The Institute for Development and Social Initiative “Viitorul” put forward a bill that is designed to fight poverty by supporting the disfavored areas. The bill is to be submitted to the Government and Parliament for consideration, IPN reports.
The bill was drafted in order to define the legal regime of the disfavored areas and to institute the national framework for regulating these areas so that they interact with the regional and national development policies.
“Viitorul” director Igor Munteanu said that owing to a number of factors related to demography, environment, quality of soil and other aspects, some of the communities in Moldova are underdeveloped compared with others and the population there has lower incomes, being consequently much poorer.
Dorin Vaculovschi, professor at the Academy of Economic Studies of Moldova, said the Small Areas Deprivation Index is the instrument used by the Government to asses she poverty level and this is calculated based on 48 indicators. According to this, the poorest localities of the 843 existing in Moldova are situated in the districts of Rezina, Ocnita, Soldanesti, Nisporeni and Telenesti. Another, more modern methodology for assessing poverty and for combating the phenomenon and reducing the witnessed discrepancies should be worked out based on good international practices.
However, even with the available instruments, it was established that the areas where agriculture is mainly developed, the people are poorer, the unemployment rate is high and the permanent migration of the population persists.
For example, in the municipality of Chisinau the population’s incomes during the last few years were of 14,000 lei on average a month, while in villages that are far from Chisinau or in other towns these stood at 1,700-2,000 lei. The GDP per capita during the last three years decreased in almost all the country’s regions, except for Chisinau. The costs per inhabitant in the 50 most prosperous mayor’s offices (of the total of 843) are 16 times higher than in the 50 most poorest mayors offices.
Under the bill, an area will be declared disfavored for three to ten years and the period could be extended. The Government is to identify the fiscal and non-fiscal measures for supporting these areas. First of all, support will be offered to local business entities and persons who want to start a business. There will be created a national fund for the socioeconomic recovery of disfavored rural areas. The private investments will be supported by public investments that will go to renovate or build roads and other infrastructure facilities. The creation of new jobs will be broadly supported by offering grants for businesses developed by young entrepreneurs and for other businesses that will be started in these areas.
Mayor of Rusestii Noi village of Ialoveni district Pavel Codreanu said the bill is welcome.
Other representatives of the local public authorities also endorsed the bill, saying this could eliminate the practice when public funds and grants are provided according to political criteria.
