“PARE 1 +1” or adding by subtraction
They worked abroad, and the money raised there invested at home, hoping for a better future. Nearly 300 business that led to the creation of over 1,500 jobs, have been initiated in the last three years, with the support of the Program for Attracting Remittances in Economics “PARE 1 +1”, launched in Autumn of 2010 by the Government of Moldova. The aim was to motivate Moldovan migrant workers to return home and invest the money earned abroad, in local businesses. “It’s a good program, but it would be good for it to really be 1 +1”, say some beneficiaries.
Eugen Rotaru has returned home after working 11 years in Italy. Although, financially, he was doing well, Eugen says that there he could not implement all his skills, and was also was tired of being homesick, so he decided to return home and invested everything he earned in a business of producing straw pellets. Through “PARE 1 +1” he has also obtained a grant of 200 thousand lei, money offered as support for the purchase of equipment. “It’s a welcomed help, but it is not enough. For this money you can buy just a drier, but, beside this, there are more needs without which we can not do anything”, says Eugene. I have invested money raised many years, and beside them also money won from the wedding. Till now we do not have losses, but neither any profit yet. We want something more and I would also like the Ministry of Economy to somehow be involved and promote local producer. Now we sell pellets in Gagauzia, but it’s hard to convince a man to go from wood to pellets. Promotion is very difficult. It is a new product and it’s hard to explain to a peasant that straw briquettes have a calorific value greater than wood. For example, one ton of pellets is equivalent to five blocks of wood. It reaches 1800-2000 lei for a ton and it is ready to be put on fire. Maybe it’s possible to make money at home, but you must be very optimist”, added the young entrepreneur.
“Any charity from state is hardly given”
Through this program has also received support the family Raileanu from Ialoveni. Their enterprise produces fodder, that they sell to farm owners, and people in neighboring villages. The one who returned home from abroad was the wife, after many years working in Italy. Even though they enjoyed the offered support at the time, Valeriu Raileanu says that after it no longer wants to appeal to the state, due to bureaucracy. “This contribution was welcomed, because we were short of money and it helped us. We never appealed after that, because to us any charity from the state is hardly given: traveling, documents … but for us, time is important. A little is offered, but the requirements are very high. I received the money after I bought the equipment. It would be good if this program would really be 1 +1. For one invested leu to be offered another leu, but here is not offered more than 200 thousand lei. Anyway it’s a support, but not enough to start a business”, says Valeriu Raileanu.
“PARE 1 +1″ I would say is the best program that we have now in Moldova. If here we are given something, in small or large amount, like, 200 thousand lei, we do not have another program that can offer you support. Maybe just a lease”, says Andrei Ursachi, a young entrepreneur in Orhei town. “The downside is that this money are spent mostly on custom fees, when bringing equipment from abroad. Here, are the drawbacks. We think that, once we have received this support from the state, it would be good to be exempt from VAT, but this way, we imported equipment in the country and I gave back to the State this money, for VAT,” said the young man, who invested in a production of line of lighters from plant debris, and in the future plans to plant energy crops, to ensure his own raw materials.
Most beneficiaries – from rural areas
“We must support those who want to return home. This means to give them jobs or to those who have financial intelligence to offer the opportunity to start a business here”, said Economy Minister Valeriu Lazar, at a conference entitled “Together we create the future at home!”. “The major share of those who have benefited from the support are from rural areas, where in first place we must develop businesses, because from our villages people left and there they would like to have a job with rising wages. During this period, were launched over 300 businesses in over 200 locations. Our task would be to implement a project in every locality in Moldova. This is also an example about what European integration means – support programs of the European Commission for those who want to develop their business. We must promote the cult of starting a business and every success story has a strong persuasion”, added the minister Lazar.
The program “PARE 1 +1” was initiated in 2010 and supported by money from the public budget, but since 2012, the project is funded by European money. “Tourism is tourism, but we create the future at home anyway”, declared at the same event, the Head of EU Delegation in Moldova, Pirkka Tapiola. “Small and medium enterprises are the backbone of a modern economy, but at the same time, the life of these businesses is difficult anywhere in the world, because every financier that is expected to provide financial assistance to a company wants this to develop. It is very important to trust the company and support that comes from the EU for this sector is an important part of the European approach”, said the European official.
“If the program is good, why isn’t there sufficient demand?”
“We found that, on the one hand, this project is extremely necessary, beneficial and encourages our citizens to return home and start businesses. We need to understand that investment attracted by the program are small compared to remittances, but it is important to attract home not only financial remittances, but intellectual remittances”, thinks the prime minister Iurie Leanca. This, however, left some questions for those in the field. “If there is so much potential and the program is good, why now there are not enough requests from representatives of the Diaspora? What are these constraints, because of which some businesses failed? Is it about the business climate in Moldova where should be taken more actions? I hope that, through the program of elimination of constraints in business, succeeded to identify systemic problems that stand in the way of those who want to invest at home and I hope that during this year we will managed to eliminate them”, added the first Minister.
The program “PARE 1 +1” runs until 2015. According to data published by the Organization for the Development of Small and Medium Enterprises (ODSME), over 1,500 people were employed or maintained employment at enterprises created from money invested by Moldovan migrant workers, of which about 40% are women and 35% are young people. The program “PARE 1 +1” represents about 200 million lei and aims to different areas of activity: agriculture (greenhouses, cold storage, animal farms), industry (bakery, building materials, furniture, lighters), services, tourism, construction.
Raisa RAZMERITA
