Economic Response and Recovery

with focus on the vulnerable groups and SMEs from specific economic sectors

An evidence-based national action plan with targeted measures for effective MSME  recovery and supporting the consolidation of a stronger and more resilient economy in the aftermath of the COVID-19 pandemic. The plan is based on a survey of 235 export-oriented manufacturing and agri enterprises from across the country, along with major freight forwarders operating in Moldova. It provides action oriented recommendations for addressing emergency needs generated by the COVID-19 induced economic  crisis as well as capacity needs for increasing the contribution of trade to structural transformation and the achievement of the SDGs. The recommendations were developed in consultation with the relevant State agencies, and could be sequenced to allow for creating dynamic synergies between relief measures and long-term capacity building interventions. The recommendations address end-to-end supply chain operations and are aimed at:  (i) bolstering transparency in trade, (ii) supporting the country’s transition to a paperless trading environment; (iii) improving the efficiency and effectiveness of cross border control processes; (iv) consolidating  the country’s conformity assessment system; (v) supporting regional cooperation, and, (vi) developing the MSMEs’ productive capacities. UNECE is discussing with the State agencies follow-up activities to support the successful implementation of key recommendations.

An evidence-based national action plan with targeted measures for effective recovery of female-owned MSMEs and supporting their increased contribution  to the consolidation of a stronger and more resilient economy in the aftermath of the COVID-19 pandemic. 150 female owned MSMEs were interviewed as of 15 February 2021. Preparations are underway for gaining further insights on issues raised by the female-owned enterprises through follow-up interviews with the enterprises and relevant State agencies. A zero draft of the report will be presented to the Government’s consideration in April 2021.

Implementing UN entity: UNIDO, FAO

Government Counterpart: MoF, MEI, MARDE

Timeframe for impact: Medium (3-6 months)

Project outputs:

A policy paper on stimulus measures to support a green and circular economy is completed
 

Implementing UN entity: UNWOMEN

Government Counterpart: MEI, MHLSP, ODIMM

Timeframe for impact: Long (6 months or more)

Project outputs:

• Women entrepreneurs, women from domestic violence shelters and organizations working on addressing sexual violence are supported to produce prevention supplies and PPE, and items produced by women are marketed
• Women have increased knowledge on how to start, finance and grow their own businesses and increased financial education
• A support network of women mentors is created
• Strategies for women’s economic empowerment and recovery, including those related to decent work as well as safe and healthy work environments, are supported, with a focus on women from the most vulnerable communities
• Companies are supported to implement the Women’s Empowerment Principles (WEPs) in their activity.

Implementing UN entity: UNWOMEN, FAO

Government Counterpart: MEI, MHLSP, MARDE, ODIMM

Timeframe for impact: Long (6 months or more)

Project outputs:

• Public authorities and civil society are equipped with the knowledge and skills required to develop and implement policies that help the women most affected by the COVID-19 crisis
• Rural women and girls apply their skills to tackle economic opportunities, either by becoming self-employed or by joining the formal labour sector in Moldova
• Women-owned and women-led businesses from rural areas benefit from crisis-related and WEPs training and receive financial support to start/grow and digitalize their businesses.
• Rural women support each other throughout the COVID-19 recovery period and are empowered to participate in local planning and budgeting process

Implementing UN entity: UNIDO

Government Counterpart: MEI, ODIMM

Timeframe for impact: Long (6 months or more)

Project outputs:

• The regulatory framework and policies are improved to strengthen the regional and sectoral innovation ecosystems
• Adoption of the regional innovation cluster model is promoted– The development of Innovation, Entrepreneurship and Technology Transfer (IET) platforms is supported
• The internationalization of MSMEs is supported by increasing competitiveness, digital transformation and market access
• Support is provided for the development of guidelines and mechanisms for the transparent and sustainable operation of the Fund for the Support of Digital Innovations and Technological Start-ups, created in accordance with the provisions of Law 77/2016, Article 15 paragraph (1) letter c)

Implementing UN entity: UNIDO

Government Counterpart: MEI, ODIMM

Timeframe for impact: Long (6 months or more)

Project outputs:

• Subcontracting and Partnership Exchange is established to increase institutional support for SME development
• Profiling and matchmaking are conducted between Moldovan MSMEs and major buyers
• MSME benchmarking and upgrading is conducted
• Investment and export promotion for MSMEs are undertaken

Implementing UN entity: FAO, UNWOMEN

Government Counterpart: MARDE

Timeframe for impact: Short (1-3 months)

Project outputs:

• Online platforms for the marketing and distribution of the agriculture and food products to link buyers in the national and international markets with producers in Moldova are developed and functional
• Women farmers are supported in digital marketing

Implementing UN entity: FAO (lead), ILO, UNWOMEN

Government Counterpart: MARDE

Timeframe for impact: Short (1-3 months) to medium (3-6 months)

Project outputs:

• Producer groups are created to consolidate production and marketing capacities
• State institutions have the required tools to monitor and assess the drought situation
• Matching grants and technical support are provided to smallholders, especially women/young women from the agro-sector
• The Agriculture Stress Index is integrated into the current mechanism of weather and crop monitoring

Implementing UN entity: FAO (lead), ILO, IOM

Government Counterpart: MARDE

Timeframe for impact: Long (6 months or more)

Project outputs:

• MARDE has strengthened capacity to promote climate-smart value-chain specialization and job creation
• The Climate Investment and Innovation Fund (CIIF) is established and operational to facilitate value-chain development in rural areas
• MSMEs, young people and women – notably migrants and their families and small farmers –have improved skills and technical capacities to establish and develop innovative green businesses

Co-funding: Public funding (MADRE): $ 2.3 M ($ 580,805); IFAD: $4 M

Implementing UN entity: IOM, ILO, UNDP, UNICEF, FAO

Government Counterpart: MHLSP, ODIMM, MECR, DRB, MARDE

Timeframe for impact: Long (6 months or more)

Project outputs:

• The national social protection system is assessed, supported and capacitated at national and local levels in order to respond to the increase in the return of former Moldovan migrants
• Relevant public employment services reach out to 10,000 individuals and provide innovative tools for the delivery of employment services, including the skills and re-qualification of returning migrants; digital, financial and entrepreneurial literacy are enhanced; the self-employment of skilled unemployed is promoted, including in the agriculture sector; and a digital marketplace platform is developed to facilitate the successful reintegration into the labour market of persons from the targeted groups
• Small business support mechanisms are established or upgraded and 500 returning migrants are integrated into entrepreneurial activities as a result
• Diaspora resources are mobilized for community recovery and development; local stakeholders, including local public authorities, local business communities and returnees, are empowered to jointly put in place post-crisis recovery measures; and 20,000 persons benefit from the implemented measures as a result
• Safe and organized conditions are negotiated with three countries of destination of Moldovan migrants, facilitating the “re-migration” of up to 600 returnees facing hardship and unemployment upon return to Moldova

Implementing UN entity: UNDP (lead), UN Women, UNIDO, ILO

Government Counterpart: MARDE, MoF, MEI, LPAs, ODIMM

Timeframe for impact: Long (6 months or more)

Project outputs:

• The development of a greener, more resilient, healthier and prosperous low-carbon society is facilitated and enabled by the promotion of green and blue investment in the fair energy transition, green innovation technology, green skills the circular economy and in financial mechanisms that will tackle climate related risks and hazards
• Environmental standards and green fiscal stimulus packages are improved
• Platforms, policies and regulatory frameworks for resilient societies are developed and implemented
• Resilient and sustainable investments – activities with high greenhouse gas reduction potential – are promoted through innovative and smart-financing programmes, including equity, venture capital, business angel, crowdfunding, EPC, etc.
• Capacity building measures and tools to achieve socio-ecological and resilient digital transformation are developed and implemented to connect innovation, education and research and ensure the delivery of environmental and energy services to the population at large, youth and vulnerable groups
• Gender-based indicators are introduced in the green economy programmes . Green economy programmes of ODIMM assessed through a gender lens
• Businesses are helped to identify greening opportunities, including with a gender perspective

Implementing UN entity: IOM, UNDP, FAO, ILO

Government Counterpart: MHLSP; MEI, MARDE, ODIMM, ANOFM

Timeframe for impact: Long (6 months or more)

Project outputs:

• Self-employment of skilled unemployed persons is promoted through mentorship and guidance; start-up seed funding and support in testing alternative financing, including crowdfunding and crowd-investment; and support with creating, promoting and maintaining the platform/s of products and services to be provided online or offline by the self-employed
• The economic empowerment of returning migrants and vulnerable persons who lost the income from remittances, recipients of remittances, as well as other groups impacted negatively by socio-economic factors related to COVID-19, is advanced through enhancing entrepreneurial and financial literacy, access to support infrastructure and small business set-up support
• The knowledge and expertise of returning migrants is enhanced in agriculture, climate-resilient livelihoods and sustainable rural development through technical assistance, facilitating their access to information on opportunities of state and private funding programmes and capacity building on community development planning; with the Farmer Field School learning approach used to integrate migrants in rural communities and perform agriculture activities
• Entrepreneurship and social innovation by young people is supported by the building of innovation support infrastructure, and promotion of the development and adoption of innovation-based practices and businesses
• The safe and orderly migration of Moldovan nationals is enhanced through developed programmes for facilitating temporary labour (circular) migration, the adoption of ethical recruitment framework and practices, and implementation of identity management, health assessments and pre-departure orientation programmes

Implementing UN entity: UNDP

Government Counterpart: MECR, Tekwill, Technical University

Timeframe for impact: Long (6 months or more)

Project outputs:

• An ecosystem is created for ICT industry development to help enhance Moldova’s competitiveness
• Vulnerable groups are supported to recover from the effects of COVID-19, and their skills are upgraded and aligned to the market’s needs
• IT specialists from the Republic of Moldova have access to opportu-nity-driven educational and entrepreneurial online programmes
• Substantial co-financing will be provided by the Technical University of Moldova, USAID and SIDA, in partnership with Tekwill (ICT Centre of Excellence)