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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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Agricultural sector modernizes As it has been for centuries, Agriculture is still the backbone of the
Moldovan economy. For a country where the average monthly income is $40, agriculture is the self-sustaining enterprise for nearly two-thirds of the population. To increase agricultural production, the Ministry of Agriculture is privatizing the nationŐs collective farms. The USAID-funded farm privatization program is the most extensive of its kind in the entire region. Within the next 18 months, 90 percent of the farms will be privatized. By May 1999, 473 collective farms or about half of the farms that have been targeted will be privatized. About one million people are expected to become land owners. Western specialists say that it is clearly the most successful land project ever attempted in the CIS countries. USAID is investing an estimated $20 million over a four year period. Specialists from USAID are banking on the success of the project to serve as an example to other countries in the region. For Moldovan farmers, land privatization represents empowerment. Young farmers have responded especially well to the project because now instead of just tilling the land for the common good, they actually have a direct stake in the land. "For the rural population it is in their blood to own land," says Zosim Bodiu, deputy director of the Privatization and State Property Administration. "The project has solved many problems in the agricultural sector. We are very grateful to the U.S. government and USAID because without their help we couldnŐt do this."
In addition, it exports 60,000 tons. Ironically Moldovan sugar is not exported to Russia where discriminatory practices forbid the sale of anything but sugar derived from cane. Moldovan sugar is also used in subsidiary products like candy and Coca-Cola bottled in Moldova and Romania. Recently, the German company Sud Zucker A.G. has invested in the sugar industry. Meat processing and tobacco are also important commercial products. Bulgari believes that within the next few years agricultural production and the promotion of agricultural goods will double due to the land privatization program and the modernization of equipment. He believes food processing also will gain a greater share of the nation's GDP. |
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Table of Contents (1) Moldova: a 'model of democracy' |
Outside every urban center lie sprawling landscapes of vineyards, orchards and
pastures. Blessed by an ideal climate and a super-fertile black soil seen in only 16 countries,
Moldova supports a wide variety of crops. The country is an important regional producer of such
produce as grapes, plums, apricots cherries and peaches. Its agricultural processing industry
includes wines, sparkling wines, and brandies, canned fruits and vegetables, sugar derived from beet
seeds, candy, poultry, beef and tobacco products. Today, agribusiness represents 70 percent of
Moldova's GDP, 30 percent of which is food processing.
The project should also increase government
revenues due to higher production. Results of the initial phase of the land privatization program
show that private farmers who represent 15 percent of the farming population paid 80 percent of the
taxes from the entire farming industry. For aging land owners dependent on an often unreliable
pensions systems to survive, the land privatization project provides a new life line. Older people
who represent 50 percent of the rural population have the option to lease their newly-owned lands,
providing them with supplementary income. Empowerment is what sets the Moldovan program apart from
other land privatization programs in the region. Moldovan farmers have the same rights as American
farmers to buy, sell, lease or inherit land. In Russia, farmers are only given the option of passing
land to future generations. Agroindbank and Unibank are two of the leading banks involved in the
land privatization process. Their specialially-trained consultants are active working with farmers
to establish credit to purchase new machinery and equipment. "It is heartening to work in an
environment that is so eager to receive our assistance," says Vincent Morabito from the East-West
Management Institute, one of the leading contractors of USAID. "Moldova is the only country in the
former Soviet Union to adopt such an aggressive program." One of the biggest problems in agriculture
is the deterioration of equipment and machinery.
Farmers also have little money to buy fuel,
fertilizers and pesticides. The Ministry hopes that western assistance will help limit the
shortages. "We are hoping to expand credit facilities and attract more foreign investors to help
upgrade our equipment and bring Moldovan agriculture up to European standards. We've seen some
success in this area and we are trying to push through legislative initiatives to help bring our
program up to speed," says Valeriu Bulgari, Minister of Agriculture and Food Processing. The fruit
and vegetable processing industry is one of the strongest subsectors comprised of seven large
companies and 15 medium-sized companies. Processed tomatoes and apples account for 80 percent of the
subsector. Other products include canned goods, dehydrated fruits, baby food, jams and preserves.
One of the strongest selling points of these products is that they are 100 percent natural. Moldova
produces 230,000 tons of sugar from sugar beets annually. This takes care of domestic needs.