Economy
Analysis: Evolution of perceptions of social-economic and political situation (Part I)
Reading Time: 8 minutesAnalysis: Evolution of perceptions of social-economic and political situation (Part I)
Author: Igor Botan, ADEPT
e-journal, year V, issue 89, February 1–16, 2007
I. Trends revealed by surveys
At present, the evolution of perceptions of social-economic and political situation in Moldova must be estimated for two reasons: a) the absolute victory of the Party of Communists of the Republic of Moldova (PCRM) in the Parliament (3/4 of seats during two mandates) will turn 6 on February 25, 2007; b) the general local elections scheduled for late May-early June, elections which will suggest if the PCRM will be really able to bid for the third mandate of dominant party in 2009, too, are being prepared.
Such estimation is also required because, starting November 2001, the Institute of Public Policy (IPP) has measured the perceptions of social-economic and political situation with a stable periodicity within "barometers of opinion", on basis of a constant set of questions. The last factor is essential to understand the trends revealed by 11 measurements conducted in 5 years. In addition, the conduct of surveys commissioned by the same institution (IPP), in line with the same methodological requirements, with the same error margin enhances the confidence that the revealed trends reflect adequate perceptions of the real social-economic and political processes, in spite of different executors of surveys. Given the fact that people in Moldova still do not believe in surveys and they are suspicious that the public opinion is manipulated via surveys, it is necessary to note that focussing on both findings of surveys and deviations from "norm" may be useful. Truly, what findings of surveys, which show that the absolute majority of Moldovan citizens have constantly considered in the last 6 years that the things in our country went in a wrong direction, could tell us if the same citizens credited the ruling party with the highest rating, confirmed periodically at three elections?
For these reasons, the next barometer and other surveys conducted before elections, likely in March-May, will present interest for observing oscillations of evolution of trends outlined in the past 6 years.
The trends revealed by surveys should reflect somehow the political context, reactions of public opinion to sounding events in internal and external political lives, perceptible things which sometimes are not strongly observed: round o’clock protests held under the aegis of the Christian Democratic People’s Party (CDPP) in January-May 2002; the November 2003 protests against the "Kozak memorandum"; the strategic partnership that followed the "April 4, 2005" voting; the Russian Federation’s embargo on Moldovan agro-food products and wines; multiple sounding political scandals related to violation of rights of opposition, freedom of expression and freedom of mass media, etc.
Following may be the explanations of feeble reactions of citizens to the sounding events mentioned above: a) perception of citizens is basically influenced by the way the mass media covers the events and this is a very sensitive issue for political class; b) effects of important events are manifested much later in the virtue of inertia, when the capacity of establishing the cause-effect relation reduces significantly; c) difficult cumulative effects of many sounding events amplify or reduce the reactions of citizens. However, it was observed that Moldovans react very clearly and distinctly when their welfare is directly threatened. For this reason, both researchers and political class are very interested how the electoral conduct of people may influence the perception of social-economic and political situation of citizens.
II. Stability – premise of predictability of electoral conduct
The electoral behaviour of Moldovan citizens has its specifics for sure. A series of researches based on findings of surveys conducted in 1993–2000 demonstrated that under very bad conditions though in relative stability, the change of the electoral conduct was mainly due to the behaviour of political leaders, especially of high-ranking public functionaries. The results of the 1995 local elections, the 1996 presidential scrutiny, the 1998 parliamentary elections and the 1999 local elections demonstrate that social-economic and political shocks in that period inserted with interests of ruling groups and of those willing the governance produced the "migration" of leaders from one party to another and appearance of new parties or alliances. After the 1994 parliamentary elections, which were a reference point to establish the rating of parties and political leaders, "migration" of the latter after numerous splitting and coalitions attracted the sympathies of electors who have loyally followed the winding trajectories of leaders. Beside the "migration" of leaders, the only remarkable phenomenon with a major impact was the gradual elimination by PCRM of its temporary substitutes – the Agrarian Democratic Party of Moldova (ADPM) and the Unitatea-Yedinsto Union.
The February 25, 2001 parliamentary elections eliminated or started eliminating some "migrant" leaders from domestic political circuit and opened a new phase – the absolute governance of PCRM, this thing being valid at least in the past years. It must be clear that there were serious premises "to undermine the fidelity of electors" in the precedent phase and to start the new period of "electoral devotion": a) the August 1998 financial collapse in Russia had negative repercussions on Moldovan economy, and this influence was wholly manifested in 1999–2000; b) the 2000 constitutional crisis discredited completely the parties and political leaders, associates of the governance at that stage (former members of the Alliance for Democracy and Reforms (ADR) and supporters of former president Petru Lucinschi); c) very favourable conditions, which did not exist in other CIS member states in that period, for oppositional at the time PCRM to criticise governors for consequences of the financial collapse and constitutional crisis, including conditions for open electoral propaganda. The last factor is found in a report by the OSCE Mission on monitoring of the 2001 parliamentary elections. The correctness of public television in Moldova had never been highly appreciated before and after those elections, without any accusation regarding the coverage of the electoral campaign.
Thus, the absolute victory of PCRM at the 2001 elections is not the result of an unusual attitude of Moldovan citizens toward the communist ideology, while the re-election of PCRM in March 2005 confirms the merit of PCRM in stabilising the social-economic situation, which it knew to maintain despite of a very specific manner for a communist party, enjoying a relatively favourable conjuncture: a) the previous governments of Ion Sturza (ADR) and Dumitru Braghis in the period 1999–2000 have remedied many consequences of the financial collapse and its collateral effects; b) the strong growth of remittances from Moldovans working abroad coincided with the PCRM ruling; c) the strong regional economic growth, of which Moldova profited, too, has started. As a result, we may observe how satisfied Moldovan citizens have been of the economic condition in the past 6 years.
One may observe that only the number of those "not very satisfied" with the economic condition has decreased by approximately 20 percent since the PCRM gained the power, and this fact confirms the significant reduction of poverty rate. The other groups have accommodated to the "situation of stability". It is interesting that expectations of citizens did not foretoken anything special in the past years, confirming the accommodation to the existing situation.

Another factor that attests the stability is linked to a relatively constant perception of citizens toward their main goods, primordial services offered by public institutions, as well as political condition in the country. Some governmental projects and programmes are slowly becoming effective, but sources of dissatisfaction are also outlined very clearly.
But stability under predomination of dissatisfactions cannot be called but stagnation. Thus, development of economy, strengthening of order in country and combat of corruption continue to be regarded as the most important tasks of Moldova, but the interest for them is declining, though people remain still dissatisfied with situation in their country. A possible conclusion is that citizens believe less that these tasks may be achieved. Of course, media campaigns only, like those against corruption, may produce oscillations of citizens’ perceptions. In this situation,
citizens propose interesting remedies. In this regard, two contrary options compete distinctively – "growth of state’s role" and "awarding of more facilities to private sector."
The fact that the option "changing the state leadership" remains more or less constant is also significant because only approximately 15 percent of respondents regard it as an urgent measure to improve the social-economic situation.
III. What threatens the stability?
There are very clear indicators that both authorities and leaders of the ruling party and opposition understand that the current stability in Moldova is related to stagnation. Governors are interested to get rid of stagnation but don’t want to lose control on situation; that means on stability. The opposition claims change, knowing from precedent experiences that the electorate sanctions the political forces which are to blame for destabilisations that have negative consequences on welfare. This fact explains many recent political developments in Moldova.
So far, the rapid price rise is the highest danger for stability. The recent rise of gas prices confirms the concerns that citizens raised in surveys. There are many factors that influence the dynamic rise of prices, but the most important rests with the chain effect challenged by higher prices of natural gas. Other factors that threaten the stability have a political nature and are linked to Moldova’s relations with the Russian Federation. Of course, consequences of the Russian embargo on Moldovan agro-food products and wines will manifest in continuation, though the interdictions are considered to be verbally withdrawn. Intentions of speculation of destabilising factors were very clear in the first half of 2005, when the Moscow-based organisation Patria-Moldova, which claims to represent the interests of all Moldovans working abroad, supported by Transnistrian circles, tried to provoke an acute crisis in Moldova, speculating in mass media the imminence of a financial collapse and calling upon citizens to urgently withdraw their savings from banks.
Given these circumstances and the forthcoming general local elections, Moldovan authorities have taken a series of actions to maintain the social-economic and political equilibrium in country:
The "active" opposition has criticised the accomplishment of the governance and its "allies", attributing the few performances to the favourable internal and external conjuncture. However, the latest most sounding event was not challenged by criticism of the "active" opposition, but by recommendations launched in the mid-January 2007 via Radio Free Europe by U.S. analyst Vladimir Socor, who recommended the maintenance of the "strategic partnership between the PCRM and the CDPP as a guarantee of the political stability, with a determinant impact on political alliances before the 2009 parliamentary elections.
(To be continued)
Economy
Moldova will receive a disbursement of 36 million euros as part of the the Economic Recovery Plan

This week, the European Commission approved the disbursement of 36 million euros in grant money for the Republic of Moldova. The announcement was made by Deputy Director-General for Neighbourhood Policy and Enlargement Negotiations at the European Commission, Katarina Mathernova, who paid an official visit to the Republic of Moldova between September 13-15, together with Managing Director for Russia, Eastern Partnership, Central Asia, Regional cooperation and OSCE, at the European External Action Service, Michael Siebert.
The EU officials had meetings with President Maia Sandu, Minister of Foreign Affairs and European Integration, Nicu Popescu, Speaker of Parliament, Igor Grosu, Prime Minister of the country, Natalia Gavrilita, as well as key representatives of Government, international financial institutions and the civil society, according to a press release issued by the Delegation of the European Union to the Republic of Moldova.
Beside such topics as the EU-Moldova relations and prospects, the priorities of the reform agenda of the new Moldovan Government, preparations for the Eastern Partnership Summit at the end of the year and the Transnistrian conflict settlement, the officials also discussed the EU assistance in support of reforms and the Economic Recovery Plan for Moldova, which was announced in June with a total EU support of 600 million euros over the next 3 years.
“The first measures under the Economic Recovery Plan will shortly materialize, with the expected disbursement of 36 million euros in grant money under budget support programmes to support the authorities’ efforts to fight against the consequences of the pandemic. Moldova can count on EU’s assistance on its path to reforms and to recovery, bringing tangible results to citizens,” Katarina Mathernova stated.
The plan is based on assistance provided by the European Union through various bilateral and regional instruments, aiming to mobilize the funds in the form of grants, loans, guarantees and macro-financial assistance.
“The Economic Recovery Plan for the Republic of Moldova involves much more, not just this financial support provided immediately. It must help digital transformation, strengthen infrastructure, energy efficiency, education and support small and medium-sized enterprises,” the EU official also said.
As Prime Minister Natalia Gavrilita informed, “The Economic Recovery Plan and the 5 flagship initiatives for Moldova in the Eastern Partnership will directly contribute to the reform and consolidation of institutions, stimulate long-term socio-economic development, bring direct benefits to citizens, and unleash new economic opportunities through promoting the green agenda and digitization. Small and medium-sized enterprises (SMEs) have been hit hard by the crisis. Promoting and diversifying access to finance and reducing collateral requirements will be essential in supporting economic operators. We are grateful to the EU partners who will launch two programs to support 50 000 independent Moldovan SMEs to adapt to the new conditions.”
President of the Republic of Moldova, Maia Sandu, welcomed the decision of the European Union to disburse about 745 million lei in grant money, as the official page of the President’s Office announced. “EU support comes after a long period of freezing of European assistance, caused by former governments. We managed to relaunch the political dialogue with the European Union and resume financial assistance. The Republic of Moldova is gradually regaining the trust of its strategic partners. This European support is also a signal of encouragement for the new Government team in its commitment to clean up the institutions, fight corruption and launch development programs in the country,” said Maia Sandu.
Photo: unknown
Economy
Romania and Moldova signed a partnership memorandum pledging to cooperate in promoting their wines

The Chamber of Commerce and Industry of Romania (CCIR) and the National Office for Vine and Wine (NOVW) of the Republic of Moldova signed, last week, a memorandum of cooperation on organizing joint promotional activities in the markets of common interest, as the CCIR announced.
China, Japan or the USA are just some of the markets targeted by the Romanian and Moldovan institutions. The memorandum also involves advertising activities for wines from common indigenous varieties, promoting the oeno-tourist region, developing a tourist route in the two states, exchange of experience, study visits, and mutual support in identifying new export opportunities. “We are very confident that this collaboration between our organizations will lead to sustainable economic growth and a higher degree of well-being among Moldovans and Romanians,” claimed Deputy Secretary-General of CCIR, Bogdan Visan.
On the other hand, Director of the NOVW, Cristina Frolov, declared that no open competition with Romania is aimed at the governmental level of the Republic of Moldova. “This request for collaboration is a consequence of the partnership principle. Romania imports 10-12% of the wine it consumes, and we want to take more from this import quota. Every year, the Romanian market grows by approximately 2.8%, as it happened in 2020, and we are interested in taking a maximum share of this percentage of imported wines without entering into direct competition with the Romanian producer,” the Moldovan official said. She also mentioned that Moldova aims at increasing the market share of wine production by at least 50% compared to 2020, and the number of producers present on the Romanian market – by at least 40%.

Source: ccir.ro
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According to the data of the Romanian National Trade Register Office, the total value of Romania-Moldova trade was 1.7 billion euros at the end of last year and over 805 million euros at the end of May 2021. In July 2021, there were 6 522 companies from the Republic of Moldova in Romania, with a total capital value of 45.9 million euros.
The data of Moldova’s National Office of Vine and Wine showed that, in the first 7 months of 2021, the total quantity of bottled wine was about 27 million litres (registering an increase of 10% as compared to the same period last year), with a value of more than one billion lei, which is 32% more than the same period last year. Moldovan wines were awarded 956 medals at 32 international competitions in 2020.
Photo: ccir.ro
Economy
Moldova’s hope to be a top walnut exporter and its main difficulties

The Republic of Moldova has perfect weather conditions for growing walnut trees, that creating a great potential of walnut production and trade, especially on international markets, where the demand is way higher than the product’s supply. National and international experts believe that the country’s walnut production industry is on the verge of important transformations, which could lead to increased yields, quality and competitiveness worldwide.
According to authorities, Moldova exports 34-35 thousand tons of walnuts in shell, which is about 7% of the total export of fruit and 5% of the total export of horticultural products. The export value is assessed as being $120 million, that being 57-60% of the total fruit export value and about 50% of horticultural export value. Most of walnut crops are exported to the EU countries, such as France, Germany, the Netherlands, Romania and Austria. The country’s exports were among the world’s top 10 when it comes to the highest dollar value of the product during 2020.
Viorel Gherciu, Minister of Agriculture and Food Industry, pointed out that the production in the domestic walnut industry has increased by 55% in the last five years, which ranks Moldova among the main producers in the world.
“The biggest opportunity for this industry is that we are in the geographical proximity of the largest walnut import area in the world, which is the European Union, with almost 40% of total imports in the world. We are on the EU border, with privileged relations, with an Association Agreement. We already enjoy a good relationship in working with European importers, they trust our processors. A very close collaboration has been created and this is, in fact, the guarantee for those who invest in the area,” claimed the president of the Walnut Producers Association, Oleg Tirsina.
The data provided by the National Bureau of Statistics show that there are 34.7 thousand hectares of walnut plantations in the country. 20.90 hectares are represented by orchards. 75% of planted orchards are formed of old varieties trees. 30-35% of the exported production comes from orchards, the rest comes from individual farmers and plantations along the roads. This means that the quality of walnut production is not at its maximum potential. Developing commercial plantations through orchards modernization and extension of walnut varieties would provide double yield and better quality, experts say.
Governmental support in the form of subsidizing solutions, foreign investments and credit options are indispensable for the industry development. One of the financing options is the credit line of the European Investment Bank Project. Since 2016, 15 producers and processors of nuts, almonds and hazelnuts have benefited from these loans with the total amount of investments worth 8.7 million euros. A further extension of the project would provide another 60 million euros for the modernization of the horticultural sector in general and for harvesting organic walnuts in particular.
Photo: heymoldova.com