ESTONIAN DEVELOPMENT COOPERATION

Country Strategy Paper – Moldova

2014 - 2015

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Table of contents

ESTONIA’S DEVELOPMENT COOPERATION WITH MOLDOVA – SUMMARY .. 3

OVERVIEW OF ESTONIAN DEVELOPMENT COOPERATION .......................... 4

ESTONIA*S GENERAL DEVELOPMENT COOPERATION GOALS .......................... 4

STRATEGIC OBJECTIVES FOR COOPERATION WITH MOLDOVA ................... 5

MOLDOVA’S NATIONAL DEVELOPMENT STRATEGY ................................... 6

INFORMATION ON THE PROGRAMMES OF OTHER DONORS ....................... 6

ESTONIAN DEVELOPMENT COOPERATION PRIORITY SECTORS IN MOLDOVA .......................................................................................... 7

1. MODERNISING HEALTH CARE SECTOR ........................................................ 7

2. STRENGTHENING DEMOCRATIC STATE STRUCTURES ............................ 8

3. STRENGTHENING CAPACITY OF CIVIL SOCIETY ....................................... 9

4. SUPPORTING DEVELOPMENT OF RURAL AREAS..................................... 10

ESTONIAN DEVELOPMENT COOPERATION IN MOLDOVA – BUDGET ......... 11

ANNEXES 12

ANNEX 1: FRAMEWORK FOR RELATIONS BETWEEN ESTONIA AND MOLDOVA .................................................................................................................... 12

ANNEX 2: BACKGROUND: DEVELOPMENT OF THE REPUBLIC OF MOLDOVA .................................................................................................................... 12

ANNEX 3: ESTONIA’S PAST AND PRESENT DEVELOPMENT COOPERATION ACTIVITIES IN MOLDOVA ........................................................................................ 14

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ESTONIA’S DEVELOPMENT COOPERATION WITH MOLDOVA – SUMMARY

Estonia has supported development cooperation projects in Moldova since 2000. Starting in

2006, Moldova has been a priority partner country for Estonian bilateral development

cooperation. According to the Strategy for Estonian Development Cooperation and

Humanitarian Aid 2011-2015, Moldova will remain a priority country for Estonia’s bilateral aid.

Based on the development priorities of Moldova, past successful bilateral development

cooperation activities, Estonia’s advantages as compared to ther other donors and existing

capacity for implementing bilateral development cooperation activities, the Estonian

Government’s strategic priorities for cooperation with Moldova over the period of 2014- 2015

relate to the following areas:

Modernising the health care sector – special attention will be devoted to sharing

experience in ensuring the sustainability of the health insurance system. The same

applies to access to health care services and creating preconditions for implementation

of e-health solutions, and development of health statistics and analytics.

Strengthening democratic state structures and systems - special attention will be

paid to supporting activities that contribute to Moldova’s integration with the European

Union and support will be provided for building a modern, effective internal security and

legal system. Throughout all activities, attention will be devoted to introducing various

information and communication technology (ICT) and e-government solutions that help

to increase the effectiveness of and access to public services, contributing to reducing

corruption in the public sector.

Strengthening the capacity of civil society - with a special focus on contributing to the

development of an active and sustainable civil society, introducing and transferring

Estonia’s expertise and best practices.

Supporting the development of rural areas - with a special focus on increasing the

competitiveness and export capacity of agricultural producers, as well as on increasing

the capability of regional development organisations and local governments, and

promoting cooperation between the public sector and civil society at the regional and

local levels.

Human rights, gender equality, environmental sustainability, and ICT are among the

horizontal themes that Estonia supports while collaborating with Moldova. One of the

horizontal themes, that supports three priority sectors, is educational cooperation (e.g.

cooperation between universities, scholarships and courses for Moldovan students and state

and local government officials etc).

The estimated budget of Estonian development cooperation with Moldova in 2014-2015 is

1.6 million euros. The implementation of the strategy will be evaluated upon completion in

2015. An additional analysis of the strategy document and Estonian-Moldovan development

cooperation relations will be conducted based on the current situation prior to the possible

extension of the country strategy for the post-2015 period.

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OVERVIEW OF ESTONIAN DEVELOPMENT COOPERATION

ESTONIA’S GENERAL DEVELOPMENT COOPERATION GOALS

Estonian development cooperation has been initially shaped by global development agreements and

goals such as the UN Millennium Development Goals, and it is based on recognised principles of aid

effectiveness – the Paris Declaration on Aid Effectiveness, Accra Agenda for Action and the Busan

agreements, the Council of the EU Operational Framework on Aid Effectiveness and the EU’s

Development Policy Agenda for Change. The goals and objectives of Estonian development

cooperation are also shaped by our own transition experience, reform experiences, and by our

membership in the EU, UN, WTO, OECD etc.

The Estonian Government approved the Strategy for Estonian Development Cooperation and

Humanitarian Aid 2011-2015 in January 2010. It was drawn up on the basis of the previous strategy

for 2006-2010 and includes Estonia’s experience as a donor. The goals of Estonian development

cooperation across the areas of activities are the following:

Supporting human development and increasing access to education and health care in

developing countries, with a special focus on women and children;

Supporting the protection of peace and human rights and the development of democracy,

ensuring stability and introducing good governance practices;

Promoting economic development, including support of economic reforms, integration into the

global trade network and agriculture; and fostering environmentally friendly and sustainable

development;

In line with the principles of the strategy, supporting international organisations that implement

development cooperation. Improving Estonian development cooperation, focusing, above all, on a

limited number of priority partner countries and sectors, while following the priorities of partner

countries and keeping in mind long-term goals;

Enhancing the development cooperation capacity of the Estonian public, private, and third

sectors, increasing awareness of development cooperation and introducing global education.

Throughout the horizontal themes, Estonian development cooperation addresses:

Human rights;

Gender equality;

Environmental sustainability;

Extensive application of information and communication technologies.

Estonia’s bilateral development cooperation is primarily aimed at countries to which Estonia can offer added value and which are committed to moving towards a democratic society built on human rights.

The main attention is paid to the Eastern Partnership countries - Georgia, Moldova, Ukraine,

Armenia, Azerbaijan and to post-conflict Afghanistan. Estonia’s goal is to develop longer-term

cooperation of a more planned nature with the partner countries that is supported by formulating

development cooperation country strategy papers.

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STRATEGIC OBJECTIVES FOR COOPERATION WITH MOLDOVA

Moldova has been a priority partner country for Estonia’s bilateral development cooperation since

2006, and Estonia’s public and private sectors and civil society organisations (CSOs) have developed

sustainable cooperative relations with partners in Moldova. Over the period 2006-2012, Estonia (the

Ministry of Foreign Affairs and other government agencies) allocated 2.35 million euros in support for

Moldova – including: 2.22 million euros for development cooperation actions and 0.13 million euros as

humanitarian aid.

According to the Strategy for Estonian Development Cooperation and Humanitarian Aid 2011-2015,

Moldova will remain a priority country for Estonia’s bilateral development cooperation.

The strategic objectives for Estonian development cooperation with Moldova are centred within the

development of the EU’s European Neighbourhood Policy, including its specific Eastern Partnership

dimension: “...based on a community of values and principles of liberty, democracy, respect for human

rights and fundamental freedoms, and the rule of law ... the Eastern Partnership aims to create the

necessary conditions to accelerate political association and further economic integration between the

EU and the interested partner countries, recognising the economic benefits of enhancing trade in

goods and services, the potential for increased investment flows and the importance of progressive

economic integration with the EU Internal Market…”1

The basis for the Estonian-Moldova development cooperation country strategy is past Estonian-

Moldovan cooperation, Moldova’s own interest in learning from Estonia’s experiences and the

Republic of Moldova’s development priorities. The evolution of the country strategy has also been

shaped within the context of the specific bilateral agreements and other ties: socio-economic,

educational, and cultural, between people, businesses and civil society.

The country strategy encompasses fields of cooperation where Moldova’s development priorities

coincide most with the capability of Estonia’s partners’ implementing opportunities and activities.

Different parties – e.g. government institutions, local government or subordinate institutions, non-

profits, foundations and other legal persons – can participate in implementing Estonia’s bilateral

development cooperation projects pursuant to the Strategy for Estonian Development Cooperation

and Humanitarian Aid (2011-2015).

The primary form for carrying out bilateral Estonian-Moldovan development cooperation is constituted

by various capability building projects, where technical knowledge is disseminated by way of sharing

experience obtained by Estonia from social, government and administrative reforms.

Above all, this takes place through technical cooperation, consultation and training aid measures,

which are implemented in partnership between service provider(s) and the project’s Moldova-side

beneficiary(ies). The latter are expected to take over the project outcomes and continue to implement

them to ensure sustainability of changes and developments initiated in the framework of the project.

If it is completely justified, aid can, to a limited extent, also be provided in the form of technical

equipment in the broader context of capacity building goals.

The multi-annual strategic development cooperation framework is used initially to make use of existing

ties of cooperation where value added has already emerged. However, in order to further strengthen

bilateral cooperation with Moldova, the programme also supports the creation of new cooperative ties,

which are closely connected with the development strategies and needs of our Moldovan partners and

with regard to which our Moldovan partners have definite development objectives.

1

Joint declaration of Eastern Partnership conference, Warsaw, 29-30 September 2011

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To support larger and longer-term projects, achieve sustainable development outcomes and ensure

greater responsibility and participation of Moldova partners, Estonia proceeds in planning and

evaluating development cooperation activities, to an increasing extent, from long-term support in a

given field and objectives that transcend the level of a specific project.

MOLDOVA’S NATIONAL DEVELOPMENT STRATEGY

This strategy was prepared on the basis of the official development policy framework document,

Moldova 2020: National Development Strategy of the Republic of Moldova for 2012‐20202. This

strategy document sets economic growth and poverty reduction as the main goal. The goal is to be

attained by focusing on seven priority fields:

1. Education (including reducing unemployment, bringing the education system into better

conformity with labour market needs, reducing emigration among young people);

2. Improving the situation of the roads network;

3. Developing the finance sector (including stimulating competition in the sector);

4. Improving the business environment (including simplifying the regulatory framework and

making it more transparent by using IT solutions that would benefit citizens and companies);

5. Energy efficiency (including energy conservation, and use of renewable energy sources);

6. Pension system (including ensuring sustainability);

7. Rule of law (including ensuring quality and effectiveness and the fight against corruption).

In addition to the abovementioned basic documents, Moldova’s strategies for development in specific

fields tie in most with Estonia’s priorities of cooperation: National Health Care Policy (2007-2021),

Health Care Development Strategy (2008-2017), Strategic Programme for Technological

Modernisation of Governance (e-transformation), Open Government Partnership Action Plan 2012-

2013, Food Safety Strategy 2011-2015, Strategy for Development of Services in Rural Areas 2012-

2022, National Strategy for Sustainable Development of the Agro-Industrial Sector 2008-2015.

Other documents of importance in the context of this development cooperation country strategy are

the implementation plan3 related to the EU-Moldova ENP action plan and annual progress reports

4.

INFORMATION ON THE PROGRAMMES OF OTHER DONORS

Donor coordination and aid effectiveness are important principles for Estonia, and have been taken

into account in developing this cooperation programme. Accordingly, consultations with the Moldovan

side (ministries and agencies, universities and civil society representatives), and with other donors

active in Moldova were undertaken in spring 2013 in order to support the further identification of

longer-term needs and the focusing of Estonia’s development cooperation objectives for the period

2014-2015.

Estonia’s development cooperation will be conducted in close dialogue with other donors active in

Moldova, in particular the European Commission (EC) and the EU Member States, additionally with

other key donors such as the USA, WHO and UNICEF. In relation to Estonia’s priorities of

cooperation the following are highlighted as prominent donors with ongoing programmes, with whom

coordination will be pursued:

Health care sector: World Health Organization (WHO).

Good governance: European Union delegation, World Bank, Sweden, USA, Czech Republic,

Latvia, Lithuania.

Civil society: European Union delegation, Sweden, USA, Czech Republic.

2 http://www.gov.md/public/files/Moldova_2020_ENG.pdf

3 http://ec.europa.eu/world/enp/pdf/action_plans/moldova_enp_ap_final_en.pdf

4 2012 report:

http://ec.europa.eu/world/enp/docs/2013_enp_pack/2013_progress_report_moldova_en.pdf

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Estonia does not have an official representation in Chisinau and Moldova is covered from the Estonian

Embassy in Kyiv. To ensure more effective participation in sectoral donor coordination initiatives on

the spot in Moldova, a contact person for Estonian development cooperation, residing in Chisinau,

was appointed in September 2013.

ESTONIAN DEVELOPMENT COOPERATION PRIORITY SECTORS IN

MOLDOVA

Based on Estonia’s advantages and existing capacity to implement bilateral development cooperation

activities, the strategic priorities for the Republic of Estonia’s government for cooperation with

Moldova, during the Strategy’s term up to 2015, are the following:

1. MODERNISING THE HEALTH CARE SECTOR

Means of delivery: exchange of knowledge and experiences via health care projects, supporting

cooperation between Estonian and Moldovan health care institutions, cooperation between

universities.

Outcomes:

o The projects will improve the access of the population to the health care services, support

sustainable development of the health insurance system in Moldova, ensure greater

effectiveness and sustainability in the Moldovan health care system as a whole.

Impacts: the effectiveness, quality and availability of the supply of health care services will

improve, and thereby the health of the population will also improve.

The medium-term priorities for Estonia’s development cooperation in Moldova relate to promoting the

following:

Ensuring sustainability of the health insurance system: Moldova’s health insurance system is

undergoing a number of reforms similar to the ones carried out in Estonia years ago. Financing of

health insurance is one of the priorities for health care system reforms. Thus Estonia will be able to

introduce to its partners in Moldova the lessons and best practices learned in this field. Estonian

experts have helped to develop the Moldova Health Insurance Fund’s organisational strategy for

2013-2017. The good cooperation contacts between Estonian and Moldovan health insurance funds

and with the Moldovan office of the WHO should be continued.

o Outputs: training key persons, contributing to the drafting of analyses, strategies and action

plans for the sector, passing on Estonian experiences.

o Partners (Estonia): the Estonian Health Insurance Fund, other health care institutions.

o Partners (Moldova): Ministry of Healthcare, National Health Insurance Company; WHO office

in Moldova, European Union delegation.

Improving access to health care services, creating preconditions for implementation of e-

health solutions, developing health statistics and analytics: The situation of health care in

Moldova is characterised largely by the same problems that Estonia was forced to deal with 10-15

years ago: shortage and inefficient use of the resources, insufficient and uneven availability of health

care services, uneven and/or unverified quality of services on offer. The process of modernising the

Moldovan health care system hinges on, among other things, improving the population’s access to

health care services (including family doctors, medicinal products and hospital treatment) and medical

information, as well as improving the cost-effectiveness of the health care system, one of the bases of

which is adequate statistics on the health sector and analytical capability. Use of ICT and mobile

solutions allows the objectives to be achieved with reasonable costs. Estonia has good experiences in

implementing of e-health solutions. By way of sharing these experiences, the Moldovan citizens’

access to first-tier health care services and medical information can be improved and it will also be

possible to contribute to optimising the health care system through knowledge-based solutions.

Estonia can assist Moldovan partners in developing broader e-health strategies and future plans as

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well as by introducing specific e-health and other software solutions developed in Estonia. It is

important for the development of e-health to be systematic taking into account Moldova’s state health

care policy and e-government policy.

o Outputs: technology transfer; training of key persons; drafting of analyses, strategies and

action plans for the sector, passing on Estonian experiences.

o Partners (Estonia): Ministry of Social Affairs, Estonian Health Insurance Fund, MTÜ Estonian

Advice Center, Praxis Center for Policy Studies, e-Governance Academy, other health care

institutions and associations, institutions of higher education competent in the field.

o Partners (Moldova): Ministry of Healthcare, National Health Insurance Company; WHO office

in Moldova, Moldova Family Doctors Association, Moldova IT companies, Moldova

Government Office e-Government Center, European Union delegation, World Bank.

2. STRENGTHENING DEMOCRATIC STATE STRUCTURES

Means of delivery: exchange of knowledges and experiences via projects oriented at

strengthening and developing the public sector.

Outcomes: projects will support the further development and reform of the public sector.

Impacts: the result will be effective and citizens orientated public services, the continued

development of legal norms and the rule of law.

The medium-term priorities for Estonia’s development cooperation in Moldova relate to promoting the

following:

Facilitating Moldova’s European integration aspirations: Sharing Estonia’s experience linked

to its integration into the EU and our good practice experience in terms of the operation of the acquis

is one of the most important directions for cooperation. The priority is clearly reflected by the

Government of Moldova and the issue is also recognised as important in the bilateral agreements

between the two countries. Topics related to the Association Agreement, including the Deep and

Comprehensive Free Trade Agreement receive particular attention, as do various other EU

programmes for which Moldova will become eligible and contributing to participation of Moldovan

institutions in the said networks (e.g. the Seventh Framework Programme/Horizon 2020 and others).

o Outputs: developing/providing training for public servants; practices; promotional activities

encompassing developing the relevant implementing/enforcement provisions and working

procedures; related communication/information materials etc.

o Partners (Estonia): Estonian Eastern Partnership Center, in addition, various ministries and

agencies, institutions of higher education competent in the field.

o Partners (Moldova): State Chancellery, Ministry of Foreign Affairs and European Integration,

plus various ministries and agencies.

Modern and efficient internal security and legal system: Sharing Estonia’s experiences linked

to the reforms of security and legal systems, supporting the management of efficient, effective and

democratically legitimated and controlled systems. Cooperation in the context of border guard and

visa topics, which also facilitates Moldovan European integration aspirations, is of special focus.

Efforts will also be invested in activities with the potential of supporting reduction of corruption in the

public sector.

o Outputs: Updated management systems and procedures; support for legislative drafting

and/or of related implementation/enforcement provisions, and operational procedures etc.;

support for improving technical capability; development/delivery of training courses for

officials.

o Partners (Estonia): the Police and Border Guard Board, Ministry of the Interior, Ministry of

Justice, courts, Academy of Security Sciences, other institutions of higher education

competent in the field.

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o Partners (Moldova): Ministry of Interior, Ministry of Justice, Moldovan police and its various

subunits, courts.

Introducing opportunities for e-governance and contributing to implementation as a

horizontal priority: One of the priorities of the Moldovan government is to digitise public services and

implement e-governance solutions. The mobile ID, launched in 2012 with the support of Estonian

experts, lays good groundwork for offering new public services. E-solutions allow increasing

effectiveness of public service and their availability to the population in different sectors (agriculture,

education, law, health care etc) and administrative levels, the solutions also contribute significantly to

reducing corruption in the public sector.

The e-Government Center fulfils the role of an e-state coordinator; Estonian experts have provided

consultation in the development of its strategy and structure. Introducing ICT solutions was a

component of the majority of the past Estonian-Moldovan development cooperation projects. The

good cooperation to date should be continued, as Estonia has a wealth of experience in this field and

the Moldovan partners have shown openness to cooperation for learning from local best practices.

o Outputs: training of key persons, drafting of analyses, strategies and action plans for the

sector, technology transfer; development/delivery of training courses for officials, passing on

Estonian experiences.

o Partners (Estonia): e-Governance Academy, Praxis, various ministries and government

agencies, institutions of higher education competent in the field.

o Partners (Moldova): the main partner is the Moldova Government Office’s e-Government

Center, plus various ministries and government agencies.

3. STRENGTHENING THE CAPACITY OF CIVIL SOCIETY

Means of delivery: exchange of knowledge and experiences via civil society organisations’

projects.

Outcomes: projects support the sustainable development of Moldovan civil society, which allow

them to effectively fulfil their role as an advocate, public sector monitor and service provider. The

capability of cooperation among civil society organisations (CSO) and between CSOs and the

public sector will also improve. More attention will be devoted to the participation of women in

society and the work of CSOs.

Impacts: the result will be better conditions for human rights, social equality and the rule of law,

stronger CSOs will also contribute to reducing corruption in society and they will also constitute a

platform for self-realisation for young people and having an effect on reducing emigration of the

working-age population.

The medium-term priorities for Estonia’s development cooperation in Moldova relate to promoting:

The capability of Moldovan CSOs to contribute to development processes in the following

fields:

o Human rights and democracy.

o Gender equality.

o Social inclusion.

o Environmental protection.

Sharing Estonian experiences related to developing and strengthening an active and

sustainable civil society. The main focus will be placed on the formation of associations on the

grass-roots level and strengthening their sustainability and operating capacity helping them effectively

and sustainably implement their members’ goals or, in the case of advocacy organisations, help them

defend their target groups’ interests. A contribution will be made to the development of dialogue and

capacity of cooperation within civil society, as well as to the improvement of cooperation between civil

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society and government authorities. The essential role played by CSOs as valuable partners for the

public sector in policymaking, project implementation and in informing and involving the public is

clearly stressed as a core element of the Strategy for Estonian Development Cooperation and

Humanitarian Aid.

o Outputs: Updated management systems and procedures; new tools and services; related

communication/information materials; development/delivery of training courses for civil society

representatives; education campaigns, analysis reports for public policy management etc.

o Partners (Estonia): Development cooperation roundtable, Praxis, various other CSOs and their

umbrella organisations, various ministries and government agencies.

o Partners (Moldova): CSOs and umbrella organisations, various ministries, government

agencies and local governments.

4. SUPPORTING THE DEVELOPMENT OF RURAL AREAS

Means of delivery: the exchange of knowledge and experience via regional development and

cooperation projects.

Outcomes: projects contribute to Moldova’s regional development via support for public sector

institutions, CSOs and entrepreneurs. The local governments will have improved readiness to

implement new e-services at the local level; the capacity of regional CSOs to deal with

advocacy on local level will improve; the capacity of regional development organisations to

carry out various development projects will increase. The competitiveness and export capacity

of agricultural producers will grow.

Impacts: more favourable conditions for sustainable economic growth, an increase in

productivity and improvement in salary opportunities and job creation; democratic and more

effective public policy at the regional and local level; improved cooperation between civil

society and the public sector; slowing emigration from rural areas and from Moldova.

The medium-term priorities for Estonia’s development cooperation in Moldova relate to promoting:

Supporting the agricultural sector: Sharing Estonia’s experiences, the main goal of which is

to contribute to increasing the competitiveness of Moldovan agricultural producers, better realising the

export potential for agricultural output and job creation in rural areas. Topics like food safety,

supporting the development of sectoral information systems and registers, developing producer

organisations and cooperative activity (production and marketing), adapting organic agriculture

production to new challenges (harmonising sectoral legislation with the EU). In addition, support is

provided for fields of activities and enterprises related to the quality of life in rural areas and

diversification of the rural economy. The priority is among the main objectives of Moldova’s Agriculture

and Rural Development Strategy 2014-2020 and is reflected in the bilateral agreement between the

two countries.

o Outputs: training of key persons, contributing to drafting of analyses, strategies and action plans

for the sector, technology transfer; development/delivery of training courses for officials and

agricultural producers; introducing the best practices for cooperative activity.

o Partners (Estonia): the Ministry of Agriculture and agencies in its jurisdiction, various Estonian

agriculture organisations and producers’ associations, institutions of higher education

competent in the field, educational institutions and entrepreneurs.

o Partners (Moldova): the main partner is the Ministry of Agriculture and Food Industry,

the Agricultural Information Board and the Agency for Interventions and Payments in

Agriculture.

Supporting public sector institutions and civil society in Moldovan rural areas is treated in

the framework of priorities 2 (strengthening democratic state structures) and 3 (strengthening the

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capacity of civil society) taking into account the needs of supporting Moldova’s regions throughout the

process of planning cooperation in the given priority area. The focus is on capacity building of regional

and local institutions and development organisations in providing public services, in territorial planning

and regional development planning, promoting enterprise and implementing various development

projects.

ESTONIAN DEVELOPMENT COOPERATION IN MOLDOVA – BUDGET

The Strategy for Estonian Development Cooperation and Humanitarian Aid 2011-2015 establishes an

estimated financial framework for carrying out Estonian development cooperation up to 2015. The

volumes of funding will be reviewed each year pursuant to the Ministry of Foreign Affairs development

cooperation and humanitarian aid budget. In addition to these funds, the financing of Estonia’s

development cooperation activities in Moldova can also take place through the budgets of other public

sector institutions.

Based on the volume of previous development cooperation with Moldova and the prognosis for the

financial framework through to 2015, the estimated volume of Estonia’s development cooperation with

Moldova (within the budget of the Ministry of Foreign Affairs) for the period 2014-2015 is 1.6 million

euros.

The recommended multi-annual framework and the advisable distribution of allocations between the

three priorities of cooperation and the micro financing projects for smaller development projects

(support given through the Estonian Embassy in Kyiv) are listed in Table 1 below.

The budget will be managed by the Ministry of Foreign Affairs. The exact size of the budget and

distribution among priority sectors depends on the funds allocated for development cooperation, as

well as on the development of ties of collaboration between institutions in various sectors in Estonia

and Moldova.

Table 1. Estonian development cooperation (Moldova) for 2014-2015 – Recommended

budget (in euros)

Development priority 2013 2014 2015 Total:

2014- 2015 %

Good governance 280 000 360 000 640 000 40 Health care 175 000 225 000 400 000 25 Civil society 105 000 135 000 240 000 15 Development of rural areas

105 000 135 000 240 000 15

Micro-financing 35 000 45 000 80 000 5

TOTAL (in euros) 500 000 700 000 900 000 1 600 000 100

The Estonian Ministry of Foreign Affairs is responsible for the strategic planning, implementation,

monitoring, and coordination of the activities of the Estonian development cooperation. Practical

implementation of development cooperation activities is undertaken by other ministries and their

agencies, other constitutional institutions, local authorities, the non-profit and business sectors.

Progress monitoring and reporting, auditing and controlling will be undertaken in accordance with the

related legislation5 and additional guidance issued by the Ministry of Foreign Affairs. Each year the

5 Govermment of the Republic regulation no. 8 of 21 January 2010, Conditions and procedure for the provision of development assistance and humanitarian aid

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Ministry of Foreign Affairs shall submit a report on the implementation of the development cooperation

programme to the Government of the Republic of Estonia.

ANNEXES

ANNEX 1: FRAMEWORK FOR RELATIONS BETWEEN ESTONIA AND

MOLDOVA

Diplomatic relations between the Republic of Estonia and the Republic of Moldova were restored in

November 1992. Since then relations have gradually evolved, including via the conclusion of a series

of intergovernmental bilateral cooperation agreements and ‘memoranda of understanding’. In 2006,

Moldova opened an embassy in Tallinn. Estonia covers Moldova from the Republic of Estonia’s

Embassy in Kyiv. Estonia is represented in Moldova also by an active honorary consul.

Main bilateral agreements between the Republic of Estonia and the Republic of Moldova

Co-operation Agreement between the Ministry of the Interior of the Republic of Estonia and the Ministry of

Local Public Administrations of Moldova

13.02.2009

Memorandum of Mutual Understanding between the Ministry of Agriculture of the Republic of Estonia and the

Ministry of Agriculture and Food Industry of the Republic of Moldova on Research and Economic Co-

operation in the Field of Agriculture

16.08.2010

Agreement on Bilateral Co-operation between the Tax and Customs Board of the Republic of Estonia and the

Customs Service of the Republic of Moldova

10.11.2010

Co-operation Agreement between the Border Guard Board of the Police and Border Guard Board of the

Republic of Estonia and the Border Guard Service of the Republic of Moldova

21.12.2010

Agreement on Co-operation in Education, Culture, Youth Affairs and Sports 10.12.2011

Agreement on Cooperation between the Estonian Health Insurance Fund and the Health Insurance of

Moldova

9.11.2012

In addition, numerous bilateral cooperation agreements have been signed between agencies.

ANNEX 2: BACKGROUND: DEVELOPMENT OF THE REPUBLIC OF MOLDOVA

Moldova is located in Eastern Europe, between Ukraine and Romania. The area of this landlocked

country is 33,851 km2 – slightly larger than Belgium. The population is about 3.6 million, of whom a

majority (75%) are ethnic Romanians. Smaller ethnic groups are Russians, Ukrainians, Gagauz and

Roma.

In spite of dynamic economic reforms in recent years, Moldova is still one of the poorest countries in

the European Eastern Partnership region. Moldova’s GDP per capita in 2011 was 3,058 USD (PPP)

according to the UN Human Development Report6, which classifies it as a lower-middle-income

country7. Moldova was ranked 111st in the world in the Human Development Report.

6 http://hdr.undp.org/en/media/HDR_2011_EN_Complete.pdf

7 OECD DAC list of states that receive ODA

http://www.oecd.org/dac/stats/DAC%20List%20used%20for%202012%20and%202013%20flows.pdf

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Moldova’s internal politics in 2009-2012 were complicated and often in a stalemate: three

parliamentary elections and an unsuccessful presidential election fell into this period. In spring 2013, a

government crisis took place, but extraordinary elections were averted; the ruling coalition continued in

power. Its aim is integration with the European Union. The next regularly scheduled parliamentary

elections will take place in Moldova in autumn 2014.

The European Union supports Moldova in the framework of the Eastern Partnership programme,

where Moldova is considered a success story. Integration with the European Union has proceeded at

a good pace. The European Union and Moldova completed negotiations toward an Association

Agreement/Deep and Comprehensive Free Trade Agreement (AA/DCFTA) in June 2013; the

agreement was initialled in Vilnius in late November and the signing of the AA/DCFTA will likely take

place before the November 2014 general elections.

Moldova has made the most progress of the Eastern Partnership countries also in the visa dialogue,

the end goal of which is establishing visa freedom. The second phase (i.e. implementing phase) is in

the evaluation process.

Similarly to many other countries that gained independence in 1991 when the Soviet Union crumbled,

Moldova’s development has been plagued by a number of problems and deficits. An analysis by the

international think tank Freedom House rates Moldova’s development trends in areas pertaining to

democratic governance as follows on a five-point scale:

Problems with corruption should be mentioned separately. According to 2012 data presented by

Transparency International, Moldova was 94th among 176 countries in terms of corruption.

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8 http://www.transparency.org/country#MDA

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Decreasing corruption and making the fight against corruption more effective is one of the biggest

challenges for Moldova. Although legislation on corruption has been adopted, as has a new state anti-

corruption strategy, implementation has tangled.

The other key challenge for Moldova is improving the country’s economic situation. In their reports, the

World Bank and the International Monetary Fund have each cited the need to continue structural

reforms that would pave the way for improving the investment climate, foreign aid and channelling

loans for improving the profitability of investments (foreign aid and loans make up an estimated 1/3 of

GDP) and allow the privatisation processes of bigger state enterprises to be completed and improve

the quality and effectiveness of public services.

Migration is another factor that impacts development. According to 2012 data from the International

Organization for Migration (IOM), 1/4 to 1/3 of the working-age population of Moldova lives abroad.

That is, 100 000 – 300 000 people. The main cause of the migration is economic reasons. Emigration

does not mean just brain drain but it also leads to problems such as human trafficking, family

separations and many other long-term social and economical impacts. Improving the economy is the

firmest way to slow and halt emigration.

Political dialogue on the issue of Transnistria continues in the format of the 5+2 group, consisting of

Moldova, Transnistria, Ukraine, Russia and the OSCE + the EU and the US. Technical dialogues in

the 1+1 format have been launched, as a result of which some progress has been noted in certain

areas. The efforts toward a resolution continue.

ANNEX 3: ESTONIA’S PAST AND PRESENT DEVELOPMENT COOPERATION

ACTIVITIES IN MOLDOVA

Moldova has been a priority partner country for Estonia’s bilateral development cooperation since

2006 under the Strategy for Estonian Development Cooperation and Humanitarian Aid 2006-

2010. In this period, Estonia allocated 1.34 million euros in support for Moldova: 1.22 million euros for

supporting development cooperation activities and 0.12 million euros as humanitarian aid. According

to the Strategy for Estonian Development Cooperation and Humanitarian Aid 2011-2015 Moldova will

remain a priority country for Estonia’s bilateral aid.

The distribution of Estonian development cooperation funding in Moldova, 2007-2012:

Year Total contribution Most important fields supported Contribution by each field

2007 324,509.16 EUR 1. Public sector capacity building 182,142.51 EUR

2. Education 73,192.96 EUR

2008 379,081.04 EUR 1. Public sector capacity building 131,956.28 EUR

2. Education 98,779.06 EUR

3. Humanitarian aid 64,330.59 EUR

2009 146,037.93 EUR 1. Human rights and democracy 91,605.07 EUR

2. Education 40,983.10 EUR

2010 326,095.72 EUR 1. Public sector capacity building 127,735.83 EUR

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2. Human rights and democracy 55,771.31 EUR

3. Humanitarian aid 54,812.90 EUR

4. Supporting enterprise/education 32,803.20 EUR

2011 195,072.14 EUR 1. Health care 73,412.00 EUR

2. Internal and justice issues 46,194.00 EUR

2012 707,154.00 EUR 1. Public sector capacity building 255,944.00 EUR

2. Education 215,329.00 EUR

3. Health care 126,826.00 EUR

ICT has often been a theme that runs throughout the supported projects: e.g. in the case of education,

public sector capacity building, human rights and democracy, health care, internal and justice issues

projects. Longer-term collaboration relations have developed between Estonia and Moldova in the

framework of development cooperation projects in the field of health care and internal security.