Public Private Dialogue – Action Plan

Recommendations for the Improvement of PPD in Moldova

Moldovan business community would emphasize the importance of the ongoing transformative process in the country into full-fledged market economies, which creates both challenges and opportunities. The Business Community wants to work together with the public sector to improve conditions for growth and a more favorable business climate. The business community is directly interested in taking part in the decision-making process, especially at the stage of public consultations on the topic of the normative framework, as well as in any other possibility to take part in it and establish a public-private dialogue.

This process of transformation and implementation of the necessary reforms can be achieved by involving the private sector in the policy making process. The Business support and private sector organisations call upon the political decision makers to consider them as partners for the design and implementation of reform processes, strategies for economic development and regional cooperation.

Background

The PPD in MD improves the flow of information relating to economic policy and builds legitimacy into the policy process. To date, the private sector’s role has received less attention than the public sector’s role in facilitating dialogue. The actions explores the value of private initiative in policymaking and the conditions for successful business participation. Through democratic policy advocacy, the private sector strengthens the dialogue process, improves the representation of economic interests, and creates space for civic engagement in governance.

The private sector can and must become a crucial and trustworthy partner of the Government during the transformational processes launched across the country. This aim is especially topical in connection with the implementation of the EU Association Agreement that envisages the modernization of both public and private institutions. It is very important, in this respect, to build mutual trust through an intensive and open dialogue between all stakeholders.

The public-private partnership solution, namely the cooperation in various forms, between public authorities and businesses, in order to ensure the funding, construction, renovation, management, maintenance of an infrastructure or providing a service, is not a novelty. This is a solution embraced by most EU member states for infrastructure development, construction of schools, hospitals and prisons, but also for social services (especially in partnership with non-governmental organizations) or security services (in partnership with private firms for security and safety).

Having in mind the current economic context and the economic crisis, improving the public-private dialogue represents an essential tool for developing the emerging markets and for finalizing large-scale infrastructure projects, with a great positive impact on the long term.

Legislation on Public Private Dialogue and existing PPD Platforms in Ukraine

In recent years, the Moldovan government has attempted to improve the business climate for SMEs, simplifying legislative and administrative procedures and implementing structural reforms. It adopted a new strategy for SMEs aiming to create clusters of companies and innovation hubs, and providing training and consulting to SMEs.

In 2008 the Parliament approved the law on public private partnership that aims to contribute to private investment attraction for fulfillment of projects of public interest aiming to increase quality and efficiency of services, public works and other activities of public interest and for the purpose of contributing to efficient usage of public assets and public money.

E-government was implemented in Moldova almost a decade ago, but still not all the organizations use it, especially those from rural areas.

The business ombudsman in Moldova is missing, though in 2015 a group of Moldovan investors have submitted a proposal in creation of a business ombudsman office.

In March 2017 was created the Consultative Council for Small and Medium-Sized Enterprises (SMEs). The Consultative Council for Small and Medium-Sized Enterprises is formed on parity principles of 33 members representing state institutions (ministries), local authorities – CLAM, Department of Economy of ATU Gagauzia, RDAs, associative and private sector. The Council was established with the aim of creating a platform for dialogue between employers and government agencies to provide entrepreneurs the opportunity to participate in the improvement of the relevant legislation. The Consultative Council aims to contribute to increase the transparency of public administration decisions, to ensure that employers, non-governmental organizations and entrepreneurs are fully informed about the drafting of legislative acts and government decisions with an impact on the activities of SMEs.

The PPD platforms in Republic of Moldova are The Chamber of Commerce and Industry of Moldova (1) that has the objective to create a favorable business environment and to represent the interests of its members in the system of foreign economic relations of the Republic of Moldova. European Business Association (EBA) - an independent, non-governmental organization set up by 10 founders - one of the biggest investors in the Republic of Moldova, under the auspicious of EU Delegation - aimed at aligning the national economy and business legislation to the EU standards, and promote European values and best business management practices in the Moldovan entrepreneurial Community. The EBA vision is to enable & drive the full establishment of European business practices and values in Moldova wishing to promote and contribute to the harmonization of economy of Moldova and the EU. ODIMM promotes the small business establishment and supports provision for the development of existing enterprises. ODIMM site is also a platform offering the opportunity to discuss, ask questions, present objections and propose suggestions related to the business environment in the Republic of Moldova. Here you can find practical information on programs implemented by ODIMM, financing sources for SMEs, various publications and brochures, as well as the legislative database of the Republic of Moldova. Moldovan Technology Transfer Network (RTTM) is a nongovernmental, non-political and nonprofit organization, which aim is to promote innovation and technology transfer in Moldova, by creating and fostering an effective platform for interaction between main stakeholders and organizations involved in this processes. Setting up a bridge between research and business will lead to the creation of innovative SMEs.

Actions to be taken to Improve PPD:

· Creation/further development of strong Business Associations (Business Membership Organisations)

· Create/Further develop/Support Sectoral association

· Create/Further develop Support Regional associations

· Enhance cooperation between Think Tanks, Academia and Business Association and the creation of valuable knowledge within the Business Associations

· Create a positive image of entrepreneurship, SME and SME Associations

· Support Business Association according to Quality Criteria, Potential and Sustainability

· Create an open discussion/dialogue climate towards Business Associations (SME Associations)

· Establish regular dialogue/consultation channels

· Establish dialogue/consultations channels on all levels of the public sector (village level, Oblast level, national level, ministries, President)

· Implement confidence building measures and activities to enable open dialogue

· Set rules for a quality PPD between Business Associations and the Public sector

· Set rules for quality reforms, their implementation and the monitoring process

· Create a system of Monitoring and Evaluation of these recommended processes, an indexation for benchmarking and a system of public control of technical support programs (funding).

· Guarantee the revision of existing state regulations of economic activities based on the principals of effectiveness, limited intervention and focus on economic growth (smart regulation.

· Improve capacity of private sector to engage in PPD process

· Involve Business Organisations in the Monitoring and Evaluation Process

· Donors and International Financial Institutions should bind financing to the quality of the decision making process (PPD) for projects

· Supporting government to better consult and dialogue with the private sector

· Improving the organisational and advocacy effectiveness of business membership organisations

· Supporting media groups to improve the coverage of business issues

· Supporting the creation of effective and sustainable dialogue platforms

· Build an atmosphere of mutual trust and understanding between public and private sectors, improving social cohesion and civil society

· Improving Legal Framework for NGOs (Moldova has a legal framework aimed to ensure the right of association. The main rules guaranteeing the rights of association are: Constitution of RM, http://www.e-democracy.md/en/legislation/constitution/i/ Civil Code of the Republic of Moldova, approved by Law no. 107/2002, Law no. 837/1996 of 17.05.1996 on Public Associations (LPA) http://www.e-democracy.md/en/legislation/foundations/ Law no. 581/1999 of 30/07/1999 on the foundations http://www.e-democracy.md/en/legislation/foundations/ Law no. 1420/2002 of 31.10.2002 on philanthropy and sponsorship. Law no. 179 /10.07.2008 on Public-Private Partnership)

· Developing an efficient normative base regarding the dialog between the business and the authorities. Currently the Government has a passive position in the consultation process. In this way the process of consulting the business community has to be regulated more strictly, for it not to become a formality

· Correct identification of the priorities of the business, as well as concentrating upon them and on the PR (advocacy) activities related to them

· A more active involvement of the business community in developing tax policies, by expressing suggestions regarding the aim, objectives, way of implementation and expected results

· Including the business representatives in the process of evaluating the impact of laws and policies

· Increasing the expertise capacity of associations in order to improve the efficiency of the expertise of the business community.

· Increasing the involvement of companies in social and community development activities will create a more stable market, access to factors of production under more advantageous conditions and a more efficient public-private dialogue.

· The private sector could ensure a more efficient legislative process, by participating more actively in the dialogue with public authorities.