third national report on millennium development goals, moldova

7/27/2019 Third National Report on Millennium Development Goals, Moldova

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The Third Report on MillenniumDevelopment Goals.Republic of Moldova

This Report was produced by the Government of the Republic of Moldova with the as-sistance of the UN Agencies in Moldova. Opinions expressed in this publication do notnecessarily reect the offi cial views of the United Nations.

Chisinau, 2013


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ACKNOWLEDGEMENTS The authors of the Report are: Valeriu Prohnitchi(MDG 1 and MDG 8), Valentina Bodrug-Lungu(MDG 2 and MDG 3), Arcadie Astrahan (MDG 4,MDG 5 an MDG 6 , an Va entin Ci otaru MDG7). Valeriu Prohnitchi has provided the general co-ordination of the process at its initial stages, beingsucceeded later by Adrian Lupusor. The develop-ment of the Report has beneted from the sup-port provided by a number of public authoritiesand agencies of the Republic of Moldova, includ-ing the State Chancellery, National Bureau of Sta-tistics, National Bank of Moldova, Ministry of Re-gional Development and Constructions, Ministryof Labour, Social Protection, and Family, Ministryof Education, National Commission of FinancialMarket, Ministry of Finance, Ministry of Health,National Agency for Regulation in Electronic Com-munications and Information Technology, BorderPolice Department, Ministry of Economy, and Min-istry of Environment. A number of relevant anduseful comments were received from the mem-bers of the four thematic working groups, whichwere established to ensure the broad participa-tion in developing this Report (Poverty, Educa-tion and Gender, Health, and Environment), aswell as from the UNDP Moldova staff. In particular,

the Report has benetted from the valuable sug-gestions provided by Alexandru Oprunenco andDumitru Vasilescu (UNDP Moldova), Ghenadie Cre-tu (International Organisation for Migration), Sil-viu Ciobanu, Larisa Boderscova (WHO Moldova),E ena Laur, Ange a Capce ea, Larisa Virtosu anLudmila Lefter (UNICEF Moldova), Oxana Lipcanu(International Labour Organisation), prof. PetruStratulat and conf. Stelian Hodorogea (Instituteof Mother and Child), Liliana Caraulan (PAS), Mar-cela Tirdea, Rodica Scutelnic (Ministry of Health),Stela Gheorghita and Anatolie Melnic (NCPH),Liliana Domente (Phthosioneumology InstituteChiril Draganiuc), Lilia Pascal and Diana Doros(Ministry of Labour, Social Protection and Family),Galina Gavrilita (Ministry of Education), Alexandru

Curasov (Positive Initiative), Valeriu Sava (SDC),Ala Negruta, Elena Vutcarau (National Bureau of Statistics), Maria Nagornii, Veronica, Lopotenco Tatiana Plesco (Ministry of Environment), VladimirGirnet (Ecology Agency from Cahul), prof. NicolaeOpopol (State University of Medicine and Pharma-cy Nicolae Testemitanu, NCPM), Alexandru Coro-novschi (Agency Apele Moldovei), Tatiana TuguiWaste Governance wit in t e IEVP East , Ro ica

Iordanov (PA EcoContact), Andrei Isac, indepen-dent consultant, expert in environmental poli-cies), Alexei Andreev, (PA BIOTICA), Elena Bivol(PA BIOS), Mihai Mustea (National EnvironmentCentre , Victor Cimpoes PA Cutezatoru , Va entinSascov (National Famers Federation from Mol-dova), Valentina Gak (PA Territorial Association of Mayors from Hincesti Rayon), Alexandru Lesan,(mayor, Cosnita village, Dubasari rayon), NicolaeRusu Irrigation Water Users Association Cosnita ,Dubasari rayon), Arcadie Barbarosie (Institute forPublic Policies), Eugenia Ganea (Millennium Chal-enge Account Mo ova , Catinca Mar arovici(Womens Political Club 50/50), Olga Nicolenco(gender expert), Ludmical Ceaglic (Mayor, Calfa vil-lage), Mhitarean Cristina (Gender Center), MarianaIanachevici (Asociaia pentru Abilitarea Copilului i

Fami iei AVE Copiii , Ga ina Lavraniuc Directoare,Gimnaziu, s.Volovia), Vera Bivol (pensioner, Cost-esti village, Ialoveni rayon), Rimofei Bivol (farmer,Costesti village, Ialoveni rayon).

The authors are sincerely grateful to all those whoprovided data and feedback for developing thisReport. However, the responsibility for all inter-pretation of the data, the analysis, the conclusions,an recommen ations provi e in t e report ieswith the authors.

This Report was produced by the Government of the Republic of Moldova with the assistance of theUN Agencies in Moldova. Opinions expressed inthis publication do not necessarily reect the of-cial views of the United Nations.


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The Third Report on Millennium Development Goals. Republic of Moldova

CONTENTSLIST OF ABBREVIATIONS 5

FOREWORD ............................. ......................................................................................... 6EXECUTIVE SUMMARY.......... ......................................................................................... 8

MDGS AND TRANSCENDING TDEVELOPME CHALLENGES AT A GLANCE .... 3

INTRODUCTION ..................... ....................................................................................... 25

NATIONAL CONTEXT: GLOB E AND INTERNAL CHALLENGESL TURBULEN 26

MDG 1 Reduce extreme p overty gerand hu :a small and still unc ertain success .................................................................................30

MDG 2 Achieve universal ccess ral compulsory educationto gene :problems related t alityaccess and qu . ....................................................................34

MDG 3 Promote gen er e qua ity power womenan ema rea c ance to sp mente up eve op ...................................................................40

MDG 4 Reduce child mor tality: nt progressimportathat should be mai tained . ................................................................................................. 46

MDG 5 Improve maternal health: s evolution,sinuouncertain perspecti ives ........................................................................................................... 52

MDG 6 Com at HIV/AIDS,tu ercu osis n ot er iseasesaa very diffi cult objective ........................................................................................................ 58

MDG 7 Ensure sustainabl environment: better balancebetween society an dedd nature is ne ......................................................................64

MDG 8 Create a global pa tnership for velopmentd : towards a moreadvantageous inte ration into global economyth ....................................... 0

MDG: nished agenda, or not yet? .......................................................................................... 4

POST 2015 DEVELOPMENT GENDA 8LIST OF REFERENCES AND SOURCES 81

ANNEX A:MDG Monitoring Indicators .................................................................................. 83

ANNEX B:S are of women e nomy by typesployed in ecoof economic activi ies, % ........................................................................................ 88

ANNEX C:Forest Vegetation i of Moldovan the Republic ..............................................89

ANNEX D:Share of area cove in different countries of europered with forest ....90


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List of TABLES:

Table 1. volution of MD riod 2006-20121 indicators, peintermediary an nal targets ......................................................................................................................... 3

Table 2. ndicators on chi in education, % of the total, period 2003-2012ldrens enrolmen .......3

Table 3. omen in decisi ons at the local level, % of theon-making positi

total number of osition holders .................................................................................................................... 1Table 4. omen in decisi ons at the central level, % of theon-making positi

total position hollders ............................................................................................................................................. 1

Table 5. ender disaggre vants by administrative levels and typesgation of civil serf held position, anuary 1, 2013 .....................................................................................................................

Table 6. volution of sala on gendery earnings base ....................................................................................... 3

Table 7. volution of HIV AIDS ases per 100,000 populationincidence,during 2000-201 , ediary targetsnal and inter ................................................................................ 9

Table 8. Evolution of mdg od 2006-2011 and intermediary and nal Targets7 indicators, peri .....

Table 9. easibility of the ievepossibility to ach MDG intermediary (2010)

and nal targets (2015) ........................................................................................................................................ 7

List of FIGURES:

Figure 1. ross enrolment gedrate of children a 3-6 years old in preschool institutions,2003-2012, %....... ........................................................................................................................................................ 3

Figure 2. nfant mortality rate (IMR er-5 mortality rate per 1,000 live births) and un ........................ 7

Figure 3. Share of under-2 ted against measles children vaccina .................................................................... 9

Figure 4. Maternal mortali 0 live births (y rate per 100 0 MDG 5 Target 1) .............................................. 4

Figure 5. ate of abortion n of reproductive ageper 1000 wome ................................................................

Figure 6. istribution of n w cases of IV fection by the probable routes of transmissioniin Moldova 1995-2011 ...........................................................................................................................................

Figure 7. volution of MD 6 indicator for B, period 2006-2011 and intermediaryand nal targets . ........................................................................................................................................................ 1

Figure 8. Status of person with TB of global incidence, 2012, ....................................................................

Figure 9. Share of inhabita ent access to improved water sources, %nts with perman .....................

Figure 10. Share of inhabita sewerage, %nts with access t .................................................................................

Figure 11. Sustainable dev nsation of the vicious cycle by the virtuous circlelopment: comp .. 7

List of BOXES:

Box 1. Moldovan emigr ture at homents build their f ..................................................................................33

Box 2. essons to be le ovan Educational Systemrned for the Mol .....................................................39

Box 3. romotion of wo making and political positions the voicemen in decision-of a female may r ..................................................................................................................................................... 4

Box 4. The modernizati are system saves human livesn of the healthc ............................................... 1

Box 5. bout the impor e monitoring of pregnant womentance of adequa ................................... 7

Box 6. overty and tub rculosis ...................................................................................................................................... 3

Box 7. lderly and tap ater .............................................................................................................................................. 9

Box 8. Migrants expect moldovas development perspectivestions regarding .............................73


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AIDS Acquired Immu ndromenodeciency S

DOTS Directly observ ort course strategy recommended by WHOd treatment, s

GFATM Global Fund to berculosis and MalariaFight AIDS, Tu

HBS Household Budget Survey

HIV Human Immun usodeciency Vir

IBBS Integrated Bio vey ehavioural Sur

IMCI Integrate Man oo I nessgement o C iKAP HIV Knowledg tice, Attitude, Pra

MDG Millennium De lelopment Goa

MOH Ministry of Health

MEc Ministry of Economy

MEn Ministry o Env ironment

MFin Ministry of Fin nceNARECIT ational Agency in Electronic Communication and Information Technology for Regulation i

NBM National Bank f Moldova

NBS National Burea of Statistics

NCFM National Com cial Marketission of Finan

NCPH Nationa Centre tor Pu ic Hea

NGO Nongovernmen nstal Organizatio

STI Sexually Trans sitted Infection

TB Tuberculosis

UNGASS United Nations bly Special Session for HIV/AIDSGeneral Assem

WSS Water an Sewerage Supp y

WHO World Health Organization

Water and Sewe ategy rage Supply Str

LIST OF ABBREVIATIONS

WSS Strategy


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FOREWORD The Millennium Develop-ment Goals established mini-

mum standards, for eachstate to reach, to ensure adecent standard of living forits population. In partner-ship with 189 countries, whosigned the declaration at theUnited Nations MillenniumSummit in 2000, the Moldo-

van Government made a commitment to ensure in-clusive and sustainable development for its people. The countrys long term future and competitivenessdepend on the ability to create the conditions for ev-ery citizen, individually and professionally, to be ableto reach their full potential. However, a fundamentalprerequisite of this goal is ensuring the greatest pos-sible access to basic goods and services such as safedrinking water and proper sewage systems, qualityhealthcare, a clean environment, modern roads aswell as equal opportunities regardless of gender. These criteria are included in the eight MillenniumDevelopment Goals, which ultimately dene qualityof life and serve as pillars to modernize the country.

The Third National MDG Report offers an objectiveanalysis of Moldovas progress towards reaching theobjectives which were established for 2010-2013,and the natural progression of efforts to measureimplementation of the MDG agenda. Moldova hasmade tangible progress in reducing poverty and in-fant mortality, and in ensuring access to compulsoryeducation. Hence, from 2006-2012 the poverty ratedecreased from 30.2% to 16.6%, the child mortalityrate decreased from 11.8% to 9.8%, and preschoolenrolment for children increased from 90.3% to93.5%. All these indicators reect an improving stan-dard of living and are the product of reforms whichare currently underway. At the same time, the Gov-ernment acknowledges the discrepancy in develop-ment between urban and rural areas, and the all toofrequent marginalization of small towns in terms of access to economic opportunities and access to cleanwater, healthcare and quality education. A numberof strategic planning documents, such as the Nation-al Decentralization Strategy adopted in 2012, havesought to address these problems in conjunctionwith The Strategy of Agriculture and Rural Develop-ment of Moldova which will be implemented startingin 2014.

The reports utility is its emphasis on areas where theGovernment should seek to strengthen its efforts to

achieve faster and more qualitative changes. In par-ticular, progress made in combating tuberculosis iscurrently very slow, while the incidence of HIV / AIDShas become an increasing problem in rural areas,especially in the Transnistrian region where the to-tal prevalence of HIV infection is almost three timeshigher, in comparison to the right side of the RiverNistru. When it comes to promoting gender equal-ity, by providing women with equal opportunities toengage in social, professional, and political spherescompared to men, clearly much remains to be done.Finally, the question of environmental quality remainsa pressing concern, and in this respect Moldova seeksto increase forested areas and to continue efforts toincrease access to larger numbers of people in ruralareas to sewerage systems and quality water.

In recent years, the Government has embarked on anumber of systemic reforms to modernize the coun-try and improve the quality of life of all citizens. Werealize that we follow a long and diffi cult path, andthe Millennium Development Goals serves as ourguide on this ambitious journey. In this context, we

remain partners in implementing the MDGs, and weacknowledge the importance of enlisting the sup-port of the entire population in this process, as wellas the need of an open dialogue and communica-tion during the implementation process. At the sametime, we rely on the support of our friends and part-ners from the international community who providean indispensable contribution to the transformationof the country from a transitional state into a pros-perous, and dynamic one, that has a clear Europeanperspective. However, to successfully reach these objectives we must actively harness the cooperation of key stakeholders and institutions, at both the centraland regional levels. And last, but not least, develop-ment which meets the interests of all the people can-not be achieved without their active involvement inthis transformation, which the country is currentlywitnessing. Therefore, we are committed to attract-ing as large a number of people, as is possible, inthe consultative and decision-making processes, be-cause, ultimately, the Millennium Development Goalsare designed to ensure a decent life for all citizens of this country. In this respect, we will seek to improvethe quality of life of the rural population, including


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Transnistria, where the development discrepanciesare signicant.

We acknowledge that it is impossible to completelyaddress all of Moldovas development challenges by2015. But with the initial premise that all Moldovascitizens deserve a decent living, in truth the Govern-ments policies aim far beyond this near term horizon. Together these sustained efforts will support our im-plementation of the National Development Strategy,Moldova 2020, in conjunction with other recently-developed sectoral strategies. The key to success in

reforming and modernizing the country lies in ourown hands, and in our own homes, in partnership

with the Moldovan people, not only can we leverageour current opportunities, but we can also overcomethe challenges outlined in this report.

Iurie LEANCA,Prime Minister of the Republic of Moldova


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MDGs importance for development W en t eMoldovan Government signed the MillenniumDeclaration at the Millennium Summit in 2000,along with other 189 countries, they made a com-mitment to a comprehensive process of reform toa ress poverty, ensure peace an security, anobserve human rights and democratic principles. The MDGs are vitally important, because they serveas useful tools to dene policy priorities, monitorthe impact of reforms implemented by each of thecountries w ic signe t e Dec aration, as we asmobilizing new domestic and international re-sources to address poverty reduction. All theseaspects make a contribution to increasing pub-

lic accountability, and in comparison with othercountries a ows t e internationa communityand donors to target their programs more effec-tively to meet domestic needs. In general, moni-toring the implementation of the MDGs progresshighlights key successes, as well as developmentc a enges, w ic s ou e ea t wit t rougfurther systemic reforms. The main drawback ob-served across all of the 8 Goals is the gap betweenthe rural and urban living standards, which hasactually increased in recent years. Hence, in spiteof the remarkable progress witnessed in povertyreduction, rural populations continue to have lim-ited access to basic assets and services, such aswater and sewerage supply, health and educationservices. In this way, the scal poverty of the ru-ral population is magnied by a lack of economicand social infrastructure, which together with theabsence of viable economic alternatives forcesthe population to migrate. The discrepancies be-tween the urban and rural areas are also apparentin terms of visible social inequities, in terms of so-cial exclusion of the poor. Thus, children from theless nancially well-to-do families are less likelyto be enrolled in kindergartens, and poorer peo-ple face limited access to quality health services,water and sewerage supply. Another importantproblem refers to the signicant differences inopportunities between women and men. Hence,the report highlights the modest participation of women in the decision-making process, especiallyat the higher levels, as well as fewer economic op-portunities for women compared to men. The per-petuation of these development problems couldmagnify emigration trends in the near future,

which in spite of short-term advantages, actuallycarries long-term risk: a brain drain from both aqualitative and quantitative point of view.

National Development Framework . After thestagnation witnessed in 2012 by the Moldovaneconomy, reecting the mixed effect of the Eu-ropean economic crisis and the severe droughtaffecting the agricultural sector, economically2013 oo s rat er promising. Agricu ture contin-ues to be the most vulnerable sector, but alsothe sector with the biggest potential to increaseturnover, farmers revenues and living standardsof rural communities. Economic modernizationtoget er wit entrenc ing t e pat to Europeanintegration, the creation of jobs, and combatingcorruption are the core priorities that the Govern-ment has adopted to ensure development for the

people. The key constraints which limit the Gov-ernments room for manoeuvre and to speed updevelopment relates to the ineffi cient use of pub-lic nancial resources, insuffi ciently developedpolicy capacities, and a decit of qualied peopledrawn to public service. All these constraints haveinuenced the way in which the country has pro-gressed toward achieving the Millennium Devel-opment Goals (MDG).

MDG 1. Reduce extreme poverty and hunger .For MDG 1, the Republic of Moldova has made

remar a e progress. In 2012, t e country a rea yreached the nal targets set for 2015. The inci-dence of poverty according to the internationalthreshold of 4.3 dollars per day decreased from34.5% in 2006 down to 20.8% in 2012 (the naltarget 23.0%). The share of the population livingunder the absolute poverty line decreased from30.2% to 16.6% (the nal target: 20.0%), while theshare of population suffering from hunger from4.5% to 0.6% (the nal target: 3.5%). The mainfactors which favour progress include: economicgrowth, the increase of revenues remitted by theemigrants and the social assistance provided bythe Government according to a specic formula,which allows for a better targeting of the resourc-es to assist the really poor families. In spite of allthese successes, special concerns are raised bythe pronounced inertia of rural poverty: in big cit-ies absolute poverty has decreased by more thantwo times from 2008 to 2012(from 10.9% to 4.3%),while in villages the decrease was slower (from34.6% to 22.8%). The gap between rural and ur-ban living standards increased: in 2006, 75.7% of

t e popu ation iving in poverty were in vi ages,while in 2012 this percentage increased to 79.1%. The main causes of rural poverty include: the vul-

EXECUTIVE SUMMARY


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nerability of the agricultural sector, the lack of al-ternative occupations in other economic sectors,and emigration. All these have created a viciouscycle of poverty, in which the vast majority of Moldovan villages are still trapped. This was alsoaffected by the transition to means tested allow-ances. If state resources were fully allocated basedon the principle of means testing, they would bealmost be enough to completely eradicate thepoverty. Nevertheless, besides scal poverty, ruralpopulations also faces other forms of poverty, re-lated to limited access to a number of basic servic-es and products (water and sewerage, health andeducation services), as a result of insuffi cient in-frastructure. The Government acknowledges eco-nomic growth is a vital component in maintainingand strengthening long-term progress in allevi-

ating all forms of poverty, as is model of growthw ic is more environmenta y sustaina e, ansocially and geographically more equitable. Bothnational and sector strategies developed over thelast years have targeted this goal.

MDG 2. Achieve universal access to general compulsory education.

The reduction in scal poverty reected in theMDG 1 correlates with the increased access toeducation, but discrepancies between the ruraland urban areas, as well as the problems with rela-tion to social exclusion still persist. Although thetarget set for 2015 in relation to preschool educa-tion coverage was met in 2011, many rural chil-dren continue to face marginalisation, and about30% of them do not go to kindergartens. It is un-likely to reduce fundamental disparities in accessto presc oo e ucation etween ur an an ruraareas, and by income groups. At the same time,residential disparities in access to education playa signicant role in shaping the differences be-tween poverty rates in rural and urban areas. The

developments for compulsory education are alsomixed. While a number of surveys reveal that thetarget set for 2015 for gross school enrolment hadalready been reached, people are still not satisedwith the quality of formal education, and this isreinforced by the results of the nal exams from2013 school session. The main causes are associ-ated with the precarious legacy of educationalmaterials and school staff which is an acuteproblem in villages, which far from attractingteachers, discourages them from staying, particu-larly younger teachers. This situation risks endan-gering enrolment in general secondary education. The following can be noted among the other keyconstraints: signicant demographic differences

etween rura an ur an areas; ower access toeducation for children with disabilities and Romachildren, including to preschool education. On thebasis of all these drawbacks, the main priorities re-fer to the effi cient use of technical-material basisand nancial resources allocated to the educa-tional system, re-evaluation and re-design of thestaffi ng policies in education, and improving thequality of training. Moldovan Government policyon educational reform aims to tackle both thequa ity an access to e ucation as in ispensa eelements in addressing poverty in a sustainableway. Respectively, provision of quality preschool,primary, and secondary education for all the chil-dren is a key strategic objective.

MDG 3. Promote gender equality and empower women. Gen er isparities are not evi ent in pre-school and compulsory education, but neverthe-less, they start appearing as people start enteringthe labour market and participating in economicand political life. Among elected mayors, theshare of women is still very small and stagnant,increasing only marginally from 18.15% in 2007to 18.51% in 2011; at the rayon counsellors levelthe increase is from 16.48% in 2007 to 18.39% in2011. At the same time, the increase in the num-bers of women on the MP candidates list has notinuenced the proportion of women among MPs,

it stayed at 19.8% in November 2010 and 2011. Thus, in spite of some progress, reaching the ul-timate target is still uncertain in terms of promot-ing women to key positions. The lack of affi rma-tive action (quotas) legislation, the persistence of gender stereotypes all these signicantly reduceopportunities for womens participation in the de-cision-making process. The reform of legislation toinstitute quotas, has promoted further progresstowards reaching the MDG targets, and helped tocreate preconditions for more solid political em-powerment of women. Implementation of some

gender education programs for youth, as well asin the general and university education systemcould facilitate the transformation of womens andmens gender roles in the society and in the fam-ily. But, besides gender differences in terms of par-ticipation in the decision-making process, womenare also at a disadvantage on the labour market.Although provisions for ensuring equal paymentsfor equal work are stipulated in law, gender dis-crepancies are registere in womens an menssalaries. At the same time, the employment rate isconstantly lower in comparison with mens rates,and this fact reveals the existence of some majorbarriers to the integration of women on the labourmarket. Thus, ensuring basic conditions for wom-


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ens political empowerment (through affi rmativeactions and training programs) and economic em-powerment (through training and entrepreneur-ship programs) is one of the relevant priorities forthe post-2015 period.

MDG 4. Reduce child mortality . The nal targetsset for 2015 for infant mortality and the under-5mortality rate have already been reached, this wasone of the areas in which the greatest progresshas been made. Nevertheless, social exclusionhas also inuenced and marked this area as well.Hence, there are marked inequities in cases of child mortality, which disadvantages poor chil-dren, and especially Roma children. This fact againreveals discrepancies between rich and the poor,as we as raw ac s in re ation to socia equity.Moreover, sometimes cases of child neglect arestill identied, and in some cases may not receivethe assistance they need. Another challenge isvaccinating children against measles by 2015,which is in some doubt, as in recent years thenumber of children who have been vaccinateddecreased for different reasons. The problem isespecially acute in rural areas and, mainly, amongthe Roma children, due to low levels of knowledgeabout the benets of vaccination. The Ministry of Health acknowledges these issues and activelypromotes, maternal and child health, and is im-

plementing a series of reforms in this area. Freeand comprehensive health care coverage and freemedicines, in conjunction with the introductionof compulsory health insurance, all served as cru-cial elements in combating infant and maternaldeath. There are specic national health policiesand programs which focus on mother and childhealth. The development of a regionalised peri-natal assistance system, strengthening paediatricemergency health care and the regional reanima-tion an intensive t erapy epartments, as weas an increase in the level of knowledge throughcontinuous medical training all represent someexamples of the major efforts which have alreadyhad visible impact. The implementation of Inte-grated Management of Childhood Illness (IMCI)and the system of individual evaluation of theneonatal mortality cases allows for the collectionof some relevant data for developing effective in-terventions. Although efforts were undertaken toimplement a mechanism for inter-sector collabo-ration in the medical-social area, the lack of socialassurance is one of the major factors driving child

mortality cases. Neurodevelopmental surveillanceservices for children from the high risk groupsespecia y t e extreme y premature new- orns

for neurological disorders, early intervention and

individualised recovery could be more effi cientlyprovided on a regional basis to increase access forvulnerable populations, and this would reducethese childrens disability. Further joint efforts to-gether with international development partnersare major precon itions to ensure sustaina i ityand increase the prospects for successes.

MDG 5. Improve maternal health . The high levelof access to perinatal health has been maintainedover the last few years. The same thing character-ises access to me ica services an t is as con-tributed to maintaining a high rate of medicallyassisted deliveries. At the same time, inequalitiesare still apparent in terms of access to and qual-ity of services inequalities between rural andur an popu ations, insure an uninsure in t epopulation, general population and marginalisedgroups (Roma women, persons with disabilities,migrants). The maternal mortality rate has regis-tered a sinuous development with a slight wors-ening trend, reecting a number of structural fac-tors in the health and social-economic sector. It isobvious that the low number of mortality casesis caused by signicant and unpredictable varia-tions, whenever reported per 100000 live births.It is very important to mention that effective toolswere implemented over the last years to identifythe underlying causes and to develop cost-effi -

cient measures to a ress t e situation. In t iscontext, concerns are raised related to focus onindirect factors (unrelated to pregnancy) of ma-ternal mortality, inducing drawbacks in the ante-natal surveillance and gaps in the quality of theprovi e ea t services. A t oug a regiona iseand perinatal services referral system has beenimplemented, the professionalism and effi ciencyof many interventions, especially in emergen-cies, could benet from considerable improve-ments. The implementation of modern teachingmethods based on simulation of emergency situ-ations in the multidisciplinary teams of special-ists in the maternity hospital is crucial. The levelof knowledge among women and training aboutthe needs and importance of early medical sur-veillance in case of pregnancy represents a veryimportant factor, which can reduce the incidenceof complications and deaths. The improvementof access for vulnerable groups and the increas-ing quality of family planning services providedto these groups are also essential in achieving thetargets set in the MDG 5. These rm actions un-

dertaken by the authorities and the commitmentsassumed to continue investing in this area providesome optimism for future developments, withoutany major risks. At the same time, the Government


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ac now e ges t at it is impossi e to ensure t atabsolutely all deliveries are assisted by medicalpersonnel, and that the maternal mortality ratedecreases to zero, because there are causes be-yond the control of the authorities.

MDG 6. Combat HIV/AIDS, tuberculosis and oth-er diseases . None of the targets set for 2010 wasachieved, and it is not possible to reach them by2015. The ght against socially-conditioned infec-tious diseases a major health priority has notproduced any major results, and the near futurewill bring new challenges, because of the nan-cial constraints caused by the revision of nancingmechanisms and countries eligibility conditionsto the Global Fund to ght AIDS, Tuberculosis andMa aria GFATM . A t oug it is sti concentratein the key groups injectable drug users, com-mercial sex workers, and men having sex withother men - the HIV/AIDS infection has shown aclear trend towards infection of their partners. Themode of transmission has changed, in the mainit is now sexual. The infection has feminised andhas shown a tendency to spread in the rural areas. The Transnistrian region and the largest cities areleading in HIV prevalence, although the GFATMresources for prevention and treatment measuresare provided throughout the country. In this re-spect, the Government collects relevant data for

the MDG 6 from the both sides of the River Nistru,including Transnistria, to monitor progress of UN-GASS across the country. Over the few last yearstrends have stabilized for TB-associated mortal-ity, reecting a decrease of 29% by 2012 in com-parison to 2007, a decrease of the DOTS (DirectlyObserved Therapy) treatment drop-outs to 8.5%and an increase of the success rate up to 62.2% ascompared with the previous years, when the g-ures did not exceed of 58%. The success of treat-ment depends partly on clinical factors, but alsoon economic factors and patients level of knowl-edge about TB and its treatment. TB continues toaffect mainly socially vulnerable groups unem-ployed people, persons with disabilities, home-less people, and persons suffering from alcohol-ism. The main problems identied in ghting HIVand TB include the rigidity and unattractivenessof the services provided to patients, service provi-sion which is limited to the big cities, the systemsincapacity to tackle the multifaceted needs of thesick people, including stigmatization and discrimi-nation. However, the existence of a consolidated

and participatory response of the stakeholdersfrom the civil society, authorities, specialists, anddevelopment partners, is a source of optimism.

The country mechanism for coordinating nationalprograms (the National Coordination Council) hasboth qualitative and comprehensive data to sup-port the development of effi cient policies basedon epidemiological evidence.

MDG 7. Ensure a sustainable environment . Thecountry has made some progress towards reach-ing the indicators of the MDG 7, but additional ef-forts are needed in all areas. Hence, although thenal target related to state protected natural areas(4.65%) was achieved in 2006, nevertheless insuf-cient resources are being allocated to developmanagement systems, ensure the maintenancefor such areas, and with respect to their protec-tion. The number of forested areas has increasedon y y 0.2% an t e interme iary target 12.1%

of the country area) was not reached. The shareof the population with access to improved sew-erage has increased from 43.3% in 2006 to 56.6%in 2012 and this has exceeded the intermediarytarget (50.3%), but the majority of these systemsare in poor condition. The share of the popula-tion with permanent access to improved watersources has increased, but the intermediary targetwas not met. Many water supply systems are notfunctional. The data suggest that it will be diffi cultto achieve the nal targets set by 2015 for all theindicators, except for the state protected natu-

ral areas and the populations permanent accessto improved water supply. Gaps are qualitativelyapparent for all these indicators. In the context of the MDG 7, the most vulnerable inhabitants arethose who live in from rural communities, whohave no sanitary infrastructures and no access toimproved systems of water and sewerage supply. The main risks related to these failures are the fol-lowing: environment pollution, the worseninghealth status of the population, land degradation,and reduction of agricultural crops harvests andfarmers incomes. The main opportunities to serveas catalysers for achieving the MDG 7 would be:better cooperation among the entities workingin the area of sustainable development, promo-tion of deep and active participation of the entirepopulation in environmental protection, foster-ing a green economy, and use of EU experienceto streamline environment requirements in eco-nomic development activity.

MDG 8. Create a global partnership for develop-ment . Moldova has made satisfactory progress, al-

though not all the relevant indicators have shownpositive trends. The Republic of Moldova has madegood progress in building an information society


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MDGs AND TRANSCENDING DEVELOPMENTCHALLENGES AT A GLANCE


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n 2000, together with other 189 countries, Moldo-a signed the Millennium Declaration adopted at

the Millennium Summit from New York. Hence, it

committed to contribute to the accomplishmentof eight Millennium Development Goals (MDG). Those eight goals, revised and adjusted to the na-tional development priorities, are the following:

Eradicate poverty and hunger;

Achieve universal access to general compulsory education;

Promote gender equality and empoweringwomen;

Reduce child mortality;

mprove maternal health;Combat HIV/AIDS and tuberculosis;

Ensure environmental sustainability;

Develop a global partnership for development.

The rst National Report on progress towardseac ing t e MDGs was eve ope in 2004. T reeears later, in 2007, after a progress analysis and

organizing a number of consultation sessionsith civil society and countrys development part-ers, many of the objectives were revised. The

second National Report related to MDG progressas developed in 2010. This document is the thirdational Report used by the Government of theepublic of Moldova to assess honestly and objec-

tively the progress made in fullling the Millenni-m Development Goals from 2010-2013, to iden-

tify the problems encountered by the country, andto outline the eventual solutions and available op-tions to acce erate t e positive evo utions an toeverse the negative ones. At the same time, the

third National Report also aims to provide a vieweyond the 2015 timeline, so as to identify the pri-

orities that will remain on the national develop-ent agen a.

INTRODUCTION The Report follows a simple and reader-friendlystructure, which aims to promote MDGs and toinform the wider national and international audi-

ence. The rst chapter of the Report takes an over-view of the most important internal and globalfactors inuencing the national developmentpolicies and processes.

Eight chapters follow per each MDG, highlightingthe main trends over the recent period of time, as-sessing the quality of the achieved progress, andidentifying the main constraints and opportuni-ties that could serve to speed up the MDGs.

The tenth chapter refers to the unnished agen-da, offering a brief feasibility study on MDGs andwhat they will have achieved by 2015, identify-ing systemic causes which need to be addressedto maintain the same pace of development. Thischapter seeks to highlight a way to escape thevicious cycle of under development and how toavoid multidimensional poverty traps, by lookingat the interrelationship between the MDGs.

The last chapter of the Report tries to answer thefollowing question what will follow after 2015?,elucidating the main results of the post-2015 na-tional consultations The Future Moldova Wants,carried out with the support of the United NationsDevelopment Programme in Moldova, and it seeksto corroborate these results with the MoldovanGovernments vision for the countrys long-termdevelopment.

Due to the lack of statistical data and comparabil-ity pro ems regar ing t e ata on socia an eco-nomic life in the Transnistrian region, the authorshave mainly sought to analyse developments inthe Republic of Moldova regions from the rightside of the River Nistru, except for the MDG 6,where the data reects the situation on both sidesof the River Nistru1.

1 The monitoring of the developments occurred in the Transnistrian region for the given MDG is motivated by the existence of comparable data, due to the cooperation between theinstitutions from Chisinau and Tiraspol, as well as due to the externalities induced by HIV/AIDS and TB on the population on the both sides of the River Nistru. At the same time, it should bepointed out that the dynamics of the indicators monitored within the MDG 6 cannot be used for assessing the performance in relation to the MDGsfullment in the Transnistrian region.


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NATIONAL CONTEXT:GLOBAL TURBULENCE AND

INTERNAL CHALLENGESPolitical framework European integration is the strategic path thatt e Mo ovan Government as c osen as t emost compatible with its desire for long-termeconomic growth, and its social, and democraticdevelopment priorities. Thus, Moldova seeks toensure a higher level of living standards for allthe citizens, through modernization of infrastruc-ture, improving public services, and increasingeconomic opportunities in urban and rural areas.Deeper European integration and the harmoni-sation of key aspects of national legislation withEuropean standards have already yielded visibleresults. Thus, new economic branches emerged asa result of investments made by European compa-nies w o are now present in t e Mo ovan econ-omy. The Government also adopted fundamentalhuman rights legislation, to ensure the non-dis-crimination, tolerance, and mutual respect prin-ciples.

The unsettled Transnistrian conict is an essential factor hindering the development on the rightand the left sides of the River Nistru. The conictimpedes human and economic contacts, magni-es country risks and external nancings costs, re-duces Moldovas attractiveness as a destination forinvestment and as a place to live place for peoplefrom other countries, and creates a backgroundof permanent stress, which impedes the ability of the authorities to focusing on long-term develop-

ment agen a. At t e same time, t e Transnistrianregion represents a high risk zone in relation tothe development goals and targets referring toHIV / AIDS, which is the only target measured inthis report.

GovernanceIn comparison with 2000, when the MDGs wereadopted as a guide to policy, the current gover-nance agenda encompasses a wider and morecomprehensive vision of development. Hence,the Activity Program of the Republic of Moldova

Government, European Integration: FREEDOM,DEMOCRACY, WELLBEING 2013-2014 targets threeessential goals: ensuring the irreversibility of theEuropean integration process, creating new well-paid jobs, and preventing and combating corrup-tion.

A long-term development vision is expressedin t e Nationa Deve opment Strategy Mo ova

2020: seven solutions for economic growth andpoverty reduction 2, which served as basis for theGovernment Activity Program and a series of sec-tor strategies. The seven solutions identied inMo ova 2020 actua y represent orizonta in-

tervention priorities, which it is hoped will benetall the sectors of the economy equally, all socialgroups, and every person. These solutions include:1) education relevant for a career (focusing on vo-cationa an tec nica e ucation ; 2 roa s in goocondition, anywhere; 3) cheap and affordable -nancing; 4) business with clear rules of the game;5) an equitable and sustainable pension system;6) safely delivered and effi ciently used energy; 7)responsi e an incorrupti e justice system.

The low level of revenues has also resulted in alimited ow of public resources for public expen-diture to implement development policies andprojects. This weakness is magnied by the ex-tended informal economy with untaxed incomesand consumption. According to some estimates,the share of the informal economy accounts forabout 45% of the offi cial one (Schneider, Buehnand Montenegro, 2010), creating a high degree of

epen ency on externa support.

Social and demographic factorsAfter a decade of negative natural populationgrowth , in 2011-2012 the Republic of Moldovaregistered zero natural population growth, as aproduct of an increased birth rate and decreaseddeath rate. The disaggregated indicator reects aworsening situation in the rural areas in compari-

son with urban areas: in 2008-2012, the average

2 Approved by Law No. 166 dated July 11, 2012.


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birth rate in urban areas accounted for 9.96 per1000 population and the death rate for 8.84 per1000 population; while in the rural areas, duringthe same period of time, a higher birth rate (12.02per 1000 population) was accompanied by a high-er death rate (13.54 per 1000 population). The dif-ference in attitudes towards health, lifestyle andfood, as well as the unequal access to health careservices are the main causes of an increasing rural-urban gap.

T e a arming emograp ic situation in t e ruraareas is even worse when emigration is takeninto account , which represents a real populationdrain for villages. Data from the National Bureauof Statistics suggest that about 7% of urban stablepopulation aged 15 years old and over has leftabroad for work in 2012, while for rural area thisindicator was double that, at 14%.

The intense migration of labour represents a ey constraint for regions and local community de-velopment . A t oug , in s ort term, emigrationcontributes to poverty reduction, over the longerterm, it erodes human capital which could beused for the sustainability development of Moldo-van communities and regions, and of the countryas a w o e UN Mo ova, 2013 . Emigration ascaused a signicant depopulation of many rural

communities, generating innovative policy chal-lenges for the Republic of Moldova.

Economic situationDuring 2010-2012, econom c growth in Mo ovawas rather rapid with an annual average GDPgrowth rate of 4.6%. However, growth was vola-tile and jobless, reecting the wider vulnerabilityof the economy to external and climate shocks.Offi cial statistical data showed that the percent-age of the population employed in the Moldovaneconomy in 2012 was 25% lower than the numberregistered in 2000. Again a large rural-urban gapis apparent: in this period, the share of urban em-p oye popu ation ecrease y 4%, w i e t e ru-ral employed population decreased by 37%, withno signs of recovery sign.

This rural-urban inequality in employment opportunities is reected in sharp income inequalitythroughout the country. If during 2006-2007, theaverage incomes of the rural population were 25%lower than those for urban population, in 2011-

2012 t ey were ower y 33%. T is inequa ity a soreects visible differences registered in the qualityof life: in urban areas, income exceeds the calcu-lated minimum subsistence level by 15%, whilein villages the average income is 13% under theaverage su sistence eve .

A key factor explaining the increasing gap in em-ployment opportunities is the level of develop-ment of the private sector . Moldovan villages arehighly dependent on agriculture (employing half of the rural population); the main alternative toemployment in the agricultural sector is employ-ment in the public sector (21%). But the agricul-tural sector is extremely feeble: in 2000-2012, thegross value added (GVA) generated by the agri-cu tura sector increase on average on y y 2.6%annually, while the GVA generated by the non-ag-ricultural economic sector increased by 5% . In thesame period of time, the volatility of agriculturalproduction was ten times higher than that for thenon-agricultural production .

Global factorsClimate change is a key factor reducing the im-pact of Governments anti-poverty policies, espe-cially in rural areas. Increasingly frequent periodsof drought are a consequence of global warming

and may generate problems related to accessibil-ity of food products and forage for animals, as thedrought in 2007 demonstrated. About 90% of thecountrys territory and 80% of the rural popula-tion dependent on agriculture were affected bypoor harvests. Much of the rural population losttheir savings and income and the total losses ac-counted to 1 billion USD, according to the offi cialestimates (UNDP Moldova, 2009, p. 85). Along-si e t e ecrease in remittances, t e roug t wasthe major cause for poverty in 2007 (MEc, 2009).In 2012 the country witnessed a severe droughtagain, accompanied by a dramatic decrease in ag-ricultural productivity. And again, the small andmedium producers represented the group thathas suffered the most as a result of this droughtMAFI, August 2012, p.24 .

The global economic crisis from 2009 revealedthe extreme vulnerability of the country and thefragile nature of an economy based on emigration.As an immediate effect, the crisis resulted in a de-crease in exports, remittances, and foreign directinvestments. If exports and remittances recovered

3 In this report, the non-agricultural economic sector was dened as the amount of all the economic activities identied in the National Classier of Economic Activities with the codesfrom C (mining industry) to K (real estate transactions, rent activities, and services provided to enterprises) and does not include public administration and services (codes L-O).4 Measured as a standard average deviation for the GVA increase rates.


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from losses incurred in 2009-2010, foreign directinvestments has not yet returned to pre 2009 lev-els registered before the crisis. In the absence of some powerful internal growth engines, Mol-dova will continue to be dependant in the nearfuture on external economic developments at theEuropean and global levels.

By mid-2008, the whole world was affected byan exceptional increase in food prices . The in-crease of extreme poverty in rural areas in 2008was mainly due to an increase in the price of foodproducts (even though it is diffi cult to separatethis variable from the impact of the economic cri-sis and the drought). In 2012, global food pricesincreased again. Although in 2013 prices declined,they still remain close to the historical highs of August 2012. The risk of a new global food crisisremains very high, especially for average house-holds, where 41% of the urban family expenditureand 46% of the rural household expenditure isused for food.

The energy crisis , manifested by a global increasein prices for energy, also had a direct impact onMoldova, which is a net importer of energy. Com-pared to 2007, import prices for energy were 53%

ig er in 2011, continuing to rise mo erate y in2012 as well. According to statistical data, in 2011

traditional energy sources (electricity, naturalgas, coal) accounted for about 8.8% of the urbanhousehold expenditures and 8.3% of the ruralones (NBS, 2012, pp. 92-94); the data also showsthat the poorest quintile spend more for energythan the more well-to-do ones.

The national balance of reserve-water consump-tion in the Republic of Moldova is adequate inrelation to the available resources. In spite of thisbalance, certain regions of the country face wa-ter decits , which may get sharper along with the

growth of the economy, diversication of socialneeds and emphasised global heating (UNDP Mol-dova, 2009, p. 55). This will have a major impact onvarious economic sectors (agriculture, food indus-try) and vulnerable local communities (especiallyin the South of the country).

Impact on MDGs These factors explain the balance of successes and failures witnessed across the country in reachingthe MDGs. Emigration and related remittanceshave helped many Moldovan families escape from

poverty, ence MDG 1 Re uce extreme povertyand hunger) has a good chance of being reached.But the current depressing rural economic pictureexplains why poverty in villages is much more en-trenched and why policies have not resulted insustaina e progress.

Education is a critical determinant of householdwellbeing (MEc, 2012). ence, MDG 2 (Achieveuniversal access to general compulsory educa-tion) has a major impact on the MDG 1 (Reduceextreme poverty and hunger) . Access to e uca-tion in rural areas represents a deeply embeddedstructural constraint, which suggests that com-bating rural poverty will be a more complicatedprocess in rural areas as compared to urban areas,w ere etter access is comp emente y a argerrange of options. Nevertheless, the results of thenal exams taken in 2013 suggest that the prob-lem of quality in education is a major one both, inrural and urban areas.

The MDG 8 (develop a global partnership for development) has a major and direct impact onthe MDG 1 (Reduce extreme poverty and hun-ger) , but it also indirectly inuences all the otherMDGs. Actually, the level of integration into theglobal economy, the degree of penetration of thebanking system into the real economy, the level of

digitalisation in society and employment amongyouth are some critical economic and social fac-tors, which determine, at the latest stage, the levelof public revenues and, implicitly, the states abilityto nance and attain goals such as better informa-tion for pregnant women about the risks relatedto pregnancy MDG 4 Re uce c i morta ity ,improving the conditions in maternity hospitals(MDG 5 Improve maternal health), assurance of theconditions for treatment and palliative care (MDG 6Combat HIV/AIDS and tuberculosis), as well as theallocation of more resources to extend national cov-

erage of safe water systems and to extend forestedareas (MDG 7 Ensure a sustainable environment).Notwithstanding national expenditures in these ar-eas, investments made, until now, have been large-ly funded by global donors, and the resources thathave been allocated have proven to be unequal tothe task of making a decisive contribution.

The level of unemployment, small incomes andpoverty of rural population (MDG 1), together withincreased prices for energy resources, have led toconsiderable illegal deforestation and poachingMDG 7 .


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Moldova has neither succeeded in making signi-cant progress towards promoting gender equalitynor empowering women (MDG 3). These problemshave major implication on other MDGs, as modernliterature has proven a close link between, for in- stance, womens empowerment and econom c development (Duo, 2012). A higher level of eco-nomic development is associated with decreasinginequalities in mens and womens incomes, but, on

the other hand, greater empowerment of womenis an essential factor which may benet economicdevelopment. But this virtuous cycle is too weak to be self-sustaining, and Moldova needs morededicated and better targeted programs and bet-ter focused on womens political and economicempowerment, as well as enhancing the positivelinks between womens empowerment and devel-opment


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MDG 1

Reduce extreme poverty

and hunger : a small andstill uncertain success


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Key trendsDuring 2010-2012, the Republic of Moldovamade strong progress towards achieving the in-dicators related to the MDG 1 . Hence, in 2012 theshare of the population with a level of consump-tion below 4.3 USD per day decreased to 20.8%from 34.5%, in 2006, the rst year when these in-dicators were calculated. As the Table 1 shows, thisevolution is perfectly in line with the intermediaryand nal targets which were established. The tar-get for the population under the national absolutepoverty line was also reached ahead of schedule. This indicator dropped from 30.2% in 2006 downto 21.9% in 2010, and in 2012 the indicator reached16.6%. Mo ova a so ma e impressive progress incombating extreme poverty, as its incidence fell to

0.6% in 2012. An important change in 2010-2011was the sharp decrease of poverty in rural areascompared to the previous years. A total of 226t ousan peop e escape poverty uring t is pe-riod of time (MEc, 2012, p. 5).

A number of factors have led to this progress.Economic growth, reected in peoples incomes,was one of the main drivers reducing poverty atan aggregate level. Remittances from emigrantsrepresented another important factor in the de-crease in poverty. At the same time, new socialprograms promoted by the Government, espe-cially the provision of social assistance on a moreaccurate and equitable formula, have had a majorimpact in reducing inequalities in incomes andpoverty incidence. In 2010-2012, the increase inprices for agricultural products has had a posi-tive impact on consumption in rural areas, but itseems that it has moderated the pace of growth

for urban consumption.In spite of the remarkable decrease in the in-cidence of poverty, more than half a million

c t zens st ll are categor zed as poor . T e rurapopulation is 3 times more exposed to the risk of poverty than urban populations, and one infour vilagers lives under the national poverty line.Children, in general, continue to be more vulner-able to poverty: the rate of poverty registered in2011 among children accounted for 19.6%, whichexceeds the national average by 2.1 percentagepoints. Although it is declining, malnutrition stillaffects one in ten under-5 children.

MDG 1 is closely dependant on the evolution of other MDGs . Hence, education (MDG 2) is one of the most powerful factors determining poverty.People with higher levels of education are 6-timesless likely to become poor than people with a sec-ondary level of education, and 10 times less likelythan the people with primary education or no ed-ucation (MEc, 2012). In turn, children raised in poorfamilies have limited access to education thanother children, and this fact generates a viciouscircle of chronic and multi-generation poverty. At

the same time, the poverty level, especially in caseof rural population, is largely inuenced by limitedaccess to nancial resources to fund investmentsin agriculture (MDG 8). As it is mentioned in thisReport in the chapter referring to MDG 6, povertyis one of the key factors of maternal mortality, as itis the source of other types of vulnerabilities andthe cause of social marginalisation.

Key constraintsPoverty reduction continues to be one of the key priorities of the Government . Hence, the NationalDevelopment Strategy Moldova 2020 aims toget at least another 150 thousand people out of poverty by 2020. Nevertheless, a number of fac-tors still persist, raising questions about the sus-tainability of the successes that have already been

Table 1. Evolution of MDG 1 indicators, period 2006-2012 and intermediary and nal targets

2006 2007 2008 2009 2010 2011 2012 Target2010Target2015

Share of population with under4.3 USD per day consumption 34.5 29.8 30.4 29.5 26.8 23.4 20.8 29.0 23.0

Share of population underabsolute poverty line 30.2 25.8 26.4 26.3 21.9 17.5 16.6 25.0 20.0

Share of population underextreme poverty line 4.5 2.8 3.2 2.1 1.4 0.9 0.6 4.0 3.5

Source: MEc, 2012, pp. 11-15 and information provided for the Report by the MEc for 2012;


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achieved and about the level of peoples skills andhabits necessary to stay out of the poverty trap.

The critical precondition for addressing poverty sustainably is establishment of decent work places. After a decade of continuous loss of thelabour force and a decrease in the occupationrate (from 60% in 2000 down to 38.5% in 2012),it is clear that a fundamental improvement in theMoldovan business environment drives recov-ery, which is currently suffering from regulatoryproblems in such areas as scal and customs ad-ministration, company licensing and authorisa-tion, competition, access to nance, protection of ownership rights (World Bank, 2013). Collectivelythis undermines company performance and re-spective y t eir capacity to provi e goo sa aries,comfortable working conditions, and develop-ment opportunities for their employees.

An essential constraint reducing the impact of policies is a lack of support from across the po-litical spectrum for anti-poverty programs de-ned by the Government . Hence, reform of socialassistance policy through introduction of the so-cial benets, has not received the support of all thepolitical parties, although the new policy has had amajor an visi e impact on poverty re uction.

A number of rigid constraints and structural problems limiting progress still persist . For in-stance, the dispersion of the rural population intoa large number of small communities with weak inter-connectivity reduces farmers access to mar-kets and inhibits the mobility of the labour force.Improving this would require a large volume of capital investment from public sources. The cli-mate of vulnerability in the agricultural sector isanother factor which in the near future limits theeffi ciency of policies and resources allocated forpoverty reduction. And nally, rural populations

are sceptical of adopting new technologies andmodern agricultural methods, which could helpharness agricultural resources and could stabilizeincome levels for rural population.

The global factors mark the progress registered by Moldova for MDG 1 . Hence, the local conse-quences of global climate change have ampli-ed the economic vulnerability of the agriculturalsector, which was already high (MAFI, 2012). Thenancial crisis from 2008-2009, ended with aneconomic ownturn in Europe an an essentia

drop in economic growth in Russia and other CIS

countries, has also been a major shock for the Mol-dovan economy and has proved once again thatthe country remains vulnerable to external eco-nomic calamities. The key macroeconomic indi-cators (current account decit, budget structuraldecit) from 2012 show that these vulnerabilitieshave not been reduced, thus inducing pressure onthe private and public budgets.

Possible opportunitiesand success factors As paradoxical as it may seem at rst glance, theeconomic crisis in the European Union, along- side other challenges, also created some opportunities for poverty reduction in Moldova.Many companies in search of more competitivelocations, perceive countries in Eastern Europeas potential places to invest, as they extend theirproduction capacities. As a result of such reloca-tions, some in ustria enterprises ave a rea yappeared in the Moldovan economy which didnot exist several years ago and which are labourintensive. Thus, Moldova has a chance to harnessEuropean interest and provide platforms and con-ditions for new investors to come, and this willcreate jobs and support poverty reduction, rst inurban areas, and afterwards in rural areas, when

labour mobility improves.The state has suffi cient nancial resources to en-t rely el m nate poverty, but these resources arenot allocated in the most effi cient way . Surveyssuggest that benets allocated within social assis-tance programs decreases the incidence of pov-erty among beneciaries (Sandu and Sinchetru,2011, p.18 . Recent ata s ows t at t e povertygap is only 3.2%. According to the current povertyline, about 250 million lei would be necessary onannual basis to eliminate poverty across the coun-

try. In reality, social assistance programs spent in2012 over 382 million lei. Hence, the Republic of Moldova currently has enough resources to re-duce poverty to zero as dened by the nationalline, but this requires a more accurate distribu-tion of the resources within the social assistanceprogram: currently, 17% of resources are targetedtowards those with relatively high incomes.

The elimination of the nominative compensationcould have a larger impact on poverty 5. Com-pleting the transition would contribute to a more

effi cient use of the states nancial resources on

5 Cash payments instead of the allowances established previously. They will be replaced gradually by the social assistance system based on testing the real incomesand evaluating the needs of the applicants.


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poverty era ication among t e popu ation. T eseresources cou e c anne e to increasing en-ets within social assistance programs. But thecomplete abolition of the nominative compensa-tion program is not politically feasible, and wouldbe highly unpopular. Hence, the decision to stopnew people gaining benets from the nominativecompensations program, and to gradually elimi-nate the program.

Combined with the necessary nancial means tonvest n susta nable bus nesses, educat on and

training are essential ingredients for Moldovansto escape poverty . Returning Moldovan emigrantsoffer the country not only a chance to get out of poverty in the short-term, but also to eradicatethis phenomenon for good. A number of successstories of returning emigrants and their families(see Box 1) proves that the new knowledge, skillsand technologies learned abroad and the savingsaccumulated outside the home country may helpto markedly improve the situation of returned em-igrants an to create new jo s in communities. Inthis respect, it is important for the state to provide

the support necessary for the emigrants to re-ac-quire deep roots in the country and for Moldovato harness the skills and nancial resources accu-mulated abroad.

At the same time, some complex rural economic

recovery programs are necessary along withncome red str but on, to support susta nable poverty eradication . Although national resourcesare rather limited, opportunities to nd externalnancing still exist, especially by the EU. To makethe most of these resources, it is necessary toenhance local public capacity (UNDP Moldova,2012), which should be seen as the main changeagents at the local level. The tools, their inuenceand impact, could be strengthened with greaterdecentralisation, to which the Government hascommitted itself. At the same time, rural econom-ic recovery programs need national champions,who can actively promote rural economic devel-opment policies. Potential candidates, for such arole, include the Ministry of Agriculture and FoodIndustry, the Ministry of Economy, and the Minis-try of regional Development and Constructions.

Box 1. Moldovan emigrants build their future at home

Vasile Goncear from the Hoginesti village, Calarasi rayon, has worked abroad for 12 years, including in Italy wherehe worked for about 5 years, together with his wife, at several ceramics plants. When he gathered enough moneyto launch his own business, he returned to Moldova. Vasile Goncear opened a ceramics plant in his home village.Currently we produce commercial ceramics, but we also have equipment to produce ceramics for construction,which are usually imported. We have good clay, we have a skilled labour force and capacities so why not toproduce our own ceramics?! says the ceramist, who has created 20 jobs until now and intends to open 30 new jobs soon.

After eight years of work in Spain, Eugen Scurtu came back to Moldova, to his wife and three children, and all of them together have launched a renewable energy business. The enterprise he created together with his wife,Rodica Scurtu, to produce biomass-based pallets: from straw, sunower residues, tree branches, and sawdust.Moldova has a lot of raw materials and biomass that can be used more effi ciently, says Rodica Scurtu, Eugenswife who has supported him fully. Currently they have created 5 new jobs, but they plan to extend the productioncapacity of the procured equipment and to increase the number of new jobs.

The businessmen in both cases have beneted from nancial support provided by the state for business launchwithin the framework of the PARE 1+1 Program.

Bombonici is one of the best -known Moldovan brands for childrens clothes, from new-borns up to children age4 years old. But the company is not located in Chisinau, but in a relatively remote village Sadaclia in Basarabeascarayon (100 km from Chisinau). The director of the company is Silvia Lazu, a 35-year-old woman. Silvia studiedfashion design and the idea appeared in 2004, when she had her rst baby. This is a family business, involving herhusband who is the Sales Director, and her close relatives, who helped her initially with money to launch thebusiness. Besides the plant in the village, the company has opened a shop in the capital city. They started only with6 employees, but currently the company has 52 employees. The company is present not only on the local market,but they started to export their products to Romania.

Source: according to the materials form the reportage Emigrations, it seems that Moldovans come back to build their future at home, the daily newspaper Timpul, edition from February 10, 2012 and the reportage The Model family! Has earned the money abroad and opened a confec-tion unit in Moldova, Publika TV, March 25, 2012.


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Key trendsDuring 2010-2012, the Republic of Moldovamade some progress towards reaching the in-dicators related to MDG 2 . The enrolment in pre-school education has continuously improved.Over the last 5 years, the number of preschoole ucationa institutions as increase y 5.1%.According to the offi cial data, the gross enrol-ment rate in preschool education of childrenaged 3-6 years old accounted for 82.1% in 2012,representing a slight increase compared to 2011(79.6%), and a signicant increase compared to2003 (61.1%). The current level of enrolment ex-ceeds the MDG target of 78% set for 2015. Posi-tive trends can be seen for urban and rural areas,nevertheless signicant urban-rural gaps remain.

The gross enrolment rate in preschool educationof urban children aged 3-6 years old is 100.5%,while only 30% of rural children go to kindergar-tens. Hence the difference accounts for 19 p.p. andit is unlikely that this discrepancy will decrease by2015 (Figure 1). The enrolment rate for childrenaged 6-7 years old in education is increasing, ac-counting for about 93.5% in 2012 as compared to92.2% in 2003 Ta e 2 . T us, concerns ave eenexpressed with regard to the target of 98% set forthis MDG by 2015.

No gender differences were registered in terms of access to preschool education. At the same time,experts point out some groups of children withlow enrolment rates in preschool education:Roma children, children from families with lowincomes (including households with many chil-dren and single-parent families) and children with

isa i ities UNICEF Mo ova, 2011 . On average,only 63% of children from less well-to-do fami-lies and almost 92% of children from well-to-dofamilies go to kindergartens (UN Women, UNICEFMoldova, 2013). According to statistics data, thenumber of children with intellectual and physicaldevelopment problems going to a specialised in-stitution has decreased from 4.0 thousand pupilsin 2007/2008 down to 2.3 thousand in 2012/2013(NBS, 2013). The situation is determined by themeasures ta en to inc u e t e c i ren wit spe-cial needs in general education.

Figure 1. Gross enrolment rate of children aged3-6 years old in preschool institutions, 2003-2012, %

Source: NBS;

The literacy rate among the population has beenrelatively stable over the last few years, account-ing for 99.4% in 2012 . This gure practically corre-sponds to the MDG target 99.5%. No signicantgender differences are evident, only a statisticallyinsignicant 1.2% in favour of boys.

Although some offi cial data acknowledges agradual decrease in enrolment rates in compulsory educat on over the last decade, other morerecent data contradicts this conclusion. Hence,the gross enrolment rate in compulsory education

accounted in 2012 for about 89.7% (according toNBS), practically maintaining the level registeredin 2010 90.3% Ta e 2 . At t e same time, ot erstudies (see NBS, 2010) reveal an enrolment rateof 99.1% for children aged 7-15 years old, that ishigher in urban areas compared to rural areas (re-spectively 99.7% and 98.8%). This high enrolmentrate is also reected in the preliminary results of the MICS survey: the net enrolment rate in pri-mary education 98.7%, in gymnasium education 96.3% (NCPH, MoH, UNICEF, 2013). Taking intoaccount Labour Force Survey data, (a survey of households in the country) in 2012, the gross rateof enrolment in primary education is 99.1%, andin gymnasium education - 102%; and the net en-ro ment rate in primary e ucation 92.1% an ingymnasium education 93.3%. Hence, based onthe most recent studies, the targets for 2015 havealready been reached.

6 The MDG targets were revised in 2007 and the monitoring indicators were changed from measuring the net rate of enrolment to the gross rate of enrolment, which reects thenumber of enrolments regardless of the age. It should be mentioned that the values of the indicators, which were taken in 2007 as benchmarks for setting the goals for 2010 and 2015,do not coincide with the data provided by the NBS (Government of the Republic of Moldova, 2010). At the same time, the international experts recommend coming back to the netenrolment rate of children in education.


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At the same time, in terms of access to education,children with disabilities, Roma children, youthfrom total area are all on the lists of the most vul-nerable groups. Hence, according to the recentsurveys, only 31% of children with disabilities (outof those interviewed) go to schools (Brighidin A.,2012 .

Even if we admit, as some data suggest, that theRepublic of Moldova already has a high enrol-ment rate n gymnas um educat on, t should be recognised that the situation in educationis complicated . On one hand, signicant effortswere undertaken over the last few years to im-prove the quality of education: modernizing thecurricu um, improving materia an manua s,improving the quality of technical-materials, im-proving the teaching staff, etc. On the other hand,there is general dissatisfaction with the quality of formal education, as reected in the results of thenal exams in 2013. This is also supported by datathat 50% of pupils failed the PISA test in 2009. Thehigh level of expenditure for education in termsof GDP (8-9%) for the better part of a decade hasnot yet had a major economic and social impact(Government of the Republic of Moldova, 2012).

The level of investment is also not uniform across

Table 2. Indicators on childrens enrolment in education, % of the total, period 2003-2012

Indicator 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Target2010Target2015

Gross enrolment rate incompulsory education 95.1 94.6 94.4 92.0 91.6 90.9 90.7 90.3 90.1 89.7 95.0 98.0

Gross enrolment rate inpreschool education forchildren aged 3-6 years old

61.1 66.1 70.7 70.1 72.6 74.4 75.5 77.1 79.6 82.1 75.0 78.0

Gross enrolment rate of children aged 3-6 years oldin urban area

80.4 84.8 89.2 87.2 88.8 90.8 91.9 94.5 98.0 100.5

Gross enrolment rate of children aged 3-6 years oldin rural area

51.3 56.4 61.0 61.0 63.6 65.2 66.1 67.1 69.0 71.4

Enrolment rate of childrenaged 6-7 years old ineducational institutions

92.2 87.0 89.0 90.3 91.0 91.1 93.8 93.1 92.8 93.595.0 98.0

Share of children enrolledin the rst grade, afterpreschool education*

78.8 69.1 75.6 81.7 n.a. n.a. 91.5 97.7 97.5 97.5 - -

Note: * - The presented data do not include the data from the left side of the River Nistru and Bender municipality; the difference up to 100%refers to the share of children enrolled in the rst grade, who did not graduated from preschool education;

Source: 2003-2006 ME, 2009-2012 NBS;

the country with more severe problems registeredin rural area (NBS, 2012).

A number of factors have determined this situa-tion .The unfavourable demographic situation in thecountry ecrease over t e ast years of the birthrate, the ageing population, the drain of the able-bodied population / migration) has turned into adecrease in the number of pupils, and a drop ineffi ciency in using the school system and serviceinfrastructure. During the last decade, the popula-tion aged 3-23 years old, (that covered by the edu-cation system, dropped by 12.6% (NBS, 2012). To-day, the structure of the educational institutionsnetwork no longer reects the underlying demo-grap ic rea ity across t e country, especia y, in ru-ral areas. olitical factorsstill exert an inuence interms of budget allocation on education and per-sonnel policies. At the same time, specialist opin-ions differs in relation to allocation of resources per capita , as the countrys current problems require amore sophisticated approach, as many stakehold-ers have mentioned.

There are signicant discrepancies between theresidential areas in terms of gross enrolment ratesin preschool education of children aged 3-6 years

7 Except for 2012, when the birth rate has increased by 253 persons as compared to the previous year.


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w ic cou support c i ren wit isa i ities a soserves to limit their access to education.

Economic and nancial factors expressed in termsof low salaries and revenues, in turn driven by alack of wider economic opportunity, affects chil-

drens access to education, especially of thosefrom the vulnerable groups. Moreover, due to lack of basic infrastructure and low living standardsin rural areas, teaching staff, especially youngerteachers, are not interested in working in ruralschools, and this makes the problem of quality of education in rural areas more acute.

The differences between statistical data, and thedata obtained from different sources , often de-termined by the different methodologies, the in-suffi ciency of indicators to assess the performance

of every pupil, teacher and institution, insuffi cientdisaggregation of the indicators currently used all create serious obstacles for increasing the ef-ciency of educational management. Insuffi cien-cy of data related to access to education of Romac i ren an c i ren wit specia e ucationaneeds limits the effectiveness of interventions.

Possible opportunitiesand success factors

The Government has sought to tackle the qual-ity and access to education as indispensable ele-ments in ensuring sustainable human develop-ment. Respectively, ensuring quality preschool,primary, and secondary education for all thechildren by developing child-friendly schools andextending the practice of inclusive education is astrategic objective (the Government of the Repub-lic of Moldova, Ministry of Education, 2010). Thissector enjoys strong Government support w icwill in all probability lead to good outcomes.

Implementation of different projects and initia-t ves supported by donors suc as t e G o aPartnership for Education, Quality Education inRural Area in Moldova, and other) aims to mod-ernize the educational system in the Republic of Moldova and may contribute to ensuring accessto quality education at all the levels for all thechildren. For instance, the new initiative of theMinistry of Education, promoting the computer-assisted training in schools Get connected! In-formation technologies for success in learningrepresents an impact instrument to increase t equality and the relevance of the educational pro-cess. The economy of a country in the 21 st centurycannot be competitive without using IT.

The state allocates signicant nancial meansfor education (7.4% of GDP in 2013), but they are not used effi ciently or adequately . The effi -cient use of technical-materials and nancial re-sources in the educational system may contributeto improving the quality of education, withoutincreased nancial needs. At the same time, theprovision of minimum hygiene and comfort con-ditions (drinking water, hot water, heating, WCs,etc.) and cultural and sports equipment are all fac-tor w ic ma e t e service in rura sc oo s moreattractive.

Decentralization , including in education, is per-ceived as an opportunity to develop some quali-tative services focused on the needs / interests of the child, to extend the management mandate fornancial, material, and human resources. Hence,the Governments hope that adequate humanrights and gender-sensitive local policies, will helpensure sustainable social-economic developmentopportunities for the vulnerable groups.

Reforms optimising school networks in the re-gions helps to provide a more effi cient the useof nancial resources (by applying the nancingper-pupil formula at the national level). These re-forms, in consultation with the population and inpartnership with the LPA, civil society, may really

create more opportunities and help to ensure ac-cess for all children to quality education. For in-stance, the efforts of the Government and LPA torehabilitate roads create the necessary conditionsto transport children to hub-schools.

An important condition for making the educationsystem more effi cient would be a review and re-design of the personnel policy in education . Thesettlement of this problem could also lead to areduction of some gender disparities which existat the staff level. At the same time, it is necessary

to train teaching staff by taking into account thespecic educational problems and ensuring theinclusion of all categories of children with specialeducational needs.

State efforts to reform legislation in education tomeet international standards would help to en-sure the effi cient operation and systemic develop-ment of education. The adjustment of legislationto reform the system for record keeping of school-age children, the establishm

third national report on millennium development goals, moldova

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