It is important for Moldova to maintain economic relations with both the East and the West – Calin Corjan

Privat investor Calin Corjan believes that Moldova should develop relations both with the East and with the West.

The first persons of Russia, Kazakhstan and Belarus during the official meeting in Astana signed an agreement on establishment of the Eurasian Economic Union – the EAEU, in connection with which many analysts insist on rethinking of economy in Moldova. The new largest public market in the CIS, which represents the EAEU, will cover 170 million people and promises to be the center of economic development.

According to executive director of the Center for Strategic Studies and Reforms Galina Selari, Moldova should consider cooperation with the Eurasian Union.

“We risk losing our traditional economic niches in the eastern market. Russia is the basic market for Moldavian vegetables, fruits and wine products. Tomorrow these niches can be occupied by the partners of the Eurasian Union. To prevent this from happening, Moldova must rethink its economy”, – she said.

She stressed also that cooperation with the EU is less of an interest for Moldova, since the economy of the republic is mostly integrated namely with the CIS countries.

The economist, expert in international business and innovations, privat investor Calin Corjan, on the contrary, believes that Moldova should develop relations both with the East and with the West.

“In my opinion, Moldova must build a competent policy, cooperating with both the EAEU countries and with the EU states. Both markets for the republic are not only interesting, but also important. Moldova should expand its markets for products. Our country has potential. Therefore, it is important to maintain relations with the West and with the East”, – considers Calin Corjan.

 

Economist Calin Corjan: Because of “shadow economy” the state is forced to increase the burden on legal sector

The scales of shadow economy commented the economist Calin Corjan, stating that such a phenomenon cannot but cause concern.

According to data of independent analytical centre “Expert-Grup”, in Moldova for 2013 the share of shadow economy in GDP constituted 28%. This state of affairs will affect negatively the competitiveness of some economic agents, and may also lead to decrease of productivity index in the domain of labour.

Analytical centre affirms that the highest level of informal employment is observed in agricultural sector – 66.4%, in construction – 12.6%, and also in public sector – 0.1%.

The scales of shadow economy commented the economist Calin Corjan, stating that such a phenomenon cannot but cause concern.

“The shadow economy leads to decrease of state budget revenues. What happens then? The state is forced to increase the burden on legal sector, and this leads to vicious circle: going away to shadow – increase of tax burden – even greater going away in shadow”, – concluded Calin Corjan.

It is important for Moldova to maintain economic relations with both the East and the West – Calin Corjan >>>

Expert-Grup is a think-tank specialized in economic and public policy research. As an independent organization, Expert-Grup reflects the ideals of young intellectuals from Moldova, who set up the institution with the purpose of contributing to the country’s development. We are positioning ourselves as a politically and ideologically neutral think-tank, and we do not represent any economic, corporate and political interests. Expert-Grup was established in 1998 and started the research activity in 2006.

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