II. Country Assessments and Performance Measures - Moldova


U.S. Government Assistance to and Cooperative Activities with Eurasia
Bureau of European and Eurasian Affairs
January 2005
Report

Map of MoldovaArea: 21,029 sq. miles, slightly larger than Maryland
Population: 4,446,445 (July 2004 est.)
Annual Inflation: 11.6% (2004 est.)
Population Growth Rate: 0.18% (2004 est.)
Gross Domestic Product (GDP): $7.792 billion (purchasing power parity, 2004 est.)
Life Expectancy: Male: 60.88 years; Female: 69.39 years; (2004 est.)
GDP Per Capita: $1,800 (purchasing power parity, 2004 est.)
Infant Mortality: 41 deaths/1,000 live births (2004 est.)
Real Annual GDP Growth: 6.3% (2004 est.)

U.S. STRATEGIC INTERESTS

The United States has a national interest in promoting political reform and economic growth in Moldova, the poorest country in Europe. Parliamentary elections in the spring of 2005 will be a watershed event, demonstrating Moldova's commitment to generally free and fair elections and its progress towards integration with the family of European democracies. The U.S. Government (USG) would like to see the long-standing Transnistrian conflict resolved in a way that protects Moldova's sovereignty and territorial integrity, promotes democracy, and helps ensure stability in a region that includes the Balkans. The lack of border controls along the Transnistrian portion of the Moldova-Ukraine border threatens regional and U.S. interests, as it provides opportunities for weapons proliferation, smuggling, transnational crime, and human trafficking. Moldova has been a strong supporter of the Global War on Terrorism, Operation Enduring Freedom, and Operation Iraqi Freedom, granting the United States overflight and basing rights, as well as contributing a contingent to Coalition forces in Iraq.

OVERVIEW OF U.S. GOVERNMENT ASSISTANCE

In FY 2004, the USG provided an estimated $48.72 million in assistance to Moldova (including $0.70 million in FY 2003 FREEDOM Support Act funds):

  • $4.96 million in democratic reform programs (including Public Diplomacy exchange programs);

  • $13.92 million in economic reform programs; 

  • $9.72 million in security, regional stability and law enforcement programs; 

  • $6.18 million in social-sector reform programs; 

  • $7.18 million in humanitarian programs; 

  • $50,000 in cross-sectoral and other programs; and 

  • privately donated and U.S. Defense Department excess humanitarian commodities valued at $6.72 million.

In FY 2004, 148 Moldovan citizens traveled to the United States on USG-funded training and exchange programs implemented by USAID and the U.S. Departments of Commerce and State, bringing the cumulative number of Moldovan participants to approximately 3,100.

U.S. ASSISTANCE PRIORITIES

Democratic Reform Programs: In FY 2004, the main priorities for USG-funded democratic reform assistance in Moldova included promoting the conditions for free and fair parliamentary elections in 2005; advancing the rule of law by informing citizens of their legal rights and responsibilities; increasing the capacity of the legal system to respond more effectively by improving the knowledge of judges, lawyers, and other legal professionals; and working with local governments to improve their ability to manage financial and strategic planning and services, and increase transparency and citizen participation.

Economic and Social-Sector Reform Programs: USG-funded economic reform programs in Moldova focused on creating jobs and economic opportunities, primarily in rural Moldova, through agribusiness-sector development, the consolidation of land holdings through market-driven mechanisms, agricultural policy reform, increasing smallholder-farmer participation in business associations, and supporting the development of small and medium-sized enterprises (SMEs). USG assistance helped Moldova introduce processes and technologies that significantly increased the sales and value of farm produce. The USG's highest social-sector priority in FY 2004 was to assist Moldova in combating tuberculosis (TB) by improving laboratory services and strengthening institutional capacity to detect and successfully treat TB. The USG also funded a comprehensive set of activities to combat trafficking in persons (TIP), focusing specifically on the economic roots of trafficking and improving access for young women and girls to employment within Moldova.

Security, Regional Stability and Law Enforcement Programs: In FY 2004, USG security-related assistance was focused on promoting Moldova's territorial integrity and fighting transnational crime by strengthening Moldovan law enforcement and border security and redirecting weapons-of-mass-destruction (WMD)-related expertise towards sustainable peaceful research. In the law enforcement arena, the USG focused on enhancing Moldova's institutional capacity to combat corruption and TIP. These efforts included legislative drafting assistance, training and equipment donations, which improved Moldovan capabilities and will eventually help reduce reliance on foreign assistance.

SECTORAL ASSESSMENTS

Democratic Reform

In FY 2004 the USG expended significant resources working with civil society groups to promote discussion of topical issues, training for domestic election observers and poll workers, and election-related exchange programs for government and civil society representatives. The U.S. Embassy and senior officials from Washington actively engaged members of the GOM, the opposition and the Central Election Commission on the importance of free and fair elections.

USG democracy assistance also focused on political party development, assisting all major Moldovan political parties to operate more transparently, improve their effectiveness, and address more directly the needs and concerns of voters. U.S. assistance also aimed to develop the leadership and democracy-building skills of local political activists. In addition, the new USAID civic participation program is helping to mobilize communities throughout Moldova, build the capacity of NGOs to implement projects that improve the quality of community life, fund community-based development activities and projects, increase citizens' knowledge of government processes, and foster dialogue and partnership between citizens and their local governments.

One of the most problematic issues in democratic reform during FY 2004 has been the transformation of the state-owned TV and radio company Teleradio Moldova (TRM) into a public broadcaster. The process began in 2002, in response to claims of censorship by TRM employees and at the urging of the Council of Europe. The GOM passed a law to restructure the broadcaster that same year, but it was not immediately implemented as amendments had to be enacted to remedy inadequacies in the original bill. The law was again amended in November 2003 to allow for the liquidation of the company rather than its restructuring. The liquidation and subsequent rehiring process was completed at the end of the summer, but immediately resulted in protests by journalists and civil society representatives, who claimed the process was non-transparent and had stacked the new TRM staff with those supportive of the government.

More significant than the ongoing labor dispute is the evidence that TRM's broadcasting policies have not changed. A monitoring project financed by a consortium of international donors (including the U.S.) has shown that Moldova 1 TV and Radio Moldova continue to cover the activities of the government excessively and preferentially. The balance and objectivity of TRM are essential for the health of Moldovan democracy because more Moldovans by far get their news from TRM than any other source and it is by far the most trusted information supplier. U.S. officials continue to engage the GOM on this issue, stressing that balanced coverage and equal access to the public media are important components of truly free and fair elections.

Programs in FY 2005 will focus heavily on preparing for the parliamentary elections due in the first half of CY 2005, on improving the independence and objectivity of the public media, continued development of civil society, local government reform, fostering civic activism, and educational reform as Moldova brings its higher education system in line with Western Europe's through the Bologna Process. In addition, the U.S. Embassy will continue to work with the roughly 3,000 former participants of USG-funded exchange programs to highlight and spread democratic values.

Economic and Social-Sector Reform

Although it remains the poorest country in Europe, Moldova will record its fifth consecutive year of GDP growth in 2004, with year-end real GDP growth predicted at eight percent. However, growth is largely driven by remittances from Moldovans working abroad, which the IMF estimates to be as much as one-third of the population. The flow of foreign currency into Moldova results in an overvalued Moldovan leu, hurting exports and increasing demand for imported consumer goods. Inflation is estimated to be ten percent in 2004. Moldova's external debt in 2004 is estimated to total $1.9 billion, or seventy-four percent of GDP. Moldova became a member of the World Trade Organization in 2001. In 2003, the IMF suspended its Poverty Reduction and Growth Facility for Moldova, and the World Bank stopped its Structural Adjustment Credit (SAC-III) program. The IMF continues to believe that there is no basis for a new IMF program in view of current government policies.

The agricultural sector accounts for fifty percent of Moldova's GDP and over half of the country's population are employed in agriculture-related activities. Following a severe drought in 2003 in which grain and barley production decreased dramatically, preliminary estimates indicate that in 2004 Moldovan agricultural production will resume its trend of positive growth rates, with harvests increasing twenty-three percent over 2003 actual production and six percent over 2002 production levels.

Agricultural post-land-privatization activities continued to be the main focus of USG economic assistance in FY 2004. The USG, through the Private Farmer Assistance Program, gave new landowners better access to legal protection, equipment, information and financial support, and helped facilitate the establishment of private-farmer cooperatives, associations and resource centers for Moldovan farmers to access U.S. technology. The second thrust of post-privatization efforts in the agricultural sector, the Private Farmer Commercialization Program, supported the development of Moldova's agribusiness sector by opening a network of 81 community-level farms stores that provide expanded input supply, credit, and market networks to private farmers. USG assistance also helped improve Moldova's capacity to produce fresh and frozen products with a higher value-added component and completed a Moldovan High-Value Agricultural (HVA) Export and Competitiveness Study that identified and prioritized the sector's potential for increased production, export opportunities, market potential and comparative advantages. The study served as the basis for the design of a new Agribusiness Development Project launched in June 2004, and indicated that a minimum investment of $2 billion will be needed to return Moldovan agriculture to 1985 HVA production levels.

Progress on many economic reforms remains stalled. As in 2003, international donor opposition was crucial in deterring GOM efforts to roll back market reforms in the agricultural sector and reintroduce collectivized agriculture as an administrative means of pursuing land consolidation.

The USG helped increase the role of small and medium sized enterprises (SMEs) in the Moldovan economy by providing them with market business skills and information, building the capacity of business service providers, and improving SME access to finance. USG assistance helped private businesses expand by providing capital, management and marketing assistance, and information systems for new and existing enterprises. USG assistance also supported the establishment of National and Regional Working Groups on Regulatory Reform in cooperation with the Ministries of Economy and Finance. The working groups identified barriers to business including regulations, paid services, control mechanisms, and other discriminatory legal and administrative practices that were hampering the business climate, and began work on activities to eliminate them.

During FY 2004, USG assistance to the energy sector, with some minor exceptions, was phased out due to worsening prospects for a transparent privatization of the electrical distribution networks, a general lack of transparency in the sector, and the erosion of the regulatory agency's independence and effectiveness.

In the social sector, USG assistance is moving away from humanitarian assistance activities, toward major health projects and a new initiative to combat trafficking in persons. Tuberculosis is a major public health danger in Moldova, driven by declining social and economic standards, high unemployment and resulting poverty, as well as by inefficient anti-TB practices. During FY 2004, the USG began a new four-year bilateral project to combat TB that supports the implementation of the World Health Organization recommended strategy for TB diagnosis, treatment and care procedures. The levels of morbidity and mortality associated with increasing incidence of HIV, the high prevalence of hepatitis, and elevated levels of sexually transmitted infections all rank high on the list of Moldova's most serious health problems. The USG will implement a new project that will provide assistance in the prevention of HIV/AIDS and Hepatitis B&C.

Moldova has been identified as one of the select countries to benefit from the President's 50 million dollar anti-TIP Initiative announced at the UN General Assembly in September 2003. In coordination with the State Department, Embassy, and USAID, Moldova will be implementing a comprehensive anti-TIP program to focus on Prevention of TIP, Prosecution of Traffickers, and Protection of Victims. USAID's new Anti-Trafficking Program will focus on prevention by addressing the root causes of this problem: poverty and unemployment. FSA funding continues to address the areas of Prevention, Prosecution, and Protection through programs that raise awareness, assist women victims through grants to the Center for the Prevention of Trafficking in Women (CPTW), and efforts with the Moldovan Interior and Justice Ministries (see next section).

Security, Regional Stability and Law Enforcement Programs

The Government of Moldova has developed a program to restructure and modernize its military forces; however, progress is slow due to chronic under-funding of the defense budget, which is used primarily to pay salaries and maintain a large, deteriorating infrastructure. Despite these severe resource constraints, Moldova is a reliable and valuable defense partner and an active member of Partnership for Peace. Most notably, Moldova has developed a Peacekeeping Battalion and is focusing its efforts to train and equip these forces with the goal of participating in United Nations and other international peacekeeping missions. In July 2004, Moldova deployed a 12-man contingent to Iraq, attached to a U.S. Army unit. USG-funded security assistance programs focus on helping Moldova develop its peacekeeping capabilities along with other targeted military capabilities to facilitate the interoperability of Moldovan forces with Western forces. The International Military Education and Training (IMET) Program has and will continue to reap great benefits, as IMET-trained officers are being promoted to positions of increased responsibility and influence. Moldova makes good use of its IMET-trained officers and retention rates are high: eighty-nine percent. In FY 2004, 38 Moldovan officers were trained in the United States, with 49 more trained through Military Education Team visits to Moldova. Other programs that have benefited the Moldovan Armed Forces include the Enhanced International Peacekeeping Capabilities Program, the Excess Defense Article (EDA) Program, and the Marshall Center Program.

Resolution of the Transnistrian conflict and withdrawal of Russian troops and munitions remain important USG policy objectives in Moldova. Movement towards a political settlement was intermittent in FY 2004, with progress in the five-sided negotiating format (involving Moldova, Transnistria, and mediators Russia, Ukraine and the OSCE) stymied by Transnistrian provocations and tacit Russian support for the separatists. Despite Russia's commitment at the 1999 OSCE Istanbul Summit to withdraw its munitions from Moldovan territory by the end of 2002 (a deadline extended to the end of 2003 but still unmet), only one trainload of Russian arms departed Transnistria in 2004.

Transnistria remains a source and transit point for contraband. A significant portion of USG assistance under the Export Control and Related Border Security (EXBS) assistance program was again used to monitor Transnistria, with a focus on the movement of munitions and contraband. EXBS cooperation was critical in the development of new embossers for Moldovan Customs, making it more difficult for Transnistrian entities to counterfeit the legitimate seals. USG assistance also provided new computers and automation equipment for the Border Guards; the new system helped better track the movement of illegal aliens, weapons proliferators, and possible terrorists, and provided enhanced capabilities for the Border Guards' anti-trafficking database to monitor movements of traffickers and victims. USG support and World Bank assistance for the Trade and Transportation Facilitation in Southeast Europe program (TTFSE - a program to upgrade the efficiency of border crossing infrastructure and harmonize procedures) enabled the Customs Service to continue implementation of the Automated System for Customs Data (ASYCUDA), resulting in a thirty percent revenue increase. USG assistance also enabled Moldovan officials to participate in seminars on the creation of a Virtual Law Enforcement Center and the development of a Trade and Transportation Facility (TTF) under the Georgia, Ukraine, Uzbekistan, Azerbaijan and Moldova (GUUAM) Group, a Eurasian regional organization committed to bringing stability and prosperity to the critical corridor linking Asia and Europe.

Moldova's institutional infrastructure remains plagued by low salaries, insufficient training and equipment and widespread corruption. A U.S. Department of Justice (DOJ) Resident Legal Advisor (RLA) was assigned to the U.S. Embassy in FY 2003 to work with the Prosecutor General and the Center for Combating Economic Crimes and Corruption (CCECC) on anti-corruption initiatives. The CCECC came under harsh criticism from President Voronin at the end of 2003 for not being effective. The RLA has worked with the CCECC to streamline and downsize, abolishing the infamous audit and control division that Voronin criticized as a shakedown unit. While corruption remains a serious problem, some improvements were made. In FY 2004, the RLA also provided training to investigators from the CCECC and prosecutors on topics including plea-bargaining and prosecutorial discretion in investigating corruption cases. One series of trainings resulted in passage of amendments to the law on operative investigations that permit agents to perform undercover operations.

Moldova remains a source nation for trafficked persons, and the USG is engaged on a number of fronts to assist the GOM in its fight against this problem. In FY 2004, USG efforts remained focused on 1) prevention and victim/witness assistance through grants to the Center for the Prevention of Trafficking in Women (CPTW), 2) legislative and legal reform through the efforts of the RLA and ABA/CEELI, and 3) enhanced law enforcement activity against trafficking via training, a long-term FBI advisor, and equipment donations. Largely as a result of a sustained international focus on the trafficking problem in Moldova, the GOM increased its attention to and efforts against trafficking this past year. As part of the President's initiative (noted above) a USG proposal for a specialized anti-trafficking task force in Moldova is currently under review by the GOM.

In addition to TIP, FY 2005 USG law enforcement and security assistance initiatives will focus on anti-corruption. This assistance will encompass legal reform, instruction, equipment donations, and advice/guidance. The anti-TIP realm will again see the long-term presence of an FBI Special Agent to assist with regional coordination and provide specialized advice, guidance, and equipment to Moldovan anti-TIP units. Anti-corruption will be the area of the most pressing legislative reforms, as the RLA and ABA/CEELI work to refine anti-corruption legislation and streamline anti-corruption prosecutions. The DOJ will also provide resources for anti-corruption and organized crime law enforcement units. Mission anti-terrorism efforts will focus on continuing the participation of Moldovan security officers at select Anti-Terrorism Assistance (ATA) courses to improve host nation anti-terrorist capabilities and increase regional cooperation. Border security projects will include training and equipment donations to the Customs Service and Border Guards, and the establishment of 22 mobile inspection stations to more closely monitor the movement of contraband through the Transnistria region.

Humanitarian Assistance

In FY 2004, the U.S. State Department provided $7 million in humanitarian assistance to Moldova, funding one airlift of critical medicines and medical supplies and 46 containers of surface-shipped medical equipment and supplies, clothing, food, and emergency shelter items. While the total value of these humanitarian commodities was $6.75 million, the transportation/operation cost to the USG was $0.25 million. These programs served the most needy and vulnerable populations throughout Moldova.

The U.S. Department of Defense (DoD) allocated $281,000 to fund the renovation of a national burn clinic, as well as completing three other projects begun in previous FY's: the renovation of the Crihana-Veche Boarding School, a national HIV/AIDS diagnosis and treatment center, and a national fire-fighting and rescue training center. Also, Moldova received three HAP-EP shipments valued at $96,000 in support of earlier projects.

In FY 2003, the U.S. Department of Agriculture (USDA) provided approximately $15 million in food assistance to Moldova, including $9 million in the form of approximately 12,340 metric tons of food commodities under the Global Food for Education Initiative. The food was distributed to approximately 300,000 schoolchildren in over 2,500 schools - one of the highest penetration rates for this program anywhere in the world.

In FY 2004, USG humanitarian assistance will refurbish a fire fighters' training center, a burn clinic, three fire stations, and an HIV/AIDS treatment clinic at the Infectious Diseases Hospital. Other planned humanitarian assistance in FY 2004 includes the installation of potable water wells in several localities and continuation of the hepatitis-B inoculation program for orphans.

COUNTRY PERFORMANCE MEASURES

Moldovan economic and democratic reforms remained stalled in FY 2004. The government did not take decisive steps to resolve issues raised by international observers when 2003 local elections failed to meet previous high standards. The transformation of Teleradio Moldova (TRM) from a state-owned company to a "public" broadcaster was non-transparent, and TRM continues to provide news coverage that is heavily biased in favor of the government. No progress was made in key energy reforms, and IMF and World Bank programs were not renewed.

Economic & Democratic Reforms, 1991-2004

 Economic and Democratic Reforms, 1991-2004, for Moldova

Data are drawn from EBRD, Transition Report (November 2004) & Freedom House, Nations in Transit 2004 & Freedom in the World 2004. Ratings are based on a 1 to 5 scale with 5 representing the most advanced.

Latest-year observation refers to 2004 economic reform data and 2003 democratic reform data; i.e., 2004 data for democratic reforms are not yet available.

Moldova's economy grew for the fifth consecutive year, but growth was driven largely by remittances from Moldovans working abroad. The difficult business and investment climate has prevented the private sector from expanding significantly.

Economic Structure and Human Development, 1990-2004

Economic Structure and Human Development, 1990-2004, for Moldova

World Bank, World Development Indicators 2004 (2004); UNICEF, Social Monitor 2004 (2004); EBRD, Transition Report (November 2004); and UNDP, Human Development Report (2004).

SECTORAL PERFORMANCE MEASURES

DEMOCRATIC REFORM

Performance Indicator: Political Process Rating, Drawing from Freedom House, Nations in Transit 2004 as modified by, "Monitoring Country Progress in Eastern Europe and Eurasia" USAID/E&E/PO, #9 January 6, 2005. (1-lowest, 5-highest; data based on previous calendar year)

FY 2002 Baseline

FY 2003 Actual

FY 2004 Target

FY 2004 Actual

3.33

3.17

3.17

3

FY 2004 Results: International observers of Moldova's nationwide local elections in May/June 2003 concluded that the voting generally met international standards, but there were problems during the campaign period, including bias in state-controlled media, the arrests of two opposition mayors, and misuse of administrative resources for political purposes. This represented a regression from Moldova's generally good record of elections since independence. With parliamentary elections due in early 2005, our efforts have focused on preventing a repeat of such shortcomings. Through Democracy Commission funding, the U.S. Embassy has supported the training of poll workers and election observers; projects to explain the voting process and help motivate the electorate to make their voices heard; and preparations for a non-partisan "get-out-the-vote" campaign.

Performance Indicator: Civil Society Rating, Drawing from Freedom House, Nations in Transit 2004 as modified by, "Monitoring Country Progress in Eastern Europe and Eurasia" USAID/E&E/PO, #9 January 6, 2005. (1-lowest, 5-highest; data based on previous calendar year)

FY 2002 Baseline

FY 2003 Actual

FY 2004 Target

FY 2004 Actual

3.0

3.17

3.33

3.0

FY 2004 Results: In FY 2004, citizen involvement in NGOs and political movements increased in response to events in Transnistria and anticipation of parliamentary elections due in the first half of 2005. NGO activity is strong in Moldova, and NGOs generally operate unimpeded. The USG assisted the development of NGOs in the agricultural sector, and promoted cooperation among NGOs working to ensure free and fair elections. USG-funded activities promoted the development of civil society through Democracy Commission small grants, improved access to Internet in rural Moldova, and exchange programs.

ECONOMIC AND SOCIAL REFORM

Performance Indicator: Real Growth in Agricultural Production (growth rates indicate percentage year-on-year growth published by the Moldovan Government)

CY 2002 Baseline

CY 2003 Actual

CY 2004 Target

CY 2004 Actual

N/A

-14%

20%

+23% (projected)

CY 2004 Results: High temperatures and low precipitation in the spring and early summer of 2003 followed a severely cold winter. As a result only 101,000 tons of wheat and 45,800 tons of barley were harvested, compared with 1.1 million tons of wheat and 256,000 tons of barley in 2002. Despite the drought however, with USG assistance, Moldova's agri-business sector continued to increase the total sales and value of farm produce, resulting in a small increase in total production in the combined agriculture and agri-business sectors. Preliminary estimates indicate that in 2004, agricultural production will resume its trend of positive growth rates, with harvests increasing twenty-three percent over 2003 actual production and six percent over 2002 production levels.

Performance Indicator: Foreign Direct Investment, Drawing from European Bank for Reconstruction and Development, Transition Report 2004 as found in, "Monitoring Country Progress in Eastern Europe and Eurasia" USAID/E&E/PO, #9 January 6, 2005. (data based on previous calendar year)

CY 2002 Baseline

CY 2003 Actual

CY 2004 Target

CY 2004 Actual

194

205

225

223

CY 2004 Results: Moldova continued to struggle to attract investment in 2004. Problems include corruption, over-regulation, the difficulty of starting a business and poor infrastructure. However, Moldova has many promising features, particularly in the agri-business sector. USG assistance focused on improving performance in key sectors and encouraging reduction in bureaucratic impediments to doing business. Senior U.S. officials called attention, both publicly and privately, to the need to improve the business climate.

Performance Indicator: Basic Education Enrollment (as percent of relevant population, according to the Ministry of Education)

CY 2001 Baseline

CY 2002 Target

CY 2002 Actual

CY 2004 Actual

94

95

94.7

N/A

CY 2002 Results: The percentage of children enrolled in basic education (7-15 year olds) increased marginally in 2002, topping 1989 pre-independence levels, following years of significantly decreasing rates in the 1990s. USG assistance, in the form of USDA's Food for Education Program, which fed 300,000 students in 2,500 schools, contributed to this increase in attendance.

SECURITY, REGIONAL STABILITY AND LAW ENFORCEMENT

Performance Indicator: Corruption, Drawing from Freedom House, Nations in Transit 2004 as modified by, "Monitoring Country Progress in Eastern Europe and Eurasia" USAID/E&E/PO, #9 January 6, 2005. (1-lowest, 5-highest; data based on previous calendar year)

FY 2002 Baseline

FY 2003 Actual

FY 2004 Target

FY 2004 Actual

1.5

1.5

2.17

1.5

FY 2004 Results: At the end of 2003, the President harshly criticized the Center for Combating Economic Crimes and Corruption (CCECC) for its shortcomings. USG assistance helped raise the Center's professional and ethical standards, and U.S. officials have repeatedly urged the GOM to tackle corruption seriously. However, the overall situation did not improve significantly in 2004, due in part to low public salaries and excessive regulation of public services and economic activities.

Performance Indicator: Trafficking in Persons (Number of trafficking victims repatriated by International Organization for Migration)

CY 2002 Baseline

CY 2003 Actual

CY 2004 Target

CY 2004 Actual

N/A

235

200

236 (through November)

FY 2004 Results: The Moldovan Government continued to address this problem constructively, increasing its cooperation with donors, passing improved legislation (with USG input) and increasing the number of prosecutions and convictions. The number of repatriated trafficking victims remained steady in 2004 after declining in previous years, but this may reflect improved law enforcement efforts and international cooperation.

Performance Indicator: Customs collections (First 10 months of CY, U.S. Dollar equivalents in millions, as reported by the Moldovan Customs Department)

CY 2002 Baseline

CY 2003 Actual

CY 2004 Target

CY 2004 Actual

N/A

199

249

260

FY 2004 Results: Illicit shipments of weapons from and through the separatist region of Transnistria remained a threat to regional security, and in 2004 USG assistance helped the GOM improve border and customs controls, contributing to an increase of more than thirty percent in revenue collections. USG assistance also helped integrate Moldova more thoroughly into the GUUAM Group and the Southeast European Cooperative Initiative (SECI), and promoted accelerated implementation of the Trade and Transportation Facilitation in Southeast Europe (TTFSE) project.

FY 2004 FUNDS BUDGETED FOR U.S. GOVERNMENT ASSISTANCE TO
MOLDOVA

TOTAL USG FUNDS BUDGETED:
$41.30 m
VALUE OF DONATED HUMANITARIAN COMMODITIES $6.72 m

TOTAL FY 2004 USG ASSISTANCE:
$48.02 m
FSA Total:$22.54 m

Agency for Internat'l. Dev. (USAID)
   Democratic Reform $1.64
   Private Sector Initiatives $12.48
   Social Sector Reform $3.93
   x Community Exchanges $0.60
   x Enterprise Funds $0.25
   x Eurasia Foundation $0.08
   x Parking Fine Withholding $0.00

Total USAID: $18.98


Dept. of State
   EUR Democracy Programs (incl. Dem. Comms. & NED) $0.35
   Humanitarian Transport $0.25
   International Information Programs (IIP) $0.02
   Law Enforcement Assistance $0.96

Total State: $1.58


Dept. of Agriculture (USDA)
   Cochran Fellowship Program $0.17

Dept. of Commerce
   Business Info. Service for the NIS (BISNIS) $0.07
   Commercial Law Development Program (CLDP) $0.25
   Special American Business Internship Training (SABIT) $0.20

Total Commerce: $0.52


National Science Foundation
   Civilian R&D Foundation (CRDF) $1.30

non-FSA Total:$18.76 m

Agency for Internat'l. Dev. (USAID)
   Anti-Trafficking in Persons $2.00

Dept. of State
   Anti-Trafficking in Persons $0.11
   Export Control & Related Border Security Asst. (EXBS) $0.64
   Foreign Military Financing (FMF) $0.99
   Human Rights & Democracy Fund (HRDF) $0.05
   International Information Programs (IIP) $0.02
   International Military Educ. & Training (IMET) $1.23
   Public Diplomacy Exchanges $2.05

Total State: $5.08


Dept. of Agriculture (USDA)
   PVO / NGO Food Aid $6.93

Dept. of Defense
   International Counterproliferation Programs $0.55
   Warsaw Initiative $0.63

Total DoD: $1.18


Dept. of Labor
   Anti-Trafficking in Persons $1.25

National Science Foundation
   Civilian R&D Foundation (CRDF) $0.07

Peace Corps
   Volunteers / General Operations $2.25



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