Moldova, Republic of
Climate change adaptation and mitigation
Future prospects
The previous chapters show that while the Republic of Moldova has taken impressive steps to set the economy towards sustained growth, the challenges remain significant. The economy still suffers from structural weaknesses, which find their strongest expression in the country’s persistent reliance on remittances from abroad for income generation. Enterprises on both banks of the river are held back by weak technological capabilities, evidenced by the country’s narrow export mix, consisting mainly of agricultural products and wearing apparel, with Romania and the Russian Federation constituting the main target markets.
Acknowledgments
This study is the sixth in a series of national assessments of regulatory and procedural barriers to trade in the UNECE region. It was prepared by Ms. Hana Daoudi under the guidance of Mr. Mika Vepsäläinen.
Foreword
A small landlocked country, the Republic of Moldova remains one of the poorest countries in South East Europe, with the economy showing continued dependence on low value-added manufacturing and agriculture along with remittances from workers abroad for income generation. The country is yet to reap the benefits of the intensive reform efforts, which have been consistently geared towards consolidating a market-based economy driven by trade and investment.
Introduction
Situated between Ukraine and Romania, the Republic of Moldova is a small landlocked country with deep-seated structural weaknesses, which manifest themselves in the lack of economic diversification and continued reliance on low value-added manufacturing activities and agriculture for income generation along with remittances from workers abroad. It is one of the poorest countries in South East Europe, held back by a frozen conflict that has been accentuating its landlocked-ness and creating economic disincentives.
Conclusion and recommendations
This study identified regulatory and procedural barriers to trade in the Republic of Moldova using the UNECE’s evaluation methodology. It showed that while much has been done to improve facilitate trade conditions and SQAM systems, enterprises remain held back by cumbersome documentary requirements and administrative procedures. The interviewed traders and representatives of market support institutions singled out a number of difficult to obtain documents and reported experiencing delays during customs clearance.
The region of Transnistria
The region of Transnistria is highly dependent on trade for income generation. However, trade in the region is characterized by a strong import bias, given the economy’s weak and undiversified productive base. The lack of adequate transport infrastructure pose yet another set of debilitating factors, which coupled with the lack of political stability render it extremely difficult for the majority of the enterprises to achieve economies of scale and scope.