Chisinau municipality can only develop in a participatory environment, friendly to the business environment and open to the concepts and tools of modern urban planning. Citizens, entrepreneurship and democratically elected administration are the pillars on which local development is based. Creating a platform for strategic development makes sense in the context of adopting a policy of total openness and institutionalized dialogue between all stakeholders - authors, investors, think tanks, banks, private entrepreneurs, international financial institutions, press, technology companies, students and members of the academic body.

On June 20-21, intensively discussed in the framework of the SMART CITIES & MARKETPLACES Conference held in Chisinau under the aegis of Newsweek, with the full support of IDIS, FNTM and AIR, supported by the Green Cities Program (UNDP), Orange, ZEL Bălţi, having as main partner BC "Moldova Agroindbank" SA. The conference organized its debates around two pillars: the first - the promotion of the entrepreneurial ecosystem and business development tools, and the second - the urban development ecosystem illustrated by a series of unique Smart Cities experiences. At the beginning of the conference on June 20, IDIS Viitorul Director Igor Munteanu spoke about the importance of creating transfers of concepts and tools for accelerated change of local government in Chisinau - a kind of "admiral ship" of the local government in RM, using smart solutions and innovative systems made available by the experience of smart cities in Romania and other relevant countries.

Chisinau municipality can rejuvenate its development projects if it succeeds in adapting to the modern urban and post-urban planning concepts, creating interactive formats in relation to the actors of civil society, business, associations of urban professionals, digital technologies, and funds financial stakeholders in innovative projects. Like any complex system, Chisinau needs a continuous effort of engineering and urban planning. Due to its share in the national economy and its metropolitan sphere, Chisinau has an essential role in the adoption and application of urban innovations. During the SMART CITIES & MARKETPLACES conference, the organizers initiated experimentally several panels of presentations and debates on projects in search of funding. An active participation had a group of start-ups associated with the Tekwill Community, but also other sectors (eco-tourism, business consultancy, telecommunications) that supported particularly interesting projects in the areas of mobility, the economy, the environment, governance digital and intelligent housing design.

Mr. Ghenadie Cernei, Director of Electronic Services, Head of Alternative Channel Department of BC "Moldova Agroindbank" SA, mentioned that the bank's task is to contribute to the development of business with the help of the technologies. The efforts made so far by MAIB to develop and implement state-of-the-art technology solutions will continue to be enhanced by providing complex digital services that will help consumers effectively manage their financial resources and time.

For his part, Wineries Purcari's Managing Director, Mr. John Maximciuc, reviewed the success of the Purcari winery, highlighting the way in which it set out to launch itself on the foreign markets and managed to get an entry spectacular on the Romanian capital market. He mentioned that Purcari offered for sale 49% of its shares. "The listing of the Purcari Group on the Stock Exchange records a history sheet, being the first Moldovan company to be publicly listed in Bucharest. It is a legacy of an iconic brand that delighted the wine lovers of 1827 and earned the leadership position in Romania and Moldova by concomitantly with the expansion of the global presence. We remain an active investor. IPO is an opportunity for Horizon Capital to monetize some of this investment to delight our fund investors while maintaining an important stake in the company to take advantage of future growth. "

An active presence was also Mr. Marin Ciobanu, the principal manager of the Free Economic Zone (ZEL Balti), who mentioned his successful experience in attracting substantial investments in the auto industry. In his opinion, "Moldova may be attractive and has some advantages that are very good in the conditions of international competition. State-owned fiscal facilities are a powerful argument for investors to choose ZELs for their investments, but they are not the only and most important tools for making free economic zones attractive. "
Andrei Preşcă, B2B Director, Orange Moldova said at the event that Orange Moldova combines the power of an operator and the expertise of a specialized digital services company to ensure the design, development and successful implementation of Smart Cities projects. He also presented a street lighting project from Hancesti, which helps reduce energy consumption and lower maintenance costs, remote automated management and compatibility and adaptability to existing lighting networks.

Architect Andrei Vatamaniuc presented several Chisinau design projects. He proposed transformation into the pedestrian street of Veronica Micle Street, but also the infrastructure for bicyclists. At the same time, Veaceslaav Caburgan, General Manager, CODIFAN and the Tekwill community wanted to highlight the importance of IT in setting up Chisinau with the involvement of young people and those interested in changing the image of the capital.

The SMART Cities & Marketplaces Conference was launched. More than 200 public and private entities have shown their support for this integrated platform for promoting active entrepreneurship. Urban development and the consolidation of the free and innovative business environment will be the central directions of the forthcoming edition, which will take place in autumn, in an expanded format, with the support of relevant stakeholders in banks, business associations, chambers of commerce, private companies and authorities public, press and think tank interested in accelerating the qualitative changes in the Republic of Moldova. The date on which the SMART CITIES & MARKETPLACES - II Conference will take place will be announced soon on several online sources including https://www.facebook.com/smartcities2018/.

For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or 069017396.

Partener general:

Parteneri:

SE State Center for the Attestation and Approval of Phytosanitary and Fertilizer Products, S.A. Metalferos and SE Fintehinform are the state-owned enterprises in Moldova with the best financial performance. At the opposite pole are I.S Air Moldova and S.A Moldovagaz. This is the conclusion of experts from the Institute for Development and Social Initiatives (IDIS) "Viitorul". The ranking of financial sustainability of state-owned enterprises, available on www.companies.viitorul.org, was presented today, June 26, at a public conference.

For the calculation of the financial sustainability indicator, the financial situation of the 50 largest state-owned enterprises in Moldova in 2015 and 2016 with assets and social capital of more than one million lei was analyzed. State-owned enterprises were assessed on the basis of four criteria: enterprise liquidity, profitability, leverage and performance.

"Transparency standards are fairly modest in the case of state-owned enterprises and often the usual procedures by which private companies validate their results are missing from the majority state-owned companies. I refer here to tenders, the decision-making process based on the profitability of the actions or other procedures. Thus, the portal for monitoring the activity of state-owned enterprises and the discussions we have will help us to identify the existing gaps and to establish the necessary policies to raise the level of transparency for these enterprises”,  stated IDIS Director, Igor Munteanu.

„Our goal is to evaluate financial health and transparency of state-owned enterprises in Moldova because we want them to compete, to be more transparent and have higher financial stability. By competition, they can improve and offer better information to citizens about their activities. We found out that a lot of state-owned companies in Moldova do not publish even basic financial data and this is not good because the public has the right to know about the financial situation of the enterprise and that’s why we hope that in this project to increase the public pressure on the Government and state owned enterprises to publish all necessary documents”, underlined the INEKO director, Peter Golias.

Thus, in terms of financial stability, companies providing administrative services to the population are the best. During SE. The State Center for the Attestation and Approval of Phytosanitary Products excels in profitability, with a score of 9.4 out of 10, S.A. Metalferos is characterized by a high level of liquidity, with a score of 9.8 and sales of over 1 billion lei, and SE. Fintehinform - with a low rate of indebtedness. At the top of the list are companies that supply energy resources and management infrastructure that can be declared bankruptcy in terms of financial stability. They score is less than 3.

"Analyzing the ranking of state-owned enterprises by their financial performance, we see that some have high performance not necessarily because they are good, but because they are protected by law, and other businesses have a lower performance because they are from a sector where regulation is very bad. And then the citizen will have to understand why a state-owned enterprise is in the top most financially sustainable - whether it has a good management, there is performance or we have vicious legislation that protects it from the competition. We have state-owned enterprises that influence the political class and businesses that defend business secrets, but information of public interest must be offered to everyone”, believes the economic policy expert, Veaceslav Ionita.

Although they have the highest assets and significance for the country's development, these state-owned enterprises have the lowest score and poor financial sustainability. This is particularly the case with Air Moldova, Moldovagaz, the State Road Administration or the Railways. Air Moldova, Termoelectrica and S.A. North Western Electric Distribution Networks are also among the companies with the largest losses registered in 2016. Therefore, the main airline managed by the state has recorded losses of 227 million lei in 2016 compared to a profit of 1.1 million lei profit in 2015. Termoelectrica cut its losses by 80% to 72 million lei and the North West Distribution Networks increased their losses by over 15 times to 62 million lei.

The state-owned companies with the highest earnings in 2016 are Moldovagaz - 262 million lei, Moldtelecom - 103 million lei and Metalferos with a profit of 41.3 million lei. Also, only 66% of the analyzed companies presented the financial statements on the web page and only 10% presented the audit report, according to www.companies.viitorul.org.

According to the State Registration Chamber, 1 572 state and municipal enterprises and 4 483 joint stock companies operate in Moldova, where in less than 5% of these companies the state holds a share. The sales revenue of these enterprises accounted for 20% of total sales of economic agents in the country in 2016.

............... .

Top of the most transparent state-owned enterprises in the Republic of Moldova can be found on the open data portal www.companies.viitorul.org.

The event is held within the initiative „Promoting transparency and financial sustainability of regional policies, state – owned enterprises and local authorities in Moldova", implemented by IDIS "Viitorul",  in partnership with the Institute for Economic and Social Reforms in Slovakia (INEKO). The initiative is financially supported by the Official Development Assistance of the Slovak Republic (SlovakAid). It aims to improve the efficiency of the state administration, self-government and civil society in the area of creation and control of regional policies, administration of state-owned enterprises, and monitoring of budgets and information openness of municipalities.

For details, contact Ana – Maria Veverita: ana.veverita@viitorul.org or at phone number (0 22) 221844

Presentations from the conference can be found here: http://viitorul.org/en/content/transparency-state-%E2%80%93-owned-enterprises

The Draft Law amending Law 131 of 03.07.2015 on Public Procurement to be presented on 20.06.2018 in the Government meeting for approval is largely aimed at adjusting Law 131 to the requirements of the new EU legislative framework, Directive 2014/24 / EU of 26 February 2014.

Overall, the proposed changes are in line with good international practice and effectively transpose the recommendations of Directive 24. The project contains a number of improvements, including transparency and avoidance of conflict of interest.

However, we suggest the inclusion of an additional clause, which has been repeatedly suggested by civil society, namely:

Article 43, to be completed with paragraph (3), which provides for the following:

"The public procurement dossier is a public document, and can be provided upon request to any interested person after the procurement procedure has been completed. Restricting access to the public procurement dossier can only take place under the State Secret or Trade Secrecy Law. "

This provision will ensure maximum transparency of public procurement, more than that, it is in full consistency with the launch of Mtender, an electronic procurement platform where all information on procurement procedures will be available to all stakeholders.

Signatories:

Institute for Development and Social Initiatives (IDIS) "Viitorul"

Association for Efficient and Responsible Governance (AGER)

Center for Journalistic Investigations

Community Association "WatchDog.MD"

A.O. "Lex XXI Human Rights Association"

Independent Expert Group Expert Group

Transparency International Moldova

The number of public purchases amounted to 8.6 bilion lei, 14.6% more in 2017 than in the previous year, but IDIS Viitorul economist Diana Enachi stated in the show "15 minutes of economic realism" that although more many public procurement violations and irregularities continue to exist.

Some of the most common violations include non-compliance with terms of the contract, failure to comply with minimum deadlines for submitting bids, failure to comply with deadlines and faulty/discriminatory completion of mandatory requirements in participation notices and non-compliance with publication rules.

"All ministries hold public procurement headings on the website, but they do not contain complete and up-to-date information. Transparency is partially ensured at the planning stage. With the exception of the Ministry of Foreign Affairs, all others published their procurement plans for 2018. At the tender stage the transparency is low, so no ministry has published on the web page all the notices of participation in all procedures in 2018", said Diana Enachi.

Another aspect that speaks at least indirectly about the degree of openness and transparency of ministries is their participation (now voluntary) in the new e-procurement system - MTender. Thus, a single Ministry (Finance) and subordinate authorities use the MTender platform that, although it is only at the stage of the pilot project for small value acquisitions, demonstrates transparency and accountability from public institutions.

The economist argues that individual procurement by each subdivision or subordinate entity in a contracting authority generates increased costs and inefficiency of public spending. More than 90% of the purchased products and services are the same. Another eloquent example, in this case, is the Chisinau City Hall, where each department has the status of contracting authority, it organizes its procurement procedures independently. This generates a large cost of public financial resources, staff involved. By separately purchasing the same products, suppliers who can offer more competitive prices cannot be attracted.

"Public authorities are required by the legal framework to ensure transparency at all stages of the public procurement process, starting with planning and finalizing the execution of contracts and informing the public about the delivery of goods, services or execution of works", concluded Diana Enachi.

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 wage phenomenon in the envelope will always exist, it will not be completely eradicated. There are methods of fighting, but never enough for the world to give up definitively especially in a society like Moldovan, where undeclared work always creates the illusion of gain and benefit, but the consequences are serious. It is the opinion expressed by journalist Vlad Bercu in the show "15 minutes of economic realism".

The latest data from the NBS shows that 7% of the employed population receives the salary in the envelope, while in agriculture 42.0%, trade - 19.3% and industry - 8.6%. Actions are taking place at government, tax, and unions talk about the phenomenon for more than 10 years, but salaries paid in the envelope remain at a high level. It is a scourge that affects not only the economy of the Republic of Moldova but also the developed countries of the EU. An EUobserver survey shows a 3% wage bill in the EU. What is worrying is the magnitude of the phenomenon that in the Republic of Moldova is double to the EU. Blackwork is a disease of the economy where companies earn a moment of pay without paying social contributions (29%).

The effects of black work are felt by the state, deprives the government of incomes and undermines the social protection system, the citizen when retiring, but also because they are not socialized in the absence of a labor contract and the employees are not eligible to access loans. People generally accept black work most often when they do not find a stable job or want an extra income to ensure a decent life.

"The authorities are addressing the issue of" wages in the envelope "in terms of sanctions, fines imposed on economic agents. The last case was with a football team whose players cashed in the envelope. Such an approach can also have an immediate effect in single cases, but can not diminish the scourge in general. Addressing the problem of black labor, in the sense of diminishing it, should be changed", Bercu said.

In conclusion, Vlad Bercu said that the state should analyze the problem and develop policies to encourage businesses to legally pay employees. It is not a solution to reducing social contributions, but there are other financial incentives that would be more effective than punishments. The blackwork phenomenon will not be eradicated, but the issue is to reduce the "wage bill".

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 internationalization of SMEs in the Republic of Moldova is the solution for increasing sales and access to foreign markets. Due to the low level of Foreign Direct Investment (FDI) and the limited links between local companies (mostly SMEs) and international investment corporations in the RM, the integration of SMEs into international value chains is very low. It is the finding made by the economist, Ion Tornea, in the show "15 minutes of economic realism".

The largest micro barriers that prevent foreign investment companies from making more purchases from local firms are the low level of technical training of local firms, the low quality of inputs provided, insufficient local business management capacities, and the inability of local companies to deliver large volumes. At the macro level, the biggest impediments are a complex and burdensome tax system, difficult access to finance, and high compliance costs.

"Current effects of the spread of FDI technologies and practices on local businesses in Moldova are rather modest and do not contribute to technological upgrading and increased the competitiveness of local SMEs. Because the most important investors are part of international value chains and import all or most of their inputs, they have limited links with local companies. In large part, local firms deliver non-productive services to foreign companies investing in Moldova, such as public transport and catering, office equipment, etc. With such a "partnership" model, the propagation effects on SMEs do not materialize", Ion Tornea explained.

A solution identified by other countries, such as Ireland, the Czech Republic, and Serbia, to boost links between foreign investment companies and local SMEs, is the implementation of SME internationalization programs. Benefits are mutually beneficial: local procurement can generate significant savings for foreign companies, while rooting FDI in the local economy by stimulating links with it creates strong retention incentives - foreign companies that have developed supply relationships with local SMEs are less inclined to -and re-locate investments, as often the costs of creating a new network of suppliers are higher than the cost of building a new plant.

In conclusion, Ion Tornea said that effective SME support should be primarily based on a capacity building in SMEs, increasing local supplier standards, encouraging partnerships between local SMEs and transnational corporations, and making corporate information available to local suppliers from different sectors.

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 Republic of Moldova recorded an economic growth of 4.5% in 2017. However, despite the economy's maintaining in the positive territory, our country has not become more attractive to investors. For next year, economic growth is projected at 3.5%, and a massive investment flow is unlikely. It is the opinion expressed by journalist Victor Ursu in the show "15 minutes of economic realism".

The latest data from the NBM show that in 2017, the stock of direct investment assets amounted to USD 252.73 million, up 1.2 percent as compared to the end of 2016. Growth below potential as the Republic of Moldova needs investment massive job creation and exponential growth to generate added value.

"Although the economy returned to growth after the recession caused by the theft of the bill, foreign investors did not seem interested in coming. Under these conditions, there are fears that foreign investment will remain low for an extended period of time", says Victor Usru.

The main economic activities that benefited from foreign direct investment remained financial activities, insurance (26.1%) and manufacturing (25.3% of the direct equity equity equity stock).

"The small volume of foreign investments highlights several problems faced by the Republic of Moldova. It's about poor infrastructure, bureaucracy, corruption, and justice that lags, "Ursu said.

In the geographical distribution of direct investments in the form of equity participation, the majority share of the investors in the EU countries was 80.7%. Investors in CIS countries accounted for 6.3 percent of total accumulated capital.

On the other hand, the Republic of Moldova remains attractive for investors looking for cheap labor, but for the next years, it is necessary to increase the competitiveness of Moldovan products and services in order to cope with international competition.

In conclusion, Victor Ursu said that it is necessary to increase the attractiveness of the Republic of Moldova to foreign investors, as well as to improve the capacity to attract external financing, in the circumstances in which our country is dependent on external capital for financing the budget deficit.

The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.

The economy of the Republic of Moldova is small and most of the time the business is obliged to solve its problems by means of scams to ease its activity. The lack of internal anti-corruption rules in the company prevents the possibility of doing business in other markets where there are high standards of integrity and business ethics. On the other hand, the implementation of anti-corruption programs will bring reputation benefits, which will allow it to expand its business abroad, especially on the European Union market. It is the opinion expressed by IDIS Viitorul expert Viorel Pîrvan within the program "15 minutes of economic realism".

The expert argues that 80.8% of the companies did not elaborate an action program with special anti-corruption rules and procedures, 76.5% of companies do not have procedures to prevent and sanction bribery, 66.1% of economic agents do not have procedures to prevent conflicts of interest, and 72% of companies do not disclose their anti-corruption policies to potential business partners and do not assess whether they have effective anti-corruption programs.

A solution to tackle business corruption is developing the corporate governance code, which is predominantly found in large companies. These can also be applied to small and medium-sized enterprises that can take on the principles of corporate governance. Companies can also develop codes of conduct that are multiple and different and reflect the unique culture of each company. They are based on the same principles: law enforcement and business conduct with integrity.

Viorel Pîrvan says that the advantages of complying with anti-corruption rules for small and medium-sized enterprises are that the country is small and, respectively, "everyone will know you are corrupt. This will prevent you from attracting new business partners from the country, especially large companies, whether foreign-owned or mixed-capital, which already have and are conducting their anti-corruption internal programs and policies".

"Multinational corporations will look for those business partners in the Republic of Moldova that implement compliance programs and anti-corruption policies within the company. Moreover, international organizations grant low interest-rate loans, but they will not lend to corrupt companies. Companies with anti-corruption policies enjoy easy access to cheap money for a long period,", Pîrvan concluded.

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.

There is a major discrepancy between the standard of living in the Moldovan villages and cities, given that in rural areas the population survives in large part from the money received from abroad. They have unequal access to drinking water and spend the most on food. However, visible changes on the economic and social side are attested in Gagauzia, according to Viorel Chivriga, director of programs IDIS Viitorul, within the program "15 minutes of economic realism".

There are some visible changes on the economic and social side that affect the lives of citizens. But the year 2017 was one with some corrections for economic agents and they suffered more from the regions. Instead, there are some improvements in Gagauzia where economic activity has revived.

"Investments were smaller in the regions, but there is a positive trend in Gagauzia and this is due to the positive influence of donors and regional strategic planning. There is an activation of processes that have worked a lot, and this is noticed by foreign capital investments. There are also long-lasting changes in promoting the region, diversifying the economy and strengthening the social sphere. It is an example to be followed by other localities in the country", Chivriga explained.

At present, there is an approximation of living standards in rural and urban areas. This is visible on the part of public services. These are water and sewerage, electrification, sanitation and road rehabilitation. But the problem is to cover the costs of those services through taxes and taxes, which could further erode the fierce incomes of the country's inhabitants.

"Moldovan citizens from rural localities hope for more efficient services and increased quality. For many people, limited access to services has contributed to social exclusion, fewer opportunities and reduced living standards - especially in rural and isolated communities", Chivriga said.

The Program Director draws attention to the poorly developed road network, which limits the economic growth of the villages, and the high cost of shuttle spending is an obstacle to finding alternative jobs in urban areas. At the same time, it is also the low level of education in rural areas. The low level of training of the inhabitants of the villages affects the economic development and the human capital.

In conclusion, Viorel Chivriga said that the acute problem of the Republic of Moldova is aging population and migration. The aging population is more pronounced in the villages, and this puts pressure on the workability to working agricultural lands.

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 Republic of Moldova is considered the country of a single city, as 75% of the country's economic activity is concentrated in Chisinau and Balti. Thus, out of the total turnover of 263 billion lei a year, Chisinau municipality is worth 181 billion lei or about 69%, and Balti municipality - 16 billion lei or just over 6%. It is the observation made by the economist IDIS Viitorul, Veaceslav Ioniţă, within the program "15 minutes of economic realism".

Of the total of 365 thousand employees in the national economy, over 60% or 220 thousand are in the municipality of Chisinau and another 28 thousand or almost 8% in the city of Balti.

The economist argues that the average salary in Chisinau is 50% higher than in the rest of the country. Thus, while in Chisinau people receive an average of 6,000 lei, and in Balti 5,200 lei, the average salary in the rest of the country is only 4,000 lei.

In the case of investments of ROL 19.7 billion, ROL 12.7 billion or about 65% are made in Chisinau, and another 1.2 billion ROL or over 6% in Bălţi.

Speaking about spending, Veaceslav Ionita said that in the environment, residents outside Chisinau and Balti spend one month for a person about 1,900 lei. In Balti municipality, this indicator is 16% higher and represents 2,200 lei, while in Chisinau it is almost 60% higher. "While pensioners outside these two municipalities have a pension of 1,200 lei a month, those in Chisinau receive on average a pension of 1,700 lei or 42% big, and those in Balti have a pension of 1,500 lei or 25% higher than the rest of the citizens ".

At the same time, the branch of construction is the most developed in Chisinau and Balti. Thus, over 80% of all dwellings are put into operation in the two municipalities. In 2017, 7,200 dwellings in Moldova were put into operation, an absolute record, and most of them are built in Chisinau and Balti.

In conclusion, Veaceslav Ionita argues that the density of cars in Chisinau is 50 times higher than the rest of the country. "Of the 573,000 cars owned by Moldovans, 199,000 are registered in Chisinau and 28,000 in Balti. And this is when they hold 102.8 and 24.1 km of roads respectively out of a total of 9385.7 km. "

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.