Today 22 April 2019, Monday - Last updated at ora 17:23

News 20 July 2018, at 17:59

Moldovan citizenship in return for investment: reinventing our economy, not the wheel

Marime Font

As a small landlocked country, with no energy resources of its own, Moldova projects vulnerability in a wider regional context. Increased efforts towards European integration have triggered Russia’s swift retaliation on economic grounds, banning Moldovan imports and installing a climate of economic uncertainty. Only in 2013 and 2014, Moldovan exporters could redirect their goods to Western markets, driving economic recovery. 

Moldova’s path towards development is shaped by the country’s geography: sandwiched between Romania and Ukraine, the Eastern European country has been able to consolidate access by signing multiple economic agreements with EU Member States and with former soviet republics. Currently, local companies can access both European and Asian markets, with an undeniable preference for a the former, where almost 70% of Moldovan exports are now directed.

A further, rather challenging step is securing competitiveness; how to make Moldova more competitive on the global market, without relying on natural resources. As experienced by local stakeholders, solutions call for an innovative approach, as long as consolidated export capacities and foreign investments are Moldova’s main drivers for economic growth. It is a moment of opportunity for Moldovan authorities to adopt measures with proven efficiency and secure the country’s remarkable economic growth of the past 2 years.

A measure to look into: granting Moldovan citizenship to major investors.

This mechanism is nothing new; more developed countries already have it. In Moldova’s case, it involves a non-refundable contribution of 100 thousands euro from foreign citizens, to be transferred in a state fund for structural investment in infrastructure - such as roads, water collection systems, aqueducts. The other option is to invest 250 thousands euro in real estate or state bonds for a period of 60 months.

A projection put together by specialists from the Moldovan Ministry of Economy shows that, at a first stage, 1.3 billion dollars would enter the country. 17% of the Moldovan current GDP. This program would drive a 2.5% annual economic growth, with 8-9% more money to the state budget, in the period of implementation. Foreign direct investment would triple. Investment in private constructions would register a 25% growth.
The legislative framework for the “investment” citizenship has been in place since last year, yet criticism is now gaining ground. Some voices have attempted to start a conversation about risks to the national security - while we welcome further interest in this topic, one should be aware that such a program implies due diligence assessments and detailed investigations operated by intelligence services and law enforcement authorities.

We are not in the business of reinventing the wheel. We dream bigger - Moldova needs a braver development model and we are lucky enough to be able to apply measures with proven efficiency in leading markets.

This program is available in the United States of America, United Kingdom, Germany, Austria, Singapore, Hong Kong. An elite club of states have come to the conclusion that their openness is even more valuable when foreign citizens are able to invest and prosper. Usually, conditions in the above-mentioned countries include: investment in the banking sector (deposits), real estate or companies; job creation, investment in state bonds or even donations to the state.

Scepticism is natural, but can prove counter-productive without the necessary information. This is why, in the end, I would like to highlight a study done by IMF experts on “citizenship in return for investment.” IMF experts debunk the myths around this type of programs and focus on benefits - which, in Moldova’s case, can make up for a real success story.

blog comments powered by Disqus

Din aceeaşi secţiune

Cele mai noi ştiri de azi

News 15 April 2019, at: 10:25

The radio station brought to light Victor Josu, a pro-Russian who is helped by Valeriu Pasat, the ex director of the Service of Information and Security to promote Russia's politics in Moldova. In 2010, Victor Josu was intensively supporting a further organization of a referendum to support the...

( ) Read all

News 12 April 2019, at: 04:44

Katie Bowman .. A Harvard girl who photographed the black hole

Katie Bowman .. A Harvard girl who photographed the black hole

 Katie Bowman, a PhD in electrical engineering from the Massachusetts Institute of Technology, specialized in a very fine part of building complex and precise algorithms that could create images through a huge data stream of up to 5 million gigabytes, and then completed her specialization at...

( ) Read all

News 10 April 2019, at: 07:35

 Today's press conference of the Socialist Party of the Republic of Moldova, informally led by the Moldovan President, Igor Dodon, supports the suspicion that his undeclared and denied plan to place the country under Russian control exists and is still in motion.

( ) Read all

News 9 April 2019, at: 08:26

Time flies. 15 years have passed since Lithuania‘s accession to NATO. Once, NATO membership seemed completely out of Lithuania‘s reach. Today, we proudly consider ourselves to be experienced and reliable members of the Alliance.

( ) Read all

News 3 April 2019, at: 11:07

 Greek judge Linos Alexandros Sicilianos was elected as President of the European Court of Human Rights on Monday.

( ) Read all

News 3 April 2019, at: 10:56

 Romanian Finance Ministry to launch three Eurobond issuances, as first ever 30-year Eurobonds are included. Former PM Victor Ponta strongly criticized the measure.

( ) Read all

News 3 April 2019, at: 10:52

 Laura Codruța Kovesi was placed under judicial control, preventing her from leaving the country and talking to the press. Protests to support Kovesi were organized this weekend

( ) Read all

News 24 March 2019, at: 20:48

 When Benito Mussolini debuted the Fasci Italiani di Combattimento, the precursor to his fascist party, on Mar. 23, 1919, in Milan, he wasn’t inventing the idea of violent authoritarianism. But he put a name on a new and terrible breed of it. Under his leadership, squads of militants...

( ) Read all

News 24 March 2019, at: 08:36

France’s Emmanuel Macron declared the “time of European naïveté” towards China was over as Xi Jinping was hosted with pomp in Rome for a visit that has alarmed both Brussels and Washington.

( ) Read all

News 22 March 2019, at: 19:39

 Almost 70 percent of the world’s most important economies is under the control of populist governments or non-democratic regimes, according to an analysis by Bloomberg Economics.

( ) Read all

News 20 March 2019, at: 07:33

On this day five years ago the Constitutional Court of the Russian Federation adopted - over one night - the decision (opinion) that allowed for the annexation of a part of Ukrainian territory - the Crimean penninsula. Thus, the decision of 19 March 2014 contributed to the commission of an act of...

( ) Read all

News 19 March 2019, at: 06:41

 Remarks by High Representative/Vice-President Federica Mogherini at the press conference following the Foreign Affairs Council

( ) Read all

News 18 March 2019, at: 16:41

 BUDAPEST — The International Investment Bank, an obscure Russian financial institution with a small-time balance sheet, is an unlikely source of global intrigue. In more normal times, its plans to open a new headquarters in Budapest would pass unnoticed.

( ) Read all

News 18 March 2019, at: 15:36

 The attack in New Zealand was inspired in part by the Norwegian mass murderer Anders Behring Breivik, but the real threat is lone wolves lurking in the far corners of the Internet.

( ) Read all

News 15 March 2019, at: 12:55

 WASHINGTON, DC – Last week, Congressmen Adam Kinzinger (R-IL) and Bill Keating (D-MA) introduced H.R. 1616, the European Energy Security and Diversification Act, to help both the United States and European countries attain global energy security while also encouraging a...

( ) Read all

News 14 March 2019, at: 18:20

 Note: Unless otherwise noted, all references in this report exclude the secessionist region of Transnistria.

( ) Read all

News 13 March 2019, at: 23:09

 The Constitutional Court on Feb. 26, 2019. The court abolished on Feb. 26, criminal liability for illegal enrichment, deciding that it violates the presumption of innocence.

( ) Read all

News 11 March 2019, at: 20:04

 Latvia has finished construction of the 93-kilometer-long section of the fence with the barbed wire on the border with Russia. Kristina Petersone, the press secretary of Latvian State Border Guard said that as quoted by Diena.

( ) Read all

News 11 March 2019, at: 08:21

 The restoration of Statehood Day, is a national holiday in Lithuania, and is always celebrated on March 11 in Lithuania. This public holiday is also known as Restoration of Independence Day.

( ) Read all

News 11 March 2019, at: 06:57

 Russia will be one third Muslim in a decade and a half, and the demographic trend is too far along to stop.

( ) Read all

News 8 March 2019, at: 08:05

 Russia's parliament has passed two bills outlawing "disrespect" of authorities and the spreading of what the government deems to be "fake news".

( ) Read all

News 5 March 2019, at: 08:52

 The arrest of an American businessman in Russia echoes the Khodorkovsky and Browder episodes from the early 2000s.

( ) Read all

News 2 March 2019, at: 17:57

 Ukrainian President Petro Poroshenko has proposed the introduction of a new anti-corruption law after the the country’s Constitutional Court annulled the president’s previous anti-graft bill, a move that raised both domestic and international concerns that the country is...

( ) Read all

News 2 March 2019, at: 07:30

 The Kremlin remains determined to establish itself as a hegemonic great power, and to follow the domestic as well as international priorities that have underpinned that objective since Vladimir Putin’s return to the presidency in 2012. But Russia’s wider public has become less...

( ) Read all

News 28 February 2019, at: 15:20

 The United States congratulates the people of Moldova, the Central Electoral Commission, and the winners in the February 24 parliamentary elections. We welcome the assessment by the Organization for Security and Cooperation in Europe’s (OSCE) Office for Democratic Institutions and...

( ) Read all
Current tier / breakpoint: xs sm md lg xl (= visible only on this breakpoint)

.hidden-xs-down .hidden-sm-down .hidden-md-down .hidden-lg-down

.hidden-xs-up .hidden-sm-up .hidden-md-up .hidden-lg-up .hidden-xl

.hidden-xs (only) .hidden-sm (only) .hidden-md (only) .hidden-lg (only) .hidden-xl (only)