Moldova Country Profile

Snapshot of the Moldova Country Profile


Moldova, which is grouped among the poorest countries in Europe, continues to advance towards developing a stronger economy with agriculture and food processing accounting for one-third of the country's GDP. In recent years, the country has had a steady GDP growth and the government has announced that it envisages a 3.5-4% growth in 2009. Although the government has been implementing a number of anti-corruption policies over the past several years, corruption continues to be among the most serious obstacles to the improvement of the business environment in Moldova, as indicated by the US Department of State 2009.

Positive developments in relation to corruption and investment:

  • In order to reduce red tape and the opportunities for corruption to occur, a number of steps have been undertaken. For instance, within business registration a 'one-window' approach has been implemented, which significantly reduces the number of documents and days necessary for business registration.
  • In January 2009, a new Electronic Information System of the Licensing Chamber was established, which seeks to reduce bureaucratic barriers for private companies. Furthermore, a number of government Internet portals have been launched to make regulatory processes more transparent.
  • Foreign investors in Moldova are given investment incentives. For instance, as part of the government's 'economic liberalisation' initiative, Moldova introduced a zero tax on business profit reinvested in a business. The Moldovan Tax Code also provides for several corporate income tax breaks, as well as for exemptions from value added tax for Moldovan exports.

Risks of corruption:

  • Moldova's pervasive corruption in the government's bureaucracy, the weak implementation of laws, and the cumbersome regulatory framework foster a business environment that remains among the most challenging in the region.
  • The judicial system in Moldova remains weak, inefficient, and subject to political interference, and legal recourse does not guarantee citizens and companies an impartial ruling.
  • Despite the passage of relevant anti-corruption legislation and the establishment of a special anti-corruption agency, the Centre for Combating Economic Crimes and Corruption (CCECC), the government continues to lack transparency and accountability and the CCECC often favours the government's interests over corruption investigations.