The IMF has published the Poverty Reduction Strategy and Growth Strategy for Moldova.
The document published on the IMF website states that Moldova is constantly transforming, directly affected by regional and global developments: rising energy and food costs, the security crisis in the region caused by the war in Ukraine, the reform of value chains, and even climate change affecting agricultural production. In this extremely difficult environment, in addition to short-term interventions to address the current crises, the government proposed to define a medium- and long-term development vision to strengthen resilience to future crises and create a framework for a sustainable and inclusive development of the country. The National Development Strategy (NDS) "European Moldova 2030" is a national document of strategic long-term vision, which indicates the direction of the country and society development and adapts priorities, objectives, indicators and targets of international commitments undertaken by Moldova in the national context, especially under the Association Agreement between Moldova and the European Union, and obligations deriving from the candidate country status for EU accession. As noted by IMF experts, in the National Development Strategy, the Moldovan Government sets national priorities, and its structure and elements are the basis for the development of the national strategic planning framework, highlighting the vision, priorities, objectives and areas of intervention relevant in the long term. The NDS proposes a people-centered vision of development. According to this vision, the individual is a beneficiary, not a resource or an instrument of development and development itself implies material content to enhance well-being. Thus, the development goals set by the NDS are derived from the modern conception of the quality of life and the main problems identified at the national level. As noted, in the context of Moldova's development, the most important parameters of the quality of life are: income, living conditions, education, culture, health, social solidarity, respect for human rights, trust in the Government, trust in justice, human security and quality of the environment. The NDS will serve as a reference point for all sectoral policies and programs, both at the national, regional and local level. Thus, existing or current sectoral documents on state policy will be adapted to the NDS, reflecting the people-oriented vision, their needs and aspirations. The key policy priorities will be reflected in national development plans, medium-term budget frameworks and national public budgets over the planning period. The NDS will guide Moldova's development partners toward national development priorities and ensure better coordination of their projects and resources. The NDS will also serve as an important factor in mobilizing private resources, as well as ideas and projects of civil society organizations and the national scientific community, which will focus on priority sectors and areas for ensuring the quality of life of the people. The general and specific development goals proposed by the NDS for the period until 2030 reflect the desire to improve the welfare of the Moldovan people, to improve the lives of citizens, to Europeanize state institutions, to strengthen democracy, the rule of law, to respect human rights, and to bring Moldova closer to European standards and values, which will ensure the process of our country's accession to the EU. Thus, the NDS will ensure the modernization of all spheres of political and socio-economic life, bringing Moldova closer to EU standards. One of the main strategic objectives to be implemented by 2030 is to reduce by 50% the level of absolute poverty and poverty in all its forms; increase the productivity of agriculture and income of small farmers; implement development-oriented policies that support productive activities, decent work, entrepreneurship, creativity and innovation and promote the growth of micro, small and medium enterprises; encourage productivity growth through diversification, technology, modernization and innovation; and improve the quality of life. As noted in the document, in the short term, the impact of inflation on real incomes of the population and, consequently, on their purchasing power and level of well-being should be minimized. This requires mechanisms of compensation for price increases on the most sensitive products (tariffs on energy and food products) for the most vulnerable groups of the population. There is also a need for mechanisms of compensation for entrepreneurs, especially small entrepreneurs, in the face of rising commodity prices (energy, fertilizers, logistics, services, etc.). In the medium and long term, sustainable income growth can be ensured by improving the competitiveness of firms, increasing productivity and integrating marginalized people and groups into processes of economic value creation. As noted, it is also crucial to actively support the entry of young people and women into entrepreneurship, and to innovate as widely as possible. In addition, income growth must be based on formalized economic and labor activities, with compliance with tax laws, and the transition from the informal to the formal economy will be encouraged. // 15.02.2023 – InfoMarket
