Former Ambassador Pamela Hyde Smith Speeches

Ambassador Pamela Hyde Smith's Remarks at the opening of a Foreign Investment Seminar

June 18, 2003

Minister Odagiu, ladies and gentlemen: It is a pleasure for me to be here today and to participate in the opening of this Foreign Investment Seminar sponsored by the Moldovan Export Promotion Organization, the Overseas Private Investment Corporation (OPIC), the Department of Commerce's Business Information Service of the Newly Independent States (BISNIS), and the United States Agency for International Development (USAID).

I am sure that all of you are familiar with the remarkable economic growth rates many of the Asian Tigers, including South Korea, Singapore, and Taiwan, enjoyed in the 1970s and 80s. An important component of these countries' economic growth was increased levels of imports and foreign direct investment, which these countries then used to produce exports. The exporting industries generated jobs, prosperity, and foreign currency earnings for these nations. I mention this to highlight the multifaceted benefits of trade. Imports can simply provide consumer goods; or imports, combined with foreign direct investment, can help create indigenous economic growth in Moldova.

Trade relations between Moldova and the U.S. are under-developed. This is due in part to the fact that many U.S. investors and businessmen just do not know where Moldova is. Another reason is geographic distance. One is a factor over which we have little control. Another factor, which the Moldovan Government is able to control, however, is the business climate. If Moldova is to overcome the disadvantages I've described - lack of knowledge and geographic distance - Moldova must offer potential investors an attractive business environment. This means business regulations and laws that do not change abruptly; recognition of free-market forces as the primary engine of the economy; and openness towards international trade. While Moldova has made great strides in moving towards a free-market economy, there is still room for improvement.

Moldova possesses many assets that make it attractive for foreign investment. The Moldovan workforce is highly educated and trained; the wage structure is competitive; most Moldovans are multilingual; and Moldova is culturally comfortable in both the East and West. But, in order to capitalize on these advantages, Moldova needs to create an investment climate that is better than your more well known populous neighbors.

Tomorrow and Friday, I will participate in the first U.S.-Moldovan Joint Economic Task Force. This inter-governmental forum will address a broad range of economic issues, including macroeconomic and financial policy; U.S. Government assistance priorities; Moldova's integration into the regional and world economy; Moldova's business environment; and attracting investment. A major focus of the Task Force will be the need for Moldova to improve its business environment and create a more attractive investment climate. We look forward to moving these issues forward, in cooperation with the Moldovan Government, to promote private sector growth.

At this seminar today, U.S. Government agencies that promote U.S. investment and exports have the opportunity to present their programs and services to you. While some of you may have already benefited from these services, I hope that you will take this chance to become better acquainted with BISNIS, OPIC, and USAID programs, and with their respective representatives who are present today.

Thank you very much, and best wishes for a successful seminar.