Moldova: Reducing Poverty and Boosting Shared Prosperity

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Bank Group Contribution

The International Finance Corporation’s (IFC) committed portfolio in Moldova stands at US$ 56.8 million, consisting of 82 percent loans and 16 percent equity and quasi-equity in a total of 12 projects. IFC technical assistance is supporting agri-business, in particular, improving food safety standards to bring them in line with EU practices, and helping the Government to improve and streamline the regulatory framework for businesses.

The net exposure of the Multilateral Investment Guarantee Agency (MIGA) in Moldova amounts to US$ 17.1 million in projects that support foreign bank subsidiaries in the country, including microfinance organizations and leasing operations. Back to top

Partners          

Donor partnerships have been effective in leveraging co-financing and speaking as one on key reforms. The WBG convened the multi-donor Briefing Book, the basic document for donor policy dialogue with governments during 2015–16. The Bank leads the transport donor group, is organizing a similar arrangement for the energy sector, informally coordinates health donors, and participates actively in government sector councils. Collaboration with the EU Delegation, Commission, and member states has been essential, particularly in the energy sector and on governance reforms.

WBG operations have also attracted support from other development partners, including the Global Environment Facility, the Governments of the Netherlands, Sweden, Switzerland, and Japan, the United Nations Children’s Fund, and the U.S. Agency for International Development, which co-financed IDA operations, financed carbon operations, and provided other forms of support, including for Advisory Services and Analytics. Four new technical assistance activities to be implemented under the cross-cutting governance theme will be financed from the United Kingdom’s “Good Governance and Investment Climate” TF.

The Bank has provided technical leadership in sectors where it has leveraged resources from other partners. It provided technical assistance on the Land Transport Infrastructure Strategy and a US$16 million IDA credit, after which the European Bank for Reconstruction and Development and the European Investment Bank provided parallel financing of US$ 450 million to the State Roads Administration to improve national roads and manage the road network. Back to top

Moving Forward                                                

The WBG has a long-term relationship with Moldova, and although the country continues to face various economic and political uncertainties, the Bank will continue to support reforms when opportunities arise. There is likely to be less emphasis on policy-based lending and more on investment programs with tangible results for the population, and the future program will be anchored in Systematic Country Diagnostic (SCD) priorities, namely, improving economic and service governance and skills.

IFC will continue its support to enhancing competitiveness, particularly in the agriculture sector, including further efforts to ensure food safety and quality, addressing competition issues in selected agri-food markets, and improving trade logistics. Back to top

Beneficiaries

Reducing weather risks

“We learned our lesson in 2012 when a severe drought ruined the harvest,” says Ion Baban, a farmer. “In 2013, though we had more rainy days, our own irrigation system financed by the grant allowed us to see a 40 percent increase in our yield. And it improved both the quantity and already high quality of our grapes. And better quality means better prices.” 

Targeting social assistance

“It’s important help for us. The money we receive helps us pay for food and school supplies and buy clothes,” says Sergiu Robu, head of a rural family of 11 children. “My children are growing up; we need more money to buy food, clothes, and to finish the construction of our house.”

Empowering local communities

In Transnistria, 98 percent of Parcani residents voted to put a much-needed roof on the local school. Until two years ago, there was no roof at all. “We couldn’t use the third floor or the second floor, really,” says 9th-grader Carolina Gaidari. “It was impossible to concentrate because of the damp and the mold in the classrooms.” Her classmate Dmitrii Nicolaev agrees. “We like it very much now. There is no leaking water and we don’t have to work with buckets everywhere.”

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