Resilient, Inclusive Markets in Moldova
Moldova's growth is volatile and jobless. More and better jobs are needed to ensure its economic recovery, resilience and development, particularly outside large cities. Responding to the Government's request, Switzerland will contribute to supporting key markets in Moldova and, with the help of the United Nations Development Programme (UNDP), focusing on local markets and value-chains in vulnerable regions. This is complemented by a separate SECO project supporting the International Labour Organisation (ILO) and Decent Work Country Programme of Moldova.
Employment & economic development
Business support & economic inclusion
Tradepolicy & market system
- United Nations Development Programme
Sector according to the OECD Developement Assistance Commitiee categorisation OTHER SOCIAL INFRASTRUCTURE AND SERVICES
BUSINESS & OTHER SERVICES
TRADE POLICY AND REGULATIONS
Sub-Sector according to the OECD Developement Assistance Commitiee categorisationEmployment policy and administrative management
Business support services and institutions
Trade policy and administrative management
Cross-cutting topics The project also supports partner organisation improvements
Aid Type Project and programme contribution
Technical assistance inclusive experts
|Background||Moldova is one of the poorest country in Europe (EUR 5200/capita). The cumulative effect of crises and volatility (with an inflation rate at 33% in August 2022) strongly affects Moldova's economy perspective. The population living in poverty is projected to rise from 27% up to 31% in 2023. A third of the youth is not in employment, Education or Training (40% for women and girls). In 30 years, Moldova lost 39% of its people to outmigration. The population continues declining. The government appointed in 2021 is accelerating economic and social reforms and convergence with the El-J. In April 2022, Moldova became an EU Candidate.|
|Objectives||All people of Moldova, especially the most vulnerable, will benefit from inclusive, competitive and sustainable economic development and equal access to decent work and productive employment.|
The Ministry of Economy and the Ministry of Labour and Social Protection, as well as their agencies, such as the SME Development Agency (ODA) and the Employement Agency; Private sector representatives, companies and investors, business partnerships and investment portfolios outside cities;
Local public authorities, including at the district and municipality level, as well as associations, innovation-oriented businesses; Women, youth, seniors, low-skilled workers not in Employment, Education or Training; Migrants (diaspora, returnees) and refugees.
Outcome 1: Policy and institutional frameworks create an empowering environment for inclusive and sustainable economic development in the targeted economic sectors.
Outcome 2: Local/regional communities including private sector representatives meaningfully cooperate in a cluster format to enhance value chains and improve their economic opportunities.
Outcome 3: People of Moldova, especially women, youth and refugees, benefit from improved economic opportunities in the pilot micro-regions.
Policy / regulatory improvements on SME development, including on access to finance and diaspora financial engagement;
At least 3 micro-regions, 15 communities and 24 companies improve their competitiveness and investment attractiveness, through value-chain specialization (with 40% local co-financing).
At least 18750 people (incl. migrants) benefit from increased livelihoods, revenues and economic opportunities.
Results from previous phases:
Economic reforms are offering new opportunities and instruments in support of Small and Medium Entreprises (SME), that can be mobilized in favour of local economic activities and resilience, through better employability, competitiveness and entrepreneurship culture.
The SDC-UNDP Migration and Local Development Project MIDL (2015-2022) contributed to pilot and mainstream community and diaspora engagement with private actors in local development approaches.
Baselines identification will be finalised by the end of QI 2023.
|Directorate/federal office responsible||
United Nations Organization (UNO)
Partial Action 1: United Nations Development Programme UNDP
|Coordination with other projects and actors||
Switzerland is bringing ILO and UNDP closer through convergent parallel actions to contribute to collective results.
This project will enhance the coherence and synergies within the Economic Development and Employment portfolio of Switzerland in Moldova.
|Budget||Current phase Swiss budget CHF 5’810’000 Swiss disbursement to date CHF 947’700|