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1. Establishing a favorable business environment
Sustainable development strategy for the Republic of Moldova relies on improved economy, which in its turn envisages:
- observing rights on property and perfecting corporate administration;
- equal opportunities to competitors;
- regulating the economy.
The key elements in establishing a financial system adequate to the market needs are:
- reforming banking system;
- developing securities market and investment structures.
1.1 Observing rights on property
To ensure an equitable legal framework for all the forms of property, Democratic Party will:
- Promote legal protection of the domestic and foreign proprietors, inviolability of their rights to property;
- Promote equal business opportunities to private or natural entities and state legal entities;
- Inform and consult the above mentioned on intended amendments to the legal framework;
- Stipulate in legislation administrative and penal liability for violating rights on property;
- Draft and adopt normative acts aimed to protect shareholders rights on patrimony;
- Establish favorable environment for creditors’ rights observance;
- Stipulate administrative and penal liability for the conflict of interests leading to bankruptcy.
1.2 Equal opportunities to competitors
The objective of the Democratic Party policy is to establish a favorable environment for free and fair competition which would facilitate economic growth and would facilitate efficient distribution of resources. These shall be achieved by:
- ensuring transparency in founding commercial units and their merger, in buying shares and productive assets;
- control over antimonopoly legislation observance;
- establishing a network of wholesale markets so as to ensure fair prices;
- establishing control procedures over public officers involvement in entrepreneurial activities;
- supporting the development of small and medium businesses by simplifying registration, taxation, book keeping and reporting procedures.
1.3 Non-regulation of the economy
To establish a favorable business environment in Moldova, to protect businessmen legal rights and interests, as well as those of the consumers it is necessary to:
- simplify registration procedure for entrepreneurial activity by replacing it with registration upon notification, and for small and medium business by mail registration;
- replace licensees with standardization, accreditation and testing;
- foster non-governmental organizations protecting consumers’ rights (watchdog organizations);
- reduce number of bodies entitled to control commercial entities and to impose administrative sanctions;
- introduce the practice of adopting laws which would not further require additional instructions.
1.4 Modernizing banking system
To increase the banking system efficiency the following problems should be solved:
- increasing clients interests in traditional banking services and credits;
- establishing deposits insurance funds which would eventual increase banks’ reliability;
- monitoring banks financial situation so as to anticipate bankruptcy;
- obliging shareholders to provide support to their banks upon crisis;
- ensuring maximum transparency in the banks activity;
- developing a system of alternative financial institutions (such as associations of credit and loan) aimed to increase competition and thus financial market efficiency.
1.5 Developing securities market and investment institutions
The policy is aimed to establish a security market capable of stimulating investments and stop cash flow out of the country. To achieve this it is necessary to:
- ensure the existence of a series of mediators on the securities market for legal and natural entities investors. In this respect it is necessary to develop a system of institutional investors, such as private pension funds, health insurance funds, shareholders funds, etc;
- eliminate fiscal and administrative obstacles so as to stimulate corporate offer of securities;
- develop securities market infrastructure;
- consolidate national insurance system in view of long term investments for strengthening the economy.
2. Macroeconomic policy
State efforts to establish a favorable environment for business will be successful only upon promoting an adequate macroeconomic policy, namely budgetary, fiscal and customs ones.
2.1 Main priorities of the budgetary policy
Establishing an efficient budgetary system is part of the process of edifying a viable state, a market economy and an open society. Budgetary policy will have a key role in the state policy and will have the following functions:
- to preserve financial stability in the country;
- to ensure financial security in the state;
- to create financial incentives for a sustainable development.
To achieve the above said it is necessary to:
- promote a budgetary policy orientated towards permanent reduction and eventual annulment of the budget deficit;
- concentrate budgetary resources in priority areas: education, health care, social security, culture, judicial system, etc;
- create a single system of administering state arrears;
- ensure maximum transparency in budgetary spending;
- reduce extra-budgetary resources and concentrate all the resources levied by the state bodies in one single state budget;
- decentralizing budget by establishing local public administration autonomous budgets.
2.1 Fiscal and customs policy
Fiscal and customs policy should not be an obstacle in developing free initiatives of the market players, which is to be achieved via:
- ensuring legal framework constancy, amendments in the fiscal or customs legislation are to be enforced within 5 months of their publishing;
- revising preferential treatment of enterprises which should be granted based on the state interests and not personal or political ones;
- strict control over fiscal and customs legislation observance;
- tax exemption of all entrepreneurial activities;
- simplifying the procedure of appealing fiscal bodies decisions;
- reducing the number of taxes and fees;
- establishing a single informational customs system;
- bringing customs legislation in accordance with the World Trade Organization and European Union standards.
3. Structural policy
The priority of the Democratic Party structural policy is to increase Moldovan economic competitiveness via achieving the following goals:
- increasing competitive power of the Moldovan producers and service providers on the domestic and foreign market;
- restructuring enterprises having the biggest arrears;
- transforming inefficient institutions so as to correspond to modern market economy standards.
Democratic Party structural policy will be promoted by applying the following basic principles:
- competitive market as the main regulator of the economic development;
- maximizing state interference in economy;
- openness of the economy;
- liberalizing economic activities at the micro-level.
As a result of implementing Democratic Party’s structural policy Moldovan economy should have similar structure to developed countries’ one: increasing industry and service provision share in the economy by reducing the agriculture share.
4. Social policy
DPM shall fulfill the following series of objectives in order to improve the living standard, alleviate poverty and ensure citizen social protection:
- final resolution of the issue of back pensions and raising pensions;
- maximum insurance of an efficient protection of the socially vulnerable categories of population who do not have the opportunity to solve their social problems on their own;
- ensuring universal access to and satisfactory quality of social services, particularly medical assistance and education;
- creating employment opportunities for the population with working ability to allow citizens secure a consumption level out of their own incomes;
- establishment in the social-cultural sphere of some institutions to provide for a maximum mobilization of citizen resources for social problem resolution.
4.1 Development of the System of Education
To develop a system of education adequately responding to the actual need of the society, the DPM shall ensure:
- Constitutional principle of free secondary education will be translated into practice. To achieve this, teacher salaries shall be paid directly from the state budget. A special system of social aid shall be implemented in order to help disadvantaged school children;
- Nominal scholarships shall be provided to cover academic and lodging costs in secondary professional schools for disadvantaged students;
- A system of state guaranteed loans to allow students pursue their education shall be developed;
- Local government bodies and education institutions shall establish part-time labor funds for students;
- State control over the quality of study in private education institutions shall be enhanced.
- Public education funds shall be encouraged to extend and be supported and a system of tutor councils in education institutions of all levels shall be created.
4.2 Development of the health insurance system
The strategic goal of improving people’s health shall be reached by:
- Increasing budget expenditure quotas intended for primary medicine and preventive measures;
- Finalizing the transition to an insurance based medical assistance and insurance based funding of medical facilities;
- Enhanced state regulation of paid medical assistance granted in state and municipal medical institutions;
- Introduction of a system of fiscal facilities for funds allotted by employers to medical insurance funds;
- Supporting development of social funds promoting sports as an essential means to improve the health of youth.
4.3 Politics in the field of culture
DPM will promote the following strategic objectives in the field of culture:
- preservation and development of the cultural potential and inheritance of the country, of the system of art education;
- ensuring unity of the cultural area and equal cultural opportunities for all citizens; creating conditions for a dialogue between cultures of cohabiting national minorities in Moldova;
- direct individuals and social groups towards general human values to ensure the modernization of the society;
To achieve these goals, the DPM shall:
- increase budgetary allocations for the development of cultural institutions, primarily museums, libraries and theaters;
- supporting social funds of support for popular art and amateur artistic activity;
- implement on a large scale the system of contract based employment of cultural and art workers, enhance independence of cultural institutions and in establishing salaries and compensation mechanisms;
- create legal conditions for the transformation of cultural institutions into non-commercial social organizations, and ease their fiscal treatment.
4.4 Labor relations and population employment level
To create a civilized labor market, the DPM shall work towards:
- reforming the labor legislation to efficiently use the labor resources and observe basic employee rights;
- improving and raising efficiency of the social protection and labor security schemes with the help of lawyers; securing state support for the system of non-governmental protection of the right to work and self-defense;
- joining efforts of the labor firms to facilitate job seeking, developing the system of state institutions providing professional training according to market demands;
- supporting financially and organizationally the employers who create new jobs, particularly other than of agricultural nature in rural areas;
- concluding with foreign countries agreements on legal guarantees and the development of the system of engagement of the unemployed in the community driven activities — road repairs and building, territory decoration, social facility building, based on state and local budget funds.
4.6 Social assistance for the population
The DPM shall further promote the system of nominal assistance for disadvantaged categories of population and shall ensure:
- an efficient system of identification of individuals in need of social aid;
- extension of the freedom of choice of citizens enjoying free or subsidized social services, including by opening special social accounts whose holders will be entitled to free and subsidized services within established limits;
- association of state funding with private charities, local and foreign, including by developing the volunteer movement and cooperation with religious and philanthropy organizations;
- attraction of relevant non-profit organizations in developing and assessing state social programs and the corresponding budget components;
- raising average pensions at least up to the level of 75% of the average wage;
- creating a system of accounts for pension accumulation to provide for the right of pensioner heirs to inherit the unused funds.
This program is founded on actual opportunities and Moldova’s actual economic potential. Its implementation shall ensure sustainable economic growth, sustained improvement of the living standard and the level of citizens’ social protection and bring Moldova closer to its accession to the European Union. The DPM shall rely on the support of all citizens of Moldova and hereby assumes the obligation to make all possible effort to fulfil the proposed objectives.
/“Dialog”, No 3(217), January 19, 2001/