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Austrian Development Cooperation

MOLDOVA – Country Strategy 2011 - 2015 Presentation, 27 October 2011 Stefan Weidinger , Department for Development Cooperation, Austrian Federal Ministry for European and International Affairs Michael Schieder , ADA Coordination Office Chisinau. Austrian Development Cooperation.

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Austrian Development Cooperation

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  1. MOLDOVA – Country Strategy 2011 - 2015Presentation, 27 October 2011Stefan Weidinger, Department for Development Cooperation, Austrian Federal Ministry for European and International AffairsMichael Schieder, ADA Coordination Office Chisinau

  2. Austrian Development Cooperation Austrian Development Agency (ADA) The Operational Unit of Austrian Development Cooperation Ministry for European and International Affairs(BMeiA) Department for Development Cooperation

  3. Ministry for European and International Affairs (BMeiA) Overall-coordination of the Austrian public development cooperation Formulation of development cooperation strategies and policies Policy-dialogue in Austria and at international level ADA Implementing Austrian development cooperation strategies and programmes Management of bilateral development cooperation budget Policy dialogue in Austria and partnercountries Advising BMeiA Austrian Development Cooperation

  4. References & legal basis • International commitments • Development Cooperation Act • Three-year-Programme on Austrian Development Policy • Bilateral Development Cooperation Agreements

  5. International commitments • Millennium Summit, Millennium Development Goals (MDG) 2000 • Monterrey Consensus 2002 (EU Council Conclusions 2005) • World Summit on Sustainable Development (2002) • Declaration of Paris on Aid Effectiveness (2005) • European Consensus on Development (2005) • Code of Conduct on Complementarity and Division of Labour inDevelopment (2007) • Accra Agenda for Action (2008)

  6. Geographical priorities • Programmes and projects in 7 key regions • Central America • West Africa / Sahel • Southern Africa • Eastern Africa • Himalayas/Hindu Kush • South Eastern Europe/Western Balkans • Black Sea Region/Southern Caucasus

  7. Priority Countries • Nicaragua • (Cape Verde), Burkina Faso • Ethiopia, Uganda • Mozambique • Bhutan • Palestinian Territories • (Bosnia and Herzegovina, Macedonia, Montenegro), Serbia, Albania, Kosovo, Moldova • Armenia, Georgia

  8. History of ADC in SEE • DC in Southeastern and Eastern Europe was part of the Federal • Chancellery from 1989 until 2000 when it was moved to the • Ministry for Foreign Affairs. • Early 90ies - First humanitarian cooperation activities • 1993 - creation of a department for DC in Southeastern and • Eastern Europe in the Federal Chancellery • 1995 – first DC cooperation office opened in Tirana, followed by • offices in Sarajewo (1996), Skopje (1998), Belgrade (2002), • Pristina (2005), Chisinau (2005) and Podgorica (2007) • 2003 – SEE is declared ADC priority region

  9. ADC in Moldova in retrospect • Humanitarian Aid since 1991 (small projects; medical supplies) • 2003 first bilateral project (heating system in dermatologic clinic) • Priority country since 2004 • Opening of cooperation office in 2005 in close cooperation with Swiss Development Cooperation • Accreditation as an Embassy with Chargé d‘affaires since 2007 • 2008 signing of a bilateral DC Agreement Country Strategy • Country Strategy 2011-2015 (continuity) • Total bilateral assistance imbursed: 9m € • Annual budget 2011; 2m€ • Total ODA: 20m €

  10. DC Coordination with new Member States • DC Coordination with former transition countries makes • sense and is of mutual benefit. • Regional Partnership Programme (RPP) pilot project fund: • 58 projects with 53 organizations • MoU 2009-2011with SlovakAid; 2 projects in Serbia • MoU with Czech Development Agency; water/waste water • project in Moldova • Increasing contacts with other new MS/development • agencies (CZ, SLO, HON, RO, BG, LIT, PL)

  11. Political and economic environment • Political challenges: • Political participation/culture, lack of trust among the population • Democratic fragility (presidential elections, constitutional crisis) • Education, health; environment, infrastructure; migration • Transnistria • EU integration (negotiations of a new PAA) • Economic/social challenges: • Unemployment, social exclusion, poverty; economic crisis • Investment climate, corruption • „Old mentality“; management, skills, institutional deficits • Inefficient use of transfers (consumption, unproductive inv.) • Lack of economic diversification • Lack of counter-cyclical monetary instruments due to Euro peg

  12. Moldova in regional comparison • Economist Democracy Index • MD 65. as SER, better than all WB countries [ARM (109), GEO (103);AZ 135., Ö 13.; NOR1.] • TI Corruption Perceptions Index • MD 105. [ARM (123), GEO (68); AZ 134., Ö 15.; DK 1.] • GINI Index • MD 24. [ARM (35), GEO (47); AZ 34.,BuH (90), MK (40); Ö 6.; S 1.] • Human Development Index (UNDP) • MD 99. [ARM (76), GEO (74); AZ 67., Ö 25.; NOR1.] • BIP/cap (WB) • MD 119. [ARM (94), GEO (97); AZ 69., Ö 11.; Q 1.] • Doing Business (WB) • MD 94. [ARM (43), GEO (11); AZ 38., BuH (116), Ö 28.; SGP 1.]

  13. DC Challenges in Moldova • Transition is one form of development as a comprehensive process of economic, social and political improvement. • Goals of this process correspond broadly with the Copenhague criteria (indicators of successful transition/development): • political (democracy, RoL, human/minority rights; Democracy-Index, TI-Index) • economic (open competitive market economy; GDP/cap, HDI, Gini-Coefficient) • aquis communautaire (legal adaptation) • absorption capacity

  14. ADC strategic goals in Moldova • ADC Overarching goals acc. to Development Cooperation Act • - Poverty reduction - Peace and security - Ecological and social sustainable development • Support for transition process and implementation of GoM 5 pillar reform programme (Rethink Moldova: Donor Coordination Meeting March 2010): • European Integration (Copenhagen Criteria, European Council 1993) • Economic growth (sustainable economic development) • Governance (strengthening democratic institutions) • Decentralization (administrative und fiscal) • Reunification (Transnistria: reconciliation) • Donor coordination • State Chancellary of the Republic of Moldova; EU,EBRD, WB, UN; CH, S, AUT, GIZ, CDA, USA etc. Sector Donor Coordination; EU Donor Coordination

  15. Country Strategy 2011-15 Priorities • Water and sanitation • Vocational training • Governance (Non-focal area) • Cross-cutting issues: Gender und Environment Strategic goal: Poverty reduction and rural development Planning documents: National Development Strategy (law) und National Development Plan 2008-11 (action plan); MTEF 2009-11; EU-Moldova Action Plan (2005)

  16. Priority Sector Water and Sanitation (WSS) • GOALS • Modernisation of WSS • Rehabilition of WSS infrastructure: essential for economic development • Capacity development for communal water suppliers • Contribution to increase sustainable access to safe drinking water from 31 % to 65 % and to waste water treatment from 42 % to 72 % by 2015 • Contribution to implementation of National Water Strategy (NWS) • Contribution to development of financial WSS strategy • Priorisation of investments (action plan, GIZ project based on OECD/ADA intervention: regional development plans) PROJECTS • WSS rehabilitation in Nisporeni • ApaSan (cooperation with SDC in 15 municipalities) • Investment/action plan for WSS investments/NWS • TAfor rehabilitation of waste water treatment in Cantemir

  17. Priority Sector Vocational Training (VET) GOALS • Modernizationand adaptation of curricula and teaching methods to the needs of the labour market • Support for labour market oriented vocational training • Promotion of entrepreneurship (training firms) • Strengthening of competitiveness and mobility PROJECTS • Curricula Reform in agricultural schools as competence centres for regional development ; Curricula Reform in economic VET schools • Modernization of education in public vocational schools in the field of water and sanitation related professions (link to WSS) • Superior training for doctors and medical personnel at the children‘s cancer clinic in Chisínau

  18. Governance (Non-focal sector) • GOALS • Rule of Law, democracy, transparency, accountability • Conflict prevention • Integration of returnees (migration management, mainstreaming migration) • Social inclusion • Strengthening of civil society PROJECTS • Capacity building for MFAEI staff (PAA etc.) • Reintegration support for voluntary returnees • International Summer School: Centre for Peace Initiatives, Democracy and Conflict Resolution

  19. Cross-cutting issues Gender and Environment GOAL • Increased consideration given to gender und environment issues in project planning and implementation PROJECTS • Gender and environment as integral part of WSS and VET projects

  20. Other ADA Instruments • REGIONAL PROJECTS • EcoNet (training firms and fairs; Kulturkontakt) • Support for/consolidation of social dialogue (ILO) • Training for civil servants (DAK) • Reparis (WB) NGO-COOPERATIONS • Day care centres for elderly people in Straseni • Social centre in Tirnova • Care centres for socially disadvanged children (Tiraspol) • Inclusion of mentally handicapped people BUSINESS PARTNERSHIPS • Feasibility study for the cultivation of bio vegetables

  21. Other Austrian Ministries/Institutions • OeEB • MD is a priority country; by 2015, 15 % of project funds are to go • to SE/EE. • Needs Assessment Study for private sector development • Assessment study Remittances from Austria • BSTDB Trust Fund for joint financing opportunities Soft Loans (OeKB) In 2010, MD was included in the list of target countries (Black Sea region is one of 5 target regions). EU Twinnings Support to the Implementation and Enforcement of Competition and State Aid Policy in the Republic of Moldova (BWB JP)

  22. Thank you for your attention.

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