Bank Doing Business Report (2013) ranked Moldova 78th out of 185
economies. Among the 10 categories analysed by this study, Moldova excels in
getting credit (ranked 13rd). Since 2009, Moldova has made progress
in business environment reform, including approving a new credit bureau law,
establishing its first private credit bureau, and introducing new grounds for
relief from an automatic stay during insolvency and restructuring proceedings.
However, it lags behind in trading across borders. Although the Government
has taken steps to reduce monopolies over exports and imports and simplify
licensing procedures, the business and investment climate is a key determinant
of further development of trade in Moldova. The costs of doing business are a
more pressing issue for exporters than trade policy in the narrow sense
(tariffs, for instance) and price competitiveness/real exchange rate issues. Moldova’s
market economy suffers from a weak institutional framework and thus lacks a
level playing field for market competition. A Bertelsmann Stiftung (2012)
report suggests that the transition period gave certain major economic players
privileged access to political decision-makers and because of the entanglements
between politics and business, the state does not apply the law consistently.
Therefore, improvements in the performance of government agencies serving
trade flows (customs, border controls, certification etc.), regulatory reforms,
and investments into transport, financial and other infrastructure are needed.
|The Business Environment: Doing Business