MOLDOVA’S FOREIGN POLICY STATEWATCHInstitute for Development and Social Initiatives “Viitorul”

Issue 21, April 2011

NEXT TOPIC TO BE COVERED:

The relations between Moldova and RomaniaW

hen the Republic of Moldova became an independent state in 1991, it had to make a considerable effort in order to become a member of a number of international organizations. The pro-cess of joining international organiza-tions, started and supported initially

by a pragmatic zeal along with the necessity to st-rengthen the independence status of the Republic of Moldova turned, subsequently, into a less clear exercise, at least for a part of society. However, the process keeps going on in a natural way, even if there are several opinions within the society, es-pecially among the opposition political parties or within the civil society, questioning the importance of the Republic of Moldova membership status in different international organizations from the perspective of pecuniary issues or the national in-terest. Thus, the national interest, the relationship between benefits and costs would have to raise the problem of reevaluating the content of the Re-public of Moldova international cooperation.

Veaceslav Berbeca

Moldova’s Foreign Policy Sta-tewatch represents a series of brief analyses, written by local and foreign experts, dedicated to the most topical subjects related to the foreign policy of Moldova, major developments in the Black Sea Region, coope-ration with international orga-nizations and peace building activities in the region. It aims to create a common platform for discussion and to bring to-gether experts, commentators, officials and diplomats who are concerned with the perspecti-ves of European Integration of Moldova. It is also pertaining to offer to Moldova’s diplomats and analysts a valuable tribune for debating the most interes-ting and controversial points of view that could help Moldova to find its path to EU.

MOLDOVA’S MEMBERSHIP FEES: BETWEEN EFFICIENCY AND SIMPLE PRESENCE

2 Moldova’s Foreign Policy Statewatch

Str. Iacob Hîncu 10/1, Chişinău MD-2005 Republic of Moldova 373 / 22 221844 phone 373 / 22 245714 fax office@viitorul.org www.viitorul.org

International participation of the Republic of Moldova

The Republic of Moldova is a member of more than 60 international organizations, a process that started upon proclamation of its independence. The process of joining the international structures has not always taken into account the same logical arguments for joining each organization. However, this attitude is a natural one because it occurred at different periods and depending on different factors that could be now obsolete.

Certainly, the joining and participation of the Republic of Moldova in the framework of different international organizations is an axiom but the knightly enthusiasm that characterized this process should be monitored. The formal presence in some organizations is in contradiction to the Republic of Moldova limited financial and human resources. Also, another reason that is invoked could refer to the emergence of a lack of agreement between its current membership status in some international organizations and its middle and long-term national interests.

The membership fees in the international organizations, to which the Republic of Moldova belongs, accounted for about 50 million lei in the last 3 years. In 2009 the membership fees amounted to 49950000 lei. In 2010 the sum of 46700000 lei1 was allocated and a substantial part represented the money for paying off the debts run up before2. Finally, the 2011 State Budget Law provides the figure of 48000000 lei for paying off the membership fees3. Although it does not look like a large sum, it is necessary to strictly supervise the way the public money is spent, a process that will certainly be of a particular interest to a growing number of the Republic of Moldova citizens.

Relation between efficiency and participation in international organizations

Obviously, the Republic of Moldova joining and participation in international organizations should not be assessed according to a very rigid system that would imply the carrying out of an analysis in terms of cost – benefit terminology. The state’s international collaboration could be explained depending on many criteria. One of them, that we are going to insist on, is an assessment of the international cooperation from the perspective of this process utility for the Republic of Moldova.

Speaking about the category of useful organizations, we will, first of all, refer to international structures and organizations that give visibility and substance to the member states. Joining the UN is the most important proof of a state’s existence and the UN multifunctional character backs up, one more time, the idea of the importance of this organization for any state. The membership fees to the UN, its programs, special funds and agencies are, by far, the largest sums out of the total amount paid 1 Governmentdecisionnr.101dated17February2010HotărăreaGuvernuluinr.101din17.02.2010„RegardingthepayingoftheRepublicofMoldovamembershipfeesanddebtstotheregionalandinternationalorganizationsfromthe2010yearstatebudget.”2 InternationalOrganizationsandtheRepublicofMoldova,www.mf.gov.md/ro/cooperinternal/org/3 Synthesisofthestatebudgetintermsofrevenues,expenditures,deficitandfinancingsources,www.mf.gov.md/common/actnorm/budget/projectact/PBP2011/Anexe/Anexa_nr1_2011_Ro.pdf

3Moldova’s Foreign Policy Statewatch

Str. Iacob Hîncu 10/1, Chişinău MD-2005 Republic of Moldova 373 / 22 221844 phone 373 / 22 245714 fax office@viitorul.org www.viitorul.org

annually by the state (accounting for more than one third of the entire amount) but the benefits are corresponding to the costs. The UNDP role regarding the poverty alleviation, institutional development and environment and energy issues in the Republic of Moldova is well-known.

The same logic may be used referring to the Council of Europe that develops common and democratic principles on the basis of the European Convention on Human Rights and other reference documents concerning the individuals’ protection. Also, the European Council instruments serve as an accountability model for the member states authorities. The Republic of Moldova, since joining the organization, has been under a continuous European Council scrutiny, a fact that proves that the commitments made as a result of its joining and ratifying the conventions regarding human rights have not been respected. The Republic of Moldova was to pay membership fees of 5477545 lei in 2010 to the Council of Europe an amount that represents 11,72% out of the total sum. The European Court of Human Rights is the last court the Republic of Moldova citizens may take their matter to if they consider that their rights have been violated. From 1998 till 2011 196 decisions concerning the Republic of Moldova were adopted. It has to be mentioned that there is a direct connection between the compliance with the European Court of Human Rights decisions and the Republic of Moldova international image. Otherwise, a system of sanctions with a negative impact on the Republic of Moldova could begin. But the Republic of Moldova international participation and openness is vital for its economic, social and political prosperity.

Another example in terms of utility would be the World Trade Organization that deals with the trade regulations between the member states. Moldova had to pay 378976 lei in 2010, that accounts for 0, 81% out of the total amount of membership fees to the WTO which has to arbitrate in the commercial disputes between the states. For example, on 3 March 2011, Moldova addressed to the WTO in order to organize consultations with Ukraine regarding the discriminatory sales terms applied to the distilled Moldovan alcoholic drinks on the Ukrainian market4.

Another important organization is the OSCE to which the Republic of Moldova pays 3631045 lei, i.e. more than 7, 78% of the total amount. The OSCE activity is quite diverse including combating human trafficking, arms control and disarmament, conflict negotiation and resolution, mass-media freedom, human rights and democratization. The OSCE presence is visible and important for the Republic of Moldova.

There is, also, a category of international organizations, the Republic of Moldova is a member of but the content and consequences of joining are not clear enough, from the utility perspective. We can suppose that the fact of joining some structures was dictated by some political circumstances or some arguments we might not have any knowledge about. By stating this, we do not ask to denounce these organizations but we invite the state to explain the purpose of being members of many international organizations and the civil society to express its opinion concerning the content of this international collaboration. Moreover, assuming that they are important, we are interested in finding out if the state capitalizes on the benefits provided by these international institutions.

In this context, we refer, first of all, to the CIS. The Republic of Moldova joined this organization hoping, among other reasons, to solve the conflict in Transnistria. Also, Chisinau administration signed and ratified within CIS agreements regarding the creation of the Economic Union and the free trade zone. The Transnistrian conflict was not settled and in terms of trade the Republic of Moldova faced several times an embargo on certain goods imposed by Russia. We can see that states’ participation in the framework of different signed agreements is selective and depends on every state’s interest in an agreement or another� and there are not mecanisms at the CIS level entitled to ensure the implementation of the adopted norms. The relationships between the CIS states are regulated by bilateral agreements and this is an explanation of the Commonwealth legislation inefficiency. The 4 MoldovafilesdisputeagainstUkraine,www.wto.org/english/news_e/news11_e/ds423rfc_03mar11_e.htm

4 Moldova’s Foreign Policy Statewatch

Str. Iacob Hîncu 10/1, Chişinău MD-2005 Republic of Moldova 373 / 22 221844 phone 373 / 22 245714 fax office@viitorul.org www.viitorul.org

This publication was produced by IDIS “Viitorul” with the financial support of Soros Foundation Moldova and the National Endowment for Democracy. The opinions expressed in this publicati-on reflect the author’s/authors’ position and don’t necessary represent the views of the donors.

Str. Iacob Hîncu 10/1, Chişinău MD-2005 Republic of Moldova 373 / 22 221844 phone 373 / 22 245714 faxoffice@viitorul.org www.viitorul.org

actual situation within the CIS seems to be in contradiction with the annual fees of 5310062 lei paid by Chisinau to the CIS organizations which accounts to more than 11, 3 % of the total sum (the second figure after that paid to the UN and its specialized agencies). There are, also, voices highliting the fact that the CIS memebership is in contradiction to the goal of joining the EU.

Another organization from this category is the International Organization of the Francophonie but the utility of this one is interesting for us from another perspective. The IOF is an organization with a cultural mission but has a political one as well including 53 states and governments with a full membership status. Although the membership fee is not a large one – about 600000 lei annually together with the debts, we would like to know if the Republic of Moldova takes the advantages of being a member of this organization. It would be curious to find out what is the correlation between the IOF and France taking into account the fact that Paris has blocked some processes of getting closer between the EU and the Republic of Moldova. This approach of capitalizing on the membership benefits also refers to the Conference concerning the Navigation Regime on the Danube to which we pay 2429461 lei annually. We do not question the necessity of being a member of this organization but we would like not to have just a formal presence there.

Conclusions and recommendationsThe Chisinau administration should assess its presence in terms of international cooperation.

The need of this action is dictated by practical and financial reasons but by the middle and long-term state’s interests as well. The Republic of Moldova has limited human and financial resources and, that’s why, it has to establish a list of priorities from the perspective of international collaboration.

Assuming that all organizations are important, we would like to know if we take advantage of all benefits offered by these internatonal bodies and the state has to explain the reasons and needs of belonging to these organizations and the results of cooperation with these international institutions.

The signing and ratifying of agreements implies the compliance with some commitments. The fact that the Council of Europe is still monitoring the Republic of Moldova is a proof of the state’s weakness. Chisinau administration must make efforts in order to comply with its commitments to the international bodies. This thing would give the Moldovan society a new perception for which the paying of membership fees would not mean a waste of money but an indication of the state’s maturity.

The Republic of Moldova must pay off its debts incurred during years and avoid their appearance in the future. Eventually, the image of a state is shaped also by its compliance with the financial commitments.