However, joy and inspiration were still stirring in the minds and hearts of the victors when a loud shout came from the most rigorous examiner of all democratic and free forces of the world – the U.S. State Department. Like a ladle of cold water, it is intended to cool down the hotheads of the ruling party, so that they do not think of resting on their laurels. If, of course, they hear this shout and listen to the arguments of the “chief curator”.
And his arguments are shocking. The annual report of the US Department of State on investment climate, devoted to Moldova, gives an unpleasant picture of the state of affairs in the Moldovan economy and society as a whole, especially concerning the construction of a state based on the rule of law.
The general conclusions of the Report are as follows: corruption in the country is still flourishing, there are no real reforms, the economy is on the verge of stagnation, the judicial system continues to be under political influence and has a low level of trust on the part of the population, justice in society is not felt at all levels. Naturally, all this scares away investors and hinders the country’s development.
Of course, the introductory part of the document notes the efforts of the current Moldovan authorities to get closer to the EU, mentions the problems the country is facing due to the war in Ukraine, the energy crisis and other external factors.
However, it is emphasized that the measures taken by the authorities do not bring the desired result and do not lead to an increase in the living standards of citizens. Moldova remains one of the poorest countries in Europe, which affects the solution of social issues and stimulates the migration of citizens to other countries.
The U.S. State Department states that Moldova’s economy will grow by only 0.1% of GDP in 2024, while corruption and bureaucracy continue to undermine the country’s economic prospects. The document relies on data from Transparency International, which ranked Moldova 76th out of 180 countries on the Corruption Perceptions Index.
“The main problems of the business climate are the lack of effective and fair application of laws and regulations, as well as arbitrary, non-transparent decisions of state officials aimed at giving domestic producers an advantage over foreign competitors in certain areas,” the Report emphasizes. Examples of “advantages” for local companies include the application of an environmental levy for packaging and bottles until 2023 and the overestimation of the customs value of imported goods.
The U.S. State Department report is voluminous, containing 43 pages. It has appeared at the right time. The new parliament has an opportunity to scrutinize it, appoint an effective government, and over the next 4 years correct all those shocking shortcomings in the investment climate that were seen in Washington.
