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Europe and Central Asia Dept,
DFID, 1 Palace St, London, SW1E 5E
Tel: + 020 7023 0000|Fax: 020 7023 1107
Map courtesy of the FCO
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Moldova
Moldova is one of DFID's focal countries in the Region. DFID's bilateral
programme amounts to £4m annually until 2010 and is focused on providing support
to the Government of Moldova in improving governance, promoting pro-poor growth
and conflict resolution.
Background
Moldova is a young, predominantly rural nation of 4.3 million people
(including Transnistria). It gained its independence from the Soviet Union in
1991. Having no experience of managing its own national affairs, the country
lacked the political and economic structures to cope with the transition to
independence and a market economy. A prolonged recession through the 1990’s made
Moldova the poorest country in Europe. By 1999 over 70% of Moldovans were poor
and over 60% extremely poor. Moldova’s social indicators were regarded as among
the worst in the region.
Following the crisis in the early 1990s Moldova has registered strong growth
in GDP in recent years (peaking at 7.5% in 2005). However, in 2006 a marked
slowdown in growth was seen (drop to 4%). The twin external shocks of the ban on
Moldovan wine and agricultural exports to the Russian market and the doubling of
the price paid for imported gas were the key causes of the economic slowdown.
Moldova is the only low-income country in Europe. Although poverty has
reduced in cities, it has increased in small towns and rural areas where over
70% of population lives. About 33% of Moldova’s economy is from remittances (the
highest ratio of remittances to GDP in the world). Moldova is classified by the
Organisation for Economic Co-operation and Development (OECD) Development
Assistance Committee (DAC) as a low-income country. The country is likely to
meet the Millenium Development Goal targets on gender equality in education, and
forest cover, and might meet the overall Goals on poverty, maternal and child
mortality. It is off track to meet the Millennium Development Goals (MDGs) on
HIV & AIDs and Tuberculosis, school enrolment and water access.
In December 2006, the international community committed $1.2 billion at the
Consultative Group meeting to support Moldovan development.
 The
Economic Growth Poverty Reduction Strategy Paper (EGPRSP) for 2004 – 2007
(1.8 mb) is the centre of current efforts. In 2007, a
National
Development Strategy was developed for the period 2008 -2011, which will be
the focus of Government action and donor support.
For more information about the political and economic situation in Moldova
please see the
Foreign
and Commonwealth Office (FCO) Moldova site.
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DFID in Moldova
DFID works with other development partners including the
World
Bank,
European Bank for Reconstruction and Development (EBRD),
European
Commission (EC) and
Swedish
International Development Agency (SIDA).
Our activities cover:
- Pro-Poor growth
- Improving public financial management
- Improving public administration
- Moldovan debt service
- Improving social assistance and cash benefits system
- Supporting the Peace Building
From 2007 DFID started to provide direct budget support through contribution
to Poverty Reduction Structural Credit (PRSC).
Following the accession of Romania to the EU, Moldova is now on the border
with Europe. DFID is actively engaged in dialogue with the EU over the European
Neighbourhood Programme, which will provide substantial assistance to Moldova.
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Other Donors
The World Bank approved a $10m credit to support government efforts to
accelerate economic growth, public administration, improve social programmes and
support pension reform. Road building and rural development are also World Bank
priorities.
The
United States Agency for International Development (USAID)
is by far the largest grant donor to Moldova with an annual budget of $11-12m a
year and has contributed to farm privatisation throughout the country. The EC’s
European Neighbourhood Programme includes an allocation of €209m for Moldova
between 2007 - 2010.
The UK, through DFID, contributes a significant amount of the EU's aid
resources overall, approximately 18%.
EBRD has provided private sector support including actions through the Turn
Around Management/Business Advisory Service and the EBRD Early Transition
Countries initiative (ETC).
The
Global
Conflict Prevention Pool (GCPP), which was established in March 2001, funds
high impact initiatives in Moldova to support peace building and conflict
prevention activities. Priorities include working with others to strengthen
civil society and media engagement in the conflict resolution process.
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Links
Last updated: 06 August 2008
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