Assessment Of Development Results Republic Of Moldova

This report presents an independent country-level evaluation conducted by the UNDP Evaluation Office in 2010. The evaluation examines the strategic relevance and positioning of UNDP support, and its contribution to the development of Moldova.

This report presents an independent country-level evaluation conducted by the UNDP Evaluation Office in 2010. The evaluation examines the strategic relevance and positioning of UNDP support, and its contribution to the development of Moldova.

This paper discusses the Poverty Reduction Strategy Paper and National Development Strategy (NDS) for the Republic of Moldova. The NDS “Moldova 2020” presents a vision of cohesive long-term sustainable economic development based on a diagnostic study of constraints to economic development. Areas such as health, culture, social protection, and environmental protection are crucial for the country’s sustainable development. The focus of the NDS is to increase the budget coverage of adequate policies in these sectors as a result of accelerated economic development. Such a focus also requires the sustainability of foreign assistance currently provided to the country.

The First Review Under the Three-Year Arrangement under the Poverty Reduction and Growth Facility of the Republic of Moldova analyzes macroeconomic and structural policy measures to support the adjustment and promote growth. Moldova is facing serious external shocks that will have long-lasting effects. All quantitative performance criteria and indicative targets were met with the exception of the international reserves target, which was missed because of the shocks. Financial sector development is to be promoted by encouraging foreign competition in the banking system.

This paper discusses key findings of the Second Review Under the Poverty Reduction and Growth Facility (PRGF). Program performance has been generally satisfactory. The quantitative performance criteria were observed, as was most of the structural conditionality. One structural performance criterion was missed at end-December: the increase in tariffs for district heat and water was briefly delayed in Chisinau. IMF staff supports completion of the review and granting a waiver for nonobservance of the structural performance criterion. The authorities’ commitment to implement supplementary measures provides assurance that the program’s objectives remain attainable.

This Economic Development Document highlights the Moldova 2020 National Development Strategy focus on producing a social and economic impact on various development priorities. Poverty reduction has progressed significantly during the past eight years: the national poverty rate decreased from 26.4 percent in 2008 to 9.6 percent in 2015. Remittances by emigrants and higher agricultural income, salaries, and social benefits were the major drivers of poverty reduction. The means-tested social assistance program had a significant impact. This social aid has proved to be the most efficient social protection against poverty; however, social support programs that are not means tested are ineffective.

Half of the Moldovan population lives in rural areas. However, the rural employment rate is only 39 percent. Income from agricultural activities is low compared to other sectors of the economy. This evaluation seeks to contribute to organization-wide learning by drawing lessons and making recommendations that will be useful for FAO’s future engagement in Moldova. FAO provided highly specialized technical expertise to formulate strategies, policies and frameworks, and offer innovative approaches and solutions. Likewise, the evaluation found evidence of results leading to livelihood improvements, empowerment, and adoption of more sustainable practices and technologies. Nevertheless, FAO should further strive to support the transformation to more efficient, inclusive, resilient and sustainable agrifood systems for better production, better nutrition, a better environment and a better life, leaving no one behind. In doing so, FAO should use the knowledge generated to refine programmes in consultation with key partners towards effective and sustainable results.