According to the National Development Strategy Moldova 2020, the Republic of Moldova aims to improve the business environment so that by 2020 the risks and costs associated with each stage of the business life cycle are lower than in countries in the region, which is governed by the principle of free competition. The impact of improving the business environment will be expressed in increased investment, increased exports, increased number of reliable enterprises motivated to implement innovations, able to create attractive jobs, ensure high productivity and competitive export-oriented production, an effect supported by the advancement of the Republic of Moldova in the international rankings Doing Business, Global Competitiveness Index, Economic Freedom Index and Logistics Performance Index, exceeding the average level in the region. Optimising the procedures and time required for an economic agent to start, run and wind down a business by applying innovative approaches to business regulation, such as digitising the public service delivery process, and shifting the focus from inspections to advice, with inspections being carried out on the basis of the perceived risk principle, will significantly improve the business environment while reducing unnecessary administrative costs and thus ensure economic development. In addition to directly stimulating business, investment and foreign trade, the streamlining process, through its innovative approach to public service delivery, will create a significant basis and impetus for innovation and new jobs in the private sector.

Regulatory reform solutions will be effective and sustainable if they are supported by enforcement and implementation mechanisms. To this end, work will be done on involving the private sector more actively in initiating, drafting and reviewing regulations. Other important participants in this process are the courts, which will have to respond promptly and fairly to citizens’ and entrepreneurs’ complaints about violations of their rights by public institutions, in particular as regards the timely issuance of permits, the provision of a transparent system for lodging complaints with all institutions involved in regulating business and foreign trade, the non-involvement of public institutions in entrepreneurial activity if there are no obvious reasons, and the recovery of damages from them within a short period of time.

Competition is a vital factor in boosting the national economy, improving the business environment and making it more attractive for new businesses to start up and grow. In order to ensure efficient and fair competition, the Republic of Moldova aims to develop and implement a national programme in the field of competition and state aid by taking over the best European practices in preventing, repressing and limiting anti-competitive activities of economic agents and public administration authorities.

The creation of new businesses will also be encouraged by spreading entrepreneurial success stories, supporting entrepreneurship, especially among women, who currently make up only 27.5% of entrepreneurs. Existing mechanisms through which small and medium-sized enterprises benefit from training as well as financial and logistical support will be expanded and diversified.

In addition, efforts will focus on developing the capacity of quality infrastructure to facilitate exports and encourage the implementation of advanced technologies in domestic enterprises, including agriculture, so as to ensure security of consumption. Also, the implementation of reforms in health regulation and administration can optimally improve productivity and efficiency in Moldova.

The economic activity of businesses has a direct impact on the environment. At the same time, rigid environmental regulations impose certain compliance costs on doing business. Although from the point of view of sustainable development such costs are justified, there is a risk that business will perceive them as excessive. In this respect, the new regulations will focus on environmental impact assessment, aiming to ensure that the administrative burden is distributed fairly among economic operators, without distorting market mechanisms and creating the conditions for unfair competition.

More broadly, the quality of the business environment affects investment activity and economic development through administrative and compliance costs and risks associated with regulatory opacity and discretionary application of sanctions. Promoting smart regulation and a horizontal approach, with the establishment of interoperable standards in the field, will create conditions for exploiting all business development opportunities.