The consolidation of the oligarchic model of power has had a negative impact on the state of democracy. The current ruling elite is determined to retain power and therefore does not hesitate to violate democratic principles, such as elections.

Moldova has achieved enormous progress in eliminating market-entry barriers. However, the security of investments is jeopardized by cases of raider attacks, i.e. hostile takeovers of assets when a majority of shares in a company are illegally acquired based on a corrupt judicial decision. The involvement of the political class in business activities distorts free market competition.

The capacity of the government to implement its policies is conditioned largely by the political and business interests of the rent-seeking ruling elites.

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