Gheorghe Rusu, Ph.Dr.

in Economy, university professor of State University of Moldova

Grigore Rusu,Ph,Dr.in law,conf.of SUM,
Bumbu Mihai, Master’s Degree, State University of Moldova
Gangan Sergei,Master,sDedree,SUM

Summary: Giving up on the reform of administration and of public management, contradictory,

inconsistent, fragmental to the principles elaborated and promoted to new theories and practices of
the currently public management, to the institutional system and European and International
Legislative Framework of reforming and development have led to the deforming of relations and
diminution of the degree of satisfaction of public interest determined by population’s needs and to
the reduction of administrative and legal capacities, to the increasing of administrative
embezzlement and coercions of social order.
The reforms of traditional administration and public management are found more in the
achievement of some anti-scientifically, “non-uniforms” steps, of an inefficient vision, in the
conditions of irresponsibility for obtained, pluri-valent, ambiguous results, of conception of the
strategy on reform of public management reflected by international, legislative and institutional
theories and of European Union. These processes have led to the incapacity of the State to define
own principles and priorities of reforming and increasing of the quality of public administration for
achievement of objectives, to have a managerial system and institutions of public administration
able to transpose, implement and transform in reality the execution of performance criteria and of
European Standards. Also, the problem of changing traditional public management is worsening,
from strategically point of view and of catering of State’s qualitative services, if we mean the
achievement of a range of European values and principles, inclusively the veracity and
predictability, opening and transparency, responsibility and efficiency. In the result is complicated
more and more the solving of stability problems in public functionality of neutrality and fairness of
political, economical and public system.
The lack of an unique Strategy on reforming the public management and administration during
whole period of transition has created a vicious administrative, social-economical and political
situation, also a continue identification of searching of the strategy concerning the reforming of
public management, of geopolitical association and respectively, of choosing the reforming model,
of legal and administrative capacity, which will correspond to European Administrative standards.
In literature the problems of reform of public management and public administration are
differently studied and in the biggest part are separately studied. Some analyze the deviations of
public administration management from the values and principles of European and International
currently managerial theories, and propose reforming recommendations of them. Others, study the
reforms of central and local public administration separately from public management and highlight
the deviations from European and International legislative and/or institutional framework, analyze
the violations of Law, corruption and contradictions between Governmental structures, the
efficiency of reform measures of public administration and legal and administrative capacity to
implement the “aquis communautere” which signifies that will be supervised that the results
correspond to European Standards. In practice the public administration is analyzed as an apparatus
in which is conducted a totality of activities for elaboration and application of normative and
methodological acts, regulations and political programs. On the basis of their opinion, the public
administration constitutes the integral part of public management, which has as goal the creation of
management system within public institutions for achievement of objectives of maximization of
effects with minimal efforts, in the conditions of assuming the responsibility for obtained results.
These two elements and basic parts of national administration were not integrated in necessary way
in the traditional administrative system and also were not integrated in reforming process of
administration in 2005-2020 years. The reforming of administrative system includes, on the one
hand, the qualitative changing of processes, procedures, normative acts and properties, on the other
hand, the reforming of public management which includes activities oriented on some values which
are focused on citizen, his security and assurance, increasing of living level of the population.
In the article is performing, on the one hand, an increase of interactions and powerful
interdependence between radical and synchronically changes in the public administration and public
management, and on the other hand the administrative, legal and institutional nature and capacity to
implement the “aquis”. Only the radical or simultaneous changes in these two elements and parts of
the system of public administration will assure and create the fundaments necessary to public
interest satisfaction, will diminish social-political pressure, will highlight the local economical
potential from “coma”, and will highlight the efficiency and influence of these relations and
interactions. For example, the extension of lack of poise in the public management, in their results
and objectives, between different public institutions are provoked by political, administrative, legal
and institutional incapacity to implement reforms of economical stabilization and corruption
combating, theft of billions, money laundering and other economical offences, and these negative
phenomenon at their range, form the financial basis of raising of administrative and legal monopoly
and appearance of the oligarchy.
In the article is pointed out the new Strategy in which is combined the changing solutions of public
management in combination with increasing of the quality and efficiently implementation of
reform’s measures of administrative, legal and institutional capacity of supervision and prevention
of economical, political and social lack of poise and counteraction of corruption.
The strategy and actions result from the premise that Governmental Administration “should be re-
invented” due to the fact that the traditional administration is unprincipled. The solutions of
traditional Government, of public management and administration to a problem are usually so bad,
as the problem itself. The more the administration "plans" and increases the volume of
"regulations", the harder it is for the economic agent to plan and direct the activity. The public
administration is not a cow which you feed in Eden and milk on the Earth. The principles and
criteria of reform of administrative system are deducted from issue which is always the same,
Government and Market. There is no other solution. On the basis of scientific reform of the
administration it is necessary to find the laws that were to be discovered rather than is decreed by
traditional administration. The strategy results from solving the issue of real power division,
because the administration with its traditional institutions exercising power is under direct and
corrupt influence of the politician. In the conditions of the Republic of Moldova the political power
is absolutely under oligarchy form, which expresses an absolute corruption. Finally, we trust in
public administration and we consider that the currently Government has in the reforming strategy
of 2020’s administration interested initiatives, however the Civil Society, private real sector,
understood as a big market are always that who determine the content of the activities within the
administration. All these in combination with mobilization of resources in order to create legislative
and institutional framework will create conditions necessary for achievement of a measure system,
inclusively the creation of an integral justice and political independences, real guarantee of
ownership right, organization of a loyal economical competition, decentralization of power in the
State, reduction of public regulations and simplifying of administrative procedures, adaptation of
social-economical system to the economy of modern and functional market. The objective of
creation of an entrepreneurial administration presupposes the de-monopoly and de-oligarchy of
social-economical circuit, efficiently and adequate execution of market’s requirements of
administrative and structural changes, radical reforming of institutional and business environment,
reforming institutional framework and promoting mechanisms on market in the place of that
bureaucratic one, stimulation of productive consumption, of technical progress and of work
productivity as well as and the attraction of foreign investments, reduction of migration rate of
active workforce. These presupposes result from the necessity of creation of an efficient
entrepreneurial Government, which will contribute at saving the State from the captivity,
depolitisation and increasing independence of State’s institutions and from implementation
requirements of social, economical, political and administrative European stand
Key-words: reform of public administration, public management, instability, monitoring and
coordination of reforms, captivity of the State, Entrepreneurial Government.
Introduction: The theoretical methodology and practical principles of the strategy for
reforming and formation of the economy on mixed market in the transition period have constituted
the conception of pseudo-reform of administration and pseudo-development of public management.
These conceptions include the dualism and separatism in the activity of public administration from
the point of view that those two basic elements of reform (public management and public
administration) were not necessary integrated and simultaneous organic developed in the traditional
administrative system. During transaction and social-economical development were used various
models and ways of reforming of the Government and respectively of creation of economical
system on mixed market and of achievement of reform’s objectives.
In the single hierarchical system of public administration authorities and in the reforming process of
its, are executed two policies and concepts diametrically opposed from the point of view of forming
model and of Entrepreneurial Government and of administrative managerial system development,
and of creation and functioning of the economy on mixed market and namely: an European
managerial model based on democratic principles, immanence of private property, loyal
competition of markets, guaranteeing of fundamental human rights, free initiative and other unitary,
administrative, monopoly, oligarchy model, on the basis of Euro-Asiatic model, with destructive
implication of the State in social-economical relations and affairs.
In reality, in transition period, the public administrative system in its activity, under cover of
various model of management’s development and pseudo-reforming, has led to a formation of a
monopoly priority economic structure, to the coercion of private sector and to the deforming of
social-economical and legal elements and relations and harassing of affairs freedom, to the mass
media oligarchy (70% of mass-media is in the hands of oligarchy) and forming of an anti-loyal
economical structure on the market. Public TV channel, which belongs to oligarchy, in official way,
publics that who holds the information that holds the power in the State.
At the same time, the public management as component part of public administration hasn’t
included the creation of a system of efficient managerial reforming within public institutions for
achievement of reform’s objectives and hasn’t included assuming the responsibilities for obtained
results. During the 25-year transition period, the public managers and the administration, as a
whole, did not bear any responsibility for the total dismay in society and the destruction of the
economy and the country, expressed in the deformation of the structure of the economic system, the
bankruptcy of small owners and family households; limitation of information and free access on
market; for monopoly and oligarchy of financial system (70% from monetary mass is controlled by
owners of 3 Banks), total control of economical political and information circuit. Current and
previous governments have no responsibility for pseudo-economic growth that has not been based
on the concentration of renovation investments of consecutive priorities, but have taken the easiest
and most destructive way of increasing end-use growth, stimulating aggregate demand and
consumption of remittances; have extended in considerable way sector, social-economical lack of
poise; have directly implied in economical and social relations and system in that real one and
dubious; have increased the destructive role of the administration at all levels by direct occupation
with business, tender, license, privatization activities.
A big part of public authorities is not responsible for territorial deformations by implementation of
mechanisms of inefficient and party redistribution of incomes designed to territories and for bribe
(currently role of these increases because of considerable increase of penalties and fines) of human
resources and of small and medium business, for possession of banking capital and of that real in
the results of “raider “attacks for deformation of private economical interest and for social disorder.
The Government should be responsible for spread of corruption between different types of parties
who have created the so called “European Government Alliance” for corruption, which during 5
years permanently have negotiated and have traded the sector administration (Ministers, State
Agencies, Departments) and have divided the influence fields in the State’s policy and in exercising
of general conduction of public administration through which they steal and launder money from
banking system, stealing different extra-budgetary funds (road fond, subventions, grants funds, also
bankruptcy and privatize in symbolical way the property of State).
One can imagine the level of public management, quality of government and the responsibility,
transparency and integrity of this government, if ex-prime-minister and at the same time Head of
Party who for years was performing administrative functions in the State, was convicted of
corruption. During Communist Government, it was elaborated and implemented the first Strategy of
reforming public administration in the results of its achievement instead to be formed an
entrepreneurial government and a market economy, affairs system and free relations, has been
expropriated a range of private properties, has been “knocking” the Law in the profit of bureaucratic
administrative system, has been returned to the State the “Banca de Economii” trough which were
stolen and laundered billions of currency from the country, it was monopolized financial system and
real capital and was subjected everything in the hands of oligarchs administration. Moreover,
increased the level of corruption directly in the structures of the administration, by making secret
acquisitions by the sector administration, by creating free zones according to the political criterion
for the central and local public affiliated companies, through the formation and use of the different
benefit schemes, the exaggerated administrative remuneration of the public employees in terms of
increasing labor productivity. The corruption is spread directly in households structures of public
administration within which are elaborated tariffs and normative of tents of time higher than
necessary performed work. Through these and other methods the corrupted public administration
entered in all social-economical elements and structures at different levels.
In the result of corruption extension and pseudo-formation of entrepreneurial Government have
been accelerated the monopoly process and union of economical potential and circuit with that
political. The public management hasn’t able to assure the economic growth, to attract and to
concentrate the investments and accumulations in the priorities of real economic sector, to avert the
exhausting of incomes already obtained, to avoid disproportions and social-economical crisis.
Moreover, under cover of oligarchy and legal system, the central administrative groups have
supported the conversion of billions of MDL in Euro (borrowed to “Banca de Economii” of
Moldova by the National Bank of Moldova under guarantee of corrupt government), by the
swindlers of national level and their transferring in off-shor, fact that lead to collapse of banking-
financial system, has enlarged the prices at goods of first necessity, has essential depreciated the
national currency and respectively, purchase power and of investments of accumulations of
economical agents and of population. The problem worsened moreover because the achievement by
the government of development policy of extensive type has diminished the growth of real PIB and
has “abraded” the economic potential only in 2000-2016 years the fond of amortization with
approximately 50 billion MDL, instead to be directed to the renewing of technical apparatus, it was
used for replacement of used moral technical potential, not attractive for professional workforce,
which has created premises for considerable migration of active workforce, of foreign honest and
efficient capital and of local one. Anti-reforming public administrative management boosted the
significant extension of lack of poise and of instability of economical, financial and social system,
is reduced the volume of investments in innovation priorities, is increased the rate of unemployment
and big migration of workforce.
The reforming policy and principles of public management and public administration concerning
their solving and other problems are partially and fragmental stipulated in Reforming Strategy of
central public administration of the Republic of Moldova from 2005 and in Strategy on reform of
central public administration for 2016-2020 years. At the same time the reformed policies don’t
highlight the clear objectives of these Strategies and is highlighting only the management which
deals with public finances, inclusively macro economical forecast, execution of budget, financial
control and management of human resources.
A new Strategy on reform of public management and administration points the actuality of
implementation and promoting of such reform, of which objective to be, not the changes because of
changes, but to be assured economic growth and stable durable development and which will
guarantee the quality of live at European medium level. The achievement of these objectives will be
possible by an “entrepreneurial” government, which will real guarantee in practice the right to
property and to economic freedom; will re-technologies the economical potential and will pass to an
economical structure adequate to the modern market economy. The progressive management of
entrepreneurial government will be based on diffusion (auctioning) of private property; on forming
of a system of free, transparent market with a loyal competition; on de-monopoly of the economy
and the oligarchy and real freedom of State’s Institutions from captivity; on de politization of sector
administration and assurance of functional independence; on balanced development by financial,
monetary and fiscal stabilization of current account under general balanced model IS-LM.
In the conditions of social, economic and political instability; a pseudo-reforming public
administration; entrance of corruption in all economical elements and relations is highlighted the
increasing role of theories of modern and actual management of the international legislative
framework, for efficient implementation of radical reforms, inclusively, separation of power
branches for solving strategic problems of durable economic development and current issues of
institutional, legislative, legal, structural, financial order. The reforming of public administration
and management for durable development based on European Standards and International
Legislation, on the values of real separation of the power branches in the State and on real
achievement of European vector and integration in the family of European Union constitutes the
unique chance of survival of the Republic of Moldova as independent State. At the same time, a
barrier in the achievement of the Strategy is constituted by social-economical destabilization in the
result of theft of billions from Banking System, stagnation of innovations and in general of
technical progress in real economy, tensioned political and social-economical situation, the
instability between economical sector and social field, introduction of economic sanctions with
political nature from the part of Russian Federation, as well as some limits from international
structures, inclusively FMI and EU.
The above mentioned problems, with which currently is faced the traditional public administration,
determine the actuality of implementation of a new Strategy of durable economic development
through prism of cardinal reforming of actual public management and administration and
implementation of criteria from Copenhagen and Madrid, for alignment to actual administrative,
social, political and economical standards. In order to readdress the situation on durable economic
development and stabilization, the growth of the capacity of execution and measurement of
performances of public administration in function of obtained results and not in the basis of volume
and enters values. For achievement of objectives and implementation of standards of European
Administration and of economic system of free markets, real separation of power in the State and
European Integration is required the political will and radical and urgency measures from the
part of all public administration structures and authorities. At the same time it is necessary the real
monitoring of these processes and creation of a Moldavian- European structure of coordination and
supervision of the process of efficient implementation of reform’s measures.
Basic content. The elaboration of a Strategy on reform of public management and administration
for durable social-economic development, execution of European Standards in conditions of social
disorder and destruction of economic potential, oligarchy and captivity of State Institutions will be
difficult because its presupposes the correction and anticipation of social-economic dis-balances by
removal from power the oligarchy corrupt system. Only in the case of removal of oligarchy system
we can talk about possibilities of achievement of performance measures of public institutions. The
social-economic stability is impossible without separation of powers and democratization of
functions of State Entrepreneurial Institutions. The avoiding of social-economical crisis provoked
by realization of pseudo-reforming policies and deepen by theft and laundering of money by the
corrupted government, under aegis of oligarchy, is very complicated and of long-term, because the
corruption and economical embezzlement affect in big proportions all administrative institutions
and elements of economical system, inclusively the real economic sector, affairs, insurance system,
road funds, banking-financial system of acquisition.
The strategy and new public management of reforming should take into account the fact that the
solving the issues of durable development is complicated, because it is necessary and very
problematical the exceeding of vicious social and economical instability and disproportions,
embezzlements and laundering of money and corruption, because these, due to total poverty and
oligarchy, have a permanently character and are reproduced in political, legal, social-economical
relations, in financial relations, in interactions between economical agents and sector administration
at all levels, represent social danger which threaten the national interest and State’s security. The
expansion of economical embezzlements, theft and laundering of money, spreading of corruption in
all governmental, justice, mass-media, legislative structures, represents the financial and legal
material of the oligarchy to captivate, establish, control and maintain structures of sector public
administration, Prosecutor’s Office, Justice, Legislation, mass-media in their hands.
The elaboration of Reforming Strategy through prism of cardinal changing of economical system,
of public administration and management and forming of an entrepreneurial government of
European type points the highlighting and solving more complicated problems and obstacles which
hinder the intensive development, reforming and achievement of new objectives. Identification of
necessary solutions for exceeding these problems needs the professional analysis and
implementation of principles, theories and models to the new actual public management and values
of legislative and international framework for alignment to European economical, social and
administrative standards. The Implementation of objectives of the Strategy needs the realization in
practice of requirements of managerial theory and models of conducting of general economical
balance in accordance with AS-AD and IS-LM models, of various concrete types of management,
inclusively: balanced management of monetary market; conducting and balance of market of
productions and goods factors; management of efficient use of work.
The Strategy of durable development will take into account the doctrines of neoclassical
management and concepts of Lorenz von Stein, Charles – Jean Bonnin and Alecsandre-Franciois
Vivien, Henry Fayol and Frederic Taylor, the model of general conducting of J. Keynes and that of
monetarist of M.Friman and S. Fisier, models of balance management of Walras-Wald and Arrow-
Debreu-McKenzi.
At the same time the elaboration of the Strategy will be based on concepts of Henry-Kester and
Chris Painter reflected in the work “Challenge and Change of the Management in the Public Sector”
and of Kieron Walsh exposed in the monograph “Public Service and Market Mechanism”. In the
reforming Strategy of public administration, of social-economical stabilization and renewing it is
necessary to highlight and achieve the component parts of these theories, the principles of
Institutional Framework, such as recommendations of European Councils from Copenhagen,
Madrid and Luxemburg; European Court of Justice; Decision no. 91/308 from June 10, 1991 of
European Economical Council of EU; Directive 2001/97/CE of European Parliament and of
Council form December 04, 2001.
Within new reforming Strategy of public administration for social-economical stabilization and
durable development, the renewing it is necessary to highlight and achieve the objectives of new
management model for public institutions of Ferham and Horton, inclusively the modern
approaches formulated in “Managerialism (Pollitt, 1993), “New Public Management (Hood, 1991)”
and “Public Administration directed to market” (Lan Zhizoung and Rosenbloom, 1992), A
mandatory condition for Strategy of durable development is constituted the reflection of concepts of
Barzelay exposed in “Post-bureaucracy paradigms” and namely of principles of public management
described by the Americans Osborn and Gaebler in the work “Entrepreneurial Government” where
is beginning with grounding of the concept that governmental administration “should be re-
invented” and is finished with analysis of basic principles and values of public management at the
level of governmental administration.
The new strategy of balanced development should be based on following principles and values of
public management:
- Promoting by the administration transparent competitions between economical agents
producers of goods and services;
- Development of participative dimension of public management through exercising of
control outside the bureaucratically system by the civil society;
- Measurement of performance of public institutions depending of obtained results and
objectives and not on the volume of elaborated regulations, acts and laws and enters values;
- Consideration of service beneficiaries as customers to whom are put on disposal a various
offer of goods and services by different producers;
- Accentuation of foreseeable dimension of public management of anticipation of the services
content and of prevention of appearance of some problematical situation;
- Concentration of energy in attracting and gain of resources and not for consumption of
these;
- Achievement of objectives by the public institutions derived from mission and not for
application of some normative acts, regulations and methodological norms;
 - Des-centralization of authority and encouragement of participative management;
- Promoting mechanism on market instead those bureaucratically;
- Coordination and integration of elements of the public service system provided by public or
private sector for solving of issues specific to the society.

Within new Strategy it is necessary to highlight and to achieve the objectives and limits of
Committee from Basel at financial policy and conditions imposed by FMI and to take into account
the managerial measures of balance of economical-financial system accepting principles, such as
balance management of the aggregated demand and offer, on the one hand, and of PIB, of monetary
mass and currency reserves, on the other hand. The solving of these and other balance problems
needs the use of restrictive hypothesis and strategically interaction between agents of plays theory.
The efficiency and quality of new Strategy will be possible in the result of radical improvement of
public management, fundamental changes of public institutions’ functions, increasing of the
managerial responsibility and their orientation on objectives and results of the reform. The public
managers should be appreciated in function of the capacity to solve general social problems and
firstly specific to increase life quality.
The implementation of reforms on long and medium terms needs the perfections and concretization
of functions of currently Strategy on public administration reform for 2016-2020 years, of National
Council for public administration reform of Implementation Center of Reforms and of
Administration Council of the Implementation Center of Reforms. Instead of these acts and
bureaucratically structures it is very rational to create a Center of Reform of Public
Administration and Management and of creation of an Entrepreneurial Government
(CRPAM and creation of EG). The main functions of CRPAM and creation of EG consist in
cardinal reforming of actual bureaucratically and traditional public management and administration
and creation of an entrepreneurial government for achievement of finale objectives and namely:
economical renewing and growth and intensive development, assurance of places of work and
reduction of migration level, economical and financial balance, increasing of living level of
population at the European Level.
This Center firstly should have authorization of supervision of macro-economical balance, of
control and evaluation of dis-balance of banking and budgetary system, of monitoring of
transparency of auctions and privatization, of economical and financial transactions. At the same
time the Center will supervise and improve the quality of structural reforms; will elaborate criteria
and principles of economical and financial policies; will propose legislative acts for achievement of
reforms; will coordinate and cooperate with international institutions for external expertise and
assistance in order to implement reforms; will evaluate capacities of fulfillment of reform’s results
in accordance with European Standards. The achievement of the problems by the Center is possible
due to realization of foreseeable, organizational and coordination, administration, motivation and
control-evaluation functions.
The structure and general functions of the Center are reflected in Scheme no. 1. The functions at
second stage will be concerned to monitoring of lack of poise and maintenance of the macro-
economical balance tendency, to implementation of correction measures of disproportions, to
promoting and implementation of European Standards of population’s life, to intensive and durable
development,to increasing of life’s quality.
The rapid and asynchrony changes of the structure and of local economical functions and of the
European, lack of synchronism in Moldavian-European relations will create barriers: - in reforming
of public administration; - in economical durable and intensive stabilization; in avoiding in time of
lack of poise. In the Republic of Moldova in transition period the efficiency of National Strategy of
Development and Reforming Strategy of Public Administration and of Center of Implementation of
Reform was insufficient because were bureaucratized and have functioned and functions as an
irresponsible Body because is completely supposed to the will of politician. Moreover, the actual
Government (and not only it) is total dependent by oligarchy and obviously it hasn’t competence
from the supervision policy of economical stability and combating of corruption, not mentioning
the real responsibilities of control and liability. For example, ex-governor of National Bank of
Moldova who has directly responsibility of billions theft, wasn’t audited by the National
Anticorruption Center. The subordination of currently Center of Implementation of Reforms of
public administration to the politician, better to say to the oligarchy (this is explained and by the
fact that the activity of the Center is performed under control of Governmental Commission for
administration’s reform in head with Prime-Minister, in another words “the wolf controls the
sheep”) has led to the growing of instability and corruption in the Government Party. Through such
schemes of control has past and the ex prime-minister, who was the Head of the Party being at
government, who currently is convicted under pressure of other Head of Party which is on the
power now. In such was taken place the fight for absolute power within the system, but not for
reforming administrative system and interaction with that political. The dependence of first
administrative echelon of political factor, submission of administration and expression of will of
party groups at the highest level, allegedly to confer a continuation of political reforms has led to
establishment of oligarchy and captivity of state institutions.
In theory and practice there are different concepts diametrically opposed on the solving the problem
of the relation between policy and administration: - one, consists in distance of administration from
policy, even from the highest level, with goal of conferring of a continuity of actions for
implementation economic reforms and creation of entrepreneurial government; - the second, consist
in dependence of first administrative echelon by political factor, giving to the second echelon a
relative stability for functions execution. Regretfully in the Republic of Moldova all echelons of the
administration were divided in accordance with political criteria and supposed in total to respective
politician (they divided under political criteria event the guards and maids, only to adhere to the
Party).
In national practice the distance of public administration and management from policy didn’t exist,
that is why the reform have been performed in accordance of principles one step forward and two
steps back. The lack of political will not involve and offer to the administration freedom in actions
led to the total destruction and disorder in the society, performed with politician hand. For example,
first progressive legislative has putted the independence basis and opened the European way and
reforms and gave a considerable impulse to changes (1990-1994) which have provoked a war with
Russia and have divided the country, the second legislative policy (1994-1998) has stopped the
administrative reforms, change of agrarian relations and has achieved a conception of social-
economical development based on consumption, achievement the CSI vector, the third policy
(1998-2001) has returned the European vector of development, implemented the so called “shock
therapy” destroying overnight the potential State, not construing nothing instead, the fourth policy
(2001-2009) has supposed the public administration totally to the autocrat who has achieved a
traditional management, handling a step to European vector and two steps to CSI, pointing out the
development based on remittances consumption, which lead to growth of economical instability and
to tension till apogee of social contradictions, transforming these contradictions in antagonistic, and
which have changed in force way the Communist Power; the fifth policy (2009-2017) has
transformed the public management and administration in a marionette, mimicking the reforms,
monopoly the influence fields, amalgamating the policy with administration and creating a
corrupted oligarchy, which has captivate the administrative institutions.
For all these stages is characteristic a mimicking and pseudo-reforming of public administration and
management, a submission of structure of policy government, an essential diminishing of
economical potential, an increase of migration of workforce, an increase of poverty, an impulsion of
monopoly process of economical and financial circuit, a growth of theft and money laundering. The
so called reform of the administrative and management system and performing of changes due
changes has led to deepen of the instability, to monopoly of markets by clans being at government
and strengthen of oligarchy. Instead to decentralize the authorities and to encourage the
participative management, to promote mechanism of market the Government, on the contrary, has
canceled the main link of decentralization and namely, the Law of Counties’ forming (this law was
adopted by the most agrarian legislative conservatism) returning to district structures for
maintaining in their hands the territorial structures allotting funds to that theories where were the
governing parties, or which adhere to government party.
The lack of managerial and administrative Reforms and of Entrepreneurial Government
independently from policy with responsibilities of control and actions, similar to Constitutional
Court and of poorly developed civil society, has permitted to the governors to “structure” the
legislation on their will (in Romania such variant hasn’t pass because under pressure of civil society
has been annulled the Ordinance 13 of amnesty of corrupted persons). Chinking of the legislation
has “untie the hands” of corrupted governors not to be criminal responsible for carried offences,
inclusively for theft of billions by the oligarchy power. It is easy to image the blocking and chaos
which appear in the political system of the country, if the Constitutional Court hasn’t action as an
independent Body.
The non-existence of an Independent Center of Reforming of Public Management and
Administration and of Entrepreneurial Government with definitive decisions has led to the entrance
of the oligarchy in social-economical and political system, to captivity of State Institutions. In the
result has been created an insupportable situation, a total disaster and disorder in society. The
majority of the population is under limit of poverty and leaves the country in which they cannot
survive, because the economical potential refined in “coma” doesn’t assure the optimal occupation
of workforce and solving acute social problems. For country there is not a structure with
immediately and definitive empowers and mechanisms for efficiently combating of very corrupted
oligarchy to dismantle the oligarchy structures and to stop the instability, lack of poise, to stop the
theft of billions and their restitution, to give up the state institutions from economical and political
captivity.

Scheme1
For avoiding these and other fatal and anti-national actions and processes for the Republic of
Moldova provoked by corrupted oligarchy the Center of Reform of Management and
Administration and creation of Entrepreneurial Government follows to be created as an independent
managerial institution with responsibilities of achievement of objective traced in Strategy of
control, supervision and prevention of disproportions and economical durable development. The
growth of real efficacy of CRMA and of creation of EG presupposes the offering to this Center the
immunity and rights similar to the Constitutional Court, that in the case of deviation of power from
legislative framework and from principles of theories and models of public management and of
provoking of social-economical instability for urgently and definitive stopping of anti-national
actions.
The lack of such Center dotted with real functions of reforming for reinvention of the Government
and creation of an entrepreneurial administration has led to growth of corruption level in the
monopoly system and to its extension among oligarchy clans and their entrance in all state
structures and levels. These negative processes have undermined the State’s security, have deepen
the social-economical, political and institutional disproportions, have provoked a disorder, total
chaos and distrust in the society, in the tomorrow day, have differentiated the society in pauperism
and rich corrupted oligarchy, have throw country in a “precipice”, have “eroded” the economic
potential and have tensioned at maximum the contradictions between clans of oligarchy and civil
society. At the same time are more deepen the tensions between political parties, which instead to
unit their efforts for overthrow the monopoly and corrupted oligarchy and to free country from
captivity, ones from left side want to adhere at Euro-Asiatic Union, the liberals are for union with
Romania, and the democratic oligarchy clans being at government handle this forces, speculating
with development vector and mimicking reforms for European Integration. Not least, growths the
institutional instability, are deformed more and more the economical interests, property relations.
All these, together with growth of migration of active workforce, generate and produce the macro-
economic dis-balance and the instability of market system at different levels.
The public managerial reforming and reinvention of the government for achievement of the
strategy’s objectives need the solving of problems of human resources, beginning with
organizational, structural and functional aspects and finishing with selection, preparing,
recirculation, recruiting, and motivation of reforming staff with combating of fluctuations and
migrations of specialists from administration, with elaboration of a rigorous system of control and
evaluation of officers, with radical reforming of Public Academy and Administration and its
transformation in a Moldavian-European Center of Economical Studies and Public Management.

Achieving the concepts of balanced development in the conditions of national economy with
opened markets and growth of the competitions, intensification of European process of social-
economical system, the Center will take into account the exogenous factors, of problems with
which are faced the neighbor states, will associate and coordinate the actions with EU Council.

RESULTS. The particularities of public management and administration were focused on the
synthesis of anti-reform and pseudo-scientifically policies of changes of the traditional government
and of economy’s development. In the transition period the administrative reforms were achieved at
surface, without big changes of concepts, regarding the fundamental principles and values of the
public management. The essence of public management was formalized, changing some general
and non-essential acceptations copied from European International Framework in the detrimentally
of those basic, reunited in the Strategy on administrative reform for 2016-2020.
In the new Strategy it is necessary the giving up on traditional old models of perception of
bureaucratically administrative system in which are elaborated Laws, normative acts, and
regulations and through these are applied and which worsen the social-economical situation. The
public management wasn’t based on theories of stabilization and modern economical growth, and
the actions and policies of central public administration were executed in fragmental way and
dependents on policy using selectively the national and international institutional and legislative
framework. The characteristics and general result of public traditional administrative management
executed in the period of 1991-2016 years consist in execution of structural changes of façade and
forming of s market economy of extensive type, monopoly and lack of poise, which have been
developed not on the basis of investments in priorities, but on remittances consumption and on
considerable “eroding” of the internal and external borrowings, of grants, on the extension of
budgetary deficiency and State’s debts. In this period different public administrations with opposite
methods and policies have obtained practically the same result and namely an extensive
development expressed in rapidly growth of efforts of human and material resources than the
obtained effect.
The reforming processes of public administration and management were contradictory, fragmental
and uniformly succeeded. In transition we can highlight some policies and stages of pseudo-reform
and economical pseudo-development, inclusively: - period of reform’s initiation (1990-1994); -
elaboration of constitutional principles of public management and administration (1994-1998); - the
period of active changes, destruction of agricultural households and dividing of agricultural territory
(1998-2000); - fragmental execution of reform through subject of public administration to left
autocrat (2001-2008) and achievement of an accentuate social policy and a corruption based on
consumption; - finally the period of pseudo-reform and mimicking of reform, and their execution
with ambiguity (2009-2016), with extension of massive corruption of government powers and
namely those pro-European. In this period the basic objective of the management wasn’t the growth
of the degree of satisfaction of public interest, being determined by general and specific needs.
The pseudo-reforming of management and administration at all stages were succeeded with
“changes for only changes”; with degradation of life’s quality; with instauration of a public total
disorder and of an instability and vicious crisis; with execution of reform through closing or adding
of Ministers, agencies or Directions; with protection of those devoted to the policy and perpetuation
of the incompetence; with increase of competence conflicts; with stifling guardianship of the
politician on administration; with personal regality between head’s responsible; with reduction of
degree of satisfaction of public interest; - all these have led to unforeseeable fluctuations of
administrative structure, at creation of a negative image of the population toward any public
manager and in general at compromising of administrative and of public affairs environmental of all
levels.
Because of pseudo-scientifically management and of embezzlement administration and of theft of
billions from Banks, economical crisis and unemployment growth (30% of young persons haven’t
places of work) has accelerated the process of “eroding” of workforce through education and
preparation non-agreed with market’s requirements and non-professional and of forced migration
(medium rate of migration is of 2,5% on year). Facade reform of the Government and of
economical system has deepen the social-economical crisis and instability, which has essential
influenced the efficacy and direction of development and has diminishing the possibilities of
durable economical development.
The promoting of a fiscal-budgetary and snit-scientifically public financial management (fiscal
pressure is of two times bigger than critical point, which should not exceed 25% of income),
inconsequent, inefficiently, non-attractive, not only has reduced the area of taxation, but has
provoked the growth of economical embezzlement and about 2,5 % of economical agents leave
affairs, or they pass in illegally sector. In the result of fiscal-budgetary reform by administrative
methods has been diminishing the direct taxes which reflect the efficacy of affairs (these rate
constitute a third of all taxes), has essential increased the budgetary deficit, constituting in 2016
year about a third from total income of State Budget.
The financial administrative policy, of giving up on requirements of new public management
theory, inclusively balance model IS-LM, has transformed the national economy in economic
market system with an insufficient level of financial resources and with a monetary rate of critical
economy (the monetary rate of the economy in 2001-2016 years has constituted about a third of
PIB, while in developed countries this rate constituted from 70 till 110 % from national products).
This has led to the considerable decrease of the degree of use of economical potential and
respectively to diminishing of PIB and of incomes of economical agents and population, at
extension of financial embezzlement in the result of speculations on financial market and of theft
and money laundering from banking system and growth of the rate of speculative interest and at
artificial forming of deficit of investments and respectively at essential and suddenly decrease of
local and foreign investments in real economy. At the same time these and anti-national processes
have provoked the increase of monopoly degree of financial system (about 70% of monetary mass
is controlled by three banks), have extended the embezzlement area in banking system, increased
the speculative rate of currency exchange with 40% and respectively rate of annual interest of Lei
till 22 %. The monopoly banks have exploited this phenomenon, crediting the budgetary deficit
with an exaggerated rate and in such way getting in embezzlement way thousands of millions in the
result of these speculations. The financial monopolists, controlling through non-existent and off-sor
structures the financial system and economical circuit, impose to the society their interest and will.
All these have increased the degree of captivity of state institutions and have established a
bureaucratically public management, which has dis-balanced the social-economical system through
deepening of disproportions of AD-AS relation of money on financial market, increasing of money
demand provoked by theft of billions from banks, of speculations of money offer and insufficient
demonetization of the economy (monetary mass of crediting of the economy has essential
diminished in relation with PIB).
The monopoly of institutions of sector administration in accordance with criteria, not that
professional, but that of Party, the theft and taking of the billions of euro from the country, not only
has increased the money deficit in the economy, but has reduced the power of buying of financial
resources being in circulation, has considerable accelerated the inflation and in result the small
business has bankruptcy (in 2010-2016 have bankrupt 25 % of enterprises) and at the same time
was increased the dubious economy, has extended the economical embezzlement and corruption,
creating favorable conditions for growth of economic instability and reduction of real sector. The
government’s oligarchy, captivity of financial system, theft of billions, secret of real founders of
Commercial Banks, economical disproportions, considerable growth of budgetary deficit and
currently account and of internal and external debt, total corruption have come in contradiction with
supervision conditions from Basel and FMI which have postponed the financing and drawing up of
agreement in 2013-2016, blocking the financing and sanctioning the Republic of Moldova more
than three years.
The new Strategy of Reforming of public Management and Administration and creation of
Entrepreneurial Government on a long and medium term follow to be achieved in the conditions of
a very threaten risk – namely in the situation of the economy which suffers a strong coercion from
the part of monopoly and national oligarchy and hard limits imposed by FMIs and EU. It is meant
that the oligarchy will allow the realization of reforms of public administration and management in
favorable limits and in interest of government’s groups. Solving strategically problems is
complicated because of financial, monetary and budgetary coercions and limits imposed by FMI,
inclusively: - limit of total cash deficit, of net assets of National Bank of Moldova; of minimum
level of stocks of net international reserves of National Bank of Moldova; - limiting of contracting
and guarantee of non-concessional external debts by the Government of the Republic of Moldova; -
limiting of arrears accumulations from external payments and monetary basis; - limiting of internal
expenses of salary funds, will impulse the reform of public administration, will limit the handle and
of promoting possibilities of radical and efficient reforms. At the same time these coercions will
stimulate and impute the politician to promote real reform of public administration and management
and to form an entrepreneurial government, to create conditions for radical change of the concept
and policy of development and economical growth and of financial in State, to reduce the taxation
rate and interest rate and to increase the financing volume of the economy, to stimulatethe
investments and to reform radically the affairs environmental and that institutional, to dissemble the
oligarchy and to limit strictly and hard the monopoly under different forms, to create conditions of
durable stabilization and development. In case of fails of real reforms the State wouldn’t survive.
The stipulated result of proposed recommendations in the Strategy for the reform and creation of
entrepreneurial government on long and medium term is to reestablish the security of the state and
avoid the total bankruptcy and state’s collapse, to stabilize and develop the economy, to reduce and
limit the monopoly functions and to maintenance the flexible balance using the IS-LM model.

CONCLUSIONS:
Giving up on principles and policies of public management reforming and administration promoted
by values and recommendations of new concepts of the public Management and from requirements
of European Standards has led to social-economical destabilization, monopoly and oligarchy of
local and central public administrative system ,captivity of state institutions, reproduction of total
instability, dismissing and “eroding” of social-economic potential which is in “coma”, loss of a half
of active workforce of the country ,diminishing of life’s quality, forced migration, pauperization of
the population, deforming of economical interest and property relations, entrance of corruption in
all economical structures and relations, total economical embezzlement and massive money
laundering.
The balanced and durable development of social-economical system, dissemble of oligarchy needs
the elaboration and implementation of new Strategy of Reforming of Public Management and
creation of Entrepreneurial Government concerning the durable stabilization and development and
increase of the degree of satisfaction of public interest, determined by European medium local
population’s needs.
The complex and efficient achievement of this Strategy presupposes the reforming of currently
Center of Reforms Implementation (CRI) of public administration. The CRI must be apart of policy
with supervision, prevention and correction functions of social-economical dis-balance, with
responsibilities of control and evaluation of stability of economical, financial and banking system,
with right of dissemble of oligarchy and of hard and definitive limiting of monopoly which
currently “erodes” the marked, economical interest, property and household’s relations. At least but
not the last, CRI is responsible of control, prevention and combating of dubious economical and
financial transactions, of monitoring of economical balances on the Moldavian-European
reintegration process.
This CRI follows to be independently from political point of view and created through direct voting
of civil society, able of immunity, with rights and responsibilities similar with that of Constitutional
Court. The structure and functions of Center of Reform Implementation of Public Administration
for stabilization, control, supervision and anticipation of dis-balances can be created through reform
of existent CRI.
The reforming of structure and functions of public Management and Administration in accordance
with new Strategy and creation of Entrepreneurial Government on dissemble of embezzlement
oligarchy and removal of sector administrative structures (Minister, Departments, Agencies) from
captivity, forming of a mix economy of free market, hard regulation of monopoly’s activity under
all forms and creation of a stimulus and stable affairs climate and of an institutional medium
necessary for attraction of investments in real economy and development of private properties,
inclusively through diffusion and acting, passing of disproportions and social-economical
stabilization – all these will create real conditions of durable development and increase of life’s
quality and integration in EU.

BIBLIOGRAPHY

1 Memoramd of FMI with Republic of Moldova,2016,

1. Walras L. Elements of Theoretical Economics: Or the Theory of Social Wealth, Cambridge
University Press, 2004, p. 483
2. Keynes J.M. General Theory of employment of workforce, of interest and of money, ed.
Publica, 2004
3. Reforming Strategy of central public administration in Republic of Moldova, Government
Decision no.140 of December 30, 2005
4. Strategy on public administration reform for 2016-2020 years, Decision of R.Moldova
Government no.911 of July 25, 2016
4. National Strategy of Development of Moldova 2020,
http://particip.gov.md/public/files/strategia/Moldova_2020_ROM.pdf
5. Association Agreement between Republic of Moldova and European Union, 2014,
http://gov.md/en/advanced-page-type/documente-utile
6.Institutional and International legislative and of EU framework.

Authors:

Gheorghe Rusu, Ph. Dr. in Economy, university professor, email: rusu.48@mail.ru

Grigore Rusu,dr.in law,USM

Bumbu Mihai, Master’s Degree, State University of Moldova

Gangan Serghei,Master,sDegree,SUM