Former U.S. Ambassador Heather M. Hodges Speeches

Moldova's New Path: Balance Sheet and Prospects

May 11, 2006

Ambassador Heather M. Hodges ASEM Auditorium 11 May 2006

Under ordinary circumstances I would have looked forward to being with you today.  But today is an occasion of great sadness for me.  It is not easy for me to face up to leaving Moldova after more than two and a half years here.  Recently in a magazine featuring influential women in Moldova I was listed under the category of “Women who love Moldova.”  I was quite pleased by that because indeed I love this country, which I have traveled from north to south, from east to west.  I love your cities and your charming villages, the rolling hills of the countryside, your culture, your folklore, your art, your food and your wine.  But most of all I love your people.  It is very hard to define the Moldovan character and certainly not something I would risk doing here, but suffice it to say that the warmth of your people is perhaps your greatest asset.

As American Ambassador here since 2003, I have witnessed many events and many positive changes. Occasionally there have been some discouraging setbacks and sometimes the pace of reform has been frustratingly slow. But overall, I am encouraged by the direction the country has taken, especially by Moldova’s efforts to be a part of the Europe of the 21^st century.

From 2003 to 2006

But before discussing what I consider Moldova’s successes or failures, let me put a historical frame around my time here.  I arrived here only a month before the tense days of the so-called Kozak document when Moldova’s leadership was confronted with a choice: to accept Moscow’s plan for Transnistria, which many observers, including my government, saw as unworkable, or to seek a better solution that would guarantee Moldova’s territorial integrity and democracy for all its people. There were, I am sure, many pressures, not the least of which was the temptation to have once and for all a solution to the Transnistrian problem, but Moldova made the right choice.  Last year the Parliament reaffirmed this choice, passing a law on principles for Transnistria’s status that emphasizes democratization and the maintenance of Moldova’s territorial integrity.  It is symbolic of how far we have come that I am leaving at a moment when Ukrainian cooperation and the successful deployment of the European Union Border Assistance Mission (EUBAM) are contributing to Moldova finally beginning to have control of its sovereign territory.

I arrived when Moldova’s relations with its neighbors were often tense. I remember being shocked at the rhetoric used against Romania and disturbed that Ukraine did not do more to help Moldova control its border.  Now to its west Moldova has a neighbor that is poised to help it make its way into the European Union and to the east Moldova has a neighbor that is an active partner in the effort to solve the Transnistrian conflict, a neighbor whose decision to support Moldova’s efforts to enforce its customs regime is changing the status quo.  At last Moldova is beginning to have control over its borders. When I arrived, Moldova was proud of its presidency of the Council of Europe and in November of 2003 hosted the summit of that organization.  Last week Moldova was accepted as a full member of the South East Europe Cooperation Process (SEECP). The latter organization may not be well known in the average Moldovan household, but it is in essence the “voice” of Southeastern European countries in Brussels.  I believe that Moldova’s participation in SEECP will over time positively enhance Moldova’s relations with its neighbors to the southwest and reinforce Moldova’s credibility as a candidate for eventual membership in the EU.

So with these brief notes on the beginning and the end of my time in Moldova – what I think of as the historical bookends of these years - allow me to comment on some of the events and successes.

A Vintage Year

I like to think of 2005 as a vintage year for Moldova.  A year in which the decision of President Voronin, the government and Parliament to turn westward began to pay off, a year when the process of reform gained momentum and started making a difference.

In February 2005 Moldova signed an Action Plan with the European Union.  It is a document that creates the foundation for ever-closer cooperation between Moldova and Europe.  There is no promise of entry into the EU in that document.  Moldova should not expect there to be.  Rather there is clearly outlined guidance on how Moldova can be a country more like the members of the EU.  In the Action Plan there are objectives that will not be easy to reach, but in the long run if Moldova works hard to fulfill them, it will be a stronger democracy with a healthier more prosperous economy.  But it should be clear to everyone that there is no faking progress and, like pulling off a bandage, it is probably much better to attack the pain of reform quickly and be determined never to slide back.  Obviously I am in no position to speculate on Moldova’s eventual entry into the European Union, but I certainly think Moldova’s desire to line up with the Southeastern European countries makes sense.  But this desire must be accompanied by an unswerving commitment to being every bit as qualified as the western Balkan candidates.  You cannot be lukewarm in this – the European Union must be taken by storm.  If you are looking for a shorter timetable on entry, you will have to be so obviously qualified that they can’t NOT accept you.  This will not be easy.  Moldova has gone through difficult times, and the future you seek will require still more sacrifices.  But I am absolutely convinced that if political leaders and civil society pull together, you can succeed.   

Returning to 2005, in March you held elections that were recognized by the OSCE as generally meeting most European and international standards.  Those elections were certainly not perfect, but they could have been worse.  Thanks to pressure from civil society (groups like the Coalition for Free and Fair Elections), from opposition political parties and from Moldova’s friends in the West, the government agreed to last-minute changes in media election regulations and the Central Election Commission made some adjustments in its procedures.  Belatedly, but critically, the government allowed a more open campaign that enabled voters to make a more informed choice.  Let this serve as a reminder for the campaign in Gagauzia later this year and for next year’s municipal elections – the government right now should be working hard to comply with all of the OSCE’s election recommendations.

Securing the Border

In 2005 the European Commission opened an office and the EU appointed a Special Representative.  As a part of the Yushchenko plan for Transnistria, the United States and the European Union were invited to join the settlement talks under the so-called 5+2 format, bringing greater balance to the table. There are no concrete results so far, but I believe that the greater awareness on the part of the EU and U.S. of the issues and the problems is extremely positive.   And here I have to again mention the EU’s Border Assistance Mission.  I believe that the presence of the EUBAM is making history.  By being in place when the Prime Ministers of Moldova and Ukraine agreed to implement the new customs regime, EUBAM became a witness to the enforcement of the agreement.  Moreover, for the first time ever, there is verifiable information about what’s going on along Moldova’s eastern border.  While some might be disappointed that so far there have not been dramatic discoveries of arms and the like, even the data gathered on the tons and tons of poultry, cigarettes, and alcohol going in and out of Transnistria reveal how open the border was to contraband and smuggling.  And the howls of outrage from Tiraspol, the self-imposed “blockade” orchestrated by the self-proclaimed authorities of Transnistria against the residents of that region demonstrate that the regime in Tiraspol and its supporters have no intention of living under the rule of law.  And thanks to EUBAM, both Ukraine and Moldova will benefit from the analysis of the problem both in terms of law enforcement and increased revenue from reducing smuggling.

Reforms:  Achievements and Challenges

In 2005 Moldova began repairing its relations with international financial institutions.  This recently culminated in an agreement with the International Monetary Fund, and I hope that soon the government will be able to complete negotiations with the Paris Club of creditor nations for a restructuring of Moldovan debt. Continued reform and a commitment to free markets are vital for ensuring Moldova’s economic future.  The United States will continue to support your efforts to modernize the agricultural sector and meet European quality standards as part of your efforts to diversify markets for Moldovan exports.  You should never be at the mercy of a single country that can slam its doors to your exports or turn off your energy supplies for political reasons.

Another major step forward, and one about which I am particularly pleased, is the decision by the U.S. Millennium Challenge Corporation to invite Moldova to submit a proposal for a “threshold program.”  The purpose of this program is to allow a country to address those areas in which it fails to meet the criteria for a full Millennium Challenge assistance grant, which could be worth hundreds of millions of dollars.  In the case of Moldova, the one area where it must make progress to qualify for full assistance is the fight against corruption.  According to the World Bank, corruption is the single greatest obstacle to economic and social development.  Left unchecked, corruption is a plague that cripples nations.  It impoverishes them, undermining the transparency and trust in institutions that are essential to a stable, functioning and prosperous democracy.

Reform of the judiciary is a critical part of this effort.  Not only because no country is really democratic if its laws are not enforced fairly, but also because foreign companies will not invest in countries where the judicial system cannot or will not protect their rights.  Moldova’s judicial system must be reformed to make it more professional, more transparent, less corrupt and less subject to political interference. 

During my time here, Moldova made some progress in fighting corruption.  The implementation of the so-called “Guillotine Law” is a good example.  This law, which led to the review of hundreds of regulations and the elimination of almost 200 of them, has helped reduce the number of stamps and signatures required to operate a business in Moldova and, thus, the opportunities for bureaucrats to seek bribes.  It has also made it easier, and thus more attractive, for businesses to invest here.  Over time, an improving business climate will lead to more jobs and a more prosperous future for all Moldovans.

Another good example is the reform in the Customs Service, including the introduction of new monitoring systems and the rotation of officers around the country.  These measures helped reduce corruption and resulted in a sharp increase in Customs revenues.  Sadly, the Director of Customs who put these reforms in place, Nicolae Vilcu, passed away just two weeks ago.  I hope that his successor will carry on his legacy and ensure that the reform process keeps moving forward.

I am generally optimistic that the Moldovan team putting together the MCA threshold program, under the capable leadership of First Deputy Prime Minister Greceanii, will be successful, but no one should think this will be easy.  Moldovan society does not fully understand the problem and dangers of corruption, some institutions are loath to change and one in particular, one specifically created to fight corruption, is extremely reluctant to perform like a modern organization. 

Progress has been made, but more must be done in the fight against trafficking in persons.  Very good new legislation has been passed and we are working with the government to establish a new Center for Combating Trafficking in Persons.  But all the laws and centers in the world will not help if people are so desperate for a better life that they will risk everything, and if victims of trafficking are treated with contempt rather than compassion.  For that reason we have funded several initiatives to create transitional living centers and provide job training, psychological care and other assistance to victims and those at risk.

You all know that the media has received a lot of my personal attention so it  is one of my greatest disappointments that I can only point to a few areas of progress.  Yes, the new draft audiovisual law is an improvement over the current legislation but it still needs work to be brought up to European and international standards. The government has affirmed many times its commitment to a free and independent media, but unfortunately, we still have seen little real progress in this direction.  Teleradio Moldova, which is nominally a public broadcaster, still shows a clear and measurable bias in favor of the government and the ruling party.  Parliament should ensure that the audiovisual law incorporates the recommendations of Council of Europe and OSCE experts, but that is not enough.  Even the best law is useless if it is not implemented and enforced properly.  The government must take real steps to end its influence over public television and radio, so that they can operate as truly independent, pluralistic and unbiased servants of all the people of Moldova.

The U.S. and Moldova

There should be no doubt that ever since Moldova became the sovereign nation that it is the United States has known exactly where it was on the map.  Since establishing diplomatic relations with Moldova in 1991, the United States has lent its assistance to help bring about many of the positive changes just outlined.  Our economic and military assistance since 1991 has totaled well over half a billion dollars.  In addition, the United States has implemented programs to strengthen democratic institutions by strengthening and mobilizing civil society, building the capacity of local governments and political parties to identify and respond to the concerns of the people, educating government leaders on security issues and principles of democratic government, and supporting free and fair elections.  We have helped in economic reform and agribusiness development.  Our educational and other exchange programs have brought hundreds of Moldovans to America, and many Americans to Moldova, to learn about one another, our different ways of life, and our shared dreams for the future.

It is hard to say goodbye when so much is happening.  It is hard to say good-bye to my very committed embassy staff, both American and Moldovan, who have given me so much support in my work here. And thank you to both official and non official Moldova for being open to me and allowing me to be a part of your history.  Along the way I hope that, in turn, I have been able to help you move toward a brighter future. 

America and our partners will always lend a hand to those who seek freedom.  But ultimately the path this country takes is up to you.  And let me clarify that I am not just talking to the leadership of the country.  Civil society, the young, the old, political leaders and average citizens, must participate in making this a stronger country where Moldovans will want to stay or return to.

The status quo is changing, and not just on the border with Ukraine.  There are new internal challenges to the Smirnov regime.  Romania has renewed its commitment to help Moldova.  Europe is becoming more interested in, and open to, this country.  Your parliament has unanimously declared its commitment to seeking a European future.  

If there is one thought I want to leave with you as I conclude my assignment in Moldova it is:  Seize this opportunity.  The door is open to you, if you want to walk through it and take your place in the family of European democracies.  It will not be easy, it will not be automatic.  America and our allies and partners will help you, if you want us to.  But the choice, and the future, is yours.

Multumesc!  La revedere!