2. z
The 2015 Addis Ababa International Conference on
Financing for Development set up 17 sustainable goals in
order to eradicate global poverty by 2030. These goals are
expected to be achieved through factors such as
international development cooperation, domestic public
resources, science, technology, innovation, domestic and
international finance and many other resources. [1]
In this simulated project and for the scope of this coursework, I will act
in the role of an International Development Practitioner having the
task to develop a strategy aiming at eradicating poverty in the
Republic of Moldova, currently labeled as the poorest country in
Europe. According to the World Bank Group’s Moldova country
profile, several governments have put some good reforms on paper
over the last decade, however they are yet to materialize. [2] A new
Moldovan executive is in place starting June 2019. This government
declared anti-corruption and transparency as its main goals which is a
promising turn for their politics and a good sign for investors while
calling for new development financial strategies.
3. z
Moldova currently has a negative balance of trades importing more products
than exporting. This creates an overreliance for Moldova’s economy on imported
goods. The huge problems Moldova faces yearly are the drastic climate
changes. In these periods agriculture is at its lowest point while textile becomes
the main exported commodity. To rely on one product only is a very unsafe
strategy of development. [3]
This development finance strategy aims to improve the agro-industry sector by
investing in agricultural innovations and irrigation systems which will help
overcome climate related problems. This will create a stable income for
Moldova’s economy from its agrobusiness exports that will become consistent
throughout the year. The long term goal is to make the balance of trades positive
which will align Moldova’s development with the SDG 2030. Furthermore, part of
this strategy is to aim at encouraging rural communities, entrepreneurs and
SMEs owners to be part of the change. This latter goal can be achieved via
policy dialogues with the new government in order to encourage new legal
frameworks development. Additionally, external communication via media will
promote Moldovan agro-tourism internationally which should potentially open
more doors for investments.
4. z
Collaborations and mutual assistance is part of this developing finance strategy
project, so existing finance possibilities will be used and enhanced. The
European Bank of Reconstruction and Development is already investing in
changing lives in Moldova and many of its development projects are in full swing
there. USAID which is working for a long time in Moldova’s agricultural sector is
another existing partner to collaborate with. Their HVAA (High Value Agriculture
Activity) project which cultivates modern agriculture sector in the rural areas of
Moldova will be a great partnership component to start with. [4]
In the future there will be additional sources of finance to be potentially
accessed. For example, the European Commission, that has many agricultural
support programs like EPI-AGRI and Rural Development. EC can be attracted as
a co-donor to make this development finance strategy even more sustainable. [5]
An important part of this strategy is the policy dialogue with the newly elected
government to elaborate welcoming legal frameworks to invite local business,
small and medium enterprise owners and other co-participants to find ways of
unlocking their financial potential.
5. z
Historically, investors have mixed feeling, mostly uncertain, when it comes to
investing in Moldova. This is based on the political instability and lack of
transparency within the recent years. The current economic turnaround shows
that there is hope for Moldova, especially given the fact that the new executive
promised anti-corruption and transparency reforms. Moreover, there are donors
that are currently working progressively in the country. Both USAID and EBRD
have done major works in opening access to financial potential and skills and in
attracting local communities into a co-participating tandem. A collateral
communication strategy as a part of this financial development strategy would be
useful in attracting future investments. Furthermore, accessing foreign medias to
promote rural tourism and agricultural opportunities can make future investors
more tempted to step in.
The existing multilateral donors results coupled with a promising, transparent
newly elected government reforms will make the country more attractive and
safe for investment. Tackling climate problems, investing in irrigation, promoting
agro-tourism internationally will help transform the Moldovan agricultural sector
into a prosper one and will make the SDG 2030 a feasible target for Moldova.
6. z
SOURCES:
[1] United Nations, Inter-agency Task Force on Financing for Development,
Financing for Sustainable Development Report 2019 (New York: United Nations,
2019), available from: https://developmentfinance.un.org/fsdr2019
[2] World Bank Group, 2019, website available from:
https://www.worldbank.org/en/country/moldova/overview
[3] Trading Economics, 2019, website available from:
https://tradingeconomics.com/moldova/exports
[4] USAID, 2019, website available from: https://www.usaid.gov/moldova/fact-
sheets/fact-sheet-high-value-agriculture-activity
[5] European Commission, 2019, website available from
https://ec.europa.eu/eip/agriculture/en/funding-opportunities-boosting-agricultural