Moldova is one of the poorest countries in Europe. Although the official poverty rate fell from 30.2 percent in 2006 to 25.8 percent in 2007, there are still many poor communities in the country, mainly concentrated in villages and small towns. Empowering them to manage their own development is an effective way to reduce poverty.
The Moldova Social Investment Fund II (MSIF II) Project helps poor and vulnerable population groups to address their priority needs by building capacity in community organizations and local governments through training and assistance in implementing investments. The project targets the poor by using a list of deprived villages (a poverty map) to select beneficiary villages and towns, and working with community associations in these areas. The communities are mobilized to choose and plan investments, contribute to their financing, procure contracts for civil works, and operate investments. Communities are also trained to supervise their sub-projects and demand good quality work from contractors and consultants. The project works with local governments to strengthen their capacity to consult with citizens, plan for their own development, and to raise and manage funds.
The project also supports the provision of social care services. This is being done through the launch of a network of community social care services for vulnerable groups in pilot rayons (districts) and capacity building of local government and service providers. Plans for social care service delivery in six pilot rayons has been completed. Based on such plans, priority activities have been implemented - typically building and equipping local social care service centers. These activities are funded by the Swedish International Development Cooperation Agency (SIDA) through a USD 3.6 million grant; the European Commission recently made a grant of Euro 4.5 million.
In late 2007, a high quality study was completed that compared outcomes in project beneficiary villages with those in control villages. The study found a significant net benefit from project interventions in the beneficiary villages. For example, school successes increased by 4.6 percentage points more in MSIF communities than in non-participating communities. The impact assessment also found a greater increase in consumption of consumer goods in MSIF communities. Beneficiaries also reported more satisfaction from use of a variety of services produced using MSIF-supported infrastructure.
With these successes, MSIF attracted about USD 6 million in contracts from the Government to implement budget-financed projects. MSIF has thus become a financially sustainable institution for community development, for reinforcing local governments, and for supporting local delivery of social services.
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