Enabling Environment for Sustainable Enterprises in Moldova

What has been done:

In 2013, the ILO assisted the National Confederation of Employers of the Republic of Moldova (CNPM) to conduct an EESE assessment. The consultations between government and the employers on the results of the assessment led to reforms simplifying the registration and licensing procedures, reducing the number of state inspections and control bodies, improving tax policies and administration, approving a new law on public procurement, making labour law more flexible and developing the legislative framework for dual training and apprenticeship.

As a follow up the ILO has been requested to support a new tripartite assessment of the enabling environment and identify priority areas in which further reforms are needed. The new assessment is based on a desk review of new findings on the business environment in Moldova, interviews with officials from government, employers, and trade unions, and a perception survey among business owners and workers.

The Survey and its sample:

The updated assessment was launched in May 2018, and the survey sample consisted in 400 business owners and 107 workers. Survey respondents were spread across Moldova, with a majority of them in Chisinau Municipality (61%). In terms of sector, the sample focused on the manufacturing industry (37.5% of respondents) and services (23.3%). As for the size of the studied enterprises, the majority were micro (9 employees and less, 64.5% of respondents) or small (10 to 49 employees, 25.5% of respondents).

Results:

Good governance, social dialogue, and education, training and lifelong learning emerged as three key areas of concern. In particular, bribery and corruption were identified as major issues by 87.3% of respondents. Moreover, a majority of those surveyed identified the need for greater access to training, better education, and more support for business development in Moldova. Social dialogue also emerged as a key concern with 40% of enterprises respondents saying that they thought social dialogue was either little efficient or totally inefficient at national, sectoral and territorial levels.

The findings of the EESE assessment were disseminated to representatives from government and social partners and validated during a workshop in September 2019. At this workshop, tripartite participants agreed on priority areas for action and developed an action plan on (i) the enabling legal and regulatory environment; (ii) education, training and lifelong learning, and (iii) social dialogue, for a more enabling environment for sustainable enterprise development in Moldova.