General Considerations Global Changes Chisinau Municipality and a New Europe National Dimension Conclusions

2.1 General Considerations

Chisinau, the capital of Republic of Moldova, an important urban center of South- Eastern Europe, entered the XXI century in conditions that are essentially different of those that have been 10 years ago. In this short period of time a new state – Republic of Moldova (RM) was established with a new political, economic, social and administrative system. The types of property and particularities of social life have been modified, the basis of the market economy and a new way of life of the citizens have been established.

This essential modification had a direct impact on the appearance of municipality. In more attractive places appeared new offices, business and commercial centers, banks’ buildings, hotels, streets became full of shops, restaurants, bars, etc. Republic of Moldova and its capital, Chisinau, are discovered by many foreigners that are visiting us to see the outstanding autochthon landscapes with green hills of Chisinau, to make researchers regarding business opportunities, being fond of exceptional hospitality of the inhabitants.

At the same time, the problems of urban development become more vivid. Chisinau becomes narrower for transportation, the level of noise raised, the city infrastructure is not very good, there is lack of accessible dwellings, especially for young families, persists a high level of criminality, accompanied by inflexibility and reduced efficiency of public administration bodies. The historical center of the capital being extremely agglomerated by transportation, is exposed to the increasing pressure from commercial activities. The municipal property is not explored at the high efficiency, the fact that does not permit to the local public administration to allocate sufficient resources and investments for the primary necessities of the municipality development.

Such kind of problems can be solved in case if they are accompanied by the long term goals of a sustainable development of Chisinau Municipality, related to the accessible opportunities. These requirements need a fresh view on the perspectives and mechanisms of strategic development of municipality. That is why Chisinau Municipality as any other European capital needs a long term development strategy together with a modern urban plan, which will stipulate an ample and realistic view of a future economic, social and urban development. Such kind of strategy has the aim of approach some local policies of planning competitive economic development that will help Chisinau Municipality to become a part of modern world, European and national trends.

Finally, it can be mentioned that Chisinau Municipality, being influenced by many human and social problems, by serious consequences of some emigration processes, economic disequilibrium at the national level, needs personal program of local development. Sure that it can’t be the most important city in all fields of activity. The strategy of development should be based on the system of goals and actions connected with the personal possibilities and potential. In this case, the process of European and international integration should be controlled and managed in such a way, as to assure a coherent strategic development of Chisinau Municipality, in order not to expose it to the risk of domination of market economy logic in disfavor of life quality and rights of its citizens.

2.2 Global Changes

In the last decades, the economic and social development of the world was accelerated, especially in developed countries that lead to the general modifications of the structure. The global policies and economic management influences other countries and regions of the world too, generating in the regions new dimensions of vital interests of Republic of Moldova. Instead of USSR new independent states appeared, the states which promote the market economy and encourage bilateral and multilateral cooperation and competition that leads to the globalization of economic-financial activities, technologic progress, access to the information etc. Developed countries are integrated in political-military and economic organizations meant to assure, first of all, economic and social development.

After 1992, Chisinau has the special role of development international relations between different states, regions and cities, the role that belonged to the central bodies of USSR. Once penetrating this geopolitical environment, Chisinau has exceptional responsibilities in respect of Republic of Moldova and international community.

The double manifestation of decentralization (applying the principle of funding promoted by EU) and concentration in real economy (in conditions of globalization on the regional and world plan) generates opportunities and conditions for the capital of a new country. First of all Chisinau has the role of local and regional subcenter of influence and management in organizing the country’s economy through contacts with global centers of influence and management of financial, industrial, technologic and innovations business as it is New York, London, Tokyo etc. The neutralization of these opportunities in conditions of globalization can negatively affect not only the economy of Chisinau but of the country as a whole, provoking decline processes.

2.3 Chisinau Municipality and a New Europe

Republic of Moldova, a state which is situated in the geographical center of Europe, will straitened all efforts to integration in European structures especially in economic ones. Chisinau Municipality as the political, administrative, economic-financial and social center of the country has the decisive role in this process. The actions undertaken by Republic of Moldova in last years confirm the reality of these processes. Republic of Moldova is the first ex-soviet state, after the Baltic countries which became in 1995 a full member of Council of Europe and in 2001 was admitted to the Stability Pact of South-Eastern Europe. It is evident that integration can not be made by itself. Such king of relations of integration have to be developed, maintained and strengthened. Chisinau has to be aware that in order to be accepted in this competition at the European level, it is not sufficient to assure the development progress of the country but also to make efforts in the future in order to maintain this level.

The opportunities of development consist in conscious presentation of specific advantages of Chisinau Municipality and mechanisms of its usage with the maximum benefit. Taking into account the basic premises of limited autochthon natural resources, limited potential of internal market so as of the experience of social and economic development of Chisinau in the period of centralized economy, the practices of bilateral and multilateral coordination and planning with other cities of Europe and other regions of the world are vital for Chisinau Municipality, the common programs of establishment of profitable opportunities in difficult conditions of competition between the states. Chisinau Municipality already launched programs and agreements of collaboration and established relations with a range of European cities and other regions of the world. At present there are signed Agreements of sister cities and collaboration with the cities and municipalities as Bucharest (Romania), Kiev, Odessa (Ukraine), Moscow, Saint-Petersburg, Saratov, Ioscar-Ola, Tula, Severodvinsc (Russia), Grenoble (France), Mannheim (Germany), Reggio Emilia, Citta di Castello (Italy), Sacramento (USA), Jerusalem, Tel-Aviv (Israel), Beijing, Qingdao, Siani (China), Budapest (Hungary), Hampshire (Great Britain), Minsk (Byelorussia), Astana (Kazahstan), Damask (Syria), Erevan (Armenia), Ankara (Turkey), Vilnius (Lithuania).

Chisinau Municipality is a part of some European and international structures and programs. At the same time it intensively collaborates with the Congress of Local and Regional Authorities of the Council of Europe. As a result of various common activities (cultural exchanges, sport competitions, projects of economic and commercial cooperation, international forums and meetings, etc.), in 1999, Committee for European Prize awarded Chisinau Municipality with “The Flag of Honor of Council of Europe”.

In 1996 Chisinau Municipality became an observer member, and in 1997 a full member of “The Assembly of Regions of Europe”, organization which bring together more then 300 Regions of Europe. Beginning with 1994 Chisinau Municipality is a member of the “Association of the Capitals of the Black Sea Region”, which mainly deals with cooperation and reciprocal exchange between the capitals of the states from the zone. In September 2003 Chisinau Municipality was the host of the IV General Assembly of the Association of the Capitals of the Black Sea Region. In 1996 the General Assembly of the International Association of the Mayors of the Capitals and Metropolises Totally or Partially Francophone accepted in its composition the candidature of Chisinau Municipality. Chisinau Municipality is an active participant at the other international structures as “International Association of Capitals and Metropolises”, “The Conference of Mayors from the South-Eastern Europe”, “Association of Mayors Against Drugs”, etc.

Chisinau Municipality is a distinct center of education and culture which offers the majority of information from the country, creating and maintaining the identity of Republic of Moldova on the local and international plan. Chisinau has some resources that in the frame of European integration can be offered and can present interest not only for Republic of Moldova. Such kind of resources can be educational, cultural, scientific, spiritual, as well as some economic fields, especially using traditional relations with the Union of Independent States, with the states that are a part of the Stability Pact for the South-Eastern Europe and tertiary countries. Chisinau by itself is very attractive, the fact that is realized by the capital guests, who often discover outstanding aspects which are usual for the inhabitants of the city and local authorities. Our strategic aim is to develop these aspects which together with an advanced human potential will offer to Chisinau real chances to become a center of primary importance in the South-Eastern Europe. In order to beneficiate of possible opportunities, Chisinau has to remove a range of obstacles caused by lack of technical and transportation infrastructure, by the medium level of network and international connections development, by lack of population training regarding the opportunities and disadvantages of city that is open to the international competition, as well as by dissatisfactory image of some low quality services that need to be improved.

In addition, limited natural resources of Republic of Moldova, high density of population, level of pollution and quality of environment imposes collective responsibilities in the region regarding the conformation with the principles of sustainable development of environment for the future generations in conditions of assurance of economic and social development that is necessary for Republic of Moldova and countries from the region to satisfy European life standards.

2.4 National Dimension

Chisinau is a political, administrative and social center of Republic of Moldova. In Chisinau are situated the state authorities, important national and international institutions and companies, which develop there activity on the entire territory of Republic of Moldova and abroad. Chisinau is ready to extend its favorable conditions in order to host other national and international institutions and companies with the positive impact at the municipal and national level. Municipality is dominant in attracting international activities and represents the center of international relations of Republic of Moldova.

The contribution of Consolidated Budget of Chisinau Municipality to the republican Consolidated Budget is 58,3 per cent.

The share of Chisinau Municipality in the total accumulations to the Social Insurance Budget of Republic of Moldova is 56,5 %.

Chisinau Municipality is a host for 779 900 inhabitants. Chisinau is an important source of working places, of providing population with multiple possibilities of purchasing goods and services for 6 towns and 26 villages from the composition of municipality as well as for many localities that are situated around Chisinau. This partially explains the fact that Chisinau Municipality having 18,5% of the country’s population has more then 55,9% of the total volume of retail trade and more then 61% of total republican volume of paid services catered to population.

If we analyze Chisinau Municipality from the social and economic potential side of development and business activities, it differ from other municipalities of Moldova by significant inequalities. In accordance with statistics and economic indexes, Chisinau Municipality, with the share of 18,5% from the total population of republic, makes 55,5% of GDP of the country. The share of other municipalities is less then 10% of national GDP. Chisinau Municipality has the lower level of unemployment then other localities of the republic (11,5% of the total number of unemployed people registered in the republic, in comparison with 18,5%, which is the share of Chisinau population), the higher level of the monthly average salary (about 140% in comparison with the average salary in the republic) and the higher level of the average pension (about 118% of the average pension in the republic).

Thus, the territorial analyses of Republic of Moldova make evident the enormous differences between Chisinau Municipality and the rest of the republican territory in socio-economic development. This is the main problem of development of the country under the territorial aspect which is characterized by three main particularities: (a) high level of concentration of economic activity in Chisinau Municipality; (b) vivid difference between the life standards of Chisinau citizens and citizens from the rest of the republic; (c) huge difference between the capital and the rest of the territory in the field of development of the infrastructure and production factors.

With small exceptions, according to the main indexes of the social-economic development per capita, al the districts are situated under the national average, at the same time Chisinau Municipality is placed far from this level. At the same time, the difference between the extremities (Chisinau Municipality and the districts with the lowest economic levels) is enormous.

Table 2-1 Differences between Chisinau Municipality and the rest of the districts (per capita) *

* Republic of Moldova =100
Source: The atlas of the districts of Republic of Moldova, Chişinău 2002

It is to mention that under the national aspect the economic, cultural and scientific activity has the trend to be concentrated especially in the regions with more developed infrastructure and the higher life standards. From this point of view it can be concluded that from the territorial point of view, Republic of Moldova risks to accentuate the enormous difference between the capital and the rest of the country, the fact that affects the general development of the republic.

The concentration of an important part of the properties of Moldova and of many influent economic structures gives to Chisinau a key role of strategic city for the development of the districts and country economy and its integration in regional and global structures. This role implies several responsibilities. The policy of the central public administration and of the local one is going to be finalized.

Chisinau has the determinant role in raising the level of competition of economic activity, of material goods and local services as the unique source of improvement of material wealth of the population. Reaching the above mentioned desideratum imposes the automatization of the production processes, applying information technologies, equipping the enterprises with modern technologies and other activities that are at the basis of modern economy based on the knowledge. Economy based on knowledge as the main objective of European Integration without which we can not talk about the European integration.

The progress in this new economy is determined by unknown earlier development in scientific researches, especially of those fundamental and applicative, the results of which, through the branch of the activities from the technologic development fields, assisted by the innovation structures find its application in the field of goods and services production. At present the activities of the science based economy are at the basis of cities and prosperous capitals development, where, as a rule, exists a high density of population and limited natural resources.

The planning strategies and policies of the competitive development and accelerated economic promotion of Chisinau Municipality have to permit the inclusion of municipality in competitive activities at the world, European and national level, through stimulating by the local administration bodies and interested economic agents in technological progress, of the investments in training the staff and specialists of superior quality in the field of development of activities and structures of generating new knowledge, products and technologies.

Chisinau Municipality by its geographic situation has the possibilities to develop the elements that determine big international companies to localize in the region products or services in the modern conditions of economic activities globalization. This parameter will serve to the favorable relation between the labor force, the qualification level of the specialists, increase of the labor productivity, the quality and cost of the transportation and used materials, absorption potential and favorable access to the markets from the East of the Republic and from the region of the countries that are a part of the Stability Pact for the South-Eastern and Central Europe. The main mechanism of development of these activities consists in significant increase of small and medium enterprises. The social programs and labor force reorganization meant to diminish the number of those who are working for the agro-industrial and goods production field is not less important for the growth of those who promote the new fields of the economy which are based on the knowledge and produce/cater services.

For big international enterprises are important the programs of creation of a new type of labor force, which will have a high level of development of the moral stimuli as: affirmation of a personality at the working place, importance of personal contribution inside the labor collective, increase of personal responsibilities for the results of the collective, for creating own plan of personal working day etc.

These requirements of quality regarding the labor force give to the enterprises a possibility to delegate responsibilities to the zones that generate values in the process of production, to decentralize the production process, to decentralize the decision making process, the fact that permit to the international companies to create new working places in the region, new small and medium enterprises that can be tactically independent, being integrated in big international bodies only from the strategic point of view. In other wise the differences between reach and poor countries will increase.

Chisinau is the initiator of the development at the national level, where are promoted the high standards of life and business, having the highest rating in the country. It attracts young people from allover the country and now it is a business centre were business partners are chosen and new opportunities are proposed.

Chisinau Municipality is also a promoter of different initiatives regarding the reform of the public administration bodies, especially of local ones, meant to strengthen local self-government, establish dynamic, efficient and receptive public administration bodies. The main objective is to establish the partnership principles between the local public administration bodies and central public administration, having the aim to improve the management and development of municipality.

At the same time Chisinau Municipality is distinguished among the other European cities by uncompleted, out-of-date infrastructure, planned and built dozens of years ago in conformity with extensive methods, with high coefficients of energy loss, the fact that negatively affects the social-economic activities of environment. It is also characterized by dense traffic that is the cause of lack of road networks in comparison with increase of automobile usage. This aspect can not be underestimated while speaking about transforming Chisinau in a regional center of South-Eastern Europe.

2.5 Conclusions

Advantages	Disadvantages
Center of economic and social development at the national level, leader of political, cultural, academic and university authorities. Initiator of cultural changes and development at the national level. Promoter of Republic of Moldova on the international plan. Situation in the geographic center of Europe and relations between East and West – strengthening of the prestige and attraction. Attractive center for national, regional and continental transportation networks.	Low level of networks development, especially exterior one. The absence of marketing strategies of the municipality interests. The absence of the adequate legal frame and incoherence of the central public administration policy regarding the importance of the capital of Republic of Moldova. Absence of capitalization of the possibilities offered by the statute of the capital and of the geopolitical European situation. The absence of the sustainable development strategy and of the programs of branches development.
Opportunities	Constraints
Strengthening of Chisinau Municipality share on the regional and European market as an innovation center with dynamic perspectives and sustainable stability. Establishing dialog (collaboration) mechanisms with the capitals and big cities form Europe and the whole world. Using geographical situation of Chisinau Municipality by increasing investments in services infrastructure and other mechanisms meant to attract national and international institutions. Maximum utilization of scientific- educational, cultural, spiritual, historical, demographical, economic, tourist opportunities for extension of integration areas. Elaboration and implementation of the strategy of Chisinau Municipality - the instrument of coordination and motivation of increasing territorial activities of Republic of Moldova.	Modification and substitution of prior objectives of strategic development of Chisinau Municipality by current interests that can offer in some periods of time advantages and conditions of low quality of the services and of the absence of the urban marketing strategies offered by the central and local public administration bodies. Diminution of the capital role, its treatment as an ordinary city, equal between the cities of the region losing the prestige and the full representation of the country. Losing and neutralization of the opportunities of investments in technical, technological and continental, regional and national transportation networks infrastructure. Diminishing of the importance of Chisinau Municipality as a center of business and culture of South-East Europe as a result of a delay of the regional integration processes.