Regulatory Reform

regreformA large and growing body of evidence links improvements in the legal and regulatory environment to faster growth, greater employment, and less informality in the business sector. 

A study by the World Bank concluded that "countries with better regulations grow faster. Improving from the worst quartile of business regulations to the best implies a 2.3 percentage point increase in annual growth."

To support continued improvements in Moldova's regulatory environment, the BRITE Program has been working to implement reforms that have clear political support and the potential for high impact in terms of monetary savings and improvements to businesses and the public sector. The project's efforts are aligned with the government's own strategy for regulatory reform and have placed strong emphasis on e-governance solutions to minimize administrative burdens for businesses and reduce opportunities for bureaucratic discretion. The USAID BRITE Project supports the Ministry of Economy (MoE) in developing and implementing business environment reform policies. These have included the GOM's Regulatory Reform Strategy and Action Plan of 2013-2020, the Road Map for Removing Constraints to the Business Environment of 2013-2014, and the Competitiveness Road Map of 2013-2014. USAID BRITE works closely with the MoE State Secretary, General Business Development and Investment Directorate, and the RIA Secretariat and in cooperation with other donors, such as World Bank, IFC, and the EU. For example, USAID BRITE was a contributor to the Policy Briefing Book presented to the Government in February 2015.

Consistent with the Government's stated policies and international commitments, and consistent with recommendations in the Development Partners Policy Briefing Book, USAID BRITE has prepared several proposals to address these issues, including legislative amendments and IT (e-Government) tools that aim to streamline the permit process, eliminate overlapping authorities, and shift the focus of public authorities from exercising strict control to encouraging compliance. USAID BRITE is also prepared to assist the Ministry of Economy and other public authorities to implement these initiatives and asks for its support. These initiatives are described below:

Reform of Internal Trade Permits/Authorizations

Reform of the Construction Permitting Process

Streamlining permits for import/export operations issued by the National Food Safety Agency (ANSA)

Streamlining other export/import permits

Improving methodology and application of Regulatory Impact Assessment (RIA)

Implementing the State Local Acts Registry

USAID BRITE also supports the MoE Trade Policies Directorate, most recently in helping it conduct a self-assessment of Moldova's compliance to the WTO Trade Facilitation Agreement and preparing a submission of its Category A commitments and has agreed to support the MoE 2015 chairmanship of the Central European Free Trade Agreement (CEFTA) Secretariat.