Moldova’s political transition is settling down. With over 8 months of intermittent electoral campaigns and two parliamentary elections, amidst a deepening socio-economic crisis caused by a substantial drop in remittances and a decrease in exports and VAT-generating imports, Moldova inaugurated a new Government on September 25.
The World Bank has been at the forefront of a broader donor effort to provide the incoming administration with the necessary expertise to get the ball rolling right away. A set of policy suggestions spelling out short and medium-term priorities for the country on a sectoral basis was developed as early as May 2009, but was put on-hold due to a repeat election in July. Taking into account the extent of the current crisis, the notes identify three key areas of Government attention in the short-term: adjusting the budget deficit, ensuring financial sector stability, and protecting the socially vulnerable groups, who are most at risk in times of crisis.
A public launch of the Donor Policy Notes for the Government took place on October 1, to coincide with the Government’s first week in office. A joint press conference with the new Minister of Economy and the Minister of Finance aimed to highlight the country’s state of the economy and provide an opportunity for the donor community to reiterate their full support to Moldova. The next step is hosting a retreat with the entire Moldovan Cabinet to discuss the government’s own anti-crisis plans, followed by a roll-out of Government sectoral anti-crisis measures in the coming weeks. In times of crisis, transparency and accountability becomes ever more important.