Uncut: Revolution Televised

moldovan surveillance

16 hours of protests captured in 300 clips recorded by 13 different
surveillance cameras, documenting the entire so-called “Twitter
Revolution” in Moldova.

Here are the uncut 16 hours of a revolution. This is the CCTV footage from 7th of April and the night that followed, recorded by government surveillance cameras located on the buildings of the Government, the Parliament and the Presidency in downtown Chisinau. These are the relevant hours captured in 300 clips recorded by 13 surveillance cameras starting on April the 7 at 10 am and ending at 2 am next morning. Moldovan authorities never released these videos. 



Discolored Revolution The next test of the West.

William Schreiber on Moldova's Upcoming Election - Newsweek

Next Sunday, Europe’s poorest country will head to the polls for its third election in two years. If the West has learned from its mistakes promoting democracy in formerly Soviet countries like Georgia and Ukraine, the parliamentary elections in Moldova could be Europe’s biggest chance to expand its values eastward. If not, the elections could trigger an ersatz popular revolution, thanks to an impatient young generation, eager for the economic benefits of EU membership.

This is a country where the Communist Party could prove democracy’s greatest hope—and pro-Western youth its greatest threat. In April 2009, mobs of young protesters stormed the Parliament building, chanting anticommunist slogans and waving EU flags. They could do it again this Sunday if things don’t go their way.

These protesters may be looking to Europe, but don’t call them democrats. The elections they rioted against were declared free and fair by international observers. Unlike the color revolutions, which swept the former Soviet Union in response to blatant fraud, there is no evidence of rigged elections to justify revolution in Moldova. Turns out, the Communist Party of Moldova doesn’t need to fix results: communists go to the polls. Years of required participation taught them voter discipline. Turnout in regular elections typically exceeds 60 percent, much to the frustration of some younger voters. Dana Condrea, a recent college grad, says young Moldovans want to see European standards of living. “We’re sick and tired of communism,” she says. “At our university, you can barely find anyone who sympathizes with them.” When the communists won some 50 percent of the April vote, word spread, and students took to the streets.

Moldovan youth apparently don’t remember that the loss of a fair election is not an occasion for revolution. But their basic complaints—about the failure of the regime to bring economic growth—are legitimate. To be sure, countries without democratic values can never be European. But experts say the West should accommodate their thirst for change by pressuring the country’s strongest politicians to become better state builders. “This isn’t 1989 in Moldova,” says Damon Wilson, vice president of the Atlantic Council. “But I would say there is a real opportunity for an increasingly democratic and pluralistic system to take hold.”

The West should offer mentorship in good governance to whoever wins Sunday’s election, Wilson argues. It’s a lesson learned the hard way in Ukraine, where the Orange Revolution’s inability to follow through led to widespread disgust and apathy. “When you have the opportunity to govern in a country like Moldova, you need to deliver,” he says. “You need to demonstrate the benefits of democratic elections. The reality is, the day after elections, whoever is running the show has a very hard slog before them.”

Moldova’s liberal forces, now in power, have perhaps the hardest slog. Supporters are split between two major leaders: Vlad Filat, the prime minister, and Mihai Ghimpu, the country’s acting president. Each has trouble putting rivalry aside. Their feuding has been an asset to the communists in the past. It could become an additional liability for establishing democratic legitimacy through governance.

That leaves an unlikely champion for Western values: Vladimir Voronin, Europe’s first electable communist since the fall of the U.S.S.R. Voronin and his party held the Moldovan presidency for eight years straight until they lost in late 2009. While maintaining the Kremlin’s favor, Voronin proved himself to the West by saying yes to trade and a firm no to Russian-backed separatists. In fact, the blessings of Moscow should be another plus for Europeans. Georgia became unstable thanks to Russia’s perception of Mikheil Saakashvili as a satellite threat. Germans thought twice about supporting Ukrainian independence after Viktor Yushchenko’s friction with Moscow shut off Ukraine’s gas-transit pipelines.

Still, even Wilson admits it may be hard to persuade skeptical U.S. congressmen to go to bat for a party that embraces communism—hammer, sickle, and all. But he remains optimistic about Voronin’s role. Wilson believes that with coaching from center-left European socialists, the Moldovan communists could evolve into garden-type social democrats. No matter who comes to power Sunday, Moldova may not soon resemble a worker’s paradise. But with the right kind of help from its neighbors, it may start looking more European.

Schreiber is a Boren National Security Scholar based in Warsaw.

Special Series: Geopolitical Journey with George Friedman

Special Series: Geopolitical Journey with George Friedman | STRATFOR

Special Series: Geopolitical Journey with George Friedman
Geopolitical Weekly Free
Geopolitical Journey, Part 3: Romania
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Geopolitical Journey, Part 3: Romania
November 16, 2010 0956 GMT
For Romania, national sovereignty has always been experienced as the process of accommodating itself to a more powerful nation or empire. Part three in a series. [more]
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Geopolitical Journey, Part 2: Borderlands
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Geopolitical Journey, Part 1: The Traveler
Geopolitical Journey, Part 1: The Traveler
November 8, 2010 2157 GMT
Of the three things the geopolitical traveler must do, the most important perhaps is walking the streets. Part one

Wireless Moldova

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During recent business trips to Chisinau, Moldova, I have had the pleasure of working in a country with excellent, if not superior, Internet access within hotels, parks, Internet cafes, and really any other location within the capital city you would like to “jack in” to the Internet.

As I watch my Slingbox connecting to Channel 2 Evening News in Los Angeles, I am enjoying anywhere between 500Kbps and 900Kbps throughput, more than adequate to keep homesickness under control and keep up to date on the community.

CH2-cap2 Moldova has several Internet Service Providers available for public access, including StarNet, Orange Moldova, MoldTelecom, and lots of resellers of other company Internet capacity.

The cost of accessing high performance Internet is a fraction of what you would expect to pay in the United States or other “developed” countries, and the performance is among the best I have experiences traveling in at least 15 countries during the past year.

Starnet and Orange take advantage of new terrestrial fiber optic capacity connecting Moldova through Romania, and then directly interconnecting with the global Internet community at Europe’s major Internet Exchange Points, including the Amsterdam Internet Exchange (AMS-IX), the Frankfurt Exchange (DE-CIX), and London’s LINX.

A traceroute (following the path an Internet packet takes from my computer to my webhost in California) shows excellent routing outside of Moldova:

Microsoft Windows [Version 6.1.7600]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.

C:\Users\John R Savageau>tracert www.pacific-tier.com

Tracing route to sbs-p4p.asbs.yahoodns.net [216.39.62.190]
over a maximum of 30 hops:

1 3 ms 10 ms 2 ms itns.md [93.113.118.1]
2 5 ms 3 ms 3 ms 10.11.16.254
3 7 ms 6 ms 14 ms ex-starnet.starnet.md [89.28.1.177]
4 8 ms 5 ms 10 ms 95-65-3-161.starnet.md [95.65.3.161]
5 68 ms 49 ms 49 ms ge-1-3-0.pat2.dee.yahoo.com [80.81.193.115]
6 135 ms 137 ms 136 ms as-1.pat2.dcp.yahoo.com [66.196.65.129]
7 135 ms 134 ms 205 ms ae-1-d171.msr2.re1.yahoo.com [216.115.108.31]
8 137 ms 137 ms 137 ms gi-1-45.bas-b2.re4.yahoo.com [216.39.57.5]
9 136 ms 139 ms 136 ms p4p2.geo.re4.yahoo.com [216.39.62.190]

Trace complete.

Disposable Income Demands Additional Considerations

Market conditions in Moldova are different from the US and other economically developed countries. Those living below the poverty line in Moldova, according to the CIA World Factbook, is around 30% . Disposable income continues to be low, and a small percentage of the population owns or has access to private personal computers.

Thus the cost of Internet access, to develop market, is possibly artificially low. or the US Internet access providers are artificially high…

Cost of accessing prepaid wireless Internet per month through Liberty WiFi, a StarNet reseller:

Capture

NOTE: 1 US$ = ~12 Moldovan Lei

During a recent visit to Moldova I used Orange’s wireless Internet product, which was about 2 times the price of Liberty WiFi, but with equally impressive performance.

Internet Access is Essential for Moldova’s Development

As Moldova continues to struggle through the challenges of building a market economy, dealing with the issues of a newly democratized country, poor rural infrastructure (roads, telecom, power, etc), and socially coming to grips with their place in the European and Eastern communities, Moldova will need to quickly bring their citizens up to speed with technology and wired everything.

chisinau Cloud-based software, such as Microsoft Live Office, Google Docs, Yahoo Mail, and other hosted services will allow Moldovans access to Internet utilities without the high cost of software licensing, further allowing better use of shared resources in Internet cafes, schools, and other public locations. The government is aggressively pursuing modern eGovernment projects to help the citizens reduce the burden of bureaucracy on their lives , and children are exposed to technology throughout the education system.

With Moldova’s Internet Service Providers delivering some of the highest performance network access in the world, Modovans will further be relieved of the burden of constructing large and small data centers, taking advantage of cloud and SaaS service providers located within Europe and North America, returning precious funds to building business – rather than ICT server and services infrastructure.

Moldova Supports Private Enterprise

While there are some items that could use some adjustment, such as high tariffs for importing computer equipment, Moldova has at least supported both domestic and foreign telecom companies in developing both fixed line and wireless infrastructure. Orange (France Telecom), MoldCel Telecom (TeliaSonera), and Starnet continue to build fiber optic and wireless network infrastructure, with nearly 100% 3G coverage throughout the country.

The entire wireless system is 4G-ready, and deployment is planned within the next couple of years.

Impressive. Really.

Moldova: Russia's Next Target? | STRATFOR

Moldova: Russia's Next Target? | STRATFOR

Moldova: Russia's Next Target?
August 9, 2010 | 2151 GMT
Moldova: Russia's Next Target?
VLADIMIR RODIONOV/AFP/Getty Images
Russian President Dmitri Medvedev (L) and acting Moldovan President Mihai Ghimpu in Chisinau on Oct. 9, 2009
Summary

The head of one of the parties in Moldova’s pro-European ruling coalition said Aug. 9 that the coalition “de facto no longer exists.” This is just the latest in a series of events indicating rifts within the ruling Moldovan coalition — rifts that Russia could use as a way to increase its influence in Chisinau.
Analysis

The leader of the Democratic Party — one of four parties in Moldova’s ruling Alliance for European Integration (AEI) — said Aug. 9 that the ruling coalition “de facto no longer exists.” Democratic Party chief Marian Lupu said that although the coalition officially has held together, he was “ashamed” to belong to the same coalition as Moldovan Prime Minister Vlad Filat and acting President Mihai Ghimpu, and that he would stand as a candidate in the country’s upcoming presidential elections.

Lupu’s statements are only the latest sign of rifts within Moldova’s ruling coalition of pro-European parties. Russia sees these rifts as an opportunity to assess just how much effort — as well as risk — it is willing to take in increasing its influence in Chisinau at the pro-European elements’ expense.

According to STRATFOR sources in Moscow, Moldova could be the next former Soviet country where Russia will target pro-European political elements. This follows a key development in May, when Russian President Dmitri Medvedev and his newly elected pro-Russian counterpart in Ukraine, Viktor Yanukovich, issued a joint declaration that their countries would work together to address the ongoing dispute over the breakaway province of Transdniestria. There are two ways that Russia — with Ukraine’s help — could address the Moldovan issue in the short term. One is to attempt to bring Transdniestria under control along with the rest of Moldova, and the other is to maintain hegemony over just Transdniestria and settle for a split country, without controlling Moldova proper.
Moldova: Russia's Next Target?

Circumstances in Moldova could make the country vulnerable to Russia’s designs. The government is weak and split among the AEI member parties and faces constant challenges from the pro-Russian Communists, who are now in the opposition. The pro-European Ghimpu has made some extremely controversial moves like issuing a decree to mark June 28 as “Soviet Occupation Day” (which has since been overturned by the country’s Constitutional Court). This not only angered Transdniestria and caused Russia to retaliate by targeting the country’s wine exports, but polarized the pragmatic pro-European elements within Moldova as well, as evidenced by Lupu’s recent statements. This has caused the pro-European bloc’s popularity to fall and the Communists to make a comeback in the polls, and sets the stage for a referendum scheduled for September that could see a new set of general elections, likely in November. The Communists could then retake power from the fragile AEI.

Russia is not the only outside power vying for influence in Moldova; another more traditional suitor is Romania, which has cultural and ethnic ties to the country. Romania, seeing the course of recent events in Ukraine, has been pursuing Moldova aggressively, thinking it could be the next former Soviet state to fall to Moscow. Romanian President Traian Basescu recently stated that the two Romanian-speaking territories should be reunited, and that, should Ukraine make a move for Transdniestria or Moldova, Romania would use the Romanian populations in western Ukraine — mainly Bucovina — to challenge Kiev. Ukraine and Russia have taken Basescu’s comments quite seriously. Basescu’s comments were also controversial within Moldova, where many citizens are against being split between Ukraine and Romania and instead want Moldova to remain its own independent country.

The Transdniestria issue is also a key topic that Germany specifically suggested Berlin and Moscow work on as they seek to strengthen their ties via the Russia-EU Security Council. German Chancellor Angela Merkel said Transdniestria should be a priority for Russian-EU talks, and the issue was at the top of the agenda for Merkel’s meeting with Medvedev in June. Germany drafted a proposal for negotiations on the issue, but this included Russia removing its troops from Transdniestria — something Moscow has said it would not do. As Russia and Germany increase cooperation in the economic and energy sectors, the Transdniestria issue could slow this warming of relations. Russia expanding its influence in Ukraine is one thing, but Moldova may be a little too far into Europe for even Russia-friendly Germany to be comfortable with. Russia’s overtures in Moldova therefore could ripple across the rest of Europe, depending on how far Moscow decides to go to increase its influence in Chisinau.

INTEGRATED AGENCY ON FOOD SAFETY IS TO BE CREATED IN MOLDOVA.

Infomarket.md - Public Goverment

27.07.2010

This was announced by Minister of Agriculture and Food Industry Valeriu Cosarciuc speaking at the meeting of governmental commission for European integration held by Prime Minister Vladimir Filat. The head of the Ministry of Agriculture noted that the system of food safety will appear in Moldova together with creation of such agency. In his turn, Deputy Prime Minister, Minister of Economy Valeriu Lazar informed the commission on preparation for negotiations between Moldova and EU on the creation of a deep and comprehensive free trade area with EU within the Association Agreement. According to him, the negotiations on this document and its signing will make it possible to create favorable business environment for Moldavian companies and foreign investors. According to information, provided by Deputy Minister of Transport and Road Infrastructure Boris Gherasim, the State Administration of Civil Aviation of Moldova is ready to participate in consultations with European commission experts on liberalization of air services and in negotiations for joining of Moldova to the Single European Airspace. Vladimir Filat appealed to the members of governmental Commission for European integration to show maximum responsibility in implementation of measures, relating to integration of Moldova to the Single European Space. // 27.07.2010 - InfoMarket.

Creation of Moldova Business People Association

Moldova's news - Creation of Moldova Business People Association

On July 26th, 2010, the Moldova Business People Association was registered by a group of successful businessmen operating in the following fields: telecommunications, banking, media, advertising, commerce and others, who recognized the need to consolidate their efforts in order to contribute to settling the economic problems of the Moldovan society.

The main purpose of the Association is to create a transparent business climate, based on the fundamental principles of market economy, aimed at achieving sustainable and effective development of the national economy. This objective will be attained by promoting legislative initiatives, promoting the image of the country, attracting foreign investments in Moldova and developing the local business community.

The Association will present its action plan at an official event which will be held in the nearest future.

For more information, please contact the Executive Director of the Moldova Business People Association:

Mr. Roman Chirca
Tel: +373 60 066 220
Tel/fax: +373 22 809 913
roman.chirca@pro-sper.md

INTERVIEW: Moldova replaces Ukraine as darling of donors

INTERVIEW: Moldova replaces Ukraine as darling of donors - BUSINESS NEW EUROPE

Graham Stack in Chisinau
April 22, 2010


A year ago, Moldova suffered Kyrgyzstan-style public disorder following contested elections, which ended with a new pro-EU government pushing a reform agenda taking power. Lenders and investors took note, and on March 24 the Moldova Partnership Forum brought together sponsors and investors at a major donor conference in Brussels.

"The Moldova Partnership Forum held in Brussels was about two important things: trust and commitment," Melanie Marlett, World Bank country head for Moldova, tells bne. "Trust from the international community in the government's reform programme and commitment to supporting Moldova's development and modernization agenda."

As well as a total of $2.6bn pledged by institutions for critical investments in roads, access to water and sanitation, agriculture, energy, health, regional development and social protection, the March conference was also about positioning Moldova as the entirely unexpected star pupil from among the EU's "Eastern Partnership" pupils, says Marlett. The small country often cursorily referred to as "Europe's poorest country" has leapfrogged established reform favourites such as Ukraine. "Moldova's commitment to European integration and its willingness to embrace change and implement even tough reforms has put Moldova on the map in Brussels in a very positive way," Marlett enthuses.

This optimism is all the remarkable given that the crisis hit Moldova late but very hard. "Moldova's economy has been severely weakened by the global crisis," Marlett acknowledges. From 2000-2008, growth averaged 6%, led by consumption financed from remittances from Moldovan migrants. The crisis exposed the vulnerability of this growth path, with remittances falling by 29% in 2009, GDP by 6.5% and household consumption by around 12%.

But the new reformist Alliance for European Integration, taking office after nine years of Communist Party rule, quickly developed an Economic Stabilization and Recovery programme focusing on putting the country's finances in order, liberalizing markets and improving the business environment, and thus successfully garnered international financial support when in January the International Monetary Fund (IMF) agreed to lend it $574m.

Singapore on the Dniester

But this won't be sufficient on its own. "The global economic crisis has exposed the vulnerability of a remittance-based growth model. Moldova needs to start thinking about its future growth model. What are the potential sources of growth for Moldova?" asks Marlett. Here, World Bank thinking takes on board not only European, but also Asian, specifically Singapore's, experience with information and communication technologies (ICT).

IT currently constitutes 10% of Moldovan GDP, with 25,000 employed in the sector, according to statistics provided at an USAID Information and Communication Technology Summit in Chisinau on March 30. "The experience of countries like Singapore transforming the way government does business through the use of ICT is an example of how modern technology can reduce public spending, eliminate the human factor and thus minimize the risk of corruption, and deliver a better, faster and cheaper service to citizens and businesses," argues Marlett. The World Bank has consequently helped launch an ICT partnership between the two states, with Moldova signing an agreement with Singapore to draw on its experience.

A major obstacle, though, is that Moldova still has a criminally low broadband internet penetration of around 6% - not surprising considering a majority of the population is rural. "The government recently approved a decision to liberalize international broadband Internet connectivity. This will increase competition on the domestic market and lower internet costs for the end user."

In addition to the use of broadband, the World Bank is also exploring the use of mobile services - eg. m-banking, m-health, m-agriculture - as a way to reach an even wider audience, as penetration of mobile telephone use in Moldova is 70%.

These ideas have been incorporated into the government's own reform programme called "Rethink Moldova" that was endorsed at the donor conference. Among the more specific measures proposed is the restructuring and even privatization of national telecommunications provider Moldtelecom and the building of technology parks. A study by EU technical experts identified five potential locations for industrial parks, requiring estimated investment of €73m. The government is also planning investment in optical fibre infrastructure and an on‐ground digital television network.

The global media labeled last year's Chisinau protests as the "Twitter Revolution," but it was more a case of Twitter putting Moldova on the map than vice versa: protest leader Natalia Morar later acknowledged that she had only opened a Twitter account the day after the protests occurred, with "traditional" Russian social networks such as Vkontakte.ru and Odnoklassniki.ru playing the key role. But this is still a strong indication of connectedness among the younger generation, and of the potential for social change of ICT that Moldova appears to be placing much of its hopes upon.

Chisinau's charm offensive

Poor Moldova: Chisinau's charm offensive | The Economist

Europe’s poorest country looks for friends in the West

Mar 31st 2010 | From The Economist print edition

FEW people have heard of Moldova—and when they have, it is usually for the wrong reasons. A frozen conflict with Russian-backed separatists in Transdniestria has hamstrung the country since 1992. A year ago a rigged election brought riots, followed by hundreds of arrests, scores of alleged beatings and rapes, and three deaths. The outrage led to a new election and the formation of a shaky pro-Western coalition government. Its youthful ministers are in sharp contrast to the greyness of the previous regime, nominally a Communist one but in fact crony-capitalist.

The new lot have thawed relations with Romania and launched a charm offensive in the West. A donor conference recently pledged €1.9 billion ($2.6 billion), half in grants and the rest in soft loans. China has dangled a $1 billion loan for infrastructure. The IMF has approved the government’s economic policies: after an 8.5% drop in 2009, GDP is likely to grow by 1.5% this year. Yet Moldova will still be Europe’s poorest country. Hundreds of thousands of Moldovans work abroad, mostly illegally. Their remittances keep Moldova afloat.

Outsiders see more changes at the top than Moldovans themselves feel in practice. Reining in the budget deficit, over 8% of GDP in 2009, will mean rises in heating costs and cuts in a bloated public sector. Wrangles in the deadlocked parliament over the election of a new president waste time. Failure, says the constitution, would mean another general election that few want.

More important to voters is travel to the rest of Europe. This has got harder since Romania joined the European Union in 2007. The Romanians promise a special regime for Moldovans living within 30km (about 19 miles) of the border. But they also want to join the Schengen passport-free zone next year, which would create still more expense and hassle for Moldovans. The goal of visa-free travel to the EU is a long way off.

Changing Western minds means enacting reforms, not just talking about them. Officials speak excitedly of Estonia and Georgia as models. One sign of intent might be to liberalise aviation rules, allowing budget airlines to fly to Chisinau. That would be popular with passengers but bad news for the protected national airline, Air Moldova.

The biggest change has been in media freedom, tightly restricted under the previous government. Two new television stations have started broadcasting. Romanian television will return soon. But big reforms in the corrupt, Soviet-style bureaucracy must wait, as it seems must the rule of law. Investigations into official misbehaviour during last year’s riots have brought some sackings and suspensions, but no deep-seated changes—or even a truthful account of what really happened.

MOLDOVA: Wine-makers hope to preserve county's wine industry despite deep economic crisis

MOLDOVA: Wine-makers hope to preserve county's wine industry despite deep economic crisis

The Moldovan wine-making industry dates back to the country's ancient Greek and Roman colonisers.
The grape-growing and winemaking in the area has had periods of growth and decline but has survived through all the changing social and economic conditions of Europe's poorest country. The times of decline, such as those under 300 years of Ottoman rule and during two World Wars, have been followed by good times such as the beginning of the 19th century and during the Soviet years in the 1950's.
The recent years have been turbulent for Moldova's wine-makers. The industry is reeling from three successive blows - a 2006 Russian embargo on Moldovan imports, now lifted, the fall of the US dollar and now the world financial crisis.
"The wine-producing industry we had before - I think it is already dead. I cannot speak for everyone, but I think it is probably dead. We are not competitive. We cannot keep our heads above water at the moment. We all have loans to pay off and we cannot make a return on the money we've invested," said Nelly Sonic, vice-president of the "Lion-Gri" winery, one of the country's top three producers.
Like many businesses in Moldova, a crescent of land wedged between Ukraine and Romania, ''Lion-Gri'' has become saddled with debts as it tries to keep alive a business with costly inputs - labour to tend the vines and oversee production, herbicides and a bottling plant.
But despite all the problems, Nelly Sonic still thinks there is a future as a Moldovan wine-maker.
"We do not want to stop producing wine. Moldova is a country of wine producers. However difficult it may be, we will work until the end to remain a wine-producing country," Sonic said.
The Moldovan wine industry has never recovered from the blow it was dealt in 2006 when a diplomatic conflict with Russia resulted in a ban on Moldovan wine imports.
If prior to the ban Moldova sold to Russia 180 million euros worth of wine per year, today the amount is less than 57 million euros. Sales to Europe and other countries cannot make up for this loss. Moldovan wines are not very well-known in the West and face tough competition from established local producers.
"Our wine producers, for the most part, are of the old Soviet type, making not very high quality wines," said Veaceslav Ionitsa, programme director of the economic policy centre at the Institute for Development and Social initiatives.
"They have been oriented towards the Russian market and totally unable to enter other markets. At the moment I would say that our wine-making industry is in a coma. Out of 160 wine factories only 20 sell their products in the west and are built with the participation of western money. And they are doing fine now, as they did before the crisis. But most of the wine-makers are in a very bad situation and they are pulling down other industries like grape producers and bottle producers with them," he added.
Like other ex-Soviet republics, Moldova is reeling from the financial crisis, with the added difficulty that remittances from hundreds of thousands of its nationals working abroad - critical to the 4.3 billion euro economy - are down by a third. Political instability has further complicated the mix.
But despite all the problems, local wine-makers hope that this period of decline will end and Moldova, with its warm, sunny climate and rich wine-making traditions, will produce wine which will find its way into the world's markets and contribute to the country's future prosperity.

United Kingdom upbeat on Moldova's future in EU

Agentia Informationala de Stat "Moldpres"

Chisinau, 2 March /MOLDPRES/ - The United Kingdom will be a friend of Moldova within the European Union. This message was conveyed to the Moldovan authorities by a representative of the British Foreign and Commonwealth Office, head of the Diplomatic Service Peter Rickets at a meeting with Deputy Prime Minister, Foreign and European Integration Minister Iurie Leanca. The Moldovan official was on a visit to London on 26 February - 1 March, the Foreign and European Integration Ministry's (MAIEIE) media and public relations directorate has said.

This support stems from the United Kingdom's consistent position in favour of the extension process and has been recently proved through full support provided within the EU for the launch of talks on a Moldova-EU association agreement.

The discussions at the British Foreign Office confirmed the British government's willingness to give the necessary assistance, especially methodological examination and advice in the most important for Moldova sectors, such as economy and finance, security and defence, justice and domestic affairs. In particular, the United Kingdom showed willingness to consider a possibility of assisting the training of Moldovan experts for negotiations on the future agreement on deep and comprehensive free trade.

The British government reiterated its support for the structural reforms launched by the Moldovan government, including through its participation in the international effort of giving financial assistance. The government also welcomed the initiative to organize a conference of donors in Brussels on 24 March 2010.

During meetings held on the occasion of the visit to London by the Moldovan official, representatives of the British parliament discussed the importance to consistently and coherently promote domestic reforms, which represent a solid basis for the advancement of dialogue with the European Union. Encouraging messages were launched within a meeting with the head of the parliamentary commission for EU, Lord Roper. The British MP said that Moldova's future is in the EU, and on this ground, Moldova should be treated differently from other participants in the Eastern Partnership, on the basis of the progress made on the path of reforms. The Moldovan foreign minister stressed the importance that the EU creatively approach Moldova's performance, especially while developing the Moldova-EU dialogue on the liberalization of the visa regime in the long run.

Iurie Leanca thanked the parliamentary friendship group for Moldova led by Lord Dubs for its substantial contribution to maintaining Moldova on the agenda of the British parliament and government. In this respect, he referred to the parliamentary motion "Moldova's Future", launched following an initiative by the members of this group.

The issue of facilitating the visa regime between Moldova and the United Kingdom was the main subject discussed with British Minister of State for Borders and Immigration Plil Woolas. The issue was approached in the context that cooperation in this sector represents a Moldovan-British bilateral exercise, as the United Kingdom is not party to the Schengen Agreement. The two officials shared the opinion that possibilities of giving up the compulsoriness of visas for the holders of Moldovan diplomatic passports should be considered.

On visit to London, Minister Iurie Leanca met representatives of the Moldovan community in the United Kingdom, in the context of a wider governmental strategy to establish a direct dialogue between the central authorities and the compatriots from abroad. Leanca presented the government's objectives and the actions undertaken to support the Moldovan communities from abroad. The sides discussed the social and education problems faced by Moldovan citizens. Representatives of the diaspora asked the Moldovan central authorities to consolidate the communication strategies with the Moldovan nationals from the United Kingdom, and especially Ireland, where it is highly necessary to enhance the interaction between the authorities and the diaspora, given the lack of a permanent diplomatic representation, including by appointing an honorary consul of Moldova in Ireland as soon as possible. The minister gave assurances that the proposals would be examined attentively, adding that the national authorities would undertake the necessary measures to fulfill them.

Discussions with representatives of the National School of Government focused on prospects of cooperation to consolidate the institutional abilities of the central public administration.

The Moldovan foreign minister made a presentation at the Royal Institute of International Affairs on the subject "Moldova's Integration into Europe and Black Sea Region" and gave interviews to British journalists.

The question of Moldova’s full integration in the European Union is not if but when, Kalman Mizsei

Moldova's news - The question of Moldova’s full integration in the European Union is not if but when, Kalman Mizsei

“Many EU officials and politicians have said, and I can repeat, that the question of Moldova’s full integration in the European Union is not if but when”, EU Special Representative for Moldova Kalman Mizsei has told the agency Info-Prim Neo in an interview.

When asked about Moldova's progress towards European integration during three years of his current term in office, Kalman Mizsei remarked the dynamic development of the relationship between the EU and the Republic of Moldova. “Of course many people have contributed to this both in the EU and in Moldova but undoubtedly with the EUSR the interests and perspectives of Moldova, as a direct neighbor of the EU, have received a strong advocate in Brussels”, Mr Mizsei says. “We have seen the adoption of the visa facilitation agreement and the setting up of a joint visa application center, granting of autonomous trade preferences to Moldova, start of negotiations of EU-Moldova Association Agreement, the deployment of EUBAM on Moldova-Ukrainian border, and considerable increase of financial assistance to Moldova. I can safely say that the understanding of the Republic of Moldova in Brussels now is noticeably stronger now than it was 3 years ago when I started my current mission”.

Ambassador Mizsei avoided saying whether there was any difference between the European integration approaches of the present and the previous government of Moldova. “it is not my task to write comparative analysis about this. We worked with both governments intensively to accelerate what some analysts call the Europeanization of Moldova. I take heart from the fact that when member state delegations come to Moldova they often tell me how impressed they are with the European aura of the country – this is the achievements of both, past and present government as well as civil society that in Moldova is particularly vigorous.”.

Kalman Mizsei also answered indirectly to the question about the alleged insincerity of the previous government in matters of European integration.

“I do not want to get involved into issues of domestic political competition – it is good though that all parties want to demonstrate their commitment to the European integration. It means they follow the expectations of their electorate. Moldovans overwhelmingly opt for a European integration path. We had some discussions last year and the year before with the authorities about the Eastern Partnership and not everyone at that time was on board. You also know that we urged the authorities to improve adherence to European norms in the areas of judicial independence, behaviour of police, and other areas of human rights. We continue this and soon a so called Human rights dialogue will start that hopefully will make positive changes in this respect irreversible – leaving behind the long accumulating historical heritage of neglect for human rights. On the other hand, we do not forget that many essential results of European integration happened in the last 3-4 years. We concentrate on the country with its whole political class and particularly with its whole community, people”, stated Kalman Mizsei in his interview with Info-Prim Neo.

Kalman Mizsei was appointed EU Special Representative for Moldova on March 1, 2007 for a three-year term. Recently, the Council of the EU prolonged his term in office until August 31, 2010.

Let us help plucky Moldova | The Spectator

Let us help plucky Moldova | The Spectator

Now that the post-Cold War era has ended it is hard to find small, inspirational states who seek to cement a new-found independence and yearn for what the West has to offer. Georgia looked like such a state until Russian aggression and Tblisi's behaviour put an end to the country's westward journey. Ukraine is too big, and too bolshy to count. Belarus is happy in Moscow's embrace.

But one country still fits the bill - Moldova. Sandwiched between Ukraine and Romania, Europe’s absolute poorest country is undergoing a new political spring after the recent elections. A new, Western-minded, youthful coalition government has replaced the old-style communists. It faces enormous challenges, not least from a well-entrenched, Russian-backed secessionist province, and a forthcoming constitutional crisis.

But its ministers are approaching their task with a vigoUr and useful naiveté that all reformers need and which has long since been lost elsewhere on the EU's Eastern borders. They want to be part of Europe, and they want to build their state. Having inherited a 16.5 GDP deficit, the government has managed to push it down to 7.8 (HM Treasury, take note please). Crucially, they seem to have learnt from Georgia's mistakes. They are not trying to militarise their internal conflicts. Nor are they looking to antagonise Russia or join NATO.

But they are looking for the EU’s help. So far, the Chisinau government has received a trickle of support rather than flow needed. To that end, they are compelled to turn to China for loans.

Europe should, however, look to do more and quickly. Governments that want to join the West are today few and far between. Most, like Ukraine, are torn, or, like Belarus, uninterested. The Moldovans are different – and willing to reform. They should be helped.

The new government may not last. Late last year, the Moldovan parliament failed to elect a president, with the coalition’s candidate blocked by the Communist Party. Normally, that would trigger the holding of early elections later this year. If elections are held, the coalition will need some record of performance to ensure that they repeat their success. Letting the Communists back in would be a step backwards worse than Viktor Yushchenko’s election in Ukraine.

So European governments should lend assistance. They should offer the prospect of visa-free travel, at least to students and young people, into the EU. Later this year, Albania is likely to be given visa-free travel into the EU. Every day, Albanians are deported from Britain for violating their terms of stay. The Home Office reports nothing comparable with Moldovans staying in the UK. They come, keep to the rules and go back when their visas expire. Then EU governments should examine ways to help get Russian “peacekeepers” out of break-away Transnistria, perhaps to be replaced by a hybrid EU-Russian civilian mission.

Western-oriented Moldova deserves Europe’s help. It may not be the biggest foreign policy issue. But it’s a good one.


Filed under: Europe (124 more articles) , Foreign Policy (82 more articles) , Georgia (3 more articles) , International politics (118 more articles) , Moldova (1 more articles) , NATO (26 more articles) , Russia (32 more articles) , UK politics (1125 more articles) , Ukraine (1 more articles)

Moldova's new government gets good marks for anti-crisis reforms - BUSINESS NEW EUROPE

Moldova's new government gets good marks for anti-crisis reforms - BUSINESS NEW EUROPE

Moldova's new government gets good marks for anti-crisis reforms

Graham Stack in Kyiv
February 22, 2010


Moldova has had a good crisis politically, but there is still turbulence ahead in 2010.

The crisis may have come at the right time for Moldova. It helped unseat a stagnating Communist Party administration led by the then-president Vladimir Voronin and gave the incoming government of Prime Minister Vlad Filat a mandate for reforms urgently needed for long-term development. Now, the small republic has signed off on a $574m International Monetary Fund (IMF) package that should shore up its economy in 2010.

Like the rest of the countries in the region, Moldova grew and grew through most of the noughties – mostly due to booming consumption, though not fuelled by cheap credit as much as by employment abroad. From 2000-2008, growth averaged 6%, poverty fell impressively and remittances from Moldovans working abroad hit 30% of GDP in 2008.

After a brief reform bout at the start of the decade, this easy growth led to a slackening of the reform drive and the economy remained overregulated, hampered in particular by price distortions, and unable to create new jobs. The crisis exposed the country's vulnerability, with remittances falling by 40% in 2009. As a result, GDP collapsed by 8.5% in 2009 and household consumption by around 12%. Meanwhile, a bitter election campaign resulting in a hung parliament after disputed elections in April, then rerun in July, meant meaningful steps to counter the global economic crisis were delayed in favour of populist spending by the then governing Communist Party.

This meant that when the new government under PM Filat finally took office in September, the budget deficit was set to hit 16% of GDP. But the Communists were replaced by the right people at the right time – Filat headed a liberal reforming coalition called Alliance for European Integration, favoured by the urban population, and who had a mandate to push on with market changes. "The government has pursued the right policies," says Valeriu Prohnitchi, director of Chisinau's Expert Group. "They have done what could be done rapidly, dismantling trade barriers, liberalizing markets such as the meat market by removing price controls. They froze salary increases for state employees, which was a difficult, but correct, choice. They raised public services prices to reach cost-recovery level, and the National Bank has switched to inflation targeting."

As result of these measures, the government managed to cut the budget deficit for 2009 to 7.8%, and this is due to fall to 7% in 2010. Moreover, there have been important institutional reforms that should bring lasting improvements. For instance, authority for setting energy prices has been passed to an independent regulatory agency.

All this has ticked the right boxes with international financial organisations. "In my view, the government has reacted quickly to respond to the crisis. The results have been impressive but, of course, there is still much to be done," Melanie Marlett, the World Bank's country manager for Moldova, says on her website.

Moldova has also made some important gains in terms of European and international integration. On January 12, the government initiated negotiations with the EU on a new Cooperation Agreement. On January 22, Filat signed the $262m Millennnium Challenge Corporation Compact with US Secretary of State Hillary Clinton. And on January 29, the IMF board approved a $574m program of support. "The IMF aid is crucial, because without it Moldova would have defaulted. It also gave a positive signal to other investors," says Prohnitchi.

Bumps in the road

The outlook for 2010 is still cloudy. Besides remittances from abroad, Moldova's economy has traditionally been dependent on wine exports to Russia. These were cut off in 2006 for political reasons, and though the informal embargo was lifted in 2008, much will depend on how quickly exports recover this year. "Wine exports will also be critical, but there is now a lot of bureaucracy in place, and the new customs union (between Russia, Belarus and Kazakhstan) interrupted wine exports at the start of this year," says Prohnitchi. "But some of our wine producers are diversifying to western markets."

The outlook for remittances is also unclear. Migrants have not, as was feared, come flooding back. Instead, they cut the amount of money they sent home. Recovery in the host European countries would allow remittances to bounce back up, though Moldovan migrants are concentrated in the South European economies of the so-called PIGS – Portugal, Italy, Greece and Spain - as well as in Russia. The PIGS are currently under pressure from spiralling budget deficits and debt burdens.

Another cloud on the horizon, says Anatol Gremalschi of the Moldovan think-tank Institute for Public Policy, are rising prices for Russian gas, which are scheduled to reach European levels by 2011.

Prohnitchi concludes that while there are some signs of the economy bottoming out, the long-term picture is unclear. "There are many risks depending on foreign markets. If the crisis worsens or stays the same there, Moldova will suffer. Our prognosis for 2010 is 1.5% growth, although the [European Bank of Reconstruction and Development] has forecast 4%," he says.

Furthermore, while the government has done good work, political instability may undermine progress in 2010, according to Gremalschi. Moldova remains locked in a constitutional crisis without an elected president since July. Moldova's unique constitution sees the president elected by a three-fifths majority of the unicameral parliament. But the governing liberal coalition falls one MP short of the 61 votes needed, and the now-oppositional Communists have refused to compromise on a candidate. Moldova thus has only an acting president, Mihai Ghimpu, whose day job is speaker of parliament. Various projects have been mooted to change the constitution, but none seem viable. "This means that we are condemned to have parliamentary elections again in 2010," says Gremalschi, "but no one knows when."

The risk for the current government is that a backlash against unpopular, but necessary, budget reductions and price liberalization, could cause them to lose votes at the parliamentary elections later this year. "People see the new alliance, and see the new prices," sighs Gremalschi. "It's a natural reaction."

The barbed-wire fence along the border of Moldova and Romania will be dismantled

Fence between countries to be melted - UPI.com

CHISINAU, Moldova, Jan. 21 (UPI) -- The barbed-wire fence along the border of Moldova and Romania will be dismantled and the metal melted for a bridge between the countries, officials said.

Moldovan Prime Minister Vlad Filat said the fenced border with a "friend country" in the 21st century, when people freely travel Europe, is "embarrassing," the Romanian Web site HotNews.ro reported Thursday.

Several local mayors, however, said they wanted to keep the fence in certain places, either for ecological reasons or concerns about the safety and protection of citizens.

Filat signed a measure on Jan. 9 ordering the fence's removal. Details of dismantling it are to be determined by the end of the month.

US Dept of State - Hillary Rodham Clinton - Remarks At Millennium Challenge Corporation Signing Ceremony With the Government of Moldova

US Dept of State - Hillary Rodham Clinton - Remarks At Millennium Challenge Corporation Signing Ceremony With the Government of Moldova

SECRETARY CLINTON: Thank you very much, Daniel, for that introduction. And I know that this very first compact signing for you will have a special place in your heart. And I don’t want to increase the pressure on Moldova, but I think the chairman – or the CEO is going to be paying very close attention to how well we do together.

I want to recognize and thank the Prime Minister, the Deputy Prime Minister and Foreign Minister who have already been acknowledged, and also our Ambassador to the Republic of Moldova. Ambassador Chaudhry, thank you for being here and for your good work on behalf of our efforts in Moldova. I know that we have the North Carolina Secretary of State Elaine Marshall, who is here. Is Elaine here? Because – there you are, I was looking for you, Elaine – North Carolina has a strong partnership with the government and people of Moldova, and we’re delighted that you would come up for this occasion.

And all of you, thank you for being here for this historic event, the signing of the Millennium Challenge Corporation Compact. Since 2004, MCC has worked with countries all over the world to help millions escape the grip of poverty, to work with governments so that they had more capacity to deliver services to their people, to provide the kind of technical assistance that would go for the long term in the way that governments conducted their business – transparently, with accountability, free from corruption.

Through the MCC, the United States has provided over billion to national governments committed to good governance, economic trade and investments, and the health and well-being of their people. The country-led MCC framework empowers nations to chart their own paths to progress. Each country has to identify its barriers to progress, has to craft solutions to overcome these barriers, has to implement the programs that will move the countries toward economic growth.

In the last five years, over 40 MCC Compact countries have built schools, roads, hospitals, and made many other investments in infrastructure that are providing a solid foundation for future prosperity. And today, I am pleased that we are able to add Moldova to that growing list. This is the final step of a journey that began in 2005 when Moldova became part of the MCC Threshold Program. As a threshold country, it pledged to undertake a series of reforms before it could become eligible for an MCC compact.

And working with the MCC and our partners at USAID, the government implemented legal reforms to curb corruption, introduced budgetary requirements that promoted transparency, and strengthened the capacity of civil society and the media to report on crime. And in that period, Moldova made significant progress economically, socially, and politically. And we are very pleased that this day has come. We applaud the people of Moldova and their leaders for embracing a reform agenda.

We know it was not easy. We know that it came at political cost. But it was so important because it has established a democratic Moldova that has, for the first time, a democratically- elected prime minister in eight years. So this agreement begins a new chapter in the relationship between our two countries. It reflects our commitment to help put the people of Moldova on the road to economic progress, and that’s literally because, as Daniel pointed out, we’re going to be building roads with this money.

We will also be rehabilitating irrigation systems, helping farmers transition into high-value agriculture that has real market quality inside of Europe and beyond, and building those safe roads from Chisinau to the Ukrainian border so that farmers can get their goods to market. These are all essential steps, and we will work with you and support you as you proceed. The Obama Administration is committed to building our partnership, broadening it, strengthening it, and seeing the people of Moldova reap the benefits of market reform, political reform, and all of the efforts that have been undertaken in the last years.

So, Prime Minister Filat, today’s signing is a victory for governance, human rights, and economic reform. We want Moldova to be part of the Euro-Atlantic alliance with all of the benefits that that will bring to the Moldovan people. So I congratulate you, your government, and your people for your ongoing commitment, and I wish you every success in the implementation of this compact. And I thank all of you for being here for this important milestone.

Now, please join me in welcoming His Excellency Prime Minister Filat to the podium.

highest prices in Europe on consumer goods in one of its poorest countries

Moldova to improve its retail business regulation

The Government intends to introduce order in Moldova's internal trade, as it considers the existing highest prices in Europe on consumer goods in one of its poorest countries as a crime against the citizens.

Vice-Premier, Minister of Economy Valeriu Lazar said that the reason for high prices on consumer goods is a high cost of trade transactions.

"It is not normal, when the profitability in the trade constitutes 500%", the minister considers.

He expressed his dissatisfaction concerning the quality of products at the market.

"There are thousand and one controlling institutions in the country, but despite of this fact consumers have to buy low-quality products", Lazer said, who considers that the provision of the Moldovan citizens' decent life and consumer protection as the state's most important objective.

He said that in order to solve this task, the Government works out the Bill on Internal Trade, which is designed to remove the existing market problems. The document is worked out by a new department on trade policies, which was set up by the Ministry of Economy.

Lazer said that the Government will have to analyze the situation in the retail trade and services network of the Moldcoop Union of Consumer Cooperation. He expressed regret with the fact that the Moldcoop will not invest its financial resources in the development of its own infrastructure and it will not attract investors' financial resources.

Earlier Prime Minister Vlad Filat also said that the Government has many questions to Moldcoop, in particular, concerning the assets of these enterprises and the document, confirming the share of their participation and the state of objects.

The sale volume of consumer goods in Moldovan shops constituted 17.93 billion lei ($16.3 million) over 11 months of 2009, it dropped by 4.6% against the same period of 2008. The decrease is conditioned, mainly, by a 10% decrease in the sale of industrial goods. The trade in food products, which accounted for a little more than one third of the retail trade volume, increased by 5.1%.

Infotag, Moldovan news agency