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The Republic of Moldova's interim democracy: one year

The Republic of Moldova still seems to be plagued by the incompetence of the former Pro-Russian communist regime, in power between 2001 and 2003.

The Republic of Moldova's interim democracy: one year
Interim president, Liberal Mihai Ghimpu.

10 Octombrie 2010, 17:01

The Republic of Moldova still seems to be plagued by the incompetence of the former Pro-Russian communist regime, in power between 2001 and 2003.

The former Soviet Republic, with a predominantly Romanian-speaking population, is Europe’s poorest state; however, the Republic of Moldova seems to have overcome the peak of the ongoing crisis.

The reforms promoted by the new pro-western four-party administration have already borne fruit, with foreign partners as well as analysts in Kishinew acknowledging their success.

Experts with the “Viitorul” Social Initiatives and Development Institute estimated that in 2010, the budget deficit has gone down from 7 to 5%, no salary cuts have been operated, pensions have been indexed and extra social payments allocated. Analyst Viorel Chivriga emphasized that all that took place after:

"We practically found ourselves in a bottomless pit. Concealing the economic crisis was a huge mistake, as signs had already been evident in late 2008. Now it’s the positive results that have become visible in almost all sectors of the national economy. We might even speak about a re launch of the economy. The road we need to take will be a little longer".

Interim president, Liberal Mihai Ghimpu, and Liberal Democrat Prime Minister Vlad Filat managed to obtain loans for the Republic of Moldova, from the IMF, the United States, the European Union and neighbouring Romania. Besides, the appropriate distribution of credits has determined a 2.8% growth, after the reported 6.5% drop in 2009.

The present government’s economic policies have removed the effect of the restrictions Russia imposed on the Republic of Moldova this summer, on wine, fruit and vegetable exports, restrictions that have a blatantly weak political motivation.

Moldovan exporters have seen damages that stand at more than 25 million Euros. Here is economic expert Alexandru Fala:

"The industrial production growth should have stood at about 7%, by the end of the year. Yet the blow dealt to the wine sector will slow down the growth rhythms, and we will see a downturn towards the end of the year, but not a significant one. There will be a 6% rise in the industrial sector".

The "Viitorul" IDIS analysts, however, has warned that the early elections due in November are crucial not only politically, but also for the Republic’s economic prospects.

They say that voters must again choose between the return to dire poverty that Communists have sown everywhere, and backing the current pro-European democratic government. The latter is the only one that can guarantee reform continuity and the West’s support of Chisinau.

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