Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
MOLDOVA
FY 1997 FY 1998 FY 1999 Actuals Estimate Request FREEDOM Support Act............... $27,900,000 $25,000,000 $35,500,000 Introduction
The goal of U.S. assistance in Moldova is to promote the country's successful transition to a strong, independent, market-oriented democracy. The U.S. has interest in Moldova succeeding and securing its independence and prosperity, both for stability in the region and as an example of reform to its neighbors. Moldova has sought peaceful solutions to its ethnic and security problems, including offering the largely Russian population of the separatist Transdniester region broad autonomy. Bolstered by the presence of Russian troops, Transdniester continues to hold out for independence, thus denying Moldova control over significant industrial assets and its border with Ukraine.
The Development Challenge
Moldova is viewed by the donor community as a NIS model for its integrated approach to market reform. This has been achieved through a comprehensive reform program supported by USAID and the international donor community. Macroeconomic stabilization and mass privatization of industry have been the cornerstones of the reform, and have been accompanied by the elimination of price controls and the liberalization of the trade regime. As a result, inflation has fallen to approximately 10 percent in 1997 compared to 330 percent in 1994.
Despite this progress, economic growth in Moldova remains elusive, with GDP projections still declining for 1997. Moldova is a poor country, due in part to its dependency on agriculture, which accounts for 60% of GDP and employs half of the working population. Non-payment of Moldova's gas debt to Russia and the latter's threat to cut-off energy supply for power generation reached a crisis stage last year, jeopardizing every sector and overall economic performance. At the same time, the average Moldovan continues to suffer. The average salary in the national economy covered only 48% of the minimum consumer budget in 1996, down from 63.6% in 1993. The correlation of incomes between richest and poorest was 1:7 in 1993; by 1996 this disproportion was 1:11. Aggravating all of these issues is the festering problem of Transdniester, where economic and democratic reform is at a standstill.
USAID's strategy in Moldova seeks to address multiple constraints to economic transition by closely coordinating program resources for land privatization, enterprise restructuring, agribusiness investment, accounting reform and tax policy, and energy restructuring. USAID technical assistance is expected to demonstrate how carefully targeted interventions in these sectors can result in a fair and transparent business environment in which privatized enterprises can restructure and pursue new capital resources, and new business start-ups can flourish.
In reaching this goal, some difficulties are being encountered by the government in enforcing hard-budget constraints, restructuring the industrial and agricultural sectors, and addressing budgetary arrears to energy enterprises. To maintain financial stability and to lay the basis for sustained growth, a broadening and deepening of structural reforms are underway so as to create a business environment which can attract foreign and domestic investment. In the event circumstances improve with Transdniester in favor of reintegration, USAID would expect to expand assistance to this region.
Other Donors
Data from Moldova's Ministry of Economy as of December 1997 indicate that there are approximately
105 projects ongoing with foreign technical assistance, two thirds of the planned target of 166 projects in the country's 1997 two-year technical assistance program plan. The chief donors in 1997 were EU-TACIS, USAID, GTZ of Germany, and the UNDP.
FY 1999 Program
The U. S. assistance program is working with Moldovan officials to expand land and energy sector reforms, improve agricultural capacity, improve fiscal performance through better tax policies and administration, reform the accounting system, and broaden citizen participation in economic and political reform.
Under the economic restructuring goal, USAID priorities will be land privatization, both urban and rural, including decollectivization, and issuance of land titles. Other areas of assistance include fiscal reform; improvement of the policy environment; banking sector infrastructure development, small business development, and energy restructuring and efficiency measures, including full cost recovery. FY 1999 funding is requested for five strategic objectives: increased transfer of state-owned assets to the private sector; increased soundness of fiscal policies and fiscal management practices; a more market-oriented financial system; a more competitive and market-responsive private financial sector; a more economically sustainable and environmentally sound energy sector.
Under the democracy and governance goal, USAID is focussing and deepening its efforts in democratic reform by developing a strategic objective in this area. Past efforts have included special initiatives in NGO development, legal reform, legal education and training, election-related support, voter and civic education, and decentralization. Future activities will focus on local-level efforts to increase citizen participation in democratic and economic reforms as a result of improved access to information, greater awareness of legal and economic rights, and increased government transparency and accountability. FY 1999 funding is requested for the strategic objective: increased better-informed citizens' participation in political and economic decision-making.
Under cross-cutting and special initiatives, USAID provides humanitarian assistance through local NGOs and government social services institutions. In addition, USAID supports the development of local NGOs whose efforts are critical as part of the private sector network of organizations providing social protection services to vulnerable groups. To this end, Eurasia Foundation provides training and small seed grants to foster the development of sustainable local social service NGOs.
Through medical partnerships, USAID is improving the efficiency and productivity of institutions and health care providers in the delivery and management of medical care. The Moldovan-Minnesota partners' activities focus on 1) improving infection control procedures to reduce hospital-acquired infections; 2) introducing western-style team management and data collection; 3) improving emergency medical services skills of doctors, police, firemen, and industrial safety personnel; 4) expanding cardiovascular disease prevention; 5) introducing health promotion programs; 6) integrating women's health; and 7) reforming nursing education. The Moldovan partnership opened the first of 13 Women's Wellness Centers across the NIS which will provide Moldovan women with comprehensive primary care, screening and diagnostics, family planning, health education and mental health counseling.
The women's reproductive health program assists with improving the quality of and access to reproductive health services by establishing demonstration sites for training and delivery of family planning services; instituting reproductive health training; providing public information and education about family planning; and, improving the supply/demand for contraceptive methods.
MOLDOVA
FY 1999 PROGRAM SUMMARY*
(in Thousands of Dollars)
Strategic ObjectivesEconomic Restructuring Democratic
TransitionSocial Stabilization Cross-cutting / Special Initiatives Total Privatization 4,250 -- -- -- 4,250 Fiscal Reform 1,950 -- -- -- 1,950 Private Enterprise 12,650 -- -- -- 12,650 Financial Reform 1,250 -- -- -- 1,250 Energy 1,100 -- -- -- 1,100 Environmental Management -- -- -- -- -- Citizens' Participation -- 1,500 -- -- 1,500 Legal Systems -- -- -- -- -- Local Government -- -- -- -- -- Crises -- -- -- -- -- Social Benefits -- -- -- -- -- Environmental Health -- -- -- -- -- Cross-cutting / Special Initiatives -- -- -- 12,800 12,800 TOTAL 21,200 1,500 -- 12,800 35,500
*FREEDOM Support Act (FSA) funds
USAID Mission Director: Gregory Huger
ACTIVITY DATA SHEET
PROGRAM: MOLDOVA
TITLE: Privatization, 110-S001.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $4,250,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1994; ESTIMATED COMPLETION DATE: FY 1999
Purpose: Increased transfer of state-owned assets to the private sector.
USAID Role and Achievements to Date: USAID has been instrumental in helping Moldova achieve precedent-setting results in privatization. Moldova claims the distinction as one of two NIS republics to complete the mass privatization program, and the first of the NIS republics to issue individual land titles to independent private farmers and dissolve the existing collective structures. With the participation of 98 percent of the population, a total of 2,235 small, medium, and large enterprises have been privatized. Additionally, more than 80 percent of the housing stock is privately owned. The Government of Moldova has now moved into a second privatization phase to encompass cash sales of residual state-owned shares, additional small-scale objects, unfinished construction and land privatization.
USAID supported a collective farm break-up pilot completed in late 1996, which resulted in the issuance of some 1,200 legally valid land titles. At the government's request, USAID expanded the pilot phases to include an additional 72 farms during 1997 with excellent results. The results of the two initial USAID technical assistance pilot phases are: (1) more than 1,100 new farms, including peasant farms, joint stock companies and limited liability companies have been created and registered as a result of the collective farm break-up; (2) more than 200,000 land titles issued to individual peasant farmers; (3) more than 200,000 private land parcels created; (4) a dramatic cut in the GOM cost for all parcelling and titling work from $40 per land title to $2 per land title; (5) 11 private sector surveyor firms performing parcelling and titling work; 6) 98 privatized enterprises purchasing their land and more than 100 enterprises awaiting to do so; and (7) more than 500 Moldovans trained in all aspects of the collective farm breakup process and land parcelling and titling process. In 1998, USAID will extend this activity nationwide to include an additional 550 farms representing approximately 70 percent of the agricultural land of Moldova.
Moldova is now testing a new mechanism for the cash sale of residual state shares in enterprises formerly put through the mass privatization program. The mechanism being pilot tested offers the residual share packets of numerous companies through the submission of sealed bids to the Moldova Stock Exchange. Selected Moldovan broker-dealers are acting as intermediaries in seeking interested buyers. If this mechanism is successful, and other residual shares are sold, this will provide additional impetus for corporate governance and enterprise restructuring to begin to work.
Description: USAID assistance in FY 1999 will complete the collective farm break-up and land privatization effort. Technical assistance will also continue to focus on the development of a land and real estate market, using a multi-faceted approach: (1) doing away with central government control and decentralizing the land arrangement work and the preparation and issuance of land titles; (2) developing private surveyor firms capable of doing work previously done by the government surveyors but at much reduced prices that will make land survey work affordable to every Moldovan in future years; and (3) assisting the Government of Moldova in reducing by 80% the cost of privatizing land associated with privatized enterprises. In addition, USAID will be taking part in a tripartite effort (EU TACIS, GTZ, and USAID) in privatizing a selected group of strategic enterprises.
Host Country and Other Donors: The Moldovan Government has under consideration a proposal from the World Bank to create an agricultural restructuring agency which would be responsible for the restructuring of debt owed by the collectives. EU-TACIS is providing training and technical assistance
in the restructuring of up to 12 collective farms.
Beneficiaries: Beneficiaries include the Moldovan population at large as Moldova is primarily an agricultural economy and therefore private ownership and possession of land titles are key to achieving market reform and attracting domestic and foreign investment. Also privatization of the residual state shares will accelerate the restructuring of enterprises and strengthen the corporate governance process under way since 98% of the population directly participated in the mass privatization program. During this program, employees and managers of small to large-scale firms exercised preferential rights to ownership in their own enterprises.
Principal Contractors, Grantees, or Agencies: East-West Management Institute is the implementor of the rural land privatization program while 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.
Major Results Indicators: Baseline Target Number of land titles issued (cumulative) 0 (1995) 1,850,000 (1999) Market-based land pricing system No (1995) Yes (1999) implemented
ACTIVITY DATA SHEET
PROGRAM: MOLDOVA
TITLE: Fiscal Reform, 110-S001.2
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,950,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1993; ESTIMATED COMPLETION DATE: FY 2000
Purpose: Increased soundness of fiscal policies and fiscal management practices.
Background: Fiscal reform is key to the success of Moldova's transition. Its success or failure will impact the long-term viability of other objectives. USAID has, therefore, provided tools and training to Ministry of Finance (MOF) staff in the areas of tax policy, tax analysis and revenue forecasting, tax administration and computerization of tax collection. It has also assisted the Parliament to develop its legislative drafting and analysis capacity, particularly in the tax and budget areas. Under its auspices, a Center for Budgetary and Financial Analysis has been established to advise the Parliament. U.S. Treasury advisors have been instrumental in helping the MOF in budget law, budget classification, organization of a Treasury, and implementation of a computerized budget execution, accounting and cash and debt management system. Fiscal reform is proving to be a long, arduous task involving many steps.
USAID Role and Achievements to Date: A team of experts has been working with the MOF and the Parliament in drafting comprehensive reforms to Moldovan tax laws. As a result, new laws covering corporate, personal, income and Value Added tax laws were adopted in 1997. Advisors are also working on techniques, procedures and systems to administer these laws, including assistance in computerizing the tax system under a World Bank loan.
Description: USAID-funded advisors, including contractors and U.S. Treasury advisors, will continue to provide assistance in fiscal reform activities in FY 1999, coordinating closely with other donor organizations, particularly the IMF and the World Bank. On the tax side, we expect to move more strongly into the implementation phase, with significant improvements in computerization, audit and collections. We also expect that, in time, government securities will finance an ever-increasing part of the government budget. In the Parliament, the growing capability of the CBFA to provide independent advice and analysis will result in better drafted and more economically informed legislation and aid significantly in deliberations on budget and tax legislation.
Host Country and Other Donors: The World Bank has approved a $1.9 million loan for computerization of the State Tax Service, for which USAID has supplied the necessary technical assistance. The IMF is providing assistance to the MOF in macroeconomic analysis and development of the treasury system. GTZ and various other donors are assisting with reform of customs law and procedures, which complements USAID's efforts on VAT and excise taxes.
Beneficiaries: The MOF receives advice on tax policy and tax law codification, tax analysis, and tax administration and computerization. It also gets advice on budget process, treasury management and government securities issuance. The Budget and Finance Committee of the Parliament, and soon other committees as well, receive advice on the budget, tax and other economic policy legislation.
Principal Contractors, Grantees, or Agencies: The contractor for follow-on work on USAID's tax reform and parliamentary development activities has not been selected. The USAID-funded U.S. Department of Treasury advisors assist with budget reform, treasury management and government securities issuance.
Major Results Indicators: Baseline Targets Government meets IMF deficit targets No (1996) Yes (1998-99) Comprehensive budget law adopted and No (1995) Yes (1999) implemented State budget revenues equal or exceed No (1995) Yes (1999) forecast level Treasury system operational, centrally No (1995) Yes (2000) and locally
ACTIVITY DATA SHEET
PROGRAM: MOLDOVA
TITLE: Private Enterprise, 110-S001.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $12,650,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Accelerated development and growth of private enterprises.
Background: Moldova is the first country in the NIS to set in motion the necessary phases to complete the privatization process. Given its successes in privatizing its economy, Moldova is currently developing a basic capital markets infrastructure, and the legal and regulatory framework required for a market economy. USAID is emphasizing post-privatization programs that improve the management of private and privatized businesses, strengthen business advocacy associations, build capacity in the preparation and review of economic legislation, and foster trade and investment in agriculture and related industries. The improved management of business is a key to the creation of viable private enterprises.
USAID Role and Achievements to date: Without laws, regulations and policies that are conducive to business activity and international trade, the private sector will not be able to grow. USAID is addressing that through strengthening business advocacy associations and in building the GOM's internal capacity to draft coherent and consistent commercial laws appropriate for a market economy. While USAID has not taken the lead on Moldova's accession to the World Trade Association (WTO), it is providing limited technical assistance to facilitate this process. Our technical assistance will complete the final stage of capacity building in the field of business consulting services such as marketing, management, accounting and financial analysis. Institutional development is being provided to a self-regulatory organization in support of the accounting and auditing industry. USAID is also working with the government and parliament to create a legal and regulatory environment in which businesses can grow. Other areas of assistance include the development of business support services including a computerized business information network to link Moldova with other NIS countries, Western Europe and the U.S.
Because of the enormous potential of agriculture, USAID is helping this sector adjust to a market economy by promoting private sector solutions to agriculture production and marketing problems through the agribusiness partnership program which promotes U.S.-Moldovan joint ventures in agriculture production, processing and marketing, and through the farmer-to-farmer program. There are currently four agribusiness partnerships underway, in seed production, dairy, dried fruit, agriculture input supply, with another soon-to-be awarded in viticulture.
Description: In order to improve the management capacity of business, USAID will assist in the improvement of production and processing technologies in selected businesses, the provision of additional financial resources for selected local businesses through joint ventures, ensure the availability of adequate market information to identified pilot enterprises, and the development of business and farm advisory centers. USAID will also build on its integrated and interdependent activities to develop the legal and regulatory environment related to capital markets and land markets, privatization of urban and agricultural land, expansion of the capital markets infrastructure and the development of western accounting principles.
Host Country and Other Donors: USAID coordinates with the United Nations Development Programme and EU-TACIS 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 (WTO) accession.
Beneficiaries: 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, as well as light manufacturing, construction and the service industry.
Principal Contractors, Grantees or Agencies: Development Alternatives Inc. provides business support services. Peace Corps provides business volunteers to advise the Moldovan managers of the business service centers. Citizens Network for Foreign Affairs (CNFA) provides technical assistance to develop business partnerships through American investment in the Moldovan agriculture sector. IRIS builds the Moldovan capacity for drafting good commercial legislation.
Major Results Indicators: Baseline Target Number of MBA graduates from Moldovan 50 (1995) 1,500 (1999) state institutions (cumulative) Number of companies listed on stock 0 (1995) 70 (1999) exchange with financial statements conforming to international accounting standards (cumulative) Number of corporations filing quarterly 0 (1996) 100 (1999) reports with State Commission on Securities Markets (cumulative) Compliance with trade standards of World No (1995) Yes (1998) Trade Organization (WTO)
ACTIVITY DATA SHEET
PROGRAM: MOLDOVA
TITLE: Financial Reform, 110-S001.4
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,250,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1999
Purpose: A more competitive and market-responsive private financial sector as well as continued development of a modern capital market infrastructure.
USAID Role and Achievements to date: A Securities and Exchange Commission has been established making Moldova one of the first NIS republics to establish an independent securities market regulating entity with Ministry status. The Moldovan Stock Exchange opened in 1995. To date, 43 investment companies, 11 trust companies, 27 independent registrars, and 54 broker/dealers and consulting companies are operational. In addition, the target of adopting international accounting standards has been met. The National Bank and commercial banks have converted to a new chart of accounts consistent with internationally accepted standards. Improved banking supervision is a major emphasis, and it has led to the formation of a troubled bank resolution unit in the national bank. This unit has already made its first recommendations for dealing with the largest troubled institution. Aid is also assisting the NBM in the development of an early warning system for its bank supervision function as well as helping on the improvement of the NBU's regulatory structure.
Description: USAID's assistance in 1999 will continue to focus on helping to create a professional bank supervision department at the National Bank as well as assisting, in refining the laws and regulatory-reform environment and in assisting the commercial banks in the conversion to international accounting standards and in improving their own integral control functions. In developing Moldova's capital markets, USAID will assist with the development of self-regulation among market participants. In the banking sector, USAID will focus on training employees of the National and commercial banks in western banking practices and standards.
Host Country and Other Donors: The National Bank is receiving assistance in on-site bank supervision from the International Monetary Fund in collaboration with USAID.
Beneficiaries: The beneficiaries are the National Bank of Moldova and virtually all the larger banks in the country that have both sent employees to a USAID-funded training center and have received direct training in the conversion to international accounting standards. By extension, depositors and borrowers will benefit, as will firms and their employees that access securities markets and the financial intermediaries - banks, brokerage firms, etc. - that participate in the financial market.
Principal Contractors, Grantees, or Agencies: Barents-KPMG, Financial Services Volunteer Corps are implementing USAID's banking support activities. The capital markets assistance implementor is The Intrados Group.
Major Results Indicators: Baseline Targets Commercial bank credit to private 35% (1995) 55% (1999) enterprises and households (as % of total bank credit) Equity capital of private banks (as 15% (1995) 30% (1999) % of assets of total banking system) International accounting standards No (1997) Yes (1998) adopted by commercial banks
ACTIVITY DATA SHEET
PROGRAM: MOLDOVA
TITLE: Energy, 110-S001.5
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,100,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 1999
Purpose: A more economically sustainable and environmentally sound energy sector
Background: Restructuring and privatization of the energy sector presents a major impediment to the continued reform of other sectors. Privatization of the energy sector is complicated by the fact that Russia is the key supplier, and Moldova owes the Russian firm Gazprom more than $600 million. Aware of its difficulties in this sector, the Government of Moldova (GOM) has expressed its intent to proceed with the rapid privatization of the energy sector with commitments imbedded in the World Bank's Structural Adjustment Loan. Consequently, the World Bank and the GOM requested assistance from USAID in power and gas sector reform including power privatization.
USAID Role and Achievements to Date: Until very recently, there has been little movement in restructuring electricity and gas companies and establishing independent regulation. In September 1997, USAID started assistance with legal and regulatory reform by assisting in the creation of the Regulatory Agency and to development and implementation restructuring plans for Moldovagaz and Moldenergo. USAID is supporting organizational restructuring, developing the energy market and contracts, corporatization and preparation for privatization. This is being expanded to privatization assistance activities for the power sector including a comprehensive public education campaign targeting key governmental decision makers and the Moldovan public; evaluation of the enterprises, the development of the privatization plan; and support in the implementation of the privatization plan.
Description: The USAID program in Moldova will focus on establishing a market-oriented regulatory framework and independent regulatory body, implementation of restructuring of Moldovagas and Moldenergo, as well as improved managerial, planning and commercial practices and control procedures within Moldovagas and Moldenergo.
Host Country and Other Donors: USAID coordinates with the World Bank, EU-TACIS and EBRD.
Beneficiaries: The State Department of Energy, Moldenergo, Moldovagas, Fossil-fuel power plants (Chisinau CHP#1, CHP#2) will directly benefit, and the environment and consumers of energy resource will indirectly benefit from subsequent improvements.
Principal Contractors, Grantees, or Agencies: USAID's energy sector activities are implemented by Hagler-Bailly Consulting, Inc., Burns and Roe, the US Energy Association, and Abt Associates.
Major Results Indicators: Baseline Targets Restructured energy utilities 0 (1996) 1 (1999) Elimination of budgetary subsidies for power and gas No (1996) Yes (1999) Number of privately-owned utilities operating 0 (1996) 7 (1999) Independent regulatory agency established No (1996) Yes (1999)
ACTIVITY DATA SHEET
PROGRAM: MOLDOVA
TITLE: Citizen's Participation, 110-S002.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,500,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2001
Purpose: Increased better-informed citizen's participation in political and economic decision-making at the local level.
Background: Because political power is centralized at the national level, and there is little political will among politicians to address citizen or business concerns at the local level, USAID has adjusted its strategy to emphasize transparency and increased participation, with a focus on local government. The successful transition to a market economy is inextricably linked to the active role that citizens must play if the changes are to take root and if the new processes and the new mentality are to be sustained.
USAID Role and Achievements to Date: As part of earlier special initiatives, the International Foundation for Electoral Systems (IFES) has provided Moldovan citizens with information on political elections, law, and civil education. IFES is also supporting workshops and educational exchanges for the purpose of advancing the development of Moldova's civil society. To conduct seminars on public administration, IFES has established the NGO Training and Consulting Center. It also sponsors a Mass Media Working Group, a Voter Education Working Group and an NGO Working Group. These groups are providing NGOs with skills to advocate their interests through government institutions.
Through local government and independent media activities, IFES provides legal advice and public administration training seminars for politicians. These training activities provide local-level politicians and journalists with information to strengthen the independent media.
Description: USAID's assistance in FY 1999 focusses on working at the local, national, and grassroots levels to bring about decentralization, transparency, and greater accountability in government operations. This will be achieved through activities that provide continuing legal education for law students, lawyers, judges and other legal professionals who are faced with learning a new system, new laws, and procedures; strengthen NGOs that are most actively affecting public policy or providing critical social services; and, strengthen the independent media to increase the amount of information available to citizens.
Host Country and Other Donors: The European Union is funding the Soros Foundation to establish a national training and information center for NGOs. The United Nations Development Program assists local governments in capacity building.
Beneficiaries: Beneficiaries include NGOs, independent media, and the citizens of Moldova who have access to accurate and unbiased information, and participate in deciding the country's future.
Principal Contractors, Grantees, or Agencies: International Foundation for Electoral Systems (IFES); American Bar Association/Central and East European Law Initiative (ABA/CEELI).
Major Results Indicators: Because this is a new strategic objective for the USAID program in Moldova, indicators and targets are being identified during 1998. Illustrative indicators include:
Number of NGOs operating outside the Capital.
Membership in NGOs outside the Capital.
Percentage of people who perceive municipal procedures for establishing and operating a business aretransparent and fair.
Percentage of people who believe that legal protection in defending their rights and interests is sufficient.
Number of cities outside the Capital with coverage of national news by non-governmental stations.
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