Xenophon Paper 2 pdf - ICBSS

to new and diversified markets. In 2005, Moldova’s trade turnover with BSEC countries
went up by 27% topping $1,8 billion. Moldova exports to these states mainly wines,
cigarettes and tobacco, textile and sewn garments. To foster cooperation, the Moldovan
Chamber of Commerce and Industry has concluded seventy-seven agreements adapted
to specific fields and sectors. Economic cooperation has made constant progress, but
needs to be further enhanced. Already in 2007, Moldova registered over 50% of its
exports to EU customers but still experiences a foreign trade deficit. Serious external
constraints have hit Moldova, first the 1998 Russian financial crisis followed later by
Russian embargoes on Moldovan wines and agricultural products imposed in the spring
of 2006. As Russia imported almost 80-90% of the wine produced in Moldova, (which
made up about 10% of GDP), the impact of this ‘unfriendly’ policy influenced the budgetary
situation in 2006.
Thus Moldova’s current economic agenda subsequently focused on the diversification
of markets modelling a new economic land shaft for the country’s main economic sector
and attracting effective foreign direct investment (FDI). In 2007, the Black Sea Trade
and Development Bank decided to provide a $12 million loan to Moldova. The loans were
accorded to two commercial banks providing financial support to SMEs, particularly in
estates, services, trade and agriculture. The decision coincided with the organisation
of the Black Sea Business Day and the 9th Annual Meeting of the Bank’s Board of
Governors (17-18 June 2007), and exceeded the whole amount of all loans granted to
Moldova after 1992. Moldova’s Chamber of Commerce and other Moldovan stakeholders
work through various working groups of the BSEC, in particular, in the following fields:
energy, transportation, telecommunications, trade and industry, banking, finance and
insurance, trade practices and commercial legislation, etc.
Since 2004, Moldova participated in the creation of the Black Sea Fibre Optic System
(KAFOS), which interconnects Turkey, Bulgaria, Romania, and Moldova. Practical
solutions for co-financing specific projects, involving the BSEC member states, European
Union programmes as well as international financial institutions (EBRD, EIB, BSTDB, etc.),
private funds and international donors, should be increasingly envisaged. Although
economic reforms are progressing, much remains to be done with structural reform
and sustainable growth, as the benefits of reforms are not yet visible to the population,
while the costs are more felt. Two waves of ‘simplification reforms’ were conducted by
the Moldovan Government (2002-2007) to foster a better business environment.
Education: Moldova actively supports the functioning of the Black Sea Universities
Network. For instance, Moldova chaired the Network in 2004-2006, and with the active
chairmanship of Academician Ion Bostan, Provost of the Technical University of Moldova,
the Network has expanded its academic and research capabilities. The Network selected
30 universities across the Black Sea region as promoters of the Bologna process and
standards in the Black Sea region. It has become the main coordinator for cooperation
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