Tobacco, wine, telecommunications and the Moldovan electricity industries are earmarked for privatisation. However, the success of these sales is questionable. In 1998, a similar privatisation plan was declared but the companies remain unsold. With a small population of four million and a shrinking economy, Moldova will attract few investors. Despite this, the Moldovan government has gained the help of the French bank, Credit Commerciale, to assist in the privatisation programme, and analysts are predicting an upturn for emerging market investment risk.
Economic instability is compounded by political instability.
The present system enables the majority group to establish a government. But the existence of numerous parties has meant that no one party has gained a majority. The present centre right coalition government is weak. Blighted by internal disputes, the formation of a strong cabinet has proved difficult. Disagreements and political infighting have prevented economic problems from being resolved.