MEGA - Moldova Economic Growth Analysis № 7 / 2012
MEGA - Moldova Economic Growth Analysis № 7 / 2012

Author(s): Ana Popa, Adrian Lupuşor, Valeriu Prohniţchi
Subject(s): National Economy, Economic policy
Published by: EXPERT-GRUP Centrul Analitic Independent
Summary/Abstract: According to our assessment, the general framework of macroeconomic policies is at the right time to support the economic growth of the Republic of Moldova in the short and medium term. Although some policy instruments used could be debated (for example, how appropriate the budget deficit or exchange rate policy is), we believe that macroeconomic policy has reached an "optimal" balance and that the economic growth process could not be boosted significantly by modifying macroeconomic instruments. Policy discussions should focus primarily on removing structural, institutional, infrastructural and climate constraints to economic growth. We continue to believe that the two most important preconditions for the long-term growth and development of our country are justice and education reforms, both of which are currently negatively influencing the functioning of the Moldovan economy. Only a justice system capable of "doing justice" can ensure the full functioning of economic structures, support the process of their sophistication and, in this way, ensure more sustainable and stronger growth. At the same time, people represent the greatest wealth of a country poor in resources, such as Moldova. The Moldovan economy can function at its maximum potential only if its human resources are a full part of the economic process. Moldova's aspirations to become a competitive and innovative economy cannot be realized if its human capital is continuously eroded through emigration and the deterioration of the quality of education. It is perfectly clear that the educational system does not respond to the needs of the economy and society, the shortage of trained and qualified human capital worsening threateningly in the last decade.

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