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A Special International Report Prepared byThe Washington Times Advertising Department
Published on April 22, 1999
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Advertisers (1) VictoriaBank
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Entrepreneur Prime Minister hopes to build prosperous Moldova It took just seven years to transform his company into one of the
most profitable companies in Moldova and the largest exporter of concentrated apple juice in
Europe. A globalization strategy is at the core of Sturza's plans for Moldova's economic future. Under this plan Sturza wants to find strategic investors who are part of the global network and who have access to shares of the world market. The presence of global investors could open the door to cooperation and development in other sectors of the economy through the presence of a global network provided by these investors. Sturza believes there is no better place to put this theory into practice than by privatizing the telecommunications and energy sector. "In the utilities sectors there is normal competition with Europe where the continent is undergoing a liberalization process," says Sturza. "Big companies like Deutsch Telecom and Gas de France are seeking new markets and they are looking specifically at Moldova. The market is small, but 25 percent of Russian gas and an enormous capacity of 750 kilowatts of electricity is transported westward through Moldova. There are roads and railways that criss-cross the country. We are positioned in the middle of a Free Economic Zone with Romania on one side, and the CIS countries on the other - a market of 200 million consumers." There are current projects producing electric power at new factories using Russian gas and then exporting to the south of Italy. The Prime Minister hopes to expand this to other countries. Ties to America Increasing contacts with the United States is an integral part of the Prime Minister's globalization goal. His own company, Incon group, has a proven track record of attracting U.S. investment. He was particularly successful at creating an export market in the United States for his brand of concentrated apple juice. The Washington State Association of Apple Producers facilitated the growth of apples for his company. He also opened the Moldovan-American Agricultural Service Center. Symbolically, Sturza personally planted the first of many trees imported from America for the center. Sturza believes it is a critical moment to expand political and economic ties with Washington because relations between the two countries are the best they have been in history. The continuation of political support from the United States is Sturza's highest objective. The United States could be especially important in searching for a solution to the Transnistria problem. With his high energy level, Sturza has similar political style and savvy as such young progressives as Bill Clinton, British Prime Minister Tony Blair and German Chancellor Gerhard Shroeder. He is a self-made man who has reclaimed Moldovan supermarket aisles, which seven years ago were dominated by apple juice imports. Perhaps he is Moldova's greatest champion of reform alive today. Of all living political leaders Sturza is most inspired by Clinton. At a 1996 annual World Bank and IMF Conference attended by both statesmen, the American President echoed Sturza's theme of globalization in the political sphere. The Prime Minister finds Clinton's outward thinking most venerable, particularly his emphasis that instability in various areas of the world can create ripple effects making a negative impact on other countries. In particular, Sturza believes that a positive settlement to the separatist conflict in Kosovo could also have positive impact on Moldova's resolution to its separatist problem. Moldova is now a member of the European Union's partnership and cooperation program. Sturza hopes to integrate Moldova even further into Europe and the international community politically, economically and culturally. He plans to begin a process of adjusting Moldovan legislation to conform with European standards. For a man who had no original political ambitions, Sturza has rapidly achieved political stardom. At age 37, he began his political career during last yearŐs Parliamentary elections and then rose to the position of Deputy Prime Minister. Just one year into his political career he became prime minister. His most recent bid for the job of Prime Minister was almost derailed by political infighting within the parliament. The communists, who represent 39 percent of the parliament, played up the severity of the austerity programs and believed they could increase their chances in gaining new elections by opposing Sturza. The Christian Democratic Popular Front (CDPF), a pro-Romanian party, was lukewarm to Sturza's nomination because it would not gain enough seats in his council of ministers. The first vote on March 6, 1999, seemed like a hairline victory for Sturza. With the CDPF abstaining from the vote he received 51 votes out of 101. The next day the Constitutional Court overturned the vote announcing that it was necessary to obtain 52 votes in order to confirm Sturza. Six days later, in a fateful moment, Sturza finally got the break that he needed. A written confirmation from the prison cell of Ilie Ilascu was the deciding vote to confirm Sturza. Ilascu is a parliamentarian, serving a commuted death sentence in the breakaway region of Transnistria on what Amnesty International believes are falsified charges of murder. During the month-long government crisis the IMF and World Bank temporarily cut off funds to Moldova. Government ministers breathed a sigh of relief that the crisis had finally come to a conclusion. In spite of his problems getting confirmed, Sturza believes that Moldovan democracy is one of the strongest among emerging democracies. "The confirmation crisis was an uncertain time for all of us, but is the price that you have to pay for the democratic process. It is better to have a civil democratic process than a forced one. It is very important to continue our programs with the IMF and other institutions. We'll be forgiven if we don't follow a certain economic project, but not if we don't follow the democratic path," says Sturza. For Sturza, working within Moldova's four-party coalition system represents both a challenge and an opportunity to build a strong democracy. Moldova is the only former Soviet republic to create a coalition government. The Prime Minister believes the level of cooperation and compromise that exists within the Moldovan coalition can serve as an example for other nations. In this respect, his deal-making experience in business can go a long way toward working out compromises in the coalition government. "I would not like to point to our neighbors, but some countries with long democratic traditions haven't achieved the same level of success and cooperation with coalitions. Germany, for example, has problems with its coalition with the resignation of Foreign Minister La Fontaine who was a member of the government party," says Sturza. Moldova's tolerance toward pluralism has earned respect in the international community. This enabled Moldova to become the first regional country to acquire an IMF program. During his first year in office, Sturza plans to proceed at a consistent pace with economic reform. High on his agenda are privatization, reform of the civil, legal and fiscal codes as well as social sector reform. Sturza hopes he will be remembered for having helped transform Moldova into a modern, democratic, European state but often painful economic reforms sometimes can cause undesirable consequences for the politicians who implement them. "Those politicians who took all the hard decisions for the economy during the transition had very short political lives," said Sturza. "It took some years to appreciate what's been achieved. My main task is to insure that the process of democracy is irreversible." |
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Table of Contents (1) Moldova: a 'model of democracy' |
The company, Incon Group, has $70 million annual sales and last month its former president
was sworn in as the country's new prime minister. Now in his new political role, Ion Sturza hopes to
bring the same level of success to his country that he brought to his company. The combination of
his reform-minded activism and business know-how have created a new dynamism in a country assaulted
by the Russian currency crisis. Both U.S. officials and the World Bank have praised Sturza as the
man who can bring self-sustaining growth to the Moldovan economy. Western officials believe that
there are few leaders in Moldova who have the same kind of clout or vision as Sturza. "He does not
look at the Russian currency crisis as a defeat for Moldova. Rather, he is using it as an
opportunity to push through his agenda," says U.S. Ambassador to Moldova Rudolf Perina.. "From his
perspective, the lesson of the Russian currency crisis is that Moldova can't be dependent forever on
Russia for 60 percent of its trade. It is an opportunity to diversify Moldova's trade portfolio."