Vote Supports Moldova’s Private Enterprise
On July 22, 2006, the Moldovan Parliament unanimously passed new business legislation heralding a new era of open public-private relations in Moldova. The historic law limits unnecessary state regulation of private enterprise, which has hampered Moldova’s progress in its transition to a free market economy since the country gained independence in 1991.
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| Vice Minister Dodon (in dark suit at left) explains the new law to citizens on a live
broadcast of “Buna Seara (Good Evening),” a Moldovan talk show |
USAID has worked closely with the Moldovan government over the past several years to address numerous unwarranted business regulations and laws that were passed by ministries, departments and even semi-independent state agencies in the 1990’s, often without consultation with investors and the business community, which created an adverse environment for investment and seriously threatened the country’s economic development. Due in part to this collaboration, the Moldovan Parliament passed a revolutionary law in 2004, dubbed the “Guillotine Law” to cut ambiguous, repetitive and ineffective business regulations and acts impeding investment and enterprise development. Public-private relationships began to flourish as a result. The private sector joined the government in Working Groups to review business regulations and help drive implementation of the new law. Accordingly, the anti-business culture began to shift, with government opening its doors for the first time to a participatory and catalyzed private sector.
USAID advanced reform further by supporting a technical team at the Ministry of Economy to review proposed business legislation and provide guidance to the public-private Working Group. Televised public debates, radio discussions and seminars were organized to introduce a regulatory impact assessment (RIA) as benchmark for economic governance. Meanwhile, USAID local experts worked with government officials and the business community to develop a new strategy for state powers and prepared legislation outlining a basic and fair standard for which all laws regulating the private sector should meet.
The latest piece of historic legislation, passed in July, establishes the RIA governance standards and ensures that all new business regulations are based on law, ending the practice of government bodies independently issuing unnecessary business restrictions. Additionally, the legislation will continue the legacy of the “Guillotine Law” by setting a timeline for all laws – not just regulations and normative acts – to be reviewed and modified based on the new standards. The legislation also establishes that government decisions are made transparently and restricts the government from conducting abusive state inspections and controls in the private sector. Most importantly, the new law demonstrates Moldova’s progress in its transition toward a free market economy and eventual European integration.
“We want the laws and only the laws, not governmental or ministerial decisions, but laws to clearly trace the limits the public authorities have when regulating business activity,” said Igor Dodon, Vice Minister of Economy and Commerce, during a recent “Buna Seara” talk show broadcast, on Moldovan National TV.
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