This report argues that in the futureMoldova will need to develop a second engine of growth fromexports of goods and services. We argue that Moldova needsto resurrect agro-based exports, to raise their value byexporting to higher value markets, and develop serviceexports in order to provide job opportunities forunderemployed tertiary graduates. To be successful in doingso, the government will need to implement deep fiscal andstructural reforms to break the cycle, while takingadvantage of productivity gains. Much needs fixing, andMoldova's public sector does not have the capacity tofix it all. Moldova's leaders need to reach consensuson a comprehensive and sequenced growth and povertyreduction strategy. This report sketches out what such astrategy should contain. The author suggests that geographyand the Government's policy stance fundamentally shapeMoldova's economic growth potential and the path andpriorities that a growth strategy should follow. Governmentneeds to accelerate reforms so that the country can emergefrom the global crisis-induced recession with faster andless vulnerable growth. Business as usual will not suffice.The world's capital markets have become tighter,foreign investors more demanding, and export markets morecompetitive. In April 2009, Moldova's youth indicatedthat that they can no longer stand aside and watch Moldovafall behind, they have called for a politics of aspiration,and they will demand economic policies consistent with these aspirations.
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