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.

Moldova - Romania: Controversial Issue Open for Debate

Although I am very well aware that the previous poll is not the ideal way of depicting the public’s opinion on a certain issue, nevertheless the majority of those who voted think that Romania is not interfering into Moldovan internal affairs as the Moldovan government claims.

However, accurate information (which should be the basis for any rational decision and opinion) on this issue is scarce, which fully justifies the “don’t know” option of the poll. Only after doing some research on this issue and watching the last night edition of the PROTV Chisinau program In PROfunzime, did I conclude that, most likely Romania is just trying to help Moldovan citizens gain better access to EU, and is not threatening the country’s sovereignty.

As Vladimir Socor put it, “the dispute has escalated beyond issues of history and national identity, now seemingly revolving around Moldova’s continuation as a state.” The issue, a rather important one, is on the table, and open for debate in which I invite you all to participate.

Is Romania Interfering?

The latest official declaration of the Moldovan government regarding Romania's alleged interference with the country's internal affairs took many people by suprise, including myself. It can be accessed in Romanian here and in English here and here. This poll intends to determine how many people share this official opinion.

Later addition: For those interested in this issue, have a look at this article by Vladimir Socor of Jamestown Foundation, which sheds more light and provides a new perspective.

Moldovan Traditions Celebrated in the US

The Moldovan diaspora in the USA celebrated a traditional Moldovan holiday - Martisor. Martisor is the celebration of beginning of spring, life and love in Moldova. Moldovans give each other red-and-white martisors, and wear them close to their hearts throughout March.

This celebration was organized by the Moldovans' Community in DC, Moldovan Embassy in the US with the support of several companies and organizations established by and/or run by Moldovans such as the Moldova Foundation, Moldova House, BIP Moldova, etc. It included a fashion show by designer Valentina Vidrascu, photography contest, Moldovan traditional food contest and lots of music. Around 200 people, mostly Moldovans from Washington DC, Virginia, Maryland, Delaware, Pennsylvania and New York, attended this event. With Evghenia Berzan's permission, here are some pictures from this event.

It would be nice to hear from people that contributed to the organization of and/or participated in this unique event of the Moldovan diaspora in the US.

Moldovan Organizations: Promoters of Change?

According to the previous poll results, mentality and indifference of Moldovans are the major barriers in the way of the country’s development. Both have to do with the people’s attitude. How can these counter-productive attitudes be changed?

In my view, this change should start and last in institutions and organizations of all types: private, governmental and non-governmental. The reason why organizations are created is to allow people to join their efforts in achievement of a particular mission and objectives. Organizations are more powerful, effective efficient than individuals. Organizations, just like families, but at a different level, represent the foundation of a society. Organizations can tell you a lot about the society that nurtures them.

Do Moldovan organizations provide an appropriate ground for advancing change and reform? According to my own observation, not yet. People still perceive organizations merely as a means for achieving their own personal agendas, which, at the very first impression, does not seem to be a problem. However, to create a sustainable and long-lasting organization, the founders and managers of organizations need to have a vision which can transcend personal gains and interests. Once created, the organization needs to be allowed to develop by achieving successful results, incorporating innovative ideas and bringing about change. Very few organizations in Moldova have a vision powerful enough to attract like-minded people. Actually, I find it difficult to name even a couple. First that come to my mind are private corporations like Voxtel, Moldcell, SunCommunications, but I am not sure about them since I lack an insider’s view. If you can think of such an organization in Moldova, I’d appreciate your input.

Poll: What Hinders Development in Moldova?

Human Capital Development in Moldova: A Chicken and Egg Problem

There is an interesting discussion on Sandu’s blog about the existing differences between the intellectual elite in the US and Moldova. In the US, and by extension, in the Western Europe, the academic and professional elite are open to change, inquisitive, simple and flexible. In Moldova, however the intelegentzia, including university professors and students, is arrogant, narrow-minded, mediocre and unproductive. Initially, I found the family and pre-university education system as being the main factors that can guarantee high quality professionals (technocrats) and academic elite.

However, if you look at this issue from a larger perspective, we can see a more relevant picture. First, Moldova is an underdeveloped country. Many problems that the Moldovan society and economy is currently facing stem from a very low level of human development. In this sense, a nation’s human development is much more than mere financial well-being of its individuals.

Human capital, as input in the production cycle of an economy, is attained through consumption of education services. The better the education services, the more developed the human capital. But human capital is only an input. In order to achieve high quality outputs, you actually need a functioning economy. A rapidly developing economy demands better human capital via a vibrant labor market.

It is easy to see how the quality of the human capital is directly determined by the quality and dynamics of the labor market. In order to ensure development of human capital, there must be a strong motivation for investment into development. People need to perceive a promise of reward for studying hard, exercising critical judgment and being creative and innovative. Without it, peole, being what they are, won't be able to achieve and develop much. In the West, people pay a high price (including in financial and personal effort terms) and demand high quality education because they know it will eventually pay back (both in financial and esteem terms).

In Moldova, however, such motivation does not exist. There is really no promise whatsoever that if you study hard in school or work conscientiously at your workplace, you will be rewarded in any way. The Moldovan employers rarely require candidates to have previously-attained academic or professional achievements. Rewards are distributed in a random and inconsistent manner, which perpetuates all types of insecurity. There are no question asked, no promises made, and no guarantees. People are on their own with their conscience, and we very well know of what human nature, when left unattended, is capable of.