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Moldova
FY 2001 Program Description and Activity Data Sheets
>> Regional Overview >> Moldova Overview FY 2001 Program
USAID’s program in Moldova contributes to the following Agency Objectives: critical, private markets expanded and strengthened; access to economic opportunity for the rural and urban poor expanded and made more equitable; the development of politically active civil society; and use of environmentally sound energy services increased.
In economic restructuring, as the revised tax code is approved and implemented, USAID assistance will be needed to develop regulations, enhance tax analysis capability, reform and strengthen tax collection and administration, and improve the institutional capacity of Parliament to analyze the budget and promulgate economic legislation. With the completion of rural land privatization and titling in 2000, USAID will focus on promoting private systems of agricultural production and marketing, and developing a real property tax law.
To promote enterprise development, trade and investment, USAID will assist in developing a sound legal and regulatory framework, drafting commercial laws, and increasing firm-level investment, competition and productivity. USAID will also promote partnerships between U.S. firms and institutions and Moldavian counterparts in such areas as accounting and agribusiness.
USAID assistance in the energy sector will focus on de-monopolization and privatization, and establishment of a transparent, predictable regulatory regime to finance operational needs and repay fuel debt.
To strengthen democracy and governance, USAID is placing more emphasis on local government, increasing the involvement of people in political and economic decision making at the local level; and building the capacity of local NGOs and associations to promote reform.
USAID’s crosscutting and special initiatives include training and seed grants to NGOs to strengthen capacity in a range of areas. USAID-sponsored humanitarian assistance programs help alleviate the hardships of vulnerable citizens. An example of this is USAID’s 1999-2000 winter heat program for pensioners, schools, hospitals and orphanages.
In addition to USAID programs, FREEDOM Support Act (FSA) funds are allocated to a variety of U.S. agencies in support of Moldova’s development. These include training and exchanges, as well as technical assistance in law enforcement and commercial law, through State, Commerce and Justice Departments. The Treasury Department also provides advisors in several areas of economic reform. In FY 2000 and FY 2001, FSA funds will be provided under the Administration’s Expanded Threat Reduction Initiative (ETRI) for programs designed to enhance border security and export control capabilities. Additional funds also will be provided to further support the relocation of Russian military forces in Transdniestr, and disposal of ammunition stockpiles located there.
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ACTIVITY DATA SHEET
PROGRAM: Moldova
TITLE AND NUMBER: Increased Transfer of State-Owned Assets to the Private Sector, 117-011
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $8,008,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,000,000 FSA
STATUS: ContinuingINITIAL OBLIGATION: FY 1994 ESTIMATED COMPLETION DATE: FY 2001
Summary: Since the inception of USAID technical assistance in 1993, resources have been targeted towards the privatization of state assets. In the initial phase, efforts aimed at privatizing large numbers of small, medium and large enterprises. The second phase was dedicated to privatization of urban and agricultural land. In 1999, USAID entered the third phase of market reform, which is focused on completing the privatization of collective farms and privatizing strategic enterprises such as wineries, and grain and fertilizer complexes.
USAID is providing technical assistance to support the break-up, land arrangement and title issuance work involving 900 collective farms and 100,000 independent landowners that exited collective farms during 1992-96. The result of this process will be to breakup all collective farms by December 2000 and to issue three million individual land titles to new private farmers. USAID is also providing assistance to liquidate old debts to state and private creditors on all privatized farms so new land owners can begin operations debt-free. Concurrently, efforts will continue in perfecting the legal and regulatory environment to support a fledgling land and real estate market, especially in the area of titling and registration. Land under privatized enterprises must also be privatized to ensure clear and unencumbered land titles. Direct beneficiaries include the Moldavian population at large, as Moldova is primarily an agricultural economy. Private ownership and possession of land titles are key to achieving market reform and attracting domestic and foreign investment.
Key Results: Four key results are necessary to achieve this objective. (1) Enterprises are privatized through mechanisms other than National Patrimony Boards. (2) Housing units are privately owned. (3) Farmland is privatized and titles issued. (4) Privatized enterprises acquire associated land and titles are issued.
Performance and Prospects: Performance over the past year has been as expected, although some implementation delays have occurred. Following the start up of the Government of Moldova’s National Land Reform Program (NLRP) in March 1998, it was quickly determined that if the Moldavian law on bankruptcy and enterprise restructuring were applied to the farm insolvency problems, the process would tie up critical farm property. However, the promulgation of the Law on Amending Several Legislative Acts freed up all critical movable farm equipment, and orchards and vineyards, allowing the NLRP to resume.
In FY 2001, resources are needed for privatization of strategic enterprises that were withheld from prior privatization programs. Such enterprises are wineries, and grain and fertilizer complexes.
Possible Adjustment to Plans: There are no major program adjustments contemplated during the coming year.
Other Donor Programs: USAID works closely with the World Bank and International Monetary Fund in setting common privatization targets and garnering support in Parliament for privatization laws and other issues.
Principal Contractors, Grantees, or Agencies: USAID’s contractor for the rural land privatization program is the East-West Management Institute. Booz Allen & Hamilton is implementing the urban land privatization component and all aspects of land titling and registration. International Business & Technical Consultants, Inc. is the contractor providing technical assistance and support for the sale or disposition of residual, state-owned shares.
Selected Performance Measures:
Baseline (1995)
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Number of land titles issued (cumulative)
0 128,319 1.2M 1.5MI* 3M Market-based land pricing system implemented
No No Yes Yes Yes * Target reduced in response to delay caused by the need for unanticipated technical changes in Moldavian law on bankruptcy and enterprise restructuring.
ACTIVITY DATA SHEET
PROGRAM: Moldova
TITLE: Increased Soundness of Fiscal Policies and Fiscal Management Practices, 117-012
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $3,451,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $4,000,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1993 ESTIMATED COMPLETION DATE: FY 2002Summary: USAID technical assistance under this objective seeks to put in place fiscal policies and fiscal management practices that are conducive to macro-economic stability, and promote private sector development and sustained economic growth. USAID’s fiscal reform project has been key to the success of Moldova’s transition to market-based economy.
Key Results: Three key results are essential to increased soundness of fiscal policies and fiscal management practices. (1) Budgeting and financial management practices are reformed. (2) A market-oriented, tax system that encourages compliance is created. (3) Parliament acts effectively on fiscal reform.
Performance and Prospects: Moldova has an excellent record of progress on fiscal reforms. A comprehensive budget process law was adopted on March 31, 1997, and implementation started with the 1998 budget. The law on local government public finance was passed by Parliament in 1999. Significant progress also was made on the development of the treasury system in 1997 with all revenue and expenditure accounts of state organizations closed and their functions taken over by the Treasury. As of April 1998, the computerized system was extended to all regional treasuries. Moldova also achieved steady progress in tax reform with the adoption of a unified tax code that embodies a tax system appropriate for a market-oriented economy. Capacity building in tax administration contributed not only to increased tax collection and resource mobilization; but also to meet International Monetary Fund (IMF) budget-deficit targets, and promote economic stabilization.
These achievements were made possible by the Government of Moldova which has been highly receptive to the assistance provided by USAID, and eager to extend the fiscal reform program to Parliament and deepen its impact on local government. As of December 1999, the state budget had met its budget goals by 99.5%. Budget revenue was about 36.5% greater than in the first 11 months of 1998. Tax collection was up 34% in Chisinau for the same period. The social fund also received 75% more than in 1998. For the overall consolidated budget, an increase of 28.5% in revenue mobilization could reasonably be expected. As a result, the Government was able to pay civil service salaries and even repay one month’s pension to all pensioners in cash. The sharp fall of yields on Treasury bonds from 36.8% in 1998 to 14.7% in 1999 will have a beneficial effect in bringing down the 30% refinancing rate of the National Bank and also the commercial rate on bank loans. Finally, the rate of inflation in Moldova was 4.3% in November 1999 as compared to 9.7% in November 1998.
In terms of tax policy, the single tax code advanced considerably with the passage of the corporate and individual income tax law, and the value-added tax law. The proposed, excise tax law was approved by the Government in 1999, and the draft for a law on land and property tax was finalized in December 1999. In 2000, Moldova will have a unified tax code consistent with a market-oriented economy. In parallel, capacity building was provided not only to the State Tax Service but also the Large Taxpayers Unit and the Customs Administration. As computerization took place with the support of USAID, better forecasting data became available and more accurate assessment of results can be provided.
Efforts have also been made in revenue mobilization and debt management. While the resumption of lending by the IMF and World Bank permitted Moldova to meet its debt service obligations in 1999, the Government will have to build up its financial capacity to face its debt burden in the long run. This can be accomplished through commitment to accelerated privatization, attracting increased levels of foreign investment, and increasing trade ties to the West, including accession to the World Trade Organization.
To maximize its impact, fiscal reform needs to be as comprehensive. Although work is proceeding according to plan there is a need to further develop the activities under this objective by: (1) expanding technical assistance within the Ministry of Finance, (2) broadening fiscal reform activities to Parliament and (3) deepening the impact of reforms to local government.
Possible Adjustments to Plans: There are no major program adjustments contemplated during the coming year.
Other Donors Programs: In 1999, USAID was by far the key provider of technical assistance in the fiscal reform area. The IMF assisted the Ministry of Finance in macro-economic analysis and development of the treasury. The World Bank provided a $1.9 million loan for computerization of the State Tax Service, with USAID providing the technical assistance necessary for the procurement of computers and the development of management and information systems. The German aid agency, GTZ, and other donors assisted in areas such as customs law and procedures.
Principal Contractors, Grantees or Agencies: The contractor for USAID’s tax reform, budget process, intergovernmental finance and parliamentary development activities is KPMG / Barents Group
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Comprehensive budget law adopted and implemented *
No(1995) Yes * * * Treasury system operational, centrally and locally*
No(1995) Yes Yes * *
Ratio of cost of tax administration to tax collection decreases
No(1995) Yes Yes Yes Yes
State budget revenue generated as percentage expected with full compliance(%) **
30(1997) 40 60 70 75
Government meets IMF deficit targets
No(1996) Yes Yes Yes Yes *Tracking and reporting against the indicator discontinued once "yes" status achieved.
** Formerly "State budget revenues equal or exceed forecast level." Reported in FY 2000 Congressional Presentation with 1995 baseline, No, and 1998 target, Yes. Measuring percentage change considered a more sensitive measure.
ACTIVITY DATA SHEET
PROGRAM: Moldova
TITLE: Accelerated development and growth of private enterprises, 117-013
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $5,500,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $14,200,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002Summary: The success of Moldova’s transition hinges on the ability of the private sector to attract private investment, expand production and increase exports. To help in this process, USAID focuses on removing the impediments to sustained enterprise growth and trade and investment. Advisors continue to work on developing a sound legal and regulatory framework, international accounting standards, venture capital and joint ventures in agriculture. Cooperative U.S.-Moldavian efforts are promoted to increase firm-level investment, competition and productivity. The design of a post-privatization program envisions a significant agribusiness component, which would expand nationwide the agribusiness partnership concept and the farm service centers. The objective is to enhance the income opportunities of the more than 550,000 new private farmers emerging from the National Land Privatization Program (NLPP) by creating quick access to essential inputs, credit and technology, and new markets. Privatized and start-up businesses will benefit directly from these activities, but specific focus will be on restructuring the agro-industrial complex, including food processing, marketing, equipment and services suppliers, light manufacturing, construction and the service industry.
Key Results: Four results contribute to accelerated development and growth of private enterprises: (1) wider availability and flow of business-related information and services; (2) legal, regulatory and political environment conducive to sustainable private enterprise growth; (3) selected agricultural joint ventures created; and (4) venture capital investment supplied.
Performance and Prospects: Progress over the past year has been satisfactory, and in the area of accounting reform, better than expected. USAID’s technical assistance in legal reform has assisted the Government of Moldova to evaluate the civil code preparatory to establishing the framework for new commercial law. The revision of the civil code and drafting of the commercial law, which started in 1999, will be finalized in 2000. This will provide commercial legislation supportive of a market economy.
The accounting reform activity in Moldova has also made significant strides. Private enterprises have adopted the national accounting system, and the 1998 target of 450 members for the Association of Moldavian Accountants and Auditors has been surpassed. The U.S. agribusiness partnership program to encourage U.S. business to invest in Moldova is still in progress while USAID assistance is also helping Moldavian firms look to other, more stable markets than Russia as a consequence of the Russian economic crisis.
Over the next year, USAID will strengthen the policy reform component, pursuing more direct input on deregulation. It is expected that the development of an adequate body of commercial law based upon market principles and the adoption of international accounting standards by enterprises will insure Moldova’s continued progress towards a market economy.
Possible Adjustments to Plans: There are no major program adjustments contemplated during the coming year.
Other Donor Programs: USAID coordinates with the United Nations Development Program and European Union to provide technical assistance and funding for business service centers that help small and medium-sized business managers improve business plans and management skills. USAID also coordinates with the German assistance agency regarding World Trade Organization accession.
Principal Contractors, Grantees or Agencies: Development Alternatives Inc. provides business support services. Peace Corps provides business volunteers to advise the Moldavian managers of the business service centers. Citizens’ Network for Foreign Affairs (CNFA) provides funding for technical and other assistance to develop business partnerships through American investment in the country’s agriculture sector. CNFA also provides volunteer executives to work in Moldavian enterprises, business associations, and business service providers. The West NIS Enterprise Fund makes debt and equity investments in Moldavian firms. The Center for Institutional Reform in the Informal Sector builds Moldavian capacity for drafting good commercial legislation based upon market principles and open trade.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Coherent commercial legislation supportive of a market economy
A- Comment on draft civil code
Yes (1998) Yes Yes Yes Yes B- Draft of commercial law
No(1998) No Yes Yes Yes C- Draft of commercial law approved
No(1998) No No No Yes Compliance with trade standards of World Trade Organization
No (1995) No Yes Yes Yes International accounting standards adopted by enterprises (members of self-regulatory organization)
0 (1995) 640 1000 1500 2000 Number of companies listed on stock exchange with financial statements conforming to international accounting standards (cumulative) 0 (1995) * * * * Number of Farm Service Centers established* 0 (1995) * * * * Number of agriculture processing centers established 0 (1995) * * * * Number of MBA graduates from Moldavian state institutions (cumulative) 50 (1995) * * * * *Data is not available, and reporting on these indicators is not expected in subsequent Congressional Presentations.
ACTIVITY DATA SHEET
PROGRAM: Moldova
TITLE: A More Competitive and Market-Responsive Private Financial Sector, 117-014
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,848,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $1,800,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 199 ESTIMATED COMPLETION DATE: FY 2001Summary: Moldova is a largely cash economy, and the financial sector is still underdeveloped. The development of a strong and dynamic, market-based economy requires an effective, transparent and safe financial sector. USAID’s strategy emphasizes the development of a private banking sector together with the creation of a transparent and open securities system. USAID technical assistance is aimed at promoting an efficient banking sector together with a transparent and open securities system. Performance was largely in line with projections.
The role of the Government of Moldova in financial sector reform is to develop an efficient banking system and capital market to promote growth of business activities and private sector development. The revitalized banking system is fundamentally more solid in Moldova than in many other Eurasian countries. This strength results primarily from reforms pursued by the National Bank early in the transition to get rid of non-performing banks, and to develop one of the best banking laws among the Eurasian countries.
The development of the financial infrastructure in Moldova, however, has been seriously affected by the dramatic impact of the Russian crisis on the economy in Moldova in general, and the financial sector particularly. As for the Stock exchange, relatively few operations have been reported and cleared through the stock exchange’s system since the Russian financial crisis. In the coming year, program activities will address continuing weaknesses in the financial sector. USAID plans to provide technical assistance to address on-site as well as off-site bank supervision in the wake of the IMF’s termination of its financing of on-site bank supervision. Accounting reform will be expanded beyond the implementation of the international accounting standards in banking operations to cover the adoption and dissemination of international standards on audit. The Commercial Bankers Association will be strengthened to provide support to commercial banks and set them on equal footing in their policy dialogue with the Central Bank.
Key Results: Three results are necessary to achieve the objective of creating a more competitive and market-responsive private financial sector. (1) Government macro-economic and structural adjustment policies support market reform. (2) Market-oriented private banking sector developed with a standardized international accounting system, increase in depository savings, and more competitive banking. (3) Transparent and open securities system performs the function of direct inter-mediation of capital from savings to the private sector.
Performance and Prospects: Great strides have also been made in building basic capital markets in Moldova, including the State Commission for Securities Markets and the Moldova Stock Exchange though development of financial infrastructure was seriously affected by the dramatic impact of the Russian crisis on Moldova’s economy. Since the crisis, relatively few operations have been reported and cleared through the stock exchange’s system.
USAID technical assistance played a role in the significant progress made in building basic capital markets in Moldova with the establishment of government and self-regulatory bodies such as the State Commission for Securities Markets (SCSM) and the Moldova Stock Exchange. USAID technical assistance also led to the inauguration of the National Securities Depository of Moldova (NSDM). At the onset of this activity, the regulatory bodies were in an infant stage but operational and providing oversight and licensing to the private sector. Capital markets were also in a growth phase with trading taking place daily and the exchange operating as self-regulatory body.
USAID projects have helped create a professional bank supervision department at the national bank, and refine laws on banking and other regulatory reforms. Experts have worked with commercial banks in the implementation of back office procedures to efficiently use international accounting standards in banking operations. A market-oriented private banking sector is in place, and the role of former state banks has decreased relative to new private banks.
Possible Adjustments to Plans: No changes in strategy envisioned at this time.
Other Donor Programs: The IMF had stopped assisting the National Bank with its on-site inspection program and legal work. Until now, the World Bank has provided a number of financial sector assessment reports. USAID still remains the principal donor for technical assistance to the financial sector in Moldova.
Principal Contractors, Grantees or Agencies: The contractor for USAID’s bank supervision and bank accounting activities is KPMG /Barents Group. The capital markets assistance implementers were The Intrados Group and Price-Waterhouse-Coopers.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Share of total commercial bank credits to private enterprises and households (as % of total bank credits)
35(1995) 55 60 65 75 Assets of former state-owned banks decreases (as %)
62 (1997) 54 52 47 42 International accounting standards adopted by commercial banks
No(1997) Yes Yes Yes Yes Total corporate securities market capitalization ($ million)
7.7 (1997) 19.2 25 TBD TBD Volume of shares traded on Moldova Stock Exchange ($ thousand)
1,700(1997)* 2,550 3,000 3,500 TBD Number of listings on Moldova Stock Exchange
715(1997)*
769 1,000 1,500 TBD *Baseline changes due to updated information.
ACTIVITY DATA SHEET
PROGRAM: Moldova
TITLE: A More Economically Sustainable and Environmentally Sound Electric Industry and Energy Sector 117-015
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $3,038,000 FSSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $$3,3000,000 FSA
STATUS: ContinuingINITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2001
Summary: Moldova’s energy sector is in desperate financial condition. There is consensus among experts that failure to restructure the energy sector will jeopardize Moldova’s gains in economic reform. Moldova’s dependency on imported gas and electricity combined with domestic non-payment and barter for electricity, gas and heat has resulted in over $500 million in energy debt to Russia and Ukraine. Lack of service in many rural areas is routine; interruptions occur with increasing frequency elsewhere. Industrial, agricultural and residential use of energy is inefficient due to inadequate technology, sparse metering and disincentives to conservation resulting from low prices and collection rates. To address the deteriorating situation, the Government of Moldova, with USAID’s assistance, has established a sound energy legal framework and independent energy regulatory body, restructured the power sector including design of a new electricity market, and initiated 100% international strategic privatization of the electricity distribution and generation companies. The country will benefit through reversal of the foreign debt buildup, reduced domestic budget demands, improved electricity service, reduced non-payment and modern management and investment in the power sector.
Key Results: Achievement of three principal results is required to accomplish this objective. (1) A National Agency for Energy Regulation functions fully. (2) Electricity market functions. (3) Electric distribution and generation assets are privately owned and profitable.
Performance and Prospects: Performance over the last year has been satisfactory. The Government of Moldova, encouraged by World Bank and International Monetary Fund conditionality, and with the technical assistance of USAID, took several decisive measures. Steps taken were intended to result in: (1) divesting the former Soviet era monopoly which encompassed the entire electric energy sector, MoldEnergo, into its constituent operating units; (2) establishing the independent National Agency for Energy Regulation;, and (3) passing the Law Regarding the Individual Privatization Plan for Power Sector Enterprises. With USAID assistance Moldova is privatizing five distribution and three generation and supporting regulatory and electricity market development.
Possible Adjustments to plans: There are no major program adjustments contemplated during the coming year.
Other Donor Programs: USAID coordinates with the World Bank, European Union and European Bank for Reconstruction and Development.
Principal Contractors, Grantees, or Agencies: USAID’s energy sector activities are implemented by Hagler-Bailly Consulting, Inc., the U.S. Energy Association, and Deloitte & Touche.
Selected Performance Measures:
Baseline
Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Restructured energy utilities
0(1996) 0 3 8 TBD
Independent regulatory agency established
No(1996) Yes Yes Yes Yes
Number of privately-owned utilities operating
0 (1996) 0 0 8 9
Elimination of budget subsidies for power and gas *
No(1996) No No Yes * *Planned discontinuation once "yes" status achieved.
ACTIVITY DATA SHEET
PROGRAM: Moldova
TITLE: Increased, Better Informed Citizen participation in Political and Economic Decision-Making. 117-021
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $ 971,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,300,000FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2005Summary: Involvement of people at the grass roots level in political and economic decision making is at the heart of the change required for Moldova’s democratic transition. USAID technical assistance has provided experts and resources to assist Moldova in the revision and the passage of laws and democratic election procedures such as the Law on Political Parties and the Electoral Code. The Government of Moldova introduced and Parliament passed two laws designed to reform local government: the Law on Administrative and Territorial Organization and the Law on Local Public Administration. Notwithstanding a legislative scenario that recognizes the autonomy of local government, the reform strategy will remain confined to a statement of principle unless local government institutions are restructured, and citizens and community-based organizations and NGOs can effectively participate in the process of decision-making. USAID believes that there is a critical need for a broad, on-going process of promoting local government reform in Moldova to achieve greater fiscal autonomy, promote efficient administration and foster democratic governance.
Key Results: USAID will consider progress towards the achievement of this objective on track as targeted local governments and citizens begin to work together to solve priority community problems and to identify opportunities for future development. These efforts will bring about tangible improvements in service delivery. Sharing positive experience and lessons learned local governments in Moldova and in the region will facilitate the duplication of effective approaches in other localities, enabling a broader impact of USAID programs.
Performance and Prospects: Program activities will begin in early 2000.
Possible Adjustments to Plans: Because of the new emphasis of the Government of Moldova on local government reform, USAID has delayed start-up and will adjust this program to balance civil society and local government support activities. Greater emphasis will be placed on passage and implementation of laws that result in increased decentralization and local government autonomy, especially the Law on Local Public Finance, Law on Public Patrimony, and Law on Property Tax. USAID will assist in improving targeted local governments’ technical and managerial capacity in areas such as fiscal and public administration, and effective delivery of social and communal services. USAIID assistance will help put in place democratic processes in targeted locales including increased participation of citizens in local decision-making and more accountable local governments.
Other Donor Programs: A number of donors are concerned with local government reform, including UN Development Program, the European Union’s (EU’s) technical assistance program for Eurasian states, World Bank and Soros Foundation. USAID program aims at empowering local government at the municipal level through the effective transfer of power and responsibility to local government. Other donors including UNDP, EU, World Bank and the Soros Foundation focus on improving the central government efficiency through decentralization at the judet (regional) level.
Principal Contractors, Grantees, or Agencies: The contractor for USAID’s local government reform activities is the Urban Institute.
Selected Performance Measures: This objective is still in the design phase and performance measures have not yet been determined
EXPLANATION FOR SPECIAL INITIATIVES and CROSS-CUTTING PROGRAMS
Title: Special Initiatives, 117-041
Planned FY 2000 Obligation and Funding Source: $41,044,000 FSA
Proposed FY 2001 Obligation and Funding Source: $20,360,000 FSASummary: This objective includes all of the 632 allocations and transfers to other USG entities. The majority of funding in this objective goes to the State Department for public diplomacy, humanitarian transport, international narcotics and law enforcement programs. Other recipients include the Departments of Commerce and Justice.
USAID activities under this objective meet criteria oulined in Agency guidance for special objectives and interests. That is, they are of linited scope and/or duration and respond to particular windows of opportunity. For USAID/Moldova, these activities generally support health care improvement and emergency humanitarian assistance.
Title: Cross-cutting Programs, 117-042
Planned FY 2000 Obligation and Funding Source: $400,000 FSA
Proposed FY 2001 Obligation and Funding Source: $2,000,000 FSASummary: This objective is designed to accommodate activities that make significant contributions to more than one objective. The activities included in this objective for Moldova are the exchanges and training program, the Eurasia Foundation and program development and support activities.
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Last Updated on: February 01, 2001 |
