The funds available to local public authorities are limited. Some of these funds are allocated from the State Budget, another comes from taxes and fees paid by taxpayers, but they are totally insufficient to finance expensive infrastructure development programs or to implement projects with a social impact. However, these investment projects are overturned because of criminal cases filed on behalf of mayors, explained IDIS Viitorul expert, Viorel Pîrvan, in the show "15 minutes of economic realism".
Due to the political struggles at the central level, the representatives of the local public administrations often find it difficult to access the financial resources destined for capital investments (capital repairs, water, sewage, thermal insulation of public buildings) from the Regional Development Fund, the Ecological Fund, the Energy Efficiency Fund, to be influenced by the political factor.
"In recent years, in the public space, it is often discussed that local elected representatives change their political affiliation in order to benefit from financial resources for the local community. However, the worst is the situation when local elected representatives are determined through criminal or contraventional files to migrate from one political party to another, "believes Viorel Pîrvan.
According to a study conducted by IDIS Viitorul with CALM quoted by Viorel Pîrvan at the stage of criminal investigation, there is a large number of criminal cases started on abuse, negligence and excess power of the representatives of local public administrations, but only a small part of them they come to be examined in the courts. Between 2015 and 2018, 192 such criminal cases were filed, representing 55% of all the cases examined by the NCA in 2015-2018 with respect to the LPA representatives. Out of these 192 criminal cases, about 9% were and are being examined in the courts, and most of the criminal cases have been suspended or terminated or refused to initiate the criminal prosecution.
In conclusion, Viorel Pîrvan said that in the completed contravention files, 94% of the solutions constituted the cessation of the contravention process, most often the courts have terminated the contravention procedure on the grounds that the limitation period of the contravention (62%) expired. Note that most of the cases of minor offenses have been completed (in substance and appeal) within 8 months (4), and 50% of the cases were examined from 1 to 5 months.
The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
After the suspension of EU macro-financial assistance, a bad news comes from the International Monetary Fund. The IMF evaluation mission, due to come on September 20, will arrive in Chisinau only in the first half of 2019. Thus, the next installment from the Fund, which Chisinau counted for this year, could come in June-July 2019 , if we consider that after the February 24 parliamentary elections, the Government's training will continue, then the mission's assessment and the bureaucratic procedures of the IMF, which lasts 2-3 months, stated in the show "15 minutes of economic realism" the journalist, Vlad Bercu.
The authorities had to take a serious exam before the International Monetary Fund mission, which was on a visit to Chisinau from September 13 to September 20. So there was no talk of a new IMF tranche. The Fund's experts have been informed about the macroeconomic situation and discussed budgetary policy, monetary policy, and other relevant policies in the context of the existing program supported by the IMF through the ECF (Extended Credit Facility) and EFF (Financing Mechanism extended).
In recent months, the International Monetary Fund has been worried about some government decisions and has announced that it will make further judgments. It is about fiscal stimulus and capital amnesty.
On 26 July, on the very day that Parliament voted amendments to the Fiscal Code and the Law on Voluntary Declaration and Tax Incentives, the IMF Permanent Representative to the Republic of Moldova announced that "the preliminary opinion of the IMF experts is that the legislative package of budgetary and fiscal changes and measures amnesty of capital, recently approved, is not in line with the objectives of the IMF-supported program. The measures adopted will increase the regressive nature of the tax system, reduce the degree of tax compliance and expose the fiscal-fiscal system to significant risks. IMF experts are currently analyzing the implications of the package of measures adopted on the basis of accumulated information. "
"Authorities probably had to respond to why a new tax amnesty was needed after 2007, which has not really excelled by major effects. And even if the voluntary declaration does not refer to dignitaries of different rank or persons involved in the devaluation of the three bankrupt banks (Savings Bank, Social Bank, and Unibank) and that a check is made of the declared volunteer income, however experts will have questions at who will want to have answers. And not just on this issue, "said Vlad Bercu.
Together with the IMF, the World Bank is worried about the recently approved package aimed at boosting tax and capital amnesty. These can undermine the Government's commitment to fighting corruption and could have a negative impact on tax compliance, which will lead to significant tax risks. The package is incompatible with the World Bank Group's policy reform program.
In conclusion, Vlad Bercu, who quotes the head of the IMF mission in Chisinau, said that the authorities need to continue to pursue prudent policies and ensure the progress of reforms over the duration of the program. It is essential that in the pre-electoral period the authorities abstain from unforeseen budget expenditures.
The three-year program of the Moldovan authorities, supported by the IMF, was approved on 7 November 2016. It is funded by a total credit of 129.4 million Special Drawing Rights (SDRs), equivalent to about 187 million US dollars, out of which about 115 million have already been allocated.
The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
At the National Political Council, PDM leader Vlad Plahotniuc said that the Democrats are giving up geopolitical aspects and will become a pro-Moldova party. The tactical-strategic movement, as commented on, also has some economic and political consequences for the Republic of Moldova. It is the opinion expressed by IDIS political analyst "Viitorul" Ion Tăbârţă in the "15 minutes of economic realism" .
Through this announcement, the PDM recognizes two failures. The first is that the relationship with the EU is deficient and the second that the PDM failed to occupy the right wing of the political parties. The PDM leader has not talked about embezzling relations with the EU. But after the announcement of PDM that the party becomes a pro-Moldova party it is understood that it still needs the EU. Currently, the issue with the EU is about the political aspect, but the Republic of Moldova can not abandon the economic relationship with the EU from which it benefits. Almost 70% of all Moldova's exports go to the EU countries.
"From 2009 until 2014, the Republic of Moldova has moved very well on the EU direction. In fact, at that time, they laid the foundations for the Association Agreement. This is the liberalized visa regime and the Free Trade Agreement. Subsequently, after the political crisis caused by the tragic incident in the "Princely Forest", relations with the EU began to deteriorate. The problems became worse after 2015 when the embezzlement of funds made by politicians surfaced. After the 2016 improvement in 2017, after the ruling party and the Party of Socialists changed the electoral system, Moldova's relationship with the EU again began to be problematic, with some political preconditions for macro-financial assistance being discussed. After all, the money has not yet come, and now, we are witnessing a fury from the ruling party on the EU, accusing the European Union of failing reforms in the Republic of Moldova, "Ion Tăbârţă.
The political analyst argues that the PDM no longer tends to occupy the right wing spectrum of the Moldovan electorate. It is obviously a movement with an electoral tinge, and the party returns to those centrist origins. In fact, the party wants to cling to everything that's possible and will come up with powerful social messages, which is noticed. Through this move, the PDM is preparing the ground for certain post-election coalitions with PSRM, but especially with the Shroud Party, which will become a kind of "Joker" for the future political cycle. At the moment, this party has an important role in harassing the opposition, and later in some post-electoral calculations that will be made after the parliamentary elections. It is obvious that the PDM will not give up completely the pro-European electoral segments, as well, trying to weaken the extra-parliamentary opposition pro-European parties.
The Association Agreement is vital for Moldova's economy. Even the socialists, if absurdly come to power, will not give up the deal. Any party that will come to power will depend on the EU, given that the trade of the Republic of Moldova can not exist without the Community market. And the complications of the relationship with the EU will lead to far more serious consequences than the embargoes imposed by the Russian Federation since 2013.
In conclusion, Ion Tăbârţă mentioned that the ruling party around the electoral campaign tells us that Moldova's political relationship is abandoning its relationship with the EU, but economically it needs the DCFTA and the liberalized visa regime. The declaration that the party will modernize the Republic of Moldova is based on relations with the Western partners. Politics is intended to rethink the relationship with the EU, but on the other hand, it will continue to advance on economic relations. Currently, the Republic of Moldova does not have a clear vector of development, but it is heading towards deepening relations with countries from other geographic areas, such as Turkey. The paradox is that while the former PSRM and PDM rhetoric was different in relation to the EU and the Russian Federation, then the relationship with Turkey speaks in unison. In fact, PDM returned to the origins of foreign policy promoted by agrarians in the 1990s when it was said that Moldova could use its geographic location and benefit from both the relationship with the EU and the Russian Federation. After the parliamentary elections in February 2019, the political picture of the Republic of Moldova will become clearer. We will know if it will have a reset of relations with the EU or we will go to vector isolation announced by the current ruling party.
The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
Decentralization and administrative-territorial reform are two of the most important issues that need to be resolved in order to relaunch the economic and social development of the Republic of Moldova, Viorel Chivriga, Program Director of IDIS Viitorul, stated within the program "15 minutes of economic realism" has approached these subjects also at the Economic Forum in Krynica, Poland.
Decentralization and administrative-territorial reform are important issues on the agenda of the Republic of Moldova. "It is not normal for a small state such as the Republic of Moldova to have an impressive number of municipalities, while the population is declining," Chivriga said.
The program director also talked about the successes of the Republic of Moldova that he registered following the implementation of the Free Trade Agreement. The Free Trade Agreement helped the Republic of Moldova to get rid of a number of problems it had with some states in foreign trade. For example, in 2018, statistical data show a 69% share of exports in EU countries while in CIS of only 16%. Only deliveries of goods in hurts to three European countries, such as Romania, Italy, and Germany, exceed exports to the CIS almost 3 times.
"The increase in foreign trade in the three signatory states of the Association Agreements with the EU, Ukraine The Republic of Moldova and Georgia has also led to an increase in export quality and major changes in geographical destinations. We are also talking about the changes that have taken place in the regions, but also the role of the governmental and local institutions, "Viorel Chivriga believes.
At the same time, there are reforms that are not visible but of great importance. We are talking about reforming state institutions and qualitative changes in the SME field where there is a significant increase in the number of exporting companies. There are changes regarding the harmonization of the legal framework, but also the increase of the technical equipment companies' capacities. The evolution of export tariff headings is also visible, which highlights the good changes in the regions and the quality of the production sectors: agriculture and industry.
In conclusion, Viorel Chivriga mentioned that a growing interest of some regional companies for the Republic of Moldova has started to appear lately. This is happening in Comrat, Orhei, but also in other cities. And to attract even more interest to foreign companies in Chisinau will be organized annually an investment forum with the participation of international companies. They will come with expertise and innovation.
The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
Lending to the economy continues to be in recession, even if interest rates on loans are very low. The balance of credits to the economy at the end of June 2018 was lower than the level recorded at the end of June 2017 by 2.8%, amounting to 37.5 billion lei. Banks prefer to keep money in the CBN or place them in the SS. It is the opinion expressed by the journalist Victor Ursu in the framework of the show "15 minutes of economic realism".
Thus, the balance of credits in foreign currency decreased by 4.4% (an important factor is the appreciation of the national currency, which influences their value recalculated in lei), while those in national currency decreased by 1.7%. Another reason that explains the decrease in the balance of credits is the reluctance on the part of banks to provide loans, given the high reserve requirements and their profitability. However, the deceleration in the balance of credits is slowing.
According to the latest NBM data, the largest share - 27% - is in the credits for trade, then 14% were destined for consumption, 9.3% - loans for the purchase/construction of the building, 8.7% - credits to the food industry, etc. Within these loans, the most pronounced increase was recorded for loans granted for the purchase/construction of real estate, the volume of which increased by 16.5% (MDL 434 million) from the beginning of the year, which is explained, March 26, 2018, of the "First House" project.
Foreign currency loans, expressed in USD, grew by 4.5% in the second quarter of 2018. The balance of ROL loans decreased by 2.0% during the second quarter of 2018. At the same time, we can already talk about a positive trend in lending, which was marked by the increase in the volume of new credits granted during the year. II.
Starting with 2016, interest pressures have moderated, but economic and consumer access to funding is still difficult. Banks have become more cautious in lending on the backdrop of tightening banking legislation.
In June 2018, the volume of new credits in national currency was higher by 11.8% compared to June 2017. Similarly, the volume of new loans in foreign currency was 13% higher.
At the same time, excessive liquidity in the banking system creates a potential risk of financial instability in the national economy. Given the low demand for loans from economic agents and unfavorable circumstances (the share of nonperforming loans accounted for 14.7% in June 2018), banks' reluctance to accept the high level of risk accompanying lending operations will increase. This increases banks' demand for financial operations with a low level of risk and sufficient profitability, such as placements in the SS and CBN, immediately with the increase in excess liquidity.
In conclusion, Victor Ursu said that a revival in business lending will result from a qualitative economic growth. What we currently have is just stimulating trade mainly imports.
The show is made in partnership with Radio Free Europe
For two years and seven months, the Moldovan leu continues to appreciate the euro and dollar reference currencies. Leo from January to February 2016 appreciated 23% against the dollar and 15% against the euro. We will witness a slight depreciation of the national currency, but we will enter with a stable leu in the elections, IDIS "Viitorul" economist, Veaceslav Ionita, in the show "15 minutes of economic realism".
The Moldovan Leu appreciated for two and a half years compared to all currencies, while in 2014, 2015 and 2016 it depreciated and recorded new records. The leu course goes on the carousel, it depreciates, it is appreciated, which does not make good the economy of the country and the population.
"We are currently witnessing the appreciation of the leg, which lasted in August. But in the penultimate week of the month, the national currency depreciated by 1.4% - the most this year against the currency basket (eurodollar). In the first three weeks, the leu strengthened, and in the last week it has depreciated and reached its level at the beginning of the month. This confirms one of the hypotheses that the process begins, around the electoral campaign, when the demand for currency from the economic agents is growing. This reduces pressure. Currently, the currency offer is higher than demand, "says Ionita.
The Moldovan lion has gone through several stages. In 2014 there was a stabilization stage when supply and demand were at the same level until then the supply was higher. Then the crisis in the banking system followed when the supply of foreign currency fell, and the demand remained found, which led to a deficit of USD 800 million and the depreciation of the national currency. The equilibrium point was reached in 2016 when demand and supply became relatively stable. Another stage began in 2018 when it started to increase the offer by more than 700 million USD, a surplus of supply of currency versus demand, which led to the appreciation of the national currency. In March the market peaked - the difference between supply and demand was USD 370 million.
"It is currently observed that the supply of currency by citizens continues to grow, but quite slowly. If nothing happens, the net bid of 2018 will be $ 2.1 billion. But the offer is rising, but it has slowed since March. Against the backdrop of a stable offer, we witness an interesting phenomenon - the accelerated growth of the demand for currency by economic agents. If in March the annual demand for currency was $ 1.6 billion, today's annual demand has reached $ 1.8 billion, and in the third quarter it will most likely be $ 2 billion, "he said Ionita.
As a rule, in August the currency offer by the population is 40% higher than the rest of the months. This excessive supply of currency led to the appreciation of the leu in the first three weeks of the month, and in the fourth week, we most likely witnessed the strong rise in demand for currency, which led to a depreciation of the leu.
Increasing the demand for currency from economic agents on the background of a stable offer from the population will reduce the pressure on the foreign exchange market, as a consequence decreases the likelihood of strengthening the leu against USD and EURO. It may be that by the end of the year the demand for currency will exceed the offer and will lead to a slight depreciation of the leu. It's easy because the NBM will not allow a big depreciation around the election. Apparently has all the tools. Forex reserves are close to $ 3 billion - the record they have never touched. NBM has exhausted its foreign exchange reserves twice. For the first time in 2008-2009 as a result of the regional currency crisis and in the wake of the parliamentary elections, the NBM did not allow depreciation, but intervened in the market and eroded its reserves by 700 million USD. The second similar situation was in 2014 following the devaluation of the banking system by one billion USD. At that time, foreign exchange reserves narrowed by $ 1.1 billion.
We are currently witnessing a new currency game when foreign exchange reserves reached nearly three billion dollars. If there are no other shocks that can not be predicted, minor interventions will be needed.
At the same time, the economist Veaceslav Ionita claims that in October the fiscal amnesty effect, which will generate currency in the country, could be noticed. Most likely, the fiscal amnesty will support the foreign exchange market, as the supply of foreign currency by individuals has exhausted growth. We will witness two trials. Some of the economic agents, as a result of the election cycle, prefer to buy foreign currency for various reasons, while others are lured by the fiscal amnesty will bring currency to the country. It is difficult to estimate what flow will be on both sides.
In conclusion, Ioniţa believes that in September we will probably see a slight depreciation of the Moldovan leu, and the NBM will most likely have a slight intervention on the market. After that, if the demand for currency will continue to rise and the expected foreign currency flows will not enter the country, the NBM could intervene to enter the electoral race with a stable leu.
The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
Parliament has adopted three laws on fiscal-fiscal policy and capital amnesty. The package was much commented on in the Moldovan society and caused a number of concerns from development partners. "The law package was expected to be rejected by President Igor Dodon, but on the contrary he promoted the package of laws and came up with a series of pro-comments to support these laws", notes the political analyst Ion Tăbârţă in the show " 15 minutes of economic realism ".
A similar package of laws was adopted in 2007 during the Communist government, which was then said to lead you to economic stimulation and open up new jobs. Later, it was recognized that the package of laws did not have the expected effect, but on the contrary, it was not excluded that a small group of interests lay behind the package of laws. Some experts link the "laundromat" to that set of laws adopted in 2007, the beginning of which was the so-called "Reidman note" on "nomadic money" in 2005. In the document elaborated by the former economic counselor of President Voronin talks about the money that is not clear and circulating through banks. After 2009, the package of laws that made possible the "laundry" was approved for the needs and interests of the economic groups under the Moldovan politics.
"In 2014, besides the" laundromat ", the banking system was devalued by about one billion USD. This money is preserved somewhere and awaits its destination. In 2016, the Filip government managed to stabilize the country's economic situation and managed to conclude an agreement with the IMF. However, immediately after the agreement was signed in early December 2016, a package of laws similar to the one in 2007 appeared and resembles the package recently adopted by the Moldovan Parliament. At that time, the package was rejected as a result of the prompt reaction of civil society and the negative attitude of the development partners. In fact, based on several estimates, that package of laws was to transform the Republic of Moldova into a regional washroom, as well as frustrating the Krol investigation and discouraging the business environment, "says Ion Tăbârţă.
This package of laws, in connection with the law on granting citizenship for investment, in the opinion of many, reconfigures the picture by which the Republic of Moldova risks becoming a regional laundry "dirty money" and the stolen billion to be legalized in the country by the same persons who stole him. President Dodon, instead of stopping, adopted the three laws and filled the government's arguments in the public space in adopting the package of laws on fiscal-fiscal policy and capital amnesty. Generalized, the president's arguments claim that the government's actions are packed, obviously, in a pro-Western manifesto.
In conclusion, Ion Tăbârţă says the consequences of the package of laws on fiscal-fiscal policy and capital amnesty are uncertain for Moldova. For now, the adoption of the three laws has led to the deterioration of the Republic of Moldova's relations with the development partners. Normalizing these relationships will require that the package of laws be canceled, his fate is dependent on the future power configuration. A new pro-European government at the helm of the Republic of Moldova, in order to normalize its relations with development partners, will have to give up these laws.
After the elections in February 2019, a pro-European government, as it has been since 2009, seems impossible because the current pro-European opposition in the Republic of Moldova is intransigent with the governing party. Most likely, although nobody is talking about this at the moment, there is a geopolitical balance between PDM and PSRM, a center-left government. It is premature to talk about certain post-electoral scenarios, the data of the promise being much more complex than they seem "at first glance", but the package of laws can be "a cornerstone" that can help shape the future coalition of governance in the Republic of Moldova.
The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
The potential of women in the Republic of Moldova is very important for society, but it is not exploited at fair value. For society to become sustainable and prosperous, women need support, encouragement and information to be equally involved with men in the decision-making process and in solving community problems. These are some of the conclusions of the round table "Women in the sustainable development of the communities of the Republic of Moldova", held on August 16, by IDIS "Viitorul".
"The situation of women in the Republic of Moldova is unfavorable for sustainable development of society. Women represent a greater number than men, but they are less represented at the legislative and executive levels. However, the introduction of the double quota in the Electoral Code demonstrates that at central level the suggestions coming from the province are taken into account. Also, we have at the local level many positive models initiated by women that sometimes exceed the results obtained by men, which our institute promotes", said the director of IDIS "Viitorul", Liubomir Chiriac.
In turn, Rasa Ožiūnaitė, Secretary III at the Embassy of the Republic of Lithuania in the Republic of Moldova stated: "It is not a new topic that there is a gender gap in society or that there is that glass ceiling that women have to overcome. And because it all starts in the family I encourage you to educate our sons respecting their women and their rights, to educate them to become partners and not lead by the expression that the place of the woman is at stake".
The panel discussions addressed topics related to the involvement of women in the socio-economic development of communities in the Republic of Moldova, current local policies that support women's involvement, as well as solutions to existing challenges. The event aimed to increase the degree of involvement of women in the social-economic life of the communities of the Republic of Moldova by raising awareness of the role of women in the sustainable local and regional development of the country.
Thus, the participants at the roundtable spoke about the opportunities, but also the constraints of the Moldovan women, and proposed a series of policy recommendations for a sustainable society.
“The women of Moldova are smart women, ingenious women with indescribable creativity. The potential of women in the Republic of Moldova is very important, but it is not exploited at fair value. And whatever does not happen in the family, in the locality or in the country, the woman gets involved. That is why we need to provide support and information to women who want to get hired, remove them from the comfort zone, guide them to be active on all levels. Only then will we all win”, says Iulia Costin, Secretary-General of the State at the Ministry of Economy and Infrastructure and President of the National Platform for Women in Moldova. According to her, women entrepreneurs face the fear of failure, the lack of knowledge about managing a business and the impossibility of contracting bank loans accessible for strat-ups. In this sense, Iulia Costin proposes to keep the VAT paid by the economic agents in the field of HORECA at 10% level, elaboration of the Law on the family business, stimulating the startups launched by women or exploiting the female potential through the programs existing support, priority being from rural areas.
And Elena Rațoi, Programme Officer at UN Women in Moldova, stressed the importance of gender equality in community development: “Women are involved locally in solving community problems more than men. Thus, according to data from the 2018 gender barometer, 18% of women attend community meetings compared to 14% men, and 6% of women participate in the development of community projects compared to 4% men. Women are more involved in projects, initiative groups or assemblies, while men are involved in decision-making. In my opinion, there should be equity for both men and women to participate both in decision making and in solving community problems”.
"The polls show that the electorate wants more women in politics, but it does not give them the confidence of change or the possibility of performing in decisive leadership positions. Similarities between women and men are far more important than differences, and men's lives are equally influenced by gender discrimination. Thus, I would like female solidarity, but not for the simple fact that we are women, but taking into account the diversity between us, the common principles and values. We only promote well-trained, competent women, ready to be heard and seen to realize their own potential”, highlights Larisa Voloh, the mayor of the village of Palanca and the president of the CALM Women's Network.
And Valentina Casian, mayor of Strășeni added “A society in which the women's voice is not heard is not less feminine, but less human. In the administration process, I emphasize gender equality and the promotion of women, respecting the principles of transparency”.
In their turn, representatives of civil society stressed the importance of education and local policies in ensuring gender equality that would contribute to the creation of a healthy society.
"Segregation starts in schools and girls who graduate high school are thinking about finding a profession that combines it with their family. One solution would be to introduce an optional course to promote the image of women in society and to study the success stories”, suggests Cristina Cernei, professor at the "Onisifor Ghibu" High School in Chisinau.
"When you want to develop some initiatives at the local level, please involve and encourage mothers who are on childcare leave and these women want to get involved", says Elena Nofit, a communicator at the Center for Information and Documentation on the Rights of the Child.
"We are very interested in some state policies that would change the possibilities of sharing the tasks in the family, such as providing an equal number of days for childcare and appreciation of the father's role in childcare, according to the Swedish model. Let us not forget about the value of the family and the fact that the rights can be realized through partnership”, proposes Andrei Esanu from the federation “Familia”.
According to the National Bureau of Statistics, the female population predominates among the population, with 100 women returning 93 men. Women live longer than men on average 8 years, life expectancy at birth being 77 years for women and 69.4 years for men. Women earn on average 13.5% less than men (86.5% of men's average salary). Expressed in numerical value, the discrepancy constitutes on average about 813 lei. Thus, the average salary in 2017 was for 5,204 lei for women and for men - 6,017 lei.
For more information about the project, contact Ana - Maria Veverița, Communications Officer, by e-mail at ana.veverita@viitorul.org or by telephone (0 22) 221 844.
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The project "Local development through equal involvement" is implemented by IDIS "Viitorul" in partnership with the Embassy of Lithuania in the Republic of Moldova, with the financial support of Lithuanian Development Cooperation and Democracy Promotion Programme. The project aims to support regional development by encouraging women's social and economic activities and integrating gender equality in local communities in the Republic of Moldova.
Although measures are being taken to streamline the procurement process, the issues that business signals are corruption, theft, fraud and petty interests. Public procurement is perceived as the use of incorrect, inefficient and non-transparent public money, costing IDIS Viitorul expert Viorel Pârvan within the 15 minutes of economic realism show.
Tenders won under the lowest price criterion do not always ensure the purchase of the highest quality goods, services, and works. In many cases, procurement managers do not have the necessary knowledge to answer questions or to provide additional information to economic operators.
"The public procurement system in the Republic of Moldova is a bureaucratic one because in order to prepare the offers, the economic operators have to present a series of certificates, many of which the economic operators do not consider important / essential, and in order to get the time is needed. Existing legislation is relatively good, problems appear more when implementing public procurement provisions, "says Viorel Pârvan, who cites the survey data from IDIS Viitorul. "The Perceptions Index of Public Procurement".
As far as the complaints are concerned, the economic agents do not submit them if they have previously worked with the contracting authority. Economic operators do not want to worsen their relationship with authority, with plans for collaboration in mind. At the same time, economic operators assume that they will encounter reluctance on the part of contracting authorities later when they try to participate in other procurement procedures.
In order to improve the public procurement system, the business environment recommends: criminal liability of all decision-makers involved in defrauding public procurement, with the extensive confiscation of assets, increasing the level of competence, training and qualification of civil servants and all parties involved in the process by offering training, workshops, lifting civil servants' salaries to prevent and reduce corruption and, last but not least, reviewing the award criteria by replacing the "lowest price" criterion with the "quality / price" criterion.
The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or 069017396.
IDIS Viitorul has launched for the first time the “Confidence Index in the Public Procurement System of the Republic of Moldova”, within the project "Cutting edge improvements in the public procurement system in Moldova through inclusiveness, creativity and low - abiding practices” funded by the European Union and co-financed by UK aid from the UK Government.
The Confidence Index in the Public Procurement System of the Republic of Moldova aims to bring in a complex and systematic way the perception of citizens and the business community on the national procurement system. The main objective is to foster a better connection between citizens’ and private sector expectations and decision-making process results conducted by public authorities.
The public presentation of the first edition of the Index was attended by the representatives of the National Anti-Corruption Center (CNA), the Court of Accounts, the National Agency for Settlement of Complaints (ANaSC), the Public Procurement Agency, the General Prosecutor's Office, the National Bank, contractors, economic agents and the representatives of civil society.
"Public procurement is an important area of the national economy, accounting for around 10% of GDP. But it is also an area of high corruption risks, as here the public interest meets private interests. Therefore, transparency and automation of the public procurement process are the key factors to ensure its fairness and efficiency. And the involvement of the civil society as an independent monitor and observer is important to ensure that the public interest is respected during the process", said Olga Crivoliubic, Good Governance Fund Projects Officer at the UK Embassy in Chisinau.
Viorel Pirvan, one of the authors of the Index, has noted that during the interviews with the economic operators, the following problems were identified: lack of qualified personnel from the contracting authority, limited of access to information, drawbacks of the awarding documentation, requesting a large number of certificates, lack of genuine competition, modification of some provisions in the tender specifications shortly before the opening of tenders, conflicts of interest, bureaucracy.
Carolina Ungureanu, the coordinator of the project, said that the respondents evaluated the efficiency of the public procurement system in Moldova on a scale from 1 to 5 (where 1 is the lowest rating and 5 - the highest rating). The picture shows that about 61% of respondents give a low and extremely low rating, 24% - average rating and - 15% of respondents give a high and very high rating.
Using the same rating grid, more than half (52%) of respondents consider low and very low the level of transparency and access to procurement data, 38% - granted an average rating (3) and only 10% - a high rating (4).
A worrying fact is that only 14% of respondents grant a high and very high rating to the availability of public procurement monitoring instruments in Moldova and only 5% of respondents give a high rating to the integrity of the procurement system.
Among the recommendations of the respondents are: enhancing transparency through publishing procurement contracts, implementation of electronic procurements that would cover the entire procurement cycle, application of sanctions for each infringement, licensing of public procurement specialists to provide consultancy to authorities and companies, criminal liability of all decision-makers involved in defrauding purchases, with extensive property confiscation.
The participants at the public presentation of the Index agreed during the talks that a concerted involvement of all actors (regulators, contracting authorities, economic agents and civil society) is needed in order to make the Republic of Moldova's public procurement system more efficient. "Although controls are being carried out and violations are detected in certain procurement procedures, they are not held accountable or even if criminal files are opened, then they are classified. In order to streamline public procurement procedures, advocacy campaigns are needed to inform citizens, who are more involved and interested in how public money is spent”, explained Eugenia Rosca, President of Concordia AO.
The Confidence Index in the Public Procurement System of the Republic of Moldova can be viewed here.
For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or 069017396.