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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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Moldova - a country in bloom
Successful businessman, author, Doctor of philosophy, academician and U.S.S.R. emigree, Boris Birshtein was one of the first people to realize the tremendous growth potential in the Republic of Moldova. When Mr. Birshtein first visited Moldova, it was still part of the Soviet Union. Even then, he saw the potential of this small country and invested in it heavily, developing a number of companies within the Republic. One such investment, made in the Jolly Alon Hotel, was at the invitation of the government. Mr. Birshtein invested millions of dollars renovating the Hotel and bringing it up to international standards. When Moldova declared its independence from the Soviet Union in the Fall of 1991, the new government administration insisted that 65% of the ownership of the Hotel pass to Mr. Birshtein. The new government retained a 35% ownership interest. The Jolly Alon is a landmark for a number of reasons - the most important being that it was the first privatization in Moldova after its independence from the Soviet Union. The partnership between the private sector and the government has been a success and is a clear indication of how well the Moldovan Government works with private enterprise. Realizing the need for competitive banking facilities, Mr. Birshtein opened a commercial bank in Moldova. Established in 1994, the Bank Comericiala pe Actuni "Export Import" Bank, one of the leading banks in Moldova, is headquartered in Chisinau, and has two branches in the Republic in Ungheni and Comrat. Recognizing the need for affordable insurance in Moldova, Mr. Birshtein also established EXIM Asint, S.A., which has been engaged in the insurance business in Moldova since 1995. EXIM Asint provides both discretionary and government mandated insurance products to policy holders domiciled in Moldova. The variety and types of coverage provided by EXIM Asint include cargo insurance, comprehensive liability property insurance, premium medical care protection, automobile coverage, travelers medical protection, personal and accident coverage. Mr. Birshtein's investments in Moldova have been an asset to the Republic's economy and provide many jobs for the people of Moldova. The successful development of Mr. Birshtein's investments in the emerging Republic serve as an example for other like minded entrepreneurs to follow. Taking his successful business investments in Moldova one step further, Mr. Birshtein sold his interests in the Jolly Alon, the Export Import Bank and Exim Asint in 1998 to Trimol Group, Inc., a U.S. publicly owned company headquartered in New York City, in which he holds a controlling interest and serves as its Chairman of the Board. Mr. Leonid Talmaci, President of the National Bank of Moldova commented on the sale of Moldovan properties to a US public company, saying "Such a success can only be welcomed. I hope it will foster increased interest in Moldova on the part of American investors." Mr. Birshtein has continued his other investments in Moldova and has established a media network that includes the television station NIT, considered to be one of the leading stations in the Republic, the radio station Delta, Interlic News Agency (www.md/interlic) and a weekly business newspaper. Mr. Birshtein does not only plan to reap financial rewards from his media interests, he sees it as a means to provide people outside the Republic with information concerning this fertile investment climate and encourage others to take advantage of the opportunities in this Republic in a post-Soviet light. Key international outlets for information on Moldova have been established by Mr. Birshtein's media holdings to foster this interest. In addition, Mr. Birshtein encourages the reporting of non-partisan world news and information to the Republic. A successful author, as well as businessman, Mr. Birshteins' book Reform - Problems of the Market Economy Regulations in the C.I.S Countries, was published in 1997 and was warmly received. "Moldova must strongly capitalize on its internal resources and at the same time encourage foreign investment to shore up many of its previously state-run industries," stresses Mr. Birshtein. He believes that foreign investment in Moldova will prove to be beneficial to both the Republic and the investing entity. From his own experience as an academician and a successful businessman, as well as from the experience of his colleagues in the United Nations Academy for Informatics, Mr. Birshtein believes that there is a way to improve Moldova's economy. In his popular book Moldova, Which Has Not Been Discovered Yet, he writes, "It seems to me that under today's circumstances, Moldova cannot rely only on external assistance. It should use its internal reserves, which it still possesses, to their full extent. For instance, strategic state-owned industries, such as the energy and telecommunications sectors which constitute the vitally important arteries of the country's economic structure, could be offered on world stock exchanges to maximize foreign investment opportunities." Mr. Birshtein emphasizes that this strategy encourages and incentives substantial foreign investment in Moldova, which be believes is important to the future development of the economy. Mr Birshtein contends that by offering industries such as telecommunications and energy to the public via a public market, free enterprise will revolutionize them. In fact, Mr. Birshtein suggests that Moldova do just that. He believes that the funds necessary for the restructuring and rebuilding of the telecommunications and energy industries in Moldova could be raised through a public offering of the capital stock of the now state owned entities. In effect, investors world wide would finance this project and establish a solid foundation which will enable the Republic of Moldova to advance to a successful and profitable 21st Century. This would serve as a model of capitalist efficiency for other newly independent states to follow. Mr. Birshtein understands that the restructuring and rebuilding of these two industries in Moldova would be a massive undertaking, however, he believes that it will have important economic and social implications and will significantly enhance the economy of Moldova. In addition, the successful restructuring and rebuilding of these two industries would assist Moldova in becoming financially self supporting and allow it to rid itself of its enormous financial debt to Russia for energy products and its continuing dependence on Russia and other former Soviet states, for energy. Mr. Birshtein contends that rather than continuing the drain on our world economy through the mounting foreign aid required to assist the collapsing economies of the former Soviet Union nations, the United States and other leading world powers should encourage this type of restructuring. Mr. Birshtein firmly believes that the telecommunications and energy industries can become vital and significant income producing entities for Moldova and that this similar type of restructuring in other former Soviet Union Republics would revitalize the entire region. Mr. Birshtein's views on the Moldovan economy are well respected and he has extensive experience within the Republic. In a publication from the Russian Academy of Natural Sciences we see that, "From 1991 to 1993, Mr. Birshtein was the Moldovan President's Advisor for Economic Reform and also served as the Co-Chairman of the Supreme Economic Council for the President. In 1992 he played a significant role in the termination of the hostilities in Transnistria." He was recently awarded the Silver Stylus Award by the International Information Academy for his treatise entitled The Shadow Economy, which deals with Moldova's economy since its independence from the Soviet Union. Mr. Birshtein contends in The Shadow Economy that the formidable restrictions on business enterprise be lifted to create a more free atmosphere in which to conduct business. He refers to business restrictions that are left over from the Soviet era that made it difficult for hard working people to run a successful business and ultimately forced legitimate business to "go underground" - hence - the shadow economy. In addition to Mr. Birshtein's successful business ventures, his charitable acts are numerous and generous. In this capacity, he has taken Moldova under his wing. He has donated funds to aid refugees in Moldova and has spent additional large sums building homes for victims of natural disasters such as landslides and floods. A program to aid ill children in Moldova has become one of the most important in Mr. Birshtein's charitable activities. He has made organ transplants and heart operations possible for many Moldovan citizens and established cardiac facilities in other countries and transported Moldovan children to such facilities so that they could have the best of medical care. Reflecting on Moldova, Mr. Birshtein says, "When I first visited Moldova, it was still part of the Soviet Union. Since its independence less than a decade ago, I have watched a truly wonderful people transform the country into an independent nation by adopting a series of sweeping reforms including democratic elections, the ratification of a new Constitution and the institution of a Presidency, along with executive and ministry appointments." Mr. Birshtein continued, saying "Moldova has a highly educated, high-tech, low wage work force and a government willing to remove obstacles to encourage foreign investment to make use of the highly desirable work force in the beautiful Republic. I am pleased that I had the foresight to actively participate in the rebuilding of this wonderful Republic and encourage others to do so." |
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Table of Contents (1) Moldova: a 'model of democracy' |
The Republic of
Moldova declared its independence from the Soviet Union in August 1991 and has since then adopted a
series of sweeping economic, political and social reforms, including the establishment of a free
market economy. The United States recognized the independence of Moldova on Christmas Day in 1991
and opened an Embassy in Chisinau, its capital. Less than a decade since it broke its bonds of
communism, Moldova is regarded by the international community to be among the most progressive of
the former Soviet Bloc nations.