Photo 1: At the MSRP launch event in 2018, (left to right) Karen Hilliard (former USAID Moldova Mission Director), Douglas Muir (former MSRP Chief of Party), Chiril Gaburici (former Moldovan Minister of Economy and Infrastructure), and H.E. James D. Pettit (former U.S. Ambassador to Moldova) answering questions from Moldovan news outlets. Image source: Nathan Associates Inc for USAID.
Stepping Up Moldova's Efforts for Economic Recovery
By Susan Chodakewitz,
President and Chief Executive Officer
Nathan Associates Inc.
Moldova, a small country nestled between Romania and Ukraine, has made strides in achieving economic growth since its independence from the Soviet Union in 1991, but progress remained slow.
Now, with a war in neighboring Ukraine, the ramifications of the regional conflict brought further disruptions to Moldova’s trajectory for economic growth, triggering a humanitarian crisis which resulted in more than 460,000 Ukrainian refugees, weakened trade routes and logistics, loss of export markets, supply chain issues, and vulnerability to malign influences and cyber threats.
Nathan’s longstanding history of supporting the Government and people of Moldova paved the way for numerous positive transformations.
Through the USAID Moldova Structural Reform Program (MSRP), Nathan played a key role in enhancing business climate reforms which are contributing to a more open, more inclusive and more competitive national economy.
More specifically, Nathan engaged closely with 26 Ministries and Agencies and conducted 11 economic and policy analyses and assessments; and transformed 35 public laws, regulations, procedures, and services. It is estimated that MSRP-sponsored reforms will approximate US$174.6 million in value over a 10-year period following the activity.
But the current regional political context has altered ongoing development efforts.
Now, the Government of Moldova is focused on emergency action to help with the country’s economic recovery, and Nathan under the USAID Moldova Institutional and Structural Reforms Activity (MISRA) is catering to critical areas of intervention including trade facilitation, economic governance, financial reforms, digitalization and integration of government information systems, and strategic communications.
Photo 2: At the MISRA launch event in Spring 2022 (left to right) H.E. US Ambassador Kent Logsdon and H.E. Prime Minister of Moldova Natalia Gavrilita addressing dignitaries and guests. Image source: Government of Moldova.
For a landlocked country like Moldova, trade corridors are critical to economic growth and poverty reduction. They allow for the transport of goods between neighboring countries, increasing the volume of trade while making it easier for businesses to access new markets. Trade corridors also help generate employment opportunities and the development of trade-related services, which in turn make goods and services more affordable and improve Moldovans’ way of life.
The war in Ukraine disrupted trade routes and transportation networks, and in less than eight months since its launch, MISRA’s rapid response is promptly helping streamline the cross-border flow of goods at the Moldova-Romania border crossing point of Leuseni.
MISRA procured and delivered mobile offices equipped with technology that will serve as one-stop control points at the Leuseni border, supporting Moldovan exports into the EU. This model has inspired an additional six border crossing points to be launched in the near future.
Photo 3: Left: H.E. US Ambassador Kent D. Logsdon (center) and Moldva Customs Service Director Mr. Igor Talmazan (center-left) standing by a mobile office and interacting with media representatives during the handover ceremony of mobile offices by USAID Moldova to the Moldova Customs Service at the Leuseni Border Crossing Point. Right: An example of an equipped mobile office to be used as a one-stop border control. Source of images: Nathan Associates Inc. for USAID.
In addition to the immediate assistance MISRA is providing around trade and logistics, the Activity will continue to support Moldovan public and private sectors in strengthening public economic governance institutions, advancing structural reforms to improve trade and investment, and accelerating financial sector reforms.
MISRA is implemented in accordance with the U.S. Strategy on Countering Corruption and supporting the Moldovan Government’s Anti-Corruption Strategy by improving transparency and accountability through digitization, use of and sharing data and information, improved public service delivery that minimizes one-on-one interactions, and removal of barriers such as fees and grafts that significantly increase costs and limit participation of women and other marginalized groups.
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