State Capture in Remission? Reflections on the Moldovan Business Environment
State Capture in Remission? Reflections on the Moldovan Business Environment

Summary/Abstract: State capture is a feature of several post-Soviet states where it undermines socio-economic resilience, weakens state institutions and diminishes the rule of law. Devised by the World Bank and European Bank for Reconstruction and Development (EBRD) in the 1990’s, state capture remains a compelling concept to understand problems associated with democratisation and shifts to the market economy in the region. Moldova became a captured state with a transition distinguished by endemic corruption and frequent backsliding. This article explores the emergence of state capture in Moldova and prospects for its demise. The possibility of Moldova becoming a member of the European Union (EU) has raised the prospect of a remission of state capture. However, evidence gathered from research on Moldova’s business environment suggests that state capture remains potent and continues to have palpably deleterious effects on the country’s socio-economic situation and prospects for the future.

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