Assessing Competitiveness In Moldova's Economy - Economic Growth

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Development Alternatives, Inc. / BIZPRO Moldova Moldova Competitiveness Assessment Toward a Growth Strategy Figure 14: Principal export markets for Moldova's ICT cluster Moldova’s ICT cluster can draw on some strengths in seeking to compete more effectively. Yet the sector is caught in a vicious cycle. The way the sector is operating, or is forced to operate, keeps it from pursuing value-added opportunities. Moreover, the structure of the sector and the nature of the transactions means that skill formation falls behind, and de-skilling occurs. To break that vicious cycle, four major actions are needed: Advance government regulatory reform and raise commitment to the promotion of a truly strategic industry. Create and foster the growth of an industry society or associations to spur innovation, give the sector a voice, and build the foundation for cluster strengthening. Increase quality and credibility throughout the Moldovan ICT cluster. Improve international market access. ACONCLUDING WORD Our assessment of competitiveness in the Moldovan economy clearly shows potential. The performance of selected activities in competitive export markets is testament to the resilience of the country’s entrepreneurs and managers. Moldovan products and services are gaining market share in growing markets, for whatever reason. However, the analysis also underlines the importance of concerted action in key clusters, such as wine, to respond to changing market architectures and leverage the competitive potential of the economy. July 2004 • Draft Page 27
Development Alternatives, Inc. / BIZPRO Moldova Moldova Competitiveness Assessment One theme runs through the analysis of all clusters that have shown promise in the recent past: the business environment imposes additional costs and deters investment. Adhering to policies and administrative practices that retard or reverse economic growth is akin to shooting yourself in the foot. While more initiative is needed among the economic agents within the clusters themselves, a coordinated effort to improve the investment climate can yield significant returns, complementing and augmenting initiatives at the cluster level. July 2004 • Draft Page 28
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Assessing Competitiveness In Moldova's Economy - Economic Growth

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