Industrial Parks: Public vs. Private Management

Industrial parks are back in fashion. A draft law on industrial parks was prepared by the Ministry of Economy and Commerce of Moldova. An industrial park is an economic development tool, similar to free economic zones, five of which are already functioning in Moldova. The main difference is that an industrial park is designed to encourage and facilitate manufacturing activities. So far, so good. However, the management of the industrial park – a key function determining whether the park will achieve its objectives – will be carried out by a public entity. The park, endowed with public property and facilities, is to be managed by a state administrator’s office appointed and financed by the central government. The private sector is to be involved exclusively as rent-paying, service-consumers and industrial manufacturing residents.

I wonder what considerations justify this level of public sector involvement in the management of future industrial parks in Moldova? Isn’t it an already well-known fact that private companies are more efficient managers than the public sector? In my view, existence of a state administrator reporting to the central government is an open invitation to corruption and traffic of influence. The role of the Moldovan state in the management of industrial parks should be limited to developing and enforcing clear-cut regulations on industrial park management and operation. The rest should be the job of the private companies, audit companies, media, and, if needed, courts.