Poverty is not a characteristic of the Moldovan people – Info-Prim Neo interview with the Prime Minister of Moldova Vasile Tarlev

[- Is the 16th anniversary of independence somehow different from other anniversaries?] New events take place each year and they make this period different from others. At the same time, when approaching an anniversary, we traditionally sum up the results. Moldova asserted its independence and sovereignty in 2007 as well, as it overcame the external shocks to which it was subjected in 2006. This year Moldova has to deal with a new challenge – the drought that is more severe than in 1946-1947, as specialists say. In such a situation, the Government has mobilized all its efforts to support the agricultural producers. About 900 mln lei in subsidies was allotted to the agricultural sector this year. This is an unprecedented sum for the whole period of independence. At the same time, the year 2007 is marked by the promotion of revolutionary reforms designed to liberalize the economic activity in Moldova. I am sure that these reforms will essentially stimulate the development of the country’s economy and business environment. A special and very important event this year is the fact that Moldova became a neighbour of the European Union. The Government promotes a consistent policy in this area so that Moldova ultimately joined the European community. All the activities in this direction are centred on the implementation of European norms and standards on a national scale. [ - What successes and failures has Moldova witnessed during the 16 years of independence?] I want to mention only some of the achievements. We formulated the Supreme Law of the Republic of Moldova, the Constitution, as well as the national legislation. We set out the priority directions in the social-economic development of the country. We created the banking system of the country. There are also other successes that contributed to the development of Moldova as a democratic state of law. The Government approved such wide-ranging and strategic documents as: a) The Millennium Development Objectives in the Republic of Moldova by 2015. b) The Economic Growth and Poverty Reduction Strategy Paper c) The European Union-Moldova Action Plan d) The National Programme “Moldovan Village” etc. Here can be also mentioned the national programs on the renovation and decentralization of the heating systems, of the water supply and sewerage systems in the settlements of the country. The national gasification program is under implementation. As regards the foreign activity, Moldova became an equal, credible and well-known member of the international community. We joined the United Nations among the first post-soviet states. Moldova is the first country in the Commonwealth of Independent States to become member of the Council of Europe. Its tendency to democratization and modernization was highly appreciated. The Republic of Moldova is an active member of the regional and international organizations and is highly respected for its principled stand on issues of major importance. We managed to prove that we are a reliable partner in the bilateral cooperation relations. As to failures, I think that the biggest failure, if we can name it so, is the bloodshed of 1992. I consider it a tragedy that left a lasting imprint on the people’s life. Among other failures is the unsuccessful privatization of the patrimonial securities, the ineffective reform in agriculture etc. [ - Why do you think that Moldova is classed as the poorest state in Europe, with a recent study by the US magazine “Foreign Policy” ranking Moldova as the least stable country in Europe on the eve of Independence? When and how will it get rid of these tags?] I do not agree with these assessments. Poverty is not a characteristic of the Moldovan people. We want to develop, but we will do it step by step. The countries in transition face complex problems caused by factors inherited from the previous social-economic systems as well as the institutional instabilities and incertitude of the period of transition. The events through which Moldova went during its recent history are not an exception as they are also complicated and profound. After gaining independence, Moldova had to solve a wide range of serious political, economic and social problems, basing on its own resources and potential. Moldova asserted itself as a state during an acute social-economic crisis and during the radical transformation of the economic system. The lack of experience in dealing with the foreign shocks, the crises in economy and in the social sphere and in carrying out systematic reforms; the internal political instability; the territorial dismemberment of the country – all predetermined the mistakes and costs experienced in the period of transition. The economic and territorial disintegration and the errors committed when implementing reforms determined the long-lastingness and deepness of the crisis of the 90s. The economic crisis in Moldova had lasted for 10 years, from 1990 to 1999 inclusively, period during which the Gross Domestic Product fell almost threefold. During the crisis of the 90s, the Moldovan economy sustained considerable losses. In 1999, year when the crisis reached its height, the Gross Domestic Product in real terms made up only 34% of the 1990 level, the industrial production – 32%, the agricultural production – 50%. The fund restoration process degraded substantially as a result of the about tenfold reduction in the investment in fixed capital, which in 1999 made up only 11% of the 1990 level. In general, the initial positions of the Moldovan economy before revival were extremely unfavourable. The social crisis of the 90s was much deeper and dramatic than the economic one. As a result of the en mass dismissal of the labour force in economy, of the high inflation and reduction, in real terms, in the state spending on social needs, the sources of income of the people, their purchase capacity and the possibilities of obtaining social assistance from the state in the form of social services without payment have considerably decreased. At the peak of the crisis, in 1999, the average monthly salary in real terms constituted only about 25% of the 1990 level, while the average pension about 17%. The unemployment rate reached 11.1% according to the calculation methodology of the International Labour Organization (ILO). To solve the mentioned problems and stabilize the social-economic situation, in 2001 the Government started to institute a number of national programs, ensuring the consistent and widespread implementation of the state policy. The economic recovery and the real growth in people’s incomes had a considerable positive impact. The growth rates that ensure the macroeconomic stability are now maintained. The nominal Gross Domestic Product in 2006 totalled 44.69 bln lei, as against 16.20 bln lei in 2000. The national public budget for 2007 includes over 20 bln lei incomes, as against 5.4 bln lei in 2000. According to official statistics, the average monthly salary in the national economy in June 2007 was 2,221 lei, as opposed to 408 lei in 2000. Certain internal and external circles are interested in promoting an image of a poor state. How can we get rid of such unfounded assertions? Only by mobilizing the entire society to work honestly, to be tolerant, disciplined and patriotic, and by loving the country and the people. [ - Do you think that independent Moldova’s strategic objective of European integration is irreversible?] As you know, Moldova’s strategic priority from 2002 has been the European integration. It was a very responsible and natural decision. The geographic position of our country presupposes that it should belong to the family of European states. At the same time, the membership to the European family requires a complex political decision that would determine the foreign course as well as a conception of the state’s internal development. The fact that the objective of European integration consolidates the efforts made by a government channelling them into a safe course of progress became axiomatic. The implementation of European standards in the areas of democracy, social insurance, functioning of the economic system became an additional stimulus in the development of the country on the whole. The European integration is an incontestable objective that mobilizes the whole society to achieving it in a concerted effort that is worth making. Of course, the complex process of reforms and the new conceptualization of the foreign policy cannot be simple objectives. All these cannot challenge the irreversible character of the process of European integration of Moldova. The European Union is an area of democratic vales, of states of law, of security and welfare. Even the accession process to this area is beneficial for the progress of every state. The certitude with which Moldova committed itself to follow the European integration path derives from here. This way is irreversible because it comes from Moldova’ enduring connection with the European cultural area. [-A year after changing the name of the national holiday from Independence Day into Republic’s Day, do you think that the change was reasonable?] Our country is a republic by the form of government. The supreme authorities are elected by the people who express their free and independent will. Therefore, I consider that Moldova, as an independent and sovereign state, should have and observe the Republic’s Day. [- Did the Moldovan people deserve the administrations that ruled during the independence period? Being earlier or now in power or aspiring for power, would you like such a people?] The people should give the answer to this question. As regards the second part of the question, I was born here. Together with the relatives and friends, I overcame the difficulties through which our society went. I am part of this people and it would be a betrayal to reject it.