The Moldovan government wished to accelerate the transition to a market-led economy. Jacobs, Cordova & Associates designed the centerpiece of Moldova’s recent regulatory reforms: initiation of radical regulatory reform by adoption on 16 December 2004 of a Law on Optimization of the Normative Framework for the Regulation of Business Activity. This “Guillotine law” became effective on 6 February 2005. The law laid out a guillotine approach to review and streamlined, over a six-month period, what was originally anticipated to be a total of 300-500 regulations affecting business activity, which turned out to be more than 1,200. This reform was intended to assist the government in rapidly simplifying the regulatory environment for businesses.
On 10 August 2005, the Council of Ministers adopted the Governmental Decision on the Registry of Official Acts, so that formally the guillotine fell. The Decision specified that:
- 426 formal acts were included in the new electronic Registry;
- 285 formal acts (or 35 %) were to be amended; and
- 99 formal acts (or 12 % of those relevant to businesses) were to be discarded. Many of these were simply illegal; that is, had not been published or authorized by higher-level laws.
In August 2006, the government of Moldova prepared a new comprehensive regulatory reform law that creates a permanent regulatory review in updating mechanisms and establishes a secure electronic regulatory for business regulations.
Moldova, Moldovan Ministry of Finance with World Bank funding, 2004-2005