Mircea Baciu
The first model is the European model, based on economic growth, political freedom and social cohesion. The second is the American model, based on economic growth and political freedom, with social cohesion playing a minor role. The third model is the Chinese model, based on economic growth and social cohesion, but lacking political freedom. Asian models worthy of study include Japan, South Korea and Singapore – these models emphasize technology and innovation as the basis for economic growth, and social cohesion is less pronounced.
Following the course of European integration, Moldova should be oriented towards the European model, but some details should be taken into account. The European model is not unique for the whole EU. Rather, the general characteristics are common, but there are also specific approaches depending on geographical regions. These specific approaches are also called submodels. The most effective sub-model within the European model is considered to be the Nordic model, which is applied in states such as Sweden, Denmark, the Netherlands and Finland. This sub-model is characterized by high macroeconomic efficiency as well as a high degree of social equity.
Another submodel that deserves close attention is the Anglo-Saxon model, applied in Great Britain and Ireland. This model is relevant for the Republic of Moldova, despite the fact that the UK is no longer a member of the European Union. At the same time, it should be noted at once that such a submodel will be perceived by Moldovan citizens with caution and suspicion, as it implies a rather limited social assistance system.
Even if it is worth exploring, the southern sub-model (Italy, Greece, Cyprus, Spain, Portugal and Malta) will still not be very popular with Moldovan citizens, as it implies strict control over the labor market, but at the same time – minimal participation in the social protection of the population.
The continental submodel (France, Germany, Austria, Luxembourg and Belgium) would be appreciated by Moldovan citizens, given the fact that it implies rather high unemployment benefits. At the same time, this submodel is characterized by rather strict fiscal rules and high taxes. It is these rules and taxes that allow the unemployment support system to be so generous.
A submodel close to the Republic of Moldova could be the one applied in the former Soviet member states of the European Union (Baltic States), as well as in some states of the former socialist camp (Romania, Poland, Czech Republic, Bulgaria, Slovakia). If only for the simple reason that these countries have gone through periods comparable to what Moldova is going through now and faced some problems similar to those faced by our country.
Why did I decide to touch upon this topic? Because I am convinced that the Republic of Moldova can no longer define economic development as the main goal without choosing one of the known models that it can study and implement. Of course, this does not mean a full acceptance of this or that model, because each country has its own specifics. But, in any case, a much more mature approach to the concept of economic development is needed than before. We need a classical approach, a predictable approach, a responsible approach. Otherwise, we will not be able to talk about real economic development.
Mircea Baciu,
Moldovan entrepreneur
