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A Special International Report Prepared by The Washington Times Advertising Department Written by: Daniel R. Zim Project Director: Kevin M. Baerson For more information, call The Washington Times International Advertising Department at (202) 636-3035 (202) 635-0103 fax e-mail: natlad@wt.infi.net Copyright © 1999 News World Communications, Inc.

Moldova: a 'model of democracy'
Washington beams over republic's Western values commitment

To the peace-loving citizens of the Republic of Moldova, democracy is worth fighting for-and they did. In 1992, when a sliver of this tiny nation called Transnistria sought to secede and form an independent communist nation, Moldovans took up arms and fought to preserve their new-found democratic society. All indicators are that the seven-month fight was a worthy one. Today, democracy flourishes in Moldova, and the former Soviet republic has become one of the largest recipients of technical assistance from the United States. Aggressive efforts to privatize the agriculture-driven economy have opened Moldova to the West, while political ties now run-deep between Washington and Chisinau, the Moldovan capital. Though its constitution requires that Moldova, sandwiched between Romania and the Ukraine, maintain geopolitical neutrality, the country has joined NATO's Partnership for Peace program, a further testament to its pledge to Western democratic values.

Moldova also supports NATO actions in Kosovo. But with so many larger, former communist nations seeking aid from and ties with Washington, one might wonder why America has taken such a keen interest in an impoverished country roughly the size of Maryland? "Our support stems from the belief that Moldova can succeed," says U.S. Ambassador to Moldova, Rudolf Perina. "Moldova's potential for success could reinforce our policy in other countries in the region. If this small country can succeed, it can act as a model for others." Moldova's economic and democratic reforms have earned glowing praise from World Bank and International Monetary Fund officials, who steadfastly supported the country even during a recent parliamentary fracas that left the country without a prime minister and cabinet for more than a month. These officials echo praise that comes from the highest levels of the United States government. When President Clinton greeted Moldova's new Washington Ambassador, Ceslav Ciobanu, he declared Moldova to be a model of democracy for the entire region. "Moldova's land privatization program and progress promoting democracy and respect for human rights are models for the rest of the countries in the region," Clinton said. Ciobanu says his mission while in Washington is clear: "We hope to build on the close relations between the United States and Moldova and to increase mutual cooperation, including initiating new bilateral programs addressing financial, technical and humanitarian issues."

An Open Society
With a stable democratic society entrenched, and transparent, free-market mechanisms established, what Moldovan needs most now is more recognition. The country still is among the poorest in East Europe, and the transition to a market economy has been painful for the people. But Moldova's commitment to democracy and economic reform has been unwavering, even as the economic crisis in Russia, Moldova's largest trading partner, has hurt the Moldovan economy. The country is wide-open to foreign investment in virtually every sector of the economy, and the government is actively seeking to reorient its trade toward the West. Conversely, with a highly skilled labor force, and strong incentives and protections for foreign investment, Moldova is ideally situated as a gateway for business to Russia and the CIS region. To be sure, Moldova's progress has been recognized by the world's most important trade organizations.

It has obtained observer status at the World Trade Organization, and signed a partnership and cooperation agreement with the European Union. Moldovan officials are actively working to gain full membership in both organizations. Asked what message he would like to send to potential U.S. investors, Moldovan President Petru Lucinschi talks of the need to know. "It would be very good if they would come here and just get to know us," President Lucinschi says. "They can rest assured that our political direction will continue, and our legislative guarantees are firm. Investors will be able to manage their investments in an efficient manner, and they will have a very reasonable return on their investments. I hope they will talk to other Americans who are already working here, because you will hear from them that working conditions are good, and that the investment climate is excellent."

Hopes Of Intervention
While Moldova's top priority is the globalization of its economy, Lucinschi says he welcomes assistance from Washington and NATO in resolving a dispute with Russia regarding troops in Transnistria. The Moldovan government has offered wide-ranging autonomy to the self-declared republic, but Transnistria remains recalcitrant in its determination to remain independent. Transnistria's communist government does not recognize the authority of the Moldovan government over its small territory. Although Moscow does not officially recognize the Transnistrian government, Russia has failed to honor a treaty signed with Moldova in October, 1994, that called for withdrawal of Russian from Transnistria during a three year period. In 1992, Russia sent its troops into Transnistria as a peacekeeping force to end the brief civil war, but the forces still remain. Despite the presence of Russian forces, there has not been a single gunshot fired since the conflict ended seven years ago, and business still flows between Moldova and Transnistria. But Transnistria, sources say, has become a smuggling point for drugs, weapons and illegally produced goods, the latter of which are robbing the Moldovan economy of millions of dollars in revenue.

President Clinton called Transnistria a "threat not only to the peace and prosperity of Moldova, but also to the entire region." The Clinton administation's fiscal year 2000 budget proposes $30 million to pay for the withdrawal of Russian troops from Transnistria. Russia has claimed it has no money for the withdrawal. At the NATO summit, President Lucinschi plans to bring up the Transnistrian issue with U.S. Secretary of State Madeline Albright, in hopes that the United States can help prod Russia into withdrawing its troops. "Unlike the Serbs, we are very flexible in determining the level of autonomy of this region," Lucinschi says. "I would suggest that influential countries-the United States, France, Germany and Ukraine-sit down and make an opinion in this regard, because all of our efforts to involve other countries in this effort haven't generated any real activity."

Table of Contents

(1) Moldova: a 'model of democracy'

(2) Moldovan President promotes stable, open economy

(3) Moldova- at-a-Glance

(4) Entrepreneur Prime Minister hopes to build prosperous Moldova
Economic globalization is Ion Sturza's recipe for success

(5) Moldova - a country in bloom

(6) Chisinau: Sacramento's sister city to the East

(7) Investment opportunities abound
Moldova goes out of its way to attract foreign investment

(8) Moldova's telecom giant seeks privatization

(9) Agricultural sector modernizes

(10) Moldovan tobacco courts investors

(11) Banks: bulwark for tomorrow

(12) How Moldova's banks withstood the Russian crisis

(13) Women leaders in Moldova

(14) A small country with many delights

(15) Why invest in Moldova?

(16) Wine is king