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GAGAUZIA (SFM) (IDSI) „Viitorul” Initiative (LGI-OSI) (Gagauz-Yeri)

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GAGAUZIA (SFM) (IDSI) „Viitorul” Initiative (LGI-OSI) (Gagauz-Yeri) Th is Guide has been published with the fi nancial support of the Soros Foundation Moldova and Open Society Institute Local Government and Public Service Reform Initiative (LGI/OSI). Institute for Open Society Institute Autonomous Soros Foundation Development and Local Government and Territorial Unit Moldova Social Initiatives Public Service Reform GAGAUZIA (SFM) (IDSI) „Viitorul” Initiative (LGI-OSI) (Gagauz-Yeri) Th e content of this document lies under sole responsibility of the Institute for Development and Social Initiatives “Viitorul” and ATU Gagauzia. It does not refl ect under any circumstances the viewpoint of the Soros Foundation Moldova and Open Society Institute Local Government and Public Service Reform Initiative (LGI/OSI). Th e authors would like to express their sincerest gratitude to the authorities of the ATU Gagauzia, in particular to Mr. Mihail Formuzal, Governor of ATU Gagauzia and Mr. Vitalii Kiurkchu, Head of General department of economic development, trade, services and external economic aff airs of Gagauzia. Coordinator: Liubomir Chiriac, IDSI Viitorul Issued by: Igor Munteanu, IDSI Viitorul Vlad Catlabuga, IDSI Viitorul Mihail Shalvir, IDSI Viitorul Veaceslav Ionita, IDSI Viitorul Liubomir Chiriac Jr, Princeton University, USA Published under the project: “Developing Economies Locally through Action and Alliance (DELTA) Gagauzia” initiated by LGI/OSI in cooperation with Gagauz authorities, co-sponsored by the Soros Foundation Moldova and implemented by the IDSI “Viitorul” CONTENT FOREWORD ............................................................................................................................ 3 ACKNOWLEDGMENTS ................................................................................................... 7 OPENING STATEMENT BY THE BASHKAN OF GAGAUZIA .................... 8 SECTION I. GENERAL INFORMATION Chapter 1. Facts about the Republic of Moldova 1.1. Country Profi le: Social and Demographic Aspects ...................................................... 9 1.2. Political Organization and Administrative-Territorial Division ............................... 10 1.3. Investment Climate .......................................................................................................... 12 Chapter 2. Background information: Gagauzia – autonomous territorial structure within the stricture of the Republic of Moldova 2.1. Legal status of Gagauzia within the structure of Republic of Moldova. Public Administration Authorities ................................................................................15 2.2. Historical background of the region’s population.........................................................19 2.3. Geographical position ......................................................................................................19 2.4. Th e region’s Major Social indicators: education, health care, culture ..........................20 SECTION II. ECONOMY AND INVESTMENT ACTIVITY Chapter 1. Economy and investment activity 1.1. Development of economy: industry, agriculture, export, transport network, regional infrastructure ..................................................................22 1.2. Preconditions for sound investments in the region of Gagauzia ...............................26 1.3. Moldovan legislation on foreign investments and the overall investment climate in Gagauzia ..........................................................28 1.4. Th e emergence of free enterprise zones in Gagauzia: example of the “Industrial park “Valkanes”” ................................................................29 1.5. Activity of the branch of the Chamber of Commerce of the Republic of Moldova in Gagauzia ......................................................................31 Chapter 2. Th e Gagauz way of Development: Traditions and Innovative Ideas for Regional Development 2.1. Building up a Gagauz “Wine Road” at the European Union Frontiers......................34 2.2. Looking for Investment Ideas: bridging the potential for ecological agriculture in the south of Moldova ..............................................................................36 2.3. Investment Area – buildings............................................................................................55 2.4. Investment Area – land ....................................................................................................86 Annexes 1. Decrees and laws on investments and investment activities ....................................... 98 2. Export-enterprises of Gagauzia .................................................................................... 100 3. Regional authorities in the Gagauz Autonomy ........................................................... 102 4. Financial Infrastructure of the Region of Gagauzia: Banks and Ensuring Companies .................................................................................. 103 5. Foreign Embassies in Moldova ...................................................................................... 104 6. International Organisations in Moldova ...................................................................... 105 7. State institutions ............................................................................................................... 105 8. Road and Transportation ................................................................................................ 107 Chapter 1 FOREWORD Understanding local advantages and priorities to follow in order to achieve regional pros- perity and welfare is of utmost role. Even more important is however to mobilize the popula- tion, business and local governments to support and internalize the necessary changes, as they are refl ected in a genuine Strategy of Regional Development. Capacity building and fi rm leader- ship are certainly two of the key-words to implement sustained economic growth, attract critical investments to the critical infrastructure and productive areas of the region. Th is Guide is provided as a tool to understand the competitive economic opportunities of the Gagauz Region. Th e development of the Guide was preceded by consistent work to ana- lyze the existing strengths and weaknesses through a wide and comprehensive diagnostic eco- nomic and social overview (see available copies in English, Russian and Romanian languages at www.gagauzia.md). Th us, the Guide is designed to provide brief information on the major factors that make Gagauzia attractive, providing economic development practitioners, potential investors and in- ternational partners with a clear overview of what exactly they could fi nd out in the region. Authors of this Guide aim to respond in a systematical way to the issues which are of direct concern to all those who are interested to learn about the region of Gagauzia. A WHAT IS GAGAUZIA? ITS PARTICULAR TRAITS, PLACE AND GEOGRAPHY B WHERE TO INVEST IN THE GAGAUZIAN REGION? C WHY ONE COULD INVEST IN THE ECONOMICS OF GAGAUZIA? D HOW TO INVEST IN GAGAUZIA? E WHO ARE THE REGIONAL AUTHORITIES IN THE GAGAUZ AUTONOMY? A WHAT IS GAGAUZIA? ITS PARTICULAR TRAITS, PLACE AND GEOGRAPHY 1. First of all, the place and legal statute of Gagauzia is dictated by its geographic location on the territory of the Republic of Moldova, on its Southern part, which creates by default a number of interesting advantages: • Advantageous geographic-economic location, in the proximity of the Giurgiulesti Multifunctional Terminal on Danube, neighboring the fl uvial ports of Reni, Ismail and Galats. • Neighborhood with the regions of Reni, Bolgrad and Tarutino of the Odessa Oblasty of Ukraine. • Intensive commercial and business cooperation with neighboring districts of Cahul, Cantemir, Taraklia and Basarabeasca. • Modernized railroads and roads infrastructure, which connect the autonomy with the whole region of Balkan/Danubian region, as well as the Black Sea Area. 3 Chapter 1 • Facilitated access to the Danube river, which links together over 11 countries of the European Union. 2. Second, the Gagauzian region has its distinct political and cultural make up in the Republic of Moldova • With the foundation of the territorial autonomy of Gagauzia, on December 23, 1995, the region gained a wide recognition and visibility in the political system of the Republic of Moldova, including through the economic and cultural relations, regional integration and cooperation with other regions of the country. • Th e Gagauz region has its unique ‘birth-mark’ as a combination of executive and political assembly, which represent the population of the region via a Bashkan (directly elected by the population of the region), and a Popular Assembly of Gagauzia, entitled to adopt laws of regional importance and other normative acts. • Common cultural values and linguistic ties with representatives of Gagauz national groups located in Romania, Russia, Turkey, Bulgaria, Greece, Ukraine and Belarus. • Cultural diversity, based on deep and rich traditions, defi ned by tolerance, interconnection, understanding and cooperation with many other national groups and linguistic traditions, but preservation of Christianity, despite ancient Turkophone roots. 3. Human Resources • High intellectual potential and dynamic cultural life at the regional and community level. • Language diversity and good sense of several other languages: Russian, Gagauzian, Romanian, Turkish, as well as English, French and German languages. • Intense university functioning and traditions at the Comrat State University, existence of a number
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