U.S. Assistance to Moldova - Fiscal Year 2003

The Moldova assistance program has a strong focus on agricultural post-land privatization activities to help it exploit its natural competitive advantage, an anti-corruption and anti-trafficking in persons component to address key corrosive issues in society, and an array of efforts to support Moldova’s active membership in the regional structures of Southeast Europe, the first step in Moldova’s stated objective of European integration.

The $41.3 million budgeted by all U.S. Government agencies for assistance programs in Moldova in Fiscal Year 2003 is allocated roughly as follows:

Democracy Programs	$ 8.4 million
Economic & Social Reform	$18.9 million
Security & Law Enforcement	$ 5.3 million
Humanitarian Assistance	$ 6.1 million
Cross Sectoral Initiatives	$ 2.6 million

Democracy programs in Moldova focus on supporting local government reform, fostering the development of civil society and political parties, and strengthening the rule of law.U.S. training and technical assistance will continue to promote local government reform in approximately 50 communities, focusing on increasing the autonomy and effectiveness of local government, encouraging fiscal decentralization, improving strategic planning, and fostering greater transparency and citizen participation in decision-making. Two new programs will aim to increase civic action (through small grants to community groups, NGOs, and regional media) and foster grassroots political party development over the next three years. The rule of law program will continue to support training and technical assistance to provide advocacy on behalf of citizen rights and build legal associations.

Small grant-making programs administered by the Eurasia Foundation and U.S. Embassy in Chisinau support the work of indigenous NGOs to foster civil society, private enterprise development, local government accountability, independent media, and other initiatives to promote democracy in Moldova.

Training and exchange programs continue to be an assistance priority, reaching out to the next generation of Moldovan leaders and giving them first-hand experience with the day-to-day functioning of a market-based, democratic system. Since 1993, the U.S. has funded the travel of almost 2,700 Moldovan citizens to the United States on academic and professional exchange programs in fields such as management, social service provision, and NGO development.Increased funding for the Future Leaders Exchange (FLEX) program will bring some 40 students from Moldova to live with U.S. host families and attend U.S. high schools this year. Access to information is promoted through programs like the Internet Access and Training program that supports ten public access facilities in eight cities throughout Moldova.

Market reform programs include accounting, commercial law, customs modernization, fiscal, banking, although the primary focus remains post-privatization agricultural sector development. To help small and medium enterprises (SMEs) in the agricultural sector, the U.S. Government, through the U.S. Agency for International Development (USAID), provides training, assistance, credit, and consulting to promote agribusiness development. The availability of credit in the market place for the private sector is broadened by WNISEF's investment via U.S. assistance funds in Moldova's largest local bank and its sole microfinance institution. U.S. programs also train small and medium-sized business entrepreneurs. The U.S. Government has provided technical assistance to the Ministry of Finance to help it develop a primary and secondary market for its debts.

The U.S. Government is providing $5 million in security assistance to Moldova. One million is dedicated to Export Control and Related Border Security Assistance (EXBS) activities that further assist Moldova in the developing a system to transnational movement of WMDs or conventional threats. In FY03, $1 million in FMF and $900,000 IMET funds will continue to help develop and reform Moldova's armed forces, enhance the capability of its peacekeeping battalion to operate alongside NATO forces with common, interoperable equipment, and promote the integration of Moldova into Euro-Atlantic security structures. In FY 2003, Moldova became eligible to receive Excess Defense Articles (EDA) on a grant basis under Section 516 of the Foreign Assistance Act (FAA). Additionally, Moldova has developed a robust program with its State Partner, the North Carolina National Guard.

Organized crime in the Eurasian region presents a direct and growing threat to Moldovan prospects for economic and political stability, and thus for U.S. national security interests. The U.S. Government provided $700,000 in law enforcement assistance to support cooperative efforts in FY 2003 between U.S. government law enforcement agencies and the Moldovan Government and local government officials to combat organized crime, corruption, narcotics, and trafficking in persons.

At the end of FY 2003, there were approximately 90 Peace Corps Volunteers in Moldova, working with Moldovans on development of small-and-medium sized enterprises, health care and teaching.

Current humanitarian assistance programs in Moldova center around the provision of $5.56 million in food commodities through the United States Department of Agriculture's PL 480 humanitarian assistance program. The Department of State humanitarian transport program funds the shipment of donated materials for distribution to needy individuals, families, and institutions. Donated materials include medicines, pharmaceuticals, medical equipment and supplies, food, clothing, and emergency shelter items. The Department of State's programs are managed and coordinated through grants to Private Volunteer Organizations.