ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of October 5, 2006 No. 1149

Strategies of development of the industry for the period till 2015

In pursuance of the Order of the Government N 1314 of December 12, 2005. "About accomplishment of the Program of activities of the Government for 2005-2009 "Upgrade of the country - the people welfare" and the measures aimed at providing high-quality economic growth and welfare of the people" the Government DECIDES:

1. Approve the Strategy of development of the industry for the period till 2015 it (is applied).

2. For the period till 2015 to assign monitoring and coordination of implementation process of the Strategy of development of the industry to the Industry ministry and infrastructures.

3. To the ministries, the central administrative authorities and bodies of local public authority involved in implementation of measures, provided in the Strategy of development of the industry for the period till 2015 to inform on the taken measures to the 15th following reporting half-year, the Industry ministry and infrastructures which, in turn, will submit to the Government the report on accomplishment of this resolution.

Approved by the Order of the Government No. 1149 of October 5, 2006

The strategy of development of the industry of the Republic of Moldova for the period till 2015

I. INTRODUCTION

1. The strategy of development of the industry for the period till 2015 (further - Strategy) is the document of strategic planning and determines the basic principles, the purposes and priorities of development of industry, and also the main mechanisms and instruments of its realization providing increase in efficiency and competitiveness of the industrial sector. (Hereunder the industries connected with production and distribution electro-and heat power and also natural gas, are not considered as according to the Qualifier of types of economic activity of the Republic of Moldova (to CRM 007-2000) harmonized with the EUROSTAT system, these types of activity belong not to the industry, and to infrastructure. The problem resolution electro-, warm and gas supply are subject of Strategy of energy security of the Republic of Moldova).

2. This Strategy is developed according to the Order of the Government N 1314 of December 12, 2005 "About accomplishment of the program of activities of the Government for 2005-2009 "Upgrade of the country - people welfare" and the measures aimed at providing high-quality economic growth and growth of welfare of the population".

3. This Strategy is component of social and economic policy of the state and is directed to revival and development of the industrial sector of the republic. Strategy is intended to concretize the main objectives and priorities stated in the Program of activities of the Government for 2005-2009 "Upgrade of the country - people welfare", the Strategy of economic growth and decrease in level of poverty (SERSUB), the National program "Satul Moldovenesc" (2005-2015) and in the Action plan the Republic the Moldovayevropeysky Union.

4. Main goal of this Strategy is forming of the industrial sector of economy, high-technology, knowledge-intensive, effective and competitive on the European standards. With respect thereto Strategy is developed according to the basic principles of the basic document of the European commission "Industrial policy in expanded Europe" (Brussels, on December 11, 2002, COM (2002) 714 final). In case of development of Strategy provisions of the report of the European MANUFUTURE platform (April, 2006) with use "The strategic plan of researches - for providing the future of industrial output in Europe", developed according to tendencies of global industrial revolution which is looked through in the near future were considered.

5. Goal achievement of Strategy assumes need of development and use of the special mechanisms and tools directed on:

ensuring macroeconomic stability and favorable investment climate;

enhancement of personnel potential and increase in efficiency of its use;

development of spirit of entrepreneurship, the loyal competition and stimulation of development of the small and medium companies in the industrial sphere;

implementation of structural reform of the industrial sector;

carrying out active policy in the field of science and innovations;

creation of effective infrastructure of the industrial sector;

implementation of information technologies and technologies of communication;

ensuring environment protection and rational use of natural resources.

6. This document is developed on the basis of the analysis of evolution of the industry of the Republic of Moldova and its current state, and also experience of the countries - new members of the European Union (EU).

7. Strategy is starting point for development of programs of support and development of priority industries.

II. INDUSTRY DEVELOPMENT EVOLUTION

2.1. Policy of industrialization (1960-1989)

8. Creation of the modern industrial sector of the country began in the early sixties the last century and was performed by complete integration of the industry of Moldova into single economic complex of the former USSR. By 80th years process of forming of the structure of the industrial sector based on priority development of industries of conversion of agricultural raw materials, the companies of agricultural mechanical engineering, light industry, and also nauko-and the labor-consuming high-technology companies of the electronic and instrument-making industry executing orders of military industrial complex of the former USSR came to the end.

9. The period from 1960 to 1989 is characterized by lack of independent industrial policy of the republic. The main decisions on the directions of development of the industry of Moldova, and also mechanisms of its realization were accepted by the central party and state bodies of the former USSR. The main form of industrial policy of the Soviet period was the central planning and management which is characterized by direct administration of the companies from state bodies, centralized material logistics and distribution of financial resources, capital investments and finished goods, the state pricing, subsidizing of number of key industries. The main objective of republican bodies consisted in operational management by the industrial sector and in ensuring goal achievement, delivered by the central bodies of the former USSR.

2.2. Forming of fundamentals of market economy (1990-1995)

10. The end of the 80th years was characterized by the deep political, social and economic crisis of world socialist system which led finally to its complete disintegration and disappearance of the single state of USSR. Results of this process were sharp fall of gross domestic product, production volumes of industrial and agricultural output, galloping inflation, emergence of mass unemployment, decrease in the income of the population and growth of level of poverty. These phenomena are characteristic of all countries of the former socialist camp and more of the republics of the former USSR.

11. Declaration of independence of the Republic of Moldova resulted in need to solve complex of the interconnected problems in the shortest possible time:

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