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photo source: edufin.md
Posted by: Alina Zlatov
News / Economic
25 Aug. 2022 / 20:25
Economic experts: The economic independence of the Republic of Moldova is a tumultuous one
During the 31 years of independence on the economic level, the Republic of Moldova had some successes, but also many failures. Our country's economy remains underdeveloped and requires a lot of investment, say economic analysts. External economic relations are one of the country's greatest successes, experts say, referring to the fact that the Republic of Moldova has succeeded in partially diversifying its markets for domestic products. But our state must focus on the modernization of all economic sectors, including agriculture, but also in areas of innovation, such as the IT sector, reports Radio Moldova.
On August 27, 1991, the Republic of Moldova not only became an independent state, but was also faced with the situation of revising the economic system practically overnight.
Simultaneously with the renunciation of a totalitarian political regime and a planned economy, the Republic of Moldova committed itself to building a market economy. The transition to an economy based on the principles of the free market represented a route full of turns with some progress, but also with many failures, says economist Viorel Gîrbu. According to him, although there were some attempts to ensure economic stability, throughout the 31 years of independence, our country was hit by many crises that it did not know how to manage properly. Viorel Gîrbu emphasised that the Republic of Moldova must review its transition policy to a free economy, make a lot of efforts in the field of adapting the institutional and regulatory framework, as well as the efficiency of the yield of local producers.
"We succeeded in a certain transition towards a market economy, but it is not completely applied. The energy market can be advanced even more. Agriculture is an important economic branch, but it has lost quite a lot as a share of GDP, that sector is underdeveloped. We lost a lot of industry, especially the light industry, but with foreign investments and here the incomes are low. We are connected to a more efficient economic system, but our position in this system is low. We can note the development of the IT sector. Here, the Republic of Moldova really achieved a fairly good performance. What can be done? We must properly manage the economic transition process. We are trying to take over the European standards and by this we expect that the Moldovan economy will be European, but it is not true. We must properly manage the transition process from the underdeveloped economy we have to a developed European economy", said economist Viorel Gîrbu.
Economist Adrian Lupusor is of a similar opinion. He mentions that the failures of the national economy are particularly visible when we look at the level of economic development of neighbouring countries, which have gone through a similar transition process. According to him, the greatest economic potential of our country and where we must focus our efforts in the coming years are the agricultural sector, the sector of innovations and IT.
"The economy of the Republic of Moldova has become an open economy, which is a good thing, because we are a small market. In terms of functional institutions and economic security here, of course, we have not progressed much. It is enough to look over the Prut. During these 31 years, the economic gap between the Republic of Moldova and Romania grew. When it comes to investment attractiveness, we are close friends. The raw material from the agricultural sector must be valued through investments in the processing of the raw material. And secondly, we must emphasise people, who can generate innovations. Who would have thought several years ago that the Republic of Moldova would, for example, produce drones or assemble electric trolleybuses, which circulate in the USA", said economist Adrian Lupusor.
During the more than 3 decades of independence, the Republic of Moldova has faced several challenges and economic crises. in the first 10 years after the declaration of independence, our country faced an economic decline of proportions. The Gross Domestic Product decreased practically three times. In particular, the economic crisis of 1998 in Russia affected it, given that this state was by far the most important commercial partner of the Republic of Moldova. Then the strongest devaluation of the Moldovan leu was recorded. The world crisis of 2009 also affected the national economy, followed by the banking crisis of 2015, the pandemic crisis, and currently we are facing, like practically the entire continent, an energy crisis and a large increase in prices. In the first half of this year, inflation exceeded 30% due to the high prices of energy products, agri-food products and the war in Ukraine. However, some crises can also create opportunities. For example, after in the 2000s, the national economy faced the embargoes imposed by the Russian Federation on domestic agri-food and wine products, in the medium term this also had a positive effect leading to the reorientation and diversification of national exports.
Simultaneously with the renunciation of a totalitarian political regime and a planned economy, the Republic of Moldova committed itself to building a market economy. The transition to an economy based on the principles of the free market represented a route full of turns with some progress, but also with many failures, says economist Viorel Gîrbu. According to him, although there were some attempts to ensure economic stability, throughout the 31 years of independence, our country was hit by many crises that it did not know how to manage properly. Viorel Gîrbu emphasised that the Republic of Moldova must review its transition policy to a free economy, make a lot of efforts in the field of adapting the institutional and regulatory framework, as well as the efficiency of the yield of local producers.
"We succeeded in a certain transition towards a market economy, but it is not completely applied. The energy market can be advanced even more. Agriculture is an important economic branch, but it has lost quite a lot as a share of GDP, that sector is underdeveloped. We lost a lot of industry, especially the light industry, but with foreign investments and here the incomes are low. We are connected to a more efficient economic system, but our position in this system is low. We can note the development of the IT sector. Here, the Republic of Moldova really achieved a fairly good performance. What can be done? We must properly manage the economic transition process. We are trying to take over the European standards and by this we expect that the Moldovan economy will be European, but it is not true. We must properly manage the transition process from the underdeveloped economy we have to a developed European economy", said economist Viorel Gîrbu.
Economist Adrian Lupusor is of a similar opinion. He mentions that the failures of the national economy are particularly visible when we look at the level of economic development of neighbouring countries, which have gone through a similar transition process. According to him, the greatest economic potential of our country and where we must focus our efforts in the coming years are the agricultural sector, the sector of innovations and IT.
"The economy of the Republic of Moldova has become an open economy, which is a good thing, because we are a small market. In terms of functional institutions and economic security here, of course, we have not progressed much. It is enough to look over the Prut. During these 31 years, the economic gap between the Republic of Moldova and Romania grew. When it comes to investment attractiveness, we are close friends. The raw material from the agricultural sector must be valued through investments in the processing of the raw material. And secondly, we must emphasise people, who can generate innovations. Who would have thought several years ago that the Republic of Moldova would, for example, produce drones or assemble electric trolleybuses, which circulate in the USA", said economist Adrian Lupusor.
During the more than 3 decades of independence, the Republic of Moldova has faced several challenges and economic crises. in the first 10 years after the declaration of independence, our country faced an economic decline of proportions. The Gross Domestic Product decreased practically three times. In particular, the economic crisis of 1998 in Russia affected it, given that this state was by far the most important commercial partner of the Republic of Moldova. Then the strongest devaluation of the Moldovan leu was recorded. The world crisis of 2009 also affected the national economy, followed by the banking crisis of 2015, the pandemic crisis, and currently we are facing, like practically the entire continent, an energy crisis and a large increase in prices. In the first half of this year, inflation exceeded 30% due to the high prices of energy products, agri-food products and the war in Ukraine. However, some crises can also create opportunities. For example, after in the 2000s, the national economy faced the embargoes imposed by the Russian Federation on domestic agri-food and wine products, in the medium term this also had a positive effect leading to the reorientation and diversification of national exports.
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