By Chris Bryant in Chisinau
Published: May 14 2010 02:41 | Last updated: May 14 2010 02:41
Published: May 14 2010 02:41 | Last updated: May 14 2010 02:41
One year after protesters ransacked Moldova’s parliament, bringing fresh elections that unseated its communist government, Europe’s poorest country is in the midst of profound, yet painful, change.At a space-age newsroom in the leafy capital Chisinau, journalists huddle beneath neon-purple and blue lights preparing reports for one of the country’s new news channels.
Publika TV and its rival Jurnal TV have transformed Moldova’s staid and tightly controlled news media since a new four-party western-leaning coalition called the Alliance for European Integration came to power last September.
When Vlad Filat, prime minister, appeared on Publika last month a viewer asked him how much his suit cost and who had paid for it – once an unthinkable impertinence.
Having committed itself to economic, judicial and media reforms, Moldova’s new government has won strong backing from international donors. In Brussels in March, the European Union, International Monetary Fund, World Bank and individual countries pledged $2.6bn (£1.8bn, €2bn) in grants and loans.
Meanwhile, talks on liberalising visa arrangements and trade are set to move Moldova closer to its goal of one day joining the EU.
“Moldova got a very clear message in Brussels: you are on the right track and we are here to support you,” Melanie Marlett, World Bank country manager for Moldova, said.
But while the government wins plaudits overseas for its structural reforms and efforts to stabilise public finances under a $574m IMF programme, at home its longevity is threatened by political crisis.
The communist opposition has repeatedly blocked attempts to elect a new president . Fresh parliamentary elections are considered almost certain before the end of the year.
The poll could be uncomfortable for the pro-western government because ordinary Moldovans have yet to feel the benefit of reforms and economic recovery.
“Things have improved a bit since they changed the government – there’s more respect for human rights and press freedom,” says a lawyer who took part in last year’s protests, and declined to give his name. “But the economic situation hasn’t changed much – it’s still really difficult for young people.”
Around a quarter of the country’s 4m citizens work overseas and, as a proportion of gross domestic product, the money they send home ranks among the highest in the world.
Last year, these remittances plunged by 30 per cent. Overall, Moldova’s agriculture-dependent economy contracted by 6.5 per cent in real terms, leading to a doubling in unemployment and a rise in poverty.
“I’m aware of the fact that the expectations of the people were very high ... and I understand that many people are unhappy with the speed that we are moving,” Mr Filat told the Financial Times.
Mr Filat, a pragmatic former businessman, lists his priorities as promoting European integration, the rule of law, growth, decentralisation and the conflict in Trans Dnestr, the mainly Russian-speaking north-eastern territory that broke away from Moldova after the fall of the Soviet Union.
In spite of high-profile investments like Publika, bureaucracy, monopolies and widespread corruption continue to act as a barrier on foreign investment.
Investors are also aware that Moldova’s new openness is not set in stone. The communists could regain power later this year.
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