. An Agricultural Loan Guarantee Fund must be created for stimulating businesses in rural areas.
Switchover to a new economic model
The Liberal Party considers the unemployment rate can be reduced by switching over from the simple selection of the labor force to the extensive utilization of methods to motivate and put to good use the labor force in economy. This will ensure the replacement of the economic model based on consumption and remittances by a model based on the attraction of strategic investments and the development of the sectors that export goods and services. As a result of such a change, the unemployment rate will decrease continuously, while the people who went abroad will return home.
Volunteering should be promoted as an instrument for gaining work experience. Concessions should be instituted for working young specialists, especially in rural areas. The filling of vacancies in disadvantaged economic and social areas by young specialists must be facilitated. The remuneration system must be reviewed and the salary package must be diversified by introducing additional benefits provided by employers to young specialists.
The party has constantly pleaded for individual initiative, competition and limitation of the role of the state in economy and considers that the private sector is the basis that can ensure the functioning of the economy. It is the main source of investments, economic growth and workplaces. To strengthen this sector, the foundation of SMEs should be encouraged by local development policies and engaging the local authorities in this process so as to create business centers and industrial and technological parks. It is as important to ensure free competition and to promote policies aimed at reducing the underground economy by providing tax concessions to employers.
Green economy
The Green Ecologist Party proposes launching a green economy strategy that envisions the production of everything that does not affect the environment, as for instance renewable energy. As a result, there will be created new jobs. Energy will be saved and the price of the finished products will decrease.
The party also promotes ecological agriculture, manufacturing of products of a high quality without preservatives, of natural products. The products must be manufactured in the country and the raw material should not be exported.
There must be developed the tourism sector, including the rural one, and the sanatorium system. There are many springs in Moldova, but they are not put to good use. Such projects can bring new workplaces.
Favorable legal framework for SMEs
According to independent candidate Oleg Brega, besides the negative aspect of the absence of jobs, this social category, the unemployed people, also represents people free from commitments who are flexible and mobile, who are usually young people ready to experiment and to do business. The problem of unemployment can be solved by ensuring a legal framework favorable to the SMEs. The current unemployed people can become entrepreneurs and employers or employees in the private sector.
The current law on volunteering already envisions the possibility of gaining work experience in nonprofit organizations while studying or while doing a nonqualified job. Professional development models must be stimulated. Otherwise, it’s impossible to oblige an employer to give work to somebody about whom they know only that they hold a deserved or a bought diploma.
If corruption is diminished and official payments to the state are encouraged, the business environment will stabilize and the small business will develop. In certain areas of social interest, such as agriculture and services in rural areas, the state can subsidize businesses transparently and correctly so that they are profitable for those running them.
Zero tax on incomes declared by migrants
The Centrist Union of Moldova suggests adopting laws on family businesses and exempting them from paying income tax for a period of two years so as to stimulate the contribution of families to the development of business, protect the interests of families, create new workplaces and stop the exodus of people abroad. The parents and their children must know how to choose the future profession so as to be able to find a job then.
The economic entities must be encouraged to contribute to the formation of young specialists by partially and proportionally exempting them from the mandatory social and health insurance contributions, depending on the number of young employees. The employers should be banned from dismissing the young specialists during first 2-3 years without acceptable reasons and without the preliminary consent of a public authority. The activities related to the import and sale of oil products and drugs and the collection and export of scarp and different agricultural products should be liberalized so as to create new jobs and to foster the development of these sectors.
The introduction of a zero tax on the incomes declared by migrants, within €10,000 per person a year, will stimulate the legalization and investment of this money in entrepreneurial projects or their depositing in national banks. This norm will stimulate and encourage the migrants and members of their families to more actively become involved in business projects in the SME sector. This will allow the young specialists to assert themselves in different areas of social activity.
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Note: IPN News Agency asked all the election runners to state their views on the given issue. The article contains the answers provided by the agreed date. The IPN series of materials produced before the November 30 parliamentary elections will continue with other important issues identified by the public. So far there were addressed such issues as the undeclared economy, the mandatory health insurance funds and social assistance, and road infrastructure and transport.
Irina Ţurcanu, IPN
