World Bank's country manager says lasting progress needs re-balancing of model of growth for Moldova

Chisinau, 14 March /MOLDPRES/ - A lasting progress needs a re-balancing of the model of growth for Moldova, as the impact of the remittances and transfers decreases. The model of growth is going to be based more on the development of the private sector and creation of jobs, World Bank’s Country Manager for Moldova Alex Kremer has said at consultations on the framework of partnership with the country.    

The reduction of poverty, recorded in the last years, took place as a result of the increase in pensions, social payments and remittances. “These are not lasting sources,” the WB manager said. According to Kremer, it is a surprise that Moldova had the biggest growth in the region till 2014; yet, it was volatile and was prompted by the increase in remittances and the agricultural production.   

The official said that corruption and political instability had discouraged the creation of jobs. In the context, Alex Kremer said that, while in 2009, about ten percent of the companies had said that corruption was a problem, in 2013, their number increased to 23 per cent. “The lack of highly qualified labour force is also an acute problem,” the World Bank’s country manager for Moldova said, adding that this discourages the investments. He noted that Moldova is a country “facing the lowest qualification of the labour force.” The population is not prepared for a modern labour market, Kremer also said.  

The WB country manager referred to six priorities in the context of creation of jobs, in order to achieve the final objective of reducing the poverty, first of all, consolidation of the rule of law state and making institutions more responsible, improving the efficiency and fairness of the process of providing services, etc.

Moldova got out of a big crisis, which lasted beginning with October 2014 till November 2016, during which more governments were changed, and entered a zone of stability and recovery, Alex Kremer said. According to him, there is an uncertainty as to the direction of the reforms after 2018; hence, the framework of partnership comprises the years 2017-2018.  

(Reporter V. Bercu, editor A. Raileanu)